the biggest division of lvmh.ng good because consumers have been putting lockdown savings into luxury fashion and goods, but also people are starting to go out again and socializing. they want to show off their latest handbag, like you do, manus, and they also want to indulge on champagne. one year ago, bernard arno said there is a remarkable 2021 set to continue and if you look at the share price over the past year, for lvmh and all luxury stocks, in fact lvmh has become the biggest company by market value, not only in the cac 40, but also in europe. manus: thank you very much, caroline connan in paris. we wait for the german data. the french have beaten estimates. two unicredit in italy. decided to step back from a purchase of a russian business. if you're a member, it was one of the important russian banks. it had a bailout. unicredit was on the road to buy that business but they are going to withdraw from that and i think it is due to geopolitical concerns rather than anything else. just a quick note. other br

maybe lvmh will be rewarded more.e battered in the way some of these other companies have been. another story, i do not know how to make this pivot, is a court ruling that has happened today. this is something that will be capturing the imagination of the front pages of the newspapers tomorrow. the tech tycoon you can see on the screen in front of you losing a huge court battle today in london. the other side, hewlett-packard. this relates to the acquisition of mike lynch's business years and years ago. this has been raging forever. hewlett-packard feeling it was defrauded in that acquisition and as result of which went to u.k. court. there are other charges on the other cited the atlantic. today we saw the judge basically siding firmly with hewlett-packard in terms of the two positions. we now have a ruling the secretary will have to make on extradition of mike lynch to the united states to face further charges. let's talk about this in further detail. jonathan brandon who covers europe's legal news for bloomberg joi

lvmh repeated similar lies to the press and the court. in 2020, i had to be hospitalized twice due to a serious physical issue, likely triggered by the trauma that lvmh inflicted upon me. my case is now in arbitration and i've witnessed firsthand some of the ways it is biased against survivors. forced arbitration provides employers and seems to have empowered lvmh, who have gaslight me and suggested that the sexual harassment was in my imagination. i had to take unpaid medical leave this year due to the personal attacks. by leveraging forced arbitration, lvmh potentially endangered other employees. had i not filed a complaint, lvmh would have permitted lloyd and others like him to continue working there to this day. because of forced arbitration and settlements, i may never know the extent to which lloyd sexually harassed or sexually assaulted others or if lvmh retaliated against others as they did to me. thank you for an silencing me today. we each than in a position of farmer privilege and power than most americans could ever dream of.

lvmh is the big one after apple. record sales. china is back and the u.s.s back in terms of luxury. this was a smashing set of numbers from lvmh. we will speak to the ceo in a couple of minutes. input costs were a challenge for that company and flavorings for food. let us change focus from those corporates. they faced supply chain crunches fueled by the pandemic. bloomberg's alex webb is here with us. alex, how did apple, given the size and sale, how did they navigate the supply chain constraints so smoothly? alex: the machine that tim cook built, they did not use it on the ipad as much as on the iphone, and there were some components that had issue on the ipad and directed them to the iphone. they were also pretty good at managing expectations. they were suggesting it was not going to be a brilliant quarter because of the supply chain problems. that meant they were expecting more of a hit. tom: but it is a reminder that they have that agility. they do have that ability to act quickly. it is a head scratcher that a company like apple is brought down by mark

lvmh now negative on the day. stock that opened up higher in europe by 5% and is now down by 0.5%. if you want a feel for the earnings, organic revenue, the main division, fashion and leather goods, revenue was up 42% from 2019. not from the year before, from 2019. those are unbelievable numbers, and they can't buy a rally in this equity market. lisa: it seems as though people are trying to quickly capitalize on any rally whatsoever and get out as quickly as possible. it feels like a trading market because of the lack of certainty, and yet kailey asked, where do fundamentals factor into this? it is hard to know the answer given that we are continuing to see underperformance, even by names that are doing just fine. jonathan: trading lower in paris, don't buy more than 2% there. the benchmark and frank for it, germany down by about 2.5% -- benchmark in frankfurt, germany down by about 2.5%. kailey: it is not enough to support futures on the technology gauge this morning. it has just been an intraday volatility story

