We continue to buy apartments. It provides really good yields to our current investors. It does not get intermediated by the internet. You still have to live somewhere, you cannot live in your computer. We just bought a hotel in West Hollywood that we will renovate. I have to do a little advertising, one south beach was voted one of the top hotels in the United States and one central park is the second best. Brooklyn was just open with 13th in new york city. Erik let me ask you a question about amazon. They are looking for a second u. S. Headquarters. Have you got a real estate solution for them . Erik they create so much demand and cities they create some much demand and cities are so excited to have them. Erik they do not build their own buildings. They have their own Distribution Centers so they cannot do everything. I think boston has a good shot at that, the technology, infrastructure, and educational base, just the zeitgeist of the city. Other places you think they may go are the southeast. Raleighdurham, atlanta. Erik transportation hub. Starwood as you mentioned is the second largest owner of multifamily residential in the u. S. You have found a way to monetize your singleFamily Business. How do you monetize the multi Family Business . We are selling probably as many houses as we are buying now and the yields on sale are around 5 . You can borrow from fannie mae or freddie mac at two and three quarters with leverage. It is positive leverage today for an investor. to 10 current yields we could take it public or we could just sell it in erik chunks. Between palm beach and miami. I am happy to own this asset. I do not see any disruptions. Propensity of americans to rent is something millennials are doing. Plus, they are swapped understood debt so i do not see that changing anytime soon. It is almost a 50 year low on homeownership, 62 of people own a home. The millennials say they will buy a house at 38. They are getting married later so they do not need a house. The 29 year average, it is an average. I am sure it is 24 in the midwest and 36 in manhattan, so depending on where you live, that impacts demand for multifamily. Erik you just said you are selling as much as you are buying. What are you selling . Multi. We are calling the portfolio where we have calls for dallas, which has been a strong real estate market. Historically, there is no bearish entry in dallas other than money and they have built everything they could possibly want. Dallas in the great state of texas, which has no taxes, by the way, is doing great. Houston has a chemical and oil based but dallas does not, and it is attracting a lot and so does austin but austin is smaller so it can get overbuilt faster. Office buildings in austin, texas. We have not been in the office space for a while but we are pretty bullish. I worry about california and new york. New york has had three quarters of a million of three quarters of a Million People move out to places like texas where they do not have any taxes. If the tax reform is successful and you can deduct state and local income taxes, loss of bodies from california, new york , connecticut, massachusetts will accelerate. When you were asking me earlier about things to talk about, disruption in real estate is something i spend a lot of time on. Cooper,ere is airbnb or going tohere changes change the value of real estate . Hotels used to make a lot of money in telecom. We would charge you 35 if you were so dumb as to pick up the phone and call home from the phone. Then you got a cell phone and the income stream went to zero. Forma isssing our pro on parking because nobody is parking a car. The cities have all this legislation, like i had in miami, we had to build 400 parking spaces. They have been empty 100 of the time. Even if the hotel was 100 occupied, the garage was not full. What do you do with all these parking lots . Looking forward to the day when the start locks sidewalks double in size because you have people walking, or maybe you will have a monorail. We will be flying our drones as they take us around to different places. One of the things i think about and the biggest user historically of office space is banks and people related to banks, but maybe that will not be the case if we go into a cryptocurrency. Erik like bitcoin all the time . My son would like to be in bitcoin all the time. I am still trying to figure out. Blockchain probably will succeed. Erik thank you for spending time with me. Sternstern licked licht, a thorough advancement investor. Mark fantastic interview. The future Investment Initiative in riyadh. Have a look at where equities are trading, roughly 23 minutes to the end of the wednesday session. Mid30. , currencies up against the dollar, sovereign bond yields gaining. Busy corporate day today, heineken forecasting that the euro strength will reduce earnings this year. Led to said poor weather a drop in thirdquarter shipments in europe. It joins the litany of warnings as the currency strings it swings against their favor. Heineken shares down by 3. 