tv Bloomberg Markets European Close Bloomberg June 1, 2018 11:00am-12:00pm EDT
vonnie quinn and this is the european close on bloomberg markets. mark: here are the top stories we are covering from the bloomberg and around the world. hammondellor philip reacting to the u.s. decision on tariffs and we will speak with him live from canada. more insight from what the rising trade tensions mean for the global economy from the french finance minister bruno le maire. populists surge to power in italy. is out as prime minister of spain as well. have a look at european equities. gmm is the wonderful function with the stocks rallying and the ibex is up.
italy was setting on a two-day loss of 4.7%. european benchmark, best day since april. we have a new leader in italy who was sworn in over one hour ago with a new cabinet. and a new prime minister in waiting in spain. the euro is lower against the dollar as are the other currencies with sterling rising. the spanish five year yield is lower by 13 basis points. a turbulent week in the eurozone bond market. deutsche bank in the news as their chief executive suffering a fresh setback in his effort to reinvigorate the european biggest lender with global ratings cutting its credit +, the third lowest investment grade.
he replaced john cryan in april with a mandate to accelerate the plan to refocus european home market and away from wall street. shares of the lender closing at a record low yesterday but bouncing back today. yesterday, regulators in the u.s. having deutsche bank operations in the country with a list of problem banks. shares have fallen by 40% this year, the worst year in a decade with the record intraday low on september 30 of 2016, 8.83. above that level as of now with deutsche bank's trouble worsening, investors rushing to catch as the stock split any record close on thursday, trading a bearish options on the german shares, highest level since 2008. the volume of puts 10 times greater than the 20 day average on thursday. versus bullish contracts
climbing to the highest level since october of 2016. data out of the u.k. with manufacturing growth unexpectedly beginning in may. working through backlogs and building up inventories. a rebound masks areas of concern. 90 minutes into the session in the u.s. back ofhe rally on the the jobs report with the low unemployment rate of 3.8 are sent and better than estimate weight growth -- 3.8% and better than estimated wage growth. all three averages with good rallies. earlier in the week with the selloff, we thought we were dropping below the recent trading range but are firmly back within the trading range. even though today is a substantial rally, it is in line with the recent trading moves we have seen. the sideways move we have seen in the s&p 500. in theups on the move
session today, technology would be best, s&p, up 1.6%. what youl led rally, would expect on the strength of the economic numbers. materials come industrials, financials, only utilities outperforming with the rise in yields. i am looking at the tech performance later at the moment. advanced micro devices leading gains. intel rising with semiconductors and alphabet and microsoft on the rise. out of that or google introducing a new app which helps you track appointments. alphabet, if you look at the market cap of alphabet-microsoft , and a connect with the third-largest market cap in the s&p 500. microsoft had been higher than alphabet recently, now alphabet
is back on top. vonnie: thank you for that. korea,g news on north the wall street journal reporting that one of north korea's leader kim jong-un's top lieutenants who is in the united states until saturday will deliver by hand a letter to the president of the united states saying that the summit will take place as long as there are no concessions or threats involved. letter will say, according to people briefed on the content, that there is an interest and meeting and having the summit without making any significant concessions or threats. donald trump is scheduled to spend a weekend in camp david in agenda., long planned officials are getting optimistic. this letter today will be basic according to the wall street
journal. let's move on. you largest private employer in the u.s., walmart, annual shareholder meeting in arkansas. taylor riggs is there and joins us with an analyst. taylor? taylor: a lot of pop and circumstance going on behind us with news happening. we just heard from the head of u.s. walmart and joining me to break this down is the morgan stanley analyst who covers walmart. great to have you. we just had earnings on may 17 and we wonder if there is anything new? what are you looking for out of this meeting? >> walmart as two meetings with the investment community, october analyst day and shareholder meeting. this is not usually be revealing meeting which is usually october. the year is finishing up and looking at the outlook for the next year as strategic planning, that is when you get the preview
. now is a strategic update, the year is in place. two things we got from last year, they signaled they would focus on expenses. they talked about how it was important to reduce expenses and he was telegraphing the fact that the cost of business was rising and they needed to focus on expenses. the flip card deal is big this week, talking to executives about it for the first time. taylor: there is always a balance between investing and growth, and the treasure that puts on margins. how do you balance that growth versus margins? is what hard, this walmart is aspiring to achieve but tough for any retailer. better for retailers to invest without promising the margin or the return in the near term. one of the challenge walmart has is food, a good business but low margins and the cost of business is rising because of online groceries. it is a tough balance and may have done a decent job, but tenuous they will continue have
