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☆ Premarket stocks: The uber-wealthy are doing just fine and Wall Street is cashing in
▼ + stars: | 2023-06-02 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But that’s not the case for everyone: The ultra-wealthy are doing just fine, and Wall Street firms are taking advantage of that. Germany, the largest economy in Europe, has slipped into recession as energy price shocks took their toll on consumer spending. In the past 10 weeks, JPMorgan Global Wealth Management opened 40,000 new accounts. Last year, it added around one new client with assets of $100 million or more per day, Mary Erdoes, head of asset and wealth management at the bank, told investors last week. Dollar General customers turn to food banksDollar General (DG) stock had one of its worst days ever on Thursday.

Persons: New York CNN —, that’s, JPMorgan Chase, Andy Cohen, Mary Erdoes, It’s, Goldman Sachs, Louis Vuitton, Dom Pérignon, Dior, Huw Roberts, Hermes —, Roberts, ”, Erwan, “, Gregory Daco, Allison Morrow, Jeff Owen, Owen, Cash, They’re, Elisabeth Buchwald, Treasury hasn’t, Biden Organizations: CNN Business, Bell, New York CNN, Wall, JPMorgan, Bloomberg, JPMorgan Global Wealth Management, Citigroup, International Monetary Fund, Lamborghini, HSBC, EY, Dollar, Treasury, US Treasury Locations: New York, China, United States, Germany, Europe, BlackRock

HONG KONG, May 16 (Reuters Breakingviews) - Investing in China need not be too stressful, provided you avoid investing in Chinese companies. A spending pop in the transport, food and beverage and hospitality sectors helped lift first-quarter GDP to 4.5%. But that data was flattered by comparison to a grim 2022, and April data on imports, inflation and bank loans all disappointed. While Beijing’s crackdowns on domestic technology companies and property developers have eased, other risks are rising. Separately, quarterly revenue at Alibaba is expected to rise 3% year-on-year to 211 billion yuan ($30.5 billion) in the three months to March, according to the average analyst forecast on Refinitiv.

The pan-European Stoxx 600 closed 0.4% higher, with banks higher by 0.8% and oil and gas stocks gaining 1.5%. European stock markets closed higher Friday despite a downbeat week, as investors assessed the state of play across first-quarter earnings and economic data. France's Societe Generale beat first-quarter earnings estimates, as its shares climbed as much as 2%. Shares of the financial services provider closed 0.5% higher. Asia-Pacific markets closed mixed on Friday, while U.S. stocks were flat by the European close.

But with flights remaining limited after China's border reopening in January, European luxury stores will need to wait longer for the return of masses of tourists they once depended on for growth. The average transaction value by Chinese travellers in Europe in March was 28% above 2019 levels, UBS said, citing data from VAT refund provider Planet. Cartier-owner Richemont (CFR.S), Hermes (HRMS.PA) and LVMH were best placed to benefit from wealthy Chinese shoppers, UBS added. As wealthy Chinese return to Europe and other foreign destinations, the appeal of China's Hainan Island, a duty free shopping hotspot, appears to be waning among top luxury spenders. China's "higher income, top luxury spenders (are) already travelling abroad again," she said, leading to an observable lower per-capita spend in Hainan.

☆ Tiffany unveils revamped New York flagship, showcasing new look
▼ + stars: | 2023-04-26 | by ( Mimosa Spencer | ) www.reuters.com time to read: +3 min

Global Brand Ambassador Gal Gadot along with Anthony Ledru, President and Chief Executive officer of Tiffany & Co attend a ribbon cutting ceremony for reopening of the Tiffany flagship store on 5th Avenue in Manhattan in New York City, New York, U.S., April 26, 2023. REUTERS/Brendan McDermidNEW YORK, April 26 (Reuters) - Tiffany & Co. lifted the lid on its newly renovated New York city flagship on Wednesday, the centerpiece of a broad brand reset orchestrated by its owner, the world's biggest luxury group LVMH. Alexandre Arnault spearheaded the label's initial reset with an advertising campaign starring Beyonce -- wearing the famous yellow Tiffany diamond -- and Jay-Z. Now the priority will be on renovating the label's retail network, essential for Tiffany to bridge the gap with Cartier, the world's largest jewelry label, which belongs to Richemont(CFR.S), Ledru said. Tiffany sales came to 5.1 billion euros ($5.63 billion) in 2022 and are forecast to reach 7.4 billion in 2025, according to HSBC.