8 today. Itsfrench company raising outlook. Stronger Civil Engineering markets in france helped boost thirdquarter sales. Benefiting from improved confidence in the French Economy and an acceleration in infrastructure housing and other Public Investment building investment, i should say, including a project dubbed grand capital. The french britains biggest more digital under, lloyds banking, little changed mortgage lender, lloyds banking, little change. It is on track to meet targets. The u. K. Credit card addition to diversify the banks talents sheet. 90 minutes into the session in the u. S. , what is it looking like question mark julie not so bad if you are able. All three majors are down, dragged down by bad earnings. All having to do with numbers that are disappointing or numbers that matched but not the highest estimates. If you look at the bloomberg and the groups that are on the move, we have a pretty broad downturn. Not a tiny scint of green on here. About 1 5 of 1 and that is the least worst group of those we are watching. Within telecom, there is a little bit of bad and good in terms of the stock movers. At t lower after the company said it added 117,000 new wireless customers in the quarter, which actually matched analyst estimates but trailed growth of some of its competitors. It continues to lose paid tv customers. , 85 billiontion acquisition of time warner is still pending at this put some. Ressure on it verizon following along with at t but sprint added 168,000 subscribers last quarter and projected cash will be close to break even this fiscal year. Of the underperformers today, down 10 . Its forecast for gross margin disappointed some analysts and according to Morgan Stanley the microprocessor business barely grew. They make various devices for cardiovascular treatment. The company came out below estimates and they will likely delay the launch of a european product. That is disappointing investors as well. Take a look at the bloomberg to see where we are in this earnings season. The top line looks at the s p performance since the beginning of the earnings season. We are still in the green but calming down toward unchanged. The bottom tracks how many members are reporting per day, this is a great tool. Today we are near the peak of the number of companies reporting. We are also near peak of earnings season in terms of how busy it is on a daily basis. Vonnie thank you for that update. We will be speaking with republican governor Chris Christie of new jersey. He was one of president trumps earliest supporters. What he is saying about the Trump Administration now. This is bloomberg. York, i amm new vonnie quinn. Mark live from london, i am mark barton with the european close 16 minutes away. The u. K. Economy, a surprise to the upside today. The last major economics report before next weeks boe meeting. Hanson. Us now is dan have you changed your view of what the boe will do on the back of this . Is it even more likely they will hike rates . Dan i think so. , we had both sounding pretty noncommittal and we do not think they are going to go for the hike in november. We think next week you will get seven votes in favor of a hike, two votes against. Strongerr today was than the beer we were expecting in its august inflation report. We think that essentially sealed the deal. Mark what message is peddled along with the rate hike next week . Many discuss one and done. That is not the message they are going to portray . Dan i think the key to the guidance they will issue, if the economy performs as they expect and the thing to look out for is where they see the , aroundment rates going 4 is where the they view sustainable and if that forecast comes to for rish and then yes, more hikes are likely. Fruition then yes, more hikes are likely. You still have the big brexit uncertainty. We think growth will be a tough week for them. Taken all, we think a november hike and then it will be one and done. Vonnie this is the problem for the bank of england policymakers. If you look at chart 2224 it shows u. K. Gdp growth and it is anemic, and yet slack is disappearing from the economy. How do you forecast what comes next and whether a rate hike be a good thing or might derail any kind of further growth . Dan it is very difficult. Our view is that one and done will be an unnecessary headwind to the economy, but if the bank goes further and begin a tightening cycle, that is when the mistake will come. Be a mistake having to reverse the action they take so if they go with one hike in november they will not have to reverse that. One of the points about growth being anemic, you are absolutely right but that is a function of productivity growth in the u. K. Economy being extremely weak. The bank does not think the economy can grow by more than. 4 a quarter without inflation pressure beginning to build and with unemployment below the estimate of what they think a sustainable, they think rate hikes are likely beyond november. Vonnie it is an independent body just as all Central Banks are, or should be, but they have to watch the political situation. We are seven weeks