claire is at the lvmh press conference in paris. i can't get over this 12 billion euro deal. when looking at history and how christian dior started selling sketches for pence back in the '20s. >> yes. and this is a move that is appreciated by the market. you were talking about the performance of the stock, because it has been requesting that lvmh simplify its capital structure for a while so in a move to do that, the number one luxury group announced a public offer by the arnault family on christian dior shares. you have to remember they own 71.4% of the company. so this public offer at 6.5 billion euros is about to value christian dior share at 260 euros. that's a premium of 15% over the closing share price as of yesterday. now, among the objectives of this operation that we'll hear ben arnault talk about in a couple minutes when he starts his press conference at lvmh, among the objectives are to boost earnings. it will boost earnings per share within the first year of completion. that's what the group is saying this morning. and it will also reinforce its leather goods and

lvmh very good at managing that.vesting when the brand is hot, but also buying new brands in investing in building them. that is the trick. guy: we will carry on the conversation with patrick in just a moment. torick armstrong is going stick around. taxp next, u.s. corporate could be cut to 15%. what is expected from donald trump's tax and spending reforms. suffice to say, a lot. this is bloomberg. ♪ minutes past the hour. germany has agreed to buy a u.s. drugmaker for $4.3 billion. europe's biggest publicly traded health care provider also made a .maller purchase says it mayes allow a takeover of exons dax akzonobel. .hareholders meet tomorrow sales top estimates again. that is your bloomberg/. >> thanks. for at trump calling corporate tax cut to 15%. trump plans to make these plans public tomorrow. -- whatd outline of one he wants to change in the tax code. the details are not to be released until later to figure how it gets paid for. patrick, can you be optimistic about this yet or do you have to take it with a gr

. >>> shares in lvmh rally to a record high as the french conglomerate posts a forecast beating a 15% rise in first quarter sales, setting a trend for the rest of its luxury peers. >>> crude prices wobble after a week long winning streak amid tension over syria and the shutdown of libya's largest oil field. >>> g-7 foreign ministers meeting in italy look to put on a united front on syria, as turkey suggests the syrian government still has chemical weapons capacity. >>> hi everybody. good morning. welcome. >> good morning. >> how are you? >> very good. a lot happening in the markets today. >> ton. a lot of breaking news. we'll talk about dialog in a second. we want to show you what european equity markets are doing in general. we saw a flattish open, flat to slightly lower open. markets lower somewhere in the region of a half percent. the ftse 100 bucking the trend a little bit. that also seen in the sectors out there. you have household goods, chemicals, real estate trading higher. banks and technology leading the way down. >> let's also have a look at some of the best and worst perfo

on the upside, the top line beat from lvmh having an effect. the sector trading higher this morning. the luxury sector is getting well bid. hsbc on the upside, mining stocks trading higher. an interesting start on mliv this morning shows what is happening with freight traffic in china on the chinese railways --hich could be on indicator an indicator that the commodities story is one to keep an eye on. on the downside, the rolloff coming through what is happening in iron ore and metals. thes get back to one of headlines matt mentioned. the pricing of u.k.'s cpi, having fallen back a little, but the change in direction is likely to be temporary. easter to be a factor in this. the drop in oil prices, these petrol prices have come off a touch. the broader trend is still for rising prices. a selloff in sterling. the data on cpi. global head of flow strategies at stock to end his still with us. is the party over for the british consumer? kokou: it seems like it is starting to be the case because you have imported prices going up. -- companiesings tak

lvmh, butts not only permits as well. how have investors reacted? shares of lvmh have gone up 4%.estors are happy they are getting a share of the action of what is a relatively strong brand. they have around 2 billion euros every year in sales and it has grown 12% a year on that over the past 15 years. shares in cristin and your have -- christian dior have been happy. they have been on a fairly steep premium. on the other hand, because of shares, there are not a lot of free clothing shares in this company, there is going to be a lot of them hitting the market because they have offered their shareholders the option to accept them as stock as payment for the dealer shares -- for the dior shares. mark: what does the timing of this deal mean for the underlying strength of the luxury market now? >> this is a strong vote of confidence his family. they are putting $12.5 billion of their own money into this deal to buy out the minority investors. shows that they are really feeling quite bullish about the space which has seen rebounds in recent months as consumption bounces back in china.