☆ Europe is the place to invest so far in 2023. Here's why
▼ + stars: | 2023-04-24 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

U.S. stocks are off to a good start in 2023, with the S & P 500 up 7%, but Europe is just killing it. All the major European ETFs are up 15%-20% for the year and were at new highs last week. From makeup to sneakers to steel to pharmaceuticals and software to cars for the masses, Europe is outperforming. European stocks this year L'Oreal up 38% Adidas up 33% Thyssenkrup up 32% Bayer up 30% SAP up 29% Stellantis up 25% There's are several other reasons Europe is outperforming. That is historically a very low P/E ratio for Europe, in the 4th percentile (low) relative to the STOXX Europe 600 over the last 15 years.

☆ Luxury goods giant LVMH becomes the first European company to surpass $500 billion in market value
▼ + stars: | 2023-04-24 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

A pedestrian carries a Louis Vuitton shopping bag, from a store operated by LVMH Moet Hennessy Louis Vuitton SE, on New Bond Street in London, U.K., on Wednesday, Oct. 21, 2020. Luxury goods giant LVMH on Monday became the first European company to surpass $500 billion in market value. Its shares hit a record high following the results, and hit another high on Monday. It reported revenue of 79.2 billion euros ($87.1 billion) for 2022, with profit from recurring operations of 21.1 billion euros — its second consecutive year of record results. In 2021, LVMH completed the acquisition of U.S. jeweler Tiffany & Co for $15.8 billion.

☆ Luxury stocks are on a tear and now there's an index to follow the 1%
▼ + stars: | 2023-04-20 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

Luxury stocks are on a tear, and they are pulling away from the other 99% of the world. Birinyi Associates sees an opportunity. LVMH is the largest luxury firm in the world. Rubin and Birinyi have created two new indexes to monitor all this money: the "1% Index" that consists of 16 luxury stocks, and the "99% Index" made up of 18 stocks that is, well, where the rest of us shops. Since the beginning of April, the 99% is making a comeback: The 1% vs. the 99% (since April 1) 1% index: + 3% 99% index: + 12% Source: Birinyi Associates What's happening?

☆ This e-commerce stock has a whopping 300% upside, according to Morgan Stanley
▼ + stars: | 2023-03-23 | by ( Zavier Ong | ) www.cnbc.com time to read: +4 min

The e-commerce market grew in 2020 as consumers shied away from brick-and-mortar stores and opted for contactless deliveries during pandemic lockdowns. A period of normalization then followed, according to Morgan Stanley , with the sector notching a streak of four consecutive quarters of declining penetration. Stock picks The recovery in e-commerce growth is an opportunity for incremental sales growth and gains in market share, according to Morgan Stanley. Morgan Stanley said the company is a "share taker" in a key underpenetrated e-commerce category: global luxury. Nike expects the figure to rise to 40% over the longer term, according to Morgan Stanley, which implies e-commerce sales of $30 billion by 2027.

☆ This half-century old fund seeks out global value and has Warren Buffett's style all over it
▼ + stars: | 2023-03-03 | by ( Yun Li | ) www.cnbc.com time to read: +5 min

Warren Buffett has inspired generations of value investors, and one 53-year-old, market-beating mutual fund has his legacy all over it. For almost three decades, starting in 1979, the fund was run by another acolyte of value, Jean-Marie Eveillard. Since 1979, First Eagle Global has returned more than 12% annually, even including the 5% load fee charged on the first $25,000 invested. The fund employs three main elements when it comes to security selection within the universe of global value, Brooker said. When we're not able to find things that make sense to us, that meet our underwriting criteria, we'll wait in cash," Brooker said.

