. >>> and the state of luxury retail we sit down with the ceo of lvmh at 5:40 a.m.astern time. >>> later, a viral video alert minnesota twins slugger brian dozer just missing out on a home run, but it looks like the wall wanted a piece of the action that footage and more when the show returns this is a great video. [whistling] hello. give me an hour in tanning room 3. cheers! that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles. kayak. search one and done. dinner date...meeting his parents dinner date. why did i want a crest 3d white smile? so i used crest. crest 3d white removes... ...95% of surface stains in just 3 days... ...for a whiter smile... that will win them over. crest. healthy, beautiful smiles for life. >>> welcome back to "worldwide exchange." >>> some of the biggest names in tech including mark zuckerberg, ginni rometty and sare gatheredn paris for the viva tech conference karen tso caught up with emanuel macron he is laying down the gauntle

those are typically the problems of overseas fashion companies that tend to be highly valued like lvmhn change the negative trajectories with the home buildings it is unclear. they continue to put up the numbers. it is not like they are missing forecasts n. fact margins are unusually strong for this point in the business cycle. oh, there is the magical cursed word cycle. no institution wants to buck the business cycle if you buy a home building stock and we actually get a big shortfall, you have to expect that stock will lose another 10% in a single session if not more. there is no yield protection to speak of here. there is no consolidation win coming not that i can tell there is no savior until interest rates overshoot and come back down that's going to be a long time in coming. long story short, investors are afraid of the home builders. that's all she wrote yeah it doesn't married how good they are or how good even one of them is consumers goods face different challenges raw costs. tastes are changing. companies dent generate organic growth that's appealing versus what you can get

surging chinese demand has been boosting the fortunes of lvmh, lori l's luxury division, all growingble digits. but burberry is failing to catch momentum we are seeing in the rivals. guy: briefly, what is the design story here? anne-marie: they have a new creative director, known for flinging open the french fashion house to celebrities like beyonce and madonna. some light hues, beige, people are looking to see how he takes the brand forward. believe burberry's is going beige. that is shocking, and madonna is wearing. deal when it got out of its joint venture with general electric for $3.1 billion of renewable energy deals. that gives it a chance to move closer to its tie up with siemens. be -- be a boost at the open. guy: the market open is next. this is bloomberg. ♪ guy: the start of cash trading. btp will be a big story this morning. historically, it's amazing how little it has been affected by the euro. it's below 10% this morning. the cable rate is trading at 135.1. take a look at the lumber charts. g tv on your bloomberg. rising the other commodities are rising as well. ,

matt: we talk about consumer lvmh is again or today.seeing that affect that we talked about. some of those stocks overseas technologying from coming through in making the second-most gained a stock here in europe. let's talk about what we are seeing in these european markets as they are opening. asia did not take that much away from the apple story. we have certainly been paying attention to that. markets are up, but the dollar continues to be a big feature. got the fed. matt: we have a great dollar chart. it is a very exciting chart. let's bring in philip -- peter. thank you so much for joining us this morning. what do you think about they strength we have seen in the dollar over the last few weeks? does it make a big difference to the way we see european stocks trading? peter: i think that there are two factors that justify the rise in the dollar and it could extend for a small. . matt: you can check it out on your terminal if you want to. eter: that trend of downside it to the dollar has run its course. we expect those short position

luxury space has been on fire consumer discretionary we talked about tiffany and ralph lauren look at lvmh, you can see this global affluence trade is alive and well, and that these names outperform and are trading at peak multiples. >> i would push back a little on the lowe's/home depot thing. i think they're the better company. better run lowe's has had an absolute tear to the upside. thing is a lot of different reasons why. their numbers were nice. but i still think. this is one of the names i'll give you an example thofnlt pop, i decided i own this stock i don't think it's going to sustain this game at this pace it's been on i think it's going to pull back. >> how about a really interesting one. tim's been in it i've been in and out of it macy's up 40% year to date when you look at why they're making money, they're reorganizing square footage. they're renting out floors now used to be a reit. used to think about selling off the real estate. now they're keeping the real estate, but they're selling some floors they're doing a hybrid model it's up 40%. it's still a $10 billion market cap.

we have to keep watch on lvmh. sectorneca in the pharma new -- down nearly 2.5%.osing out on sales in market shares. one of their key drugs, a heart disease drug, failed to hit estimates. astrazeneca is seeing in china. in vivendi, down more than 1%. yesterday after the bell. hsbc says their business update was not the landmark advertised milestone they were anticipating. they really felt their update on the businesses was next. back to be why vivendi is down. another's talk about big theme this week, oil in london. separates longest weekly run, brent topping $80 a barrel for the first time since 2014. the middle east is one factor, venezuela should not be ignored in all of this. certainly, the iea talking about the global glut. let's talk to andrew wilson, the ceo and global cohead of fixed income at goldman sachs asset management international. the moving oil has been quick. andrew: it has been. guy: therefore, i am wondering whether people were out of position on it. people had to play catch-up. what are the other implications of this? andrew: inflationary impl

we like this theme of what is unamazonible tiffany, sothebys, lvmh. we also like deep value. koss coand tj roc jrkj ross weather has negatively impacted apparel sensitive categories because it has been cooler than expected and we needed it to be hot. there is a lot of cross currents tiffany is inowe vagt product, marketing stores they are becoming more modern and customers are returning to tiffany on the heels of new collections, new product as well as new campaigns that are innovative, fun, disruptive as well as tying back to the history of the brand the blue box is iconic. >> oliver, to you chalk off the compressions in margins completely to the weather. all you call this price investment was there discounting involved here >> there is. there is a multiyear situation going on in retail with value and investing in price target really needs to address expect more and pay less pay less is a big factor in the equation what happened this quarter was in line with management expectations for the most part except for the margin mix with respect to weather so that was a factor in te

industries in europe who have technology or start ups on their doorstep that they can tap into i spoke to lvmh about that conversation back to you in the studio. >> great, karen. we were looking at the shot. you wouldn't know it was paris from the shot it looks like davos, the inside of the davos -- >> yeah. >> i think they all look exactly -- if you walk to the left, there's a little coffee bar, i think, where everybody hangs out, right i've seen you there on the corner looking to get recognized >> the coffee bar? champagne bar with the caffeine -- >> the aspirin reportedly helps with dementia. >>> coming up in the next hour -- that was karen tso in paris. a lot of big names there >> this big name will be with us >> ginni rometty will be with us she'll be live on "squawk box. i like what she said, she wanted to change artificial intelligence from artificial intelligence to augmented intelligence a human is there >> for now >> helps the human otherwise you know what can happen >> another guy who wants ai, he's scared of ai but also working on ai projects elon musk goes on a twit errant against