to figure out the ballots. taylor: the first time we hear from executives about flip card. waiting regulatory approval. >> very controversial. the first time we did not know the price but saw it made sense. getting into india long-term. we found out the price and were taken back. , walmart wasgo criticized for not being bold enough in e-commerce and then they got credit for it and now criticized again. india is a big market and will be the most populous market in 10 years. i think the business will pay off. you are stretching the duration of what the shareholder is expecting versus what the company is doing. taylor: always a smart conversation. with the morgan stanley analyst who covers walmart. vonnie: the stock is up .8%.
taylor riggs reporting from arkansas. stuff.reat the meeting in canada upended by the announcement of tariffs from the u.s., canada, and the eu. amanda has an exclusive interview. amanda? >> i am here with philip hammond, i would like to start with the tone into these meetings. around trade. a bomb thrown by the u.s., retaliatory tariffs from canada from the eu. how does that change the atmosphere as you meet with your compatriot? >> it does change the atmosphere and we feel very disappointed as a close ally and partner to the u.s. that they have taken this step on national security grounds. we are close security partners with the u.s.
we continued to talk with them. leaders are meeting here in canada in a week. we know president trump's way of doing business is personal and he will have direct interaction with the leaders of the countries. that are most affected by these measures. it is the hope that we will focus this weekend on trying to calm the situation down and look for ways forward and hope the leaders, when they meet next week, can make progress. >> assuming trade action is part of other negotiations, what will your focus be and what do you want to achieve with this meeting? >> this series of meetings are an ongoing process of advancing the agendas of the g7. different g7 chairman, president's have different priorities, canada has a big focus on gender equality and alan finkel role of women in economic development. the u.k. is strongly supportive
of that. that will be a big fame. -- ther=me. we look at the trait -- theme. we look at how we tax the digital economy. >> there is turmoil in europe. you have ongoing negotiations around brexit. how does that play into your thinking about how this will unfold? >> it complicates issues from a u.k. perspective because, at the moment, we are part of the european union. in terms of a trade response to the u.s. tariffs in position, we are working as part of the european union. we are also looking at our future and potential trade relationships with countries like the u.s. and canada. once we are outside the european union. it is a more complex situation. there are a number of things going on in europe as you pointed out. brexit is just one. inbrexit is a complication
terms of the u.k. economy on the other side and a great fear is what happens to the financial sector in the u.k. there have been some debate about how to manage that, including where the financial controls get, brussels, the u.k.? your view is aligning with brussels makes sense. >> my view is that once we leave the european union, it will make sense from our point of view and from the remaining eu 27 point of view that we continue to have cross-border trading in financial services. london is europe's most important financial center and an asset not just for the u.k. but for the whole european union. finding a way to allow us to do that, that recognizes the legitimate concerns that the rest of the eu would have about a major financial center serving the market with outside their jurisdiction. we have to address those concerns. also, encouraging our eu partners to reduce -- resist the
temptation to be crudely protectionist in the way they look at the future of financial services in europe. >> there has been a suggestion that although financial services is important, like 20% of the total economy. perhaps you could take a hard line and say we will be the rule makers and not the rule takers. what is your view of trying to negotiate from that position of strength, even if it means this location for that sector? >> much less than 20%, 7% of our economy, financial services. the majority of that 7% is either domestic facing or rest of the world facing. off the 7%, a quarter is eu facing. it is a relatively small but strategically important part of our economy. there are two options for us, we get a line efficiently with the sure weebook to make
have continued access to european markets. if that proves not possible, we will look for an approach which maximizes our opportunities in the rest of the world. already we have a strong presence. >> you have been in the u.s. recently, silicon valley, very strong tech presence in the u.k. how do you build on that and maintain your presence as a hub on the other side of brexit? >> brexit is a factor but not the most important factor. tech companies come to the u.k. because of the talent and of the work going on in academic institutions, universities across the u.k. that is a very important driver of tech industry. i am confident on the discussions i had in silicon valley over the last few days that those links will continue.
