shares of lvmh, caring, all fading to the downside.nt trump said he made a lot of progress in the meeting with the french president emmanuel macron, but no specifics were discussed. , head of luxury goods equity research at deutsche bank has stopped by to give us the benefit of her wisdom about what we should look for when it comes to the story developing. lvmh is up nearly 50% this year. a very good run. today it is down 1.8%. i'm assuming by the market reaction investors are not particularly concerned this trait spat between france and germany will go anywhere significantly in terms of the bottom line at lvmh or any of the other stocks. francesca: i think this will be seen as noise for the moment, nothing to worry about particularly. this is also to be seen in the context of the strong performance of the luxury stocks over the last 12 months. it is to be seen in the context of the fact that luxury today trades at a 53% premium to the you are a stoxx 600 which come -- to the euro stoxx 600 which compares to a 10 year average of 38%. i

lvmh adding the most weight on the upside. the close is next. bloomberg. ♪ guy: 30 seconds until the end of regular trading in europe. a mixed session. the cac 40 trading up. london is down. the miners are a big factor. we will talk about glencore in a moment. the german market is softer as well. volume is ok today. you do not need to factor that into your thinking. for most of the session we have been in decline and the stoxx 600 still above a difference in the performance in your quite stark. let me show you what is happening there. this is the ftse 100. it is down. the pound is a factor. the pound continues to climb. we are at 1.31 and change. we are looking at 1.32, though that is a babe line in the sand. -- that is a big lie in the sand. the cac 40 is being supported -- lvmh the biggest gainer on the upside. caring and montclair have been the real story. the dax down .5%. let's show you what the sector breakdown looks like from a retail point of view. from a construction sector it looks good, but these are not heavyweight sectors. utilities

francine: so lvmh bought tiffany for more than $16 billion.h luxury goods giant will pay for the biggest luxury goods deal ever. it will raise the jewelry profile and give more access to the u.s. consumer. $16 billion is quite a figure. can they afford it? >> they definitely can. lvmh has a market cap of $200 billion plus. they have plenty of firepower. this is an all cash deal. when they came out, everyone knew they were going to have to bump. some analysts were expecting 140 plus. the reality is, it is a lot of money, but for lvmh, they can definitely do it. abigail: it is a multibillion-dollar deal that will reshape the retail brokerage business. charles schwab agreeing to buy td ameritrade. the all-stock transaction is valued at about $26 billion. schwab is capitalizing on the industry shock it created last month by cutting commissions on u.s. stock trading to zero. >> this is the first foray in the discount brokerage industry space. the general feeling is that it probably will go through. the question is how long it will take. some analys

the arnault family behind lvmh and their big rival which controls kering.n assembling these portfolios of brands. that is driving this consolidation. anna: good morning. we see other stocks moving in the back of this news flow, as we did when we talked about tiffany being bought by lvmh. burberry moving higher. hugo boss moving higher. hermes, as well. one leads to speculation that others would be snapped up. >> we had the tiffany deal days ago. now news of a another big one. everybody is looking for what can be next. what is the future for these brands? especially if we are looking at the possibility of a global recession here. is that stopping the old coric from scoop -- ultra rich from scooping up moncler ski jackets and the like? >> these brands have been extraordinarily resilient to any kind of shocks to the system so far. you look at hong kong over recent months and the protests. theys hit watch sales, but are still selling lots of ski jackets. it does seem like they are pretty recession-proof. matt: i hesitate to say ski jackets. and it isan apre. >>

lvmh, luxury doing fairly well this morning.f stocks that are maybe something you would have bought someone for christmas. adidas, a gainer this morning. another luxury goods maker. ers and metals as well as oil. royal dutch shell, bhp billiton allrio tinto, glencore, helping to boost the stoxx 600 in points position. roche moving up right now, one of the biggest stocks on the index. on the downside, one of the more defensive stocks, british american tobacco off 0.2%, taking points away from the nasdaq. some other defensive stocks there. diageo on the downside. an interesting moment to correct myself. earlier i said, i stuttered, said this was a stock on the nasdaq. i looked into the bloomberg, the primary exchange for the u.s. issue of qiagen is the new york the nasdaq.ge, not it's a big loser today in europe, as it was yesterday on the nyse in the u.s., down over a fifth of its value, as it says it will remain independent. qiagen in europe down more than 20%. a look at your markets. the stoxx 600 opening higher and european ma

it is an italian brand it is the consolidation we've seen with lvmh and tiffany withstand alone brands like berrbury >> within gucci, they have their own ski wear they are already producing why venture into moncler what is the value there? it is not like in lvmh and ti tiffany where they are branching into a new sector. >> the luxury ski wear is expanding fast especially in the u.s. market. as you say, it is a sector that is doing well. they want to develop moncler has a single offer this puffer jacket is very recognizable a good or bad thing. the one type of product brand makes them also a very one off brand. the collaborations, they've been doing very well. doing collaborations with new designers. they stand out a bit compared to other luxury groups. >> thank you for breaking it down for us. very big day for luxury stocks i want to bring you some news as well there is the euro group taking place place. they say they have reached an agreement in prince spal on the package of esm reform. the treaty will not be signed until the first quarter of 2020. there was some expectation that this