lvmh has become a difficult story even though the numbers are fantastic. lisa: even though you see that 40% gain from prepend of and could now, when you look at some of the revenues, but then you look at apple, the gains fading in of a managed supply chain issues and posted an amazing quarter. jonathan: you caught up with dan ives of wedbush, the big bull on the equity market for names like apple. he said you can frame this quarter. the single names just aren't returning the gains that some of these are looking for in light of the numbers they are delivering. kailey: that is a thing, this is not just a single name. this is apple, the biggest tighten in this u.s. equity market. those shares are higher, but off session highs, and it is still not enough to provide a sentiment lift to the tech sector more broadly, which brings us back to the question, how much do these fundamentals matter in an environment where we are talking about potentially five federal reserve rate x next year in real yields that keep moving higher? jonathan: it brings us back to rates, a

you can say the same for lvmh last night after the close. superstrong numbers, even versus the pre-pandemic levels we were watching. records for both. what we've got here is a situation where i appreciate the earnings matter, and you're seeing some outperformance today, but do they matter enough? which brings me to exhibit b. this is what is happening with the s&p versus what is happening with the earnings story. i am not sure you got see the earnings estimates on that screen. they seem to be missing a little bit. but earnings have been tracking the s&p, and now i think you can just about see in the background . the earnings story is still elevated, whereas the s&p has come down. so how do you deal with the earnings narrative in this very much macro driven market? let's try to get an answer to that question. kate fattah's -- cate faddis, grace capital president and cio. it has been an incredible week. you got stocks like apple and lvmh posting absolutely amazing numbers, yet they are not really significant lead rewarded for it. what do you d

stocks like lvmh trading on record highs. the close is next. bloomberg. ♪ guy: a few seconds until the end of regular trading in europe. a fairly positive session. it is you see what is happening stateside with the nasdaq beginning to roll over in a fairly significant way. a little bit about performance coming from the ftse 100 -- a little bit of outperformance from the ftse 100. the london markets closed yesterday. we are picking up some of the gains was a lot of european equities more broadly. lvmh on the front foot. a record high again. luxury stocks doing well. let's see how the session has developed. it has been a positive session on the screen. we have rolled off our earlier highs, we were up over 1% earlier on. 493 is where we are. equities have come back strongly on both sides of the atlantic. we are fading, but a positive session dragged lower by tech. a quick look at the sector breakdown. at the top you have travel and leisure doing fairly well. the airlines are on the front foot. at the bottom, technology losing ground. technology do

sick of names like lvmh, a huge performer.i take a look at what is happening now, we are starting to see these stocks rolling over. i've got montclair down by 11%, hermes down by 12%, nearly 13%. lvmh has been under pressure. what do you think about the sector right now? is this an opportunity? roland: like the tech sector, like all of the growth and quality sectors, luxury has been taken in this wage selloff we have seen on the high expensive and quality names. we think it is a good opportunity to reenter this name. we think if you look at earnings growth it is still around. this year we expect 14% increase in earnings, and you can enter at a much cheaper price. you can enter the sector, so it is much cheaper right now. if you look at fundamentals, clearly you have this huge quantity of savings from households. that is the benefit from luxury goods because if you look at the savings, it is really on the high wealth households. that is also a support for luxury goods. kailey: in the luxury sector, specifically in europe, how s

lvmh later on this week. the story is the action we have seen over the last few days.not been immune to that. we are still down over the last five days by 2.8%. while we track higher we have not unwound volatility of earlier on this week. in terms of what we are looking at today, let's break it down. let's try to get an idea of what is happening. brent crude over $90 a barrel is having an impact on the energy sector, up over 4% today. big names like total and bp adding to the upside. we are also seeing some of the airlines climbing back. today the u.k. is reducing its restrictions in terms of reentry into the u.k.. the expectation is others will follow on the continent. travel will become easier. basic resources are doing relatively well. you are noticing the grocery sector underperforming. health care as well. that is maybe one of the reasons london is underperforming. i mentioned what was going on with wiz. iag up strongly. this is the owner of british airways tracking strongly today on the easing of those restrictions come up 7.43%. then you get onto seb, manufactur