away from another summit between theresa may and the european union. How do they figure if there will be a divorce bill paid, when do we move on to trade talks, and how do they figure that into future scenarios . Are the bank of england conditioning on a smooth transaction of theresa mays version of brexit. Theresa may, david davis, and Philip Hammond have all said the deal will be part of a bigger package that potentially will come later on in the brexit negotiations. That leaves a huge mountain of uncertainty for the bank. They are conditioning on something that may or may not happen so that is another reason why we think next year they will not follow up the hike. I do not think it will be followed up any time soon. Mark has been known to attack the governor, the tory lawmaker, some touting him as a potential leader, he attacked carney, opponents of brexit. He attacked carney for a panic Interest Rate cut in the wake of brexit that was unnecessary and pushed the pound further than it would have done. Is the criticism of carney fair . When people say that maybe he a part d an opponent to brexit . Dan i think most economists would say a decision to leave the e. U. Is going to limit trade flows, it is going to weaken migration flows, and both of those are probably negative for the economy, certainly in the long run. In the shorter term, nearly all economists got it wrong. Whether the Interest Rate cut was a wrong move, i debate that. I think you should place it in a wider package of what the boe did around that time. You have a lot of financial policy measures as well. Suggests,ling, as he would not have fallen as far, that was just the brexit, wasnt it . Dan i think the point on the pound is it has been a structural shift. The u. K. Economy has become less open and the markets have adjusted now to that fact. You can think of the pound dropped a compensation mechanism , our relationship with our biggest trading partner is about to change significantly. Reallypound drop represents a structural shift in the way the economy will operate going forward. Mark thanks a lot, bloombergs u. K. Economist dan hanson ahead of the ecb tomorrow and the boe next week. The chinesel ahead, commonest party finished its National Congress so whered where do the president and the reform agenda stand . More from beijing next. You are looking at the web feed at the bank of canadas news conference. Saying the boc is more preoccupied with Downside Risks to inflation than other matters. The central bank had its is held 1 benchmark rate steady at held its benchmark rate steady at 1 . Live from london, i am mark barton with the european close minutes away. Vonnie live from bloomberg World Headquarters in the ark city, im vonnie quinn. Superstorm sandy slammed into the new jersey coast, causing billions of dollars of destruction and damage. David gura is here with the man who led new jerseys recovery effort. David Chris Christie hear me now here with me in new york. How pleased are you with how far we have come from then . What would you like to see your successor focus on when it comes to recovery . Gov. Christie we have outpaced new york, outpaced mississippi and louisiana postkatrina. We started with 360,000 homes destroyed or damaged so until those families are home i will not be satisfied. There are still resiliency projects being done that are not finished. We have almost the whole coast done with dunes to protect the coastal homes. We are doing resiliency projects for our Energy Infrastructure had all of our gasoline refineries, all of our infrastructure was destroyed. It has been rebuilt and made stronger. I think the next administration will have to make sure those things get finished. David what has this experience taught you about the role the federal government should play in a disaster like this and generally . In a Natural Disaster as severe as sandy, the federal government has to take the leading role in providing the funding to get this done. No state can absorb this on their own, so they have to play a leading role to fund it meaning they will be in charge of how the money is spent. That should be done in coordination with the State Government. The role of the federal government first and foremost is to protect the health, safety, and welfare of citizens. Nothing personifies that other than war, then responding to a Natural Disaster. David you see the desperation and puerto rico, texas, and louisiana and i wonder how you react to that. People who are fearful the government will forget them, what are you watching in terms of federal response to the storms . Gov. Christie there has to be a huge volume of federal response and i think there has been. The State Government has to understand that ultimately this is going to be their responsibility to fix. So the territorial government of puerto rico or the State Government of texas, they have to be the ones to get their arms around the needs of their people. When i look at the people, i want to grab them and say, it is going to be ok. It will take more time than you want it to take but it will