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tv   Bloomberg Markets Americas  Bloomberg  April 27, 2018 10:00am-11:00am EDT

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vonnie: a big day for geopolitics as north and south korea reach an historic agreement. will be discussing that. first, 30 minutes into the friday trading session, we have some economic data here is julie hyman. julie: it is the university of michigan consumer sentiment index. in, as where it is coming lot of it ahead of estimates. looks like it has to do with people's view of their own finances in this economic environment. we got gdp this morning coming in with a gain of 2.3%, as the employment cost index showed wage growth is accelerating to some extent. that said, you are seeing a mixed picture in the markets as the focus if you need to be on earnings. outperformance in the nasdaq
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because you have outperformance of large-cap tech companies. if you look at how they are performing, records at intel, microsoft, amazon this morning. gaining 5% to a record here after the company -- i don't know if we can call it a blowout quarter -- but certainly much better than estimated on the earnings-per-share front. of a company of this size to grow revenues by 43% last quarter is indeed notable. amazon being greeted by a lot of analysts enthusiastically. based on thewing crowd as well, that company coming up with numbers beating estimates in sales. intel, the company's data center of 24%, revenue chip business of 33%. the fly in the ointment with large caps is exxon mobil, particularly when you look at the underperformance of the dow
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today. the oil giant having its worst first quarter output since it merged with mobile in 1999. shares down 3.5%. mark: we are heading for a fifth consecutive week of gains. best stretch since october. we have risen 3.6% in april after dropping for two months. outperforming the s&p 500 month to date. chemicals, technology leading the advance. rbs forging ahead in the first quarter, cutting costs by the most in five years, indicating the lender is well-positioned to restore dividends. shares falling as the chief executive ross mcewan, who had told investors he expected to reach an agreement this year, no new guidance on when they may be able to put that u.s. probe behind it. sharesg with banks, bbva
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of by 2.7%. strength helping to drive its earnings to the highest level in three years, offsetting the impact of volatile currencies. bbva is able to draw on earnings from lenders and other countries. to shield the bank during the european crisis. emerging markets may become an uncertainty with investors concerned about that july 1 election. vonnie: thank you. an historic moment unfolding on the border of north and south korea. jae-ing-un and moon meeting in the demilitarized zone, making an agreement and ending a seven-decade for and
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pursuing the complete denuclearization of the korean peninsula. it has been an historic day on the korean peninsula as the leaders of north and south korea held their summit. they shook and, held hands, and gave each other a hug, ushering in what they claim to be a new era of openness and peace and prosperity on the korean peninsula. they say they will strive to end the hostilities, end the korean war that ended in an armistice. they need to have some sort of peace to by the end of the year. perhaps more importantly, they both say they are aiming for complete denuclearization of the korean peninsula at some point. that would be surely good news to the ears of donald trump and the united states. the two leaders were mostly all smiles, pledging to meet more often as well. kim, in his first remarks really
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we areern media, said, agreeing to share a firm determination to open up a new era in which all korean people enjoy prosperity and happiness on a peaceful land without war. still, there will be some who share pessimism because the north koreans have made many promises before and broken them. for more, we are joined by george friedman. this is only the third summit in the entire history of the koreas. what does this lead to? george: we don't know. the fact that it took lace was very significant. everything was said that has to be said. now we get down to the hard parts. what does denuclearization mean? what will north korea ask from
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south korea in return? to the ask for an end defense treaty with the united states? now we get to the complicated issues. but gestures in this case is meaningful. now we will get down and see if this goes anywhere. i rather doubt it. vonnie: the statement that emerged was this. we declare to our people and the world and there will be no more war on the korean peninsula and a new era of peace has begun. are all 80 million behind this movement? warge: there has not been a on the korean peninsula for a long time. they promised to continue that. the real issue for the north koreans is how to guarantee their regime will survive. visit,said during the for example, they have for transportation, it is a poor country. if they vote on the door
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completely come it may destabilize the government. how far do they go opening up the borders, integration? we don't know. how far do they go in allowing inspection of nuclear disarmament? how far do they go in demanding a break with the united states? we don't know. these are important words but now comes the hard part. vonnie: you say you are skeptical of anything that leads to anything change worthy. just ask for-un something to put out in a statement? how does it break down? george:
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my fear is, united states, you have a defense treaty, you have 30,000 troops here. we will get rid of our nuclear weapons. you break with the united states. that is a decision for south korea to make, an important decision. if it makes that decision, it is still a powerful company -- country. that is a decision for south korea toif it refuses to make tt decision, the north koreans do not go ahead with denuclearization. one of the crucial questions that was not answered, what about all the forces the u.s. has in south korea? i can promise you the north koreans will ask for either a massive reduction or an end to the treaty. mark: one of the more interesting tweets today came from ian bremmer, he says trump deserves full credit, and that and he deserves credit. how much credit does trump deserve for this? george: tremendous. he handled it with restraint a year ago when it looked like we would have to go to nuclear attack. he and his secretary of defense did not do that. he has been extremely patient. he has used threats when
