since i spoke exclusively to the ceo of lvmh, i wanted to look at lvmh versus apple.ne when you have a bag? that is the sentiment of chinese consumers. you can see here, lvmh outperforming apple. both of these are normalized. the ceo is telling me that they are seeing a buoyant economy in china, seeing growth. chinese consumers are still buying abroad and on the mainland. another thing to keep in mind at luxury versus tech, luxury may be spared these tariffs and that might give the whole sector a bit of a boost. all right, who needs an iphone when you have a bag? i think that is a topical chart for today. both of them are, but annamarie and i will give it to you. i thought that interview was fantastic and the idea is a good one. if you have the super expensive bag, why the need to put a thousand dollar phone in it? anna, what do you think? anna: right here where i am, it's too cold for an iphone into money for a bag. -- and too muddy for a bag. plenty more to come here from westminster. theresa may winning a victory of sorts yesterday, a very strange one, though. the

and ceo of lvmh. coming up, the brexit debate plays on.ent debating amendments to theresa may's brexit deal before voting begins. we will have the latest. this is bloomberg. ♪ shery: the debate is winding down in the u.k. parliament. another vote set on brexit later this afternoon. let's get some insight from carl weinberg, founder and chief international economist at high frequency economics. of course we continue to see the brexit debacle unfold. investment is down, we know businesses cannot invest with certainty. at the same time, we see other parts of the economy slowing down. how much of what is happening in the u.k. is cyclical, how much is brexit related? in consumerown spending has been going on for some time. the slow down in industrial production went down from before the time of the brexit referendum so it will be hard to sort it out. britain has a widening current account deficit also and that is subtracting from growth. sure, in the short-term, the immediate problem is the transition to brexit. companies cannot invest, banks a

lvmh is down by 4%. a quick look at volume.the last few sessions, you have not seen high-volume in europe. today, that has changed. we are trading above or around where we have been which is a significant development from where we were a few days ago. that is a look at the european markets. >> in the u.s., we are seeing a selloff today. the ism manufacturing index is a major disappointment. also, warnings from apple and the airlines pointing to slower global growth. that is feeding the demand for treasuries. it is taking away demand for equities. apple is down 10%. bristol-myers squibb is merging with celgene. that is a big deal on the second day of trading in the u.s.. being baked into this market. some other indices we have already mentioned, it is worth looking at the commodity sector today as well. we are more focused on treasuries and woody's in this session. of the price make action, let's find out. are having a fun start to 2019. to a lot of fun for people cruelly trading currencies overnight. we see u.s. treasuries pili

it might be slowing, but earnings from lvmh are holding up.h has christian dior, louis vuitton in their umbrella. organic growth went to 17%. bloombergnault told why the company is seeing growth in china. >> the last quarter was growing faster in china for our products. the main reason is the desirability of our products, whether it is louis vuitton or christian dior. our products, louis vuitton, for bytance, have been created two fantastic designers. products are arriving taste of there the customer is more and more sophisticated as they hit big success. before the end of the year, before christmas. the reason is the desirability of the products. >> are you seeing chinese consumers spending more when they are touring as tourists, or more in mainland china? there has been a trend of spending more and home and west when they are on holiday. the reason why we have different designs from city to city, and why we have a very to be in toucham with the consumers in china. i remember the first time i was in china, in 1991, opened the first louis vuit

. >> thank you very much want to give you more detail on lvmh very interesting results from them this morning. they have reported a record 46.8 billion euros in full-year revenue helped by stronger chinese demand in the fourth quarter. the french luxury group said it was confidently confident about the year ahead and stropger than expected leather goods sales lvmh also nounts thad lou yis vitton sales raised. that was dragging up the whole of the luxury sector this morning. now, coming up on the show, u.k. prime minister theresa may says she will return to brus illesel. brussels says it is not up for renegotiati renegotiation. more after the break for aspaces. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪ unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight inf

annmarie with the lvmh chief executive.going to ask you what your favorite louis vuitton handbag, but talk to me about the chinese economy. is it is slow down that can be managed? max: i think if you look at growth figures over the last couple of years, we are talking and pretending like this is always falling off the cliff. , a reality is, it is managed measured slow down of growth. it is still growing above 6% which is the majority of global growth. that perspective, i'm not overly worried about china. i'm only worried about china if there are massive outflows, which we don't see at all at the moment. lucy further stimulus coming from both the monetary side and fiscal side over the next couple of months. china for me really isn't up on the list. francine: this is what we are asking. which asset will fall the most in trade talks disappoint? disappoint,e talks p.m. equities might perform relatively well because probably and treasuries, you don't have that many fed hikes priced. fed funds futures might just --y where they ar