be ok. It has been in new jersey any york and i am confident it will be in puerto rico in texas. Puerto rico and texas. David you were on the ground when the president was coming through. What is the most positive role a president can play going to a place like that . Gov. Christie to let people know they have not been forgotten. People fear they will be forgotten. In the context of sandy, it was eight days before a president ial election that the storm hit and six days before president obama came. The politics were kind of tense at that time in the country, but the president rose above it. He did not insert politics and neither did i, and it should not have politics inserted. The thing the president can do is twofold. When he sees it himself, he can go back to washington with a clear vision of what the damage is, how severe it is, so when people try to get him to go on the cheap he will be less likely to do it. It is an enormous lift to the people that live there to know their commander in chief, their president cares enough about them to come on the ground and see them and touch them and let them know he will not forget them. York was one of many cities to put in a bid to have the new m is an headquarters amazon headquarters. What do those Companies Say about the labor market . Gov. Christie it says everybody is desperate for jobs. Even though the Economy Today is better than it was when i became governor, it is more than half their. More new jersey ends working today than it any point in the state history. We are third in the country in per capita income, so things are going well in new jersey and we have recovered from the recession. A project like amazon with 50,000 jobs that average 100,000 a year salary, those are really economy changers in a particular city. I think that is where you are seeing so much enthusiasm. It is not just the number of jobs, it is the quality of the job which has always been a struggle in this economy to get people making more money and a livable wage wherever they are. That is why you are seeing so much enthusiasm, but everyone should remain calm because it is coming to new york. David how frustrated are you on the pension issue . Doyou are leaving office, you have a prescription for how to remedy that . Gov. Christie the prescription is there but there is no political will to get it done. The Democratic Party is captive to the publicsector labor unions. 8. 8act is that i have put billion in the Pension System in the last eight years. That is double the amount that the last five governors in new jersey put in combined. We got rid of cost of living adjustments to help save 120 billion over the next 30 years. We have done a lot of things to try to help, but you cannot came up keep up because the Pension Systems are too rich and what people forget about is the Health Benefits as well. The Health Benefits in new jersey given to publicsector workers are Platinum Plus as defined by obamacare. If we took it to the gold level that obamacare says should be the top plan, we would say 4 billion a year. We can put that into the Pension System and the Pension System would be fine within 20 years. There are prescriptions to get it done. We have to lower benefits and people need to understand that. By the way, i suggest you do not have a pension. I do not have a pension. I have a 401 k program. That is what we have to eventually get to in this country but the Public Sector has a stranglehold on all of this and will not let it happen even though it is bankrupting our country. David that part of the tax code is coming into focus, state and local Tax Deductions. What is your message to washington on the potential dissolution of that part of the tax code . Gov. Christie if you do that you have to lower the rates enough to make sure a high income statement new jersey gets the benefit. I advocated against the state and local Tax Deduction when i ran for president. Even as governor of new jersey, because i do not think the federal government should be subsidizing the huge growth of government at the state and local level. What has to happen in return is the lowering of rates enough so the high income states where there is a high cost of living, like new jersey and new york and california, the lowering of rates basically washes out the loss of that, remembering that two thirds of the people do not even itemize. They are not even getting the benefit of that state and local deduction in their federal returns because they do not itemize. It can be done the right way but you have got to lower those rates enough to make it a relative wash. David on the campaign trail you were the most outspoken candidate about addiction and opiate abuse. What do you want to hear from the president . Or has been a lot of frustration that he has not declared it a national emergency. When will that happen . Inn will we get a drug czar place . When will they take this as seriously as they need to . Gov. Christie i hope soon. I have spoken to the president about this for years. He cares about it and the actions you will see him take in the next few days will make it very clear how much he cares about this issue and what he will be able to devote. Addiction is a disease, a chronic disease, and we need to treat it that way. We need to stop making moral judgments of people. I hope nobody starts trying drugs, but when they do, what are we going to do about it . Let them die . 