And the stocks index down after broadcom said it was having a tough time with china trade problems. Up almost another 1 , 1355. 10. Guy today all about broadcom, all about the chips. European stocks are lower. It is the chip stocks. These are down. It is definitely a trade story, as you say. It is about wally about huawei and about what the president is going to do next. Bynt crude popping higher 0. 5 . We did see a russian rate cut today, as anticipated, and they are pointing at more. What is interesting is that the russian ruble went up. Vonnie President Trump says iran responsible for the recent tanker attack. His comments are coming after u. S. Officials released a video they say shows the Islamic Republic was involved in an attack on an oil tanker in the gulf of oman. Also triggering a rush to safety come up with global bond yields heading aware. For more on what all of this could mean for the feds upcoming meeting, we are joined by cameron crise, bloomberg macro strategist. Obviously have some ipos doing extraordinarily well. That comeip stocks every been chip stocks that, every time somebody gives guidance, they are plummeting. Cameron the ipos reflect some sort of irrational exuberance, and in some quarters, unfettered by the trade war stuff. Interest rates are not necessarily too high. Obviously the uncertainty engendered by the trade war is whats weighing on those companies that have an exposure, a direct exposure, to china, which broadcom and the various chips do. Guy so broadcom is the reason for the fed to cut. Is the oil story a reason for the fed to cut . Cameron no, i dont think so. Its a bit odd to think that higher oil prices, which is what weve gotten in the immediate stuff,th of this iran would be a reason to lower Interest Rates. Would beil inflationary on a headlight basis. The magnitude of the move is pretty small. I think it is probably not preempting a diplomatic dispute with monetary policy. Vonnie what ramifications will this geopolitical tension with iran have on the u. S. Market . Will it have any . Last 15, 20 the years, iran has been commonly labeled as a black swan, i potential reason for risk. People are worrying about iran for a long time. Generally speaking, those worries havent materialized. Things have escalated a little bit, but even in mike pompeos press briefing yesterday, his first port of call was to refer to the u. N. Rather than the u. S. Army or the u. S. Navy. So i think theres obviously a lot of moving parts here, a lot of speculation. I tend to think these things get overblown because it is around you sort of fear the worst it is iran and you sort of fear the worst, but generally it doesnt pan out the way nightmares suggest. Guy if the fed doesnt point us towards a july cut, and we are priced for that cut, how big is the reaction . Big because,uld be as you say, we are fully priced for a rate cut in july, nearly priced for another in september, and nearly fully priced for a third by december. So you need nine dots in the dot plot to move lower to project any cut. We heard from nine mothers of have we heard from nine members of the fomc that they are leading that way . No we have not. I would have thought that if the fed does disappoint and signals that they dont have their finger on the rate cut trigger, you would get a reasonable market reaction. That would naturally be led a little bit lower. Vonnie cameron crise, always eliminating. Thank you. Lets check in now on the first word news. Heres kailey leinz. Kailey ubs has put its chief economist on leave after controversial remarks about china. Paul donovan was discussing a rise in Chinese Consumer prices due to mainly sick pigs. He said it matters if you are a chinese pig. Donovan apologized on bloomberg tv yesterday. I issued an unreserved apology on my podcast this morning, and reiterate that i apologize for anyone who took any offense from my remarks, which were clearly not intended to offend. I got it wrong. Imade a mistake, and unwittingly used hugely culturally insensitive language. Andve apologized for that, i gladly take the opportunity to reiterate that apology today. Kailey the trade war maybe taking its toll on industrial economies. Fixed Asset Investment also came in below expectations. The slow down may encourage chinas Central Banks to adjust monetary policy. In the u. K. , frontrunner Boris Johnson will join a debate with rival candidates for Prime Minister this tuesday. Johnson ran up a big lead in the first round of voting this week. Hancock withdrew from the race, not saying he will not saying who he will support. There are talks of rivals joining forces to prevent johnson from winning. