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Obesity drugs take brakes off Big Pharma’s growth
  + stars: | 2023-08-08 | by ( Robert Cyran | ) www.reuters.com   time to read: +4 min
That’s what Eli Lilly (LLY.N) did in the second quarter, thanks to demand for its diabetes and weight loss drug Mounjaro. While doctors are currently free to prescribe Mounjaro for obesity, insurers and governments typically won’t pay for what some still insist is a vanity treatment. Even so a regulatory green light, and clear evidence that these drugs have tangible health benefits, will help loosen purse strings. The brakes are off these firms’ growth, and investors are counting on them remaining so. Mounjaro, the company’s diabetes drug, brought in revenue of $980 million, compared to $16 million a year ago.
Persons: Eli Lilly, LLY.N, Lilly, That’s, David Ricks, Mounjaro, Peter Thal Larsen, Sharon Lam Organizations: Reuters, Novo Nordisk, U.S . Food, Drug Administration, Merck, Investors, Thomson Locations: Danish, U.S, Novo
More than 325 million bottles of champagne were shipped from Champagne in 2022, according to Comité Champagne. More than 325 million bottles of champagne were shipped from Champagne in 2022, surpassing 6 billion euros ($6.6 billion) in sales for the first time, according to champagne trade association Comité Champagne. International brands are aware of the huge impact climate change can have on their businesses. A bar tender pours a bottle of Taittinger Champagne. Matt Hodson Founder of English wine retailer Grape Britannia
Persons: Comité Champagne, Dave Kotinsky, Sandrine Sommer, Moët Hennessy, Matt Hodgson, Francois Nascimbeni, Hodgson, Sommer, Champagne, Claire Sarazin, Tom Hewson Champagne, Sarazin, Tom Hewson, Susy Atkins, who've, Atkins, Taittinger, Pommery, Carlo Paloni, Matt Hodson Organizations: Getty, CNBC, Afp, Bafta Locations: Champagne, United States, Britain, Japan, Ville, Reims, France, Montgueux
Aug 2 (Reuters) - From consumer goods giant Unilever (ULVR.L) to automaker Nissan (7201.T) and machinery maker Caterpillar (CAT.N), global firms have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. A continued rebound has been limited to a handful of sectors such as dining and luxury goods, driving double-digit China sales growth for the likes of Starbucks (SBUX.O) and LVMH (LVMH.PA). Volkswagen (VOWG_p.DE) cut its full-year sales target last week due to a sales dip in China, its top market. "Unfortunately, our (China) sales outlook is now falling far below our production capacity," Nissan CEO Makoto Uchida said last week. "We mentioned during our last earnings call that we expected sales in China to be below the typical 5% to 10% of our enterprise sales.
Persons: Graeme Pitkethly, we're, Makoto Uchida, Jim Umpleby, Jacob Stausholm, Louis Vuitton, Tiffany, Jean, Jacques Guiony, Mimosa Spencer, Sophie Yu, Brenda Goh, Richa Naidu, Melanie Burton, Daniel Leussink, Victoria Waldersee, Miranda Murray, Rishav Chatterjee, Deborah Sophia, Ananya Mariam Rajesh, Yuvraj Malik, Miyoung Kim, Christopher Cushing Organizations: Unilever, Nissan, Caterpillar, Starbucks, Procter, Gamble, L'Oreal, Global, Volkswagen, Samsung, SK Hynix, Apple, Rio Tinto, Tinto, Yum, HK, KFC, Kailyn, Thomson Locations: China, KS, Rio, Yum China, Kailyn Rhone, New York, Paris, Beijing, Shanghai, London, Melbourne, Tokyo, Victoria, Berlin, Bengaluru
FRANKFURT, July 29 (Reuters) - Novo Nordisk has launched blockbuster weight-loss drug Wegovy in Germany, its first big European market, hoping Germans will pay hundreds of euros out of pocket for a drug that public health insurance plans are so far barred from covering. The Danish drugmaker's share price has more than doubled in the two years since the drug debuted, turning Novo (NOVOb.CO) into Europe's second-most-valuable listed company after LVMH. Among major providers, Allianz (ALVG.DE) says it will pay if a physician diagnoses a medical need, while Debeka said its plans exclude weight-loss treatments. Novo is ramping up production to meet soaring demand in the United States, where the drug sells for as much as $1,350 a month. Doctors say many Germans seeking to lose weight have already used Ozempic, a diabetes drug also made by Novo that is a lower dose version of the same ingredient as Wegovy.
