lvmh is saying that it is "cautiously confident for 2020."ng geopolitical the abr's are under political pressure. the revenue growth number comes in light. we will show you the number in a moment as we get more analysis in a moment. meantime, the stock of the hour viviana hurtado. viviana: we are focusing on harley davidson. a miss on key metrics in the fourth quarter. reporting what has put a lot of pressure on the stock, down more than 4%, of most touching 5%. it was down almost 6% in the premarket. let's look at the key metrics, those misses. a big miss in the fourth quarter , key motorcycles shipped as well. the share pressure that we see today isn't just limited to today, though it is the biggest drop since september. it reflects a broader downturn .n u.s. retail sales retail sales in the u.s. 12 consecutive. is really cute to look at this chart. drop, to see what it is harley davidson has turned towards international markets for sales. companies say that by 2027, it aims to get half of its revenue from outside the u.s. if you look at th

spread of lvmh helps it. with tiffany, the massive acquisition, you could see this could give a healdge in 2020. >> do you think they've identified as the exposure to china being a bit too much and with the tiffany acquisition what do they have to say about the more mature market in europe and how are things shaping up there and could that offset the weekness >> 90% of that growth came from the chinese consumer the opening workshops in europe and in u.s they are struggling to meet demand in the u.s. markets the less reliant footprint to make it less bumpy for this crisis >> it is a good story. the stock was up 50% last year we are seeing a good reaction this morning that was our cnbc france correspondent. >>> apple has reported a return to demand beating top and bottom line forecast. our tech reporter is here with more details break it down for us >> reporter: it was a big turn around from last year when apple downgraded their return. you saw chinese revenues up 3% very much what we saw in all of these catego

look at luxury and lvmh numbers. keep an eye on aviation.tish airways halting flights to china amid the virus outbreak. the open is next. this is bloomberg. ♪ anna: a minute to go on to the start of cash equities trading. the coronavirus death toll climbs to 132 as cases are reported in germany and the uae. hong kong stocks tumble as investors return from the lunar new year. says it hashnson started work on a preventative vaccine. the european commission is set 5g.nveil its guidelines for we will also hear from the eu competition commissioner. a minute awayust from stock trading. we are looking at futures that are up. , buthe futures up by 0.25% not a lot of direction or indication today as we have had a mixed richer amid concerns about the spread of the coronavirus as markets get set to trade. let's look at where we stand. anna: as we wait for these markets to open up, my attention is drawn to a little dollar strength and bureau and pound weakness -- euro and pound weakness. euromovement in the --we are to the upside on the spanish ibex. th

lvmh up 0.4% they will be reporting later today. turning attention to travel names and companies have been extremely hit by the coronavirus here in europe, we have air france and klm down 2% lufthansa down 1.4 and british down as well travel companies continue to get hit. let's turn to asian markets. matt taylor joins us live from singapore with the impact on asian markets. i've been saying the markets have been closed for the holiday but it seems the theme is still very much of selling chinese proxies. >> absolutely. you'll see the red picture china markets closed until third of february. hong kong still with the lunar holiday. tokyo is okay. we do see a stronger yen australia and new zealand down about 1% south korea was the big decliner, off by around 3% it was really the travel stocks. in particular, airlines. south korea marking the biggest fall marked by the airlines off by 6%. quantas in australia off by 3% medic makers a big decline relying on chinese visitors. these names down 11% and 14% respectively hand and face mask pro

lvmh up 75%. so a strong year for luxury as a hold one thing that i just want to ask you about. i was reading this in one of your earlier reports you have suggested that you think richemont could be a surprise m&a market. >> indeed. i think the move on tiffany is creating pressure. clearly if lvmh was as successful as it has been, then this would increase the competitive crash in one of the profit categories, which is clearly jewelry. not to mention the fact that the megabrand is building in roads when we think about the likes of channel, hermes and gucci, richemont could choose to take it on its chin but we saw the entire in the shape of the megamerger would address the number of issues first, it would add skills in areas that are complimentary weak in caring for example in hard luxury and in soft luxury second, if this was the tie up with the size, it could create new meaning and a new mission. one of the largest stock luxury, multi-brand, digital platforms very little energy with the call today. if richemont was part of a larger group of significant brands of luxury, then the

