vonnie: u.s. stocks a little directionless this friday after sincebest friday rally 2011. european stocks are headed for their best week in a year. abigail doolittle is with us with breaking news on consumer sentiment. , the are looking at a beat index for the preliminary rating for the month of february came in at 91.9, calling for a reading of 99.5. this by the recent volatility we have had in the stock market that is not affecting consumer sentiment at all. not a lot of influence on the major averages. we are looking directionless for the major averages. the nasdaq about even.

500 lower on the week. onare looking at big gains pace for the best week since 2013 and the dow on pace for its best week since 2011. two weeks of selling pressure led to this current week of big gains. let's take a look at the daily moves. massive the days of selling pressure. days in a row. will it continue? where we have contrast, earnings movers. shares are trading higher after the company did beat estimates. shares higher than they have been but a bullish tone.

both of these companies put up disappointing reports. shake shack, a bit conservative. i want to highlight something we have been talking about where we have big gains for stocks and some jitters in the credit mark et. flows, weed weekly see lots of inflows, the risk on , the last three weeks we have seen massive outflows for high-yield credit, suggesting even though we have these gains for stocks on the week, there could be volatility ahead. risinguropean stocks until the end of the friday equity session. up by 9/10 of 1%.

all 19 industry groups are gaining today. .8%.ve risen i two last week we fell by 5%. it does in the three-week losing run. let's get to some corporate stories. named a number two in command, the chief competitive officer named coo putting it in line to succeed come off rating -- operating credit beat estimates sending shares higher. air france getting hammered today down by 7% to accelerate capacity increases and step up cost cut's to defend its share

of air market that is becoming flooded with discount rivals. it will boost seeding as much as the low-costombat challenge and cope with rising fuel costs. weaker than estimated 42%. with that.in it is leading the race to feed ground. in theing a slump, sales infant nutrition unit climbed 10% last year. the rest of asia, doubled its market share in baby food. increasingly cut out the middleman establishing direct sales to consumers. it will rise at a double-digit growth,t follows 14%

above the company target. up by 1.5%. vonnie: thank you for that. for more on this week's market action we are joined by the senior strategist for bloomberg intelligence, visiting us in new york this week, stationed all over the world. markets backwards. were there any lessons learned? >> it echoes back. there is a lifecycle in the markets just like stocks. you go from value when things are busted, you move into growth mode and then momentum. room forum you have no disappointments. in this case we had rising rates in europe. we had a little bit of a slow start to the earnings reporting.

that can protect the momentum driven market quickly. prick the momentum driven market quickly. that is a stable story now. vonnie: now it is a more fundamentally driven market. >> exactly. vonnie: there are still worries, the twin deficits, geopolitical risk in europe. >> if you look at the higher rate situation, it is part and parcel. i think there is a fundamental base from our work about inflation expectations building. you have talked a lot about that and it is real. from a bottom-up perspective. look at transportation costs. they are rising across all sorts of different aspects. that feeds through the supply system and employment is robust.

we feel there is an inflection .oint within that context if rates are modestly moving up, we do not think there is anything too scary but it makes sense fundamentally, you have to have earnings to drive the marketplace. mark: what traditionally happens? you have looked over the last , can equities an increaseeather in rates? >> it is an interesting thing. the old phrase, don't fight the fed or the ecb as far as that goes, the raising rate is problematic when it is driven by a central bank starting to clamp on the brakes. we don't have that. we do have the removal of the

punch bowl, but it is not an aggressive central bank monetary policy tightening. what you end up with is a valuation that can't quite make the run that it had over the past couple of years, a reliance on earnings. we do you see earnings? where'd you see sectors in companies and take advantage of modestly higher interest rates, such as financials where we have in europe ande nonexistence of revenue growth? that is a possibility the -- that starts to become a reality. mark: what about earnings? within the european space right now, separately to that, who is on a country basis? quitenings started out