Persons: Wegovy, Debeka, Robert Koch, Ludwig Burger, Maggie Fick Organizations: Novo Nordisk, Novo, LVMH, Allianz, European Union, Robert Koch Institute, Thomson Locations: FRANKFURT, Germany, United States, Europe, Norway, Denmark, Danish, Novo, Wegovy, Frankfurt, London
Hermes defies luxury slowdown with strong sales
  + stars: | 2023-07-28 | by ( Mimosa Spencer | ) www.reuters.com   time to read: +2 min
Hermes' results come as luxury stocks have come under pressure due to uncertainty over the pace of China's post-pandemic recovery, while a months-long spending frenzy in the U.S. market cools amid rising inflation. "We've seen no interruption in (growth) trends," Hermes Executive Chairman Axel Dumas told journalists. "Strong print across the board," said Exane BNP Paribas, citing fast sales growth and consensus-beating margins. Analysts said the results showed the strength of Hermes' business model, which entails careful management of production and stocks. Hermes shares traded up 3.3% in early morning trading, while rival Kering was up 1% and LVMH was down 0.5%.
Persons: Veronique Nichanian, Gonzalo Fuentes, Birkin, Hermes, Richemont, We've, Axel Dumas, Dumas, Bernstein, Kering, LVMH, Mimosa Spencer, Silvia Aloisi, Sharon Singleton Organizations: REUTERS, BNP, Thomson Locations: Paris, France, U.S, China
Bank of Japan has its cake and eats it
  + stars: | 2023-07-28 | by ( ) www.reuters.com   time to read: +2 min
Governor Kazuo Ueda on Friday shocked global markets by pledging more flexibility in the Bank of Japan’s (8301.T) yield curve control scheme, its mechanism for controlling long-term interest rates. The central bank said its previous rigid target of keeping yields on 10-year sovereign bonds in a range of 0.5% to minus 0.5% was now just a “reference”. And it promised to buy 10-year bonds at 1%, which Ueda defined as a “just-in-case” cap. Traders immediately breached the officially unchanged range; the yield on 10-year government bonds hit a 9-year high of 0.575%. Instead, the bank may have found a way to make it more sustainable.
Persons: Kazuo Ueda, Ueda, Francesco Guerrera, Oliver Taslic Organizations: Reuters, Bank of Japan’s, Traders, Global, Twitter, Consumers, Thomson Locations: MUMBAI, Japan, Una
Soaring StanChart still has lots of work to do
  + stars: | 2023-07-28 | by ( ) www.reuters.com   time to read: +2 min
SINGAPORE, July 28 (Reuters Breakingviews) - Bill Winters’ bank is finally getting its act together – to an extent. London-listed Standard Chartered (STAN.L) on Friday reported its highest first-half revenue and earnings since Winters joined as CEO in 2015. The upgraded 12%-14% top-line growth for this year, from 10% previously, caught investors' eyes, as did a chunky $1 billion share buyback programme. Winters managed to get costs down to 61% of revenue in the first half, close to his 2024 target of around 60%. Even after Friday’s bump, StanChart trades at just two-thirds of 12-month forward tangible book value, using analyst estimates gathered by Refinitiv Datastream.
Persons: Bill Winters, Winters, It’s, Refinitiv Datastream, Liam Proud, Streisand Neto Organizations: Reuters, , HSBC, DBS, Twitter, Bank of Japan, Thomson Locations: SINGAPORE, London
Kering dons Valentino scent to ease Gucci malaise
  + stars: | 2023-07-28 | by ( Lisa Jucca | ) www.reuters.com   time to read: +3 min
Adding the maker of pricey Rockstud bags could help it reduce its dependency on tottering star brand Gucci. Kering’s stake purchase values the whole brand at 5.7 billion euros, or 16 times its EBITDA of 350 million euros last year. Kering will pay 1.7 billion euros for the stake in cash. Valentino had revenue of 1.4 billion euros and a recurring EBITDA of 350 million euros in 2022. Kering’s star brand Gucci rose just 1% on an organic basis.
Persons: Henri Pinault, Valentino, Gucci, Valentino Garavani, LVMH, Sabato De Sarno, Alessandro Michele, Marco Bizzarri, Kering, George Hay, Streisand Neto, Oliver Taslic Organizations: MILAN, Reuters, Thomson
Consumers will win in cannabis-credit card clash
  + stars: | 2023-07-27 | by ( ) www.reuters.com   time to read: +2 min
The $376 billion payments network wants its financial partners in transactions for cannabis to crack down on using its debit cards, Bloomberg reported on July 26. The budding industry is running out of convenient options for customers to pay for its products. By definition, payments networks such as Mastercard and Visa (V.N) are middlemen, facilitating the movement of money between parties. In the weed business, that means they take the money from the buyer’s bank account and ship it into the dispensary’s. In Washington, D.C., some cannabis shops peddle quasi-worthless knickknacks such as stickers to customers while “gifting” small amounts of pot.
