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tv   Bloomberg Markets European Close  Bloomberg  January 27, 2017 11:00am-12:01pm EST

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i am vonnie quinn here in new york. mark: well, we are going to take you from washington to london, but get a couple of stories out of san francisco, paris, and tokyo. these are the top stories we're following from around the world. in politics, u.k. prime minister theresa may will be the firs foreign meal -- foreign leader to meet with president trump. from the white house to brussels -- we have the global reaction to whether these talks will bear any fruit. but is this meeting at risk of being overshadowed by one that won't be taking place? mexico's leader enrique peña nieto pulls out of talks on his own country's trading terms. president trump tweet mexico has
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taken advantage of the u.s. for long enough. in markets, our investors concerned with geopolitical noise, such as trade wars? we will asked an investor from one of europe's leading investment houses. --k: have a look at what where your pain agrees are trading, just under 30 minutes until the end of the friday session. a mixed performance for european stocks overall. lower declines in greece. i will come to the greek bond market in a second. the sterling down against the dollar. other currencies are gaining. sovereign bond yields are declining in the core europe, rising in the periphery. commodities, a busy day for earnings. company --goods sales earnings beat estimates. signs we are seeing life in the global luxury goods industry. there has been demand for louis
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vuitton fashion. we have had good sounds from burberry, the likes of cardiac -- cartier's owner. the first quarter should be relatively easy. conditions could get difficult as the year progresses to maintain growth momentum across all businesses. this is a 12-month chart. shares just off record highs. mh.te a run for lv big news surrounding the chief executive of a big advertising company -- the successor has been named. he would take er for mr. leavy levy. leavy -- levy will become the chairman of the publicis advisory board.
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they have been colossi of the global ad world. during his tenure, publicis go 8000 to 80,000 -- 80,000 employees. look at the 10-year yield. the fear is greece will not be able to strike a deal with europe with regards to its bailout program. 90 minutes into the trading day in the u.s., let's get over to julie. how is it looking? julie: not much change for the major averages. let's get to what is moving. a lot of earnings news, a lot after the cold yesterday, 20 billion large-cap technology. we are talking about half, microsoft, and intel. two are very much better than the other. microsoft and intel benefiting from cloud demand. intel in particular because of the chips that our data centers,
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which in turn power the clouds. alphabet spending more on trying to invest in its growing cloud business. its core business doing well, but spending depressing earnings to some degree. those shares are lower. we are looking at consumer staple companies being led lower by colgate-palmolive. they say dps growth will be the lowest single-digit -- the company says eps growth will be the low single digit range. they are pulling down rivals. starbucks is under pressure, and that is because it sees an uptick in mobile ordering. why is that a problem -- it is now about 27% of sales. why is that a problem? it is causing traffic jams at the counters -- people coming straight to where you pick up your drink. it is causing throughput problems, as they call it in the coffee business. i am looking at stain source --y'll -- steam store
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same-store sales in the americas. you see a 3% gain, even though it was a game, the smallest we have seen going back to 2000 and. find, ending on a different note -- the u.s. dollar, something else not doing so well. this looks the weekly change in the bloomberg dollar index, going back about a year. it is the 5th street weekly decline we have seen for the u.s. dollar, as it has broken the uptrend it had been on since the u.s. election. now that is no longer happening, as we see these declines, mark. mark: thank you. let's get to the big story in politics -- prime minister theresa may getting ready to meet with donald trump. guy johnson is standing by at the white house where the meeting is expected to take place. scenario forest theresa may and this meeting with president trump? guy: president trump comes out and talks about a deal that could be done with a u.k. on trade.