the business model is more and more of silicon valley giants is to have distributed engineering and development centers around the world. london is one of those centers. x onou referenced the ta technology companies, something emerging already in the u.s., what is your thinking around that as you build up additional tech presence in the u.k.? how do you tax those companies? >> it is a challenge, as the economy changes and more becomes digital, we have to look at our tax system and asks if it is appropriate. the problem used to be the big digital platform companies not paying any tax anywhere because of the way they used offshore jurisdiction. since the u.s. tax reform act, the problem shifted, they will now pay tax in the u.s. the problem from the european perspective or the perspective of other non-us countries is
that much of the value created is created by users, providing their data, users uploading content, and there has to be a way of capturing that value so the tax these companies pay is shared fairly between the place where they are made -- based and do the engineering and create algorithms, and the place they do business and collect the data from their consumers. >> in the u.k., while the economy has been relatively strong, wage growth has been stagnant for a long time. what is the opportunity here to try to simulate -- stimulate wage growth? >> rising real wages is the number one objective. i am glad to say that this year real wages are now rising again and we expect that to continue. we are dealing with a spike of inflation that was caused by the currency depreciation in 2016. that is working its way out of the statistics and we are seeing
, as inflation falls, real wages rising. that is a very good position for the economy to be. >> a conversation in several countries domestically, i wonder if it happens here, the tension between central banks letting inflation run hot, but looking to begin to normalize rates. finance ministers looking to stimulate their economies, are we getting the balance right? >> in many countries, we have an independent monetary policy authority in the bank of england. in most countries, after the financial crisis, monetary policy took a large part of the strain and a large part of the burden of the correction. dealing with the correction. as we move further away from the crisis, it is proper that fiscal policy increasingly plays a role and monetary policy is gradually allowed to normalize. we support that approach. >> we will continue to see rates
therefore going higher. some countries were inflation is running hot, do you worry about inflation picking up in other economies around the world? >> there obviously is a problem for countries heavily exposed to the u.s. dollar. as u.s. dollar interest rates rise. that is an issue that will be on our agenda this weekend. the impact on some developing economies of increasing u.s. dollars interest rate. for the u.k. where we have had a spike of inflation, which is now coming down, there is clearly scope or the bank of england gradually and carefully to normalize interest rate over time. >> there are many more steps to take to figure out brexit and what it looks like post-brexit. customs union, what are your thoughts about where you are with that? >> we have always said we would need a close customs
collaboration with our eu 27 neighbors to make sure that we can continue to make cross-border transactions in goods without creating lots of new customs yurok receives at additional costs -- bureaucracies at additional costs. we have to work out how to do that while allowing us to pursue an independent trade policy as nonmembers of the european union. that is an ongoing the session. >> we appreciate your time. >> thank you. >> philip hammond. mark, back to you. mark: amanda at the g7 meeting in canada. much more coming up, for what will rising trade tensions mean for the global economy? we will talk with the french finds -- french finance minister bruno le maire speaking first to bloomberg. from u.s.ve sectors coast guard headquarters in washington where president trump will take part in the change of command ceremony.