francine: a great update from lvmh.have been covering the luxury sector quite a lot and have seen a little bit of a turnaround. andre back with gilles moec julian chillingworth. up next, we get u.k. inflation figures. our consumer starting to feel the squeeze? we talk about inflation. we have a great graphic that shows, if you want to protect yourself from inflation, buy marmite. but do not do the diy, because one thing that you need to improve your house has gone up. this is bloomberg, and these are your markets. we are seeing a little bit of a pullback. a lot of investors watching geopolitics. we will also talk about french politics in the presidential election just a couple weeks away, and shying away from risk assets. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. p

record high today for an -- lvmh. vonnie: i love it.he federal reserve is shifting gears potentially. what chair yellen told an audience at the university of michigan. >> whereas before we had a put foot pressed on the gas pedal trying to give the economy all could, nowe possibly allowing the economy to kind of coast and remain on an even keel , to give it some gas but not so much that we are pressing down hard on the accelerator. that is a better stance of monetary policy. vonnie: the yield on the 10 year a little lower following those comments and also due to the weakness in it, 2.33%. we are joined by dan foss of limits sales, who told us in march the 10 year yield may reach 3%. welcome. we can break out of this range and the fact that we are migrating toward the lower end, you are looking for it to go all the way up to 3% and maybe beyond perhaps by the end of the year? dan: that is my guess. vonnie: how many hikes does that entail? dan: at this point that would require two hikes that amount, probably three if the 10 year is going t

we heard about the lvmh deal, and the political view the.oes the french election change anything you do in europe? >> i don't think it does. there is still uncertainty around. one of the messages around from last year in the political events in the uk and in the united states, it's important to separate your political thinking and your political views from your strategic thinking about what will happen in financial markets or what will happen in underlying economies. that they are very different things. you can get easily distracted by political events. markets certainly have been distracted by political events. >> is there a trade? we still got the second round, the italian elections, nowhere near wrapping up brexit. >> always with the benefit of hindsight there is a trade. and some people will have done reasonably well out of the french elections, which pretty much went according to the opinion polls. now we got the second round to come. there could be a surprise there, but it's unlikely. i think the markets built in what they anticipate w

is toxury giant lvmh purchase christian dior. of 6.5 billion euros, but the story is more complicated. we are joined from paris. great to have you on the program because this seems complex. tell us what is being done this morning. doing something investors have wanted for a long time. christian dior is a public company, he and his family on 26 percent. it didn't make sense, the stock is not all that liquid and arm with see it is in lvmh. these tworinging things together, combining them into one company essentially. it is a very interesting bid of financial engineering. the family owns a ton of shares in their big paris-based luxury rival. the family has been sitting on this investment for several years and are using those shares to pay for the purchase of christian dior. investorslicated but will be happy because they wanted this for a while. manus: it would operably be happy. we will see what comes through. when you see the lvmh, there were good numbers a few weeks ago. there is a resurgence in confidence in luxury, isn't there

shares in christian diorjumped about 12% and lvmh shares rose 4%.re is room for more hotel rooms in the uk, but 20% of their staff are from the eu. she has called for an open and flexible labour source with reference to concerns around brexit. carpetright has also expressed concern about the year ahead. both companies shares are down. nestle is planning to cut almost 300 jobs, mainly in york and newcastle. its also going to move production of the blue riband chocolate biscuit to one of its factories in poland. there's going to be cuts at their halifax and girvan sites as well, but the company hopes to cutjobs through voluntary redundancies. nestle said it was trying to make the business more efficient. the gmb and unite unions have expressed their anger at the decision. joining us now is lawrence gosling, editor in chief, of investment week. laurence, let's start off with nestle. 300 jobs in the whole grand scheme of things probably doesn't seem hugely significant, but you have got that factory to go to polandment they‘ re saying have got that facto

shares in christian diorjumped about 12% and lvmh shares rose a%. let's look at the markets.after the results of the first round of the french of the first round of the french presidential elections which lead to markets breathing a sigh of relief. also as we've been talking about whitbread, which owns costa coffee and premier inn, has reported a 6% rise in profit to just over £560 million. but the share price is down — partly over labour market concerns. carpetright‘s share price also down after the retailer said its full—year profits would be at the lower end of forecasts. that's all the business news for now. i will be back in an hour's time with more business news. the family of the man who died after he was run over by his car as it was being stolen has paid tribute to him. this statementjust issued by the family of mike samwell saying his death made a huge hole in their lives and can never be filled. they say mike was the most wonderful brother, husband and son. he was a generous family member and friend to so many. it says, "we have been blessed by the amount of suppor

