ideas, new products could do well to bring the gucci brand back to higher growth.y do not have further major opportunities to expand their retail network. >> the ideal situation is that they want to give more autonomy to the individual brands. they want to grow the smaller brands. has to be recognized as the champion in growing smaller brands. if you think about that, all the brands, excluding gucci, were providing one percent of group profits. toer, they provided close one third. this track record is far and above other luxury goods groups. have their shares of issues. we think the organization should be supportive of this dynamics and getting more synergies to the smaller brands so they can continue to produce value. these are the two major challenges. they must continue to transform? brands into stars. >> it seems there are more into sports wear. i was quite surprised when i heard the ceos say this. >> i would get very concerned about that. i think investors would possibly share that view. g has to showkerin that it can create value through puma. is a very diffi

compare that to gucci or louis vuitton, which are about 1000-2000.e copying some clever tricks that many of these older, grander european houses played in the past. catwalks,nd, runway but products cheaper. i wear a michael cores watch. what did it cost me? 200 pounds. guess -- >> i guess the european ones want to position themselves at the very high-end. >> we are seeing gucci scaling back, louis vuitton scaling back. they are trying to reduce their logos and taking away retail space. they became too popular for their own good. michael kors is pushing, trying to expand. they are managing to fill that open space, the void that has been left in terms of a price point. the luxury houses such as mulberry and gucci are very expensive. they can fill that middle ground. we are seeing a tactic deployed by the luxury houses. the question is, michael kors, will they be a victim of its own success? alarm bells are ringing. remember where burberry was. that check became too popular. it is happening to gucci and louis vuitton right now. they are scaling back on

he is the man behind gucci. and mary to selma hijacked. -- salma hayek. finally, in pop, they will not let it go. disney is driving kids and moms crazy. we will kick it off with what everyone is talking about. could it bp is with carl icahn and ebay? >> an agreement has been reached with carl icahn, ending the fight before the shareholders meeting. icahn has been pushing to separate ebay from paypal. >> i'm well aware of carl icahn push to separate ebay from paypal. >> we believe it is a no-brainer that paypal should be spun off. i do not think in this case that they should be together. there is no reason they should be together in our opinion. in fact, it would be helped by a management team that is separate and can go their own way. i think the multiple would go up dramatically, and also, the health of the company would be better. this is going to be an argument. >> oh, yes. his interviews over the phone and daily letters to ebay shareholders have made his mission abundantly clear to the investing public. he was also not too keen on the leadership of jo

you have gucci, still standing on their own. and then watches and jewelry.em last week. he is 55 and a french man. his heritage is luigi tonn -- vitton.at on -- louis the question, who is going to run it? the --a fell, but by houma fell, but not as much as doinged >> what they are is protecting these brands from the brand. give them two or three years to get on their feet. autumn is when you are going to turnaround, but the tricky brand is the group. control is everything. where they have control, they are delivering that is a critical message. ryan is here covering the crisis. he is here to tell us everything we need to know. broke andre when it have spoke to one russian executive. we have had one view on it it is nearing junk. >> it is nearing job. russia watchers will have anticipated this. it is down to geopolitics. the economic situation was not going -- great going into the conflict. but if you look at the events in ukraine, things are getting more tense. be better -- the rhetoric is getting more pointed than it was before. just yesterday, the secretar

they are behind fashion companies like gucci. mcdonald's is pulling out of crimea. is moving in. the beef monarch has been making a big push in russia. as for mcdonald's, they are siding manufacturing reasons. ♪ >> when it comes to the good life, it is hard to top francois henri-pinault. in addition to being married to salma hayek, he is the ceo of kering. this company has a huge portfolio of high-end fashion labels. he spoke to bloomberg television about how he will grow the business. >> we do not believe luxury and france can take advantage of all the price segments by stretching the brands, like very low-priced, 200 euros, 5000 euros in the same category. we need to move upwards. the number of customers buying luxury products is increasing in the world. next 20, 30 years, in terms of economic development around the world, to keep markets are young people, very much attracted by brands, very aware of health, sports for the young generation. those markets, because of their fast-growing pace, are generating more and more numbers of rich people for the luxury side. h

kering is home to brands like gucci and yves saint laurent.s reported results that beat estimates as well as management shakeups. manus cranny joins us with the details. the key take away is that they are not doing so badly. gucci is not doing great either. >> it is not. it is the beast occurring. 55%. if i give it to you picked a , how, 3/10 of one percent did they do? it begins to really blow the mind. 15%. up in the first quarter. send the wrong, 20%. rent, 20%. they are trying to compete with gucci. it is still not complete. small is beautiful in this story and control is key. where they have control of the , thatt between you and me gucci experience, it is working. >> a lot of these small companies don't have logos and that is what telling. -- what is selling. talk to us about the management restructure. >> the management restructuring they said, let's go for silos and control. luxury to tour and leather, that is the family of alexander mcqueen and mccartney. those other brands that are going to sit in that stable. of bottega veneta did s

