tv Bloomberg Markets Americas Bloomberg May 12, 2017 10:00am-11:01am EDT
♪ vonnie: a lot to cover this hour from markets to a trade deal between the u.s. and china and stay tuned for interview with chicago fed president, charles evans. let's go to julie hyman with breaking economic news. julie: the latest is the university of michigan sentiment reading. it is the mayor preliminary number coming in 97.7. a little bit of an uptick here in sentiment numbers. we have seen relatively strong sentiment consistently here. it looks at this number is actually a four-month high. shows that americans remain relatively optimistic about their incomes here. it does not look like it's going to help stocks at the moment. typically this consumer number does not push stocks around.
earlier today we had a retail sales number coming in slightly below estimates with a headline data of 0.4% versus the 0.6% estimated. we are bond yields down putting , which isn financials one of the things weighing on the s&p 500. continued news on the micro level on retail that is disappointing to say the least. jcpenney and nordstrom both out with numbers and continuing with the trend that we heard from the likes of macy's and kohl's and dillards yesterday with same-store sales declining. jcpenney has sales down three and a half percent. nordstrom seeing a decline in the full price and website sales with 2.3%. nordstrom rack is down 0.9%, although analysts pointing out that nordstrom missed estimates by a smaller margin than competitors. not helping the stocks that today. i want to bring back something yesterday which is the comparable chart in terms of
stocks of the changing face of retail. the one line doing well in the past five years is amazon and really outperforming the rest. you have the apparel manufacturers and white and department stores and blue and specialty retail and yellow. breakoutthe story, the that happened with amazon versus the others mid 2015. a quick check on the u.s. dollar as well. bond yields are down in the u.s. and the dollar also really took a hit after that retail sales number came out earlier this morning at 8:30 a.m. with that missing estimates, that is when the dollar turned lower. mark: up by 0.8% and it matters because we need to finish .04% higher or more today to finish up for the week, which would mean we are up for the third week, which would mean it's the best run's january. -- since january. it is better to travel that
arrive in the wake of the french election results. the gains that we saw another stock markets took place between the first round in the second round. internet,united shares up by 13% today. the biggest rise since 2003. it agreed to take control of wireless operations to better compete with the likes of deutsche telekom. 20%ill boost its stake from , representing a 3% increase sch's last drilli close. they are combining operations that together have 12 million customer contracts. it creates the number for wireless operator in germany. plenty toto vivendi, take over the french advertising company. 3.9 billion euros is the price.
9.25 euros per share. it is orchestrated by the billionaire, who controls both businesses. the combination will unite vivendi's media empire with havas' marketing/ . let's get to luxury. ridgemont today, shares down by 6%, the most june 24. full-year earnings beat estimates amid stronger demand in china. this is what matters. sales growth decelerating the 4% in the fourth quarter. that is excluding currency shifts from 5% in the previous quarter. citigroup says that is why the shares are lower today. down by 5.6%. vonnie: thank you for that. let's get to our first guest now.
we have data that may complicate the fed's view of earlier economic data. retail sales may be coming in lower-than-expected and we also have cpi and the year-over-year figure that did not meet expectations at 1.9% for that. let's bring in martin hegarty. atis a portfolio manager lack rock. when you see inflation just barely crawling up to zero or 2% mark, how do you manage a portfolio in that environment? martin: thank you for having me. one needs to look at the trajectory of inflation over the course of a few prints rather than focusing on one. if you toss your mind back to the print released on good friday where markets were closed globally, it was an incredibly soft print. we had a lot of weakness driven by some extremely one off volatile components within the sector.