Persons: workarounds, Mastercard’s, Anita Ramaswamy, Lauren Silva Laughlin, Sharon Lam Organizations: YORK, Reuters, Mastercard, Bloomberg, Visa, D.C, Twitter, Thomson Locations: Washington
US consumers earning less than $100,000 fueled record profits last year for French luxury group LVMH. These "aspirational" customers are now pulling back on spending as pandemic cash reserves run dry. Important as these shoppers are, don't expect to see huge markdowns from Louis Vuitton and Dior. "The cost of all these initiatives was obviously quite high," Guiony said. Not every luxury brand can pull this strategy off, but it appears LVMH certainly can.
Persons: Louis Vuitton, that's, Christian Dior, Tiffany, LVMH, Jean, Jacques Guiony, Neil Saunders, Saunders, Michael Kors, Guiony, Hitha Herzog, Herzog, Pharrell Williams Organizations: Dior, Service, Louis Locations: Wall, Silicon, Asia, Pont, Paris
Neste's output snafu dents net-zero aviation goals
  + stars: | 2023-07-27 | by ( ) www.reuters.com   time to read: +2 min
Neste’s production woes are a big headache for Chief Executive Matti Lehmus but also for the aviation sector. That includes up to 1 million tons of sustainable aviation fuel (SAF), which is key to make planes greener as it cuts carbon emissions by up to 80%. Neste is now predicting that it will produce 230,000 tons less of renewable diesel and sustainable aviation fuel in the second half of 2023. Neste's production problems will further complicate the aviation race to net zero. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Matti Lehmus, Pamela Barbaglia, Lisa Jucca, Streisand Neto Organizations: Reuters, Twitter, Thales, Thomson Locations: Singapore, Neste
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Muted markets U.S. markets reacted little to the Fed's rate hike. A much-anticipated Fed hike The Federal Reserve hiked by 25 basis points , taking rates to a target range of 5.25% to 5.5%, the highest since 2001. However, Chair Jerome Powell left the door open to a subsequent rate hike, saying the central bank will make decisions "meeting by meeting."
Persons: America —, Jerome Powell, , Powell, Frances Donald, Dow, CNBC's Fred Imbert, that'd Organizations: CNBC, Reserve, CNBC Pro, Wall, Revenue, Reality Labs, Dow Jones, CAC, Federal, Manulife Investment Management, Nasdaq, Dow Locations: America
CNN —Smooth, sleek and chic is the look for the next Olympic torch. “For Paris 2024, and for the first time in its history, (the torch) plays on perfect symmetry, speaking to us more clearly about equality,” he said in a statement. As simple as a hyphen and as fluid as a flame.”Chair of the Paris 2024 organizing committee Tony Estanguet (left) and designer Mathieu Lehanneur (right) pose with the latter's Olympic and Paralympic Torch. This is part of the organizing committee’s strategy to “build bridges between the Olympic and Paralympic Games,” Paris 2024’s president Tony Estanguet said in a statement. Mathieu Lehanneur holds aloft his design for the 2024 Paris Olympic and Paralympic Torch.
Persons: Mathieu Lehanneur, , , Tony Estanguet, , Lehanneur, Louis Vuitton, Dior, Moët Hennessy Organizations: CNN, Games, Olympic, Paralympic Games, , Sydney Opera House, Museum of Modern Art, Pompidou Centre Paris, LVMH, Louis Locations: Paris, French, Russia, New York, Olympia, Greece, France
LVMH shares fall as second-quarter sales fail to impress
  + stars: | 2023-07-26 | by ( ) www.reuters.com   time to read: +1 min
PARIS, July 26 (Reuters) - Shares in LVMH (LVMH.PA) fell sharply on Wednesday as analysts said that an in-line increase in sales at the world's top luxury indicated the overall sector was moving towards a less impressive path of growth. LVMH shares were down 3.7% in early session trading, also dragging down the shares of its rival Kering (PRTP.PA). The 17% increase at constant exchange rates was a touch better than analyst expectations for 16% growth. LVMH's leather goods division, home to Vuitton and Dior, grew revenues by 21%, also just above the expected 20% increase. LVMH also reported a 1% fall in U.S. sales as appetite for high-end fashion and leather goods slowed there, particularly among less wealthy shoppers, and lower-than-expected margins due to high marketing spending.