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necessary, conciliatory when that was possible. statesly, the united helped shepherd this, and that was donald trump. i don't know if anybody gets a nobel prize these days, but certainly trump has done a good job. continue doingp a good job at the intended meeting with the north korean ?eader what are your hopes and expectations for that meeting? george: the u.s. will lay out its requirements, which is limits on nuclear weapons for north korea. if it is a good bargaining threats, it will have combined with promises. it will hopefully be a tense meeting. in a tense meeting, you are dealing with substantial issues. if everybody walks away with a feel-good feeling, it will not
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be a very interesting meeting but symbolic. style, whichmp's is now becoming apparent, is to mix threats with promises to get the other side to get them where they want to go. mark: is there a real threat that trump could walk away? he has threatened it. do you see that happening? george: of course, it's possible, depending on north korean demands. if they demand that we withdraw from korea, he may well. but you don't walk into a negotiation saying regardless of what happens, i will stay here and talk. every good negotiation begins with, i don't need this deal, i will leave if you don't give me what i want. vonnie: trump also tweeted about china and thanked president xi for his help. is this a simple thank you or is this they play -- a play?
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george: north korea has always gone to china. basically only intervening to fight the war in korea. don't confuse the fact that they have some interest in, that they trust each other. they don't. is verypoint, trump happy with the dynamic that is going on. no interest in a sudden brick town of anything. if he can bring the chinese into the fold, that is great, while he has these trade negotiations going on. vonnie: the more kim jong-un meets world leaders, the more familiar he gets. does that cause him to lose some of that terror he has been able to inspire? of the best ways to get what you want is to inspire terror and then lighten up.
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in a business to go sheesh and, you don't go in simply saying, i will take anything you want. i want to make you happy. trump is a businessman, he has made a lot of deals. one of the things he knows how to do is negotiate. in this case, he understands what north korea can and cannot do. he understands what south korea can and cannot do. but the player we have not named yet is japan. japan is freaking out. this is an historic issue, the sea of japan perhaps dominated by north korea. vonnie: thank you to george friedman. let's check in on the first word news. u.s. economic growth cooled off in the first quarter, gdp rose at an annual rate of 2.3% after rising 2.9% in the fourth quarter. consumer spending increased by 2013.allest amount since
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still, business investment remains strong. expectations will be low when germany's chancellor angela merkel meets with president trump in the u.s. today. officials siding little chance mr.topping the tariffs that trump wants to impose on european aluminum and steel. presidentfrance's earlier this week, she will try to persuade the president to stay in the iranian nuclear deal. drama in europe is about to enter its finale. finance ministers are in bulgaria today to consider letting greece out of the financial doghouse. they are considering easing payments on greek bailout loans. all must agree before the agreement ends at the end of the summer. president trump is warning other want to undermine a joint north american bid to host the soccer world cup. the president tweeted that the u.s., canada, and mexico have
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put together a strong proposal for the 2026 competition. competition. he said it would be a shame it countries that the u.s. always supports were to lobby against the bid. i'm mark crumpton. this is bloomberg. a big focus on tech earnings today. in a few minutes, an exclusive interview with the expedia ceo. and in the next hour, intel ceo bob swan. this is bloomberg. ♪
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mark: live from london, i'm mark
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barton. vonnie: from new york, i'm vonnie quinn. this is bloomberg markets. tech earnings are helping to boost stocks. microsoft, earnings, amazon helping to boost expectations. there is also a fire alarm going on in the building. to stay here, as is our guest. the head of sector strategy for fidelity. nothing to see over there. talk about the markets and the correlations we have seen this year. >> i have a bit of a different process than most people are used to hearing. nine is really historical probability-based analysis. internal fundamental and macro data come using history to inform our view on making smarter and more thoughtful investment decisions. vonnie: what have you found? respected,ackdrop
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what is unique about this recovery, we had a corporate profit recession from 2014 22016. more prolonged on a global basis but we had one in the u.s.. a clear divergence from gdp growth where we did not have an economic recession. if we just look at history and look at a typical profit cycle without looking at catalyst of corporate tax reform, any other catalyst, it tends to last on average four years. the durability of that cycle is based on the starting point of bank balance sheets, which are very favorable right now. it's look historically, possible and probable we are entering year two of what could six-year-long durable profit recovery. mark: what does it mean on your sector scorecard? quarter, what does it tell us? we do a quarterly sector
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update, looking at the highlights of each individual sect. what it means is now is the time to be leaning into cyclicality. we want to be buying economically sensitive sectors like financials, industrial, technology, consumer discretionary, over the more traditionally defensive sectors like consumer staples, utilities, telecom services. the corrections statistics you have written about, 10%-plus corrections in nearly 60% of the year since 1962, stock returns positive in 75% of those years. you differentiate between full and fair market corrections. should we worry about what we have witnessed in the first three months of the year? denise: in terms of defining your worry, history can add a view. you worry about things that are abnormal.