york, i ame from new vonnie quinn mark: live from london, i am mark barton with the european close minutes away. michael mckee is an whistler, british columbia. >> we are with bruno le maire, the french finance minister. thank you for joining us. we were talking with philip hammond and he said the u.s. trade sanctions that were imposed yesterday changes the atmosphere. can you describe what that atmosphere is like? >> i think we should have been united during the g7 to tackle
the global challenges of the world. i am thinking of growth, employment, development, and instead, we will be divided. it will not be a g7, it will be 6 plus one. 1 -- a g the u.s. has raised tariffs on aluminum and i -- and as i explained to the french president, the decision is unjustifiable and dangerous. dangerous for growth and the economy -- economic development of the world and jobs in the eu. >> is this the beginning of a trade war? that, ave to avoid trade war is not in the interest of europe or the united states. tohink we should use the g7 discuss together -- the six
states was the united states, to try to find a way out. it is up to the american administration to make the first step and to find a way out. they decided to put sanctions on iran and raise the tariffs on steel and aluminum when the problem comes from china and not from the eu. it is up to the american administration for a solution. >> what is wrong that an american argument that a strong steel industry is an important import be strong economy, which is important to national defense. >> a strong steel industry is of the utmost importance for the united states, of the utmost importance for the eu, but the problem does not come from the eu. the other capacities on steel and aluminum come from china. let's discuss the best way of tackling that issue of overcapacity's in steel and
aluminum from china. sanctions orutting rising tariffs for the eu is something we do not understand. let's try to find a solution altogether. it is up to the united states to give to the eu a full and permanent exemption on tariffs so that we can renew the discussion and dialogue between the u.s. and the eu. >> for the negotiations? >> we will not negotiate under pressure. >> president claims the u.s. is more respected around the world than it ever has been. what do you think of that view? >> i do not share that view. we are close allies with the united states. shown we macron has are on the side of the united states, including on key strategic questions like syria.
havehe single response we from the behavior is an aggressive behavior from the trump a demonstration. not -- administration. not sure during the g7 we would not have the united states respected by the other members. we run the risk of having tensions that we should have avoided by finding other solutions to the concern of the overcapacity on steel and aluminum. >> would you join with the donald trump administration in action against china on intellectual property? or has this poisoned the well and you may do something on your own? >> of course, and we have made clear, president macron in washington made clear that we were willing to work with the united states on those key issues. of course, the protection of
intellectual property is for us of utmost importance. we have to think about that question with our american friends. we are open to discuss with the american friends on the question of access to public pursuance because we can no longer accept the chinese companies having access to the public procurement in france and germany or in italy, not the same for the french companies willing to have access to public procurement in china. also aboutto discuss the key question of the chinese state aid to their company. we do not have it in europe or the united states. let's talk about that. let's renew a constructive dialogue between the u.s. and eu on the key questions related to china. >> if i can shift gears, what is your impression of the new italian government?
that it is good news for the eu. i will look forward to working with the new government, and to working with my new counterpart in italy. i think we have a lot of things to do and i look forward to working with him. >> do you know the new finance minister? >> i do not know him. but i look forward to knowing him and i hope that i will have the opportunity to meet my new italian counterpart in a few days. >> does this bring the danger of italy moving out of the eurozone higher or lower? >> i cannot imagine italy going out of the eurozone. challenges that we will have to face, all the member states of the eurozone, we have to remain united.