lvmh, just buying tiffany. they don't discount. they have global reach that is impactful. look at off price. they surprise you all the time with the experience and they are capturing different generations. i agree, brands have to say what they do and do what they say and they attract the consumer on a repeat basis >> are there trends with he should be watching in 2020 play out? we've spoken about a supposed barbell in retail. you mention lvmh, the luxury high end doing pretty darn well and then the dollar stores and discounters doing well do those continue? are there other ones we should by watching? what will be hot in 2020 >> i think there are new trends out there. new channels whether rental, consignment. subscription look at stitch fix and that they are capturing new customers. look at rental even companies like nordstrom are testing rental look at consignment. it is only going to grow larger, sustainability it means something in every category i think we'll hear more about it it has become more important to the consumer and retailer. >> you mention consignment recomme

lvmh in the process of taking over tiffany. it will be interesting to see if that puts a wrinkle in that takeover. david: they need their stock to stay up. many thanks abigail doolittle. now we turn to mark crumpton with first word news. mark: president trump has another round it is legal fight with congress over financial records. a three-judge panel ordered deutsche bank and capital want to turn over the records to lawmakers. the president can ask a full appeals court to consider or reconsider this decision, and if that does not work, he can go to the supreme court. in the meantime, the president says he wants to work out an "usually beneficial tax" if the u.s. cannot resolve a digital tax dispute with france. he made the remarks in a meeting in london with emmanuel macron. the u.s. may slap tariffs on nearly $2.5 billion of french wine, cheese, and other products. the move would retaliate against french levees on american tech companies, including google, apple, and amazon. france is the u.s. will retaliate if tariffs are im

lvmh cross borders and bought tiffany. that made sense to most everyone is that the exception but not the rule going into early 2020 with these cross border deals >> it's been the rule fin past in 2019, as we correctly said tr cross border was down materially i'm more optimistic for 2020 less because geopolitical not connected to that but because european companies are realizing if you are not participating in m and a you're getting left behind because again talking about the top 50 companies, ten years ago, less than half of them were from the u.s. >> so it's not like ceos all of a sudden have an abundance of confidence it's that they've got to do this to don't expand their business >> that's a very good way of saying that. in fact, that's the amazing thing all through this year. consumer confidence has been really high. ceo confidence not so good but sometimes when you go into uncertain times, you want to go into them being stronger and having more scale and having the synergies that you get being deployed to strengthen

asked month, lvmh agreed to buy tiffany's for $16 billion.al motors will join forces to build electric batteries for cars in the u.s. the batteries will be built in ohio. both companies will invest $1 billion each. later today, we will speak with general motors' ceo at to neglect a.m. here on bloomberg tv. over to italy, where authorities fiat chrysler underestimated the value of its business by $5.6 billion. that could result in a $1.5 billion additional taxes. fiat chrysler saying it disagrees with the government report. it is confident it will see the bill reduced. talks to mergein . alix: this is "bloomberg daybreak." by alix steel s&p futures up 0.3%. we had some potential conversation continuing between the u.s. and china. that seems to be the overwhelming theme of the day. retail in general in europe up almost 1%. you have potential luxury mergers, like aston martin. guccive the maker of looking to take a stake in another luxury retailer. in other asset classes, not a lot of movement. the cable rate up by 0.3%. to him as him build. it

announced champagne is now on the list and lvmh was slightly hit this morning. that comes after the investigation that started in july when the french parliament announced the tack on $25 million of those made in france following president macron trying to come to a european census france decided to go its own way and voted in july when the u.s. started the investigation and had some hearings with spokes people from facebook, amazon and google to discuss whether this was an unfair limit to trade they came up with the conclusion to put out this list where champaign and leather goods are on the list. the countries accepted to put the oacd in charge of the global digital tax and president trump was on board with this now there was a truce of 90 days they were meant to come up with their proposal in 2020 the first meeting will put up their conclusions when president trump will decide if and when he imposes these tariffs that have been imposed by the trade department he'll decide whether the progress is good enough or the proposal on the table is good enough you reme