☆ Ray-Ban maker EssilorLuxottica's sales rise on solid European growth
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

Feb 23 (Reuters) - Luxury eyewear maker EssilorLuxottica (ESLX.PA) on Thursday reported a rise in fourth-quarter revenues, citing sound growth amid a challenging environment, but its performance in China declined because of COVID-19 restrictions. The maker of Oakley and Ray-Ban sunglasses posted a 9.4% rise in revenues to 6.11 billion euros ($6.49 billion) in the final quarter of the year at current exchange rates. The French-Italian eyewear group said Europe, Middle East, and Africa (EMEA) was its best performing region in the quarter due to solid sales growth in France, Italy, Spain, the UK and Scandinavia. Sales in the region grew 6.2% at constant exchange rates to 2.09 billion euros. ($1 = 0.9416 euros)Reporting by Jagoda Darlak; editing by Shri Navaratnam and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

☆ Luxury stocks rally from China reopening, but world's largest luxury market may choose to shop 'in-house'
▼ + stars: | 2023-02-01 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +4 min

In the past, trips abroad often included personal luxury purchases for affluent Chinese consumers looking to take advantage of currency and tax benefits. CFOTO | Future Publishing | Getty Images"China's domestic luxury consumption should far exceed that of overseas luxury consumption," said Zhang, who estimates that in the long run, domestic luxury consumption will account for 70% of the Chinese luxury consumers' spending, and a mere 30% from abroad. That would be the inverse of spending patterns before 2017, when over 70% of Chinese luxury spending took place outside of China, according to Zhang. He added it is unlikely the share of overseas luxury shopping for Chinese consumers will recover to pre-pandemic levels of over 70%. The increasing digitalization of shopping processes has also facilitated Chinese shopping online for luxury goods, Bain & Co said in a report.

☆ Europe's luxury stocks have room to rise, but becoming costly
▼ + stars: | 2023-01-31 | by ( Lucy Raitano | ) www.reuters.com time to read: +5 min

REUTERS/Sarah Meyssonnier/FilesLONDON, Jan 31 (Reuters) - Europe's glittering luxury companies, the region's top stock-market performers in 2023, may see yet more gains driven by a rebound in Chinese spending, but for some the sector is starting to look expensive. An index of European luxury goods retailers (.dMIEU0TA00PUS) has rallied around 18% so far this year, outperforming the wider pan-European STOXX 600 (.STOXX), which is up 6.2% in the same time frame. But the fact that luxury goods companies are not as cheap as they once were is a "concern/point of attention", said Kasper Elmgreen, Head of Equities at Amundi, Europe's largest asset manager. Jelena Sokolova, senior equity analyst at Morningstar, said that China reopening is the key issue for European luxury stocks this year, and is already at least 50% priced in. These shares have more room to run higher as Chinese consumers hit the shops again and luxury companies flex their pricing power.

☆ Luxury retailer LVMH is optimistic as it sees Chinese shoppers and tourists returning
▼ + stars: | 2023-01-26 | by ( Robert Frank | ) www.cnbc.com time to read: +3 min

Luxury giant LVMH said China's wealthy consumers have started returning to stores after the country's reopening and it remains optimistic about the year ahead. "We have every reason to be confident, indeed optimistic on China," LVMH CEO Bernard Arnault said during the company's earnings presentation. Bain & Co estimates that global luxury sales grew 22% in 2022, to over $380 billion, with the U.S. replacing China as the top market. Even if China rebounds, growth in luxury sales is likely to be slower this year. Bain estimates global sales could grow between 3% and 8% in 2023, depending on China's reopening and the U.S.

