Ari Shapiro

Between his trip to Europe last week and his travels to Africa next week, President Obama is doing a lot of gift exchanges with foreign leaders.

In the past, he has gotten mixed reviews. Four years ago, he was panned for giving the queen of England an iPod. Other presents have gone over better. But the president does not personally select these gifts — a staffer does.

President Obama always intended to talk about spying this weekend. But not like this.

He's getting to know China's new leader at a sprawling estate in the Southern California desert this weekend, but domestic controversies have followed him there.

The president veered off his talking points Friday to spend more than 10 minutes defending a pair of massive surveillance operations that the media recently disclosed.

President Obama and Chinese President Xi Jinping are meeting this weekend at Sunnylands, an exclusive retreat center near Palm Springs, Calif. On top of 11 lakes, a private golf course and a world-renowned art collection, the compound holds more history than even a 200-acre estate should be able to contain. Obama is the eighth U.S. president to have spent time there. Frank Sinatra married his fourth wife there.

President Obama arrives in Rancho Mirage, Calif., on Friday to spend two days with China's new president, Xi Jinping, at a 200-acre estate called Sunnylands.

The house at Sunnylands is built of lava stone. The private golf course includes a pink pagoda. And if the presidents feel like fishing in one of the property's 11 lakes, they will hardly be the first world leaders to dip a line in the water.

It has been a good week for economic news. Here's a quick rundown of the positive signs: Home prices showed their best gains in seven years. Consumer confidence hit a five-year high. The stock market set a new record. All just this week.

"We're seeing progress," President Obama said in the White House Rose Garden on Friday morning, "and the economy is starting to pick up steam. The gears are starting to turn again, and we're getting some traction."

You could tell from the tone of his voice that he was leading up to a "but."

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