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that would provide her with leverage when it comes to negotiations with the eu. it would provide credibility for triggering article 50 at the end of march. it shows there is a plan in place, that we actually have a better future, rather than the one described by the remainders of economic catastrophe. that is the upside. arrives shortly at the white house. that is the upset. the question is what is the downside. we'll talk about that in a moment. mark: we will. let's get to brussels. caroling, what are the whispers like? initial reaction here in brussels from the eu coldce ministers was quite with the french finance minister saying theresa may was not in a position to negotiate with donald trump, because as you know, the u.k. is technically
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barred from entering any trade agreements while it is still in the eu. then you had the portuguese and the italian finance ministers saying that a bigger danger was protectionism from the united states. in u.k. chancellor arriving brussels today, actually tried to calm things down. he ended up with a tone that was a bit conciliatory. hammond: it is important -- it is very important that we do not close ourselves into our own economies. that is the main message. >> we have a huge trade in the united states and a strong bilateral relationship already. there are many things we can do to reinforce our trade partnership with the u.s., increase the amount of trade we do with the u.s. while we are still inside the european union, and always complying fully with the rules of the european union, of course. of course we have said any times
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that as long as we are members, it is in our dna. we will comply fully with the rules. vonnie: clearly, if -- carolyn: if teresa may secures and encouragement with donald trump, that will be the discussion. next week, theresa may will be at the eu summit in the morning, but in the afternoon, the 27 will meet without the u.k. to discuss these issues to discuss brexit negotiations. trump, haveonald already put on hold several problems such as dealing the basil banking rules. he said he was waiting for an update from donald trump, and the financial transaction tax it has been put on hold indefinitely. vonnie: a little bit of a frosty meeting there. thank you to caroline. guy johnson, back to you at the
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white house -- you were about to talk about some of the downsides that could be fostered at this meeting -- an extra long meeting. there is a luncheon as well. whati was hinting at caroline was talking about -- how to europeans are going to receive all of this. line,eds to walk a fine theresa may, when it comes to managing that relationship. she still has a relationship with the eu if she takes the relationship she has developed here at the white house to far. it might end up backfiring and making negotiations with the eu that much more difficult. she used to walk a fine line. from the u.k. perspective, there is a positive sign from a security perspective story. the sense seems to be from the briefings that theresa may is here to try and get donald trump to engage in the outside world, to try and form some sort of relationship, and to go with the existing architecture that exist.
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he talks about nato being obsolete. he has talked about some of the existing architecture that is there and has been around for quite some time being important. that is what the brits are here to do as well -- trying maybe to provide leadership to take donald trump along with them and push them in that direction. i think there is a positive and a negative coming through from the european perspective. vonnie: yeah, and i mean how much leverage does theresa may have if donald trump says no dice on nato, the u.n., or any of these other foreign-policy stances? what would theresa may still be looking for in terms of trade? guy: from the trade perspective, she is clearly in a position where the u.k. is is -- is a small economy that is about to exit its trading block, and that puts it firmly on the back foot. in terms of the politics of this week, the issue donald trump has with mexico, and him being perceived as more protectionist then maybe first thought, might
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provide theresa may the opportunity to come to washington and said talk to us, make yourself appear on the international stage as being open and friendly. that is one of the opportunities that exist for theresa may. but be under no doubt that this is going to be an incredibly difficult road if this is the one the u.k. wants to pursue. anything on agriculture, financial services -- all of these issues -- the nhs, how u.s. companies might gain exposure -- all of us and credibly difficult on both sides of the atlantic. to read may trade deal, and creating a trade deal quickly will by no means be easy for theresa may. mark: theresa may is a pastor's daughter. she has been in parliament for 20 years to she is been home secretary for six years she is prime minister. we know donald trump's background. how close to the thatcher-reagan, touchy-feeley relationship today get? may described the
