, which is ridiculous lvmh's lawyers say they simply do not work on the weekends.s miraculously this letter shows up from the foreign ministry, which does not have jurisdiction here it's asking lvmh to delay the closing so that we can support france's intention to dissuade american authorities from sanctions and tariffs. i mean, i'm wondering if that letter, they don't give it over because it was printed on lvmh stationary because it's what they wanted the french minister to write we'll see next week whether they get that i think that will be a minor positive we'll have discovery and a trial in october and maybe a decision by the middle of november. all of that having been said, i'm long tiffany has the way, way, way better hand here maybe they get a skinnier deal we still make money from here. or maybe they'd pay the full price. >> i love they simply do not work on the weekends guy, what do you make of this? it's a lot of deal intrigue certainly. it does sound like tiffany has got a lot on its side here >> a couple things i don't speak french so a lot of this went

lvmh also accused tiffany of mismanagement during dependent. trial is set in delaware to determine whether lvmh must go through with the deal. that is your latest business flash. alix: thanks so much, ritika. bernstein saying that lvmh is ready to fight its corner and get on with this legal challenge. the idea is that it will still evolve into some kind of compromise, but a discount price. but how does a company merged with another company in the middle of all of this? guy: it probably takes the edge of the relationship going forward, doesn't it? i'm sure where there is a will, there is a way, but if this is a

lvmh affected by the handbags. potentially 100% tariffs on alcohol. lvmh owns john perry on.ot of tit-for-tat and now tiffany says there is no basis under french law for the government to reach a contract and thus the lawsuit. david: is a good business, given what is going on with the recession? is luxury a good thing to invest in at the right price? shapet: we have a k recovery in which the strong get stronger and the week it weaker. the luxury space has held up better than global stocks, which the msci world index heavily weighted to tech, health care, and financials. tiffany sales plunged 45% in the february to april quarter, but since then it has improved to a 29% in may to july. the ritual keep spending. david: that is a basic rule of life. fair enough. thanks to scarlet fu for that report on tiffany. up next, president trump and what his trade agenda means going into the election. ,e will talk to rufus yerxa or former deputy executive director of the wto. ons is "balance of power" bloomberg television and radio. ♪ is balance ofis power. a new book by fa warburg -- bob w

. >> lvmh shares move lower. tiffany's arguments as unfounded for the case of ditching the $16.6 billi $16.6 billion take over deal >> a warm welcome. let's kick off the show with a look at the markets. rallying more than 2% breaking a two-day losing streak. dax in particular was very strong leading gains rallying 3.2% ftse 100 lagging a little bit. we are seeing a little retreat this morning the dax is down as well let's dive in to the sectors to see the best and worst u littlitiutilities are the onln the green. let's look at the worst per forping sectors. yesterday it was worth mentioning you had the banks leading down sharply to the down side banks down 1.4%. autos down 1.3 some of those reopening stocks taking most of the hit this morning. u.s. futures, what are we in for at the start of wall street. dow jones about to open about 85 points and s&p looking at a fairly mute the start. this comes after a positive move the s&p advancing about 1.6% nasdaq rallying 1.9% let's bring chris into the conversation cio.

ken: lvmh held a press conference today. the french government sent them an unsolicited letter to delay the deal. the way they put it is we have no other choice. wantss convenient if lvmh to get out of a deal like this, but it is not out of thin air. show, from fear -- i do not know what lvmh's reputational issue might be coming off of this as well. it is a dealmaking company. it is built off deals they have made over the years to make this huge luxury conglomerate, so we will have to see. amanda: thank you -- vonnie: thank you. eyenow you will keep your on all things tiffany related for us. from new york and toronto, for myself and amanda lang, this is bloomberg. ♪ mark: i am mark crumpton with bloomberg first word news. many without power, awoke to a dark orange sky today as hundreds of fires burned and the final gusts of a powerful wind storm link at the state and dense smoke. the power outages are the latest blow to california, where climate change is making weather more extreme. temperatures have soared to records from

lvmh citing french terrorists on u.s.oods as the reason for walking away, saying it cannot carry out the deal as a result. bakerg us now is leon a -- liana baker. liana: not only are they walking away from the deal, but they say the french government is the reason. the government told him they keep -- this came as a big surprise to tiffany which is lvmh.ewing out lvmh doesn't not have to pay tiffany anything for walking away, but tiffany will definitely try to sue them. do they think the deal will still go through? liana: if you look at tiffany's shares, they are not trading well. definitely under pressure. lows not seen since 2018. as we mentioned, the unprecedented nature of the french government getting involved makes it a lot more difficult for the deal to go through because from what i understand, lvmh says the french government opposes the deal. trying to keep a deal with tiffany would take a lot of negotiation and diplomacy. it seems like it is going to get harder for this to get done. about a bunch of things, isn'