140 two people a day in this country are dying from drug abuse. That means we have a 9 11 every three weeks in america. If we had a terrorist organization killing 142 americans a day, how much would we be willing to spend to stop it . I think we need to speak about it in those terms, the pain and suffering it is causing, and we need to step up aggressively to go after it. I believe the president is going to do it. I think that is why he asked me to chair this commission. If he was looking for a minimalist he would not have picked me. I am very confident in the president. I think tomorrow you will start to hear the real specifics of what the Trump Administration will do to start the move this back. I need to caution people, this probably will get worse before it gets better and it will take time to fix. David one wonders what can be done at the federal level. As you look at how bad this problem is, what can the federal government do to curb it . Is this something that will be solved more at the local and state level . Gov. Christie both. For doctors who write these prescriptions, they do not have to have any continuing education on opioid drugs. The dea can finish that. I can say no more license to write these prescriptions unless you take certified continuing medical education on how to educate yourself. The United States consumes 83 of the worlds opioids. What are we doing . I think the dea can step in and be much more aggressive in terms of regulating what physicians are doing. I think we can through the National Institute of health work with the Pharma Industry to come up with more nonopioid pain relief and medication assisted treatment for addiction. Those can be done at the federal level. At the local level you have to get into the treatment issue, continue to work on education at the school level, and it needs to start in middle school. Kids are getting addicted in middle school. If we do not Start Talking to them about it, if we wait until high school many of them will be lost. David what is next for you . There are a lot of vacancies in the administration. Did we see a drugs are Chris Christie . Zar Chris Christie . Gov. Christie i will not. I think what is much more likely for me when i leave is to go into the private sector and start making some money. We were out to dinner with some friends and they asked if i would go to washington and my wife interrupted saying, i hope chris reaches his financial potential. I have two kids more to go through college. I suspect i will spend some time in the private sector. I will not rule out going back into government but i do not need another title. If im asked to do something where i think i can have a real impact, than i would consider doing it but im not looking for another title. David lumberjack, then. Chris christie. Back over to you. Vonnie thanks to david gura. Through thetake you action, stoxx 600 down today, lowest since september 28. The bulk of the decline came in the last 90 minutes of the session, down for a second consecutive day. Investors keeping their eye on the ecb tomorrow and a whole host of earnings. Usrea fells dead will tell about it in a second, but gucci container during continuing to glitter. It underlined the revitalization. Shares up by 9 today. Record gdp data out of the u. K. Came in stronger than expected,. 4 . Services up. 4 . Construction strength the most in five years. The big takeaway is what does this mean for next weeks boe meeting . The impression as they will raise Interest Rates next week. That is the gdp data. Is the confidence out of germany today, unexpectedly rising to a record high in october, signaling the growth momentum in europes largest economy is far from waning. Optimism suggesting that germanys Strong Performance over the last nine months has spilled into the final quarter of the year. , german hypor survey. Vonnie elsewhere, the south African Rands slumping to its weakest level this year by 2 compared to the u. S. Dollar as the finance minister signals the company would ramp up debt to make up for a budget deficit. Foring us is robert brand bloomberg news. Why is this so significant . It would seem maybe it is necessary. That thees, i think minister is in a bit of a hard place and he should be commended about south africa about south africas prospects. Wenk slowing growth think slowing growth over the next three years and we are seeing a significant ramp up in debt, bringing it to a level of 60 of gdp where it was 53 or 54 . That is a significant increase so we will see more supply in the bond market and inflationary pushes, and probably the rand weakening. Vonnie 60 debt to gdp does not sound so huge when japans is more than 200 and the u. S. Is above 100 . Robert the thing about south