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relationship with opposites attracting -- they be that is not the reagan-thatcher starting point. they were ideologically aligned on so many areas and as a result were an easier fit. i think donald trump would like to see it in that sort of way. he has already talked about it in that sort of a way. there are certain similarities that we will wait and see on that one. what will be important is personal chemistry. give theresa may is going to take anything away, it is going to be establishing personal chemistry with president donald trump. mark: it has been a long day for you. guy johnson, at the white house -- stay tuned. we are not stopping. live coverage of the press conference at 1:00 p.m. new york time, 6:00 p.m. in london. what a day. vonnie: incredible. incredible. and it is friday, too. unreal. coming up, we look at the potential geopolitical risks
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posed by donald trump's trade policies, and what that will mean for investors. this is bloomberg. ♪
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vonnie: live from london and new york, i am vonnie quinn. mark: and i am mark barton. this is the european close on bloomberg markets --just under 15 minutes until the end of the friday session. theresa may looking to strengthen trade ties with the u.s.. president donald trump sparring with mexico at the same time. how will geopolitical events impact the market, and where the opportunities for investing? joining us, rod paris from standard life investments. rod, thanks for joining us today. how are you viewing today's
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meeting between trump and make from an investment standpoin rod: it is an auspicious day and a very important day in the long-term, setting a tone for relationships between the two countries. in terms of the immediate objection -- objective, which is trade, i think it is a lot more complicated. i think you have to remember that while it is critically important to be able to demonstrate that we are able to negotiate different relationships -- different trading relationships with new partners, it is not a substitute for developing the right relationship with europe on an ongoing basis. our supply chain for certain european companies are more intimately linked to europe than they are the u.s. at this point. in time the other thing, -- at this point in time. too, that ourg, comic-con, the interest in the u.s. is what i would describe
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around tariffs. the u.k. is a service-based economy, and what is important there is non-tariff barriers to trade, and that speaks to regulation. the key challenge for the u.k. is the degree to which the u.k. is willing to become a taker of regulation. --re is an irony there yet that in doing that you lose the sovereignty you hope to gain by exiting the eu in the first place. i think there are quite some interesting dynamics to play out as far as the market is concerned. do we member, the u.k. is a service-based economy, and regulations and nontariff barriers will be important in any deal or any arrangement, and i do not know how high that is on president trump's agenda. mark: and given trump's protectionist-leaning stance in the past week, rod, how do we,
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as investors, position ourselves for the possibility of a more insular world? rod: it is clearly a challenging, volatile world. it is volatile, uncertain, complex, and in the u.s. that prevents -- presents challenges for investors. at the moment, i would argue the market is in a sweet spot. the market is choosing to focus on the parts of the agenda that are pro-business -- the tax locations, the infrastructure, and choosing to view the trade rhetoric as relieving more catalyst in nature, talking of trade being quite specific. i think the markets have not priced, heaven really thought through a more fundamental -- haven't really thought through a more fundamental shift in trade relationships. that is still something to come. the markets are in a sweet spot. if you look through the noise of trade, we are enjoying a broad-based resurgence of growth
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if you look around the world. pmi numbers are up. and to numbers are up everywhere. consumers seem to be more confidence, and clearly, the rest of the world has enjoyed devaluation effects against a stronger dollar, and we see that with earnings coming through. you have some 40% of u.s. companies in the s&p already reported, in the earnings showing good woman, after many, many quarters of quite the rape -- good momentum, after many, many quarters of quite the reverse. we are in a sweet spot. it is probably one of the oldest comments in our business -- it is often better to travel than to arrive. the arrival speaks to these geopolitical issues, and how policies -- how politics affect policy, and the market has a -- hasn't priced that in. that is yet to come. vonnie: so, rod, if you are trying to get ahead of where
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those trade relationships are going to end up, as you clearly are, where you go? would you position yourself? rod: i think that is a really good question. certainly, in the u.k., i think there is a challenge -- sort of, in terms of how this is going to evolve. at u.k., if you look through its fundamentals, is probably in danger of having something of a slowdown building up through the course of the year. we had currency effects that have been positive. that is now causing inflation to come through, squeezing real incomes, and that is something that will become an increasing drag on the markets, even before we get this political negotiation, and the whole political process underway. and there are obvious volatility and concerns that will create. one has to look through these fundamentals -- sorry, look andugh to the fundamentals