hasry goods leader lvmh reported first-quarter sales that exceeded estimates.he maker of dior says sales rose 15% to 9.80 8 billion euros euros. billion lvmh joins industry rivals like hiermez and gucci after several years of ebbing demand in china. qualcomm has accused apple of lying to regulators to spend investigations of the chip maker cover uptening it to the use of inferior parts in some iphones. this is as the world's largest maker of semiconductors responded to a january lawsuit with counterclaims for damages. it also alleges that the iphone maker breached contract and misrepresented facts. shares in whole foods market surged the most in more than two years after the activist investor jana partners acquired estate, suggesting that it put itself up for sale. the investment firm announced it had taken an 8.3% stake in the supermarket chain, which have suffered its worst sales slump in more than a decade. senior executives at deutsche bank stopped short of ramping up their holdings during the bank's latest capital increase. ceo john cryan,'s deputies, and

lvmh says investors urged companies to simplify its corporate structure.ntire brand will be owned by lvmh. the family also plans to offer cash and shares. take a look at hermes falling. and austrian chip maker posting better than expected first quarter revenue and sweden's volvo was helped by demand for trucks and rebound in construction equipment business. lastly, swiss drug maker reporting better than expected first quarter profit and expressing confidence that the company will return to growth next year. those stocks all in the positive territory. lastly, currency traders keeping a close eye on the euro with a monetary meeting now on thursday. some people saying that reduced political risk could mean that the central bank will start talking about tapering. euro holding onto 109 against the u.s. dollar. back to you. >> all right. thank you. >>> the nasdaq crossing the 6,000 mark for the first time trading at intraday record. for more on the rally and big tech, let's bring in richard peterson and a partner with lead edge capital. welcome to both of you. i

the deal valued at 12 going euros will simplify the business interests of lvmh.e family will offer to buy the 25.9% which it doesn't already own. the brands currently include louis vuitton and others. automaker peugeot is reportedly under investigation by french authorities on suspicion of cheating decently missions test. the consumer watchdog agency sent the case to prosecutors after seizing a trove of at the offices last year. it's now the fourth carmaker to be investigated in france following the volkswagen dieselgate scandal which broke in 2015. catherine clifford has the story. reporter: following the road will traveled by renault, theswagen and fiat, dieselgate scandal formally investigated over allegations it manipulated emissions test on its diesel vehicles. french investigators believe average eight -- above levels of pollutants as government-backed test appear to have shown. it's vehicles have never been equipped with emissions cheating software or devices, having given a similar statement in february. >> our models absolutely conform to regulations and

luxury groupargest lvmh is buying out christian dior. the $12 billion euro deal will see all of dior's line under one line for decades for shares were up over 4% in midday. the united states is planning to levy import duties of around 20% on canadian lumber. the anti-subsidy group will affect the $5 billion worth of materials that comes into the u.s. and a look of measures to protect the industry from chinese imports. the duties rating trade tensions as the u.s. prepares to renegotiate the north american afraid trait -- north american free trade agreement between canada and mexico. people have set we're supposed be living in the future aware of the flying cars? it seems i prototypes are popping up left and right. silicon valley, flying cars and kitty hawk revealed their person announcer: this is a production of china central television america. may: sustainability is in, and it's shaping trends all across the board, from agriculture to fashion and gourmet dining. this week on "full frame," a look at the e tastiest, chicicest, and coolole

now all five of lvmh's main categories grew double digits. fashion and leather goods -- this is the largest group -- and includes names you know so revenue growth far outperforming expectations. selective retailing, this includes sephora, saw sales improve 11%. that was slightly better than estimates. even the smallest group, watches and jewelry sales, jumped 11%, almost doubling expectations. now lvmh is still cautious looking ahead citing a particularly unsaern certain environment at the end of the release. worried luxury could be heading for the biggest pullback since the great recession citing record low rights, gee owe political uncertainty across the globe and more. he will speak at the company's annual meeting on thursday. so far we just have the release. it is very interesting because he was very nervous. but these results are very good. >> 13% increase overall, do they break that out geographically? i'm curious how much better china is that we saw a real uptick particularly in the vip segment. >> exactly. in some areas they do but it

