. >> we are showing now lvmh shares they've already ls 7%.of these appear as though there on discount. would you be stepping in to buy some of these names now? >> absolutely. two of our top picks we kept into 2020, montclair and lvmh. if you say, let's assume in six months, there is a solution here, these are the brands you own for the long term. there will be a bit of volatility certain brands you would own lvmh, montclair, their product and customer are the two to own. >> we've been talking about supply chain impacts, the market and asia there is a dow component where shares are flat about now. are these scenarios ones that would be also perhaps on a shopping list if these pull backs continue >> absolutely. if you look at nike, about 18% of their sales come out of china. for adidas, that is slightly higher longer term a slight impact. when you think about retailers in general talking about that they are chasing orders versus in advance now they'll be left short here this is an opportunity to step up and own the best brands out there. nike,

in europe, lvmh closing the biggest corporate bond deal since 2016. pricing 9.3 billion euros of bonds. two of the euro tranches placed at negative yields. sticking with credit, blackrock seeing headwinds to investing in high-yield. >> the credit markets today are challenging. a great call on ccc's. i think you have to be tactical around that. you get in, you have got to get out of it. because of liquidity in the high-yield market. liquidity down the credit spectrum is really tough. we are all in, we're all-out, and you cannot trade that much. jonathan: back with us, bob michele, matthew hornbach, and priya misra. bob michele is back here. -- back in. let's talk about the shift in high-yield. you are leaning into this? bob: yeah. i don't want to fight this. if you go back to the middle of last year, it looked like we were headed towards recession. the central banks eased en masse. we totaled 88 central bank rate cuts totaling 9000 basis points. you got compromise on trade. so what is there to fight? and i look at it from the perspective, you worry abo

one is highlythat lvmh. to luxury, it dropped 7%, the most in 16 months, yesterday.repricing in core names on the portfolio list , does it make you want to put more money to work in some of these key names? nanette: i think this always has to be carefully assessed. when we look at luxury brands generally and the consumers seem, we feel confident that over the long-term, consumers are really looking in good shape both in developed markets as well as in emerging markets. important factors are very good labor markets sentiment that could come back as well quite quickly. i think that from that angle, we are happy with the stock picks that we have decided, but there is always a risk management aspect that investors have to take into account. cyclical sectors like luxury will bring periods of volatility and hence draw down when there is uncertainty. this has to be managed on a case-by-case basis in portfolios. we are certainly very attentively monitoring all of our stock recommendations but we feel that the underlying long-term things are not questioned. nejra: i think wha

you like lvmh, louis vuitton, hermes. and i collect the scarves. what about richemotn.ut that. >> they're owner of cartier. that is global status symbol where most businesses are deflationary overtime, and struggle to keep raising prices and grow their volumes, which the world is more globally interconnected which is not happening right now which creates a buying opportunity, these are enduring status symbols because they are global belief network and recognized globally it makes it very definitely cult to disrupt and gives them pricing power relative to their competition. liz: do you worry countries like bahrain, kuwait, there is a lot of money there, they're very nervous about this coronavirus and they tend to spend quite a bit of money on luxury brand? it is interesting to see that the three stocks you're picking today are in the green, certainly off their 52-week lows. i like that, but give me a sense what you think when you sort of put the coronavirus into the picture? >> sure. well i don't pretend to think that it's over and this couldn't get much worse. who knows

another concern that is a longer-term trend is high-end luxury so lvmh who just bought tiffanys they have a massive exposure to growth in china. that has been a hit. i don't see that turning around for at least a month overall, that u.s. large cap core is the safer area to invest in we'll see the least amount of volatility you need to delve in and figure out was there growth expected to move in from china if they are not producing or going out, this could hurt you for at least first quarter to second quarter >> quickly, when we are talking about the broader market talking valuations how do you feel about that part? >> that's another big concern. we don't know how this virus is going to play out and how quickly they will contain it stocks are trading at perfection we haven't seen this since 2002. this is an 18-year high. it is expensive. >> we are here >> yes we are here. we are at the top. if there is anything that can derail expectations. fundamentals are looking great all it takes are just one thing to derail this i'm really focused on core stocks i don't see value coming back anyt