lvmh to the downside this morning as the u.s. $2.4 billion on tariff s on french good after president trump and emmanuel macron could not agree on taxes for the technology space. everything from handbags, wines, champagne could come under fire. , they upside, easyjet plan to make their debut back to the ftse 100. we will get that final news today after the close. unicredit planning a share buyback and to shed 8000 jobs, 9% of the workforce. expect to behey below expectations, they did see a weaker box office but did see higher synergies. people are looking forward to the "star wars" film coming out before christmas. anna: everything we need to watch out for in the movie theaters before christmas. donald trump takes center stage in britain's election campaign. u.k. opposition parties use his johnson will be helping -- hoping the u.s. president does not take the bait. returns out of the u.k. alexa mike everybody else, give us base case scenarios what happens in the u.k. politics and brexit? steen: my assumption is boris troublegoes

european luxury stocks lvmh, richemont, hermes on the weakside a little bit of a bounce off the lowsut an issue. a lot of new lows. oil is up 20%. apache, whiting, some of the smaller energy names all hitting 52 week lows today so remember what's moving the market the fed is not tightening. that's a big mover the trade war, we don't know how to characterize this, is it an uneasy truce will the markets be satisfied with no new tariffs on december 15th, keeping the existing tariffs, and no deal going into the new year the market is struggling with the concept now. if tariffs, additional tariffs are on december 15th, that is not priced into the market that would be an additional negative the global economy, a great note out this morning a faint pulse. that's what you mean when you say, okay, we're bottoming but are we really rebounding it's possible you could get an l-shaped recovery and not a u-shaped recovery. two things we're grappling with. finally on the steel stocks, a big deal announced cleveland cliffs buying ak steel. it makes sense different parts of the steel business but can

it is a welcome development for lvmh, which is acquiring the for $6.2 billion.es rose 1% to 3% in the same period compared to last year. shoppers in china led the growth. tiffany has been expanding in that market with a revamp of a flagship store in shanghai. the turnaround in tesla's stock is looking more credible, according to one analyst. he has raised his price target $270.0 from he says strong demand and profitability on on a strong upward to victory. that is your bloomberg business update. this is bloomberg. ♪ [ dramatic music ] this holiday... ahhhhh!!! -ahhhhh!!! a distant friend returns... elliott. you came back! and while lots of things have changed... wooooah! -woah! it's called the internet. some things haven't. get ready for a reunion 3 million light years in the making. woohoo! -yeah! ♪ abigail: from new york, i am abigail doolittle. markets have had a day and a half off. we are looking at small moves for the major averages. can see the dow up about .2%. heavy true for that tech nasdaq, up about .7%. if we take a look at stocks on the year, it is b

luxury giant lvmh is having a lousy session right now, down about 1.75% as investors fear that salesits french leather good company, louis vuitton, are at risk from u.s. tariffs which president trump says he's going to impose in retaliation for france's digital services tax on u.s. tech giants. the threat is not just hurting french companies. american high-end brands like tapestry which is, of course, the parent company to coach, tiffany -- which has been bought by lvmh, but that deal has not yet gone through -- are all down. tiffany just about gnat at the moment -- just about flat at the moment. what about facebook and google parent alphabet? they would be subject to this french tech tax. facebook's down a percent. piper jaffray started coverage of both names with overweight ratings. the firm says despite the negative noise surrounding the tech giants, listen, it appears users and advertisers are showing no sign of walking away from either company. so investors are either sticking with the companies or buying a bit more. netflix extending losses for a second straight session as citi

own luxury handbags but doesn't want to pay full price. >> but here's the catch, right she mentions lvmhmention names on the luxury side here. those are names that can possibly be really disrupted by what's happening with real real, poshmark, all these other ones because they sell new products to consumers that's how they make their money. >> but they don't have to be new. they could be like worn a couple times. >> let's say you want a louis vuitton back you can go to louis vuitton. it's a big back, right it's a very expensive one. or you can go to one of these sites and maybe get a real one there's obviously some questions about that but recommerce that's this whole concept of secondhand selling that is a disruptive force right now because these folks who sell new products are now having to contend with those guys. >> seema brought up because let's say a berken bag, when i've heard about whatever they -- >> beer kin may be -- >> beer can. >> i've seen the country club right here, they had a wine issue with a woman you hear about that? she's suing the waiter everything's disaster. those

toughny recently agreed to sell to lvmh for $16 billion.tock down a fraction. >>> the merger between vooian ce cbs closed. the two media companies are united after a decade apart. the new company expected to focus on content as rivals like disney abapple and amazon ramp up their own streaming and original shows. the shares rose a fractn to 40.86. >>> there's been a lot of news in the sports business lately. as we reported last 19 hedge fund billi steven cohen is in talks to buy a controlling stakes in the new york mets. there are reports that the yes network home of the new york yankees may stream games on amazon. the nfl is expected to file a h the supreme court that could alter the way the league sells the broadcast rightsts to games and change the way you watch those games. > and the hig court's decision means billions of dollars are at stake. drew grant with the morad centaw for sports at villanova. joining us to talk about that. welcome, andrew ne to see. >> you good to be with you sue and bill. >> currently they pool the telecast righ