we have to take into account the concern of the italian population and understand the results of the vote in italy. the key question is to remain united. the 19 member states of the eurozone have to reinforce the eurozone's of the eurozone will be more able to face financial crisis or difficulties. that is the key challenge. we will count on the support of the italian government. >> thank you very much for joining us today. we will send it back to you. youie: michael mckee, thank and for all of your reporting on the g7 meeting in whistler, canada. g7 plus maire says the one. fascinating for the perspectives because it seems like all of these people are trying to send messages to president trump but he is not listening. said, fascinating part
of the interview when mike asked him whether the u.s. is more respected under donald trump, he does not see the u.s. as being more respected and wants to overcome this trade dispute between the eu and the u.s. interesting little viewpoints on italy. like the question about the probability of italy leaving the eurozone increasing, and bruno le maire said he cannot imagine italy exiting the eurozone, avoiding the question. that is obviously very politically difficult to answer your. vonnie: having the interviews back to back with philip hammond and the french finance minister, bruno le maire, later on hearing from more luminaries, puts into perspective what governments are dealing with and how difficult it is for them to placate electorates and keep them employed, and at the same time, work together. it seems many governments are
asking the u.s. to begin talks, including north korea as we hear there will be a handing of a letter to the president from kim jong-un and it remains to be seen what kinds of relationships will emanate from anything that gets renewed. if anything does. mark: great stuff. i will tell you about the european close as i subtly drift back here and tell you what happened at the end of the session today. a wonderful chart. this is the end of european trading. best day since april led by banks, insurers, basic resources, industrial goods and services, european benchmark gaining for a second day in three, biggest increase since april. the second weekly decline, italian stock had a storming day after the first couple of days of the week. the benchmark staring at a big loss of 4.7%. it wiped away all the loss with italian stocks rising the most
today since february. a new prime ministers sworn in. the next step is for the italian parliament to get a new cabinet. stocks finishing on a bright note after what could be described as a traumatic start to the week. this is the spread between italy and many coming down from the tuesday intraday high of about three basis points, in between -- below 230 basis points. interesting comments from pimco and other big players on the market, the worst month for italian yields in may since 1993. the cio of pimco says yields are still pretty low, they have an underweight position on the italy debt. it is political and market uncertainties, it says the new governments needs to -- is dangerous for long positions with the possibility of more forced selling and rating downgrades and capital outflows. joy lost the confidence vote
and the socialist leader is the premier in waiting. betweenay, the spread italy and dramatic rose to about 135 basis point. it has come down since then to just 106. the difference in yield between spain, germany, italy and germany is significantly, highlighting the widely held view that italy is no spain. italy with a strong economic backdrop. if there is a government, which comes after maybe an election if sanchez's government does not last long. on the eu issue, data out of the eurozone, manufacturing losing momentum in may as the strength of the demand eased. vonnie: a little air coming up at the risk off sentiment. you can see that in the yen trade.
weaker yen. june 1. this is interesting. wti --d plus a 66.38 on 66.38.on this is micro, macro, flow factors weighing on these prices on the spread, widening. it will come back into line as soon as opec and russia pump more in. weaker chinese yuan. china again putting pressure on the break pedal. the g20 movers, you mentioned them already, italy having a better day now that there is success with an actual government. the korean won is up seven cents of a percent.
-- 7/10 of 1%. we will get a hand delivered letter to the president of united states from kim jong-un saying he wants a summit with no preconditions or any threats. you pointed out that sovereign bonds are having a little bit better day with money coming out. in spain, lawmakers to -- voted to oust rajoy and the socialist leader is now the leader. what does sanchez stand for? what does his led government look like? >> it is out with the new and in with the new ends rain. sanchez is officially be prime minister. people were relieved i what they heard from him. he says he will have to lead with broad consensus. he is well aware that this is a
weak minority government you will have to deal with. he made an interesting reference to babylonia, tension in the region. the idea that perhaps with the new government in madrid, tensions will ease. relief for investors the fact that sanchez said they will stick with the budget. he is a socialist i will keep the budget in place. and comply with european rules when it comes to the deficit. markets were reassured by that. -- will wel change see changes in economic or fiscal policy? >> we could see. goldman sachs today basically said the budget is done by the ppp. sanchez will keep it. we will perhaps see expansion. we have to watch the taxes.