we have heard from lvmh they are stockpiling certain products.you stockpiling, and if so, where? say, we really want a sensible deal done quickly. that, we can take the brexit scenario in stride. supply chains are largely indigenous. it takes barley, men, women him and time to make expensive scotch whiskey. it is the single biggest contributor to the uk's balance of trade and good. supply chains are relatively simple, we can export to the european union without tariffs under what other scenarios -- whatever scenarios emerge. but we have to make plans and we are handling them against the various scenarios that could emerge. but we are in favor of getting to a sensible deal quickly. matt: can you give us a little more detail as to how you are handling them? lvmh told me they have four months worship -- worth of champagne and spirits just to be prepared. ours is a product on like fresh food or fruit that is not go bad. we are sensibly planning manufacturing and will replace to bet around the world ready for some of these outcomes. grange export thro

you had lvmh, daimler, tiffany's, so i guess we should say u.s. and european companies. >> and the broader effect on the markets. so the dow is down 400 points only because we were down more than 670 points at the lows of the session. you had the double whammy of the apple warning and the ism manufacturing number coming in below expected these days, a few hundred-point swings is just feeling normal. >> it should be an exciting final hour of trade. >> it always is. but today especially, thank you, john we'll all be watching. that's it for "squawk alley," let's toss to the half >>> i'm scott wopner, stocks down sharply after a new read on the economy flashes some major warning signs. is a recession closer than you think? it is 12:00 noon, this is the "halftime report." >>> the concern out there is one and that is global economic growth. >> first, the apple fell from the tree now this >> we saw as the quarter went on, things like traffic in our retail stores. traffic in our channel partner stores the reports of the smartphone industry contracting par

lvmh, they are the big win we are in europe. that stock is surging.uggling with iphone sales in china, lvmh, not seeing the same thing. they say sales in china improved in the fourth quarter as did growth at its louis viton brand. a lot of money in china. they're just not buying i phones >>> novartis has reported higher sales last year thanks to its cancer drug. down 1.5%. >>> shares of align technology the maker of invisalign braces, the first quarter profit outlook -- one of the busiest and probably most important days for your money in a long time. why do we say that well, aside from apple, earnings last night, by the way, apple up 5% right now, here's your worldwide exchange breakdown of a date to remember this morning a few hours, we're going to get earnings from mcdonald's later on this afternoon, earnings from tesla and facebook at 10:00 a.m. this morning we're going to find out how real estate is doing. pending home sales numbers will cross the tape a few hours after that, 2:00 eastern time, yep, it is the fed rate decision. then half hour aft

lvmh comes out, huge percentage as global luxury brand, they're up close to 10%.e trend. lauren: any other companies you're liking on the list? moody's? we have, what are the other ones, cbre, a real estate company? >> sure they're in the global language of the system. fortune 500 company, you're looking for mortgage company, go to cbre for your commercial real estate needs. ♪ [closing bell rings] the best january in 30 years. that does it for the countdown. connell mcshane. connell: you're right. across the board investors awaiting details from the high-level china trade talks that are happening in washington, d.c., as we speak. president trump meeting with the vice premier of china at the white house and having that meeting right now. now cameras have been allowed in. we'll bring you comments from that meeting as soon as we get them. the market has some of them already. seemed to help the dow at the end of the day. it closes down by just four or five points as we settle in here. it was down more than that earlier. nasdaq, meantime doing much better today. in fac

from fashion group lvmh trading near the top rising 7%7%. here in france new official figures show the country's economic growth slowed to one and a half percent last year from two point 3% and twenty seventeen that was in part to the yellow vest protests which started in november. consumer spending was stagnant in the final quarter of twenty eighteen which is usually sees a boost over the christmas shopping period. ubs has downgraded its forecast for the uk economic growth saying that uncertainty over briggs it is weighing on investment and business activity. agriculture industries also bracing for a people many farmers fear the prospect of tariffs and reduced access to the e. u. market may cripple their industry. a rush has more. but what happens is family has been farming this land in wells for five hundred years the government's inability to agree on a withdrawal deal has cast doubt on his family busines. there is a very big lack of confidence in the industry at the moment because you know -- i talked to machinery dealers -- feed legends