lvmh, ibeing bought by always was told that tiffany had large margins.uld you do with moncler? moncler's margins are in the mid 30's. high-margin, high operating margin. ,hy you are buying moncler where you think about where , the scale could take it to that level. ncler, ave this mo quarter of its q2 in terms of its size, its stronger period. that could hamper it a little bit. if it is -- it is not about margin. initially i think it is about topline growth and economics of scale, and from the caring side side,-- from the kering scale.d be having that we could see this around 13 billion. . that would be about 23 times ebitda, and we could see it getting to that by selling out that stake in houma, which is still 15.7%. francine: deborah, thank you so much. morilla-giner stays with the he holdoming up, ken onto his lead in the polls -- can he hold onto his lead in the polls? this is bloomberg. ♪ francine: economics, finance, politics. this is bloomberg surveillance. unveiled aon has list of pledges he would roll out if he wins. funding, legislation on immi

a rebound in sales for tiffany in the run-up to christmas is good news for lvmh. growth. in the asia-pacific region, they ,ushed a 5% to 7% increase following a declining profit in the nine months before december. tesla lining up financing in factoryr its new gige as it plans to begin delivering the china s3. plunginging, keygen after they ended discussions on a potential takeover. the dutch company says proposals were "not compelling" and will continue as a standalone company. francine: hong kong bracing for more disruption over the holidays. protests over christmas lead to clashes between demonstrators and police with hundreds hurt. demonstrations have been scheduled for this weekend but the next major rally is wednesday, new year's day. joining us is karen lee. give us some perspective when it comes to protests in shopping malls, because unlike the u.s. where the malls have seen declining traffic because it has been displaced by e-commerce, malls play an important role in hong kong. they are gathering places, meeting places for people, and through ways because

last month, tiffany agreed to be bought by french luxury giant lvmh.. >> in this industry, real value added comes from the increase in sales and expansion of the brand. wayink that is really the for tiffany as it has been for all successful luxury brands. data -- nordea has agreed to buy assets from societe generale. they are buying in norway-based company focusing on equipment finance. they say it fits into the plans to focus on core business in scandinavia. one has agreed to buy and additive unit from derek -- cla ritan. the u.s. company says it will generate millions and cost savings. that is your business flash, anna. anna: thanks very much. the 31st of december will mark 20 years of power for vladimir putin. as he prepares to hold his end of year news conference, and reordering -- annmarie hordern is here with a look back at those two decades. he fought conflict on multiple fronts and outlasted all other major world leaders. but three things worth highlighting i want to discuss. the norde signed stream 2 deal with germany and now we are just weeks

french conglomerate lvmh has agreed to acquire tiffany for just over $16 billion. right.of big stock movers. we just talked about all the stock moves. it is time for the stock of the hour. you are looking at korea. haslinda: you bet. down about 5% when the benchmark is on the rise. 22 times the average for this time of day. it is down 24%. here is why. it has been reported that the government is getting ready to by 2023.s 18% stake that will help complete the privatization of the unit. from what we know, the korean government plans to cash out of financials regardless of the stock price. in terms of recommendations, 20 .uys, in terms of credit suisse five holds, one cell. it is in your bloomberg. david: great stuff. lots of big movers. the broader read as we head into the lunch break back to september highs in the chinese benchmark here, the big movie this year was "the avengers." pertains to hong kong, we are looking at the hang seng back to the highest level since july. it is risk on. we are headed into the lunch break. plenty more ahead. ♪ [ dramatic music ] this holid

there is a potential lvmh is a good example of a smart deal. 20 and going forward is very rational, very smart, very strategic and occasionally quite bold. whether it is in the retail sector or across all sectors, we will see dealmaking with those characteristics. nobody is going crazy and swinging for the fences and doing things where we scratch our heads and say what does that mean, why does that happen? ed: the reason the retail story is so long in the tooth -- what are investors looking for on a fundamental basis? it is clear there are haves and have-nots. there are winners and losers in the retail space. the experience of walmart or target versus some of the other market businesses shows that. investors are looking for a strategy. anthe end, you cannot do ak-47 and shoot everything you see and hope something sticks. this is long-term strategy and how you deal with the fact that this year 13% of black friday sales are online. that number will grow. many people i know do not walk into a store this time of year. that will grow. there has to b

it is a welcome development for french luxury conglomerate lvmh that acquired the american brand fors last year, sales rose 1% to 3%. china leading the growth. that is your bloomberg business flash. david: time for today's bottom line, where we look at companies worth watching. it is not just tiffany's we are looking at, is all of retail. just before christmas i talked with brian moynihan, who said things were looking pretty good. brian: i do not think they do it because of the consumer. last time we talked we are talking about the year-over-year growth rate for consumers. it is closer to 6% now. holiday spending is up digital -- up double digits from last year. you are seeing it through cyber monday. great discussions about how many days we are up to in christmas and thanksgiving. even halfway through the period, we are seeing the growth rate up 6% year-over-year. there's a lot of other spending going on. we feel good about the consumer. that is two thirds of the u.s. economy. it is as big as china's economy. those are big anchors. you put that together, that is a big part of the wo

