, and i am Francine Lacqua, here in london. Merger, with moncler s. P. A. Buying stoneham. If you look at stocks, near record highs, a hope for a u. S. Stimulus deal, tampered concerns about coronavirus, and of course on the brexit front, the pound is rallying as u. K. Prime minister Boris Johnson is heading to brussels for a teteatete with the british european negotiator. Luxury on is a new the block, moncler has agreed to buy highend luxury brand stoneham in its first major acquisition. Turning down a takeover approach last year. Joining us, i am delighted, it remo ruffini, chief executive director of moncler. Thanks for joining us. Is this a new luxury conglomerate that you will create . I am, actually, you know, concentrated on the deal, because i am quite concentrated on the deal, having said that, never say never, because last friday, when we decided to close, and i prepared the press title was beyond station and beyond luxury. We need to find something to be as much unique as we can, and i demand is to be something for young generation, as the guys who are 25 years old today, and the next five years could be 50 of the luxury market. Think it is very important i always care about all of my customers, from the people that love to snowboard, people who love the jacket to go into the office, but i think now is very important that we concentrate on the younger generations, because many are the future, will be the market. Francine does it mean that actually the luxury sportswear will become a little more relaxed, like stone island . Re you planning to transform stone island into a more luxury brand . How do you see the to marry each other . Stone island is charming for young kids today. We are fighting a unique position in the luxury market, i always Say Something between hermes, and the position does not only belong to us. Line,guys for the mens it was kind of a dj or the communication today with your home, i think very keen to talk with the young generation, just did a collaboration with nike, and you have to think about, you know, always on top of the super luxury. Also, the brands need to talk with young kids, collaboration, what that means. I think we can take, you know, stone island into a luxury, unique positioning, and this will be my job for the next, lets say, 12 months. I think the possibilities are very clear. I think it is quite unique in terms of positioning and a term of products, and term of strategy. Ireally am quite, you know, dont say sure, because i am not sure, but i want to take them into this position on more luxury, on this. Francine what you hope to learn from each other, between stone island and of moncler . The entry point is very different. You are going for a younger customer. Will you try and blend, or will you try to keep them completely separate with some of the collaborations that you were just talking about for stone island . Remo well, i think we want to keep separate. We want to really build two strategies, two companies. We are totally different dna. I want to keep the strong dna. I always say we do not have to betray our roots. Having said that, we can help them a lot, because in terms of distribution, for example, they are quite strong in europe, but they are quite young in asia. We have quite a good knowledge in asia. We have quite a good knowledge in japan, and china, and korea. I think we can help a lot them develop their size in all these markets. Say, they are quite young, two or three stores, four stores. I think in terms of, you know, today, you have to build your strategy based on experience, then on the physical, and really try with the assets to build up a stronger channel, and i think they are quite young on this kind of strategy. I think we can help them develop these ideas. Francine remo ruffini, how do you think luxury is changing . Do you think it is toward more casual wear anyway . Is it because of the pandemic, or has it just been accelerated by the pandemic . Remo i think accelerated, as you know, the last time we talked come almost 2, 3 years ago, i change everything. I change the strategy of my company, because i felt the world of luxury was changing. Monthlyler is based on business, monthly delivery, monthly projects, monthly editorials. We have an editorial every day, we have ideas every day, to talk to our customer, and this will accelerate everything in terms before, we really have to understand all the platform, that europe is not very difficult, where in america, it is within the chinese market. A mini program, then we have to talk with weibo or the Luxury Program like alibaba. The way we communicate is actually very exciting, because you have to be very fast. You must be able to talk with different platforms, different ideas, as a way to work. Detail is very important. In europe, again, a multibland for me, it is very important to build up your own brand. There is a lot of energy in the multibrand. You have a lot of opportunity, a and it istform, totally changed. How big do you think your group will become . There were many rumors money months ago about a french group trying to buy moncler . What is your ambition longerterm . Know we talked a bit of the beginning of the