Persons: JP Morgan, LVMH, Louis Vuitton, Hennessy, Tiffany, Luca Solca, Bernstein, Sudip Kar, Silvia Aloisi Organizations: JP, Dior, Vuitton, Thomson Locations: U.S
Rolls-Royce boss reaps benefits of setting bar low
  + stars: | 2023-07-26 | by ( ) www.reuters.com   time to read: +2 min
LONDON, July 26 (Reuters Breakingviews) - Six months after calling Rolls-Royce (RR.L) a “burning platform”, Chief Executive Tufan Erginbilgic is giving Britain’s flagship engineering group a high five. Shares spiked 20% as investors celebrated the possibility of free cash flow hitting 1 billion pounds in 2023, 37% above consensus. The company had nearly 3.3 billion pounds of net debt last year, and Barclays analysts are pencilling in an increase this year. Erginbilgic can safely argue that Rolls-Royce is no longer a burning platform, but until he closes that gap he can expect heat from investors. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Tufan Erginbilgic, Erginbilgic, France’s Safran, Pamela Barbaglia, Aimee Donnellan, Oliver Taslic Organizations: Reuters, Royce, Barclays, Electric, Twitter, Thales, Thomson
LONDON — European stock markets were slightly lower early Wednesday amid a slew of earnings and ahead of the latest monetary policy update from the U.S. Federal Reserve. The benchmark Stoxx 600 index was 0.1% lower, with sectors spread across losses and gains. France's CAC 40 fell 0.77% as luxury goods behemoth LVMH fell 3.6% after reporting a surprise slowdown in U.S. sales after the market close on Tuesday. Banks nudged 0.1% higher as Deutsche Bank and UniCredit both beat expectations, while British aerospace and defense firm Rolls-Royce soared 20% higher after it hiked its profit forecast for the year.
Persons: LVMH, Banks, Royce Organizations: U.S . Federal Reserve, CAC, Deutsche Bank
LVMH’s smooth ride faces twin speed bumps
  + stars: | 2023-07-26 | by ( ) www.reuters.com   time to read: +2 min
Shares in the 413 billion euro luxury behemoth fell 4% on Wednesday after it failed to wow investors with its earnings, depressing Europe’s stock market. Yet investors balked at the 1% second quarter sales contraction in the United States - which represents about a quarter of total revenue - as inflation worries cooled shoppers’ appetite for expensive items. LVMH’s conglomerate model, which spans over 70 brands, has so far proven resilient to crises. The all-important Mainland China market, which made up a fifth of global personal luxury sales in 2021, is a potential worry. Slow demand both in the U.S. and China would test LVMH’s diversified model.
Persons: Dior, Tiffany, Givenchy, Bernard Arnault’s, Lisa Jucca, Aimee Donnellan, Pranav Kiran Organizations: MILAN, Reuters, Twitter, Thales, Thomson Locations: United States, China, U.S
Americans Are Buying Less Bling
  + stars: | 2023-07-25 | by ( Nick Kostov | ) www.wsj.com   time to read: 1 min
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Persons: Dow Jones
PARIS, July 25 (Reuters) - Sales at the world's top luxury group LVMH (LVMH.PA) rose by 17% in the second quarter, with a sharp rebound in China helping to offset a decline in the United States, where inflation and economic turbulence have dented demand for high-end goods. The 17% increase at constant exchange rates was a touch better than analyst expectations for 16% growth, according to a Visible Alpha consensus. Finance chief Jean-Jacques Guiony told reporters he was "very satisfied" with the rebound in China, which makes up the bulk of Asian sales. The region - excluding Japan - posted 34% growth compared to last year, when strict COVID-19 restrictions hit sales and emptied stores in China. In the United States, we see it's not as good as it was," he added.
Persons: Louis Vuitton, Hennessy, Tiffany, Jean, Jacques Guiony, Cartier, Richemont, Guiony, Mimosa Spencer, Silvia Aloisi Organizations: Dior, Finance, Vuitton, Thomson Locations: China, United States, Japan
A look at the day ahead in European and global markets from Tom WestbrookEarnings and hope for a turning in China's markets are the prelude to this week's big central bank decisions. The corporate performance and outlook risk disappointing markets that are increasingly priced for a "soft-landing" slowdown in both growth and inflation. In the Asia session investors cheered pledges of support in the readout from an earlier-than-expected Politburo meeting in China -- though not too loudly. The Eurozone bank lending survey is also out on Tuesday and can give a view on the health of borrowing ahead of Fed and European Central Bank meetings, which are both expected to deliver rate hikes. The yen was steady in Asia as investors weigh whether the Bank of Japan will tweak policy on Friday.