in paris the worst performer in the cac 40, l'oreal and some of the luxury stocks like lvmh are all down this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. this is the european close on bloomberg markets. let's check in on first word news. here is viviana hurtado. courtney: we begin with them a viviana: bloomberg has yearned -- has learned adam schiff and jerry nadler are likely to be named -- that is when the houseboats on articles of impeachment. more signs of a rebound in the u.s. housing market. startedber, homes rising 3.2 percent. application for building permits hitting the highest level in more than 12 years. this year the fed cutting interest rates three times has helped housing. u.s. defense secretary mark esper suggesting turkey to be on a collision course with nato. the turkish government has threatened to close two critical nato bases and nato -- and as turkey's purchase of a russian-made missile system. -- he's president says if will retaliate. workers across the country's labor force walking off the job joining the does care week-old -- joining the two week

lvmh and l'oreal also contributing to gains. in the dax, health care stocks, but it is a mixed bag.esources doing pretty well across europe. one of the companies trading in france, helping to move that index higher. let's move into some of the individual movers. as you can see. just eads in london up. it now looks like more than 50% of the shareholders will agree to just eats being acquired by takeaway.com. that is putting just eats a little higher. the stoxx 600 up .2%. i want to point to the bounce we are seeing in the british pound, partially to do that to the british pound but also the dollar which is having a difficult day against the euro as well. let's take a quick look at the united states. seeing gains but they are being pared. the s&p 500 up more than .1%. money flowing into the treasury with the 10 year yield down to 1.87. we recovered after that massive drawdown. more than 5 million barrels of the drawdown in december 20. crude is holding on around $61.75. the dollar index flirting with the 97 mark after the bounce yesterday. let's take a look inside the s&p 500. amazon.

tiffany is reporting a rebound in sales, a welcome develop it for french luxury conglomerate lvmh, whichquiring tiffany. sales rose 1% to 3% over the and year between november 1 december 4. tiffany has been expanding in china with a fly chip store in shanghai -- with a flagship store in shanghai. there is a rise in maritime crime in the shanghai strait. law enforcement in that area to step up patrols. six unauthorized people were found in the engine room of a tanker. 30 incidents have been reported this year. that is your latest bloomberg business flash. still ahead, bowing in more trouble. a new batch of messages has been turned over to the federal aviation administration on the develop at of the 737 max -- the development of the 737 max. this is bloomberg. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the

lvmh's tiffany takeover.re, walgreens may get scooped up in the largest private equity deal, at least according to those in the know. and we break down kkr's possible $70 billion leveraged bu

your to date, lvmh up 60%. luxury stock is doing really well, bringing the cac 40 to a 20 year high. this in spite of renaud's performance. of course, carlos ghosn back in the news today as he flees japan and hides out in lebanon. -- $42.18 for renaud. adidas up as well. had anxx 600, all told, excellent year, and the best performer was lt's -- was altice, up 230%. this is bloomberg. ♪ ♪ from new york, i'm vonnie quinn. ."is is "bloomberg markets let's check in on the first word news. here's courtney donohoe. courtney: there is still a lot of mystery about how carlos ghosn escaped from japan and ended up in lebanon. chairman saysault he was escaping a rigged justice system. allegations faced of financial crimes. it looks like it is a done deal. president trump said he will sign the first phase of the u.s.-china trade agreement january 15 at the white house. deal calls for china to buy more american farm goods. in return, the u.s. will lower tariffs on some american products. the president plans to go to beijing

to the cac 40 again because we see some of the best performers where the likes of the luxury stocks lvmh worst performances in renault, down 28%. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. this is "bloomberg markets." it's been a blockbuster year for markets. let's get into what happened during the year with mike reagan , bloomberg senior markets editor. we had a blockbuster year here, and in europe as well. we were just talking about the cac 40 at a 20 year high. what kept the market going all year? michael: once again, it is sort of the same story, tech and communication services. diddotcom, the faang stocks really well. apple had a tremendous year. a pretty broad-based gains all around. you remember how weak we started the year after that volatility at the end of 2018, but clearly, what drove this last leg is the optimism about the trade deal. we do get president trump tweeting about signing a trade deal, and not much the reaction in the markets. you can interpret that as the good news being priced in. i do think there's the potential for trade headlines to b