poor in europe. we have started to shift more favorable, we are saying this come through. interesting from a country perspective, this is playing through for the u.k., for france, for switzerland. the disappointment has been sweden. that is a canary in the coal mine. it comes before anybody else. huge on industrials and financial exposure. we expect quite robust earnings. we have had ericsson, we have had a couple of banks with their housing market specific issues

be problematic and sweden has been disappointing, frankly. vonnie: i want to get your thoughts before we have to let you go. , 7042. a chart here portion, aeld phenomenal amount of money. also, corporate funds and regular funds. ?oes this continue and build can this create a feedback loop? >> if we do have an inflection in rates it would make sense as rates go up that creates a problem for price return in fixed income on bonds and you some selling from those funds. we are still in a momentum phase? >> it may be at the inflection

where it goes the other way. >> thank you. now on the in bloomberg first word news. >> mitt romney has made it official. he is running for the senate from utah. values tos to bring washington and replace orrin hatch, who is retiring. approving a broad immigration bill are all but dead. the senate rejected a white house backed plan to deal with 1.8 million young undocumented immigrants. there may be an attempt to temporarily keep them from being deported. president trump has headed to florida bar he will meet with some of the bravest people on earth, the president will meet with the families of the victims of the school shooting. president trump is seen working

on many fronts but did not give many specifics. sales barely rose, well below the forecast. the brexit vote in 2016 triggered a spike in inflation. global news 24 hours a day powered by 2700 journalists and 120 countries. this is bloomberg. vonnie: infrastructure and industry. plan, the ceo of -- national location vocation investors. this is bloomberg. ♪

mark: live from london, i'm mark barton. vonnie: from new york, i'm vonnie quinn. senate republicans allow a plan to temporarily extend deportation for dreamers. our next guest says washington's failure to deal with this issue is taking a toll on his industry. the national association of manufacturers says for manufacturers getting immigration reform passed and finding a solution is a moral and economic issue. we cannot rob people of the only communities they know and we cannot rob our country some of the hardest working people we know. joins me.s these people are necessary to the u.s. economy. jay: they are certainly necessary but i would go back to

the other part of that statement. this is a moral issue. this is not who we are as americans. the dreamers and their family members have been a part of the soul of this country. we have an obligation to get this done and there is an economic comparative. i don't want to short change that. many dreamers are workers in our manufacturing operations. they are part of the retail industry. they are part of industry all over this country. we need to look at it from both angles. you see aere do compromise? manufacturers are vocal about saying they want this. he isesident has said happy to sort things out for dreamers. there are conditions. what would be the thing for you that you could give on? about all we are all of the above. i have been frustrated.

divide overpartisan the issue of national security most since when have we not wanted our borders secure? the president has called for making sure that our borders are secure. i don't care what that looks like. he has talked about a wall. others have talked about technological security measures. let's not have that be a part of the disagreement here. let's not let that be hung up. vonnie: competition from manufacturing is coming from digital than it is from companies going away. can president trump deliver on the promising that promises to bring back manufacturing. now are in a two-week state of manufacturing

tour. we are talking about the incredible opportunities that have been given. that now will translate into investment and jobs, and higher pay. quite frankly we have an obligation to keep our word to the american people land to those elected officials who voted for those difficult political options. vonnie: do they intend on creating that? that brings me to my next point. there is a bubble around them now. the first wave of brexit layoffs, are you concerned that will counteract the benefits from tax reform and the idea manufacturers will want to create? if there are protectionist measures why would other countries by american goods? jay: that is a big concern.