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innocence put politics to one side and structure portfolios in a way that is still quite robust. there are still things in this volatile, uncertain, challenging, changing, and the u.s. environment that politics ambiguous environment creating, there are still known knowns. we know the tax reforms are very much supply-side driven, and that speaks to genuine winners and losers in every sector, company by company. that raises the process -- prospect for idiosyncratic stock-picking approaches. we are undoubdly in a wor you can have it view based on fundamentals, but with some fat details, both positive as well as negative. i think that urge is clearly to be relatively cautious, although at the moment the markets are traveling on this good news, the
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sweet spot, that i have characterized, and we have yet to arrive. i still think you have to be called innocent of the fact that this is not -- cognizant of the fact that this is not a recovery that really demonstrates the start of a whole new return cycle post qe and everything else. i think the judgment is still out on that. vonnie: enforcement, we have to leave it there, rod. it would be great to chat with you for another hour, but we will have to have you back soon. our thanks to ron paris, chief investment officer at standard life investments. shares of ubs falling after reports kleins pulled out more than $15 billion. what is behind the trend? this is bloomberg. ♪
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mark: live from london, i am mark barton, counting you down to the european close. vonnie: from bloomberg world
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headquarters in new york, i am vonnie quinn. breaking news now --donald trump's press secretary, the white house press secretary sean spicer saying trump will sign a director did -- directed holding the flow of refugees. halting the flow of refugees following the order to stop funding to sanctuary cities. this is another directive, another case where donald trump is at least signaling he is going to keep some of the alice's he made along the campaign trail. it is one of the ones we were anticipating this week. we do not know what it will tell exactly -- and exactly. mark: given the amount of refugees that enter the country in 2015 -- the number slowdown in 2016, which many say could chances of merkel's being elected, but it is one of
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the big issues that face is the electorate as we come to elections in germany, france, and the netherlands as well -- maybe italy, too. look at where european equities are trading as we head to this friday close to stocks are lower. it has been a week -- close. stocks are lower. the ftse has benefited by a week pound. let's look at the currency board. we will talk currencies with our fx and rates man richard jones in just a second. let's finish with the bond market -- a divergence. core yields rising. referee yields gaining. this is the close. this is bloomberg. ♪ with the xfinity tv app,
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only xfinity gives you more to stream to any screen. download the xfinity tv app today. mark: live from london and new york, this is the european close. i am mark barton with vonnie quinn.
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retail is up today. i will come to retail in just a second. it was a gain over the week -- fourth weekend five, close to december, 2015 highs. a busy day for banks. big news. shares at ubs fell 3.8%, the biggest since august last year. clients pulling out $15 billion in the final three months of last year. margins at the wealth management business declined for a third straight quarter. sergio ermotti, the she visited, says the closing reflects clients repatriating before the government starts sharing data with pretax abroad. the securities unit -- the companies putting less money aside for litigation. there is a litigation overhang. barclays, in the, up by 29%. ubs come up by 18. ubs, -- credit suisse down.
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look at the switch from last year. these banks were down 30% to 50% over that period. at the rising rate environment is boosting all shifts. tesco-booker -- a deal that but -- caught many by surprise. and analysts said it is a game-changing deal. it came completely from left field. andrea will tell us more. love this chart -- love divergence. equity volatility is low. investors are preparing for more turmoil ahead as european elections come to the four. the white line, three months. blue line, looks at euro volatility. futures betting on swings in the euro stocks. trade at a record high relative
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-month contract. equities are carrying the highest risk premium across asset classes. v i brought that up today in otc, i know i would win, but me and you are judging. vonnie: it is friday. we get to judge together. teamwork. i am looking for a dollar index, which you would not know but is headed for its weekly decline. you can see the 10-year yield is the to 2.50%, back below 2.52 cents mark. the russian ruble -- 5.2% mark. the russian ruble is lower. not know what the russian bank will think about that. the mexican peso above 21.