. >> tiffany shares down more than 10% ahead of the bet this has lvmh tries to get out of it $16.2 billioneal to buy it >> and shares of astrazeneca falling premarket, the drug maker hitting pause on its late stage coronavirus vaccine trial. jim, you just tweeted coming to us in a few. fired up about what? >> fired up because i think that people have given up we had 10% correction, most of the people i heard except for jim pullsen in the previous show basically say, look, this is a dangerous -- it's a bubble, it's a bubble, it's a bubble. now, i think that anytime the market opens up big, carl, i don't like it but europe is up strong, i think that this idea that it's a bubble, what is the it is the it tech is the it apple? is it tesla? let's take it case by case i've seen things that have come down a lot that are very interesting. it's just that i'm not sitting here saying this is the moment where you must buy all the zoom in the world but zoom just fell 30% zoom had a really great quarter. i had cloud strike on last night. people will say these are viciously overvalued, but they have come

lvmh says there is no termination fees.lysts believe lvmh is actually making a prudent decision here in uncertain times , but tiffany was to be lvmh's gateway to the u.s., and all sides losing here for now. back to you. shery: su keenan with the latest on that lvmh-tiffany deal. let's get a quick check of the latest business flash headlines. jp morgan is set to have found that some of its employees pocketed covert relief money that was intended for legitimate u.s. businesses hurt by the pandemic. a source with knowledge of the matter says the bank discovered the actions after suspicious amounts of money were deposited into employee checking accounts. jp morgan declined to comment on the incident. barclays is weighing plans to move its u.s. headquarters from its current location in the old lehman brothers building in times square. the british lender is set to be looking for around .5 million square feet of space. barclays bought the lehman brothers building when the investment bank collapsed during the financial crisis in 20

lvmh's insisted the letter was legal and valid leaving the conglomerate no choice. but to further define already delayed closing costs november walk away. however it comes against the backdrop of a luxury sector stricken by coronavirus and evaporatiting consumer spending. seventy source excessive losses in the first and second quarterers of forty five and 29% respectively. its share price has been trading ten dollars below the hundred and thirty five dollars lvmh agreed w would pay last year. leaving some asking if it wasn't either paying for the us company. stephanie for its part is pushing forward it is taking lvmh. to court to get the deal three. tiffany had quite in your at the in trump tower. well meanwhile the french finance news bruno le maire has said that the united states is blocking it talks on those international taxes on digital giants and that europe should prepare to go ahead with the regional plan by the end of this year. france's so called gas attacks was what sparked this chapter of trade tensions with washington and it's clear sign that the tussle

one stock in the luxury sector is lvmh. the saga continues with tiffany.ibi t continues to strengthen its case in a bid to walk away from the take over deal lvmh continues to have full confidence to close the acquisitions that have not been met. the arguments put forward where particularlyunfounded. one to watch not going away anytime soon >> thank you very much >> resolving the issue in problems amid outlook. zoom and teams issue first confirmed by microsoft around 7:00 p.m. last night and it was addressed around midnight. if you had a problem, you weren't the only one elon musk to plan spacex starlink for several years the delay is around public market, quote, public market does not like erratic cash flow, ha, ha, ha hold me to it. meantime, fiat will hold $9.5 million conducting a review of clients regulations. fiat chrysler did not admit or deny wrongdoing. stems from the skandal the company agreed in 2019 to a settlement around $80 million from the doj and produced false results on deeziesel emissions tests. >> and now to the house. the plan totals $2

sought to force lvmh to proceed with that deal to buy tiffany for $16 billion now, lvmh complaining,ere's how it starts out. this is the first line quote, the business lvmh proposed to acquire in november of 2019 no longer exists what remains is a mismanaged business with no end to problems in sight and it gets worse from there, dom lvmh alleges there was a material adverse effect here it says that the pandemic created a extraordinary damage to tiffany and, and this is important, there was no carve out in the deal agreement for a pandemic now, the core of the complaint is really that tiffany has been mismanaged it says that tiffany paid out dividends when if shouldn't have, cut marketing and sg&a expenses that will cost future sales, and it said that luxury companies in the u.s. have a bleak future, saying that 90% of tiffany's sales are brick and mortar stores. you don't want to be that kind of retailer right now. and 80% of those brick and mortar stores that tiffany has are in shopping malls. now, lvmh also cites a letter from the french foreign minister that says it is impossible

let's talk about lvmh trading up .8%.sensus seems to be that we are going to see a discount supply to the asking price. william hill trading sideways. it looks as if the caesars bid is firming up. will it be enough to unlock value for shareholders and potentially for caesars. you have interesting stock story. there was a case earlier on suggesting we had to have crew on a cruise ship being positive. this is happening out of greece. it looks as if the crew has tested negative. once again highlighting some of the risk around the travel sector. that stopped down 3.2%. down 3.2%.ck alix: let's get to another geopolitics story with greece and turkey. pompeo met with the greek prime minister at his home on the idea of crete. >> we look to greece as a pillar for stability and prosperity in the eastern mediterranean and we are incredibly proud to support its leadership. joining us for an exclusive interview is miltiadis varvitsiotis, grace alternate foreign minister. we thank you for your time today. when are talks going to start

tiffany's ensued lvmh earlier this month to force it -- sued lvmh earlier this month to force her toeo. -- plans to turn docomo into a wholly-owned subsidiary. the buyout is worth more than $40 million, more than a 40% premium to monday's closing price, given ntt already controls 2/3 of the wireless carrier, any proposal is all but guaranteed to pass. the deal is the largest ever tender offer for a japanese company. that is your bloomberg business flash. matt, anna? matt: laura wright in london with the business flash. house democrats have released a scaled-back $2.2 trillion stimulus proposal. ae plan is seeking to prompt last ditch attempt at negotiations with the white house and break an impasse on fiscal relief that has lasted since early august. both parties are far apart in their ambitions. trevor greetham, royal london asset management head of multi-asset, is still with us. trevor, do you expect any progress here? do you think the markets expect progress? trevor: the markets are certainly expecting the parties to avoid a government shutdown. that seems pretty likely to be avoi