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what i have heard people described the environment we are normal normal, a new vast pickup and volatility. what i see is what we have experienced over the past two years is actually abnormal. 8.5% of theppens between time. these corrections that we are seeing are normal. 60% of the year since 1962. so if we look at the backdrop of what i just described in terms of profit recovery, this is a very normal environment for equities. it is unfortunate that equities are volatile but quite normal. vonnie: does this mean that we should stay in equities, up our allocation in certain sectors? denise: i think the lean into cyclicality is the message. if history is a guide, some are shying away, saying this is long in the tooth. profit recovery
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story may suggest it is getting longer and leaning into cyclicality may be the most favorable position. vonnie: thank you. the head of sector strategy for fidelity. this is bloomberg. ♪
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vonnie: it is etf friday time. julie: i am here with eric balchunas of bloomberg intelligence. i was about to say jeff good luck. he was making news when he said he would be shorting facebook. this is a guy that is known for fixed income, that is how he made his name. over the past few years he has strayed into making these recommendations about etf's and equities. how has he done with his track record? eric: we only looked at calls
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where he gives you a specific etf. i find that fascinating. anybody can use them. he has done well, better than you probably think. that is why it gets attention. over the past five years, he has made five or six calls using specific etf's. in 2012.d ewj we looked at his calls and said, let's say you're holding period for each was a year, and you equal weight them, you are looking at an average return of 22%. up 140% over five years, but this is more like a hedge fund. the average hedge fund is up 14%, macro hedge fund up only 4%. , he'sis picks are above doing pretty well. the fact that he is not an equity manager may be makes them
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genuine because he is not talking his book. this is what he thinks. he specifically does not put the firm does have some equity holdings. if you look specifically at his india and emerging-market picks, what about the etf's he is recommending their? eric: if you are looking to play india -- he also said long-term, not a year. one thatdifferent gives you more of a value play using earnings. slim has one that is dirt cheap, 14 times cheaper than any other. in emerging markets, he says eem. us analyst cannot handle that. img is the same thing virtually and it is basically five times cheaper, and is now liquid. julie: he needs an etf primer from you.
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what of his own, how has it done? ag, not is beating the crushing it. it is now the second-biggest actively managed etf overall at 3.3 billion. he never talks about it as much, it seems, but it's doing well on its own. ag.returns are against the vonnie: thank you for that. still ahead, a bloomberg exclusive with mark okerstrom, expedia ceo. he joins us to break down the company's results. this is bloomberg. ♪
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vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. mark: from european headquarters in london, i'm mark barton. let's check in on first word news.
