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☆ Big Pharma drags European shares down; inflation data in focus
▼ + stars: | 2023-01-05 | by ( Bansari Mayur Kamdar | ) www.reuters.com time to read: +3 min

The market was hoping the minutes could be a "blueprint to a pivot," said Danni Hewson, an analyst at AJ Bell. Healthcare stocks (.SXDP) dragged, with pharma giants like Novartis AG (NOVN.S) and Sanofi (SASY.PA) shedding more than 1% each. Investors await producer price data, due at 1000 GMT, for clues on the impact of the European Central Bank's aggressive tightening to tamp down inflation. Retail stocks were battered last year, posting their worst annual performance since 2008, as rising interest rates and high inflation put pressure on household budgets. Reporting by Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi and Eileen SorengOur Standards: The Thomson Reuters Trust Principles.

☆ Here are 3 big luxury retail trends for 2023, according to experts
▼ + stars: | 2022-12-31 | by ( Lakshmi Varanasi | ) www.businessinsider.com time to read: +4 min

Luxury resale will boom in 2023 as more brands take control of their second-hand markets. The personal luxury market is expected to grow 3%-8% over the next year, according to Bain & Company. This year, without those stimulus checks, and amid a possibly pending recession, there will be a shift in who is buying luxury items, according to Oliver Chen, a managing director in the retail and luxury section for investment bank Cowen. Insider chatted with four experts, from former merchandisers to retail analysts, to understand how the luxury retail market is bound to change in 2023. Next year, experts expect to see more luxury brands taking control of their own second-hand markets.

☆ These 6 handbags are 'actually worth the investment,' says shopping expert: Chanel, Louis Vuitton, limited drops
▼ + stars: | 2022-12-30 | by ( Charles Gorra | ) www.cnbc.com time to read: +4 min

As the founder of Rebag, a designer handbag resale site, I've kept a close eye on the resale value of sought-after luxury goods. That's well above other major designer names — like Chanel, for example, which boasts an average value retention of 87%. Birkins have an average value retention of 96%, while the Kelly averages 108%. For example, the Nigo Keepall Bandoulière bag has a 119% average value retention, while the Louis Vuitton x NBA Ball in Basket Bag has a 147% average value retention. Up 12 percentage points from 2021, the brand's average value retention is 87%, although several bags exceed 100%.

☆ Here's what mattered in hedge funds and asset and wealth management in 2022
▼ + stars: | 2022-12-28 | by ( Jeffrey Cane | ) www.businessinsider.com time to read: +4 min

To be sure, some big investors like macro hedge funds have been notable exceptions to the market gloom. As we do our own account settling for the year, here is some of our best reporting on the buy-side: hedge funds, asset managers, and wealth management. Tiger, Tiger burning bright. Four years later, the hedge fund, founded by two former Millennium executives, has yet to live up to the lofty expectations for it. Among the money managers benefiting from these political moves are Bank of New York Mellon and Federated Hermes.

☆ European Luxury Shares Rise on Easing of Chinese Border Restrictions
▼ + stars: | 2022-12-27 | by ( Nick Kostov | ) www.wsj.com time to read: 1 min

Chinese consumers are important for luxury-goods companies such as Hermès, LVMH and Gucci. PARIS—Shares in European luxury retailers rose Tuesday on investor hopes of renewed Chinese tourist spending after Beijing said it planned to ease pandemic-related border restrictions. Luxury goods giant LVMH Moët Hennessy Louis Vuitton SE advanced as much as 2.5% in Paris while Kering SA, owner of the Gucci and Saint Laurent brands, rose as much as 2.2% and Birkin-bag maker Hermès International SCA advanced more than 2%. In Milan, shares in Moncler SpA, Tod’s SpA and Salvatore Ferragamo SpA also rose.

News of the loosening lifted stock markets worldwide, with luxury shares in particular benefiting. Shares in LVMH (LVMH.PA), the world's biggest luxury group and Europe's number 1 company by market capitalisation, were up 2.7% while Cartier-owner Richemont (CFR.S) rose almost 4%. Before the current slowdown, it had for years been the fastest growing region, with young, urban, middle class professionals powering the luxury market by splashing out on Hermes' 10,000 euro-plus ($10,633) Birkin handbags and Gucci's 1,000 euro fur-lined loafers. According to a recent report by the McKinsey consultancy, while non-luxury fashion sales are expected to rise between 2% and 7% in 2023, luxury sales should climb 9% to 14% over the same period. ($1 = 0.9405 euros)Reporting by Silvia Aloisi; Editing by Louise Heavens Editing by Robert BirselOur Standards: The Thomson Reuters Trust Principles.

