Can the flapping of a butterfly’s wings in China cause a tornado in Paris? In any case, the winds have been very favourable on the stock market since this morning for the luxury group LVMH, owned by the Arnault family. The share price rose by almost 7% at midday, after six months of almost uninterrupted decline. The share price of the former most valued group in Europe thus fell from 872 euros to 590 euros.
Bernard Arnault’s professional fortune had shrunk at the same time by $28 billion according to Bloomberg. The richest man in the world at the beginning of the year is now only fifth in September. But it will increase in the coming hours since with the rise in LVMH shares, Bernard Arnault’s wealth has already increased by $12.6 billion on Thursday according to the real-time ranking of the world’s great fortunes. Forbes.
The French luxury emperor can therefore thank Xi Jinping. His group is gaining ground on the stock market not because of better-than-expected results, but thanks to the economic recovery measures that China is preparing to implement. The Chinese president has reportedly decided with his Politburo to stimulate the Chinese economy, particularly the banking and real estate sectors, with a view to achieving 5% growth by 2024.
China, second luxury market
A boon for the luxury sector, for which China remains the world’s second-largest market. In 2023, China accounted for 16% of the €362 billion total spending in this sector. If the country emerges from its slumber, it will be all the luxury one could hope for.
The slowdown in the sector is expected to continue, with sales expected to fall 1% in the second half of 2024, according to Bank of America.
This news from China is therefore a divine surprise for the entire luxury sector, but also for spirits. In addition to LVMH, Kering is up almost 8% on Thursday, Hermès is up more than 7%, Pernod Ricard is up nearly 5% and Rémy Cointreau is up 7%. Proof that a Politburo meeting in China can put a smile on the faces of billionaires in France.
Source: BFM TV