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as we have been reporting, the two koreas have agreed to formally end the war that began almost seven decades ago. north korea's kim jong-un and south korea past moon jae-in held an historic summit at the deal and i tried zone. the two also agree to a nuclear free korean peninsula but the north is not expected to give up , anduclear weapons easily its news media urged the u.s. to drop what it calls an anachronistic hostile policy. the new u.s. secretary of state has made his debut. he went directly from his swearing-in ceremony to the airport for an overnight flight to brussels. he met with nato foreign ministers. the nato secretary-general says the trip shows secretary pompeo's commitment to the alliance. speculationewed that the bank of england of england will not raise interest rates next month. the economy just turned in its
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worst performance since 2012 in the first quarter. .1%, that weather hurt retail sales and disrupted construction. still, statisticians say the overall effect was limited. the new royal baby now has a name. he will be known as prince louis arthur charles. the names honor his grandfather and a close friend of the royal family who was killed in an ira bombing in 1979. powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. vonnie: thank you. exceeds expectations, up by more than 1.8% now after beating on first-quarter profit, despite some weakness from
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trivago, after it reported negative year-over-year revenue in q1. seattle forow from an exclusive interview is mark okerstrom, expedia ceo. let's start with trivago weakness, facing some structural headwinds. how do you plan to meet those? mark: trivago is in a transition to do right now. a lot of their larger advertisers have pulled back on their spending. that is giving an opportunity for the smaller advertisers to step up. unfortunately, the overall monetization of the platform has been lower than it has been. the bottom line is it is a great plant warm for advertisers to advertise on, and the popular service with consumers, so we are optimistic that things will be getting better. vonnie: also because of your investments in homeaway, profit has come under some pressure. how do you plan on making homeaway add to your bottom line
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for the next quarter and on? homeaway is on a great trajectory right now in terms of topline gross bookings, 40% year-over-year, revenues looking but the issue with homeaway is not really an issue. very highly seasonal business. we pay for marketing in the first quarter, we generate strong bookings -- like we did this quarter. then people travel in the summer and that is when we recognize the revenue. we feel good about homeaway on a topline and bottom line. i think it will show to be true through the year. vonnie: when will it be fully integrated with the core platform? mark: homeaway we will operate generally on a standalone basis, but what we are doing is making homeaway properties available on , expedia,ta brands travelocity, hotels.com.
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homeaway has about 1.6 million online bookable listings. we have 175,000 of those alive now on other associated properties, testing what works, working through the issues. we expect that number to climb pretty steeply as we go through the year. .onnie: success obviously what should be look for going forward, more deals, acquisitions? certainly, deals are in our dna, so we are always on the hunt. but we are also discipline. over the last number of years, we have built an incredible portfolio of some of the leading brands in travel. right now we are in a position where we don't need anything else to be successful and to deliver on where we want to be. we are very focused on making the most of what we have, making sure we are being locally relevant on a global basis, going into countries and building powerful network effects or suppliers and
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consumers, making sure we are customer centric, and making sure we can increase the speed of execution and innovation. focused on solid execution but will continue to be opportunistic on the m&a front if we see something that fits in nicely. vonnie: the way booking holding has been going, how do you plan to make marketing spend work for expedia overall? at this game been for a long time in terms of digital spend, as well as television spend. we are highly analytical in the way that we approach it. last year we spent $4 billion in direct sales and marketing. this year significantly more than that. looking foralways ways that we make sure we get the most out of our marketing dollar over the course of the first quarter, we were disciplined in making sure we could prove to ourselves with real math where we were making appropriate returns on marketing and spend and we we were not. that will be the course for the
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next go forward period, just the more disciplined. we are confident that our market spend is smart. we are just looking to get smarter. vonnie: does that include a position on facebook, other social media spending? do you plan to reduce that, especially given the scandals we have seen the last several months? mark: we have no plans to reduce our spend in these large platforms. the bottom line is facebook continues to be a very attractive plant warm where consumers are, a number of other advertising platforms out there were people are thinking about travel, whether dreaming about it or making a trip, our present. and we want to be there. we are obviously cautious and very concerned, very focused on making sure consumer data is done with appropriately. that has always been the case, continues to be right now. but we are looking to spend more on these channels assuming we can get appropriate return.
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vonnie: international booking growth remains strong. domestically we are seeing a bit of a deceleration. is this airbnb, other hotels making offers? mark: we feel the domestic market is still very healthy for us. the numbers we look at continue to suggest we are growing at rates two to three times the overall industry. quarter to quarter, you can see movements. in the first quarter, because of easter timing this year versus last year, we did see it come in earlier. when people are on vacation they are generally not booking travel. on the margin there can be moves quarter to quarter. but we feel good about our domestic progress and feel good about our position in the u.s., growth rates we are seeing. vonnie: when is your target set on when it comes to washington, d.c. policy, regulation? what are you watching over the next few months? mark: certainly watching the
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outcome of the travel ban, which will ultimately be decided by the supreme court. we are a travel company, so we are interested in that outcome, wanting to make sure that not only do we have secure borders -- buth we have to have that we are appropriate in representing the brand of the united states of america outside the u.s. tax reform generally has been positive or us. we are looking for things to put more dollars in the hands of consumers, generally in the u.s., and increasingly around the world. one of the first things consumers want to do when they get in at the dollar is to take a trip. vonnie: mark okerstrom, thank you. the ceo of expedia. shares are higher today by about 8%. mark: we are sticking with tech. on cloud, tech bulls
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nine after microsoft, amazon, intel report solid results. our tech earnings roundup is next. this is bloomberg. ♪
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vonnie: time for our bloomberg look to. we find context and background on issues of interest. even as artificial intelligence has grown by leaps and bounds, predictions about it destroy humanity or creating utopia have not come to pass, at least not yet. we explain what a does for us now and why some are wary about ai's future. >> we have all seen terminator two. artificial intelligence is trying to destroy humanity.