the socialist party was clear about this at the start of the year, spain does not have a spending problem according to them. and issue when it comes to collecting tax receipt and that means raising taxes and they made a pledge when it comes to banks creating a tax for banks. that means santander. mark: how long can sanchez remain as prime minister? what is the best case -- worst-case an area? >> best case scenario, he should 2019,ly thank rajoy, sources from the pp says they could veto the budget. they will not do it that let him use it. that could take him until 2019. the issue is after -- 84 seats in parliament he has. people said they had more seats and it was more difficult to govern as a minority government.
we could see a government that last for one year into new elections. sanchez said he would call new elections but now it seems he probably will stay all the way in until 2020 as it best case scenario or sanchez. mark: great job this week. maria live in madrid. vonnie: the populist party prevail, the italian new government finally takes form. a law professor with no political expense to speak of was sworn in as prime minister today. no surprises. about the deputies. termsonomics are better economy minister -- turns -- the economy minister is who we are focused on. he is a technocrat. he is a local economics professor in rome.
that has been an article has been circulating on twitter where he publicly called out a debate on the air. look at what he said. people who call for unconditionally leaving the euro as a chore all the tales are not right. isio draghi says the euro your reversible. today is the 20th anniversary of ae ecb and not sure if it was birthday present mario draghi wanted. it was an interesting post. it is what sparked concern over the weekend and where we saw the selloff in the markets earlier in the week because the president struck down and vetoed their choice. it was to even him out, the foreign minister is a little bit more establishment. he worked under mario monti and under the european commission. there is a mix.
markets are focusing on the finance minister pick. ,ark: the big concern especially in the blowup on tuesday, was, if we go to elections, it could lead to a de facto referendum on euro membership. --t that concern died down has that concern died down with the formation of this new populist government, or will it only be a matter of time before some say they show their true colors? our opinion pieces put it perfectly, saying they brought the exit -- the genie out of the bottle, the exit is out and now you cannot put it away. the idea that italy wants to leave the euro is on the table. it is not part of their agenda or their manifesto for this coalition. even goldman sachs says the market is having a positive reaction and the government is misplaced.
goldman sachs says even though it is not specifically on the agenda, it sets italy up for more confrontational approach with the european union. vonnie: all right. annmarie, thank you. mark: the new deutsche bank to's executive face -- chief executive facing a setback as their credit rating was cut. federal list of problem banks. many of you are tired of bad news he said in a letter to employees today. no reason for us to be discouraged. at employees at the bank -- -- our employees at deutsche bank discouraged? >> it seems to be on the bad news. the u.s. problem bank list.
that is concerning and the s&p downgrade which could raise funding costs and raise the cost of doing business generally, which makes it less competitive. it could hurt revenue. that could lead to more pain. downgrade ande a that will inflict pain on deutsche bank. the bad news is not over. what is the likelihood this spirals? >> at the moment, what investors are looking at, a couple of data points that point to a slightly more stable situation than in 2016. specifically the liquidity buffer, 30% higher than it was back then. capital is much stronger. banks raised 8 billion euros last year. that is getting at a comfortable buffer. it points to a more solid situation. mark: what is the view?
averageon earlier, the estimate, median per shares to rise over the next year, but more than 50% have a sell rating. interesting views within the analyst community. what is the sense when it comes to the shares given that they felt to a closing record low yesterday? >> you are starting from a low point. what the bank is doing is retrenching in markets such as equity trading. the real test will be whether it can retreat selectively. whether it can maintain the market position where it wants to stay. we will see a glance of that the second-quarter numbers to -- numbers. over the last 18 months, you see the erosion of client business beyond the areas they want to retreat in. mark: good to see you.
