. >> lvmh, are they seeing similar trends? we are expecting sales to rise. >> this is what i am watching. toyota shares. after theown in asia company recalled more than 6 million vehicles. subaruac car and also a car. more details later this hour. we have the fed and quite a lot of freeform in europe with matteo renzi downgrading the forecast. we are watching ukraine, corporate news, what else are we watching? >> we are watching the markets. it is time to check it out for you. losses in europe and overnight in japan as well. the japanese yen got a little stronger. this is the open in europe. the dax not showing us a price yet, but we are expecting higher there as well. from here? go you look at the s&p 500 in the u.s. ths.orrection for 22 monh the guy that goldman sachs say there is a 66% chance of that happening in the next 12 months. if you look at the fx market, euro-dollar significant because this is back to the pre-ecb levels. where does it go from here? lower, agoing to go lot of people say it is not about ecb action, bu

earnings from lvmh.he reports made turning point for the luxury goods maker. ♪ >> welcome back. >> it is 7:24 a.m. european luxury numbers kick off today. lvmh is posting again in sales as it tries to strip away its logo as an exclusive reputation. is it paying off? >> it may well be. seven percent in organic sales. well forest -- boding the rest of the group. it is a huge conglomerate. it does a call, perfume, and jewelry. wheren and leather are they are deploying tactics. this is what is hot for lvmh. get fewer lower goes -- fewer logos. they are increasing the quality of the goods they're using and trying to regain that aura of exclusivity which got slightly removed in the likes of asia particular where there were too bags.ogoed burberry became too much of a success. what is hot is the continued weaknesses. we like to see nervousness and volatility. says russiansada are buying. it is a bellwether for the sector. what other trends? >> it should be fair and what they are going to be experiencing in chin

that was for lvmh reaction. the stock is up more than 3.5%.n the other side of the board, carrefour trading lower after the company posted a 3.7% decline in sales for the first quarter. this is due mainly to a strongly negative currency effect. excludeing negative -- excluding currency on petrol sales. organic sales were up 7% in the quarter. that was in line with expectations. in france, the key metrics for q4 remains. they were up on 0.070%. it posted 1.4% of growth in the fourth quarter of the last year. they were confident with the market consensus after an operating profit of nearly 2.4 billion euros this year. market reaction negative, manly because of the consensus about the french markets. >> stephan, thanks for that. more on those corporate numbers. >>> also still to come, is the fed being a weak ling? that's the allegation from the chicago fed president, charles evans. as we go into it, we'll show you where we stand with european equities right now. the ftse is negative, the cac and the xetra dax fairly flat. u.s. equities had a stro

lvmh is also considered a bellwether for the industry.as beset by the same problem, too much splashing its name and logos all over the place, now trying to raise the price point, scale back in the number of shops. .ascinating research this is what everyone is trying to work out. have chinese tastes changed or is it the clampdown on giftgiving? royalty in china want craftsmanship. they don't care so much about status. means they might actually diverge away from the u.s. brands, the european brands and start buying homegrown trainees -- chinese luxury. >> that is a trend we have to follow very closely if what is happening in the tech world is anything to go by. tara line, thank you very much. staying with luxury, let's take a step back and get burberry -- bucking the trend by naming christopher bailey as its new ceo placing both creative and commercial control in one pair of hands. andrew robert strives us from paris. resistedompanies have combining creative and business roles for years. can burberry make it work? >> we will find out soon e

lvmh, watch out.story is going to be a problem and then we're going to be talking about greece. back to the bond market. on the same day they are coming back to the bond market, we're going to have unemployment data out. they are going to tell starkly different stories. what is the real story? we'll talk about that. >> thank you so much. guy johnson. i'm looking forward to "the pulse" in nine minutes from now up next, the one shoe market that is more lucrative than football and basketball combined. racing to catch up in this sport and details are coming up next. ♪ >> when you look at -- in the next 20-30 years, it depends on the economy development of the world, the key markets are young people very much attracted by brands. -- much aware of the sport. those markets, also because of their fast growing base, they are generating more and more numbers of rich people for luxury side. >> that was the kering chief executive on the appeal of sportswear in the luxury market. he also said of course he is relau