in terms of the weight on the , puma, nest light, lvmh had a solid day today.he coronavirus having a meaningful impact on demand. it was interesting to see the tech sector bounce back. deutsche telekom with good numbers. hsbc adding weight to the upside. it was not a big gain edited to include -- but did contribute to the upside. nestle up 1.5%. the biggest gainer for the stoxx ing was the -- biggest stop from a points point of view. -- the biggest stock from a points point of view. we will tell you what is happening on bloomberg radio. jonathan ferro be on the new york side of things. i will be joining him in london for the cable on dab digital radio. this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i'm guy johnson. this is "european close" on bloomberg markets. vonnie: time for our stock of the hour. here is viviana hurtado. viviana: our stock of the hour is gorman after the company beat the street on fourth-quarter profits. 2020 guidance above estimates. banner 2020. a if you were to look at the fourth quarter reported re

guy: the lvmh story was up till he sensational the other day. thank you for stopping by. peter, ubs global head of debt syndicate. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on ."loomberg markets it is time for a look at some of the biggest business stories in the news right now. google may be on the verge of a major change in its relationship with news organizations. according to dow jones, google is negotiating about paying for content that would be used in a premium news product. dividendas slashed its and posted its first net loss in a decade. french automaker sales declined, plus income from its japanese partner nissan plunged. renault's full year operating in palm -- operating income dropped at a worse rate than expected at 30%. that is your bloomberg business flash. guy: as we come into the close, the ftse 100 for most of the afternoon has gone down. the dax envy -- the dax and the cac were in positive territory, but we are now beginning to fade. ftse down, cac down by 0.3%. the euro

lvmh. dior, burberry.cation and at home, they're taking that it could take a hit. people are out in stores shopping. and so the businesses, they expecting a tough first quarter. victor, amara. >> far-reaching implications. alison kosik, thank you so much. >>> kobe bryant's life and legacy are on full display at the nba's all-star weekend. andy's there in chicago. >> yeah, amara, this weekend in chicago, all about honored kobe and his daughter gianna and david stern showing how to pay tribute last night. and hear from shaq and charles barkley about this special weekend. >> all: kobe. >> that's right. ready to juvÉderm® it? correct age-related volume loss in cheeks with juvÉderm® voluma™ xc. add fullness to lips with juvÉderm® ultra xc. and smooth moderate to severe lines around the nose and mouth with juvÉderm® xc. tell your doctor if you have a history of scarring or are taking medicines that decrease the body's immune response, or that can prolong bleeding. common side effects include injection-site redne

but the biggest billionaire loser is lvmh ceo bernard auburnio for the year he's down more than $15 billionff in just two months chinese consumers count for a third of all global luxury spending and a third of the company's growth is coming from asia aaronio was the second i richest man last year and now trailing bates. and th ortega the sixth richest man down $6 billion for the year and elon musk is worth $4 billion less today than he was on friday as that tesla stock as fallen for the year, elon still up about $13 billion and still on track for that big bonus if he hits it six months from now. >> i'll tell you, jeff bezos selling $4 billion of amazon stock is looking like good timing. >> smart timing on his part. >> robert frank, thank you for that breakdown. >>> let's turn back to the markets. adviser investments jim lowell good morning to you both lou, i'll start with you how are you advising clients right now, given the drastic moves we've seen in the market the last couple of days? >> well, look, it's clear that this -- the coronavirus issue is likely to extend longer than people had

lvmh down 0.4% no surprise there that the luxury stocks are also getting hit on back of the moves, both in china and hang congreong kong today we're seeing a spot of green in the travel companies, lufthansa up worth bearing in mind, even though travel has been hit, oil prices are significantly lower that is a key component. so, let me talk you through what is going on in oil because oil-producing nations will hold an emergency meeting to discuss the impact of the coronavirus on oil prices the opec and non-opec joint technical committee will reportedly meet this week in vienna to decide whether to cut current output cuts beyond march or put deeper restrictions in place. this is the picture for brent and wti this morning you can see brent is down at $56. some heavy, heavy losses overnight. for the month of january, energy was the worst performing sector amongst all sectors in u.s. and europe looking at losses of about 15%. it's been a very heavy month for energy you can see that this morning as well no different. gold is coming off a bit to tie it back to what i was saying about the trave