Another was the requirement for companies to assess and disclose their impact and reliance on nature, despite the word "mandatory" being dropped from the final deal. While protecting nature comes at a cost, those companies that step up will attract more investors. "The big losers across the board will be 'business as usual'," said Eurasia Group senior analyst Franck Gbaguidi. A body representing some of the world's largest mining companies, including Glencore (GLEN.L) and Newcrest (NCM.AX), said disclosure would lead to a level playing field between sectors. The bill was ultimately calculated at $20 billion per year by 2025 and $30 billion per year by 2030.

HONG KONG, Dec 19 (Reuters) - Asia's hedge funds are heading for their worst showing in a dozen years, with long-short stockpickers wrongfooted by volatility in China, while macro strategy funds riding big global shifts in interest rates shine. On average, Asian hedge funds fared better than the indexes, losing 9.1% through to end-November, Eurekahedge data showed. By strategy, Asia equity long-short funds lost 12% and Greater China long-short funds lost 14%, while Asia macro funds rose 12% and Asia multi-strategy rose 1%. Big picture macro funds, which trade on economic and political shifts, also performed well, as U.S.-China tension and rising interest rates roiled financial markets. Long positions in U.S. government debt and the Singapore dollar also helped through November when many macro managers were caught out by a sudden drop in the U.S. dollar.

While governments worldwide are grappling with high inflation and low growth, UK policymakers are still rebuilding fiscal and political credibility following the brief, chaotic premiership of Liz Truss. Worries about growth are leading some investors to limit their holdings of the pound and British debt. Reuters GraphicsForeign investors have traditionally been attracted by Britain's strong rule of law, stable governance and thriving financial and professional services sector. In the latest data, up to the second quarter of this year, FDI represented more than half the net outflow - a result of strong UK investment abroad but weak inward investment too. Stephen Welton, executive chairman of major growth capital investor BGF, said attracting foreign investment was like a global competitive sport - one that Britain had previously excelled at.

The fed funds rate currently stands in the 4.25%-4.50% range. Plenty of investors believe the Fed will stick to its guns, even if the economy wobbles. The Fed's economic projections showed rates dropping to 4.1% in 2024, higher than estimated three months ago. She is expecting the gyrations that rocked bonds this year to continue, driven in part by investors second-guessing the Fed's commitment to keeping monetary policy tight. "We have a generation of traders that has never seen the Fed not bail it out when push comes to shove."

☆ Investor group launches campaign to help companies protect nature
▼ + stars: | 2022-12-11 | by ( Expert Analysis | Reuters Professional | Calls Grow For Companies To Disclose Impacts On Nature In Bid To Plug Finance Gap | ) www.reuters.com time to read: +2 min

REUTERS/Luis EcheverriaMONTREAL, Dec 11 (Reuters) - Here's the plan: Select 100 companies whose business burdens nature. Such is the vision of a campaign called "Nature Action 100" launched on Sunday by 11 investment firms hoping to encourage companies to help preserve ecosystems that support more than half the world's economic output. "The aim of Nature Action 100 is to engage those companies that have the highest impact on nature, not only to protect the natural environment but also to mitigate the risks these companies face from mounting pressure to effectively address biodiversity issues," Wearmouth said in a statement. The list of 100 companies will be published next year. Nature Action 100 would seek to select 100 companies for investors to focus on in suggesting how the private sector can navigate any new rules and monitoring their progress, the group said.

☆ The Fed will raise rates again. But it’s playing with fire
▼ + stars: | 2022-12-11 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +5 min

New York CNN —The Federal Reserve is all but guaranteed to announce Wednesday that it will once again raise interest rates. The Fed bumped up rates by three-quarters of a percentage point in the past four meetings (June, July, September and November). The more widely watched Consumer Price Index data for November comes out Tuesday, just a day before the Fed announcement. Jones still thinks the Fed will raise rates by only half a point this week and may look to hike them just a quarter point in early 2023. It seems likely that the Fed will cut its GDP target and raise its expectations for the jobless rate and consumer prices.

