Chanel has had remarkable growth in recent years.
In 2023, it generated more revenue than Hermès $RMS.PA and approximately the same amount as Kering $KER.PA and Richemont $CFR.SW, at around $20 billion. The 114 year-old luxury giant is privately owned by the Wertheimer brothers, whose grandfather was a business partner of Coco Chanel. When the CEO, Leena Nair, was asked about an IPO last year, she said: “We’re going to stay a private, independent company. Rumours always float around, but you can put those to rest." Source: Quartr
In case you missed it... European financials index closed the week at the highest level since 2008...
Source: J-C Parets
WHAT IS HAPPENING IN GERMANY ???
Most economic data in the world's third-largest economy has come below average economists' expectations over the last 2 years. Germany is also on track for 2nd straight year of SHRINKING GDP, for the 1st time since 2003. Chart: @AugurInfinity thru Global Markets Investor
RED CAC...
France’s CAC 40 index is back in the red for the year after President Emmanuel Macron backed a temporary tax on the country's largest companies. Source: Bloomberg, HolgerZ
German government has abandoned hopes of achieving any economic growth in 2024.
Officials now expect stagnation at best, down from the previously projected 0.3%. This new forecast is even below consensus of +0.1%. As a result, Germany is falling further. Source: HolgerZ, Bloomberg
For those who wonder why the German economy is so important for global Macro...
As shown below, their weakening economy will impact the rest of Europe. Source: Michel A.Arouet, The World in maps
😱 The shocking chart of the day: The 5Y yield of Greek government bonds is now BELOW (!!!) the French ones 😱
🔊 French Prime Minister Michel Barnier announced his new government on Saturday, ending months of political uncertainty after snap elections left the country with a hung parliament. The new cabinet takes a noticeable shift to the right. But this announcement does not seem to convince markets. 🚨 Indeed, for the first time since 2007, the yield on French 10-year government bonds (2.95%) exceeded that of Spanish and Portuguese bonds. And for the first time ever, the French OAT 5Y yield is now ABOVE the 5y Greek government bonds yield. Meanwhile, the spread with the German Bund has widened to 82bps (vs. 50 at the beginning of June), and the risk of political instability accentuates this trend. 🔔 These are clear signals that markets doubt the French government's ability to reduce its public deficit. The latter stands at 5.5% of GDP in 2023, well above the EU's target of 3% by 2027. ⚠ France is just unable to convince and reassure people of its ability to maintain a budget and a sustainable financial situation in the medium to long term. Source: Bloomberg
In case you missed it... While the german economy is struggling, the stock market doesn't care...
Germany's blue-chip index Dax jumped >19,000 points for the first time after Fed's jumbo rate cut. Source: HolgerZ, Bloomberg