tiffany sued lvmh for trying to back out of the deal karen, what's your take on this turn >> lvmh hased to counter sue. they seem to not be focusing anymore on that ridiculous letter from the french foreign ministry that was suggesting they delay the mortgager that was absurd. now they're focusing on mismanagement, that tiffany has been mismanaged during the pandemic and that they shouldn't have paid dividends. i always come back to the merger agreement, which specifically allows tiffany to pay dividends. tiffany will be delighted to get arnault on the stand and seek to question him i expect that they will grant an expedited proceeding here. >> still no letter from the french foreign minister, by the way in all of this still waiting for that. >> i think they got a translated one, but not the actual. >> all right >>> coming up, are you ready for some football? these sports betting stocks are. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪ >>> breaking

it does appear as though lvmh and tiffa nys are it does appear as though lvmh and tiffanys are heading gel through the courts. what happened was that lvmh, best known for louis data louis vuitton and other luxury brands could not proceed and one is because tiffanys asked for an extension to be extended from november to the end of this year and the other factor was that they received a letter from the french government urging them not to proceed due to the imposition of us tariffs. you may recall this is in retaliation to the digital tax that the federal government plans to impose that would primarily affect large us technology firms, something that the american administration objects to. now, whether or not the trade dispute is realistically a factor, that is up for debate. tiffa ny says factor, that is up for debate. tiffany says no, they don't have to listen to the french government, that it sat on the letter for a week before disclosing it to investors, and that it had not sought anti—trust approvals in various jurisdictions, including the eu, a suggestion that perhaps lvm h eu, a s

is trying to back out of its contractual obligations and that lvmh has unclean hands.ing words where does this all leave the crown jewel of u.s. luxury brands the pandemic has absolutely crushed the jewelry business it is the worst performing sector in all of global luxuries since it's so depend on brick and mortar stores and people just aren't wearing as much jewelry as they used to. tiffany sales falling 45% in the second quarter, lvmh saying tiffany has been a loss company for the first six months, and it's, quote, not happy with the way it has been managed for the past few months. tiffany saying the fundamental strength of our business is clear, and that fourth quarter earnings will be up over 2019. so will lmvh come back to the table at a lower price will a private equity come who knows maybe they'll come back to an original public company, but what is clear is that this deal at $135 a share doesn't look like it's going to happen for now guys, back to you. >> robert, it's a little hard to sympathize with lmvh here. whether or not it was the french government's fau

remember they are going to go to trial in delaware, chancery court to try to determine whether lvmh hasexit its transfer agreement with tiffany what they're claiming are material adverse effects but also has to do with that order -- well, not order -- that letter they got from the foreign minister in france here is a look at -- it hit late yesterday and it is a response of course to tiffany's desire to get this thing in court as soon as possible and preferably prior to the november 24th end, in other words, drop dead date, so to speak, of the agreement that binds the two to each other at least at this point. key things that lvmh shared in the opposition to the plaintiff's motion, well, one certainly is the basic idea that they say, listen, do you know what, there is no need for expedited proceedings here a trial can be held they say at a reasonable date, you can take a look at the language, in 2021. that's in six or seven months from now, subject to the court's availability and if, in fact, you found then that we were not entitled to refuse to close under the terms of the agreement of t

the case starts in delaware in early january, and you're right, lvmh says, look, tiffany is a businesshat has 80% of its stores in malls, so that's not a good place to be and by the way, 90% of its sales last year came from brick and mortar stores. so without lvmh, it's really hard to see where tiffany goes, at least in the near term. >> i know what jon fortt's take is >> it's like buyers with a luxury purchase. how many companies have experienced this over the years. robert summed it up well, but this deal happened before the pandemic should they be allowed to get out of it? i don't know, should you be allowed to return that bag for a full refund? >> you're saying the judge -- do you guys remember my dad gave me this great book when i was younger, and there was a judge who was like a chinese judge these were fables, but he would make you pay in the form you were injured one guy was accused of stealing a cent of rice and he made the guy pay from one hand to the next it's like saying, okay, lvmh, you can abide by the terms you would sell a handbag for >> dante would appreciate that as w

tiffany sued lvmh earlier this month to force it to go ahead with the deal.e telecom giant mtt plans to turn its wireless carrier wholly-owned subsidiary. the buy is worth around $14 billion, more than 40% premium on the closing price on monday. mtt controls two thirds of the wireless carrier. evereal is the largest offer for a japanese company. that is the bloomberg business flash. u.k. carmakers have formed a united front to protect the industry's supply chain. the risk of insolvencies as the companies face the combined risk of covid-19 and a no deal brexit. joining us with all of this is bloomberg's european autos reporter, sid phillips. this is a really important story, and it is basically about some of the carmakers getting organized. what are they exactly doing? sid: the automakers are coming together, trying to create this plan under the auspices of the smm p, the industry body. and what they are trying to do is because the supply chain at a crucial time when carmakers and consequently suppliers are dealing with the twin effects of the covid-19 crisis

