Investors see trade tensions using. Winskongs prodemocracy in a landslide. Record numbers turn out for the first vote since the unrest began. Good morning. Lets have a look at what the futures are telling us about the European Equity session. The first of the week, looks like it could be positive. Factoring in a little bit of the balance we saw in the u. S. Market on friday and adding to that. U. S. Futures also suggests we will be higher. We saw that bounce in the u. S. On friday. Trump saying the u. S. Was very close to a trade tax. Lets put up that. Trading around the scraps of information with regard to trade dialogue between the u. S. And china. With that in mind lets get to the gmm. That shows us what is moving in the asia session. Hong kong up by 1. 4 . Trump line from friday. Also the news from headlines, china talking about tougher penalties for companies that break the rules around intellectual property. That may be is designed to sooth tensions between the u. S. And china between ip. Also factors around hong kong and devoting guessing taken place. Generally we are positive here. Heading towards our third month of gains for global stocks. Look out later in the week. Mind its good to our markets. Mark joins us now in singapore. Despite all the concerns around global trade, because we have managed to see the brighter side of trade recently, heading to the third month for gains as we edge towards the end of november. Is it going to be a positive and to the year . End to the year . Mark i think it is the same situation it was at the start of november. We got past the intimidating catalyst which was earnings season. The fed change, communicating they are only going to pause the easing cycle because it was only a midcycle using. We have gotten past those catalysts. That is why i think it is the same as a start of november. We will probably see slightly rocky but steady gains into year end. Willng parabolic, and it not be overly volatile. A little upanddown but overall we will make more progress. That is because there is nothing to derail the momentum. It is not because the earnings picture. An awful lot of liquidity in the system and there is nothing to change the trend. Anna centralbank liquidity, stock buybacks, all of those. Where does this leave the fixed income markets . One of our colleagues has been writing about how treasury investors are looking forward to a quiet year. We have seen not just stocks being boosted but fixed income markets being boosted this year. Treasury heading further best year since 2011. Mark an incredible year for bonds. Obviously most of those moves happened in august. All those moves and more. The yields have climbed off the yeartodate lows. An incredible first eight months of the year for the bond market. That was part of the trajectory that has boosted equity prices throughout the year. It will be relatively quiet into year end. Not much more volatility from here. We have slightly more positive risk assets rating but not taste on an excited growth narrative. And of course we have that kind of demand for those positive yields in the u. S. Treasuryverall the curve will stay quiet flat. And i think that will mean we might get awkward pressure in yields. Anna what do you blame for the troubles of going . Bitcoin . You can choose between the pbmc and avocados. Mark it is clearly avocados. I think the immediate dip in bitcoin was because the pboc clarified their enthusiasm for black chain is not the same as for cryptocurrency. There has been a longrunning theme is people get very excited by block chain. Dont think but i it is a reason to buy bitcoin. Worstn is one of the instructed cryptocurrency. It just has a first mover advantage. Many people mistook chinas support for block chain as meaning they are going if anything it would be the opposite. Pboc has clarified that today. That has seen bitcoin fall off fast. Made the point a few months ago that it seems like bitcoin is correlated to avocados. We noticed this the first half of the year. Now they have both crashed into the end of the year. I dont know. Bitcoin trading is generally pretty irrational. Inherent value so ultimately you just have to believe some other person will be more likely to buy it off you for no reason. So maybe the avocado reason might be the best. You about thesk pound. That reinforce the views the conservative party is well ahead in the polls. But we all remember 2017. As a result the markets are not getting too carried away. Uptick in sterling overnight. Mark i actually think sterling might drift lower. We have already priced in the optimism of one Party Getting a majority, and therefore that certainty the election will provide. This means a majority for the party that wants a harder brexit , and people are nervous about that. While we wont have Political Uncertainty anymore, we would have a scary situation for u. K. And for brexit. It will be hard for sterling to rally. I expect we might drift a little lower. How would we trade the election if conservatives got a majority . Then that would drift again as people start thinking about what happens next, about negotiating that Free Trade Agreement with the european union. And even if we agree on a brexit date, this is just a means of starting the muff tougher negotiations of trade after that. That scares people when they think about that. Maybe the markets would bounce on a kneejerk for the tories, but the markets quickly then would worry about the end of 2020 and potential for a cliff edge scenario. Mark, thank you very much. You can get involved with our question of the day. Today we are asking about alibaba. Lets get the bloomberg first word news update. Briefingaramco is potential investors in dubai as part of a sales place for the Energy Giants initial public offering. We have learned invitationonly meetings included discussions on strategy, and a dividend. These talks of the first outside saudi arabia. So 1. 