some of those components delivered further downside today. with that, i'm referring specifically to telecommunications services, which over the last couple of months have taken down core cpi by almost a full 2%. vonnie: exactly. what do you do in your portfolio if we are not seeing any inflation? the fed might even be complacent because everyone is saying we are going to get wage growth and inflation. how do you prepare for that? look at inflation from a top-down and bottom-up perspective. when we look at the top down dynamics, what the fed is focusing on is -- you said it. the unemployment rate is 4.4%. we see the wage growth permeate through a whole host of industries and as showing through the data although slowly. when you think of the wage setting process, this is a truly unique recovery where we had the unemployment rate come down a couple hundred basis points while headline inflation has
declined rather meetin meaningfully. headline inflation came down while the unemployment rate went down. what i think is going to transpire for the rest of 2017 is headline inflation. to couple months ago at roughly 2.8%. back relative to the last couple of years, it's at a much higher range. with the unemployment rate coming down and spare capacity being eroded, we will continue to see wages moving upwards into the end of the year. i think it bodes well for the core inflation picture as a whole. our expectations are for the 2.2% to to be around 2.3%. we think that carries on into 2018 where we see core at 2.3% to 2.4%. mark: we had many people call for a beginning of increase and
the mix elevation of wages over the years. why is now any different? the bank of england was in focus yesterday. it's set in two different years that wages would start picking up. a former policymaker left it out of town. wise now the time when wages, not just in the u.s., might pick up elsewhere? martin: we can look at it in a few different ways. what we tend to find is that ratehe unemployment everys full employment, percentage change in the unemployment gap has a nonlinear impact on wage inflation. we had pent-up wage deflation where wages could of gone down more meaningfully, yet given the policy response from the fed, we had a very slow period a very miller bunds -- moribund wage growth.
that has continued to come down. expectations for nehru are 5.25%.e from with the unemployment rate now at 4.4%, we are where the rubber meets the road. we are pushing through that downside pound of nehru. i think that nonlinear relationship i alluded to earlier is now front of us. mark: if we are at the point where the rubber hits the road, does that make the case for u.s. inflation linked bonds over there european peers more obvious? martin: that's a hard question to answer because you have to look at what is priced into each market before making that decision. front endparts of the of the u.s. inflation curve that we still think are not necessarily cheap because of what is happened recently in the energy prices. the opec decision in a couple of weeks will have a determinate in that outcome.
i think there are parts of the european inflation curve that are relatively cheap you you loo. you look at the two to five year sector in europe and that's cheap relative to a core run rate of inflation that is in the vicinity of 1-1.1 and probably moving higher for the rest of the year. european inflation markets offer some value. vonnie: where does that live both in europe and u.s.? martin: duration wise is a hard question. a look at real yields is an estimate of valuations. five-year real yields are in the vicinity of play five basis point -- 85 basis points. i would be far more comfortable buying u.s. real yields out right 25 to 30 basis points from here. when i compare that to the feds reaction function, i look at what is priced into the front
end of the u.s. rate curve, where we are pricing and hikes.ly 2.75 quarter that is against the unemployment backdrop we talked about and a core inflation trajectory that we think is moving towards 2.25%. i think there is still ample scope for the markets a price and a greater pace of tightening despite today's cpi. vonnie: what plan is there? martin: first and foremost, i think the fed. i do think that the fed are probably a little dismayed at that using a financial conditions -- at that using we have seen of financial conditions. vonnie: we have to leave it there. martin hegarty at black rock. a conversation with charles evans of the chicago fed. he joins us live from the aci
world congress. that is at 10:30 a.m. do your and your time. here is emma chandra. the trump administration is starting the fight to end the volcker rule. steve mnuchin has ordered five agencies to review the restriction that bars banks from betting on markets with their own capital. critics say the volcker rule has made banks to conservative and has dried up liquidity in certain markets. president trump is firing back at the fbi director he dismissed. the president tweeted that james comey better hope that there are no tapes of their conversations. according to "the new york times," , he declined to pledge loyalty to president trump in january. he says he asked for come is loyalty more than once and comey replied he would only give the president his honesty. saudi arabia is preparing to cement ties with president trump by making unprecedented
investments in the u.s.. the fund will invest as much as $40 billion in u.s. infrastructure. that may happen next week to coincide with president trump's visit to saudi arabia. labor party leader jeremy corbyn accuses prime minister theresa may of pandering to president trump. may was the first world leader to visit the president after his inauguration. he says today that pandering to an erratic administration will not deliver stability. the british general election is june 8. global news story for hours a day powered by more than twice hundred journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. mark: what a difference a week makes. oil set for its first weekly game. this is bloomberg. ♪
mark: live from london, i mark barton. vonnie: from new york, i vonnie quinn. this is "bloomberg markets." mark: oil heading for its first weekly advance in a month. u.s. crude inventories continue to shrink. there's consensus to extend supply cuts. joining us now is scott bauer. thanks for joining us. a week ago, we hit an intraday low of $43 in change. is it more likely we will head for that level or up toward $50? scott: i definitely see $45 before we see $50 again here. like you said, there's all this talk than a couple of weeks at the opec meeting that they are going to extend the cut. we have seen the story before. we have seen it play out before.