lvmh's tiffany takeover. and still looming out there, walgreens may get scooped up in the largest private equity deal, at least according to those in the know. and we break down kkr's possible $70 billion leveraged buyout. jason: stocks, bonds, and a bit of basketball. wall street is looking at sports betting. carol: and we have amtrak's turnaround plan. you may not like it. jason: here is joel weber on the issue. let's start by talking about trains. it's a big travel week. maybe people taking a train, flying, but amtrak is in a bit of a pickle. joel: amtrak has been a money loser for years. it has a new ceo who came from the airline industry, and devin sat down with him to talk about his plan. a lot of people who are amtrak fans don't really like this plan of his. but it could lead amtrak to be profitable. carol: delays, delays. never on time, right? jason: it is richard anderson, the former ceo of delta, not making a lot of friends out there. maybe some people making friends, or at least feeling better abou

but it's not just nike there are many consumer facing companies from starbucks, proctor and gamble, lvmh, i'm sure you like to shop at these places marriott from the hotel side of things what these companies have in common is a laser focus on the aspirational chinese millennial that has a this affinity towards western brands when you're living in a country with $1.4 billion people, experts say the reach for status is a real thing and that's something all these companies have in common plus, they're expanding their retail footprint nike, take a look at starbucks it has about 4100 retail locations inside the mainland. it's expected to get to 6,000 by 2022 and this is not so much to generate sales but as a way to increase their brand recognition. >> thank you >> go to china now and shop and drink coffee >> i want to talk about starbucks. we don't have time to do it, but i was in shanghai it's real issue. i wonder about certain brands that represent the united states whether this is going to help or hurt long-term don't go anywhere, folks there's so much more to talk about including this >>

lvmh, and other companies doing well with the global concerns in trade taken off the table.k at some of the stocks moving. coming up, we get the business reaction to the u.k. election result. we will speak to the director general, adam marshall and see what he thinks about boris' big win. that is next. this is bloomberg. ♪ francine: a landslide win for boris johnson. the prime minister's gamble on an early election has paid off. as a result, the markets really changing and the pound surging this morning. i am delighted to be joined here at westminster though it is pretty cold -- with me is adam marshall. thank you for joining us. stocks are soaring. because ofw if it is the victory of boris johnson or if it is because the specter of jeremy corbyn is gone. the prospect of significantly higher taxes is not what we are going to be seeing from the next government. businesses also want to see more detail from the conservatives now that they have won this landslide victory. there were not a lot of details. francine: what do they want to know specifically? the relationship between

the jeweler which is set to be taken over by lvmh reported flat quarterly sales. >>> making the retail knife list, express, which five below, those two reporting sales that are lower. wayfair down .75%. five below, where everything is $5 or below, up 4.25%. we also have express spiking dramatically, up 25%. you heard charles just a minute ago talking about restoration hardware. look at this. it's hitting a record. after the furnishing retailer raised its forecast. this is just the intraday picture, up 11.9%. of course, this is the one that warren buffett just took a very big stake in. let's get to the retail lumps of coal. michael's and kroger both missed on earnings. those two stocks are down. kroger, down about 3%. michael's down 12.75%. etsy down about 3%. they got slapped by a morgan stanley downgrade. the online handicraft website cut to underweight on concerns of sales tax head winds that might offset free shipping benefits. i have bought stuff on etsy. i'm liking that stuff. >>> this is a fox business alert. closing arguments may begin in just hours in the elon musk so-called pe

that is good news for lvmh, which is buying the newest brand for over $16 million.ery comes after a decline in profits. tesla has lined up $1.6 billion of financing for chinese banks. it has a new gigafactory in shanghai as it prepares deliveries of model three sedans. the electric car maker closed at a record high yesterday, over $430 apiece. that is your bloomberg business flash headlines. matt: selina wang in beijing with your business flash. european health care stocks are on track for their best year since 1997. analysts see plenty of reasons for momentum in 2020 despite the inevitable noise around pricing in a u.s. election year. areas to watch include expansion in china and innovation with new technologies such as medical equipment. in europe, bloomberg intelligence things pharma will benefit from investors rotating in defense of sectors as the economic outlook remains weak. di things astrazeneca and novo nordisk could both see double digit earnings growth. joining us now is tim lowe from munich. whatf the key themes -- are the key themes heading into 2020? t

tom: you obviously will be part of the lvmh family. that deal is likely to close next year.k that will change the strategy? >> it will be of great satisfaction for existing shareholders of tiffany, but also thinking for the future of the brand in terms of growth, in a line that has always been the tiffany line, the leading luxury jeweler in the world. tom: where are the obvious synergies you see? >> in this industry the real value comes from the increase in sales and expansion of the browned. and i think this is really the as it has been, for all successful luxury band -- brand. the takeovere once happens and is completed, do you stay on as ceo? >> this will be in the choice of the founder. shery: the tiffany cl speaking exclusively to tom mackenzie. don't forget a few are away from your screen you can always find in-depth analysis and big newsmakers on bloomberg radio, now broadcasting live from our studio in hong kong. listen on the bloomberg app or bloombergradio.com. this is bloomberg. ♪ ♪ this is daybreak: asia. i am shery ahn in new york. paul: i am paul allen in sydne