5 s to sale of its stock. Seeking tois nominate a slate of 10 directors to the oil and gas producer. He owns a 1 billion stake in the company. He has been a vocal critic of occidentals pursuit of a rival. No comment from representatives of icahn or occidental. Xeroxs request to open its book after turning down its offer. They have not proven they are healthy enough for the deal. Hp says there are concerns about the business and outlook. Down its offer. Also says the 22 share bid undervalues hp. Former new york mayor like a Bloomberg Michael bloomberg is running for president. He will be joining a crowded race of democrats. He brings a mix of moderate policy. Says President Trump is an existential threat to the u. S. And its values. Michael bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. Global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna thank you very much. Next, the jewel in the crown. Lvmh agrees to buy tiffanys for more than 16 billion. Its an enormous deal for the luxury sector and we will bring you details of it, next. And remember, Bloomberg Radio is live on your mobile device or on your radio. This is bloomberg. Anna welcome back. 7 43 in london. Features suggest we will be higher at the start. A lot of excitement around the latest trade headlines. Lvmh is buying tiffanys for more than 16 billion. Share in pay 135 a the biggest luxury goods deal ever. Joining us is senior luxury analyst at bloomberg. Let me ask you about the pricing. This is something that did not get away easily. Lvmh had to stump up more and more dollars. 14. 5, now toted at 16. 3, which is still a decent deal if you can afford to do so. If we are looking at what it is offering, there were questions because some smaller brands were valued over 23 times, but this is a big deal and no one else can afford it. We think this has come through. Anna what is it about the famous blue boxes . And is it about those boxes the jewelry that tiffanys deborah two fold, it is an entry price point for the recreatef lvmh to and redefine merchandise for the market of the younger generation. That is what is missing from the portfolio of lvmh. They are doing well with christiane dior at the highend. Secondly, if we look at the market , lvmh was priced at number three and now it reaches number one. What it does is raises its market share in the u. S. From 3. 3 to 17. 7 . Bigger was a much element in the u. S. Market and similarly in asia. Anna it is about Getting Better exposure in the u. S. , is it . Deborah and in asia also. To nearlye from 10 25 . There is a lot that lvmh can do generally globally with the brand. It also gives it a good footing in jewelry overall. When we think about how lvmh operates, it likes to be number one or number two. It gives it scale. Itself has seen a very strong run in its share price in the last decade. Deborah absolutely. And if we look at tiffany on the other side, it was down 3 in q2. It is struggling. It is not quite getting how to talk to the different consumers at the high end where it does compete with cartier and then others. We think lvmh will be able to help it. Ok, great. Thank you for your analysis. Thank you for joining us. Our senior luxury analyst here at bloomberg. Of about 6. 8lue billion dollars, the latest in a string of acquisitions for the drugmaker. At is adding a collect cholesterol drug to its arsenal. Why does this make sense . Why is it that novartis is going after medicine . This is a story that we broke last week and it is coming through. Company forsing the nearly 10 billion. Why does it make sense . Novartis has been on and acquisitions spree under this relatively new ceo. They have purchased a lot of experimental drugs. Including in cancer research. Expandw allows them to to an area where they felt they had a gap. Cholesterol. It is a cholesterol drug. Feltis an area where they they had a gap to fill. Some otherlements areas they have like heart disease. This continues the trend of making more acquisitions. M a mna clearly clearly the path forward. This is part of the broader story we see coming through from the swiss giant. That is right. And if there is some criticism from the analysts side is that there is only one product that this company offers. They would like the critics to have said there was a suite of products. This is sure to be a blockbuster. There is a lot of potential. Can the company make this work . We know some other Companies Like sanofi they have similar products but they have not quite had the effect that people wanted to say. This Company Takes a slightly different approach so this is sees some help. If they can manage to broaden the company into more than this one product, this will be a very fruitful sees some help. If they can acquisition. Anna and Great Potential in the drug business. Correct, absolutely. They have areas like heart disease. Expanding into cholesterol is a business. It is become ever more important. Fitsts into the area it into the idea of rebuilding the company. The ceo has already gotten rid of assets he did not feel were working well anymore. This is one of the bigger acquisitions. They did a bigger one last year but this is among the biggest ones they have done so far. We will probably see more from them in 2020. Anna thank you very much, benny. Minutes away from the open of the European Equity markets for another trading week. Look at we will take a the stocks we are watching including construction in the u. K. On this and other stocks that could be on the move. This is bloomberg. Away we are seven minutes from the start of equity trading for this monday morning. Let us get around the newsroom. Is focused onrn the luxury sector. Tom is looking at uni credit. In dani burger is focused on u. K. Stocks that could react to some politics. It looks like bernardo know finally got the bid he was hoping