ofalso have a large number consumers who cannot afford the high-end gucci.high end brands have been putting up their prices. there is a lots of pent-up demand for luxury items. >> why isn't european business filling that gap? they are going high-end. why are there not more homegrown markets? brandsink a lot of the are based on the target behind the net worth individual. that's where the money is. brands are clever to get to that kind of affordable luxury racket and be successful. -- kors iscors successful. they have expensive dresses, but have cheaper watches and accessories. very distinct price points. they can keep up the luxury or out. how much can they keep the balloting that? -- balancing that? introducing more luxury goods? >> definitely something we will see more of in the future. brands realizing there is this bracket of affordable luxury. lots of tree brands are not targeting. has been very successful in the lower brackets, renewing new products coming out. consumers do not get bored very quickly. has been great at targeting the younger demographic

ofthe gucci brand in terms creativity in the key categories is what it should be. we need to work much more on the communication side of the brand. we have been a little bit too much focusing on the products side. this has been done well. >> what a dream shot. by the side of the pool. >> that is how i want to run my business. >> you will hear more later on. >> talking about nice places. all this morning, we are bringing you exclusive interviews from the ubs wealth management summit in davos. manus cranny is there now. what themes are you hearing? theme i have got so far from the morning is fear ye not. we have spoken to the cio from asia-pacific. she said they will support the market is seven percent. but don't get overly stres sed, because the chinese will not allow the economy to tip over. they will have shadow banking rectified. we come up with alex friedman, the global cio. it was interesting the way you look at the world. stop trying to be myopic. q.e. in europe. stop trying to look through the day today nuances of the fed. correction as a structural opportuni

. >> what we see with lvmh, largely we are going to see with gucci.ci had very similar problems. it or craftsmanship. >> thank you. still to come, we are talking burberry. ♪ >> welcome back to "on the move ". i am francine lacqua at bloomberg european headquarters in london. we are 30 minutes into the market open. let's have a look at what markets are telling us. they are a little bit on the upside. gaining a little bit of momentum. you can see some -- between .2% and .5%. stocks gained as we saw a recovery of u.s. technology shares that were down the previous three days. let's dig a little deeper. caroline hyde is that the touchscreen with three stocks that are on the move. >> let's start off with this sweet to taste read still more pain for the sugar maker. yesterday, a profit warning. today, people worried about the demand for sugar in europe. they say a significant decrease in profit is on the back of that lack of demand. on a more natural no, that's move over to christian hanson. this is -- on a more natural note, let's move over to christian han

we are seeing similar things happen to gucci and louis vuitton.ave to rein back. >> thank you very much indeed. caroline hyde on the latest in the luxury sector. let's bring you some more news from mercedes. >> we had some breaking news in the last couple of minutes. it is close to the highest monthly sales ever with a 13% gain in march. >> let's turn our attention now to a bit of m&a. shopping of a different kind. the bidding war for sfr could be coming to an end. >> there than the is holding a board meeting -- vivendi is holding a board meeting today. matt campbell joins us with the latest. the facterestimate that this may not be over. >> the likeliest outcome is that vivendi does choose to proceed with an offer from the cable holding company controlled by patrick draghi, the french billionaire. they have entered exclusive talks but this competing bid from bouygues has been trying to derail this deal. will vivendi allow itself to get the route and say, we are going to either open back up or enter negotiations with bouygues or will they proceed?

the rt which is located near the center of the gucci prefecture. it's the first of march th. most entirely of limestone. until it was hardly speak. they should instead. it is you just since ancient times for grazing livestock. christine grahame use this for us the grass next to us for four km just three km east to west i knew it i do. the grass while springs. ouch. it is. why is trying to fly. the graphics the first to bloom in this season. are those which grew close to that. i must compete pollination. two is covered with tall grass and other which is relative to the ground and it is just and centimeters tall. the flowers are reddish purple turn right and during tuesday's violence of the most common stock. you should. though explain to the greatest. and ten. i do. here is a three centimeter can't appeal. i likey. the return into the large honey brown fertility the distance and grooms he relieves of violence. the us. some clients make your seed i put her pic above for these characters. the us dollar a spirits now busily fly around the grass. caterpillars and other insects are