lvmh also owns tiffany and cosmetics retailer sephora leadership shakeup.tapping chief operating officer ted dekker as its new ceo, will replace current ceo craig muneer, who will stay on as chairman of the board. home depot has seen tremendous growth during the pandemic, thanks to work from home trends and a strong housing market. toyota says it's vehicle sales rose by more than 10% last year. making it the world's biggest carmaker for a second straight year and putting it further ahead of its nearest rival volkswagen. meanwhile new car prices falling for the first time in 10 months, online car info platform, truecar says the drop from december to january is 2. snapping a nine month streak of increases for more stories log onto fox business dot com in new york. i'm c j. poppa. ktvu fox two news at five starts now. and off the top tonight breaking news. ktvu has learned the head of the troubled california employment development department is stepping down. good evening. i'm andre senior and i'm cristina rendon. it is a shakeup at the top. ktvu investigative

this is a luxury item versus the real luxury like lvmh and diageo i'm looking out for the every day personelling to that and what are they doing? >> a $10 pumpkin spice latte is pretty steep to me i'd rather spend on the wallet the 52-week low, by the way on starbucks shares in today's session. steve, what are you watching next week? >> let me start off by saying, starbucks had an outside day, too, maybe nadine is right i'm watching alphabet because i want to see if alphabet will tack a page out of apple and microsoft and continue the momentum in the market for the large cap tech sector and just think about everything that people are searching to get back to their lives hotels, airlines and an endless amount of things google or alphabet probably will put up good numbers and that should be enough to keep the average investor in the market >> people forget about the leverage they have to travel and travel searches bonawyn. are you feeling good about alphabet going into earnings >> i always feel pretty good about alphabet it's a pretty ubiquitous name that gives you a pulse on the market. i d

lvmh posted record sales. topping the previous record set in 2019.panies under the group range from tiffany to sephora. coming up next, we paul: breaking news out of japan. his tokyo's cpi for the month of january coming in weaker than expected. we are seeing the japanese yen holding steady on this news. yield on the 10 year japan 15.6 basis points. that's the highest since 2018. not a great deal of reaction on the currency on those cpi figures. a slight mess for tokyo cpi in the month of january. vonnie: chinese authorities are set to be considering a proposal to split up evergrande. the move would be china's guest step yet to prevent a disorderly collapse of the developer. taiwan's economy is set for another bump this year after growing at the fastest pace in more than a decade in 2021. the largest company planning capital expenditure of $44 billion. that equates to 5% of national gbp -- gdp. singapore will host the formula one grand prix later this year. it signed a contract to hold it for another seven years. singapore is trying to reposition as

apple, lvmh. eco-data as well. the main event is absolutely going to be the fed meeting wednesday.ear from jay powell. what we learn on that day? i think that will be a big market moment. the nasdaq down another 1%. he was elected geneva into the bond market. also the repositioning into the weekend. coming up, manhattan district attorney will be joining bounce of power with david westin on bloomberg television and radio. you and dyer headed to radio. we have the full hour this time. the cable show is taking today are on dab digital radio. this is bloomberg. ♪ >> from the world of politics -- >> this will be the first time in almost a decade were all seven members of the fed, all seven of those jobs are filled. the first time there will be real diversity on the fed. >> to the world of business -- >> we can have 5g and we can have aviation that works without massive disruption. >> this is "balance of power" with david westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." we will start with the check on t