accused lvmh of trying to leverage protests against police brutality the covid-19 pandemic to seek aower price. lvmh has formally does the -- denied exerting any kind of pressure, and the french government requested a does -- a delay for reasons related to trade disputes with the u.s. foundts at schaeffler more issues for the auto recovery. more than 5% of its workforce is laid off, and it is closing down or selling off several plants. the announcement follows a plan laid out last week by tire maker continental to smash its workforce by as much as 14%. barclays is considering replacing its u.s. headquarters in times square. sources say the bank is looking for about half a million square space inace it -- hudson yards. before the pandemic, they had joined high-profile financial and tech companies with massive new office towers. but offices in new york have slump this year, with many corporate and employees working from home. and that is your bloomberg business flash. francine? francine: thank you so much. let's focus on high-yield spirit our next guest has taken place in jp morgan fin

this idea the lvmh is using the terms -- using the tariffs as an excuse. is 2021 going to be the time of conscious uncoupling? the french government is said to have been involved at some degree to give lvmh to walk away. at what point are these cross continental deals going to fall apart in a protected way? was that gwyneth paltrow, conscious uncoupling? lisa: yes, good job. jonathan: thanks. love the celeb love stories. [laughter] lisa: tom, carry on. tom: is she sell side or buy side? lisa: moving right along, it does raise a question about how you operate in an era where you have growing tensions on all sides. stagger to our guest, if we can. , charles schwab cio. mr. aguilar will give us some brilliance right now. what is the character of this pullback? you have the advantage to give perspective as well. what is the nature of the pullback we have seen? omar: good morning. definitely out of my range of understanding, a lot of the discussion about celebrities. [laughter] but i can tell you that being part of what the market is what -- that a big part of

that was the latest on the lvmh tiffany drama.with the ceo -- >> the supply chain has proven to be very resilient through the crisis. we believe it is precisely because it is a globally interconnected supply chain with multiple points of backup. it would have been disastrous for us if we had built a local supply chain. initially, we watched when issues were developing in china and remapped our supply chain of what would happen if there would be a major disruption to materials and goods coming out of china. through the pandemic and continuing to this day, we are delighted that we have a global supply chain that it is interconnected and that we have points of backup. we would have been a big trouble if we just had a national supply chain. that is one dimension of nationalism that we think would have been harmful. the second is the importance of global trade. global trade has lifted hundreds of millions of people to poverty -- out of poverty. and has agreed to spur economic growth. my particular concern is that if we retreat away fro

an update when it comes to tiffany's response to lvmh, attempting to pull out of what would have beeniggest merger. this year. this year.id they are trying to force her to go through with the acquisition deal lvmh had previously decided it would sue tiffany to get out of that deal. we know the french government is involved in this as well. tiffany now saying that it is urging the court in delaware to hold a trial for the decision before november 24, making comments about the nature of the acrimony between the two parties at this point. tiffany's saying lvmh has been grasping at any opportunity to delay this deal but they have shifting expectations but there shifting clinicians indicate bad faith. tiffany says no interior adverse effect has occurred during the pandemic and they remain committed to completing the transaction so we know this relationship has deteriorated after lvmh tried to back out of the purchase of the american jeweler. bloomberg news had also reported arnaud, chief, bernard had asked for assistance from the french government to try and get out of that transaction as

>> the tiffany stock or lvmh? charles: lvmh? >> lvmh. definitely. they have 13 billion in cash.mate bernard renault. tiffany has been a little lazy with the management, giving out a dividend right now. why would you do that during a pandemic. i think they have been hanging out the last five quarters. they haven't exactly outperformed. never ever sell him short. so i definitely think louis vuitton absolutely deserves a premium valuation. he is one of the best ceos in the business. charles: yeah. just anecdotally i went to the mall on saturday and louis vuitton, tiffany, line of 20 people, deep to get in the store for hours. no line, no one in the store at tiffany. real quick, restoration hardware, another name that you love. they report after the bell. it has been a high-flyer. are you sticking with it. >> i'm always sticking with rh. they are opening hotels. key-ready condos. everyone has a yacht. rebifurcateed cash, if you're flush with cash, redecading. you are good with restoration hardware. charles: love my restoration hardware sofa and catalog. i hope they never stop sendin

. ♪ ♪ ♪ ♪ >>> the battle rages on between tiffany and its once would be acquirer lvmh.t is a countersuit from lvmh that we received yesterday and this has become one of the battles for the ages and may still actually end up in court, we will see whether they actually get there in very early january in delaware. the latest suit from lvmh of course countering the complaint that's already been received saying they are in breach of the merger agreement from tiffany makes a couple of arguments. one of the keys is simply that, hey, do you know what, did you not carve out for a pandemic in the merger agreement you did not say, hey, if there is a pandemic it won't count towards creating a material adverse change to which tiffany is basically responding at this point -- well, differently. let me get to those claims in the counter suit material adverse effect they say has occurred, tiffanybreached the covenants and then we will get to that letter from the french government as well in a moment as to this lack of a carveout in the pandemic, tiffany's response is actually pretty str

