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LONDON/ZURICH, Jan 18 (Reuters) - Luxury retailers Richemont (CFR.S) and Burberry (BRBY.L) said they were optimistic that consumers in China would start spending again, helping offset three years of upheaval from the government's strict COVID-19 lockdowns and soaring infections. Richemont (CFR.S), whose brands include Cartier jewellery and Swiss watches IWC and Jaeger-LeCoultre, also said it expected a strong rebound in China. The European luxury sector is among the largest expected winners as China loosens COVID-19 restrictions that kept shoppers out of stores for months. Richemont missed market estimates after sales in China plunged by a quarter, as customer traffic dwindled and staff were not available, leading to a reduction of boutique hours, or temporary closures of sales points, the company said. Mainland China is currently 25% of Burberry sales, down from about 40% pre-pandemic.

☆ Italian watchdog fines online retailer YNAP more than $5 mln
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +1 min

ROME, Jan 13 (Reuters) - Italy's antitrust agency has fined online fashion retailer YOOX Net-A-Porter (YNAP) 5.25 million euros ($5.69 million) over misleading pricing and its returns policy, the regulator said on Friday. YNAP did not immediately respond to an emailed request for comment. The regulator said the violations took place between 2019-2022. The business was controlled by Swiss luxury group Richemont (CFR.S) until last year, when it sold a majority stake to luxury e-commerce specialist Farfetch (FTCH.N) and Dubai Mall developer Mohamed Alabbar. ($1 = 0.9229 euros)Reporting by Alvise Armellini Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

☆ South Koreans are the world's biggest spenders on luxury goods
▼ + stars: | 2023-01-13 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +1 min

Handbags displayed in a Chanel SA store window at the Avenuel department store, operated by Lotte Shopping Co Ltd., in Seoul, South Korea, on Tuesday, Dec. 14, 2021. Whether it's calf-leather Italian Prada bags or classic, checkered British Burberry trench coats, South Koreans are the world's biggest spenders on personal luxury goods per capita, Morgan Stanley said. The investment bank estimated South Korean total spending on personal luxury goods grew 24% in 2022 to $16.8 billion, or about $325 per capita. Luxury brands have also highlighted strong sales in Korea. Moncler said its revenue in South Korea "more than doubled" in the second quarter compared with before the pandemic.

☆ China’s reopening has gotten Wall Street excited. Here’s how the pros are playing it
▼ + stars: | 2023-01-10 | by ( Zavier Ong | ) www.cnbc.com time to read: +5 min

Over the past week, a host of Wall Street banks have turned increasingly bullish on the world's second-largest economy and have upgraded their outlook on Chinese stocks. Morgan Stanley expects China's GDP to grow by an "above-consensus" 5.4% in 2023, on the back of a "fast-tracked" reopening and more proactive policy easing. Meanwhile, UBS says Chinese stocks look increasingly attractive. How to play the reopening Against this backdrop, analysts have named a slew of both Chinese and global stocks they think will benefit most from China's reopening. Bank of America's domestic reopening beneficiaries include consumer stocks such as alcoholic beverage makers Kweichow Moutai and Tsingtao Brew , airline stocks including China Southern Airlines , as well as online travel platform Trip.com .

☆ Upbeat economic data powers European shares to third day of gains
▼ + stars: | 2023-01-04 | by ( Bansari Mayur Kamdar | ) www.reuters.com time to read: +3 min

The pan-European STOXX 600 (.STOXX) rose 0.8%, while France's CAC 40 (.FCHI) added 1.3%. Data on Wednesday showed euro zone business activity contracted less than initially thought, suggesting the bloc's recession may not be as deep as feared. Further, preliminary data showed inflation in France slipped in December from a record high in the previous month, tracking a slew of encouraging data from improving euro zone manufacturing numbers to a slowdown in Germany's inflation. The STOXX 600 index has risen 3% in the first three trading days of the new year, helped by strong economic data, easing of natural gas futures and hopes of a post-COVID recovery in China despite surging cases. Meanwhile, data showed fresh food prices at British supermarkets in early December were 15.0% higher than a year earlier, weighing on UK sentiment.