☆ Swatch positive on recovery in luxury demand from China
▼ + stars: | 2023-01-24 | by ( John Revill | ) www.reuters.com time to read: +3 min

SummarySummary Companies Says January sales have exceeded January 2022Company now expects record sales for 2023Stock hits highest level since July 2021ZURICH, Jan 24 (Reuters) - Swatch Group (UHR.S) shares hit their highest level in nearly two-and-a-half years on Tuesday after the world's biggest watchmaker said it expected a recovery in luxury demand from China. The sales growth in January in China reinforces the Group's expectation to aim for a record year in 2023." The outlook sent Swatch's shares to their highest level since July 2021, and was the latest positive signal for the luxury sector at the start of the Chinese Year of the Rabbit. "To reach the record sales number of 2014 Swatch Group would need to have growth of 16% in 2023," said Patrik Schwendimann of Zuercher Kantonalbank. Europe's luxury sector($1 = 0.9192 Swiss francs)Reporting by John Revill; editing by Kirsten Donovan and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

☆ Swatch Group positive about Chinese market recovery in 2023
▼ + stars: | 2023-01-24 | by ( John Revill | ) www.reuters.com time to read: +2 min

The sales growth in January in China reinforces the Group's expectation to aim for a record year in 2023." Rival Swiss luxury group Richemont last week said it was seeing a "strong retail rebound" in China in the run-up to the Chinese New Year. Swatch, which in July said targeted a double digit sales increase for 2022, said its sales in China fell by 700 million Swiss francs ($761 million) during the year. Overall sales increased by 2.5% to 7.499 billion Swiss francs or by 4.6% in constant currency terms, while net profit rose to 823 million francs from 774 million francs a year earlier. Aiming for a record year implies over 23% sales growth, which is a pretty big call by [CEO Nick]Hayek."

☆ PREVIEW Luxury giants bank on Chinese return as Western shoppers sober up
▼ + stars: | 2023-01-24 | by ( Mimosa Spencer | ) www.reuters.com time to read: +4 min

They are expected to see a deceleration in sales growth over the quarter as the post-pandemic splurge on designer fashions begins to ease in the United States and Europe. Hermes (HRMS.PA), which reports fourth-quarter results on Feb. 17, is expected to show sales growth of 17%, a decline from 24% in the third quarter. Luxury spending by Chinese nationals had dipped from 33% of the global personal luxury goods market in 2019 to as little as 17% last year, according to estimates from consultancy Bain. Burberry's like-for-like sales growth slowed sharply to 1% in the quarter to end-December after a 23% fall in mainland China. Although the Chinese are expected to initially resume travelling within Asia, Europe is a region that particularly stands to benefit from a return of Chinese tourists.

☆ Analysis: Europe Inc earnings season a test for market optimism
▼ + stars: | 2023-01-23 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

In a sign analysts were unprepared for such optimism, Citi's economic surprise indicator for the euro zone (.CESIEUR) jumped last week to its highest since July 2021. "Companies are telling us that it's going to be harder to pass on rising costs to customers in 2023 as economic growth slows," said Nigel Bolton, co-chief investment officer of BlackRock Fundamental Equities. Fourth-quarter earnings for STOXX 600 companies are forecast to have grown by 10.7% year-on-year, the slowest in two years, according to Refinitiv I/B/E/S data. Earnings are seen bouncing back to growth of 11.4% in the final quarter of the year. Analysts downgrade earnings forecastsReporting by Joice Alves Editing by Josephine Mason and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Luxury giants bank on Chinese return as Western shoppers sober up
▼ + stars: | 2023-01-23 | by ( Mimosa Spencer | ) www.reuters.com time to read: +4 min

The pan-European STOXX 600 (.STOXX) was down 0.8% at 0929 GMT, and on track to snap a six-day winning streak. Energy stocks (.SXEP) fell 1.9%, tracking weakness in crude prices, after U.S. economic data stoked fears of recession in the world's largest economy. "Economic data remains noisy, making it hard to say for certain that the recent encouraging economic trends will continue," said Mark Haefele, chief investment officer at UBS Global Wealth Management. Dutch central bank chief Klaas Knot added to the chorus, saying markets may be underestimating planned rate hikes by the European Central Bank and investors should take more seriously its forecast to raise rates in multiples of 50 basis points. Investors are focussed on minutes from last month's European Central Bank meeting due later in the day, as well as an appearance from ECB President Christine Lagarde at the World Economic Forum in Davos.