lvmh is one of them.hat's going on is not just with china but to some degree with even countries that have long appeared to be allies. >> yeah. i just wonder if there's a breakup fee or who gets blamed and how in this. this is a different sort of scenario to watch. you're right, it's the decoupling that's taking place everywhere to watch a deal get broken apart, who gets blamed >> i have to look through the filings. i don't actually -- that's a good question. i don't know who ultimately would pay the fee. >> remember last week the journal was talking about, you know, how unprecedented it is what we're doing with tiktok and saying -- asking the question, who are we, france, in terms of statism. they do this -- remember when yoplait. what >> pressure. >> if you try to buy -- i mean, you better -- you better be ready for some serious fighting if you're going to try to buy -- is it great? andrew, becky, did you ever watch versailles louie xiv, it is amazing like x-rated at times. i have a new appreciation and

puts pressure on lvmh lvmh says it is confident in its case.emplating a possible deal with unicredit. they are now conducting an internal analysis to assess the pros and cons. we understand the bank will be interested and it is at least capital neutral. hsbc has what they social media blackout over fears of negative reactions to a leak. the only exception was responding to banking customers. the lockout will stay in force -- blackout will stand forced until at least 11:00 a.m. u.k. time. travel demand has declined since the end of the summer months and carriers are pushing back deliveries of new planes. worsened.ion has the plane maker will have to adapt its cost cutting plan. that is your bloomberg business flash. matt, anna? matt: thanks very much. laura wright in london with your business flash. we are seeing the pound now move down by more than 0.4%. 1.2771.ad been slowly losing its value against the dollar. we also see defensive stocks gaining a lot today. british american tobacco up 2.5 percent. imperial brands up to present. just eat is

lvmh accused tiffany of mismanagement during the pandemic.uary, a trial is set in delaware to determine whether lvmh can continue with the deal. that is the bloomberg business flash. tom: equities, bonds, currencies, commodities. it matters even when it is a slower day, and it is. futures negative six, dow futures -52. and the vix i will call a churn at 26.85. 10-year yield, a little bit of a trading range. as john normand was suggesting to us. francine, i'm adding no value. save me. francine: the pound. there is a bit of story on the pound, gaining amid speculation that a successful brexit trade talks could actually help shield britain from the e.u. mess. so we are seeing that rise little bit on renewed hope that they could get a deal done. european shares are down, and that is led by cyclical stocks but also banks. i think people are trying to assess and scale back the stimulus proposal in the u.s. as well. speaking of the u.s., we look at the debate tonight. coming up next, we speak with amy pope, china house associate fellow of the americ

lvmh filing a countersuit in the same court. lvmh up .4%. it with the bluebird first word news. here is ritika gupta. in beirut, atika: huge fire has breaking out of the port. the lebanese army said the fires at warehouse. last month explosions killed more than 190 people and injured around 6500 and damage thousands of buildings in the lebanese capital. it is likely to be the final stage of the month-long battle over fiscal stimulus. the senate votes to date whether to advance a slimmed-down republican pandemic relief bill. democrats they they have the votes to block -- to block the measure. it is not clear if that will lead to more negotiations. democratic one and a much larger building republicans will go for. president trump insists he was right to keep his concerns about the coronavirus private. the president is on the defensive after his comments to journalist bob woodward in march were revealed. the president told what word he downplayed the severity of the coronavirus in public because he did not want to cause panic. bob woodward's bo

the strap of luxury lvmh pulling out tofhe deal with tiffany's how that deal lost its luster.er, a bit of a fight between tiffany's and lvmh hi, robert. >> a letter from the french president asks them to delay closing makes them unable to complete the transaction at this time tiffany responding trying to back out of its obligation and lvmh has unclean hands where does this leave tiffany's? it's crushed the global jewelry business tiffany sales down 45% in the second quarter saying in a conference call earlier today, it is, quote, not happy with the way tiffany has been managed in the past few months tiffany saying fundamental strength of the business is clear. third quarter earnings will be up over last year. industry experts say right now lvmh could possibly come back to the table with lower price or maybe that delaware court could rule in favor of tiffany or maybe tiffany goes back to being a public lly traded company. guys, back to you. >> robert, the blaming on trade tensions between the u.s. and france on the delay, is that all just sort of an excuse because the luxury pi

jimmy choo i know guy is fond of jimmy choo having said that, lvmh tried to buy both of those nameswhich makes it even more interesting. now, if you look at the premium brands, the stand-alone ones don't exist anymore. that make it even more valuable. let's look at some of the technicals on capri. last sale is 22.90 it hasn't been above its 200-day moving average since january it just started trading above it yesterday and today. hugely constructive, up 42% in a handful of days. here's the biggest part. valuation. valuation based on the rest of the luxury brand space is astronomical compares to this one trading at roughly 12.5 times just the luxury brands' earnings that means ifyou extend it and say 12.5 times on what earning and normalized earnings, you get to a number of $45 then you got your michael kors. slap another 12.5% on that you get another $51 in earnings. brings you to $95. last sale is 22.83 could probably trade just under par at $95. >> victoria? >> i know when we look at the luxury brands, the chinese consumer is a huge component of that and we see kind of a v-shaped

for the six point two sixteen point two rather billion dollar deal to be completed in a statement lvmh described that lawsuit is totally unfounded and quote clearly prepared by tiffany a long time ago. it found vowed to defend itself vigorously in u. s. court of the mh further criticized tiffany for issuing dividends even as it was losing money saying that tiffffany's performance during the pandemic was significantly worse than that of other lvmh brands. number of americans filing for jobless benefits for the first time rose slightly last week eight hundred and eighty four thousand new claims were recorded by the department of labor. that's slightly higher than the previous week it does mark an improvement on the nearly seven million people who lost their jobs in a single week back in march. but it's still well above the pre pandemic record of just under seven hundred thousand. the government has changed thehe way it calculates those figures which economists say it makes it difficult to compare to previous data. but the trend does suggest that the labor market's recovery is now stallin