☆ European shares slip as COVID surge in China weighs
▼ + stars: | 2022-12-29 | by ( ) www.reuters.com time to read: +1 min

The region-wide STOXX 600 (.STOXX) fell 0.4%. China-exposed luxury firms such as LVMH (LVMH.PA) and Richemont (CFR.S) weighed on the European index in early trading. Energy stocks (.SXEP) fell 0.6%, while miners (.SXPP) dipped 0.3%, tracking weakness in commodity prices. Consumer staples such as Nestle (NESN.S) and L'Oreal SA (OREP.PA) fell 1.2% and 0.5%, respectively. Reporting by Bansari Mayur Kamdar in Bengaluru; editing by Uttaresh.VOur Standards: The Thomson Reuters Trust Principles.

☆ European shares muted, UK outperforms as China-exposed stocks jump
▼ + stars: | 2022-12-28 | by ( Bansari Mayur Kamdar | ) www.reuters.com time to read: +3 min

The region-wide STOXX 600 (.STOXX) was flat as of 9:31 GMT, while the FTSE 100 <.FTSE> advanced 0.7% as commodity-linked and China-exposed stocks jumped in early trading. The UK market, which was closed for holidays since its half-day trading on Friday, is playing catch-up, analysts said. The FTSE 100 index has benefited this year from its exposure to commodities as prices of oil and base metals have rallied amid the Russia-Ukraine war. Meanwhile, STOXX 600 was headed for an annual loss of 12.2% as concerns about an economic recession due to aggressive monetary policy tightening by central banks globally weighed on the European index. The technology sector (.SX8P) weighed on STOXX 600 on Wednesday, tracking the overnight fall in U.S. peers as rising yields pressured the interest rate sensitive shares, a recurring theme this year.

☆ European shares gain on China recovery optimism
▼ + stars: | 2022-12-27 | by ( Bansari Mayur Kamdar | ) www.reuters.com time to read: +2 min

The pan-European STOXX 600 index (.STOXX) gained 0.4% to start the holiday-shortened week higher. China on Monday said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID. While London and Dublin markets remained closed for the Christmas holiday, most European bourses advanced in early trading. Miners (.SXPP) and energy stocks (.SXEP) added 1.0% and 1.4%, respectively, as commodity prices jumped on hopes of demand recovery in top consumer China. Industrials (.SXNP) and banks (.SX7P) gained for a second straight session, lifting the broader European index.

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.

☆ Activist investor calls for BlackRock CEO Fink to step down over ESG ‘hypocrisy’
▼ + stars: | 2022-12-07 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Larry Fink, Chairman and C.E.O. of BlackRock arrives at the DealBook Summit in New York City, November 30, 2022. David Dee Delgado | ReutersLONDON — BlackRock CEO Larry Fink is facing calls to step down from activist investor Bluebell Capital over the company's alleged "hypocrisy" on its environmental, social and governance (ESG) messaging. However, in a letter to Fink dated Nov. 10, shareholder Bluebell expressed concern about the "reputational risk (including greenwashing risk) to which BlackRock under the leadership of Larry Fink have unreasonably exposed the company." The company remains a major shareholder in the likes of Glencore and "coal intensive miners" Exxaro, Peabody and Whitehaven, Bivaro's letter to Fink on Nov. 10 noted.

☆ UBS reveals global stocks that will win — or lose — when China reopens
▼ + stars: | 2022-12-01 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

But when they do, Swiss bank UBS has identified stocks in the MSCI Europe index that will do better than others "in an environment where China's growth rebounds." The investment bank screened for companies in Europe that meet the following criteria: A high percentage of sales exposure to China. The stocks in the table below have been ranked using UBS' composite score, which brings together the above factors. London-listed engineering groups IMI and Weir Group and Asia-focused bank Standard Chartered were among the top 15 stocks with high exposure to China, according to UBS. According to UBS, shares of chemicals and specialty materials companies BASF , Solvay , Arkema and Sika are also exposed.

☆ Gucci designer’s exit boosts Kering’s M&A urgency
▼ + stars: | 2022-11-24 | by ( Lisa Jucca | ) www.reuters.com time to read: +3 min

MILAN, Nov 24 (Reuters Breakingviews) - The abrupt departure of star Gucci designer Alessandro Michele on Wednesday is putting French luxury boss François-Henri Pinault on the spot. The Italian brand, Kering’s (PRTP.PA) largest, has been a money-spinner for the 68 billion euro French conglomerate. Gucci revenue nearly trebled to 9.6 billion euros between 2014 and 2019. Reuters GraphicsFollow @LJucca on TwitterCONTEXT NEWSKering’s top brand Gucci said on Nov. 23 Creative Director Alessandro Michele had stepped down. Under Michele’s creative leadership, Gucci sales grew nearly three times from 2014 to 9.6 billion euros in 2019, one of the best performing brands in the luxury world.