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Guy thank you very much indeed. Up next, we are ticking a deep dive into the italian economy. Economist to the Italian Finance Ministry is going to be joining us. This is bloomberg. Vonnie we are waiting for chewys first trade to open between 28 and 30 a share. The ipo priced at 22 a share, so that is a nice gain at the open. Out that thent offering was already up sized. Lets check broader markets now with abigail doolittle. Abigail we are looking at a bit of a risk off tone on this friday to end the trading week. Take a look at the s p 500 and the nasdaq in the u. S. 1 . S p 500 down 3 10 of detect index getting hit a little more. The german dax down 8 10 of 1 . Investors moving out of stocks a little bit on this friday ahead of the weekend. Of course, the fed meeting next week, but weighing on the stocks today, lets take a look at broadcom. We have a two day chart, and we can see this plunge 6 after they cut their fiscal fullyear view by 2 billion. Investors worry that could weigh on other chip stocks. Lets take a look at the Semiconductor Index for the s p 500, the worst on the day, down 3 . However come on the week, we are still looking at gains in the major averages in the u. S. Lets take a look at the weekly moves. Overall on the year, the s p 500 up about 15 . Last week was the best week of the year. Right now, on pace for a second up week in a row. It will be interesting to see whether or not those bulls can hang on for the day. Guy thank you very much indeed. Sayss finance minister the idea of his country selling socalled many bonds is a bad idea socalled mini bonds is a bad idea. The ecb and brussels would agree. Does our next guest agree . Chiefo codogno is the economist and founder of Lc Macro Advisors. Nice to see you. What do you think of the idea . Lorenzo thank you. Well, it is a pretty bad idea. Clearly mr. Draghi said it very clearly. It is forbidden by the treaty because in the euro zone, there is only the euro, or it is debt. So what is the point of issuing mini bonds . It doesnt make sense. The perception is that may be people in government think of it as a sort of spare tire, so preparing for something that could happen in the future. In other words, a kind of currency which is not really currency, but can easily become a currency if the situation deteriorates and italy needs another currency. Is the perception of financial markets. You dont need it, so it must be something else. That is why the market is so focused on this issue right now. Pushes rome too far, do you think the risk rises that this is the kind of direction that the government takes us . Lorenzo i think it is unlikely that the Italian Government takes this as a kind of deliberate policy or strategy. That ifit concerned the situation worsens and becomes difficult to manage, at some point there might be a reaction function which is not a. Ositive one still to come, the risk is pretty small. Vonnie right now there is a reprieve in markets. The italiangerman spread is just 250 basis points. How much does this reprieve last . There are two now camps in government. Tria and the Prime Minister, who want to have a constructive attitude with the commission and European Partners to find a solution, trying to avoid excessive facet procedure and trying to behave in a proper way in terms of the next budget. But then you have the two political leaders which are not sending any such signal, so i think the situation is still pretty difficult. Whether this will lead to an agreement or a compromise with european authorities is still to be seen. Vonnie what would be a good compromise . The eu clearly says extra measures are needed. Some of those who were elected were clearly elected because the people of italy feel like they cant take any extra measures. A tax. Nt take lorenzo we are right now discussing the situation of 2018. That is why italy is in the situation it is today. The debt rule was not respected. These are final assessments. I think italy needs to at least at least offset what was not delivered in 2018, but the real issue here is the structural adjustment that is necessary to put the debt to gdp on a declining path. To do it, and my view there is changingway, which is the counter reform of the pension system, reducing pension spending over the near term. Or the government can decide to introduce other measures that can reduce spending on a structural basis from 2020 onward. That, in my view, is the only way to adjust public finances on a sustainable way. Otherwise we are talking about small bits and pieces, but if we dont tackle the real fundamental issue, which is not only the next year, but the longterm. Guy as vonnie says, bdp is bdp is8 over trading 258 over bunds at the moment. The possibility of cutie has been talked about of qe has been talked about. With that allow room more flexibility with that allow rome more flexibility . How would that change the nature of the debate . Lorenzo if the ecb introduces additional accommodative measures, i thing it would be positive for italy. Hereeep in mind, the room is limited, to some extent. There is also a huge discontinuity at the head of the ecb because not only is draghi stepping down as president of the ecb, but also the executive council is changing quite a lot. Out of six members, five are to be replaced by the end of this year. I think there is a big shift at the head of the ecb, and it is not clear whether this would produce some kind of discontinuity. Having said that, any policy coming from the ecb that allows a more accommodative policy but the European Central bank would be welcome, and would certainly be positive for italy. The issue, as you mentioned, the spread has declined a bit allntly, but the problem is credit spreads around the world have declined quite a lot, and italy is lagging behind. In the past, italy used to watch itself and compare itself with spain. Now it is greece. Even the fiveyear yields in greece have gone below italian ones, meaning that it is the credibility here that is at stake. The the covered government delivers what is promised a mother could be a d opportunity to narrow delivers what is promised, there could be a Good Opportunity to narrow the spread quite substantially. It is really a very key moment right now, and i think we will know the answer in a few days because we have the European Council in a few days, and i think the political decision will be there. Vonnie lorenzo, think you for that. Our thanks to lorenzo codogno, Lc Macro Advisors founder and chief economist. We are waiting for chewy to start trading coming out at between 30st and 32, originally listed for 22 a share. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Our stock of the hour is about to start trading. Online pet retailer chewy raising more than 1 billion. Much andra is with ceo sumit singh in much andra emma chandra its with ceo sumit singh. Emma you priced your shares last night. You raise one billion dollars. What you plan to do with the proceeds . Sumit we will invest in process infrastructure, that kind of thing. Emma what portion will go to service debt . Sumit a portion of that could go to servicing that. Emma you cant tell us how much that would be . Sumit im not aware of it. Emma chewy has been able to capture a big portion of the online pet supply market, but amazon has a bigger proportion, and we are seeing other retailers like walmart and target pushing into this area. How do you plan to maintain that market share and grow it . Sumit theres a lot more growth in front of us. If you look at households in the u. S. , we are about 10 penetrated. We have shown a unique italy to grow unique ability to grow. Recently, we started entering our Prescription Medication offers to our customers. We want to keep veterinarians at the center of the equation. There are so many letters we have yet to fire. Theres a lot more in front of us. Emma so you plan to add services, and that is a big growth area for you. Sumit our Mission Statement is to become a destination for pet parents everywhere. It is part of creating that onestop pet shop. We remain openminded in thinking about a service is tight marketplace as well. Emma theres a lot of opportunity there. Youve seen enormous sales growth by more than 1 billion last year. How do you intend to grow and keep up that pace . Investors will be looking for that. Sumit a 70 billion market, expected to grow at 4 to 5 . Theres not only a secular shift from online. We are stepping right into that mix and creating that share. Are active customers spend more and more the longer they stay with us. Our Health Care Offerings are still mature. We have a lot more to do, a lot more customers to add, and really continue the Value Proposition. Emma it big portion of your sales is through customer renewals and automatic renewals. What portion do you see that growing to . Sumit we continue to grow that, first of all. It provides a pretty double revenue stream and has grown. Rom the low 60s we will continue to add assortment, help our customers build baskets, look at adjacencies that come from new verticals we are locking, and that is how that number stays healthy. Emma a lot of companies are now moving to improve their service. How long can service be a differentiating factor . Sumit if you think about this category, pets is the only category where a customer refers to themselves as a pet parent. Service is fundamentally important, and we have it because we wanted it, not because we need it. We constantly invest in building and learning training and develop. Theres a Value Proposition for customers and investors in the company. Chewy,umit singh, ceo of thank you for joining us. Guy thank you very much indeed. Interesting interview. Still ahead, chip stocks really under pressure. Broadcoms call last night really downbeat, talking about the trade war. We will talk about what this means for the company and the sector, and how we should read it in the light of the geopolitical tensions. All of that coming up. This is bloomberg. Vonnie live from new york, im vonnie quinn. Quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets catch up with the first word news. Heres kailey leinz. Kailey President Trump says iran was responsible for the attacks on oil tankers near the persian gulf this week. He vows that the key shipping lane in the region will not be closed. The president told fox news, iran did it, and we know they it. T did iran denies the allegations. A warning from the International Energy agency. It says that oil supply will swamp demand next year and put more pressure on opec, forecasting there will be a surge in output thanks to u. S. Shale and oil startups in brazil, norway and canada. New economic figures suggest u. S. Consumers spending is healthy enough to limit the case for a fed rate cut. Aprils number was revised from a declined to a gain. 11 of the 13 major categories increased, led by nonstore retailers such as amazon. And hong kong, the government may pause work on the controversial extradition bill that led to violent protests. A number of options are being considered to defuse the situation. A paper reports some executive members believe the government should still fast pack she still fast track the bill. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Vonnie thank you. Broadcom has blamed the trade war between the u. S. And china for cuts in its annual forecast. Shares of the chipmaker are down more than 6 now. We are joined by blumberg analyst. Nce senior all of the chip stocks are dragged lower by what qualcomm said. Is it a bit of an overreaction, given the President Trump is saying now it doesnt matter if xi agrees to a meeting at the g20 . Guest one part of it is the trade deal. One part of it is china. One part of it is what way. Broadcom is relatively conservative, so one could argue they are throwing the kitchen sink at it, and this is potentially a low point in the developing cycle. We think that any hopes of a secondhalf recovery is now dashed. Even before this trade drama handsets,e had the the phone market not being so healthy. We had china macro fears. The trade drama only augmented it, and huawei way was another cap to it. These are all parts to the puzzle, but we think that not all is healthy just because we get a trade deal. We have to sort of parse it a little bit. We think 2020 might be a better way of looking at it than 2019. Is this an admission that companies and analysts have underestimated the potential that the president is going to go after this while way story more aggressively, the trade story more aggressively than anybody anticipated . Reporter absolutely. The fact that broadcom sales are 8 lower for 2019 with half the year done, and he didnt see this 90 days ago, is an indication of how bad this is, number one. Number two is that all of the actions thus far in the trade drama have all been onesided. The 10 level, the 20 level, and the huawei ban have all come from the united states. If there are any retaliatory measures, which is what we have been worried about, then the second half 2019 story could get worse. Vonnie this is, at the moment, isolated to the chip sector. Could there be contagion if this continues . Anand that is a fantastic question. Chips are the tip of the spear. We see it first in heavy magnitude. The fact that chips are seeing it now is an indication of the supply chain hitting the brakes, effectively. Potentially anticipating a slowdown in three q and four q. This is not isolated to the Semiconductor Industry by any stretch. Vonnie Bloomberg Intelligence Senior Analyst anand srinivasan, thank you. President trump now says it does not matter if president xi agrees to meet him next month because the u. S. Is collecting billions of dollars in tariffs on goods from the country. For more on how investors are reacting, lets bring in denise chisholm. Our clients calling you and telling you ive got to get out of semiconductors and anything related to china . Guest i think theres obvious fears in the market. Spike the fact that theres always idiosyncratic risk despite the fact that theres always idiosyncratic risk, as much as we havent seen this magnitude of tariff increase, we have seen a lot of history of tariffs overall, and we do have a global trade data to study. As much as it might be a little bit different, that can inform our views of the market level. What you see is the opposite of what you would expect if you could predict that global trade was going to contract. It actually has the highest of any market return quartile you can study. That means that your take away as an investor tells you one of three things. Either the market has the ability and does discounted in advance, that there could be potential stimulus that actually offsets it, or that there are more tailwinds then use expect that you need to add up. You always have to keep an eye on final demand come about think that that discounting mechanism in the market is something we are doing a lot of work on, and you saw a pretty severe defensive rotation during the fourth quarter, where sectors like Consumer Staples and utilities outperformed by such a magnitude that they are at some of the highest valuation levels weve seen since the 1970s. That usually predicts with pretty good odds a strong cyclical rotation, so i think that we need to keep our eye on the fact that the market can discount these things in advance. Vonnie as you say, certain of those Industries Year to date have performed extra nearly well. Then you look at the ones that havent, and it is thing like drug retailers, department stores, food retail, oil and gas. It doesnt feel like those would be attractive prospects right now, but at the same time, are investors beginning to look at those again . I think investors are sort of looking at everything right now. I think they are redefining their views, how to invest in uncertainty. I think investors are sorti think a lot of people are mindful of valuation levels given the volatility we have seen, certainly over the last decade. When you look at that, that buy the dip mentality has been questioned over time, but in hindsight, you actually wanted to evaluate and do the work on sectors where you have seen the discounting mechanism come in with valuation levels. Cut lift a fed rate all boats, or do we treat them differently . Denise we dont know if the fed is going to cut rates. Historically, the bigger indicator has not been growth of the unemployment rate. The fed is just a group of individuals who can change through time. They actually have more of a night on inflation. Despite in balances more of a on inflation. Despite imbalances, it actually doubles your returns during that sixmonth period to about 10 , but then it really bifurcate. About half the time, fed stimulus is either enough or tailwinds are sufficient to keep us out of a recession. About half the time, we end up in a recession. Outside of a recession from the first fed cut over the next 12 months, you see 100 historic odds of an advancing market with an average return of about 20 , with more