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more weakness for the peso. country market movers and look at the united states more broadly. you can see many of the indices are actually lower, but it is a mixed picture. if you look at the s&p 500, retailers are down, for example, but casino stocks are leading the way higher. the -- betterby stocks in macau. the yen is one of the currencies weakening. obviously, the british pound, as we were talking about. some of the commodity currencies are doing a little bit better today. you can see do bti is at 53 .09, down 1.125%. -- down 1.25%. let's check in on the first word news. courtney donohoe has more.
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courtney: president trump is scheduled to make his first visit to the pentagon as commander-in-chief. "the new york times" says trump will ask for a plan in a month to aggressively strike islamic state. christine lagarde says president trump's plans to overhaul the texas demand increase infrastructure spending should accelerate growth in the u.s. economy over the last two years. she says it is too early to predict how trump's other policies might impact the economy. white house press secretary sean spicer says an investigation into what president trump says was widespread voter fraud will be focused on understanding "where the problem exists, and how deep it goes." he singled out california and new york, two democratic strongholds. there is going to be tighter security on some european trains. belgium has sealed an agreement with france and the netherlands to draw passenger lists and introduce passport checks on the
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euro star rail services. it will tighten security on high-speed trains and help ack termins who might be using them. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. theresa mayminister due to meet with president trump at the white house. a news conference coming in about 19 minutes time. the sterling declining against the dollar, rising for the week. the best run since december number two. richard jones is here, fx and rate strategist with bloomberg markets live on the terminal. could may and trump move the currency in 90 or so minutes? richard: i think there is a potential the sterling could
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consolidate some of the gains it has made over the past couple of weeks. as you said, it has risen the past two weeks. i think if you look at the rhetoric that has been coming out of both sides, it strikes me that the special relationship is something that will be played out. that is probably not going to have a negative effect on the pound. i am not sure it will send it racing to the sky. the gains we have seen could consolidate, and the type of rhetoric we would hear will probably be at the margin, counsel. mark: given the sterling is moving on whether people believe it will be a soft or hard brexit any changes depending on the news flow, if a rhetoric toward a trade deal is possible, you have to wonder how that will affect the negotiating position between the u.k. and the eu. some say it will be a positive situation. some say it will be negative -- that you could look at it and
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say we're going to be even harder on you. how do we view it? richard: the uncertainty has not decreased given the dynamics you just described, and that is the thing that will continue to possibly weigh on sterling in the longer term, but it is going to be choppy, mark. as the news flow evolves, as we get day to day bits of news from either side in these negotiations -- and article 50 has not been triggered yet. once that starts -- mark: this chart shows it well -- it goes back to brexit, but shows the percentage move. january alone, we had the brexit speech, last week, the supreme -- every daypaper you have a reason to ensure sterling is all over the place. the thing that stands out is the long line on the upside in january, the first time prime minister may spoke and the pound appreciated. as you say, in 90 minutes, let's see what the pound is when she
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speaks this time. vonnie: and of course, next week -- mark was saying how busy it was this week, but we have central-bank action next week. is that likely to move the pound, or have traders moved away from central banks having an impact, including today's japan central bank? richard: you ignore the central banks at your peril, but certainly, some of the news flow coming out of the white house over the past week has, if you will pardon me using the term, has trumped what central banks are doing. notwithstanding the impact politics is having, central banks do matter. we need to pay attention to that next week. vonnie: what are the favorite currency pairings? what are traitors using to get through this volatile period? there are a lot
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of different moving parts right now. the scandals. norway is a big mover because of the oil story. dollar-mexico -- since the election, has been a big focus. it is interesting to see the peso has risen this week. if you look at the longer-term chart, since the election, it has barely made a dent on the decline that we have seen. i think sterling is always going to be something that is a big point of focus for traders because obviously we have the brexit risk. we have article 50 becoming more eminent. of course, the euro is always going to be a big focus as well because we have a lot of political risk in europe in the pipeline. mark: six weeks of gains. i was looking at my wonderful function -- i hate it when winning runs a lot. it ruins my narrative. we still might do it -- it is
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the best run in many a year. the talk out of europe is inflation, germany, a couple of ecb members talking about the need to maybe begin this discussion of stopping this expansion of the ecb's balance sheet. is this now the big thing going forward? richard: i think it is certainly up there, and that shift in narrative from very accommodative monetary policy to tighter monetary policy, that transition will be interstate. politics is important in europe. we have elections in the netherlands, france, germany -- possibly italy. we have brexit negotiations still to unfold. as important as monetary policy is, i think politics will be -- out of the three biggies next week, in importance to regards to surprises -- potential surprises, market-moving central-bank meetings, put them in order?