☆ Arielle Charnas' company, Something Navy, is floundering amid dwindling sales, an employee exodus, and furious suppliers
▼ + stars: | 2022-12-08 | by ( Katie Warren | ) www.businessinsider.com time to read: +36 min

From the outside, it doesn't look as if Charnas' company is in trouble. Mark Sagliocco/Getty Images for Beach MagazineSeveral former employees told Insider they cut ties with Something Navy because they saw signs the company was struggling. Several current and former Something Navy employees told Insider they'd been inundated with emails since the spring from suppliers, freelancers, and models asking where their money was. In one email viewed by Insider, Scanlan told a supplier that cash was tight but promised payment was on the way. The current Something Navy employee said that based on data she'd seen, the retail locations most likely don't turn a profit.

☆ The best-performing large-cap fund manager of 2022 shares what he got right as high inflation and interest rates tanked the market this year — and where he's investing heading into 2023
▼ + stars: | 2022-12-08 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

Daniel Peris of Federated Hermes is the top-performing large-cap fund manager of 2022. Historian-turned-mutual fund manager Daniel Peris is making some history of his own this year. Nearly as unconventional as Peris' background is his approach to running his dividend fund. Absolute and relative performance matter little compared to dividend growth and yields, Peris told Insider in a recent interview. However, the fund manager said that as inflation starts to settle down, stocks in the aforementioned food, beverage and tobacco, household products, and pharmaceuticals industries are his favorites.

☆ Wealthy Chinese keep on spending while others cut back, survey finds
▼ + stars: | 2022-12-07 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +3 min

Future Publishing | Future Publishing | Getty ImagesBEIJING — Wealthier Chinese were more inclined to spend this year, while poorer people cut back on spending even more, McKinsey and Company found in a survey released Thursday. The divergence contrasts with 2019, before the pandemic, when "there was little differentiation in spending between the two groups," the McKinsey analysts said. Only 14% of that income group said they significantly cut their spending. "So, the more affluent group continues to spend, while lower-income groups are more hesitant and hold spending decisions." The share of urban households wanting to save "for a rainy day" rose to 58% — its highest since 2014, the McKinsey survey found.

☆ Trafigura enters $3 bln loan to supply Germany's Sefe with gas
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Dec 5 (Reuters) - Commodities trading firm Trafigura on Monday said it has entered into a $3 billion four-year loan to supply gas to German gas trader Sefe, formerly known as Gazprom Germania, and help Europe's largest economy secure volumes long-term. The deal comes as Germany is struggling to replace Russian gas volumes, formerly its biggest source but supply of which was fully stopped in August, with alternatives. The loan is jointly arranged and underwritten by Deutsche Bank (DBKGn.DE) and another international bank. The loan is partly secured by a guarantee under the Untied Financial Loan program of the German government acting through the German Export Credit Agency Euler Hermes AG, a division of Allianz (ALVG.DE). Trafigura said it would mainly use existing quantities from its global gas and LNG portfolio to cover supplies to Sefe.

☆ Citi names 6 global stocks that capture both 'defensive growth and value'
▼ + stars: | 2022-12-02 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Growth stocks have been hit hard by a combination of rising rates and forecasts of an impending recession. But rather than pivoting toward an entirely defensive portfolio, Citi says investors might do better with a portfolio of stocks ranked high for value, growth and defensiveness simultaneously. Citi named U.S.-listed IT giant Accenture , trucking company Old Dominion and U.K.'s online car portal Auto Trader as "low risk, quality and growth" stocks. The Citi analysts said they screened the MSCI World index of 1,500 stocks for companies in the top quantiles for growth, low risk and quality simultaneously. "There are also several months where there is no overlap at all for value and in the past year the overlap of growth and defensive stocks has dropped from 25 to around 5," the analysts added.

Blackstone (BX.N) limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits amid investor concerns it was slow to adjust valuations as interest rate surged, a source close to the fund said. The development is yet another reminder of the risks facing not just sectors that are sensitive to higher interest rates but also broader financial markets, which have rallied sharply on hopes that interest rate hikes will slow. "REITS had a fantastic performance for a couple of months but when you have that outperformance, investors don't react to traditional fundamental signals such as rising rates," she said. But in recent weeks expectations have risen that the Fed will "pivot" from aggressive tightening, prompting investors to price in lower peak interest rates. Blackstone has reported a 9.3% year-to-date net return for the REIT, while the publicly traded Dow Jones U.S.