it's a most like the little boy that cried wolf. until they actually do that, my guess is that the pressure is still to the downside here. even if they extend these cuts, we are seeing the u.s. actually produce more oil than we ever have. their up over 400,000 barrels a day now on an increase. saudi arabia actually increased their production. hold the opec decision kind of with a grain of salt here. mark: surprise us, scott. is deepening the cuts something which they couldn't announced -- could not only announced that actually implement? scott: i'm not sure what they are going to implement, but if they extend the cuts year, we all know that the middle east andtries of saudi arabia others are getting nervous. the $50 a barrel number is the
key number here. they know that they need to increase production. they need to increase their production here. i just don't see anything happening here. even if they say they are going to extend the cuts, let's say all the way into the end of the year, i just can't see some upward it is in this marketplace. $45 is that magic number. it's where i got in last week and it's where i would get in again here. mark: a quick chat about the vix gaugendex, the volatility down to levels we are not seen since the early 1990's. there was interesting call buying yesterday for june. scott: there was and it's really flabbergasting where the vix is. yesterday we saw a lot of upside call buying in the vix june contrast around the $19 and $20 straight.
-- strike. people buying those strikes are looking for something to happen the marketplace. you wake up in the morning and see another trump tweet and it's almost like sitting in a public speaking class and waiting for a two-week to come out. coming out much risk quite frankly from our white house of what might happen or what trump might tweet that at any moment here, we could see a market or are market have a little bit of a selloff and vix spike up. there is way too much geopolitical risk here for vix to be trading where it is. someone obviously agrees with that with that massive call buying we saw yesterday. mark: great to see you. have a good weekend. he was with today's features and focus. vonnie: time now for the bloomberg business flash, a look at some of the biggest business stories in the news right now. an increase in u.s. retail sales suggest a slowdown in march.
sales rose 4/10 of 1% in april after a 1/10 of a percent gain the month before. electronics and appliance stores posted short results. internete also up with retailers, restaurants, and building material stores. department stores have been struggling and jcpenney is not immune to the slump. shores -- stores saw slump worse than expected. it puts jcpenney in the same but with macy's, kohl's, and nordstrom. that is your latest bloomberg business flash. mark: still ahead, wall street's marijuana etf inhaling big gains when it first debuted, but we are seeing a different story now. etf friday is next, too. this is bloomberg. ♪
time now for etf friday. here is julie hyman. julie: it's the much anticipated marijuana etf and it has been out for months now. joining me from our washington dc bureau to discuss his eric balchunas -- is air ball tunis. eric balchunas. -- it seems like everywhere you go that people are asking about this. how has it been doing in the first month. ? eric: this came out after the index came out on a 200% run. not a great start, but it's not the end of the world. what is fascinating about this is that they are issued by horizons. this etf took an $80 million
despite falling and it's from an independent issuer and it's down. it's kind of a minor miracle and it really shows that this product tapped into a pent-up demand for people who want to invest in it. the reason they want to invest in it is because the market, there's a lot of areas in the world that looks a little pricey. here you have an industry that's growing. there's a lot of opportunity. it's a rare opportunity in this area. however, it's pretty volatile. we looking at five times the volatility of s&p, but half the volatility of one individual pot stock. the good news is that the assets are sticky and there's a lot of retail investors. a lot of the trades were small. looks like they were sticky assets, but the performance is struggling since it came out. julie: there are not that many opportunities to invest in this industry. this etf is registered in canada if i'm not mistaken although you can buy it from the u.s.. what about in the u.s. in terms of marijuana etfs?