luxury.so so lvmh and tiffany, they get on 28% of their 26% to revenues from asia and japan.y don't split that out for but we can get a little bit of a barometer. seebucks down 4% as you can on the board. also, banking their fortunes on growth, because they are expanding their one store every ew hours as we've been reporting. mobility stocks also. boeing selling a lot of planes to china. if there is a slowdown, what does that mean for those sales? citing the fically u.s.-china trade war. just a few weeks ago in late that er 2018 they said they were slashing their profit forecasts because of the u.s.-china trade war in particular. we see that falling. in addition, if we can scroll to screen, hotel stocks, got a great article today were g about how these hit. marriott and hilton, down more than 5%. ou compare that to the lowest percentage there, down 3.7% for the bloomberg, america's lodging index, you can see that the marriott and hilton, clearly the outliars here. lot of growthng a terms of chinain and rooms and development. their share of the future is some 27%. rooms develo

. ♪ vonnie: lvmh has issued an update, saying it is cautiously confident for this year. is not equipped to continue growth and all businesses. and they say that their fashion revenues have an organic growth of 17%, much better than analysts were anticipating. now a look at where the shares are trading at the close of business, off about 4/10 of 1%. this in paris. guy: absolutely, the china focus there is important for the markets. time now for our stock of the hour, shares in -- group: the most in two months. let's figure out why the homebuilder is coming out and reporting an 11% drop in orders. the company also sees 2019 as being a challenging year. joining us with details, taylor riggs. walk us through the numbers. taylor: the numbers were not good. if you come into the terminal, you can see that new orders were off more than 11% in the fourth quarter, that is the most going back six years. management saying they continue to see 2019 as being a challenging year. all this comes on the heels of of portability issues. so a macro environment backdrop that is really with a

. >> can you give us more detail as to how your handling them, for example, lvmh told us they have aboutmonths worth of champagne and spirits in the u k, just to be prepared for the possibility of a hard brexit. ivan: ours is a product unlike fruit,r fresh food and that does not go bad. so we are sensibly planning manufacturing and where we place beduct around the world to ready for some of these outcomes. largely,xport through largely through liverpool. so we are less tied to the south. are taking it in our stride, we are planning for it, and we clearly have a team that is focused on planning for all scenarios, but thankfully for diageo, we said this in our financial statement today, there is not a material impact on this company with the uncertainty around brexit. it is something we can take in our stride. guy: that was the ceo of diageo. --nie: shares of dope on shares of dupont falling today. it is expected to split itself into three. joining us with more from the earnings call is taylor riggs. taylor: a slowdown in profit. this is all starting next quarter. the net sales have fallen

lvmh down by 4% today.s down isthat because they get a little more than 25% of their revenue from asia and japan. we can get a little bit of a reading in terms of how important china is. every few hours, they are opening up a new store in china so the country's fortunes are tied here. beyond luxury and retail stocks sliding, we are seeing mobility stocks sliding. boeing we know is a big producer china.nes headed for daimler, we are seeing that. fedex down by about 3.7%. they did cut the profit forecast in late december because of a tensions that are going around the world with regard to the u.s. and china trade war. pulling up the screen one more time, you get the picture here that there is more red and red continuing. marriott, hilton, and hyatt down. marriott and hilton have a bigger share in terms of their presence in china, so they are doing worse than the bloomberg amerco's index which by itself is down by nearly 4%. we can see the future fortunes are tethered to china. these other rooms in development

lvmh reports after the close today. watch out for that from the luks know luksry perspective. switching to sectors so we can see where some of the leadership is coming from, and you have right at the top household goods. utilities are the main performers today, and you can see at the bottom we've got auto i was mentioning this is a sector that's underperforming. it's dragging down some of the german index here. there have been several down grades in that space too bmw, daimler also some of the names that spring to mind. technology, i mentioned, was some of the weak sectors yesterday. aleyes today on apple. apple earnings will be talking about that shortly we also heard from sap, the jrman tech company earlier today. a little disappointment being manifested down about 2% even though they beat on the cloud servicing business right in the heart of earnings season juliana. >> excellent thank you. as you mentioned, sap in focus today. the company says it is targeting a company-wide restrict structuring that will cost 950 million euros in the first quarter. this after the company re

now, french luxury retailer lvmh is reporting results in a half hour the street has been bullish aheade release morgan stanley sees three key issues going forward first, competition from online players, particularly in china competition from you will at that -- from ulta. they have underperformed in the luxury space so far. morgan, sending it back to you >> thank you. >>> let's get to sue herera for a news update. hey, sue. >> good morning, morgan, good morning, everyone. here is what's happening at this hour the director of national intelligence, dan coats, says north korea is unlikely to give up nuclear weapons capabilities, despite recent moves indicating it was open to such actions. he made the comments before the senate intelligence committee a bit earlier this morning >>> an annual report card of government corruption worldwide knocked the u.s. off the list of top 20 cleanest countries. the watchdog group transparency international faulting the u.s. for what it calls threats to the american system of checks and balances > denmark led the survey as the least corrupt in the world.