LONDON, Nov 28 (Reuters) - Paris' luxury-laden stock exchange is now worth more than London's. France's CAC All Shares index (.PAX) is now worth almost $3 trillion, making it Europe's largest stock market by value thanks to demand for its luxury-retailer blue chips. Reuters GraphicsFUND FLOWSSo far in 2022, funds investing in UK stocks have seen record outflows of 23 billion euros, according to Refinitiv Lipper, up from almost 18 billion euros last year and the 14.6 billion euros shed in 2016, when Britain voted to leave the European Union. Annual outflows from French equity funds are much smaller - at 2 billion euros this year. FX MATTERSIt's also worth noting that currency comes into play when measuring the size of London's market against Paris' in dollar terms.

☆ Outperforming asset manager picks 3 global retailers to short amid a fall in consumer spending
▼ + stars: | 2022-11-28 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Shares of mass market retailers will fall as profit margins are squeezed, and consumers curtail spending next year, according to Plurimi Wealth's chief investment officer. Selling shares "short" means borrowing shares through a broker to sell them immediately with a plan to repurchase them when the price is lower. In such an environment, mass market retailers that benefit from discretionary spending will see their revenues decline. While investors are split over the health of the American consumer, European shoppers are mostly expected to curtail their spending habits next year. Elsewhere in Europe, economists are also expecting a recession for the first half of next year that will impact discretionary spending.

☆ Outperforming asset manager picks the stocks set to win as margins get squeezed
▼ + stars: | 2022-11-25 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

"Consumers are going to have their purse strings pulled by utility bills, higher mortgage costs, higher petrol prices, and there's going to be margin squeeze." He said wage pressure and higher commodity prices were particularly challenging and could eat into companies' margins. Luxury Luxury stocks are another favorite for Armstrong. Moreover, the "massive" profit margins of luxury companies are also insulated from increases in input prices, he added. Within the space, Armstrong's fund owns French luxury goods companies LVMH and Hermes , given their "defendable margins" and the ability to be price setters.

☆ Analysis: Out of fashion: Gucci faces daunting task to replace top designer
▼ + stars: | 2022-11-25 | by ( Mimosa Spencer | ) www.reuters.com time to read: +5 min

[1/4] Gucci's designer Alessandro Michele arrives at the "Green carpet Fashion Awards" event during the Milan Fashion Week in Milan, Italy, September 24, 2017. Tensions had been high between the designer and company management, sources told Reuters. Kering chairman and CEO François-Henri Pinault lauded the designer's tenure as "an outstanding moment" in Gucci's history. Gucci falls out of fashionFURRY LOAFERSMichele, 49, reinvigorated the brand with his eccentric, gender-fluid styles popular with younger shoppers. China generates around 35% of Gucci's annual sales, according to Barclays estimates, compared to 27% for LVMH's fashion and leather goods division and 26% for Hermes.

☆ Markets are blindly expecting the best – but inflation might not cool to the Fed's 2% target until late 2024, says Federated Hermes' top stock-picker
▼ + stars: | 2022-11-24 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

It's too optimistic to think interest rate rises are done, says Federated Hermes' chief strategist. "The market is whistling past the graveyard and expecting the best thing to happen," Phil Orlando said. It could take until the end of 2024 for inflation to fall to the Fed's 2% target, he added. "Right now the market is whistling past the graveyard and expecting the best things to happen," he told Yahoo Finance on Wednesday. The Consumer Price Index rose by a lower-than-expected 7.7% last month, offering markets the strongest sign yet that inflation is starting to fall.

☆ Macy's raises annual profit forecast on firm luxury demand
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +1 min

Nov 17 (Reuters) - Upscale department store chain Macy's Inc (M.N) raised its annual profit forecast on Thursday on resilient demand for high-end suits, gowns and beauty products as wealthier shoppers were undeterred by inflation. Like other retailers, Macy's has introduced more discounts to clear excess stock of casual and athleisure apparel, while luxury goods sales has held up relatively well. The department store chain said it expects fiscal 2022 adjusted profit of $4.07 to $4.27 per share compared with its previous forecast of $4 to $4.20. Net sales at the department store chain fell to $5.23 billion in the third quarter ended Oct, 29 compared with $5.44 billion a year earlier. Reporting by Deborah Sophia and Uday Sampath in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Inflation will come down hard next year, says Federated Hermes' Linda Duessel
▼ + stars: | 2022-11-14 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInflation will come down hard next year, says Federated Hermes' Linda DuesselLinda Duessel, senior equity strategist at Federated Hermes, and JJ Kinahan, IG North America CEO, join CNBC's 'Squawk Box' to discuss markets and their inflation forecasts ahead of the open.

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