just like they have in berlin london or new york did with gucci current residents. i'm sure that our residents will do well in order to sustain his sixty two thousand people live here see you. here the eastern most indian european union speech. and we're continuing to progress here. korea's many new infrastructure projects underway this week and will get help from brussels. artistic director this is what the new district is suppose to look like one day. the mayor hopes to norm many wealthy russians here from st peter's. there's a glossy brochure but so far they haven't found any investors. if the eu imposes sanctions on russia that would probably spell the end of the project. sexy but also supports bush's recent military action in crimea she says it's writes the crimea once again belongs to russia. couldn't get the key in the study was a historical mistake the russian gave up my knee and back then. that was always rushing to retrieve it if you go to the beach cities of some past opponents and cheryl cole always russian capital. just like in or about which also has a

is you gucci has led to tertiary that we deem to be a social affair with one group getting together to talk specifically about to reach office. we've come to have a look at this ballclub a difference but one can enjoy a coffee with caf cup. did your reputation of being creative thinkers has not been lost on the lives of real world. disco osbourne by younis gomez intends to show a wide range of examples invites participants to buy it's like he's jewish author displays put him there was any notice yesterday but somehow we have had classes in the summer and i commend him to mean any ideas can it be from cupertino. people ask that if he is going to be quite the coincidence that has a different one than it is but they actually see it in some office on time for the novice an honest critique what does that because his head hit the peak of the shelter is compact cents as nineteen eighty he and people can eat anything by trying to get the tickets the day after that. the office to buy an ice cream to the class was so awesome footage to identify game. i do nasty things worked. while in the cross

police say he pulled out the gun from a gucci satchel after the clerk tried to make him pay the tax. according to the "sun-times," he later told officers, quote, this is my naming, i tax them and i had to put them in their place. >>> a warning now just in time for summer. a new study chose young boys are more likely to die from drowning than in a car accident. more than 46,000 people drowned in the u.s. between 1999 and 2010 and a leading cause of deaths -- it is a leading cause of death for children under the age of 5. swimming pools were the most common places for drown among children. the study also found that formal swimming lessons have proven to reduce the risk of drowning in young children. >>> and with the weather heating up, that's something to certainly consider. >> absolutely, that's for sure. >> a little cooler this week. let's check your forecast with meteorologist the christina loren. but those kids always want to get in the pool. >> it's not quite warm enough, just yet, for that to be safe. and i can't believe i work with a mother of triplets and a mother of twins, bot

ayers rock before meeting the twenty fifth of april and competing in the second leg of their tour gucci has led to tertiary the tweaking to be a social fact that one cricket team together to talk specifically about jewish golf this week on top of this ballclub a difference but one can enjoy a coffee with caf cup. did your reputation of being creative thinkers has not been lost on the material world and its coastline by janice gomez intends to show a wide range of examples invites participants to buy it's like he's jewish author displays put it into a skinny no taste. we have had classes in the summer and i commend him to mean any ideas can it be from cupertino. if a little calf that if he is going to be quite the coincidence times and very different from mine and it is but it didn't even send some opportune time for the novice an honest critique what does because his head at the peak of the shelter is compact think it's the author's percent to twenty century jewish nineteen eu. the move by trying to get the tickets a day after that. audi offers to buy an ice dancing to the class has som

looks like a real gucci bag.ind of counterfeit product we talk about appearing? >> the bikes, the ones that fold up, lots of issues with those. some disney products the disney logo is spelled incorrectly. all sorts of concerns. stuart: they better cleared up before the ipo. stuart: from one web giants to another. what is the story there? nicole: the stock for netflix down nearly 6%. going into the momentum stocks we have seen running up. not likely to recover with the market, they usually lag in their recovery. have the analysts with a hold rating. they are trying to continue to spend in that realm. trying to woo chelsea handler. whether or not that happens. that stock getting hit hard. the news today, they're getting the insurance business good is a place to buy physical, tangible goods. now you are in insurance? what is going on? >> we think it fits our business model that we. a lot of people think like you do, people buying new homes, a big percentage of the customer base our home buyers and people redoing the

leather, look out, liz, that gucci bag is going crazy. liz: you just hit me where it hurts.n, it'll still be -- is that cheap, 3,000? liz: that's not cheap, but it's middle of the road. [laughter] david: mazda's having an insect problem. this time the automaker's recalling more than 40,000 cars. we're going to tell you why spiders are a huge risk and if your call is on the recall list. that's next. liz: plus, fans of the video game tetris set a new record. we have the details on that when we take you off the desk. ♪ ♪ david: it is time to go off the desk. a philadelphia skyscraper hosted the world's largest game of tetris. probably the world's largest video game overall on saturday a team led by a drexel university science instructor hacked into the building, i love this, created a larger than life game for philly's tech week. good stuff. liz: also, mazda recalling 42,000 mazda 6 sedans because of a fire risk that could be caused by spiders? there have been nine reported incidents of cracked fuel tanks in 2010-2012 models that could be tied to the yellow sac spider. mazda, w