for. Is being ableting to expand the jewelry portfolio. Deborah aiken put it well in that lvmh does not like to play third fiddle. But alongside tiffanys, they could potentially unseat richemont at the top spot. And and now, to tom unicredit. What is going on with turkey . The joint venture of the company that controls a turkish bank that the italian lender with writedowns and a stock purchase last year. In august, people familiar with the matter said unicredit wanted direct control of its stake which would give it more options on the holding. In todays news, it shows the two companies are trying to finish this by the end of the year. Anna thank you, tom. Politicser come u. K. Rubbing up against u. K. Corporate. What can we expect . At theifically looking housing and construction sectors. The manifesto yesterday included pledges on construction. As well as the measures on housing. That includes a stock like persimmons. And othersso sse looking at their holdings offshore regarding labor. No shortage of u. K. Stocks moving today. Anna thank you to the team. Thank you for bringing us the stocks that you are watching. First go is where to watch the stocks. The latest news lines around trade and President Trump on friday and from the chinese on intellectual property could trigger a bounce. This is bloomberg. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Anna a minute to go into the start of cash equity trading for another trading week. A minute to go until the start of the trading day. Let us take a look at the handover from asia. Asian equities went higher. The trade narrative gaining momentum a little bit. Positive comments from President Trump on friday. As in futures to the upside. European futures also to the upside. Flagging what we are seeing on the pound. Where is the pound . Given that we have seen the conservative party x ending their lead in the polls. In 2017, we know that the polls may not be right. What is get to the futures. Higher at the start of the trading day. Ftse futures up 0. 3 . Dax futures up 0. 7 . Looking for trade sensitive stocks. Monday morning, European Equity markets getting underway and getting into their stride here at 8 00 in london. We have mna to talk about this morning including novartis. Putting their mark on their sectors with some deals they are doing with tiffany and metta co. Medicine 0. 4 to the, upside. There is the surge we are seeing with the pound. Where is the bounce . Seems to be asleep. We are seeing a bit more of that. How long it will last is a different question. The dollarpound is flat. Let us have a think about where this leaves the sector picture. The big picture narrative is dominant. The trade narrative is what we are looking at again. All of the sectors across the European Equity market are in positive territory. Int a small area of red industrials and staples. Let us have a look at the individual movers. This is what we have on the movers at the moment. Big gainerhere is a up by 3. 9 . Interesting to see some other orury Goods Companies highend consumer Goods Companies moving higher. Unicredit up by 2 . They are changing what they are doing in turkey. Lvmh is an acquiring business. 1. 7 even though they had to dump a little more cash to get tiffany. The luxury sector is doing quite well. Italianownside, the construction business. And john would is a faller john wood is also falling. Are on the movers. Of that bigthe back deal we announced up 0. 3 . European equity market opening higher. There is the latest move on the chinau. S. Trade front. It would raise penalties on intellectual property violations. Trying to smooth over a Sticking Point in conversations with washington. Let me ask for your latest. Houghts i think the news we had had over the weekend i think the news we had over the weekend a significant. The focus has been on the of the agreement. For example, a commitment for the chinese to purchase more products ortural disclosing more information about how they manage their currency. But intellectual property has been much more of a Sticking Point. The Chinese Administration opening up to suffer sanctions on that point is good news. There are reasons to because she is. We have seen further developments in the hong kong situation. News out ofsome new the u. S. Administration suggesting that by the end of this year may be a little too soon to get a phase one d. L. If you look at how markets have moved in the last month or so, investors are right in my mind that the good news might already be reflected in the markets. Anna i know you are still keen on u. S. Equities. I have a chart showing how expensive u. S. Corporate america is right now. This is a multiyear trends. That may have stalled a little in 2019. The u. S. Has been getting more expensive versus the rest of the world. Is that movement is that something that the movement in trade will change . Typically, what we are seeing is that the u. S. Has been a safe haven. And trade headlines headwinds have been rising, people have been looking to the u. S. As a pocket of safe the within that. If we look into next year and you were to see the trade some ofs clear allowing the more cyclical parts of the Global Economy to rebound, i think the good news could be positive for markets in europe and japan that are typically growthed into the global cycle. In that scenario, that is the time you would want to step in to places like europe. Anna what does that do to fixed income markets . You might think there is better news and Global Growth. Where does that leave treasuries . The treasury picture is asymmetric in this scenario. In this upside environment i described, the amount of yield to push higher in the u. S. Is still relatively limited. Even if you have better news on still haveg you negative Interest Rate policy from the ecb and the bank of japan both considering moving further negative in terms of the rate asp