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that prediction has not come true, at least not yet, but ai is very much year. in the past decade, artificial intelligence has found real word presence in everything from hedge fund trading to brewing. experts question how much farther it can go from here. artificial intelligence is software that solves problems. problem, renters a guess about what is going on, and then thinks about how it can act. >> you can think of it like a giant xl spreadsheet. running statistics to find the best guess. is this an apple? let's run all of these calculations to see if the computer thinks it is an apple and has qualities that reminds it as an apple. >> the companies making the most use out of ai today are companies like his book, google, amazon. >> pretty basic stuff like recognizing your face in a photo , translating a menu on your phone. in a selfuter vision
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driving car to see where other cars are, where obstacles are. attempt tothe first create artificial intelligence were in the 1950's with the arrival of neural networks, software that can process similarly to our brains. suppliedternet finally the type of data that these neural nets needed for sustenance, huge volumes of images, text. that is what allowed all of these algorithms to take off. >> today, systems can beat humans at things like playing stocks are playing the board game go. but the technology remains limited. today's ai still needs humans to occasionally tell it, yes, you are doing the right thing, or that does not look right. >> the end goal is to create an artificial general intelligence, which would be ai that did not need a human to hold its hand. >> there is a lot of debate
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about when or if we will ever see agi. even the possibility has made skeptics like elon musk and bill gates, who warned that ai may end up automating some re-tasks, millions of humans may end up without jobs, or the two other unforeseen calamities. >> with artificial intelligence, we are summoning the demon. vonnie: read more all of our quick takes on the bloomberg. alexa, show me the money. amazon hits a record after delivering prime first-quarter earnings. revenue increased more than 40%. if that was not enough, the company said it would do better going forward. joining us now is paul sweeney. this increase in prime membership rates, how much will that add to the amazon bottom line? paul: a big improvement. the amazon story has been a
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revenue driven story, the company has been pretty comfortable, shareholders have been comfortable sacrificing near-term profits for long-term companygrowth, as the continues to capitalize on e-commerce. the real drivers here in terms of profits start with the cloud. continues torvices put up huge topline growth strong, and very operating income profit margins, better than what we see out of the core amazon business. vonnie: how much growth can we see in fulfillment and data centers for amazon? paul: fulfillment is where they fulfill the orders by third-party players, sellers within the network can actually one of their fastest-growing areas. it is one of the drivers why the company continues to invest significant amounts of money around the world, particularly in the u.s., in developing and building more fulfillment centers, distribution centers, to get closer to the customer.
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they are trying to get their film and centers as close to the customers as they can to minimize delivery times, increase value, which will allow them to continue to take share. mark: president trump singled out amazon for making the postal service "it's delivery boy." have those concerns dissipated for now? paul: i think so. the expectation is there is not much that can be done there. amazon, one of the largest customers of the united states postal service, they have a symbiotic relationship. are there improvements that could be made along the way? absolutely. but the risk that president trump called out in the name, most investors feel pretty comfortable about the relationship. the real question is how can amazon continue to grow its distribution and fulfillment, and what part will the u.s. postal service play in that,
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that remains to be seen. mark: let's cut to the chase and talk about the avengers. it comes out this weekend. it is the 20th marvel cinematic film. there are tons of heroes in it. let's talk numbers, how big will this be at the box office? paul: it will be huge. it could be the largest opening weekend ever, eclipsing the original star wars that came on a couple years ago. this could be a $250 million domestic opening weekend. clearly, on a global basis, looking for well over a billion dollars of box office over the next several makes -- weeks. this is really bringing everything together and is just another hit and a long list of disney, marvel, pixar, lucasfilms hits that disney has in his portfolio. vonnie: can disney keep meeting
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the bar and exceeding it? have neverpically seen this in hollywood before where a studio has had such a winning streak. this is a multi-your winning streak for disney. i think it can continue. the reason is they have spent over $15 billion buying some of the best intellectual property on the planet, starting with marvel. pixar, lucasfilms. you put those three studios together and you look at the ip the company has, and you look at over the next five years, they have five or six major temples every year. vonnie: paul sweeney, music to our years here on bloomberg markets. thank you. merkel headsangela to the white house. the german chancellor is set to meet with president trump to talk about trade and iran. this is bloomberg. ♪
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vonnie: we have some breaking news. interest expenses surged 57% in 2018 to nearly $5.1 billion, 32.1 billion yuan. , already burdened, interest expenses surging to a record last year. president trump is set to welcome angela merkel at the white house. tariffs and the iran deal will likely top their agenda. critical deadlines are fast approaching on both. we are joined by kevin cirilli. kevin, it will be fascinating, the optics of this meeting, given how friendly and warm the meeting with the french president was during the week.