we are a country of immigrants, a country of trade. any fractures want to be able to sell our markets to our customers. 95% of the world's customers live outside of the united states. we are watching carefully these discussions going on. the result of any changes to our existing agreements, let's say .afta result in a win win there are pathways forward. there is a lot of imbalance in our trading system now. when we have countries like china who are stealing intellectual property, that has to be addressed. if we have dumping of goods into our country, that is an issue that has to be addressed. trade has to be on a fair and level playing field. vonnie: are you hoping the weaker dollar will make up for trade lost? jay: no. i don't engage in that

speculation. ofmatters to reduce the cost doing business. we have done that with taxes and regulations. that number will balloon to 2 million by 2025. we have a lot of opportunity. those challenges are in the way. vonnie: that is a ray of hope. let's hope the training gets in their. -- in there. timmons of the national association of manufacturers. mark. mark: fantastic interview. even as chief executive joins io'sto discuss ray dall short on the country. this is bloomberg. ♪

mark: this is bloomberg markets from london. vonnie: from new york, i'm vonnie quinn. julie hyman, thank you. julie: we are seeing a shift happening now as u.s. interest rates creep toward 3%. that could be a billion dollars of etf's. when you are talking about hundreds of billions, specifically $300 billion, that is your estimate. in which etf's are we talking about? >> several categories whose whole being were built on the back of low rates. this huge thirst for yield has been a trend. dividend stocks of 160 billion. mlps have 20 billion. then you have multi-asset income

mortgage rates. those have another 10. we have seen some other examples of rates rising to study this. the question is how much above 3% does it go because you can see a lot of assets moving. you can multiply it by two or three mutual funds. again, some of the assets might stick. if the economy is improving maybe we could see some appetite for high-yield. how does that play out? 4.5%. median yield is ,f you can get 3% into treasury longer-term investors will bail on that trade. junk wants are popular trading. that will give some assets. some retail investors just don't want to hold junk debt unless

they have to. julie: one of the areas that could be the most sticky is the dividends. >> people like stocks that pay dividends. those are the dividend grower etf's. high dividend etf's, you could see shaking this. etf'sre are high dividend and then those that tried to buy companies that will be growing. >> they have increased dividends the past 20 years. those old big companies, you are not buying that for the yield. you buy the high dividend ones for the yield. the median yield is 2.8%. it is already below what you can get with treasury. i think those are the least vulnerable. >> a lot more to come potentially. thank you.

vonnie: what's going on and european markets? look.let's have a let's check out the markets today both here and in the united states, as you can see right there we have gains across the board. volatility is down. as best week for u.s. stocks measured by the s&p 500 in five years. weekw that 5% decline last , the biggest weekly fall into years. the close is one hour away in europe. this is bloomberg. ♪

vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. mark: live in london, i'm mark barton. this is bloomberg markets. vonnie: stocks continuing to

fluctuate on wall street, a solid week of gains. a few weeks of turmoil. does that mean we are in for some more gains from here. gains.ould see more spirits, it is alive and well. our spirit animal is probably the chihuahua. it runs around in circles. bark is worst than its by. -- worse than its by. we are bouncing around, basically being buffeted by different data points. you get a good idea of what

is going on around the country. do you feel like the rest of the country is in lockstep with big cities? obviously it is not. see?do you is aat i'm saying, this country and economy comprised of different micro-economies. there are different drivers and different regions. as we have seen in the beige increases are seeing and wages. they are participating at different levels. we are seeing a general tide rising. is forf the expectation

interest rates to rise, what is the theme for the equity markets? to be expecting is as the 10 year yield rises, based on concerns, we are going to see equities. it is likely going to be temporary in nature. within the equities space what would you recommend? >> in this environment where we still have a good-looking it yield curve we can certainly have value exposure. that makes sense in this environment. cyclical should work if the economy continues to grow. there is one area i'm excited about in the growth space.

technology. technology has a lot of drivers moving it forward. in the u.s. ment vonnie: what about the arrest of the economy with the amount of money that is being spent? >> certainly cyclical should benefit in this environment. we are going to see deficits grow and there is going to be more bonds to move out as well as based on balancing normalization. we haven't even talked about balancing normalization. that is a bigger risk than rate hikes. it could have the potential to drive up the yield. vonnie: what would drive it up at a faster pace? there are increases coming. the question is whether there

are three or four this year. >> the shock will come from more bonds being in the market. i would expect the fed to keep it at three rates. to see not be surprised the fed altar janet yellen's plans. we just saw a transcript released that shows jay powell .as fairly reluctant janet yellen was a big proponent but he was not as thrilled about it and certainly worried about the size of the fed balance sheet. moreuld see it target balance sheet normalization. that would be more bonds in the marketplace, more supply with the same level of demand. this could be complicated by protectionism.