even though luxury stocks in europe that rely on chinese demand, lvmh, kering, down 2% in today's tradeo draw attention to the turkish lira after president trump warned that the u.s. would inflict economic devastation if they attack kurdish militants. geopolitics a part of the discussion check it out, lira dropping 1% it is still down 3.5% so far in 2019 separately, awaiting house of commons to vote on theresa may's brexit plan. as to the prospect of leaving the eu without a deal march 29th, predict.org shows 20% chance of that happening >> thank you very much. >>> let's get a news update from sue herera >> good morning, carl. good morning, everyone here is what's happening at this hour talking to the press on the south lawn of the white house before departing for new orleans, president trump denying he was an agent for russia >> i never worked for russia and you know that answer better than anybody. i never worked for russia. not only did i never work for russia, i think it is a disgrace that you even ask that question because it is a whole big fat hoax >>> teachers in the nation's sec

stocks fall after lvmh, louis vuitton, reports softening demand in china.his report goes back to october. i have one goes back to july. same thing. how could tim cook say he was caught off guard by weakness in china and the chinese consumer when louis vuitton which also sells luxury items there, and other companies, by the way saw this as early as july of last year? >> look, i think there was a complacency embedded in apple. they were a luxury brand that was recession resistant and they were historically but now that is just not the case. there is no distinction, no differentiation that will make you pay 1000 bucks or more for a smartphone. he is coming to grips with reality. i think there is a bit of spin here. trying to blame it on the trade war, i'm sorry, this is absurd. iphone weakness this, is product failure. iphone weakness persisted out of china as well. they underestimated the demand, weak demand they would have for the weak defenses. >> they underestimated in my house. we bought every iphone, everyone but me. won't get into that story. lou, what

lvmh, love to watch how the 1%ers are doing. look at these numbers. record revenue numbers here.olks. wine and spirits, organic growth, up 5%. fashion and leather, 15% per fu perfumes and cosmetics, 14%. watches and jewelry, 12% year over year. 1%ers are doing well china wasn't as bad as what everybody thought it was remarkable numbers out of lvmh the bulls are looking to mr. powell and to the chinese delegation on trade to maybe keep the rally going on rates, we want to hear that patient. he said the fed would be patient in december. we want to see that incorporated into the commentary. on the balance sheet, everybody is obsessed with the balance sheet. unwinding the balance sheet. commentary that it is not on auto pilot, something like that is what everybody wants to hear. finally, hey, is the ipo market finally reopen remember all the craziness with the government being closed? i think we might have an ipo pricing on nasdaq tonight. we're waiting to make this clear. but right now, looks like new fortress energy will price tonight. will try to price tonight. 20 million shares o

a lot of focus on lvmh's earnings, citing strong momentum in china across multiple units from spiritshere, though is cautious about the rest of 2019. you're looking at shares of lmvh up 7%. it's the best day since july of 2016 i guess the big question is whether this is a company-specific story or whether other companies like caring and beurberry are seeing similar strengths. >> maybe not as bad as feared on the chinese market >> exactly >> thank you >>> take a look at shares of apple, speaking of china, as we head to break. they're rocketing higher today off the back of its results, almost up 5% is the worst over for this stock? we'll tell you whaticot m ok told cnbc about the quarter and china's impact on sales, next. ♪ (vo) here's a question. was it necessary to create a luxury car more teched out than silicon valley? with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪ your favorite restaurants now it doesn't matte