Persons: Tom Westbrook, Robert Half, Archer, Daniel Midlands, Morgan Stanley, Dalian Wanda, Sam Holmes Organizations: Microsoft, Google, Visa, General Electric, Dow, chipmaker Texas, Unilever, Shanghai, Traders, Dalian, Fed, European Central Bank, Bank of Japan, EssilorLuxottica, Texas Instruments, Verizon, General Motors, ADM, Spotify, Thomson Locations: United States, London, Paris, Asia, China, Hong Kong
LONDON — European markets were muted as investors assessed economic data and corporate earnings, while gearing up for a big week of central bank meetings . The pan-European Stoxx 600 index hovered just below the flatline in early trade, with mining stocks jumping 2.7% while health care stocks fell 1%. Global investors are navigating a busy week of corporate earnings and central bank meetings. The European Central Bank meets on Thursday, when policymakers are expected to announce a 25 basis point rate hike and offer guidance for the final stages of their efforts to fight inflation. It's another bumper day for earnings stateside, with Microsoft , Google parent Alphabet , Spotify and General Motors all due to report.
Persons: Hong Organizations: Global, European Central Bank, Unilever, Deutsche, Dow Jones, Microsoft, Google, General Motors, U.S . Federal Locations: France, Germany, Europe, Italgas ., Asia, Pacific
Bank of America has named multiple European "top stocks" it says are of "good value, low risk" and "high quality." All of them turned up on "recession screens" for July, in a market BofA described as a being in a recession style cycle. The euro zone entered recession in the first quarter of the year, according to economic data released last month. Energy companies the bank named include Shell , German company EON and Italian firm Enel . During recession cycles, investors have benefited from being overweight on value stocks rather than growth stocks, as well as on stocks with strong balance sheets and lower risk, BofA added, citing research based on a testing period between 1992 and 2003.
Persons: EON, Reckitt, BofA, — CNBC's Michael Bloom Organizations: of America, Roche, Novartis, Sanofi, GSK, Volvo, Benz, Ferrari . Energy, Shell, Unilever, Lysol, Hikma Pharmaceuticals, Auto Locations: Howden
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow the slowdown in US luxury spending is affecting LVMH's earningsCNBC's Robert Frank joins 'The Exchange' to discuss LVMH's earnings under pressure due to a slowdown in luxury spending, American''s shopping overseas for luxury goods, and the strength of wealthy consumers in China.
Persons: Robert Frank Locations: China
During the LVMH earnings call Tuesday, CFO Jean-Jacques Guiony said sales dropped in the U.S. as aspirational consumers no longer spent on entry-level products. LVMH's U.S. sales slid 1% in the second quarter from the prior-year period. LVMH's sales in Europe increased 18% in the second quarter, and Guiony said tourists accounted for nearly half of that growth. Overall, LVMH reported sales rose 17% in the quarter, helped by a 34% increase in Asia excluding Japan. Guiony said that despite signs the broader Chinese economy is slowing, luxury spending there is "strong" after lockdowns were lifted late last year.
Persons: Jean, Jacques Guiony, Richemont, Guiony, LVMH, Tiffany Organizations: Cartier, U.S ., U.S Locations: U.S, Europe, Paris, Rome, London, U.S . China, Asia, Japan, China
Interviews with seven doctors and two other potential users of Wegovy from Germany, where Novo Nordisk's (NOVOb.CO) weight-loss drug will become available at the end of July, show the office administrator isn't alone. Allianz (ALVG.DE) says it will pay if a physician diagnoses a medical need while Debeka said its plans exclude weight-loss treatments. In Germany, Wegovy will be administered with the same injection pen used in Norway and Denmark, not the one used in the United States to avoid hitting supplies there. "Patients are so desperate in Germany that they will pay out of their pocket for the medication." "My experience is that people will be able to pay for it out of (their own) pocket," said Horbach.
Persons: Doctor Thomas Horbach, Wegovy, Novo, Jessica Lenth, isn't, I've, Lenth, Debeka, Robert Koch, Danish drugmaker, Sylvia Weiner, Karl Rheinwalt, Thomas Horbach, Weiner, Rheinwalt, Juergen Ordemann, Michael Wirtz, Wirtz, Irina Ernstberger, Ernstberger, Ludwig Burger, Maggie Fick, Patricia Weiss, Josephine Mason, Catherine Evans Organizations: Novo Nordisk, FRANKFURT, Reuters, Allianz, European Union, Robert Koch Institute, Sana Klinikum, St, Hospital, Ozempic, Novo, Thomson Locations: Germany, Munich, LONDON, Hamburg, Wegovy, United States, Danish, Norway, Denmark, Sana, Frankfurt, St Franziskus, Hospital Cologne, Berlin's, Winsen, Lower Saxony, London
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