lvmh helping the paris market. the oil stocks are leading us down.ean close is coming up next. this is bloomberg. ♪ ♪ hey. hey. you must be steven's phone. now you can take control of your home wifi and get a notification the instant someone new joins your network... only with xfinity xfi. download the xfi app today. the 30 seconds to go until end of regular training in europe. i am not going to lie. at a headline level this does not look like the most exciting session. gray, is gray, germany is london was gray a second ago. italy is gray. nothing is happening at a headline level in europe. this was the session that was. this is the stoxx 600, up .2%. we dipped out of the ages session and then we come to this incredibly trite trading range, particulate -- we dipped out of the asia session and then we come into this incredibly tight trading range. this is what the headlines look like for the ftse, the cac, and the dax. the ftse is up. vodafone is a weighted stock in the ftse 100. the dax is absolutely flat. , lvmh is having a good day. we are going no

roughly 30% of overall sales kering and hermes and lvmh will field a lot of questions today about the coronavirus. >> thank you asia and china specifically is very important for lvmh. >>> growing fears around the world to the coronavirus the number of those affected and the death toll rose overnight. >> quickly developing. the total known cases spreading across china increased nearly 60% overnight to more than 4,500 cases. china has upped the death toll to over 100. the numbers now prompting companies around the world and facebook and others to restrict travel to china. hong kong will reduce cross border travel include ug suspending train lines and cutting back cross-boarded tour buses, ferries and flights it is kremed to avoid all not essential trips to china despite all of this, the leader of the world health organization adds that he does not advocate the evacuations of foreign nationals. the number in the u.s. still stands at five >> many officials in china are trying to decide if they should stay or come back. it is tricky >> it seems like the many he had call community is still

lvmh will close a store in hong kong made shopping district.ccording to a south china newspaper. it has plunged since the start of the antigovernment protest last year. a mall reform -- reportedly refused lvmh's request to lower rent. >> coming up, a little help from lebanon. reports continue to swirl about japan.los ghosn fled this is bloomberg. ♪ >> carlos ghosn's escape. new details emerge on how the former head of nissan and renaud may have been able to flee japan while on house arrest awaiting trial. latest in terms of what we have been able to piece together about how he escaped the japanese justice system? out in bits and pieces, we don't know the story yet. it does appear that he escaped from japan on a private jet that went through turkey. now saystor of the jet that at least one of their employees falsified documentation to allow him to get out. andhe got onto the plane out of his residence in tokyo, these are still thinks we are piecing together. storyhought there was a that was fascinating about how he approached a hollywood directo

>> i'm definitely looking at lvmh.ok back in the early 2000's, when the sars outbreak happen, lvmh really suffered for several months. outdon't really think to go to buy a $4000 handbag at a time like that. >> how big of a hit is this timing wise, considering that it is the eve of the lunar new year holiday, we could see people traveling at this time, shopping a little more, but now we see all these travel restrictions? >> the luxury brands have really focused on the lunar new year, trying to take advantage of that and turn it into a shopping holiday. it is a big deal. this is a time where people are going to shop for these brands. if they can't travel and go to the flagship stores to buy whatever they want, it is going to be a problem. >> thank you so much for being with us. i do want to bring you something here. an additional 15 coronavirus deaths. this just breaking as a growing number of regions within and without china are looking at a spread of this coronavirus. we will be speaking on that throughout the weekend.

lvmh up 1.27%. a heavy weight for the french market and it will be benefit as will the minors from a more inflationary stance out of china. those are the sectors in europe that could do well. the autos could be in that mix. luxury tends to do well when china does well. you see the mining stocks, pure plays tending to do better when the chinese story is more open. that is certainly the narrative coming out overnight. lvmh up 1.25%. that is the european story. there is some discrimination in this trading day. .3%.&p 500 up we started out more gangbusters than that. pulling back slightly. not so much on the nasdaq. the nasdaq up .6% and holding on the gains of 2019, well above 9000. gold up $10. 1530.r .7%, nearing the 10 year yield gave up some of the basis points it put on a few days ago and is back down to 1.87. let's look at some of the areas where we are seeing individual movement. sox up 1.1%. across the board with an upgrade on amd and plenty of other good stories and games for many of the semic