we would have tariffs on to goods from china. the response might not be tariffs. it might be we are not going to buy as many of your bonds. situationcomplicated where there are potentially a ,ariety of different sources forces that could drive up yields. vonnie: thank you for joining us. chief global market strategist at invesco. mark: let's check in with taylor riggs with more on -- from new york. >> new-home construction rose to the highest level since october 2016. to almostarts were up 3 million. the big boon was in apartment buildings. there is a report donald trump had a next her marital affair with a former playboy model. used payoffs to

keep news out of the media. the white house calls it fake news. consumer sentiment rose to the in 2004.vel tax cut's and a strong job market help americans shrug off the volatility. global news powered by 2700 journalists and analysts in 120 countries. this is bloomberg. mark: coming up on bloomberg goes high-tech. andpush into east courts danger tracking. -sports and danger tracking. this is bloomberg. ♪

passed away and leave money in a bank there are a number of ways they can achieve funds even if we don't leave instructions. with bitcoin it can be harder. an american software engineer was left with the knowledge his son was an early minor of bitcoin. a number of companies offer a level of protection against this scenario by securing the password needed to access a bitcoin wallet or by hosting the wallet itself remotely, or selling usb drives to make it possible to store a virtual wallet in a physical wallets. it is a good time to consider

whether the right protections are in place for bitcoin investments. updates at tech talk. -- tick tock. on twitter,ing live live from london, i'm mark artan. vonnie: this is bloomberg markets. thes time for a stock of hour. shares falling after the company said it would increase after it would defend its market share. that may mean prices will fall to the airline. joining us is taylor riggs. by 4%g to boost capacity this year with rising supply, it usually means fares will go down. this to go ong the offensive and defend their market share.

2018 in the context prices, going on the offensive, boosting that is something they are committed to. some competitors we are looking air, the first base in france. norwegian air is a long-haul discounter. partnershipsing at as well. they have a partnership with forge an atlantic. they say that is their answer and their way to attack the discount carriers. how big aie: -- mark: role does that play in their cost-cutting assets? part is interesting.

oil prices are expected to rise. aey are looking at four and half billion dollars euro annually. they think prices will go up versus last year when they fail. hour.: great stock of the industry leaders coming together in beverly hills, california, the all-star tech summit. corey jones is there, joined by one of the league's top executives. i am. the all-star weekend is a big deal wherever it goes. especially here. i want to ask about how the league business is doing. it is growing and changing a lot of ways. >> it is as good as it has ever

been. when you look at the metrics, attendance is up. we have set records for the last three years straight. we are on pace for another record attendance. >> what is the key to that? we have had -- we are back to where we were in the 1980's. you had to sell -- we have had the cavaliers and the warriors, we might end up there again. the key to getting attendance up? >> the game, the amount of talent on the court is better than we have ever seen. the houston rockets, the toronto raptors, they are right there, no can now. , even teams that thereming up behind that,

are talented players everyone wants to see. there is talent on every team. when all of these teams play in these markets people have an appetite to want to see them. our teams are doing an amazing job in arena experience. making it -- premium seating, the way customers come in, they have a nice meal and sit courtside. dollars -- of >> a fancy restaurant for the fancy us -- fanciest seeds. fans, we are investing in these large jumbotron screens. even if you are the furthest house youat in the are part of the live experience.

they make you feel like you are close. i was there for opening night. it is unbelievable, the technology they have incorporated. the crowdsourcing on the temperature control, if you are feeling cool, and enough people say turn up the heat, all of a sudden the temperature rises. those are the kinds of things. if only that worked with shooting guards. however there has been this issue of injuries. arguably one of the most important franchises in basketball, in value. that has got to hurt the business of the mba. >> sure. we have had high profile incidences of injuries this year.

