Stunner. A landslide electoral victory for the Pro Democracy Movement has asian markets soaring as a smashing success elon musk taking a victory lap as preorders for teslas cyber truck come rolling in. Worldwide exchange begins right now. Good morning and welcome to the show im dominic chu in for Brian Sullivan its monday, november 25th, 2019 your deal of the day lvmh buying tiffany for 135 per share in cash after weeks of speculation, much more on that deal coming up but as you can see here, both stocks reacting well stock futures incaindicating the dow will open up by 80 some points this after handing in its first worst Weekly Performance since around early october, but again the dow jones had opened up by 88 points. The s p by about 10 and the nasdaq by 32 if these gains hold into the opening bell for regular cash equities trading. With regard to the bond market, look at that as well we are seeing a bit of movement there to the upside for yields the ten year note yield 1. 75 note yield you can see that difference between those two, that yield curve between the 2s and 10s, 15 bases points we have seen the yield curve flatten a bit over the course of the past couple weeks. Lets now go worldwide look at the trade overall within europe, it is generally positive take a look at the dax, up. 5 and ftse almost. 75 german dax helped along by the german ifo index the overall markets for europe, translate into what happened in the asian session. The positivity from hong kong we just talked about, nikkei and hang sang up 1. 5 and the shanghai composite and Mainland China up. 75 of 1 as well. Prodemocracy candidates landed whats being called a stunning election victory our own emily tan joins us now from hong kong with the latest there. Emily, just how big of a deal was this for the overall market, the fact that prodemocracy candidates took that big of a win . Good morning to you, dominic. We saw a big cheer in the market as you just showed us with the hang sang index rallying 400 points on the back of a stunning victory for the pan democrats. They were able to secure 17 of the 18 District Councils this is the opposition and the first time basically taking over from the proestablishment camp. It was controlled by them previously and now overtaking that 17 out of the 18 districts. This is a record high turnout in terms of voters. 71. 2 . Close to 3 Million People coming out to vote in a population of 7. 5 million. Up for contest, 452 seats and 18 District Councils and this is the first time that all seats were contested carrie lam saying that voters were keen toex press their views through an election. Shell be respecting the Election Results and the government will humly listen to citizens opinion and seriously reflect on it. Hong kong enjoying one weekend of peace and calm that was this past weekend in 25 so we are keeping count of all the unrest that has been gripping the territory the question remains, though, if the situation will remain like this on the back of the election dom . So emily, you spoke about the unrest there is there any sense right now just with the initial reaction that the protesters have been quelled at least for the time being given the Election Results or could we still expect to see the level of protests that we have over the past several weeks and months now at this stage my guess is that things have calmed down. The protesters have gotten what they wanted. The Hong Kong Community has spoken out it was a huge turnout at the polls just yesterday, as i mentioned, some close to 3 Million People casting their ballots. They have spoken and chosen the pan democrats the opposition parties capturing the majority of the votes so 17 out of 18 District Councils so with this, it should calm sentiment. Weve seen a couple of calm days in the over the weekend the leadup to the polls because the government stipulated that it needed to remain calm so we couldnt have any violence in order for the elections to take place as planned thats exactly what we got and the hope is that things will remain calm. The ball is in the governments court. Lets see what they do next. Emily tan live with the latest Election Results. Thank you very much. Lets look at the other top stories were following this morning. Rahel solomon has a run down of the stories today. Good morning. Lets start out with the latest oen the trade front. So the global times says that china and the u. S. Are very close to phase 1 of a trade deal chinese paper, which is run by the communist partys official peoples daily, says that beijing remains committed to talks for phase 2 or even phase 3. Reports last week said that completion of phase 1, which had been expected this month, could slide into next year as china seeks more tariff roll backs and the u. S. Counters with its own demands. Speaking of politics, mie ball bloomberg is jumping into if race for president. He says he is uniquely positioned to defeat President Trump. Bloomberg will quickly follow with a mass ad campaign in key primary states. Overseas saudi aramcos top executives are taking their case for the ipo to investors across the middle east. Reports say they met with investors in dubai yesterday after trying to secure demand from