why would lvmh buy christian dior? big paycheck for this company. >> christian dior they make the fashion accessories and handbags and clothing under the dior brand, it has actually been separated from the perfume and beauty business that ldmh has owned since the 1960's. with this deal, they are bringing those together under the umbrella of one company. by doing this, he is hoping they can find synergy and have a greater impact and seek financing more easily. >> marine le pen stepping down as head of the national front party. she says she wants to campaign for president as an "free candidate to represent all the french people. what do you make of the fact she is stepping down? she is trying to broaden her appeal, but will it work? >> i would not be reading too much into it. as you say, it is an attempt to broaden her appeal. she wants to present herself as a unity candidate for all french people. obviously, given the history of the national front that is going to be difficult for her, but this is a symbolic effort by h

lvmh continues to remain well bit as well. thanking sector in more detail.dit suisse and santander beating their first quarter earnings this morning. here is how it opened up. softer. it is going to have a capital raise. we also get a standard chart a result of little bit later on this morning. joining us on set to discuss all of this, bloomberg banks editor chiefl moore and a investment officer at cross bridge capital. let us get with the details. i want to start a little bit with cf. let me just show you a chart, cf versus the european banks. this is taking you back to the beginning of the 10 year -- tenure. on the way up, lagging and quite a lot. does today's news start to close that gap? is that enough? reason for the gap was pricing in some sort of capital raise, be it through selling the swiss bank, which they have decided not to do, or through a share sale, as we are seeing today. over the last few months, investors have started to price that in. that could kind of set credit suisse up to have this question behind them and really go forward more on th

we reported yesterday, listening to courtney talking about how well lvmh did.had amazing numbers out after the close so that stock is up double-digit gains across in leathers and fashion and wine and spirits. really just a blow-out quarter. burberry opening on the upside. we have talked about earnings expected to be up 10% in the u.s. for the first quarter. what people don't know a lot about is europe global earnings are expected to do really well in this quarter and for the full year. it's one of the reasons global markets have been doing so well, for full year estimates we're going to be up somewhere around 10%. to pan europe emerging markets, all are expected to do generally about theer in terms of earnings growth. they have underperformed us mostly the global markets for a number of years, and so this is a very welcome move for people who invest globally in the market. why are we getting this? earnings spurt you might call it? there's a couple of reasons. economic growth is picking up, gdp is better improving. corporate pricing power has improved, commodity

this will see much of christian dior folded into the lvmh empire.structuring plan, seen as the last chance. according to results of a ballot, the airline which employs 12,500 voted against a rescue plan approved by management and union leaders, including salary reductions and job cuts. has agreed to buy a -- a corn200 billion $200 billion. biggest publicly traded health care provider made a --ll purchase to gain mark that is the bloomberg business flash. francine: shares in volvo have jumped to a 10 year high after reporting first-quarter earnings of 58% following cost cuts and growing equipment sales. we speak to that president and ceo, martin lundstedt. congratulations on a very strong quarter, partly in do of the benefits of the restructuring over the last couple of years. what comes next? president trump once america to grow 3%. will that benefit volvo? martin: thank you, and yes indeed, we saw a very strong quarter one. a focuse on the back of restructuring activity over a number of years and taking that activity -- opportunity to leverage. tra

lvmh rose shares of to records in paris. were boostedndbags by its fashion unit.es increased 15%. it is the biggest sign yet of a for the luxury industry. police dragged a passenger off a united airlines flight that was over both. authorities say that will be an investigation. meanwhile, an internal investigation will be for united. united claims the passenger was being belligerent after being asked to leave the plane. jonathan: we are less than two weeks away from the first round of the fred -- the front election. the two-year -- the french election. the two-year spread is the highest in quite some time. that spread run across the curve. -- we are here with jurrien and vincent. vince, let's start with you. is this a big enough insurance premium head of the french elections? >> probably not. -- we will see a narrowing in the spread up to the general election in june. if there is an accident, that could blowout. an accident is a second round between mademoiselle the pen and -- a showdown between the extreme left and the extreme right. we have gone into a four-way r