lvmh buys tiffany and they're borrowing the money at negative rates. >> our theme has been certainly -- the way that i've put it is if you've been too negative, you what >> lose. >> lost. >> lose. >> and it's proven yet again to your point, though, it's easy to want to be negative, because you don't know about the virus you don't know about this, that and the other thing. >> there's a lot of complacency. >> but if you get too negative, you've lost. >> you definitely have i think you want to hug your benchmarks versus getting too negative there's no doubt and everybody on this desk would agree there's a certain amount of complacency that's crept back into markets in addition i would question the statement so the fed cuts, how much more ammunition does the he is it infinish dlinfinite yes, we're hugging the benchmarks but we're also picking spots within that i would argue are selling winners, going with where there's momentum in the consumer sept sectors, where there's strength. i'm not value chasing an em right now, even though it's incredibly cheap at 13 times and growing at 13% earn

shares of lvmh, tapestry, coach and kate spade, they're down almost 8%. world now moves to paris for fashion week chinese designers there already deciding to drop out along with many buyers and retailers. some designers moving to live streaming or virtual events since there won't be any crowds. back to you. >> robert, thank you want to get to sue herera now back at hq with a news update. sue? >>> yes, jon we have a verdict now in the harvey weinstein case. the jury had been deliberating for five days, was deadlocked on friday they have come to a decision count one, predatory sexual assault, not guilty. that was the charge if he had been found guilty would likely have sent him to prison for life not guilty on that charge. count two, criminal sexual act in the first degree, guilty. count three, predatory sexual assault, not guilty. count four, rape in the first degree, not guilty and count five, rape in the third degree, guilty so basically he has been found guilty on two of the five charges, but importantly, the predatory sexual assault charges, both of th

that's down 5% today shares of lvmh and tapestry. luxury was dealing with the china problem.hinese consumers accounting for a third of luxury spending that was phase one now phase two, where luxury brands make stuff in europe. high end you're talking production. how are they going to get workers to the plant especially in the towns quarantined in italy. >> i wonder if people are going to be overly cautious, in retrospect, china does not seem to be cautious enough. >> exactly, it's fashion week in paris starting tomorrow. that's already a massive effect where people are saying they're not going. and the auto show of the season coming up, and the economic impact from all of that throughout europe. >> i wonder, robert, if one of the consequences of all of this, if pricing will come down? although we know in the past, luxury retailers they just don't -- >> yeah, might >> well, the challenges, let's say in the u.s. which is still the largest luxury market, maybe not in terms of growth, getting production to the u.s. if you're factory in milan is not working that's going to be the

they are the biggest component in buying the luxury brands and, you know, they are saying that the lvmhuld be okay because they are so big and high end with high margins, they'll be fine and they don't manufacture a lot in china, it's most likely tapestry which owns kate spade and coach that will probably be impacted. italian fashion council impacted maybe $250 million in the first quarter, but that should come back throughout the year. >> bounce back later maybe, but nasty hit right there. i've got that. more on the virus, the shipping giant canceling shipments, ash. ashley: up to 50 now if not more from and to asia, this is the world's largest container shipping company, danish company, incredible by week stock since coronavirus first hit, they are looking for things to bounce back, maybe at the beginning of april, they believe a very weak in march and starting to see april, they don't know that for a fact but shipping volume for the rest of the year is very down beat, outlook of less than 1% increase, it's been very tough. it's like a canary in the coal mine, trade around the world i