kuwaits Sovereign Wealth Fund in recent weeks another road show is planned today in abu dhabi aramco may end up be the Worlds Largest ipo and shares are expected to begin trading early next month. We have breaking news out of the United Kingdom londons transport regulator announced it will not grant uber a new looips the company is not fit and proper to hold a private hire operator license it adds that a pattern of failures by uber placed passenger security at risk meaning it cannot renew the license. Were watching that stock right now down just about 6 in premarket trading here in the United States. Those headlines are developing well continue to follow them but the stock reaction negative to start right now for sharing of uber. A lot to digest ahead of what will be a very busy but holiday shortened week of trading here in the United States joining me from london, chief Equity Investment officer and lead Portfolio Manager of the firms large cap strategy eddy perken we taked so much this much about whats happening in hong kong and uber and so many different story lines to follow right now. What will be key for you in markets to watch as this week unfolds for thanksgiving here in the United States . Yeah. I think lets review the year. The s p 500 is up close to 25 markets around the world are up not quite that much but also have done very well and at the start of the year coming off the Fourth Quarter last year, sentiment was extremely negative positioning had become very cautious and we said we thought cash would be trash in 2019 because we thought risk assets, high yield, bank loans offered much better value you could get from the very safe investments thats proven to be the case the reason we thought it would be the case is because we had various catalysts in front of us we thought we would have a china deal at some point we thought we would have resolution to brexit and some of the concerns about a global recession recede into the background none of those catalysts have come through and the market has come up drastically. What im watching is positions we are starting to see at the margin investors take more risks finally. You start to hear the expression fear of misses out, people getting into the market, chasing the rally match thats what were watching very closely because the catalyst of trying to trade deal, improving economy are still in front of us. Theyre still in front of us, but theres a case to be made by some traders out there especially ones who are perhaps not as bullish as others that many of the positive headlines with regard to trade and Economic Development and with regard to a bottoming of the manufacturing cycle not just here but globally being priced into the market and thats why you see the market record highs. Sta kisically unlikely, a lot of overbought oftentimes with regard to the s p. Is that still the case i would take the other side of that argument i hear that argument obviously when stocks are up 25 theyre more expensive than they were at the beginning of the year so there is an argument to be made there i would look beneath the surface. What has worked this year . Until the last couple of months it was dividend yield stocks, it was safe stocks. Look at the high yield market, cccs the more risky side lagged single bs and double bs. Until the last couple months the market was led higher by the safest stocks. People are still doubting this rally and therefore i dont think all of the good news is priced in at this point. Lets assume all of that good news is not priced in still upside for the overall market. Are there places in particular that should outperform given the fact that theres a catch up trade in play . Yeah. I think it will be your more cyclical sectors, more valueoriented sectors i like. The banks. A lot of u. S. Banks are still trading modestly above book value which says the market still worried about a credit cycle, still worried about the yield curve. So i like the banks. I like industrial stocks there are some good industrial stocks priced pretty rich. But some of the more value, more early cycle, cyclical stocks i think still are a good place to invest then i would also look outside the u. S. Because every argument you make about the good news being priced in, if its true, its true inside the u. S it is not true outside of the u. S. Im theer look for good identities in the European Equity market because germany pmis are at low level. We see the europe turn higher, brexit could be a catalyst its the catalyst not just for the uk but the whole paneuropean economy the relative value of the european market, the more cyclical nature of european stocks as well as japan. Japan is a very interesting market that has improving Corporate Governance and improving shareholder friendly Management Teams and a cheap market relative to history, so i think outside the u. S. You find better value. Eddy perken, thank you very much live from london this morning. We appreciate it. When we come back on the show, not the most perfect of proposals but tiffany finally saying yes to a more than 16 billion offer from luxury giant lvmh those full details coming up. Plus, carl icahn making a new move to take control of Occidental Petroleum and how disney made history yet again. Ve busy hour still ahead when Worldwide Exchange returns right after this no two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Nongmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Well, the deal has been sealed with a bow on that little blue box lvmh striking an agreement to buy tiffany for 16. 