program, but how bit we be three years from now, five years, and how focus will you be on asia and ecommerce . Ago i said it, and i will say again today, the most important thing is to create value for my company, create value for moncler, and i is thisree years acceleration of the pandemic, i think, is honestly already today. I think tomorrow, we need to be as global as we can, able to work with that. I think that is the key for the Digital Business for sure. It is also key for the physical business. That is one of the most important things here. You have to be really strong on digital, because i think you have the quantity of customer to digital, then you have to own the channel, as i said before, you have to take them to digit tailors, to physical, to our stores. It is a complicated war today. I think it is very strong and very exciting. In three years, i hope moncler will be in the game of the luxury ward, with a new approach come up a new approach with the young generation, but the new approach will only be for the market. Francine what is the toughest thing to do right now, remo, given we are coming out of the crisis . Is europe your hardest region . Remo for sure. You know, the pandemic was quite tough for our industry. Covidly, march and april, very fast, and china is booming now, since april, may, china is very strong, korea never locked down, so korea is quite a good market as well. Actually, japan is up and down. It depends on what the Prime Minister say. One day he says it is ok, the number of cases is very small, but the japanese is very keen to respect what the government says. The biggest problem for sure is europe. Europe, as you know, 50 , 50 is tourists, means we lost 50 . Very long locked down in march and april, almost in november again. It is quite tough. We hope december will be strong, because for us, this is our season, basically. America was quite surprising, you know, before the election, the market was quite strong, the reaction was very good. Then with the election, it becomes, you know, soso, and now, i think it is ok, better than one month ago. Us is really for our season, we have a december, january, february normally is very strong. I hope it will be strong also this year. Francine remo, thank you for your insight. Remo ruffini, chief executive officer of moncler on the future of luxury, a great deal buying stone island this week. Breaking news out of brexit, dont forget about brexit, it is not because we talk about m a and retail, consolidation, luxury, that we do not have an eye on brexiteers we know Boris Johnson will travel to london with thea teteatete leader of the european commission, ursula von der leyen, and that dinner is set to start at 7 00 u. K. Time. We also have to say what the menu is. There are so many jokes on social media, that it has to be fish. It all feels very brexity. Coming up, the brexit showdown is served. We will have more on that dinner between Boris Johnson and von der leyen. Er l this is bloomberg. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. I am Francine Lacqua here in london. We have news that ursula von der leyen and mr. Boris johnson will have a teteatete dinner. I am not sure whether they will be flanked by aid spirit we do not know the menu. But the timing is 7 00 u. K. Time, 8 00 p. M. Brussels time. Joining us now is our maria tadeo. Potentially a tense dinner conversation coming up. Maria yes, francine, and the timing now confirmed for 8 00 p. M. The dinner is happening at the valley monde building behind me come on the 13th floor, ursula von der leyens personal office. Today, european officials briefing that they do not really see a hard deadline, and it is not really make or break them up but it is an important dinner, that bond orcial land leaves that dinner to brief leaders when it comes that leyenr lien von der leaves that dinner to brief leaders. It is more about injecting momentum and making sure that talks get tal started. It will very much depend on that briefing after the dinner. Francine there is nothing like food diplomacy. I do not know whether we have a dinner or we know, maria, what is on the menu, but usually sends very clear messages about what they want to negotiate. Maria yes, francine, and we do not know if they want to get up on the menu, but as soon as i find out, i will make sure to report back. What we do know, however, is this will be a precourse meal. Francine alright. We will keep an eye on that. There are so money jokes about what they will have for dinner, so i cannot tell what is ruth or lies, whetheror it is fish and by which vessel. A serious note is Melanie Baker. Thank you so much for coming on today. When you look at the brexit negotiations, i do not think we are expecting a deal, at least by dinner tonight, but it is about injecting momentum, at least going back to the negotiating table. What are your hopes for a deal at this moment . Melanie i am feeling less confident than i was even just a few weeks ago. These talks really need a bit of momentum, and hopefully that is what they will get at the end of today, but we are really getting very late in the day. I would have expected more at a higher level than what we are