world's most to miss recording artists, but also this year the first woman to head a fashion label at lvmhvuitton's luxury conglomerate. she started a couple of years ago with her scent he -- with and nowy beauty line, the first black woman to ever head a luxury label. alix: on the same lines, kylie jenner crushing it in the beauty labels as well. heard ofou might have her from "keeping up with the kardashians," but this year she became the world's youngest self-made billionaire. is $1.2e cosmetics line billion, and she owns 90% of the company, but is also its primary advertising face. she has 150 one million followers on instagram. she is posting things about the makeup. everyone buys it. alix: to that point, it leads us to our second story in the magazine right now, the beauty industry is now looking towards older women. i jumped on commercial break, yeah, obviously. why is this just a thing right now? thise: on the one hand, has been an overlooked community for a long time now. older women use makeup. nothing has really catered to them. but it is going to become an increasing market and

thanks in large part to lvmh confirming it will buy tiffany for $16 billion.dwinds and slowdown in hong kong the company is expected to post a rise in third quarter comps and two straight quarters of declines but any look out the for comments on u.s. china trade talks. remember they cut the outlike are look this year citing the tensions back to you. >> thank you mike, quickly final thoughts. >> we always watch weekly unemployment claims on thursdays. i think we'll have to take a closer look given the soft adp jobs number this week. >> i want to focus on brian sullivan coverage this week all the driver of the market today out of time that does it for "closing bell." >> "fast money" now. >> overlooking new york's time square i'm carl quint nila. tonights on fast oil prices posting the biggest gain in three months will the tomorrow opec meeting add more fuel? we'll break it down. tesla up against service gain for the customers why owners of the original road roadster may not be left in the dust. shares in slack and company. rhp how do you trade these. >> we start

dana: it is a win for tiffany and lvmh. tom: why?he ability to get collections out faster. stock,is is not an oil it is like a jewelry thing. what is selling at tiffany's? who do you see as the team getting the millennial right? dana: who is getting millennials right, lululemon, sephora. tom: what is it about makeup? can we rip up the script? can you explain the makeup boom? dana: it is not a boom now. it is a skincare boom. we had a color cosmetics room going on two years ago and you can thank kim kardashian because contouring led to more tools. everyone can look young forever. looking good. gloss.me dana: you both look. -- look good. tom: thank you so much. this has been more than wonderful. anna, thank you so much. coming up, we consider the neutral territory between saudi arabia and kuwait. this is bloomberg. good morning. ♪ ♪ i am anna edwards in london with tom keene in new york. morning, saudi arabia and kuwait signed a pact on the so-called neutral zone, the strip of land between the two countries that has oil fields that can

forany was acquired by lvmh $16 billion.s from the increase in sales and the expansion of the brand. i think this is the way for allany, as it has been for successful luxury brands. doubled thefany size of its flagship store in shanghai. and pray market shares, -- premarket shares -- micron higher. it is telling investors it is through the worst slump in the industry. micron is the biggest maker of memory chips. a wonderful annual visit with the president of the cfa institute. i am a member and have helped with their college programs. margaret franklin, we are thrilled you could join us. i have to show margaret one of my treasured keepsakes, my hpc calculator. means ilow sticker dot survived in a room with 800 others sorry souls losing our marriages over memorial day weekend as we suffered through the exam. it is as tough as it ever was. margaret: we are clear to make it standard and consistent across time and it is probably tougher than when you and i wrote it. tom: i used to kid we should have level 1, 2, 3, and level --r

lvmh as well. richmont, we are talking 57th and 5th avenue.lomerates, whatever you want to call it. how much of their revenue is in hong kong? oliver: about 11%. tom: how do they respond to the protests? oliver: it has been difficult. there has not been an easy solution. numbers are down double-digit. responding means marketing in china and hoping tourists go to other places instead. francine: do people go to other places? is there a shift if product cannot sell in hong kong? do people buy more prada products in airports around the world? oliver: we have seen demand stronger abroad. this is just lost sales to a certain extent as well as we have seen negative earnings revisions in those companies. the answer is mostly no. carl: isn't this the core risk for hong kong that we see business diverted to other places, not just in luxury goods, but manufacturing and trade and finance? is this just goes elsewhere. oliver: it is. i think it is a permanent change andethinking capex distribution for what will make situationn evolving with no positive and