eric: there's a pot race etf underway. the first one that was filed in february is the emerging agarose -sphere etf. a ticker called to ke. issuers were little more emboldened to get riskier with the name. was nott came out, it trying to pretend it was a pot etf. this one comes out and it says we can get through with the name marijuana in the name. --o it's going to be mac to actively managed, which you can argue is the way to play this industry. as the stocks get bigger, you can invest more in them. you have to have bigger liquid companies like scott's miracle grow to give it liquidity. if active, it will be able to
adjust faster as the smaller stocks have bigger and become more of a pure play. julie: these folks have filed, but they're not trading as of yet. how do we find out when they will be? eric: it could be and the day. -- any day. it will just come as a surprise. julie: thanks eric balchunas for talking about marijuana etf's. vonnie: still had, chicago fed president charles evans joins us live on the central bank balance sheet exit strategy and the rate path. this is bloomberg. ♪
where one hour away from the end of the friday session. today we are unchanged, over the week, unchanged. heading for a third week, he will be by the smallest margins. that would be the best run since january the 13th. the ftse up by 131% in germany and france today -- one third of 1% in germany and france today. economic growth out of germany accelerating to the strongest pace in a year. mild weather boosting construction, exports benefiting from that. we will see how euro is faring today. dublin,ing to get to we're joined by the chicago fed president charles evans. >> mark, thank you. we have the president of the chicago fed, mr. charles evans. cast, welcome to
bloomberg and welcome to dublin. the weather hasn't january favors. since you have been speaking this afternoon, with got another 1.9%, the breakevens are quiteing to dip aggressively. is this the goodbye to inflation? where that too harsh? mr. evans: i haven't had a chance to look at the most recent inflation data. last month, both inflation indicators step down unexpectedly. look throughg to that until i get a better reading as to whether or not it's altered its trajectory, or if it's just applause -- a pause. i will say i have been a bit cautious, nervous about inflation. i think it is extremely important that the fed be able
to get our inflation data up to the inflation objective 2% and we have to be on a decided to percent most of the time. we need to get it up. >> the conversation you had downstairs was very relaxed, you said i don't know if we will spend as much time above target as we did below target, but when i look at what the market is expecting, there's a broad difference between what the fed expects and what the market expects. the last time bloomberg caught up with you, you were at two rate hikes for 2017. do you still stand by that? mr. evans: my outlook hasn't changed that much. except for the first quarter data was weaker than i would've hoped for certainly. we are looking for the second quarter to make up for that, so it averages back closer to my 2.25% rate increase. i mindful of the fact that we started off thinking that growth
would be stronger and by the time we finished, it was lower. but we've had strong employment growth for quite some time, this ought to support getting inflation up to the 2% objective. i do think we need to get it to 2%. >> you were very clear about that, that is our mandate along with full employment. data,ook at the wages this comes back to the cpi data, a little bit of a question mark, ddy the path to the land of higher rates for the fed? mr. evans: right. normally you would sort of hope that wages with the growing in get 3%to 4% range, you or 4%, i'm not sure which one dominates. depending on the measure, they say it's difficult to find
workers with the appropriate skills. you would think that that would lead to skills being hit up even more than that. hopeful that it's going to move up, and i think that resource slack has been eroded quite a lot, we are probably at 4.4 percent, arguably, we are at full employment. >> we don't have enough time to get into the nuances of what full employment is, what one year this -- one thing that a natural rate of unemployment fit for purpose, and is that have applications for the fed? mr. evans: the median fed 4.75% is there full employment. i'm on the lower end of that, my staff has looked at demographics and possibly 4.5% could be full employment.
that is a concern inflation pressures are nonlinear as you go below the natural rate of unemployment. maybe we will all of a sudden this pick up a little bit more as we keep moving down. i don't know. i would say that getting more people into the workforce employed, with time on the job of building skills ultimately has a longer-term productive fact. been people out of work for quite some time and they would benefit from this. it supports stronger growth in the future. we have to be mindful of undershooting too much can come with additional cost. >> that could cause some concern. governor kuroda over the bank of japan talked about escape velocity. when i look at the data points that we discussed so far, give me your phraseology for u.s. recovery so far.
there's a flashing light over the backward looking gdp in first quarter. his escape velocity on the table? back tos: if you go 2011, 2012, 2013, i kept saying we need to achieve escape velocity and get growth up. but in limit, we were 8%, and now we are down at 4%. we blew through escape velocity and we had a steady lower than what we would've hoped for growth. , as it of worked out turns out, it took longer and would've been better if we got there sooner, but monetary policy can only do so much. we would've benefited from additional other policies to help stimulate that. here is where we are. i think we are very close to full employment is not at full employment. so escape velocity beyond this is very difficult to achieve. k, overuarter was wea the second half, i think we will
see the 2.25% growth dynamics emerge. >> let's see what comes from the fiscal side from congress. mr. evans: there is that. it's difficult to have a strong assumption about fiscal policy. it could be extremely strong if tax cuts -- as the trump administration has proposed. or if it is something that is more muted and takes longer to implement. there's a lot of uncertainty and it's difficult to put that into any forecast. >> the entire market is waiting to hear from you on this. recovery, you.s. think they are bigger domestic risks than global risks? if i say fiscal risk versus global risk, how you look at the risk? u.s. economy has sound fundamentals, it's difficult to come up with any downside risk. if anything, this will policy would be upside risk in terms of growth pushing unemployment even further down.