mainly lvmh. the sector breakdown looks like this.ing at every single sector in europe and negative territory. where we are seeing some defensive rotation is in utilities, telecom space, food and beverage, nestle. these sectors are still down over 1%. the bottom end of the market looks more ugly because of the sector story. the mining sector is the loser, down 4%. takingin copper and iron place on the commodity market. the chinese economy is a huge consumer of the commodities. technology is also trading down. it was tracking higher. we see a strong story throughout the beginning of this year and certainly over the last few days, the car sector is down, the chemicals are down, airline stocks, also hotel stocks under pressure. let me suit -- let me show you individual names to get an idea of what the story looks like across europe. lvmh down 3.5%. iht down 4.5%. significant selloff in areas exposed to china. if markets were still here in the u.s. we have been breaking a 74 day streak. it is up 30 to 46. the dow has a raised its gains fo

they were going to pay 17 times earnings more importantly, this is a fashion play lvmh was going to boost returns by increasing the design, making it more hip to today's younger buyer. among buffett's many attributes and strentgths, fashion is probably not one of them i think he said what can i add to this and probably not as much as lvmh. >> throughout the course even if you weren't a warren buffett expert, you know that buffett is not the type to overpay. so maybe it's just the idea that he doesn't want to get into a bidding war with europe's richest man who garnered $30 billion more -- >> who is now worth more than warren buffett so he's going against the guy who's going richer than him. that doesn't happen often to warren buffett. >> robert, you've probably made the point before we've talked about warren buffett holding off on acquisitions before. people thinking that he should do something when people think he should do a, he does z but it reminds me of gilead in biotech. people were waiting for gilead to use its hordes and hordes of cash to get it back to the area it was with hepati

good but as we all know by now upcycling is even back to fringe design that nothing is set to one the lvmhize in two thousand seventeen explains. just how do you follow what that really means is that all the genes are upcycled we take the genes we cut them up. we flatten them out. so we essentially making genes out of. we also tend their addresses into patch which dresses and the idea is that you're wearing it it looks great you're not thinking about the fact that it was upupcycle it's fashion. it needs to look amazing. for her twenty twenty cruise collection deals maria grunt security was with the ivory and stylist but the. and female artisans from moroccs mountains he also created her wax fabrics. i tried this project to walka within these adamant that this so difficult the and to show like- really craftsmanship traveling around the work for the works that they use in the latina collection is it the canica and that the move the two i jeune to europe and that arrived in the africa but decided to buy a dhea about. to walk circle was it because is a cop the. isis it that these and all somet

the chance to buy tiffanys he was approached by the jewelry giant about making a counter offer to lvmh'sting the four-year stretch without major acquisition. >> airbus tops boeing hitting 863 deliveries topping the target of 860. for the first time airbus is expected to overtake boeing for the top spot as it continues to face the 737 max kcrisis >> an upgrade to tell you about. cannacord upgrades tesla from $375 to $515 that is now the highest priced target on the street reasons for the upgrade include strong demand, shrinking balance and demand coming off a very stellar 2019 where it was up about 35%. let's take a quick look at the markets. we embark on a new month, new year and a new decade. let's bring in coo of kpm financial. good morning and happy new year to you >> happy new year from chicago we are excited and constructive on the new year. >> i want to get your take do you have a take on tesla? >> it is a pretty lofty price target it has had sensational move in december i know the sober truck has posted a lot of emotion and movement they'll still be held to the take on the fact wi

let's kick things off and hong kong, the world's largest luxury conglomerate lvmh will close a storeopping district. retail sales in the city have plunged since the start of antigovernment protests. it is the best news for manhattan real estate prices in two years. home sales fell just 1.2% in the quarter. that is the smallest year-over-year decline since 2017. that is according to a report by douglas element real estate. gates scheduled to give his charity over to real estate. now he wants billionaires to pay higher taxes. he says u.s. lawmakers should raise the estate tax and increase capital gains tax. bill gates is the world's second richest person, currently worth $114 billion. that is your bloomberg business flash. we are going to be counting you down to the european close. we are also going live to the american economics association meeting taking place in san diego. we will be speaking to this gentleman, charlie evans, the chicago fed president. we will get his take on what has just happened in the middle east manufacturingsm number, which was a significant disappointment. th

leather companies, lvmh do 25% of their revenue from the u.s. that would be a direct impact.stry in the u.s. saying it would cost theirjobs she has different voices there and talking about the impact for the auto tariffs and not in the u.s. market. german companies are very scared of this. that is a big point of leverage in the u.s. in those talks with the eu germany and all of europe is concerned about further impact >> both sides want to avoid. >> charlotte, thank you for breaking it down for us. >> stay with us. activist investors are increasingly looking to sweep in on m&a deals and looking at the activist space in ju aew mes.st f i tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if i'm getting a great price. this is how car buying was always meant to be. this is truecar. >>> welcome back to "street signs. i'm julianna tatelbaum >> and i'm joumanna bercetche. these are your headlines president trump hails the biggest deal ever seen as u.s. and china sign the phase one trade agreement