The maker of IWC and Piaget watches surprised to the upside by reporting sales and operating profit from continuing operations rising by a quarter during the six months to the end of September. Jewellery sales rose by 24% in the period, with customers snapping up collections such as Cartier's Clash and Trinity rings and necklaces. The figures also showed the quality of the group's brands, "particularly its best in class jewellery business", Cox added. But from continuing operations, which removed the impact of the write-down and YNAP's losses, Richemont's profit increased by 40% to 2.1 billion euros. The latest results showed "excellent sales growth, profit and cash flow results", he added.

☆ As Watch Sales Boom, Watch Flippers Face a Bust
▼ + stars: | 2022-11-11 | by ( Carol Ryan | ) www.wsj.com time to read: 1 min

The luxury watch market is still ticking along nicely for brand-new products. For secondhand ones, not so much. On Friday, shares in Compagnie Financière Richemont , which owns numerous Swiss watchmakers as well as jewelry brands like Cartier, jumped about 10% after it reported strong results for the six months through September. Its watch sales were up 15% compared with the same period last year.

☆ Luxury group Richemont sounds cautious note on cost-of-living pressures
▼ + stars: | 2022-11-11 | by ( John Revill | ) www.reuters.com time to read: +2 min

Still, from its continuing operations, which removed the impact of the write-down and the contribution from YNAP, Richemont's profit increased by 40% to 2.1 billion euros and profit margins improved. Sales increased by 24% to 9.67 billion euros, helped by a recovery in the Asia Pacific region and double-digit percentage sales growth in all other regions as previously locked-down customers returned to its luxury boutiques. Chairman Johann Rupert described the figures as "another set of strong results," but added a note of caution about the future. "Richemont is well known for giving cautious guidance, which this time is to the point, considering the ongoing tough environment," Bertschy said. ($1 = 0.9785 euros)Reporting by John Revill, Editing by Miranda Murray & Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

☆ Energy crisis dims festive sparkle in Europe's shops
▼ + stars: | 2022-11-11 | by ( Mimosa Spencer | ) www.reuters.com time to read: +4 min

PARIS, Nov 11 (Reuters) - Retailers in Europe are having to strike a delicate balancing act with this year's Christmas displays: how to create enough festive sparkle to loosen cash-strapped customers' purse-strings, while acknowledging the impact of the energy crisis. However, the energy crisis has accelerated plans to "reduce consumption to be a good citizen both socially and environmentally", he added. He said the store was moving faster to reach its goal of shifting entirely to LED lighting and began turning lights off at night in September. "It makes a big difference," said Eleanore de Boysson, region president of Europe and the Middle East for LVMH's travel retail division DFS. Other "small" gestures include only partially lighting the store and its offices during early morning cleaning hours, she added.

The Hang Seng (.HSI) surged 5.3% and notched its biggest weekly gain in 11 years. Shares in online giants Alibaba (9988.HK) and JD.com (9618.HK) each rose more than 10% and the Hang Seng Tech index (.HSTECH) rose 7.5%. However the Hang Seng remains down 30% this year against a 24% fall in world stocks (.MIWD00000PUS). China stocks market capBUY THE RUMOURChanges to COVID policies have not been officially flagged. Yet markets have desperate reasons to rally after the Hang Seng hit a 13-year low last month in the wake of China's Communist Party Congress.

☆ LVMH's resilience gives luxury shares a boost amid economic gloom
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: +2 min

"LVMH's 3Q22 print will likely reassure on the health of the high-end consumer in the run-up to the festive season," said Thomas Chauvet of Citi. He said he had seen no signs that lower product categories were underperforming -- a category that has been closely eyed for signs of weakness. Analysts have been on the look out for signs of weakness in more aspirational products as younger shoppers face rising living costs. Guiony flagged a strong performance in watches -- luxury products that tend to do well in an inflationary environment because they hold their value. Hermes and Kering (PRTP.PA) report third quarter sales on Oct. 20.

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