never a day without a deutsche bank story. vonnie: let's check in on the first word news with courtney donohoe. >> a letter from kim jong-un to president trump expresses a desire to meet with out having to make the concessions according to the wall street journal. m's top aide is expected to hand the letter to the president today and officials have said the summit will aim to get a denuclearize north korea. president trump has escalated a trade war with canada. he warns the canadian prime minister that any renegotiated north american free trade agreement must be a fair deal or there will be no deal. trudeau says talks collapse when mike pence have a new agreement for a sunset clause. hastrump administration
backed off investigations into market rigging that began under the obama justice department. the u.s. has learned -- opened a criminal probe into whether traders manipulated prices and freddie may -- fannie mae and freddie mac box -- bonds. global news 24 hours a day, on air and at tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. vonnie: thank you. coming up on battle of the look at a will take a couple of charts you will not want to miss. this is bloomberg. ♪
-- gtv go. transatlantic today. >> energy markets are always very exciting but this week it depends on how they look based on where you are in the world. this chart shows the price of brent relative to wti. normally, wti as a discount to brent but they move in the same direction. that has gone crazy this week. a lot of stuff going on in the u.s. mostly it has to do with infrastructure. producers have literally run out of space and pipelines to put the oil. that oil has been cut off the market and the price has fallen relative to price of brent. you see these spreads widening. almost $11. a level we have not seen in three years. this may get worse and there have been some companies like comical phillips which may move investment away from the shale play away from this.
that is a big deal. go.k out more data on gtv vonnie: wonderful. gina in the united states. >> job stake in the u.s. and that is what my chart focuses on. is really fascinating. we see that black unemployment plummeted in this last jobs report, down to 5.9%. what is interesting is the ratio between black unemployment and fight unemployment is at the second lowest on record. the last time this low was in 20,009 which shot back at -- 2009 which shot back of the next month. a topic donald trump talks about. whether we can get white workers into the labor market -- black workers into the labor market. get into would love to
the reasons behind that but that will be in another segment. my pick for the winner today is gina. mark: a brilliant chart. what a day to show it. do you remember the first time? the day you win battle of the charts. [laughter] mark: kelly did brilliantly and -- to do to do a something different. the discount u.s. oil taken to brent and my vote goes to kelly. that means -- vonnie: we are democratic and we have to go to the control room because i cannot, unlike ua for or other world bodies, i cannot reverse or change might decisions. the control room with a surprise
mark: live from london, i am mark barton. vonnie: from new york, i am vonnie quinn and this is the european close on bloomberg markets. lululemon is the stock of the hour with shares soaring and carving out a strong first quarter. abigail doolittle has the details. with theendous rally best day since 2008. a big rally for shares. a very strong quarter and analysts cannot find fault with the quarter or guidance. they beat earnings by 20's and sales by 5% and calls, --
earnings by 20% and sales by 5%, and comp. comp growth that 19%. the best quarter going all the way back to 2012. driven by new products. i am not a lululemon shopper. can't butuy the $100 people love them. -- pants but people love them. they are stretching into new geography, strong in asia. firing on all cylinders. vonnie: they are on the hunt for a ceo. maybe they should stick with what they have. >> considering they had a little bit of disruption around management, the company, fundamentals, momentum is keeping going. glenn murphy, the former ceo of the gap, stepping in.
they had unclear about a relationship with a designer. on a conference call, murphy says they were interviewing a number of strong candidates and will present those to the full board next week. it is amazing. strong, even with this executive turmoil. the momentum for this company, i mentioned their positives, price targets are rising across the board. the stock is above the price target. in this chart, we see the price target and the stock has been going up and away. over the last 12 months. the stock at $122 and the price target at $111, the momentum gives going. vonnie: coming from the gap, having experienced. did very well for gap. abigail doolittle, thank you. mark: this is the end of today and the end of the week, stoxx 600 down over the week. the biggest gain today for two
months and the weekly drop was the worst into -- in two. all about politics in italy and spain with new prime ministers. throw in the tariffs donald trump put in on imports of steel and aluminum which affects the eu and other countries. a very geopolitical heavy week. look at the euro against the dollar over the week, up by 1/5 of 1%. tuesday, a big drop in the euro with italian bond yields spiking. that was the day we saw a massive moves up in the two yield. it has come down. things have settled in italy with a new populist government. this is bloomberg. ♪