lvmh trading down 2.73%. car sector is related to the trade story and the china story, it is related individual names. renaud trading down 5.02%. onote suggesting the stress renault may lead to a nissan state sale. that is dragging the broader auto sector down. there is a global demand element. the coronavirus is the main theme running through the european market close. vonnie: you can see that in the united states as well. the 10 year yield down to 1.71. the s&p 500 deteriorating slightly in the last half-hour. a few more headlines we will get to in just a moment about the coronavirus and travel restrictions to china. it is down .5%. we will get into the sectors in a moment. the dollar index is higher and crude as well down 2.1%. it looks like there is going to be more inventory data tomorrow that will be bearish for crude oil, and obviously this coronavirus news is not good for demand for oil. get into areas where we are seeing movement. you mentioned the bond proxies. the defensive companies doing relative

lvmh also delivers numbers after the european close. 35% of consumption of luxury goods. we will see how coronavirus is affecting demand. huawei limited access to its new 5g network. live from london, i'm guy johnson, with vonnie quinn in new york. we are now counting you down to the european close on "bloomberg markets." ♪ vonnie: a little more confident that the outcome of the coronavirus might not be as bad as anticipated yesterday has markets bouncing back, and better consumer confidence data and the richmond fed manufacturing index being up. the s&p 500 up 1%. earnings also playing their role, the

in terms of some of the individual names, this is probably the most exciting part of the market, lvmhing lower, down 2.22%. the reason is we are seeing concern about what is happening with this chinese virus creeping into some of the luxury stocks. it is a big travel time. you could see this virus becoming more serious. that may affect shopping in asia. air france is down. we have seen a spike in oil higher, but we have seen a downgrade on air france. trade is down 5%. bae systems picking up. honeywell merger, they are being forced to split some of the assets off. the price action around $2 billion, and bae is picking up those assets. the stock up 3.62%. those are some of the individual movers. we are done and dusted in europe. given the volume levels, i would not expect a lot of action. the earnings season is underway and we will see more of that this week. we are seeing names like netflix reporting numbers. morgan stanley's chief process at strategist still with us. what would get the market used up about equities this year? last year incredible appreciation and stock values largely

and carrying the parent of gucci, makes up about 35% of global luxury spend speaking of lvmh we havengs tomorrow. we'll see if the company can address what we see on the ground as the lunar new year gets started 3m only stock higher when you look at the industrial sector. that company also manufactures those face masks that are seeing heightened demand amidst the virus spreading beyond china an oil, goldman sachs about a $3 mitt to the price given the virus and the concerns that could have on economic growth. that's pressuring some of the oil producers. guys, back to you. >> seema, thanks so much >>> let's get to the bond pits, ten-year 161, rick santelli is at the cme in chicago. hey, rick. >> reporter: good morning, carl. you know, could you say what you will about technicals and of course we follow fundamentals and technicals on cnbc, but once we closed under 190 after not getting over 2%, and then we closed above 1.80, adding fuel to the fire and then this couple of sessions the end of last week we made the close under what had been an intraday low from the 8th of january right a

downgrades today, keep an eye on that good signs semiconductors holding up very well and including lvmhxury names carrying in europe, airlines like air china, japan airlines also modest, on the weak side. we have seen u.s. airlines like delta moving to the down side. it may be haircut. stocks are really pricey now this coronavirus is an unknown unknown. who knew this was coming we couldn't model this it came out of nowhere essentially. i would be keeping an eye on downgrades prices are really pricey what does that mean? morgan stanley downgraded by citigroup. nothing wrong but just pricey. piper downgraded them last week to neutral not a lot of problems with the earnings report, really pricey bank of america got a downgrade from atlantic. you want to keep an eye on these things nothing wrong with the fundamentals that gets to be a problem and people start noticing and cutting ratings on the stocks the good news is the trade wars may be receding a little bit we watched this bank of america global fund-raising. look what's number one now this is a surprise the outcome of the 2020 presiden