☆ Luxury Brands See Early Signs of Recovery in China
▼ + stars: | 2023-01-18 | by ( Nick Kostov | ) www.wsj.com time to read: 1 min

British fashion house Burberry Group PLC and Cartier-owner Cie. Financière Richemont SA said sales to Chinese shoppers were starting to pick up, an early sign of recovery in what was the luxury industry’s biggest market before the pandemic. Persistent Covid-19-related disruption in China has been a major headache for makers of high-end clothing, handbags and jewelry, which had come to rely on spending by Chinese shoppers at home and abroad over the past two decades. Now, as Beijing lifts restrictions, the question is when and how strongly Chinese spending will bounce back.

☆ Burberry 'positive' about China rebound as stores reopen
▼ + stars: | 2023-01-18 | by ( Paul Sandle | ) www.reuters.com time to read: +2 min

But she said there were positive signs of recovery as stores reopened in mainland China and the country's luxury shoppers started returning to Hong Kong and Macau. "In January, we've seen a change in traffic, we've seen some strong trade coming through," she told reporters on Wednesday. "The timing and pace of recovery is likely to be somewhat unpredictable, but we're very positive about the early signs and confident in the long-term opportunity (in China)." Chinese consumers accounted for about 25% of Burberry's revenue, down from 40% pre-pandemic, she said, with the vast majority of spending happening in mainland China rather than in tourist centres outside the country. Richemont (CFR.S), the Swiss luxury group that sells Cartier jewellery and watches, also said on Wednesday that it expected a strong rebound in China.

☆ Luxury eyes focused on China after Richemont's Q3 sales miss
▼ + stars: | 2023-01-18 | by ( John Revill | ) www.reuters.com time to read: +3 min

SummarySummary Companies Q3 sales rise by 8% but miss market forecastsMainland China sales drop 24%Company says customer demand in China now picking upAll eyes on China for luxury sector, say analystsZURICH, Jan 18 (Reuters) - Cartier jewellery maker Richemont (CFR.S) missed market forecasts during its latest quarter as the resurgence of COVID-19 in China hit sales there, highlighting the country's importance for the luxury sector. Richemont, whose other brands include Swiss watchmakers IWC and Jaeger-LeCoultre, has been seeing strong sales growth in Europe, the Middle East and Japan, particularly for jewellery. But the mainland Chinese market - which accounts for about a fifth of the group's sales, according to Zuercher Kantonalbank estimates - struggled with sales down 24% in constant currency terms. The prospect of a pickup in Chinese sales meant analysts were not too worried by Richemont's quarterly miss. "The catch-up from Chinese consumers will come as strong as sales decelerated in 3Q, as they were able to save money during the lockdowns."

The pan-European STOXX 600 (.STOXX) was up 0.1% by 0910 GMT, extending gains for a sixth straight day on boost from rate-sensitive technology stocks (.SX8P) and industrials (.SXNP). Richemont (CFR.S) rose 2% on reporting higher quarterly sales as tourists returned to Europe and Japan. Still, the luxury group missed market estimates after sales in China plunged by almost a quarter. "For luxury, China is quite important with more hopes of rebounding activity in the first half of this year," said Emmanuel Cau, head of European equity strategy at Barclays Investment Bank. Reporting by Bansari Mayur Kamdar and Ankika Biswas in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ Luxury group Richemont's sales miss forecasts after China sales plunge
▼ + stars: | 2023-01-18 | by ( John Revill | ) www.reuters.com time to read: +2 min

Overall, Richemont's sales rose 8% to 5.4 billion euros ($5.82 billion) in the three months to the end of December, up from 4.98 billion euros a year earlier. The figure missed the 5.67 billion euros forecast by analysts. When currency movements were excluded, the company's sales increased by 5%. In Japan, sales increased by 30% during the quarter, aided by "solid" domestic sales and a gradual return of tourism. In Europe sales increased by 17% helped by strong local demand and returning tourists, particularly from the Middle East and the United States.

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