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even a state dinner in his honor. kevin: good morning, yes. french president emmanuel macron talking directly with german chancellor angela merkel reportedly last night. many of the same topics that were first discussed during president macron's trip will also be on display. chief among them, european exemptions from the aluminum and steel tariffs. the europeans would like to see that permanent, although it's not clear whether president trump both concede that point. on the point of the iran nuclear disarmament deal, president macron saying he believes president trump will ultimately decide ahead of the may 12 deadline to withdraw from the deal. chancellor merkel and other european allies, including president macron, as well as the u.k. prime minister theresa may, are also urging the president to reconsider. vonnie: we are watching live pictures of the president greeting members of team usa
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from the winter olympics, terry olympians as well at the north portico. he just made a comment on north and south korea, saying a lot of good things are happening in the koreas. we will bring you more headlines that are marked from that meeting. concentrating are on today come later with the german chancellor. what will she tried to persuade donald trump of? clearly, there is massive interest in a trade waiver extension tuesday, and then it syria.ped up with iran, everything is wrapped up together. kevin: absolutely and when you dive into the economics of this, we should note, china remains the top country in the world in which the u.s. has a trade deficit with. germany has the fourth-largest surplus of any other nation in the world. so this is something -- with the united states. this is something that has
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frustrated this administration consistently. when she is making the case to make the trade tariffs permanent, it is something that may work against her favor. in contrast to that, france has a much lower trade surplus with the united states. it's very interesting to see how exactly they will be able to convince him on the issue of trade and economics. on the issue of national security, no doubt every republican and democrat in the national intelligence community sources i speak with note the dialogue that has opened up with regard to north korea is definitely a positive step forward. although my sources are urging the president to greet this with jong-un'scause of kim questionable actions in the past. vonnie: the expectations for this meeting and macron is like night and day because the expectations are so low, because
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the bar is so low, might we be surprised, might something be forthcoming when the two leaders meet? kevin: you said it, absolutely it tends relationship between president trump and chancellor merkel will be on full display this afternoon when the two heads of state give a joint press conference likely in the 1:00 hour. the on, the expectations are so low with regard to a host of policy agreements that there really are not many expectations to be set. on the flipside, president macron's visit and his joint address to congress this week, really, he was making the case for all of europe in terms of the relationship they would like to see. there's no question president macron and chancellor merkel represent two very different clinical -- political bases than president trump. that said, u.k. prime minister theresa may, would argue, share
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more similarities. obviously two different brands of conservatism. deal, issue of the iran on russia sanctions, many of these european progressive leaders have deep russian economic ties. so it is a very fluid and different situation than last year. our thanks to kevin cirilli, our chief washington correspondent. he will be reporting on all those meetings today. mark: coming up, the european close. 35 minutes from the end of the friday session. five consecutive weeks of gains for the european benchmark stoxx 600. this is bloomberg. ♪ ♪ .
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mark: 11:00 a.m. in new york and 11:00 p.m. in hong kong. 30 minutes left in the trading day in europe. i am mark barton. vonnie: i am vonnie quinn. this is the european close on
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bloomberg markets. ♪ mark: here are the top stories we are covering from the bloomberg and around the world, sterling sinks as u.k. gdp disappoints, casting doubt on the bank of england's rate timetable. assets on the economy, we speak to the chairman of the white house council of economic advisers as u.s. rose -- growth calls. cfo ask with the intel the nasdaq goes lower today. have a look at european equities. stocks are rising for a fifth week of gains, rising for a second day. the fifth week of gains, best since october, rising

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