. >> another store today, lvmh and tiffany, the news that has come out in the last 24 hours, tiffanyng lvmh after the french luxury giant said it would not complete the takeover of the jeweller. lvmh said the reason they're intending to drop the deal all together is the government of france has requested they postpone the completion of the merger beyond the november deadline that was originally agreed in november of last year. now it's to the courts to decide whether this is a valid reason to break up the deal. usually these contracts are airtight and we know the economics have changed now that the coronavirus crisis has hit and this deal was agreed in november. >> i was curious about this, you see moving trucks everywhere in new york city right now. the rental market has seen a major nose dive. you have more than 15,000 apartments empty in the city right now. how is this affecting the overall economy? >> this is a huge change for the manhattan rental market. the number of empty rentals nearly tripled from last year. there were hopes for a rebound in the end of fall or 2020 but the n

johnny will be all set he was well within his rigights when he sent a letter urging lvmh to delay the deal and consider the implications of looming tariffs. reuters has reported the letter was sent to the request the french president's office on monday u. s. court in favor of tiffany's request the two sides should go to a speedy trial. proceedings could begin in january. thousands of british consumers living in e. you could have their u. k. bank accounts shut down by the end of the year. barclays and lloyds are among the lenders haveve contacted retail and business customers about the pending changes. they say that if the u. k. and you don't reach a trade deal by the end of the brexit transition period. they will no longer be able to offer financial services to them. but facebook is preparing for possiblble chas and violent unrest. after thehe us preresidential elections. the head of the global affairs for facebook told the financial times. the social netwtwork has plans in place to restrict content in sucuch an event. the company and other onlinine platforms are facing scrutiny over

. >>> lvmh says it will counter sue tiffany after the troubled buy out falls apart.esterday following the lvmh announcement it is backing away from the $16.2 billion take over >>> the nation industry contributed millions last year from the men's wear council dylan jones. i'm excited to hear this conversation what can you tell us dial an jones is thinking about the future of the fashion industry >> it is great to virtually see you. i hope you are doing well. i caught up with dylan jones he's been editor and chief of british gq for over 20 years now. he's one of the lead figures in fashion. we talked about print, publishing, media and fashion. as you said, fashion industry contributed to over 35 billion pounds in the gdp last year. of course due to coronavirus, they are facing huge challenges. this is what he had to say >> yes, there will be casualties in media, retail, in luxury. it will be ever where. the weird thing is that the fashion industry is meant to be up to date, continually changing, responsive to changes but actually there is large parts of the luxury good

that said here is what lvmh had to say, again, it will be january 5th and then you will have the trialose he will they will be forced to close, it's called specific performance. that lvmh statement was fairly statement which is we think we will demonstrate to the american justice system that the management of tiffany during the covid crisis constitutes a material adverse effect. jim, they've come back a lot now, again, this gets into another argument lvmh says, come on, they haven't come back fully in any way although luxury has to a certain extent. that's the whole idea. you can't have a material adverse effect at one point and not have it when you're closing. we will see where things end up. you know, we all would love to see bernard arnault on the stand, i just can't imagine it's ever going to get to that. they're going to figure something out here probably. >> i keep going back to simon properties because -- >> that starts in michigan november 13, i'm not sure. >> do you remember during the great crisis in 2008-2009 there were companies that would be sold to other companies and you

lvmh countersued tiffany weeks after pulling out of its purchase of the jeweler. luxury goods maker said the decision was driven by the french government's request to delay the deal making. a trial is set in delaware to determine whether lvmh must go through with the deal. francine: thank you. there is not much going on in the markets. a couple market participants are focusing on the potential stimulus that could be coming from the u.s. it could be underwhelming in terms of the amounts. at the same time, they are looking at the number of increases in cases around the world. also looking at overall european stocks. they are pretty range bound, but they are dropping. looking at banks and cyclical stocks down. tom: just moments ago, the turkish lira dropping like a rock. a stronger turkish lira, in aggressively from 7.5. i do not have any news flow, if that is direct intervention from the central bank or from the government, but that is of note. please stay with us. in the 8:30 moment, bob woodward joins us on "rage." this is bloomberg. ♪ ♪ so you're a small business

lvmh wants to drop the price. i think they will get it.what price are they back in is the question. is, does question that u.s.e the umph has? hastary conditions, christine lagarde donnee jerome powell for europe? jonathan: let's think about the deal. lvmh was able to pay virtually nothing on the debt to fund this deal. it is right there in the heart of it. you got it with the former chief economist, who i spent time with in frankfurt, who is still dovish, and he made the argument that they need to keep financial conditions loose. they do not have to drive the curve much lower, but they have to keep financial conditions loose. i and legend that will be objective number one for christine lagarde. tom: no question about it. let's get to the next meeting here, which is september 16, for the fed. we have with us frederik ducrozet, a strategist from banque pictet & cie. what is the accommodation in europe, is it fed-like? frederik: i would not say so. but the main mission today and beyond today for the ecb, is to ensure that there is -- that re