burberry, lvmh, louis vuitton, all down about 4.5% today. these companies have one thing in common, that generally speaking, china is their second largest market. stuart: we are coming back a little bit. down 380 now. ashley: interesting, watching the ebb and flow of this market. gold was up 12 bucks, now only up six bucks. the ten-year went down to 1.61, now back up to 1.62. we were down 500 points, now we are down 386. money coming in and out. interesting to watch the flow. stuart: it could be that some people are buying. ashley: that's what it feels like. stuart: brave souls who catch the falling knife and think they've got a bargain. >> or you have people who saw the futures fall, that sold at the open and see the selloff is not that bad so they decide to get in and ride some upward momentum. like you said, the 11:30 call is crucial. stuart: i'm determined to be positive and i found some stocks that are going up. for example, meridian bioscience. lauren at the new york stock exchange, they are developing a test for the virus? lauren: yep

so some goods like lvmh, gucci, all down finally want to make a note about downgrades today the market's very pricey now we're at the high-end. some people came out downgraded stocks morgan stanley downgraded citigroup. just the prices are high bank of america also here to the downsi downside, downgraded over atlantic also on valuations, so keep high on these high valuations we've got a couple of ipo announcements today. important thing is start iing to heat up this market for ipos historic high on that one. a big one here with reynolds consumer announces terms today tinfoil. a big one. >>> president trump in davos today declaring we're in the midst of a blue collar boom in the u.s. >> today i'm proud to declare that the united states is in the midst of an economic boom the likes of which the world has never seen before. we've regained our stride. we discovered our spirit and reawakened the powerful machinery of american enterprise >> and the president is not alone. top ceos echoing the president's confidence about the health of the economy and the consumer >> the backbone of this recove

in particular, luxury stocks take a look at lvmh, and the fear here is that consumers in china and elsewhere won't go to the mall or stores because they don't want to be around other people who might be affected >> and/or tourism will get cut down, and tourism is a major part of these markets. i think this happens when you see the outbreaks and there's an immediate pullback and a lot of fear until we get more information. we were all talking before we started here we don't exactly know a lot about this virus and how it's inc incuba incubated. right now there's a lot of operations out of fear these are really important markets to the players >> yeah. luxury, the luxury -- the good thing is the chinese are buying more luxury in china than they used to. the bad thing is the chinese are also traveling more broadly than they were during sars. >> there's also h-5 n-1. sars was a $40 billion hit to the economy. $7 billion hit to the u.s. the stock market fell 16% during the sars epidemic. given how quickly it's grow, we don't know the incubation period, but up to 200 cases. >> a year of tariffs tha

on the luxury side of things we oftentimes talkabout companies like tiffany, oftentimes talk about lvmh or caring because they make the high-end stuff that many east asian shoppers want. is it mostly luxury that's going to be affected in your opinion >> initially i guess as i step back and say how should we think about coronavirus and retail broadly, one is the effect i just described an ento the extent it impacts the consumers traveling around the world the second would be and take a longer time to play out but if what the coronavirus does lead to slower economic activity in the united states and across the globe and takes a longer time to weigh out that could have a more -- a wider impact upon broad retail broadly >> now, the american consumer has been championed and cheered over the course of the past soef several months and many the year for the gains in the u.s. and maybe abroad does the u.s. consumer then still maintain that kind of lead, that leadership role, when it comes to being able to power the world economy despite the fact that coronavirus is in play >> well, look. it's an

reports are that the famed jeweler tiffany approached the oracle of omaha after a takeover bid from lvmh, asking a billionaire known for scooping up businesses in one fell swoop to buy the new york diamond and jewelry giant but he apparently passed, even though he is sitting on a record amount of cash according to the financial times. all right, we've got the jeweler down 14 full percentage points the stock losing its luster big time after wells fargo downgraded the stock to under weight from equal weight, and cut the price target and before i give you the price target cut i want you to look at what the price is now at 1,867 cutting the price target to $12 a share. let's get to tesla starting the new year with a bang, after canaccord genuity raised its price target to $515 from 375, it's at 430 right now, an expectations of a strong fourth quarter when it comes to car deliveries, we're supposed to get that delivery number later this week this as tesla plans to deliver another batch of china-made model 3 sedans to the public on january 7. the first batch was rolled out earlier this week.