names like lvmh, starting to push lower. that is the sector breakdown story this week.ock stories for today, sap, the market likes the update in terms of the cloud transition and cloud business. cloud is doing well. 1.47 percent to the upside. they are having some operational issues, asml. asml is down by around 3%. the stock story out of europe, stocks have recovered since then, electricity day france, down -- electricite de france, down 14.63%. what is happening with the cost of living squeeze and the energy crisis. you need to put the politics on top of this. the idea is that edf is having problems and is going to end up subsidizing the power sector across france a little bit more. providing 100 terawatts of power at discounted prices. that will be increased by another 20. that will cost circa $7 billion. shareholders will be paying some of the pain that we are seeing with these higher energy prices in europe. kriti: pain in france and spain as well. soaring energy crisis in spain, causing a lot of concerns. the spanish economy minister joined bloomberg tv in an excl

trajectory of inflation we are definitely seeing as a recurring theme, whether it is in the luxury sector, lvmh displaying the amazing pricing power they have, or whether it is apple reassuring on supply chain concerns. it is part and parcel of the corporate earnings story. of course, whatever central banks do will have such a big bearing on the trajectory of inflation and all of those snowballing effect that companies will have to face this year. evidently something to keep and i out for, but earnings on their own probably not as big a factor as what the fed will decide to do next month. lisa: more about -- kailey: more about the macro then the micro at this point. thank you. coming up, we will stay with our conversation on the markets and our question of the day after that roller coaster ride in january. will we get a break in february? this is bloomberg. ♪ ♪ kailey: this is "bloomberg markets." let's get back to our question of the day. will february ring calm to markets -- february bring calm to markets? joining us now is ellen hazen, fl putnam investment management portfolio manager. ellen

find an index that takes up the european banks and i don't want to own them let me rattle off name, lvmhovartis, i'm reading down the l siemens, diageo, the yogurt company dannon they're all european stocks inside that index and they're trading at a discount to the counterpart stateside and the reason money is flowing with b of a is these companies have spectacular balance sheets and they're in recovery med over there and these are household name products stateside. some cases half of their sales are in the u.s so everybody hates the european postal code. they hate it, they always have, but it's outperforming the u.s. right now so yeah, i'll put a dollop of dannon over there. i'll eat nestle chocolates and i hate the european banks. you think morgan stanley or j.p. morgan has rough return on assets and you should see what they're flat lining and these guys look like they're dead. how is health care as a sector pick, why health care over everything else? >> because we're all getting old and crusty and the demographic is your friend on this one >> speak for yourself. speak for yourself, o'

companies under the lvmh group range from tiffany to sephora, and they exemplify the v-shaped recoverynce by much of the industry underpinned by a recovering economy and soaring chip prices. and shares of a chinese gaming platform surged on rumors it is going public this year. reuters says tencent wants to team up with at least one private firm for the deal and is talking to investment funds. tencent is third-biggest shareholder at 37%. rishaad: let's take a look at u.s. futures, just checking in, and a lot of this will be tech-based. of course, some of this perhaps shrugging off the nerves on the market in wall street on thursday. looking at that, and that does perhaps dampen things as the noise comes ever more hawkish. chinese stocks in a bear market at the moment. we had the shanghai, at one stage at its lowest level since 2020. we now see there is a recovery taking place. this is what it looks like for some of these industry groups across the region, and indeed, industrials and health care which are leading the charge. if we have a look at year-to-date, finance and energy are the o

where a giant corporation like lvmh has multiple millions of dollars available for litigation. >> as an employee, that would scare the hell out of me. going against a legal department with my meager resources. >> absolutely. >> there's a provision that provides for an opt-out once the dispute is established. what effect does that have on the parties? >> i would say based on prevailing rhetoric, it is probably going to disincentivize someone to pursue arbitration. what we're hearing is that the only solution, the best solution is going to court. at that point, the balance of power has changed most significantly, and i find that problematic because the are difference incentives, different driving factors. one with a low-value claim will definitely want to take it to court. a high volume claim would want to arbitrate. there are so many intersecting interests at that point. and so many disparities among the two individuals after a sexual assault or sexual harassment claim have been filed that it makes arbitration impractical if not impossible. >> thank you. >> gentleman yields back. ms.