getting. In terms of the u. K. Economy, whether it is a deal or no deal, i think we will have substantial disruption at the border over the new year, which will lay down the economy early next year. You have got that against a backdrop of continued covid challenges. It will be the start of the new year no matter what comes. Francine melanie, are Companies Ready for a substantial disruption, but people know what they do come january 1, or are we just unprepared for a transition . Didnie the bank of england an interesting survey and the International Monetary policy report, and they say they are as ready as they can be. [laughs] but what does that really mean . For a lot of companies, it is still not at all clear what the trading conditions are actually going to be at the start of the new year. And there are lots of questions to demand around the readiness of some of the systems needed, around crossborder trade, you know, there is a limit to how far you can prepare. Francine what does it mean for brexit sorry, what does it mean for pound . How much weaker can it get, melanie . Melanie that is a really good question. You can see the movement and sterling over recent days actually, recent years. To changingensitive over mutin mood music, brexit deals. Decline, possibly 10 , but that his finger in the air staff, really. We know it is sensitive, and it will react in either direction. It is not exactly clear when we will find out. Anythingevident that is not really a deadline at all, the one that matters, i think, is the 31st of december. Francine thank you so much, melanie bacon from royal Melanie Baker from Royal London Asset management stays with us. The u. S. Treasury secretary proposes a 900 million 900 billion stimulus plan. The democrats call part of it unacceptable. We discuss that next. This is bloomberg. This is bloomberg. Francine this is bloomberg surveillance. I am Francine Lacqua here in london. Treasury secretary Steven Mnuchin has proposed a 900 billion covid relief proposal to House Speaker nancy pelosi. Democrats call it progress but say it should not be used to undermine negotiation. Still with us, Melanie Baker of Royal London Asset management. As we take stock of 2021, how much will the stimulus be a game changer for the u. S. Economy . Melanie i think it is really important. I mean, we know things arent we have got a vaccine, but things are not going to get back to normal in the near term. We will be talking the second half of next year before we get widespread availability, and then you can have a return to a semblance of normality. In between then, economies need support, many markets need support, businesses need support, so it is still very important that we get a fiscal package in the u. S. Francine is there a size that matters more than where the money goes, or, you know, even if we get a smaller stimulus, markets will be ok, as long as it is spent wisely . Melanie i think markets will be ok with a sort of stimulus of the size being the way it is at the moment, and the economy can take along with a stimulus of that size, absolutely. Proposals, two around the 900 billion mark. It is still not clear to me that all three sides, effectively, can come together and get an agreement the side of right and bidensside of inauguration. Francine do you worry that scoring will be deeper than expected, or do you worry that we see inflation above 2 . I worry aboutnow, both eventualities, really. I have become a little less moreed as i have looked closely at the consumer story, i think, so generally governments have done, i should say globally, a really good job of protecting household finances, so that, you know, as households become more confident, many of them have got spending power that they can then release. Savings rates jumped in the first part of the crisis. You look at the levels of deposits held at banks, they remain higher than you would expect, so there is spending power there, once households feel more confident. But you do worry about labor markets going still, i worry about corporate debt overhangs, some of those. Francine melanie, thanks so much, Melanie Baker, senior economist at Royal London Asset management. Coming up, the etf europe show. This is bloomberg. This is bloomberg. The usual gifts are just not going to cut it. We have to find something else. Good luck what does that mean . We are doomed. [laughter] thats it. I figured it out were going to give togetherness. That sounds dumb. Were going to take all those Family Moments and package them. Hmm. [laughing] that works. Francine welcome to bloomberg etf iq europe. Im Francine Lacqua in london. Everything you need to know about the funds and the flows. Francine strongest month on record. Equity etfs at 16 billion euros of cash in november, jumping ahead. Gold withdrawals. This shot developed by astrazeneca at oxford university, the questions remain unanswered. Changing course as vanguard its smart vita in europe. We will look at the second largest asset manager. First thing is first. Lets look at which countries and sectors have been attracting the money. Dani burger has all the details. Ago looking at fs l
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