. >> now you also have a luxury play here a little bit lvmh.ally interested here because again it also has exposure to the chinese economy, particularly with that consumer segment. where are you seeing some value in this play? >> well, i mean, lvmh, you would think would be having a strong year, just given how well the markets are doing and how much wealth is being created in the world, but it's actually down about 20%. china has been a problem. it's probably its biggest market. but i think next year will be better and the chinese market could improve, the us market could improve. the rich have never been richer, and that may mean more spending on luxury goods. it owns the louis vuitton leather goods like $2,000 handbags. it also owns tiffany alcoholic beverages like hennessy cognac and dom perignon champagne, as well as sephora and also bernard arnault, the ceo and controlling shareholder has been buying the stock recently. >> you're picking citigroup. i've got two questions, really? and why? >> well, you know, citi's been a perpetual underper

. >> now, you also have a luxury play here a little bit here, lvmh.'m really interested here because, again, it also has education r exposure to the chinese economy. where are you seeing some value in this play? >> well, you would think they would be having a strong the year given how well the markets are doing and how much wealth is being created in the world, but it's down about 20%. china's been a problem, probably the biggest market. but i think next year will be better, and the chinese market could improve, the u.s. market could improve. the rich have never been richer. it owns louis vuitton leather goods like $2,000 handbags, tiffany, alcoholic e bev with ranges like hennessey cognac as well as sephora. and also bernard around fault, the ceo, controlling shareholder, has been buying the stock recently. >> you're picking citigroup. i've got two questions. really? and why? [laughter] >> well, a perpetual underperformer. it's been the worst among the big banks. i think it finally could be turning around. jane phrase frazier's been the ceo, she's re

two years but if go by the 2026 estimate, it is trading at less than 16 times earnings, compared to lvmhdon't have the pedigree i'm just not sure about how much confidence to have in the zegna estimates. deutsche bank has a buy rate and price target of 12.70 and 10.50. those represent nice gains for the stock. but morgan stanley slapped it within underweight rating. and a $7.20 price target gib the companies recent sales trends it is tough to blame morgan stanley for being negative business has not been that good. so here is how i see it. it is an intriguing story. i love the core brand. i've worked two suits this week that were zegna and i feel good about the strategic plan if you believe they could get their act together and-t be more like the large diversified fashion houses then would thwould be a great time to buy the stock. it is still a favorite but i'm not a believer at least not completely. we just don't know how this strategy will play out in the intermediate future and the analysts don't know either so let me give you a bottom line on a complex story if they could hit the cons

they use the same wherever lvmh is producing their most luxury goods is not different from zara or h& and in fact, some of those really big fast fashion companies, because they have such a big audience and then they have so much pressure, they sometimes, you know, raise the bar this much compared to some of the more luxury retailers. so that is to say, we don't have to throw under the bus compared to anybody else. this is true. thank you. this is i will never buy dior again again. i was i wasn't buying. there's a sentence as well. a couple of sentences. but you say it's just so beautifully worded that you you talk about keeping your words tucked in your cheeks. and there were words racist, colonize, objectify. i you're tucking them in your cheeks because they would make you less agreeable. how do you feel about these words now? and are these words just like flying out of your mouth now or, you know, how in relation to then what what are how do those words feel to? you now. i mean, those words are all very true. um, and the older that i get, i don't know if it's just about getting olde

you could have stopped me on merck but you didn't whenever you want say stop at&t, cisco, ibm, meta, lvmhping you >> whenever you want. >> are you sure you're stopping me on this card? >> yes this is the card. >> i'm putting this aside, putting it right here. my money goes on top i want everyone to see what could have been. could have been general electric, wells fargo, netflix, adobe. here is where this gets fun. i think i know what contessa would have done with her stock i think that what you thought to yourself is what will i pick something that's been in the news recently, no chance i think she said i'm going to manage up. i'm getting good air time. we're going to go with our parent company, comcast owns nbc and cnbc did you circle comcast is she comcast she is. >> look at this. >> comcast, everything >> all right that could be a little predictable maybe. >> that is comcast. >> scott, close your eyes for me, please close your eyes for me and keep your eyes closed come back to me, everybody, so you can see his eyes are closed. go back to me. you see something just appeared out of nowhe

it's been a rough year for french billionaires including lvmh bernard arnaud.slower spending not in france or elsewhere, but china and weakened appetite for french assets with the political volatile climate in france. i know the violin is tiny. it's the tiniest of all tiny. >> a statement on luxury goods. >> and actually a statement on china. >> of course. the slowdown there and how profound it is in terms of the impact. >> and even in some of the shifting winds about what people are buying in the u.s. and elsewhere in terms of what luxury is. there is a little bit of that. there's a stepdown. you go to the stores and they are trying to sell lower priced products. >> which lvmh said they will never do. >> they are doing just a little bit. >> you would know. i don't. >>> new year's eve drone show in central park has been canceled after the failure of the show by the same company in florida last weekend. several drones that collided -- collided in the show injuried a 7-year-old boy. the central park drone show was set to replace the fireworks show that was cancel

the lvmh ceo told bloomberg he was optimistic about the group's growth in its largest market. >> i amlways optimistic. and the people have often concerns which are not materialized. minmin: now sources say the store may not open until as late as next year. the slow progress, symbolic of the challenges european luxury brands face in china. lvmh shares have plummeted since the start of 2024, revealing the scale of the slump in demand from chinese consumers. another luxury group worrying that its annual profit will fall to the lowest level since 206 due to weak chinese demand. prestigious brands are also affected. swatch shares tumbled this year after sales in china, which account for about a third of its revenue, fell sharply. >> many watch manufacturers are really dependent on china generating 40%, 50% of their sales. minmin: this pullback in lavish spending is hitting some of the world's richest. the ceo's fortune tumbled from the top spot in the bloomberg billionaires index. he fell out of the global 100 richest. shoppers are shying away from excess buying is beijing grapples with lo

high fine jewelry and that high worth individual to continue to buy, based on those names out there, lvmho better in the second half of the year and they have big exposure into travel retail. a lot of these companies admit single-digit growth. from high single to double digit growth in those niche individual brands with, we think, waiting lists out there still for the higher of importance. matt: on the investor side -- consumer side, not the investor side, how prices come down and is there a luxury watch price index we can look at? deb: there is. the news site works with sub dial. they have their own index. we look at swiss watch industry data to look at the average price. looking for it to begin, it's absolute numbers that are down in value terms across the industry for swiss watches, 3% to 4%. behind that, when you look at the ones above 3000, 10,000 and above would be at a manufacturing price, you could add a lot more onto that the retail value. to answer your question, that is what we saw on average across the industry for 2024. sonali: we will have to leave it there, we are running o

for example, lvmh, a barometer of luxury segments, down by 14%.e egg, which owns gucci, is down by 14%. in contrast, companies that serve the wealthiest clients, like mez, they are up by 20%. for us it's a signal that the wealthiest customers will keep spending and companies can still have the ability to increase prices, put on those price costs on consumers and can keep going. i would like to highlight one american brand for you guys, the stock is up by 60%. again, it's also a signal that american consumers keep spending . the company also does a really good job in terms of marketing, promotion, working with celebrities and attracting young customers. we have seen that from analysts and investors who really like this stock. david: yeah, just looking at ralph lauren, it has been such a solid performer. what's the expectation for just luxury spending in 2025? >> again, it all depends on consumer strength. here in the u.s. we always talk about china, right? we always talk about stimulus and how chinese customers are willing or not willing to spend,