cyclical sectors leading like Consumer Discretionary, financials, technology, and industrials. Guy is this 1995 again . Denise well, i dont know if he set up is that similar. Im not really a big analog person because i think it is always different, and we have more moving pieces this time. Certainly the things that i see different on the data in the market are the defensive valuations and such levels that we havent seen since the 1970s. The relative valuation of highrisk stocks is as cheap as we have seen in the last decade as well. As much as we might went to thing about the fed cutting Interest Rates and that being similar, i dont see a lot of other moving parts similar as well. That is even when you look after the fed cut Interest Rates. You see sector odds aggregated around 50 , so there is no true pattern, even when you study history. Vonnie are there any pockets of the market where you look and feel concern, feel a little bit anxious that maybe, if there were to be a bit of a selloff, it wouldnt necessarily be orderly . Well, i think it is hard to say what would be orderly or not. Usually when i look at the data, i extend my time horizon, so i think i use those dips to evaluate more data and extend the time horizon took 91018 months to the time horizon to nine to 18 months. Consumer discretionary sector actually has pretty high odds, at least historically speaking, of the risk reward being positive. Guy what do you make of todays retail sales number . Denise i think it was a bounce that we have certainly seen off of a lower base. It is an interesting part, and people are talking about whether or not it is going to change that hads mind. When i look change the feds mine. Look in the early year, we saw retail sales contract. As much as you would think as an investor that should give you pause about both the market and Consumer Discretionary sector, is directly the sector, which actually outperforms half the time, outperforms 90 of the time in the year following a contraction of retail sales, so it actually might have been a bullish signal for the Consumer Discretionary sector overall. Guy we will leave their. Denise chisholm, fidelity had a sector strategy, thank you for joining us fidelity head of sector strategy, thank you for joining us. It will be interesting to see how big of an upside we actually get. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Geopolitical tensions rising in the persian gulf, and we are seeing a bit of a rush to safety. 56, justear at 2. 08 office low for the year. Year. Brian, lets start with the indications we are getting on allete inflation is doing on what inflation is doing. Today we got michigan inflation lower than the previous month. 10 year inflation was 2. 2 . Explain why that is significant. Brian it is the lowest indicator ever for that, and that is a significant because this big drop is actually even lower than they wanted to be. I think that is going to raise a lot of interesting questions for the meeting because they are so focused on inflation, it feels like. They take the labor market for granted. It is strong. Retail sales came in good. But what about this Inflation Expectation . If we are expecting low inflation for the next five to 10 years, they may feel like it changed peoples minds. Guy what will the fed make of the broadcom warning . This is a direct result of what is happening with the trade story, a direct result of huawei being targeted. This is how the feedback loop is going to work back into the u. S. Economy. Brian i definitely think they will take that into consideration. I think it is too early to say for the fed, at least, what the effect of the trade war is going to be. I think they are really going to try to take their time and weigh it out and see what happens. There is the g20 meeting later this month. Anything could happen. When you are looking at bond yields, they really took a nosedive after the mexican tariffs when effect. We saw how quickly those were tabled. I think fed officials are going to be as patient as they can on the trade front. Gold is being talked about as the trade. Old hooter jones saying paul saying it may be time for a fed move next week. Brian i think next week is too soon. They had this whole blackout period, so they havent had any time to prep the markets. The markets really think july is when they do it because they havent prepped it for june. I just feel like it is really soon. The fed is really going to try to keep its options open, although in the past, we have seen them sort of capitulate to markets and go from two expected rate cuts in march to zero. I think it will be a really interesting to see if they confirm to the markets dovish expectations because there has been a really sharp move over the past several weeks. Vonnie brian, thank you. That is brian chappatta, Bloomberg Opinion columnist. Guy time now for a Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Lets kick things off with india, planning to raise tariffs on a number of products imported from the united states. Duties will be imposed just days before a visit by the u. S. Secondary estate mike pompeo. The products affected reportedly walnuts, andds, types of legumes. Earlier this month, President Trump ended trade concessions goods7 billion worth of that india ships to the united states. Facebook has reportedly lined up some bigname investors to back the digital coin it is unveiling next week. According to the wall