, they ares in general not up. in the case of the next and teammates gives other -- >> you can't replace a player like them. >> you have done an interesting job lengthening the season. from the business perspective, is there an argument to have fewer games so players can stay healthier? >> there is no evidence that suggests if we were to do fewer games, that is what is driving player injury. what we have done is look -- we have eliminated [inaudible] we have reduced the number of games. for the first time in history we in five had four games

nights. the players are feeling -- they appreciate that. it gives bodies more times to rest. we continue to study this issue. we can do to reduce injuries, we are going to. we appreciate your time. back to you. vonnie: have a great time and thank you for that wonderful interview. over ironman.ove the black panther is ready to roar. this is bloomberg. ♪ >> i waited my entire life. the world is over. i'm going to burn it all. ♪

mark: live from london, i mark barton. vonnie: i'm in new york city. the metlife tilting, this is bloomberg markets. time for the latest business flash in the news now. the low-cost clothing, part of walmart's push to make an apparel business more streamlined. the full-year forecast with the largest maker of farm equipment forecasting a 25% increase in net revenues due to a slump in prices.

lloyd blankfein used to be the highest-paid ceo on wall street. now he has fallen behind his competitors for the second year in a row. that is your latest bloomberg business flash. mark: let's talk black panther. headed for a massive debut weekend, poised to be among the grossing of the year. let's talk numbers first. what box office are we talking about here? >> very big box office. potentially as high as over 200 million. disney has been saying when hundred 50 million over four days, a holiday weekend in the

u.s.. taking the more conservative in. they are going to be breaking some records. as you alluded to, how will this transfer overseas? will china relate to it? they have competing movies that may be more popular and that will determine if it crosses that fabled $1 billion mark. >> you have heard the word game changer. for theis this film global film industry? a allis unusual to have largely black cast in leading roles in such a big budget movie and such a prominent movie for hollywood, with the global 9,ease in china march

critics have praised it. 100% on rotten tomatoes. all that is great for it. it is definitely in the u.s. at least for the african-american community and other minorities, it is more than just another superhero movie, and hollywood there were preview shows, talking to people, people have flown into l.a. and other cities to see the film with family. it is much more than just a movie, it is a celebration of african culture, black heritage. that is where the power for this film is going to come from to take it to another level. vonnie: it is phenomenally culturally, below the kitty relevant -- politically

relevant. take theas to superhero box. how will disney have done when it comes to the superhero story of it all? >> disney has been the best in hollywood at establishing characters, diversifying the characters it has in front of an audience and i don't expect them to do any differently this time. in fact they are bringing in more diverse audience that would probably not go see a superhero movie because they want to see the black panther. >> will this change the state of the industry? we spoke to tightly -- tyler perry. >> african-american people are a huge market that has been

underserved. there is this surge of people realizing and understanding african-americans are consuming a lot of content. vonnie: there is the side of it, more consumption perhaps. will it change the outlook of the industry? change tont has to tap into new consumers? >> the data is african-american they overamericans, index when it comes to consumption of movies and they are a growing part of the market. u.s. moviegoing is at a generational low. that is something that the entertainment industry has to top -- tap into, investing money in content that appeals to a broad range of people.

this myth that these films don't sell abroad, a smaller market but i think we are seeing that is not true. piece.reat it is the european close next. 35 minutes away from the end of the friday session. pricing for the fourth day in five. bloomberg. ♪ .

♪ mark: 11:00 a.m. in london -- in new york, from our european headquarters, i am mark barton. vonnie: from new york, i am

vonnie quinn. this is the european close on bloomberg markets. ♪ mark: here are the top stories we are covering, european stocks rise, their best week in one year with u.s. shares higher after fluctuating earlier. today, negotiators want more clarity from britain on what kind of relationship it wants with e.u. after brexit. chiefk with the siemens executive joe kaeser about ray galliano -- rate elio -- ray dalio's sure on the company. after a worse w