africa, a large proportion is it is a significant chunk. A downgrade becomes highly probable, given that all these fiscal targets have been missed. In the event of a down trade we could see a massive capital outflow because a number of investors are invested in funds that track indexes of index rated countries. We could probably see outflows of as much as 14 billion and that would put a lot of pressure on the rand. Mark to what extent is the political process hamstringing the economy . They are wrangling over who will zumaise zuma replace as party leader. Robert that kind of looms in the background and part of the problem is this leadership struggle is in a way paralyzing the government. Risk becomes a high. A lot of people adopt a wait and see approach to see what happens in december, and there is much riding on that leadership election so it is a contributing factor to the economic decline that we are seeing at the moment in the country. Mark bloombergs robert brand in cape town, south africa. The pioneer of classic american cool fashion is next, Tommy Hilfiger will tell us what to do in an era where retail is struggling in some parts of the world. This is bloomberg. Live from london and new york, i am vonnie quinn. Mark i am mark barton. This is the european close. Luxury giants soaring more than 7 after the owner of gucci reported a gain in sales. Joining us, andrea felsted. The key for investors is whether ,his growth will be sustained something you posed today in your gadfly piece. Andrea i think it will be for a little longer yet. I think it has further to go. Mark what is the issue . Andrea the thing is the revamped gucci, the new look was a very distinctive look. Very different from anything else that was around, it had a big impact. Fashion is fickle and we do not know how long that will continue. Young people who have been buying it want to change, but i think there is more to go for. Mark caring has defenses, dont they . Andrea they do. That is why sales continue to power ahead. They have also got a stake in, in puma. Mark not doing right as it continues to face challenges. Andrea it was very exposed to asian shoppers and when we had the downturn in chinese demand years ago it hit brand and they are trying to reposition it away from classic looks to get a new look. Mark forward earnings, 23. 5 times. Is it deserved or not . Andrea they are seeing a very youd if proposition you are thinking about lvmh as the big, dependable bag can put everything in, gucci is the glitzy or showpiece. Mark you start with heralding the low for, it is the low for loafer. R, it is the andrea in new york what struck me is how many ladies are. Earing loafers gucci is building in china but the higher euro is definitely a threat. If there is an event that stops chinese traveling, there are risks. We have had a rate run with luxury. The gucci revival started about this time last year. Mark nothing short of phenomenal. Andrea it was a new design that really changed the look. It was products that people wanted. People were excited. Very different from Everything Else out there, bright colors, embroidery, big logos, and it struck a chord. Mark distinctive looks fall out of fashion, dont they . Andrea burberry, a fantastic look at their latest fashion show. Really exciting. Whether it will be quite as big as the gucci turnaround, it is already the celebrities that were wearing gucci early on, they started wearing burberry. That is a good sign. Mark andrea, good stuff. Coming up, the pioneer of classic american cool fashion, Tommy Hilfiger will join us with how he keeps his brand alive amid the death of brick and mortar retail. This is bloomberg. Mark live from london and new york, i am mark barton. Vonnie i am vonnie quinn. This is the european close. How do retailers and brands particularly keep up with evolving Industry Trends when theys businesses like amazon is down lower costs and more than 5 . One person who seems to have it figured out is Fashion Designer and founder Tommy Hilfiger. He spoke yesterday at the wwwv apparel and retail summit. With us some of the pearls of wisdom that you and chris shared on stage. Kris is the genius behind social media and marketing and her daughter kylie started her cosmetics line not two years ago , and the valuation is well over a billion dollars are ready. It is direct to consumer through social media marketing. It sounds quite simple, but when you have hundreds of millions of followers as the kardashians and jenners do, it is not difficult to tap into your fan base. Vonnie yesterday we saw lord and taylors Flagship Store being sold. Ringlso saw this morning ke up 40 . Is this a pocketbook question . Andt that people earn less can afford to buy into something direct to consumer . Troll thelennials internet and look for the best price, exactly what they want when they want it. ,hat is why we do the tommy now see now, by now Fashion Shows the has the consumer wants immediate gratification. With our gigi hadeed collaboration and the Fashion Shows worldwide, we are really bringing socalled a Flagship Store to the audience. Seem to have figured it out but you were always great at partnerships. Is that how other brands scale . ,ou are still in 100 countries still have one hundred 18 stores and you did 6. 