and lvmh has three corners van cleave has the other end around the corner from van cleave is bergdorfto new york? michael: new york is a difficult place to do this. that quality of prices is not there, so it might be a little while yet. -- and iin harrods guess i go back to shoe have been -- you have to reinvent -- heaven -- you have to reinvent every three or four or five years. is it in-house? youou consult the vision have? how do you get the harrods vision? michael: we have the best merchants in the world to buy the best rod ox, and we get the -- products, and we get the best people from the design industry to help us. tom: designers want to help you, or do they want their separate, freestanding stores? michael: they want their freestanding stores, but this is harrods house so when you walk through the beauty house, the whole thing is a standardized experience which the customer loves. within the various rooms, the browns can personalize. francine: how is -- brands can personalize. francine: how is technology changing retail? michael: technology is a huge a hugeut there are number

so looking at some of the key companies that could be affected, lvmh, they are france's biggest listedompany. they have handbags and a very champagne -- very had -- very famous champagne brand. have the cosmetic giant l'oreal. these sanctions are potentially hitting right to the heart of the french economy and potentially hitting some of the biggest names in french business. francine: how soon might the u.s. tariff on trade products take effect. >> what they did is kick off a process by which there will be administrative review of the tariffs, it will take 90 days, there will be public hearings and back and forth between french and american officials to try and work out a solution. at the end of this three months, these tariffs may take effect. what it does is it kicks off the process where there will be a very public discussion about it including between the presidents of both countries. francine: brendan, what does this tell us about trump's broader trade agenda. >> people are growing optimistic that the trade war is being de-escalated, that a deal with china's close, but i think wha

> i would think with 25% now, french wine is not doing as nearly -- >> have you seen this morning, lvmhd'or. >> bernard, that was pretty smart to get tiffany's last minute american company i had cade this weekend. >> opus one? >> all of them i got to tell you something, the hell with french wine. you can use that stuff, dump it in the stew for all i care >> that's really rude. >> why >> if you want too get rid of your french wine, send it to me. >> i will. a lot of it is -- >> we're eating freedom fries now? >> cheetos my favorite place on earth if we beat the giants on monday -- >> that's not going to be too hard for you. >> the other big story tonight, as you know, is going to be sales force, workday, whether we get an update on cloud, short interest is up expectations are high. would you argue? >> cooper reported an amazing number last night. every line was better. cooper does procurement, fantastic company, able to save everybody. i like to read the quarters in a vacuum i said, my god, this is beat and raise, beat and raise, stock down nine. if kupa, it was an amazing quarter. if th

part to the trade uncertainty lastly, this latest trade salvo taking aim at france's luxury sector lvmhour companies alone make up nearly 20% of france's bench marc index and contributed roughly $18 billion in combined u.s. sales last year so we'll see if the administration moves forward with those tariffs guys, back to you. >> seema, thank you very much for that mike, clearly trade is a big factor everyone is focused on today. do you think it is just that or the fact that we did also get some negative data, and that sparked the poor sentiment >> i would say those two factors plus just the set-up the set-up that we had gone straight up 9% since early october without any pullbacks. i think today is obviously a recalibration of the probabilities for a substantiative trade agreement but it's not so much an immediate binary, buy stocks if we get it, sell stocks if we don't. i think it was just an adjustment and some of the assumptions that were underlying the rrl thally that we go. got extended a little bit. especially when it comes to something like apple >> yeah, it's up more than 60% on

estimating holiday sales rose between 1% and 3% an say china grew in double digit growth good news for lvmh rise in chinese main land sales brought a struggle to hong kong. also japan and the consumption tax. >> a new owner >> you were thinking the new store. >> the new owner of the little blue box >>> 2019 was a record year for store closures retailers have announced plans to close some 9,300 locations up 50% from total announced clo closures in 2018 huge implication for real estate >> for so many years, we'd stat the square footage of retail >> did you notice tiffany is going to shut down the flagship store for major renovation mid-january. sounds like they are moving to east 57th street around the corner still that iconic street i have a doctor's office there and there is always people taking pictures there. i'm sure that impacted business. >>> speaking of retail, american consumers return hundreds of billions of merchandize to stores and a good chunk takes place the day after christmas. more people will exchange this year seems like a headache but also an excuse for people to get into t

tiffany recently agreed to a $16 billion take over by french luxury goods maker lvmh.n 1 and a quarter percent. the merger of cvs and viacom is official the combined company will be known as viacom and cbs. it will trade on the nasdaq today. u.s. airline websites are back up and running after a brief outage yesterday american, delta and united all experienced down time due to an issue involving flight data software from google however, the issue did not affect actual flight operations. >> new comments this morning from china's commerce ministry following yesterday's bullish report on trade talk progress. officials now say tariffs must be rolled back as part of any trade deal, and the two countries do remain in close contact. joining us is richard fisher, barclays senior advisor, former dallas fed we haven't spoke in a while. where do you think we are in terms of december 15th i think people think likely we get somewhere before then. it would be kind of a a symmetric risk to the market if we don't do you agree with that >> the president realizes there is no up side to d