if you look at compared to lvmh, it only has sales about 1/10 of lvmh. -- the chief executive is sayingtaking market share from these giants. it is making him confident. the chief executive is now planning on unrolling 200 stores for europe. before he only aimed at 100 stores. >> why the growth? what makes the label so attractive compared to some of the older fashion houses here in europe? >> what michael kors is managing to do is give luxury but with affordability. they are managing to walk that fine line rather well. they are having a very upscale catwalk shows, very high-end addresses, about 900 pounds, but with that you have the much more affordable watches and accessories. older,taken out of the bigger lines of louis vuitton gucci, taken a line out of their books. watches cost about 200 pounds. he is filling that gap that has been left by the higher-end and going for the aspirational buyer. ateuropeans, you look burberry or someone like that, they wanted to go upscale to make more money. or lvmh?loser to zara >> it is right in the middle. that is what is making it so traffic -- so

in the late 1980s through a series of shrewd investments and boardroom maneuvers he captured lvmh.e became its ceo in 1989, three months before cnbc's debut. >> luxury goods is fiercely competitive globally. if you want to be a big player, you've got to amass a huge portfolio of brands and products that people really want and are willing to pay a huge price for. >> reporter: arnault understood that better than anyone. tomming apink, amelia puche, sephora, all part of an empire painstaking l painstakingly, assembled and led by arnault. >> he has the ability to create a design from scratch or recognize a designer that has the ability to make long-lasting creations. things that we're going to want to buy for years to come. what's interesting about luxury and particularly lvmh and the companies and brands that arnault has built, these are all things we don't need but we really want. >> reporter: he understands, too, that fashion must change to stay relevant. and so he hires big-name designers like mark jacobs to be the creative force behind louis vuitton and lower than expected mcqueen

that is just 10% of lvmh, but is chief is negative ambitious and feeling confident. he is stealing market share from the likes of louis , those european big houses that have been here for the last 50 years. he is stealing market share. be 100er is he going to stores in europe, it is going to be 200. i think it walks a very fine line of luxury but at a good price point. at the moment, things are relatively cheap -- when you look at their watches or their -ags, they are about 300 euros 1000 euros. compare that to gucci or louis vuitton, which are about 1000-2000. they are 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 expa

she brought social media to burberry far quicker than lvmh and kering, her competitors. clever things with lipstick. you could kiss your phone and send it with a certain shade of burberry lipstick to a friend. that is getting the young aspirational buyer interested. they may not be able to afford burberry coats but they can afford lipstick. bring that luxury aspect back to apple. quickly, we have info on apple later this week. there could be a rather large bond sale happening. back to going investors. that worth remembering bond investors have lost money if they bought apple's original bonds last year. particularly if they held the longer-term debt. apple is going to have to pay back investors. >> thank you so much. caroline hyde with the latest on angela ahrendts and burberry. >> what are they up to that they need her early? we will talk about that later. coming up, it is ge versus siemens. we will examine the politics behind the battle. we are going to go to paris with the president of the french employers union talking to us from our bureau there. ♪ >> welcome back. y

he has 15 years experience. 16 years experience at the high end of watches and jewelry within lvmh. they are very clearly siloing the business in terms of what they are doing. a couple of other questions -- who is going to take over bottega and who is going to run china for the group? investors are relieved -- >> and they are also focused. >> your own brand, your own shops, you're all -- your own control. back to you. >> shares rising in after-hours trading after they beat expectations for sales. european is our business correspondent, caroline hyde. sales are up, but costs are up as well. >> and in exactly the same proportion. it is quite amazing. increase in expenses, spending. nearly $20 billion is how much jeff bezos is plowing into this company. one investor we spoke to earlier this week was saying it is always jam tomorrow, never jam today when it comes to amazon. investors like building the company up, because shares rose after-hours. and they are trying to increase profitability a little bit. they are charging more. if you want to be a prime subscriber, you are charged 25% m