6 billion in sales last year. Evolve with the times and stay a step ahead from a digital standpoint and from a technical standpoint, because i really believe that is the future. My thought was to marry digital and technical with fashion, and really bring our experiences and product to the consumer through, i would say pop culture. I have always been connected to musicians, to hollywood stars, to sports stars, to influencers. The idea is that i wanted to tap into their familys, so worldwide now we do that, not only with gigi hadeed that we have superstars representing the line in china and india and all over the world. Vonnie that is you and we can make an exception of you because you were very quick to jump on things like making fashion week accessible to the layperson. Not all brands have done that. What does retail look like in five years, 10 years . Tommy i think it is rapidly changing and i believe it will be on the channel. Hanneled, meeting you will have to reach the consumer in many different ways and bringing experiences to the consumer. I think if people are not with the program now, catching up will be did be difficult. I like to stay a step ahead. Vonnie we are seeing hundreds and maybe thousands of brands do it for a short while and maybe they go bankrupt or maybe big equity comes in. That is just one example of very many. A lot of brands going bankrupt and struggling retailers like gap, is it over for them . Is it over for those bigger retailers . Tommy i think the strong get stronger and sometimes the weak fallout because of financial reasons and keeping up with the trends and on the fasttrack is not an easy task. You really have to invest, surround yourself with the right people, the right experiences, the right logistics. It is quite a complicated ball. F wax, you could say i believe that the strong get stronger. Brands are not financed properly they are not positioned properly, they could easily fall out. Vonnie so who gets big . Is it just the brains behind the to a or is private equity certain extent responsible for deciding who actually takes the market share . Tommy private equity is certain important in helping finance different brands but i believe it has a lot to do with sort of the vision of either the ceo or the founder or the chairman. We have an incredible team. Who ownsned by pvh, calvin klein and a number of heritage brands. We have a master plan and strategy, and dynamic people around us thinking of what to do and how to do what we are doing 24 7. Vonnie do brands like, you do theyd the jenners, survive or get eaten up by a conglomerate . We are seeing loreal try and buy up lots of things. Technology is getting into beauty and fashion to wear brand like loreal are becoming tommy i think if the brands founder has a big fan base, that fan base becomes addicted to the product and to the experience. I think that it depends on the brand. I think it is rapidly changing and i think the Department Stores who are changing with the times will succeed. Vonnie i want to ask you about politics. You shape politics should stay out of fashion. You have no problem dressing the first lady. The made in america question, is that important for you . It places an emphasis on allamerican, classic looks. Is veryade in america important. I would love to make everything in america if i could find the factories. They do not exist here. It is my duty to bring the consumer the very best product at the very best price. Manufactured with the very best practices. I stand by that through and through. I think it is really very important to bring the consumer what they need at the right price point, but it has to be manufactured with the best practices. Vonnie thank you for sharing some of your insights. Fashion designer, founder, and icon Tommy Hilfiger. Mark excellent interview. We are going to talk investing in china after the Party Congress. Mark lythgoe is our guest at 3 00 p. M. Eastern, 8 00 p. M. London. Have a look at where european markets ended the day, it went negative, the stoxx 600 finishing the day down 6 10 of 1 . The big macro event is the ecb meeting, we will be all over it. This is bloomberg. Vonnie it is noon in new york, 5 00 p. M. In london, and midnight in hong kong. I am vonnie quinn. Shery i am shery ahn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, here are the top stories on the bloomberg and from around the world. Of corporateve earnings sending u. S. Equities lower today even as Economic Data beats. Just good luck is saying the moment of truth has arrived. Changing of the guard at carlyle group. Arebillionaire founders handing over the reins january 1. Speaking of succession plans, chinese president xi jinping concluded the 19th Party Congress with no clear appointment of an era parent. His departure heir apparent. All of that to come in the next 60 minutes. First, julie hyman is with us. Jue