is likely we've been watching the impact on luxury retailers that rely on the chinese market, like lvmhhank you very much. sue herera has a news update >> hello, everyone here's what's happening at this hour the trump administration publishing new visa rules aimed at restricting what's called birth tourism in which women travel to the u.s. to give birth so their children can have u.s. citizenship. birth tourism is a lucrative business in the u.s. companies take out advertisements and charge up to $80,000 to facilitate the practice >>> three people including a 9-year-old boy remain hospitalized this morning after police say several people opened fire in the busiest part of downtown seattle during the wednesday evening commute. one person was killed and seven were wounded >>> nepalese authorities deciding to end the search for four south korean climbers and three nepali guides buried by an avalanche on a popular trekking route last week. crews have not been able to find any clues of their whereabouts >>> a new study is showing just how much food americans are throwing out researchers from

and european luxury goods maker also in the red today, lvmh. they rely heavily on chinese demand shares are down about 3% this morning. 3.5% at this point. >>> still ahead, the world is remembering a basketball legend this morning after nba great kobe bryant died in a helicopter crash. we'll go live to los angeles when "worldwide exchange" returns. ♪ ♪ i've been a caregiver for 20 years. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home. imagine a mouthwash that strengthens your enamel, imagine, feeling fearless when you walk into the dentist. while preventing cavities up to 70%. act anticavity rinse. for a confidant feeling in your oral health, stop imagining, start acting. . >>> fans around the world are still in disbelief kobe bryant and his 13-year-old daughter were mopping those when his helicopt

industry leader lvmh, gucci owner and coach owner you can see there, they are down. there is green on the screen in one state. vaccine makers, flu shot makers are getting a market boost. as you can see, some of them up double digits. in addition to china and the u.s. there are also confirmed cases of the coronavirus in japan, south korea, thailand. travelers heading to the united states on direct or connecting flights from wuhan china where this virus began will be screened at jfk and new york as well as lax and san francisco international airport out west. for more on all of this, we are now joined by a professor of the department of epidemiology at ucla, also director of their center for global and immigrant health. doctor, thank you very much for joining us. how concerned should we be by this coronavirus now that we have had a confirmed case in the united states? >> that's a really good question, ashley. i think there is great cause for concern about this virus. we have now a case in the united states. we know that it's passed from human to human and that cases ca

see if he was interested he was not tiffany eventually accepted a $16.2 billion take over deal from lvmhakes have been raised again in an ongoing take over battle this morning. network equipment maker now says it has accepted another sweetened take over deal from clayton doublier and rice. this worth $9.50 a share bidding has gone back several times between clayton doubler and west coe international the original bid for anxter, the stock up 1.5%. the labor department will have the first labor report in less than 90 minutes. it's going to be issuing its weekly report on initial jobless claims swiss expected to show a slight increase. >>> new details emerging in the story of carlos ghosn's escape from japan reports say prosecutors in turkey have opened an investigation into how ghosn was able to make a stop-over in istanbul on the way to lebanon without the knowledge of turkish authorities. ghosn reportedly took private plane flights to get out of japan. according to the "wall street journal," this came after months of planning by ghosn's associates to spirit him out of japan and repeated

lvmh care.lencore, anna: a couple of others that we're keeping an eye on. on -- announcement on oil. also as we were talking about that, we have seen a note about the aviation sector. and agrade from lufthansa upgreat from i.a.g. we'll see whether anybody picks up on that, 50 notes today. we have a few market closings. switzerland. their equity trading there. russia, romania and others also closed. those are the main ones. ome positivity expected on the rrr cut from china. matt: we were closed here on the last trading day, december 31, maybe a little bit of catchup here. that could turn around. these are still keep in mind relatively light volumes that we're going to be watching. many people who were off on the 31st and the 1st are also going to be taking off the second and the third. certainly here in germany, a lot of people are not coming back to work until january 6. coming up, it is the market openings. futures are pointing higher, especially london as the pound falls. this is bloomberg. ♪ when it comes to using data, everyone is different. which is wh

lvmh, rio tinto all down 1% or more. let's get back to the world economic forum in.ncine lacqua is standing by with a guest. francine: thank you. thank you for joining us as the e.u. commissioner. congratulations on the fairly new appointment. you talked about digital tax akseation and the relationship between -- taxation and the relationship between europe and the u.s. >> first of all, rather happy of detaunt taking place between france and the u.s. i think this opens a window of opportunity. not a long window because it will be for some months this year. we need a global solution in this year 2020. this is the problem. to se we are not avoiding realign our digital taxation system to the new digital era, we will do it but we want to do it at the global level. francine: we can't even agree in europe how to do it. how can we agree -- >> i think we made good progress to this global agreement. if there is political will on all sides and for sure there is this political will from europe, we can reach a first agreement next week on the first part of global deal. i would b