2 billion, 135 a share in cash for tiffany. Its expected to close the middle of next year. The companys were reportedly in talks since tiffany pushed back on 120 share offer just this past month for now, lets bring in Corporate Finance and deems editor at the financial times. This is a deal that, yes, has been brewing for a while, but lets talk about why lvmh. Why not anybody else what is it that lvmh sees in tiffany and why is tiffany so apt to be with lvmh. Okay. Theres a lot to unpack there. Lets begin with the man who is behind lvmh, europes richest man, aka the wolf in cashmere. He has been looking for acquisition targets the past few years, he bought ramoa, bell mon the hospitality and now he has his hands on tiffany the opportunity for tiffany is specific with the jewelry, hard jewelry category lvmh portfolio is not as big so on the big picture, thats the reason why then there is whats the opportunity with tiffany itself. What lvmh is really good at is elevating brand values what they try to do is basically ultra premiumize, ultra luxuryize the space and segment whatever they get ahold of now, according to many people i have spoken to, if you go into tiffany stores and some of the places around the world, some of that shine has come off the company. Its in need of a renovation its already the midst of a turn around by a new Management Team when they made some changes to their board just two years ago under from an activist investor. What they get is a leader in ar nofault who is deeply familiar with revitalizing brands and strengthening them and making them as strong as possible where theres a ton of value. You mentioned the idea that this is about the luxury play. Tiffany in the past has had perhaps a few struggles here and there with regard to their product mix. Not only is tiffany about the high end side of things, very expensive Engagement Rings and the little blue boxes but they have a lot of stuff out there thats maybe 100, 200, 300 piece for the everyday buyer if you will how much of that product makes then changes given the fact that lvmh has the tilt towards the ultra luxury side of things . Definitely. If you consider louis vuitton, one of the best known brands within the lvmh stable they have the wallets in accessible range. What they try to do is build out the entire range of offerings to consumers but push the far end of that and let you go high up the value spectrum while keeping that still high margin but acceptable margin. I think they want to reach as many people as possible but really keep that cachet at the very end of the spectrum now, this isnt the first acquisition in the hard jewelry space. In 2011 arnault bought bulgary for 12 million. He was able to extend the reach and really repurpose it in a lot of way i think theyre going to take a play book they got from that and from some of the other experiences and mix them all together to see what they can do for tiffanys now they are paying a very big price which is something toels bear in mind the initial offer came in by 120 a share by the end of the negotiations they ended up 135 a share arnault is a ferocious negotiator if hes willing to move that much that quickly, its definitely a sign he thinks theres a lot of value to be unlocked. Theres a reason why they call him the wolf in cashmere. Arash, thank you very much we appreciate you. Still on deck for the show a fall from grace. Details on bitcoins latest plunge plus, elon musk hauling in the the preorders for the cyber truck and taking a knock at ford along the way. Well show you what that means Worldwide Exchange is back right after this protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Step up, please. Empty your pockets. Looks like youre all set for that business trip. Youve got your smartphone, laptop, your other smartphone. Woman is this all the devices you have . Your tablet. Seriously . 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Hpjecting xero bid to buy the company hp reiterates it believes the the 22 per dollar share significantly undervalues hp last week xerox threatened to go hostile in its bid if hp did not agree to friendly discussions by today. Hp shares up. 25 of 1 carl icahn plans to nominate ten directors. Bloomberg says this is an attempt to seize control of the Energy Companies board carl icahn getting more active in the occidental shares. Straight ahead on the show, check out whats happening on with the show. Taylor swift taking the American Music awards by storm and shaking it off at least for one night her very public feud with Scooter Braun coming up ahead. Stay tuned i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Nongmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Its going to be an up start to a holidayshortened trading week in the u. S. The s p up by 10 pnts oiand nasdaq up by 32. Keep it right here, Worldwide Exchan