street journal, a dozen companies, including visa, mastercard, paypal, and uber will invest around 10 million each in a consortium and fund the creation of the coin. And it may be friday afternoon, but it is the end of an era the london metal exchange. New rules will prohibit floor traders from drinking during the workday. The exchange is trying to clean image. Industrys the floor traders are responsible for setting Global Benchmark prices for individual metals such as copper and aluminum. Flash. Your business vonnie still ahead, have a look at this. Oil prices are continuing to retreat, heading for a weekly decline as the tanker attacks in the middle east were overshadowed by a deepening trade war and falling u. S. Stock piles. More on futures in focus, next. Remember, viewers can direct with the charts shown on gtv to catch up on key analysis and save charts for future reference. This is bloomberg. Guy welcome back. It bit of breaking news coming out of airbus. Forume the paris air taking place today ahead of the air on monday. Airbus is said to be connecting a review of its main plant in an effort to cut costs. Airbus stock is coming up on the back of this. Four main plants, the main one out in to lose out in toulouse. Bring costsoking to down. They are also working on ways to try and improve efficiency as well, trying to up some of the rates, particularly in the narrow bodies. A lot more coverage coming up. We are going to be at the Paris Air Show on monday, talking to all of the main executives. Time now for futures and focus. Joining us now futures in focus. Joining us now from the cme is bobby a chino is bob iacc hino. Are you surprised you are not seeing a bigger pickup and what we are getting out of the gulf . Bob it is very easy for me to say that i am not surprised, simply from the perspective of the structure of the attacks seems to be more like iran waving their hands, saying Pay Attention to us, rather than it being some kind of actual structural disruption to the supply of crude oil. Even if that structural disruption happened, it would have to be at a much larger scale, closer to the straits of hormuz rather than in the gulf of oman, and there would have to be more damage to affect the oversupply matching up with the potentially much slower demand we have seen. Pile on top of that that the u. S. Has not started enforcing much of the iranian sanctions, despite the tough talks. You saw india get a pretty large shipment of crude oil from iran. From 12. 2 Million Barrels a day last week to 12. 3 Million Barrels, so the oversupply is there. Extended has not yet production cuts, so from a pure demand and supply perspective, we are priced correctly given the risks. 3. 48. Old is trading are you a buyer or a seller . With gold. Either we missed a little bit of the jump this morning, but i think you will see a lot of activity in gold early friday from the london session to the u. S. Session as these middle eastern tensions fester. We dont know if they are going to accelerate over the weekend or be pacified, so that is kind of the issue with gold here. Guy great to get your take. Have a great weekend. Thank you for joining us, bob iaccino with past trading partners. Friday. Time for etf advocates of passive investing get another reason to slam active investing. Passive could actually be a big athanasios. Tell us why. Think this sort of brings up a new concern for regulators on active. Theres really two key drivers here. One is the cost repaying as an active manager, and the other is transparency. Why i think passive is going to emerge positive from li from this is cost. Depend on what share cost you bought, there are now etfs that do similar strategy for 29 basis points year on year. I think theres going to be a bigger focus towards passive as we see some of those assets shift over. Guy when the lockout finally finishes, your expectation would be that that money finds its way into passive funds. Athanasios it is. Typically, whenever there is difficulty with active managers, whether it is the market going down or failing to protect investors, when that money does get redeployed, it is all most backlash towards the active fund. Our thanks to athanasios psarofagis. Open is indicated to 38, so it and continues to go higher and higher. The initial offering was under he priced at 22. Was initially priced at 22. We are in the red for all major indices, fractionally except for the nasdaq, down 4 10 of 1 onchip stocks. The european close is coming up next. This is bloomberg. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Guy friday afternoon. 30 minutes left in the european trading day. From london, im guy johnson. Vonnie in new york, im vonnie quinn. This is the european close on bloomberg markets. Guy lets take a look at the european markets as we approach the end of the week. Stocks are trading lower. Technology is down the most. That is the broadcom effect. Brent crude up by 1. 4 . Pay attention to that. The russians cut rates today. The ruble rose, a bit of a surprise. We did see the governor hinting that there could be more cuts to come. Vonnie in the u. S. , we are also lower. Similar story, particularly for the stocks. Just one of those Semiconductor Stocks positive. Everything else negative on the broadcom morning, dragging down the s p 500 by about 2 10 of 1 . Facebook is the stock in the green today, up 2 . We are waiting for it to unveil its cryptocurrency next week