including lvmh. watch that on the back of richemont.ll as anheuser-busch. there is a cd project -- it is delivering a cyberpunk game launch. i can understand why investors would be concerned about that. you don't want to delay cyberpunk game launch. down 12% on the back of that. and casino falling the most since august 2018 as the forecast is hot on protests. groups, of the industry to bring do that quickly. you have basic resources, industrial goods and services and industrial leading the pack. oil and gas is the only industry group down in the stoxx 600. bp taking points away from the broader index. is a sector showing weakness. and you rightly point out the supermarket story. that one just jumped right after you covered the gaining sectors. european markets opening higher following a bumper data regarding china released this morning. are choosing to focus on solid retail sales and industrial production. negative capital for the year ahead has also been moved i head of this week signing of the china-u.s. deal. let us talk to some expe

european market lvmh results.or in the u.s. it is the start of the big tech earnings.f. watch also for ebay and starbucks results after the u.s. close. china's top security regulators and investors should evaluate .he impact of the coronavirus this follows the slightest equities throughout the world and the offshore trading. the vice chairman of the commission sounded confident in the government's ability to contain the virus which has killed more than 100 people. >> we are challenged, but if there is any country in the world that can deal with this kind of challenge, it must be china. i have no doubt that our government and the people will be able to deal with it in a andly and effective manner, whatever damage it might have to the economy will be limited. matt: for more, the race across assets managing editor -- asia cross assets managing editor joins us. it makes sense if any country could deal with something like this, it has to be china. i can't imagine trying to shut down new york city or stop berliners from leaving this city now. >> i guess that is right. but on

lvmh rising as well as nestle.nd astrazeneca on the downside with british petroleum, a big stock that helps to balance out the stoxx 600. other losers, bhp, anglo-american. metal stocksg, are down today. european markets are higher in general, as investors reassess concerns about further deterioration in the security situation in the middle east. joining us is the european head of global markets research at mufg. what's your take on how we should be pricing in the u.s.-iran situation right now? all eyes on, i't is what kind of retaliation could take place, but our assumption is we will not get a kind of major escalation. my colleagues based in the middle east feel iran has quite a lot of respect for the u.s.'s military might, and therefore would be quite conscious in terms of how they respond to what's happened. so if we have kind of a sporadic or-tat relatively contained scenario unfolding over the next couple of months, i think the markets generally can absorb that, and i think what we are seeing in risk appetite

lvmh is weaker. weakness for luxury watchmakers. bp also falling with shell.s slowing the pace of share buybacks in the market. profits missed expectations underscoring the challenges to big oil from something gas prices. now.an beurden joins us this seems to be a market, why have you slowed down your share buybacks? three-quarter billion a quarter, can you meet your target? you are right, we are slowing down buybacks this quarter. if you look at last quarter of ast year, it has been quite year. we did not have a bad performance. 12.3 billion dollars of cash flow in the fourth quarter. get three things writes, we have to continue to invest for growth, we have to buyback $25 billion of shares and reduce debt. with the outlook we are seeing that you pointed out, pressure on oil prices, pressure on gas prices. prudent lookke a going forward. for this quarter, we said let's bring back our share buybacks and focus on debt reduction. let's see how the macro plays out and be clear there is no change in our commitment to buy back the $25 billion. givena bit uncertain

it brings us to the story we haven't gotten too yet, tiffany inviting buffet to make a bid against lvmh buffet saying i will take a pass on this one he is sitting on a you want to call it a war chest, whatever you want to calm it, he is sitting on a mountain of cash. $120 billion, wonder whack he will do with that. it's been a while since he's done a deal. >> i do think you have to keep in mind that if you are a company in play, i mean it's worth a phone call to buffet right? this is the second time we heard this story there was a company that had a tentative agreement to be acquir acquired you want to check to see if berkshire hathaway might be interested in there is tremendous prestige, maybe tiffany thought it wouldtive perfectly. a couple things about the war chess, first of all, it's a lot of cash. not all unencumbered they have a big insurance business it's spoken for, at some level the stake in apple i think it's worth one-77th of what berkshire's market value, it's doubled he owns plenty of equity exposure sure. >> the question is, do we need to he probably wants to find somethi