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who is one when it comes to moving the markets, two and three? richard: sitting in london, i go with the bank of england is number 1 -- but i would say the federal be number one. bank of england number two. i think the bank of japan this time around is number three on the list. vonnie: can i jump in and say turkey has been affirmed by s&p. s&p affirms the rating, but has revised the outlook two negative. that is a currency we have seen a lot of movement in. 3.90.ped we know we have a lot of central-bank action eventually, raising rates, for example, was one of the actions. richard: i think turkey has been very volatile. you want to talk about political volatility -- you had a lot of it in 2016 in turkey, which, of course, has driven that. i think there is a little bit of
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political pressure, or political dialogue between the government and the central bank in turkey. that has been a big mover, and it will continue to be a big mover. it is interesting news on the ratings agency. vonnie: s&p saying monetary policy and its response may prove insufficient and a revised to 2.4% from around 3.2%, so the outlook is a little grimmer there. think there are challenges there, and that is for sure. as interesting as 2016 what's in turkey, 2017 looks like it will be interesting as well. mark: richard jones, great to see you. 4:42 p.m. in london. 11:42 a.m. in new york. this is bloomberg. ♪
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mark: live from london in new york, i am mark barton with vonnie quinn. this is the european close on bloomberg markets. time for the bloomberg business -- business flash. than $15ost more billion, and profitability declined for the third straight quarter, but chief executive sergio ermotti was optimistic. sergio: the most important thing for me is to how clients are optimists, and the reason there will be optimism with u.s. investors and clients. i think this will be a turning point, but it is important to see the new administration also puts in action their plans, and gives investors even more confidence. prophet did more than triple in the fourth quarter. starbucks mobile ordering system has brought a painful side
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effect for the coffee giant --traffic jams inside the store. customers are now able to order coffee from their phones, leading many to head to the pickup counter, frustrating patrons to the point they cancel their orders. they are continuing to disappoint. . change of the top of publicis morris levy stepping down. he will be succeeded by arthur -- on june the first. bloomberg about where he sees the company going forward. we will: in five years probably be the only communication group helping the client to transform themselves, and we will be a combination of technology, digital strategy, creative, and media. mark: that is the latest
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bloomberg business flash. a huge merger in the u.k. -- tesco, the latest -- the largest supermarket chain buying book or group. shares of both companies surging. let's turn to andrea, bloomberg gadfly columnist. has ae thinking tesco cunning plan, and it is a cunning succession plan? is that what this is all about? andrea: it is more like charles wilson's plan, the chief executive. he is widely admired, and the plan is for them to take over, running tesco. mark: give our vis whdo not know too much about booker --teco is the supermarket giant -- give viewers an idea of the job wilson has done and why he has gained notoriety.
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andrea: it was a small wholesaler. it is now much bigger. it was also heavily indebted. it will have 150 alien in net cash on the balance sheet. lots of great opportunities here. just at is not convenience store chain -- it is the other fast-growing part of the business we are focusing on. right, focused on building the out of home heating market, and that is a big deal -- eating market, and that is the big deal. mark: that is the bingo -- spending on experiences and eating out. --rea: he is in and the position to take it vantage of that. mark: should someone else have bought booker? andrea: amazon should have bought it because it has a great food distribution system. chilledistribute fresh,
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food all over the country and that is difficult to do. mark: you think as much as you have some mr. wilson's praises, maybe he did not get enough of a premium? andrea: exactly. this is a much better deal for tesc shareholders than it is for booker shareholders. not much of a premium for giving up those products and getting exposure to problems they did not have. mark: is it going to get away from regulators? andrea: we do not know that yet. the company is confident it is going to take a long time. that gives a lot of opportunity if somebody does want to come in and buy it. mark: mr. lewis, the ceo of ago, an year or two accounting scandal, it was looking gloomy. he has turned things around. andrea: he has turned things around, but the recovery was wobbling a little bit. if it was such a great recovery, why has he had to buy booker? mark: good point.