to 5% other sectors like the luxury retailers that depend on the chinese consumer are down today, lvmhe china trade index which cnbc has compiled that houses a number of companies that rely on sales in china or generate sales in the country and you can see it is trading down but relatively flat. back to you. >> thank you seema moody. >> check please. >> time for check please. >> the government shutdown the longest in history, 23 days and counting and so here's a stat that came out last week but it is worth pondering as we enter the longest shutdown s&p estimates that if the shutdown lasts two more weeks including this week, it would cost the u.s. economy 6 be there. $6 billion which is more than what trump, president trump, is asking to build a wall that's really something that everybody should be thinking about as we go thu therough the negotiations, what is the cost of the american economy, the wall and federal workers without paychecks. >> i asked one of our guests whether there hasn't been an idea of setting up a commission, like simpson-bowles to look at border security and if you

watches, swatch, not so much they're not buying watches lvmh, they are buying hand bags. what is going on here? the china consumer seems to be strong in some things and very weak in other things >> it seems on the luxury and semi-luxu semi-luxury goods it's carried on a lot of strength in china. when we look at the broad data, we're facing a slowdown in consumer confidence in particular and clearly any trade barriers that come up are going to weigh on that as well it's a mixed story with china. those who have a huge amount of their sales already to china, i think, are being hit a bit more than those trying to grow. >> it must be difficult to parse through all of that. our assumption just on the outside and looking at the micro-data, everyone is taking about the slowdown, and yet, some companies point to a robust not in chinese growth and chinese consumption. others don't when you are thinking about analyzing a company, how do you account for the china macro? >> the main point there is trying to divide up between things which are consumer discretionary and consumers staple

deborah: i think we need to think about brands like louis vuitton, given the size of lvmh and we needr across europe. human -- hugo boss, high exposure but generally across these companies around 5% to 6% of their sales would be exposed to france, which is the kind of mix we see for the industry as a whole. anna: the break in, senior luxury goods analyst for bloomberg intelligence. matt? matt: we're at the stock of the hour now. let's look at daimler. maybe things change a little in this story. the stock has been down after a 'sport chinese billionaire group cut its 9.7% stake in daimler in half. the chinese automaker sold half of its stake through morgan stanley to an identified buyers and as a result, daimler has fallen. although we are now seeing reports they are denying cutting their stake in daimler. the stock is still down half a percent now, as you can see from the graphic dashboard and a lot of great information including the key insights about valuation, estimates, funds holding, etc. always check out gd when you can on an equity. bloomberg terminal users can interact with ch

lvmh said there was a border crackdown happening.traveling abroad coming home were getting their bags searched more than normal and getting reprimanded for getting things past customs. ever since then, more things have popped up that have complicated things. now, with the apple announcements, we have reason to doubt the chinese consumer is willing to spend on luxury as they were before, not just the tourists traveling. a lot of luxury brands are going directly to china to open stores there because they are banking buying on their home turf, not just abroad. joe: we have earnings season here before we know it, what are you most interested in seeing? wethe next couple weeks, will find out all of the holiday sales numbers. it is such a crucial season in retail, let's see how they do. caroline: kim, great to get your perspective. that is all for "what'd you miss?" for this week. "bloomberg technology" is up next. joe: have a great weekend. this is bloomberg. ♪ ♪ emily: i'm emily chang in san francisco and this is "bloomberg technology."

lvmh, struggling. same clientele.eople who buy expensive iphones are the ones who buy that as well. scarlet: walking around in their coats. emma: not to, but another story there. lisa: we have just stereotyped people. thank you so much for being with us to let's get caught up on what the markets are doing. it has been an ugly day. it was not as ugly as earlier. the dow jones down nearly 2.5%. the dollar still losing against the yen. down 1%. look at the 10 year treasury yields. nearly a one year low. --n as people are expecting now they are expecting a fed rate hike, gold is gaining a haven amid the storm. scarlet: vc money going into the yen, money going to gold. clearly apple is the catalyst. one of the catalysts for today. that's along with the numbers which puts a spotlight on tomorrow's jobless numbers. stephen made the point that it is a lagging indicator but that -- but nonetheless, you will want to see how the fed interprets the latest data because -- lisa: up 22%. down from earlier highs. after the purchase f

we're watching, fraud or looking pretty good in hong kong, it has come through as a luxury favorite, lvmhuxury demand, elements that could impact the performance include the softening chinese economy. tencent is a little weaker, we have seen tech stocks take a hit and also watching china -- an interesting story starting to see the dairy companies look for operations internationally including some of those milk farms. we're looking forward to the afternoon's business in tokyo. cutting itsoj inflation outlook. the latest on the reopening next. this is bloomberg. ♪ place, the xfinity xfi gateway. and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. 859 in dubai. wall street appeared losses. after the white house denied it canceled talks with china. they had turned down talks because of a lack of progress. very kudlow said the report was not true and that meetings with china's vice premier will be "very, ver