can overdo the benefits. i think the global environment is much more sound now, actually. i've been nervous about that, but i just can't discount the reports anymore from business contacts that say that europe is doing better, it's better across the board and growing from a low level. there's quite a ways to run beyond that, but things are going better and i think china can sure things up as well. things up as well. one word is pervasive, gradual. we are talking about balance sheet reduction. i look at that, it's the three words that strike fear into every bond traders view, which is balance sheet reduction. you are not in charge of the bonds that you have on your balance sheet right now. in terms of when they mature, there's a whole hodgepodge. what do we need to hear from the fed in terms of $450 billion rolling off next year, you need to begin to tell us -- we need
to have a steady momentum program, month by month. do think that's what we need to hear from the federal reserve when a discussion comes about? mr. evans: the fed needs to its regulated -- needs to articulate our strategy beyond its reading our injectors. we have been increasing the short-term interest rates and now with increased confidence, i would say that we can confidently point to an upward sloping futures fund rate path. you did mention the markets have a slightly lower path, but i think our path is more likely to be the one that we actually follow. that to accurately capture the stance of monetary policy, you have to take the stance of the balance sheet. we dictated that once the fund rate increases are well underway at our full-term, and we will begin to read normalize. -- re-normalize.
most participants expect to begin this adjustment to the balance sheet and we are having discussions about what the right size and pace of reductions, how it will be conveyed. i know that i am mindful that we don't want to disrupt market functioning, but we want to be careful and confident that we are going to display a downward sloping path. it might take 3, 4, 5 years to get to the point where we begin growing the size more in line with the economy growing. once we get it confidently moving down, it can receive into the background and any adjustments in monetary policy can be taken with regard to alterations in the funds rate path. this -- acussion is wonderful piece written that there are bad times just around the corner. if we look at the reality of economics, there is always ups and downs, it is cyclical. there will be another rough-and-tumble time in the american economy. is it that you still want to
piecee is a solid arsenal , or you think the market is too demanding of qe to be a fixed facet of the arsenal of the fed? mr. evans: we need to be mindful of the fact that we've adopted a 2% inflation objective, the world seems to be one where religious rates are much more likely to settle in at about 1%, you put those two things together and you've got the eventual funds rate neutrality at 3%. at 3%, there's not a lot of scope to cut interest rates when you find yourself needing to provide more accommodation, we were hit with shocks. on average, we have cutting the funds rate bell by 500 basis points or more in order to make adjustments over a long period of time. to haveuch more likely the zero lower mounted we were hit by shocks -- how should we prepare for that? we need to make sure we can get the funds rate to its neutral level in accordance with the
fundamentals of the economy, when the economy is ready for it , we're at the neutral level. then we can have some scope to cut, but it's also the case that if we hit the zero amounts and other parties are not willing or able to provide the accommodation, we would need to use other tools, and qe is another tool that we have used with some effectiveness in order to improve borrowing conditions for businesses and households of the long end. i would expect if we hit the zero lower mounted we need to do more, we will in fact turn to those tools. >> a wonderful time in , and we welcome you on bloomberg again. mr. evans: thank you. mist never fails to be y, but in the background, there is a stunning venue. mark: great job. it might be misty, but there was clarity in an interview.