it is being led on a points basis by stocks like lvmh.ve seen today, finally the announcement, we will talk about this more in a moment, regarding the 100 billion euro french stimulus plan designed to put the french economy back on track and revive the political fortunes of president macron. i wonder whether that is why we are seeing the outperformance in the cap 40? in terms of the -- in the cac 40? outperformance in the travel sectors. that is certainly helping out as well. autos are doing relatively well. food and beverage, the defensive staple style story being helped out. unsurprisingly, the bottom end of the market, there you have it, the technology sector, the leading sector in europe. alix: it is the same thing in the u.s.. at one point you have the nasdaq off 5%, that would've been the worst selloff since march. off those levels, but still a brutal day. president trump ways in. he says "do you notice any time fake news polls are put out, like at fox news, the stock market goes down. we are going to win." joining us from edinburgh

lvmh cited delays related to a trade dispute between the u.s. and france.fany says the france company is trying to leverage recent protests in the u.s. and the pandemic to seek a lower price. that is the latest business flash. guy? guy: thank you very much. there has been suspicion that europe's richest man wanted to buy tiffany at a cheaper price. this definitely fits into what he needs to do with the business . moving into jewelry ticks that box. this would seem an extreme method of getting a cheaper price. tiffany suing on that -- that does not seem like a good basis for a merger. oppenheimer does say they have viewed it as likely negotiations and not a breakup and they reiterate the standalone value. to thinkr guys seem this might go through. a tough road to start. thatto hit on news reported astrazeneca had an issue with a patient in a vaccine trial and said potentially they are looking at neurological issues. we'll keep you updated on any headlines with that. that wraps it up for us. coming up on "balance of power" with david westin, senator mike brau

that's what i thought lvmh would be able to do.ocus on tiffany for a moment we have to ask what are they doing wrong because, boy, the one area that has really held up is luxury spending they should be making more money, david they are just not. >> it is coming back and they will be profitable in the current quarter, i think they've said that of course and they are going to show decent year over year i think, jim, to their defense. that said, they are in malls, as you pointed out, no at good place to be. not a good place to be. >> and yet they still -- >> lvmh -- they have a great brand and, man, are they ticked off about paying the dividend, but they are allowed to pay the dividend, that was in the merger, they are allowed to do that but, man -- >> tiffany -- how about simon properties >> yeah, what about it >> taubman. >> yeah. we're in michigan there in court, yeah, i think we will be there in november i believe it is sometimes i forget the dates we'll see. not a strong lawsuit not a strong lawsuit at all. people make fun of tha

tiffany's suing lvmh over the merger agreement.sing it of breaching the merger agreement. this is after lvmh said it might walk away from the planned $16 billion takeover due to problems related to closing the deal. tiffany's says lvmh is dragging its feet to win anti-trust approval. jp morgan has reportedly opened an investigation into the alleged misuse of ppp money by some of its employees and customers. the stimulus money was aimed at helping small businesses affected by covid-19 shutdowns. jp morgan is looking into possible misuse of unemployment benefits and other government programs that's according to an internal memo. jp morgan processed $28 million in loans through the ppp program. the stock is slightly higher. marriott shares are down in the premarket more than 1%. the hotel chain just announcing plans to lay off more than 600 workers at its maryland headquarters next month due to a slump in travel amid the coronavirus pandemic. underarmor also hurting from the pandemic, they're going to lay off about 600 from their glob

is counterp lvmh suing tiffany over a planned purchase.h says tiffany has mismanaged its operations, justifying its withdrawal from a deal. the two sides have declined to sit down and discuss the issue. j.p. morgan has told thousands of staff across its consumer unit that they continued to work from home. -- they can continue to work from home. unit is the bank's biggest and employs 22,000 people. shery: staying on j.p. morgan, the bank is moving about $230 billion from the u.k. to frankfurt in a shift that will make it one of the largest banks in germany. j.p. morgan's head of banking movemea told bloomberg to will happen with or without a brexit deal. iswhat we have done undertake those kind of moves we need to do to be functional as of january 1, and really, we are with baited breath waiting to see a brexit manifested itself and what does it mean for financial services and the like? in terms of being ready, we are absolutely prepared for every outcome. >> even if there is a best case reo, a trade deal, how much of an exodus would we see

lvm h lvmh has launched a lawsuit saying it is fine to lead the acquisition of tiffany.ht to complete the deal. the news comes after tiffa ny deal. the news comes after tiffany sued lvmh earlier this month, rejecting companies decision not to go through with the deal due to a french government's request. the tesla chief executive elon musk plans to list style link when he believes revenue growth is smooth and predictable. he added style link was an important new revenue stream for his california based space acts. the firm is racing to build out its starlink consolation to offer broadband internet commercially before the end of the year. the uk and the european union will begin the next round of trade talks today in brussels with both sides eager to find an agreement despite a major dispute over borisjohnson's plans to introduce new legislation which overrides his brexit of australia. after months of stalemate, there are tentative signs of progress over trade with michel barnier, the eu's chief brexit negotiator telling mps on monday evening that there was an improved atm