result.saw the lvmh they had been rising strongly in china. people in a similar position as i am have the same result. so, it is a by fugacious of the market. overall the market may be moving sideways but the luxury market is certainly rising up very well. that mean you expect further good performance from the leasing market this year in 2019 in china? ronnie: 2019 will be fine for us. but 2020 will be fantastic. 2019 is because we have a lot of properties that are under refurbishment. and we did one in shanghai, went up the first share 20%. the second year we went up still 12%. i think we will see the same thing in shanghai. we have about 8 million square feet of space coming on stream within the next 12 to 24 months. they will certainly bring a lot of revenue and eventually profit as well. shery: how much will your business be helped by potentially easier policies coming from the chinese government, not to mention eventually more dovish federal reserve? they are think of that doing the right thing to stimulate consumption on the part of the

. ♪ rishaad: the company that used to be called louis vuitton, now lvmh, sees no let up in global demandgoods as high rollers keep buying louis vuitton backs and cognac. the ceo spoke exclusively to us about the current state of luxury in china. >> this quarter was growing faster in china for our product. the main reason is the desirability of our products, whether louis vuitton, christian dior. at louis vuitton, for instance, have been created by a fantastic designer for the woman products, and another for the men products. these new products are arriving in china, where the taste of the customer is more and more sophisticated. before the end of the year, before christmas, so it is a , the desirability of the products. >> argue seeing chinese consumers spend more asterisk or in mainland china? there has been a trend spending more at home and less on holiday. >> right now they are spending a lot. it is white we have a beautiful maison for our brands in china where we show the products, where we have a different design from city to city, and we have a good team to be in touch with the con

lvmh also very much concerned. why? because the chinese were set to become the second largest consumers of luxury goods. supposedly, over the next course of 5 to 10 years, maybe 45% of luxury goods being purchased by chinese. if their economy is weakened, clearly they're not going out and buying. >> can we link this to president trump's trade war? >> i don't think you can directly link it. the trade war exacerbated a slowdown already in effect in 2018, will continue this year. >> china will strike a deal? >> i don't know. what do i know? >> a lot more than most of us. interesting. really interesting. thank you. we're in that 90. day freeze as well on the trade war so we'll see how negotiations go. thank you. >>> a 14-year-old boy accused of causing a deadly crash in houston is now charged with murder. police say the boy was driving an suv tuesday as he and two teenage passengers threw eggs at cars. a man in one of those cars allegedly pulled out a gun and chased them. police say the teen driver than ran a red light and

nessee when we split this things up in terms of what is positive -- lvmh, by the numbers, revenue beati mentioned, fashion and leather clearly -- 17% versus the estimate at 10.5%. fiscal year profit almost in line, 10 billion euros versus the 9.9 9 billion estimate. this is a good start for 2019 for the company. ceo saying trying to put a little bit of a reality check, saying could these good times continue? he says no but the year is going in a very good direction. haidi: ramy there with the latest earnings. next, we are talking tech on the back of the apple earnings. the prospects of semiconductors advisors president is with us. this is bloomberg. ♪ shery: this is daybreak asia. hours,apple rose after adding to the more benign the downside. the semiconductor index is up more than 7% this year, despite a number of looming headwinds. let's talk with robert. the last time we had you on a few weeks ago, we talked about the down part of the downfall for the chip industry. could today's result out of apple, which were not although but a bit of a head stretcher as to why the stock move as m

there is lvmh trading down on this. ams is a big supplier into the apple supply chain.is trading down quite sharply. we are getting a little bit of data. let me bring you that. we are getting the market construction data out of the u.k. coming through bang in line with estimates. prior 53.4. from a .ore difficulty generating here is viviana or taught oh. theeo tim cook saying corridor just ended. apple did not foresee the magnitude particularly in greater china. congressional leaders and president trump have failed to strike a deal to end the partial shutdown. saying they will still work with white house. they plan to end the shutdown, but without funding the border wall. dropped production by 30 barrels per day. that is the sharpest pullback in nearly two years. leading member saudi arabia trimmed output in december. libya and iran seeing deductions of more than 100,000 barrels each. investors remaining concerned that the cartel won't cut enough to make you not -- up for the surge in u.s. shale supply. manhattan home prices falling in the fourth quarter. the median les