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is this a cunning succession plan? wonderful get five -- gadfly piece. next, the battle of the charts -- wall street may be soaring. main street, less so. what will give? this is bloomberg. ♪
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over newooking out york city there, it is time for our global battle of the charts. we look at some of the most telling charts for investors. you can access them on the bloomberg with the function featured on the bottom of your screen. we have two guests, as we can you do on a friday. we kick things off in new york with dani berger. dani i'm looking at the result of investors to not give in to what the s&p is doing with the dow 20 k.
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i'm looking at the survey of individual investors, specifically the bulls. that is what i have on the white line. the higher, the more bullish sentiment there is. let's look at what has happened recently. look at the drop off. it turned from 37% feeling bullish, to 31%. that is the third consecutive week the bullish sentiment has dropped off by 5%, even as the s&p and the dow stretch to new highs. individual investors are not feeling it. what is really important, i want to point out on this bottom -- double to bear -- the bull to their ratio. this has fallen to the lowest level since the election. some people really not feeling as great even though the dow -- and this could be a contrarian indicator. vonnie: feeding to my emotions, i have to say. mark: you have to appeal to both of us.
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abigail, what do you have? abigail: a great chart, and my hel -- my c might help explain why sentiment is dropping, the diversion between wall street and main street. in blue, the dow, climbing to the dow 20,000 people wall street is flourishing. in white, the velocity of money -- how quickly money changes ands on main street -- hands-on wings -- main street. closely overracked the last few decades, and around the end of the last decade, during the great recession, a crisscross, and the dow shot to those record highs. the middle meeting ground appears to be the fed with record stimulus. plosser liquidity went into the financial markets -- lots of liquidity went into the financial markets. it will be extended to see how this resolves if the economy can pick up with organic growth to
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help the velocity of money climb back up. 5u can see my chart at g #btv 617. mark: it is so hard, by the thinnest whisker in the world, i am going to say abigail. i have you know, i think to agree with you, mark, even though many economists say the velocity of money is not what it used to be in terms of an indicator. it was, at one time, the only indicator you would look at to see what the fed is going to do, but now with the difficulties in the markets, structural changes in liquidity and so forth, it might not be as much of an indicator. dani, i have to say you are a close runner-up because the data is extraordinarily interesting, particularly after the dow hit 20,000. we have a winner. mark: brilliant. well done. two fantastic shots. let's check out what is happening at the white house -- charts.
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this out what is happening at the white house. the president. to resell a-- theresaarriving a. there will be a press conference later. this is hugely significant for the president and the prime minister. theresa may is aiming to get a trade deal. signthey cannot negotiate, on a dotted line, but she would love to have some sort of structure for a deal on trade, of course, between the two countries, as we approach the beginnings of the brexit process. stay tuned to bloomberg, live coverage of president trump, prime minister theresa may -- that news conference a little later. this is bloomberg. ♪
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vonnie: it is new in new york, 5:00 in london, 1:00 in hong kong. i'm vonnie quinn. david: i am david gura. welcome to "bloomberg markets."
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we begin with breaking news. the prime minister of the united kingdom theresa may arriving for a meeting with donald trump at the white house. she was at arlington national cemetery earlier in the day. the leaders will hold a joint news conference at 1:00 eaern time, 6:00 london time. or the latest details, let's go to the white house where kevin cirilli and guy johnson are standing by. in the studio is michael mckee. say, the first question will probably be about mexico. the prime minister wanted it to be about them, but this news

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