airlines and american i'll send it over to you bob pisani >> took a global virus threat but finally lvmh see here down 1% modest drop. all the big luxury names were weaker bond yields helped home builders those stocks have been on hot fire there's the close bell not quite the loss of the day. dow jones industrial average down largely by boeing >> welcome to "closing bell" >> i'm margaret brennan. >> let's check in on how the markets finished lower albeit not too much lower relative to europe and asia overnight. the dow biggest decliner of the major averages down of half of 1 percent. nasdaq and s&p down more like 0.2% russell down significantly.08% utilities at the top showing that defensive tone to today's trade. >> we did also briefly hit new all time intraday record highs for the nasdaq earlier in the session as well although obviously those gains did not hold moments away from earnings from netflix, ibm and united airlines we'll bring you those numbers as soon as they cross joining us to talk about the market day, jack manly and steven weiss mike, first to you >> a little bit of a mo

other companies you would highlight on the global scale stood mark >> another interesting one was lvmhthey said yesterday that while they are seeing some impact in these aggressive steps by the chinese authorities hitting them in the short term because you are seeing a reduction in travelers and chinese consumers getting out to the shops, at the same time, that kind of action could have a beneficial impact in the long term if it does come to grips with this virus. nejra: how quickly could these companies recover from the steps they have taken to mitigate the uncertainty of the virus. >> it depends on the company. apple is so deeply interwoven with the economy and it has a longer effect if they had to shut down. carmakers are pretty good at nimbly responding to this kind of thing and closing factories, reopening when they've got the right conditions in place. nejra: thank you so much. for the hour, we have our guest host, the chief investment officer at rathbone. great to have you with us. how concerned are you about the actions corporations are taking this early on before we have an ac

tom: whether it is luxury retail, gucci, lvmh, or traditional big box retail flat on its back, or evenbout in the moment, i am fascinated that value guys like you see value in clothing and retail. chris: we like subscription businesses, recurring revenue, and the broadband business. i have had a front seat to secular change for the last 20 years. there was a change in the way consumers are behaving in retail and i don't know where that ends up, but more is going online. francine: are we just going to buy everything from amazon? chris: there are traditional retailers including walmart who have attractive online businesses that are growing. i was in the mall this weekend returning some things i bought online. there were not a lot of other people in the mall. it will be difficult and you will see that reflected in the prices of general retailers and property rates like simon. francine: if you look at all the things that have been instructed, tech companies, we were asking if tesla is a tech or car company. car sectorminate the when it comes to driverless cars? chris: we are focused on ele

lvmh is lower. it also has to do with the devastating illness taking hold in asia, similar to sars. the luxury states is what does this mean ahead of a lunar new year? luxury depends on asia pacific. this comes on the heels of those protests in hong kong, which definitely hurt them as well. hugo boss up 4%. it is a highlight in the luxury space because fourth-quarter results beat the highest analyst estimates. on top of that, hugo, the line underneath hugo boss has a new collection out, dedicated to david bowie. i have not seen it yet, but i will look for it when it comes out in february. francine: annmarie hordern with stock movers. coming up, president trump's keynote speech. 10:30 a.m. london time. that is coming up next, and this is bloomberg. ♪ out if something is changing. if they get a picture of what is happening in the world, changing the strategy of the company. francine: when you speak as chief executive, has something really changed? does greta thunberg matter to how they view the world? >> it seems to me that, yes, it has changed. at least some of them have children and

lvmh bought tiffany for $16 billion. that deal you announced in november.'s day scare for fans of a quiet place. a trailer dropped for the sequel yesterday. quiet place part two is going to give a back story to the alien invasion from the 2018 film. the trailer shedding light on what happened following the death of john krasinski's character. i probably ruined that for everybody. sorry. i never have seen it so i ruined it for myself. krasinski is the writer and director behind both film which also stars emily blunt, his wife, by the way. quiet place part two is coming to theaters, march 2020. lauren: i don't think you'll like it. cheryl: i don't like being scared. i don't watch scary films. life scares me enough, reality, so i don't need to be frightened in front of a television screen. lauren: you disagree? >> a quiet place is really great. it was exciting. it kept you on the edge of your seat. and you think they're not even talking but it's a fantastic movie, so i'm really excited to see this next one. cheryl: you enjoy that. [ laughter ] lauren: there's