>> sell them for 80, the designer ones, gucci, prada, dolce and gabbana. >> you know all the names --en in the business for two or three years. but i gave it up. we live and learn. i'm quite sure i ain't the first one to make mistakes. >> evans was recently given another 15 days in segregation for his part in the three-way calling scheme with inmate melvin sostre who is banned from call by court order from calling anyone other than his lawyer. now investigators have determined that evans had been placing call for other inmates as well. >> i ran charles evans s.o. number on the phone calls. he has 11 phone calls other than mr. sostre's. i'll run the numbers, see if possibly he called for other inmates that are in lockup and then did a three-way for hisself. >> evans, currently in segregation for arguing with another inmate still has a right to make phone calls. though many other inmates on his unit are there for more serious violations and have lost that privilege. >> this call may be recorded or monitored. i have a prepaid call from -- >> charles. >> as soon as new people come into lo

and i like to rob old men and sell drugs, and i'm at the point where i would do anything to maintain gucci. i like the best. >> currently awaiting trial on drug trafficking and burglary charges to which he has pled not guilty. culverson said he's been planning for a sex change operation. >> i'm a woman, got a 34-b, all right. and i'm still taking hormone pills, it will help me make the process exchange a little easier because it's painful, and i've got to make sure that it's something they want to do. so they give me extra time to make sure it's what i want to do. once you get it done, there's no going back. >> are you scared to get your [ bleep ] cut off? >> i thought they would splint it and push it up in? see, i don't think i could do that. >> you would think being at a male dorm that i would have a field day? that's not true. they are 60 to 80 years old. the crypt keeper, that's how they look here. half dead and limping and not physical fit. ooh, please. >> for the time being, john schmidt need not be concerned with the other inmates in his housing unit. >> [ bleep ]. >> yep. >> finish

put in the towers are generally those that are of higher value, things such as the pradas, fendis, guccisrs and so forth. >> the next morning, he takes a look at the video and can't believe the spectacle at his eye glass store. the damage amounts to almost $25,000. >> i was somewhat in a daze, and it was somewhat unbelievable the extent of the violence of this break-in. i don't quite even get why it was necessary on the part of the perpetrator. >> but earlier in the week, a similar crime occurs at the store. security cameras are immediately installed, and they catch this second robbery on camera. snarr believes it's the same suspect. >> it's my opinion that that first crime was more of a case to test the alarm system. >> in october of 2010, police arrest 39-year-old adrian irving on charges of breaking and entering and vandalism. two months later, he pleads guilty. he's sentenced to three years in prison. it's all thanks to the 20/20 lens of the surveillance camera. >> it's not that expensive when you get the payback or the reward, when you catch them like this on film. it can go a long w

gucci had the same problem. it was too common and they're trying to scale back as well.s fascination -- fascinating researched and mintel.ne by u.s.stop looking to the labels. in ukraine remain high in the streets and authorities struggled to do with separatist unrest. more on how the unrest is impacting the market. ♪ >> welcome back to "countdown." jonathan pharaoh. 137 .86.ro-dollar we could expect german exports out this morning taking a slower in the last hour. you talk to people where we go from here, it has nothing to do with europe and the ecb what to do with a first rate hike at the federal reserve. tohas pushed goldman sachs change their call on this one. they're looking for $1.30 over the next 12 months revised down --m the one dollar 40 $1.40. >> u.s. regulators have approved tougher leverage caps for america's biggest inks. a lenders will now need to hold capital equal to five percent of their total assets. higher than their overseas competitors who must hold at least 3%. the eeo is moving to give shareholders a veto over pay packages for executives at public

marriage would you say israel and twenty in ireland and stamp with us and we say we are poking fun at the gucci say we are not talking about might just say what we are idols that well then you fold to see who will say that democracy i'd say i say that france is simpler team to beat terrorism in seedy and snow so the area get through and through turkey of july and headed for you on the fence even me. they are simple haven't entered in the new vinci am. and you are outside. anyhow i was that those who disagree with you and tell him that she doesn't write too before we say the shot that was running a democracy the full civil conflict began. i don't say he's got nothing to do. i didn't say it is that democracy might see alice progress sink into the al is going very very fast to democracy the opening between that i learned i was in the thousands in an enzyme that nobody can say let me continue i didn't interrupt the area between two thousand and two thousand ten cl is progressing and was opening but also opening in our local events and we were we had more ag free them and more freedom to go and that