well, luxury design e tiffany going to become part of lvmh today, valued at more than $16 billion, lvmhown for high-end names like louis vuitton and christian dior, the vote here in new york, guys, finally the broadway hit hamilton is hit to go big screen, disney paid lynn manuel miranda, actual performance by broadway cast, they filmed 3 performance, coming out october 2021, if you couldn't afford the 500-dollar ticket, maria, go see the movie in 2021. i know you saw it and so did i. maria: cheryl, thank you, countdown to state of the union, meanwhile president trump to promote the great american comeback during annual speech tonight touting a strong economy and stronger nation ahead of his expected impeachment acquittal, that's expected tomorrow, the president is expected to use the address to relaunch 2020 campaign but he will most likely not mention impeachment, joining us right now speech writer for president george h.w. bush, mary kate, good to have you here. >> great to have you back. maria: is that the elephant in the room? >> i would say take michelle obama's advice, when they

the next point is paris, where lvmh says the show must go on for now.ave more updates throughout the week on fashion week. matt: thanks very much. annmarie hordern there on fashion week. joining us to discuss is bloomberg opinion columnist, andrea, let me ask you what you think about the effects of the coronavirus? obviously, it has been tremendous on the luxury companies. >> that's right. a note this morning. sales andurt luxury sales will be down this year for thatirst time since 2016 global luxury sales have fallen. anna e.: and of course we are now focused on italy and the impact this is having on the ground. it is hard to overstate the relevance of italy still in the fashion industry and -- i suppose for luxury, this hurts two regions that matter so much. it hurts china and it hurts europe in terms of supply. >> exactly. but the other thing to remember the travelingl on luxury chinese consumer's agenda. you have spending at home, but you also have these high spenders that come from china to europe. it is going to be a double whammy. produce --hey c

they are owned by lvmh, luxury goods maker. double expansion from last year.lly been more maul operated location, focus but now they're going to strip malls and independent stores as well. we have ulta doing very well and sephora is following suit in terms of strategy. stuart: the stock has gone way up. two dollars higher today. ulta beauty is up two bucks. now there is this. mike bloomberg has been spending huge on his campaign and according to "the new york times" a small fortune has gone to pollster doug schoen. we have got him on the show. we'll ask him exactly how much did he get from the bloomberg campaign. big number. >>> on your screen, google's super bowl commercial it was called a tear-jerker and heartwarming. our next guest says don't be fooled. it is advertisement for one of google's creepiest products. ashley: wow. ♪ stuart: we had positive news on the virus. 632 patients in china who have the virus sent home. successful treatment. that's positive. the fatality rate for this virus is lower than it was for sars. that is helping this market. we're u

this affected the life of lvmh and gucci. already reeling by the hong kong protests.own 50%. one of the worst long stretches. the coronavirus doesn't help their business. they are already planning to take a hit from coronavirus. lauren: look at canada goose before all this, said sales could rise 25% this year. now they're saying they could fall over 2%. so up 25 to now 2. charles: they can't afford it. bernard arnault was scheduled to become the richest man in the world. probably will be delayed. thank you both, very much. one proof consumer confidence is strong. some people willing to pay $18, that's right, 18 bucks for a milkshake. jackie deangelis is here with the details. jackie, 18 bucks? >> special all vegan shake. charles: does it have filet mignon in it? all vegan? >> no dairy in it. no eggs in it. not anything animal related so what is special about this shake it was in development for about two years. they have a creative director at black tap. you have scene the shakes on instagram. they taste it. they tried. tried it all different ways to get this right. t

let's take a look at some of the big luxury brands like lvmh and burberry, trending a little higher which is positive because usually when times are rough or people get worried, tourists don't go out and shop. you guys just brought up masks again and the coronavirus and i was just chatting with the traders before going live and they are saying the tone right now and the word is jittery. if there's any key cases that come out throughout the rest of the day, you could see the algorithms react very drastically so there is still a lot of cautious movement across the board. and i want to point out, too, there's no playbook right now. the reason for that is that one, it's not contained, two, you have supply chains this time around that are very very interconnected. a lot of traders, too, are referencing 2003 when we had the last previous virus and that was a long time ago. a lot of guys in this market are newer, have not experienced this kind of thing so that's why you are having this lack of playbook and confusion amongst a lot of investors. look, there's the luxury. stuart: they actually trad