Swatch Wins $449 Million Award From Tiffany

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Dec. 23 (Bloomberg) -- Swatch Group AG won an arbitration award of about 402 million Swiss francs ($449 million) from Tiffany & Co, after the timepiece maker claimed a breach of contract at their joint venture. Strategic Group's Burt Flickinger and Citigroup Global's Steven Englander speak on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

As you and scarlet referenced, it is going to hit tiffany's earnings 35% for the entire year.

When you look at tiffany having to pay 2/3 of legal fees, plus cost of arbitration.

It is closer to $.5 billion in a settlement.

Devastating news.

Everything was working well for tiffany's. sales, stock market, wealth effect, price of commodities, jewels.

It has gone from the best of times to the worst of times just before christmas.

Why would they make a deal with a downmarket product?

The genesis of the thinking, obviously not correct, tiffany's watch sales about a decade ago was close to -- 9% of total sales.

It dropped to 1% as a percent of all to face sales on land and online.

To try to get watches back to at least 5%, they thought there was operating income.

There could have been better partners.

Perfect partner, a great swiss luxury company.

Stephen and letter from citigroup.

The imf upgrading forecast for the u.s.. this is great into 2014. fed tapering, jobs report.

There are a lot of things to watch out for.

Notably, the political concerns and overhang.

They are catching up to the market.

The second half of this year we had q3 revised up, people are pushing up the q4 forecasts.

There is an arithmetic modulus.

Not clear that tapering -- it may indicate stronger growth.

It is not a cause of stronger growth.

No one expected the fiscal issue would be a major deal in 2014. they are catching up to the market.

The imf is catching up to the market.

That has markets higher this morning.

Do people believe the imf's forecasting ability -- people have trouble with the fed.

A few people believe.

The market is reacting to the devastator in.

-- to the dovish tapering.

It is not the end of the world, the fed is keeping interest rates low for a long period.

You roll up the yield curve and clip coupons and collect money.

It looks like we are going to see a strengthening economy replacing the fed and terms of a driver for the markets.

That is one thing the fed recognized, they did not need the emergency room type of stimulus anymore.

People talk about tapering as if it is the end of the world.

When you compare the economic situation now with a year or 1.5 years ago, it is very clear that things are much better.

We can all go out and buy watches at tiffany's. matt miller.

The strengthening economy is great for everybody.

Maybe it is good for movie theaters.

Our twitter question of the day -- what does it take for a movie to get you off of your couch?

We will be talking later with the guy responsible for serious special effects in some of the biggest hit movies, including "avatar.: " we saw "the hobbit," it was fun but i would have rather spent four hours on the couch.

Four hours?

That it takes a while to get out, you have to park the car.

There is a lot involved.

I could have seen "anchorman 2." coming up, the follow-up from targets customer data breach.

Banks are now limiting victims' ability to take out cash.

We will discuss this on "bloomberg surveillance," streaming on your tablet, your

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