seen before. >> u.s. president donald trump's victory is part of a new wave of populism sweeping for democracies of the world. what differentiates populists from mainstream politicians is the claim that they alone represent the will of the people as a whole. it allows them to dismiss any opposition as an attack of the popular will. -- an attack on popular will. modern populists take this approach as they tapped into the backlash against immigration and a global economy that many voters feel has left them behind. populism does not lean left or right, or even center. from the late radical socialist hugo chavez to the far right-wing nationalist marine le pen, the uniting factor is how they conduct politics. according to one author, there are three core requirements for politicians to be considered populist. one, they make an appeal to the people, chanting their cause -- championing their cause against
the elite. >> she will keep the rig the system in place. i alone can fix it. crises orts use manufacture them to justify the call to war. and inflammatory language is used. >> he makes the streets unsafe. >> here's the argument. it has populists -- because populists make big promises to change society, they bump up against the limits of what government can do. the temptation becomes to declare these checks and balances as -- direction fore a
democracies that seem to have lost the represent of power and they have lost their representative power. the draw of populism is not going away anytime soon. >> anything is possible if enough decent people are prepared to stand up against the establishment. thank you. you can read more about populism in one of the quick takes on the bloomberg. mark: still ahead, president trump taking his fight with the fbi to a new level. more developments still emerging on the dismissal of former director james comey. this is bloomberg. ♪
u.s. national gas exporters. commerce secretary wilbur ross said it's part of a broader effort to begin reshaping the trade relationship between the two countries. the overnight announcement seems to build repeat some commitments that china has already made. itomberg's enda curran find -- filed this report. a: it's an example of how relationships between the countries improve. trump promised to label them as a currency manipulator. today we have an agreement allowing more u.s. investment into china in areas such as financial services, allowing rating firms to operate they are promising to buy u.s. beef and makingd the u.s. is concessions, allowing more chinese exports of poultry and
sending a delegation to china this weekend. see howhave to wait and this deal is executed before there is any celebrations, but at the very least, it's a positive step compared to where expectations were at the end of this year. is hosting the one belts, when roads summit where we will have more than 20 heads of state attending. we will expect to get details of the major projects around the to fund.t china plans it will involve hundreds of billions of dollars of spending by the chinese government and it's a deeply ambitious in its breath and scale. specific details on where they plan to form this project as well. from bloomberg news in hong kong, i'm enda curran. vonnie: while president trump inked out a plan to reset trade relations with china, he is also escalating the fight with the fbi director he fired. joining us in new york today is
kevin cirilli. hand, we are not really focused on things like the china deal and legislation that is not getting done, the hca that is leveraging and some committee, and on the other hand, is not a good thing all. problematic. it takes any perception of little capital that this administration gained after passing health care through the house of representatives, which should have been an easy battle that was a very difficult one out of their control. i spoke with several republican senators all week both on the record and off the record and i can tell you that there is a frustration and a confusion and a sense of what exactly was the timing and the reasoning for the timing. i can be frank, the message coming out of the west wing and the message coming directly from president trump in that interview from nbc news are completely different, completely
on two different pages. vonnie: is it ever republican for his or herself? or are there still groups like the freedom caucus? kevin: there was a group in the senate that was put together, mostly men, republican men to craft house policy, that drew widespread criticism. i heard from senator elizabeth moran earlier when i interviewed her about that. they are beginning to continue to craft work on health care policy reform, but there is no question that you just sends it in the halls of congress. i've been down there all week and you sense there is frustration growing among republicans, regardless of thater or not they think the firing was justified. the way he went about it was reminiscent of the botched rollout of the executive orders on immigration which also coppin flat-footed. you can't get dumped on the less you have political capital, you
can't keep your majority in 2018 unless you can prove that you can govern. this creates confusion. vonnie: meanwhile, people let wilbur ross are continuing what they're trying to do which is craft trade deals. how much can get done without the president's attention right now? via administration says they know how to walk and chew gum at the same time. secretary ross had a great interview earlier this morning and he made the case for what exactly they are doing. this threefold, first and foremost, they struck a deal with china on beef and poultry -- puty argue it will be a $2.5 million dent in the trade deficit with china. secondly, natural gas, they left out coal and environmental protection standards, but still, clearly, they feel this could potentially lead to more job creation in the u.s. thirdly, and this is something that secretary ross spoke about this morning was that they also took financial action -- action with financial services industries. good news for master express and
mastercard, that's only paving the foundation for the future. secretary ross saying they are going to begin work on your plan for how to continue to move forward. vonnie: what are we looking for over the weekend and into next week? kevin: president trump is going to the nato summit in saudi arabia the end of next week and fbi director james comey meeting behind closed doors with the senate intelligence committee. vonnie: kevin cirilli, you are back with me a while :00. you'll have to tune in. our thanks for the moment to bloomberg's chief washington correspondent. mark: coming up on the european lose, this is bloomberg. ♪
vonnie quinn and this is the european close on "bloomberg markets." ♪ mark: in markets, european stocks struggling for direction today, nordstrom becomes the latest retailer to miss earnings estimates. the bloomberg commodity indexes rising for a third day, .ecovering from a 16 month low in m&a news, sprint has started preliminary conversations to merge with t-mobile. we talk about the potential tieups and the $2.2 trillion in deals proposed so far this year. and barclays chief executive falls victim to an email hoax just days after surviving a bruising shareholder bump. aboutmine what that says security at big lenders.