with the backdrop of a market rally, tiffany is bleeding red after french luxury powerhouse lvmh said it cannot go through with its $16 billion acquisition of the american jeweler because the deal is getting mired in trade disputes. yes, between france, the european union, and the united states. tiffany is tanking, down 6%. it's filed a lawsuit to enforce the deal. lvmh for its part is up half a percent. >>> we have to show you shares of slack, another work at home stock. shares are on track for a record percentage drop, falling 15% right now after second quarter billings growth disappointed, and the company said you know what, we didn't really steal a lot of people away from microsoft teams, the big, yes, the big rival there. wall street's rapidly slashing price targets on the workplace messaging stock right there, slack is down about $4.44 to $24.89. >>> look at nautilus stock, looking super-fit after citron research said the company is the fastest growing name in stay-at-home fitness. short seller andrew left's firm set a 2020 price target of $30. nautilus up 8% is at $14.83. his n

laura: lvmh chairman bernard arnault asked the french government to pull out of a deal to buy tiffanyfrans's richest man was directly involved in the decision to call off the $16 billion purchase. tiffany has accused lvmh of trying to leverage protests against police brutality and the covid-19 pandemic to seek a lower-priced but they have denied exerting any type of pressure as he said the french government requested a delay for reasons related to the trade dispute with the u.s. forcuts make more woes the german car industry. they are eliminating more than 5% of its workforce. they are selling several plants in the home market as the impact of the pandemic bites. the announcement follows a plan laid out last week by continental to slash its workforce by 13%. barclays is considering replacing its u.s. headquarters in times square. sources say the bank is looking for .5 million square feet of space. the development had reshaped manhattan's west side. in new york has slumped this year with many corporate employees working from home. that is your bloomberg business flash. matt, and i. --

sold by microsoft's bill gates lvmh tycoon belum nava no replaceded warren buffet in the top three. the market listing a really impressive list of. over three trillion dollars worth worth of wealth around the globe. a lot of those people have gotten even richer in the past few months since that list was calculated as this. value of their stocks and toward the hondas and the have nots in the gap appears to be getting bigger and bigger and bigger. kate thank you very much indeed. you can return to the lost generation that kate was talking about for a focus features over six and a half million primary school pupils here france returned to school amid warnings that months of lost scooting could have an effect on the economy for the next century many children because of disability is a lack of vacancies and specialized schools. have no choice but to remain at home. and risk falllling even further behind. what what is happening all day. it's the last day before school for oldham and his twin brother no way i need to do. and the finall preparations are under way. okay chavez he took a few

court has agreed to fast tact the tiffany lawsuit of lvmh trying to back out of the deal to buy tiffanys to enter the u.s. hard or seltzer market their ceo on mad money >> we are going to follow the consumer in the old days, they were more regular meanted. these are concerned to the consumer looking to new things this one will stay laser focused on the market and your money why do we say negative safe sentiment and what is that weird looking chart? here it is every week, or every month, they are published there incentive gains. that is nasdaq 100 futures you can see on the far right side of your screen not only going back year to date, if we expand the data, it is the most negative turn of the decade. that chart says big players, about two weeks ago began to take tunes of very negative bets as well. is this really in the weeds type stuff. of course it is. it is 5:40 in the morning. fur watching cnbc maybe on a treadmill or peloton, you don't might going in the weeds, i don't either >> our next guest, head of research and strategy at global x etfs the perfect person to have on after that

lvmh is, suing tiffany over the dropping of a planned purchase.ny has mismanaged operations amid the coronavirus pandemic, justifying its withdrawal from a deal. the business has been devastated. the two sides have declined to sit down and discuss the issue. let's recap the headlines out of japan. we have the nikkei reporting financings seeking from megabanks for a buyout. entities seen seeking short-term loans from banks. they have been reporting the board is holding a meeting to discuss plans to turn its wireless carrier unit into a subsidiary move that may help lowerent suga push tariffs. on a 30% premium to the closing price in tokyo, that's according to the nikkei. entityporting the parent controls 66% of the wireless carriers. it's all but guaranteed to pass before it went to the launch rate. it was trading low by 3%. we are two minutes away -- five minutes away from the lunch break in china, having a look at what is going on overall for equities. it was looking like a bright start to the day. the hang seng off the lows and off the highs, .3

court has decided to expedite a lawsuit of tiffany against lvmh over the take over deal a judge set the trial date for the start of january >>> china called for beijing to block the tiktok deal that would see oracle and walmart become the new owners they describe the deal as robbery opposing to terms that would see americans take four out of five board seats and deny beijing to the source codes. >>> continuing narratives with each player trying to spin the deal in a way that makes them look like the winner yesterday president trump yesterday on fox news said oracle and walmart would have complete control they said the chinese will not have anything to do with it. that's not 100%. oracle came out and said americans will have the majority control and bytedance will have no ownership meanwhile, bytedance coming out and saying it would have 80% control. walmart and oracle will combined have 20% of tiktok global and bytedance will have 80%. this is how oracle can say americans will have majority control. look at the board. four out of five members will be american the final member will be th