>> certainly, when you look at rivals such as gucci. problems inmilar china.your own good, too many logos everywhere. is that a change in taste? subtlehat they want more types of luxury? isis it the giftgiving that clamping down on the spend over in china? i leave you with one interesting fact. 71% of the most wealthy in china now feel that it is craftsmanship that it is the most important, not status. this could be turning to chinese, homegrown luxury goods, turning oil from the likes of the u.s. and european conglomerates. an interesting want to debate. >> what an introduction. we are joined by the founder and capital.director of you still want to bring to be recognizable. is there going to be a resurgence of the logo? doinghink what lvmh are is that the traditional logo has become boring to a lot of consumers. they do need to reinvent that piece. they have tried to significantly upscale the letter offering. they are trying to bring in high price points. they are tried to bring in highly, newly crafted bags. somewhere big gap around the thousand euro price r

. ♪ >> from gucci -- luxury designer penault has some of the biggest brands, he spoke to bloomberg aboutt kind of customers he is interesting and right -- interested in right now. >> with the economic growth of the world, the key markets are young people, very much affected by brands, very much affected by the health issue, from sports, with the young generation and those markets, because of their fast-growing base, are generating more numbers of rich people on the side. >> i am back with my guest host, blen lerer, an investment in parker and owns jack's threads. you are only talking about retail and selling retail, but you are also investing in some kerthese retailers, with par being one of the more well-known ones. is this company going to get bought? >> not that i know of. they have a very aggressive growth plan for a bunch of -- four more stores, and as we were talking about during the break, that is the first i have heard of. >> amazon, probably. >> i don't think that will happen for many reasons. i think that they have a bright future with plenty of money in the bank, and they are

gucci's owner may look to buy sports and lifestyle brands.whether it can puma brand around. growth ined to have a the brand. we need to make sure the brand impossibility is in line with the new product that we are putting a market. >> he went onto say that he is convinced that they should have a lifestyle brand to reach younger consumers. his wife, salma hayek. >> i did not know that. >> i only know that as mr. salma hayek. someone else they care a lot about, bill gross. speaks. he is the pimco cofounder. mohamed el-erian after -- after mohamed el-erian announces resignation, it has been rough. everything has gone wrong for him. he has had redemptions, the bond market has turned around. the rally has ended. he uses -- loses mohamed el-erian. why did he let you come in when his back is against the wall? turmoil has been hard on him and he felt he did not have an opportunity to express what this is unlike for him and say his piece. impressed by how analytical and reflective he is. about distressed to read the negative depictions of himself. >>

. >> you finally visited the company and wore gucci loafers into the sands. >> he may be confusing meher family members. you worked with him for a long time. >> he was terrific to work with. a few folks on wall street think of it as a "we" equation. he was terrific to me, helpful to my career and supportive of things i was trying to do. >> neuberger -- i mean, the u.s. economy is resilient. it's mazing. >> yes. >> we shouldn't be surprised when it does well, i think, because we have the best system probably on earth. it's taken a while either because of the depth of the financial crisis or because some of it might be self inflicted. do you think we are on our way to what we used to be able to do, 3% year in and year out? >> i think there are many things going on in our economy that's very exciting. the stuff in energy. if it had a dotcom it would be all you're talking about. it makes the company safer of the long term and reduces volatility. i think the economy has remained resilient. it has lost -- >> i saw that article yesterday. >> -- than many would have thought. it doesn't have t

gucci done well. the banks are lower today.e region of $7 billion worth of stock in order to bolster its position. one stock that is doing well today, however, is electrolux, the swedish appliance manufacturer. you heard from whirlpool. they've had a great earnings report. the profit there over in stockholm up 19%. they're talking about europe not only stabilizing but recovering. i had an exclusive interview with the ceo today here on the floor of the nyse as he meets american investors. yes, rebounding in europe. but from a low base. take a listen. >> pricing in europe is a little bit competitive -- certainly competitive, because the demand is down from the peak in the mid-2,000, 20%, even though it's turning off a low base. it's still a deflationary market. we need to make it on the turn of new profits. >> one more before i hand you back. alstom has been suspended from parade in paris as the french government, french regulator goes, could you please clarify the situation? is general electric going to attempt some sort of take