EU to start new trade talks with the US

The European Union countries have agreed to start new trade talks with the US. The EU Commission have now the formal authorisation to proceed with the matter.

But this situation is still facing resistance from France and Belgium. The France President Emmannuel Macron has said that he objects the talks because of the US withdrawl from the Paris Agreement in 2017.

And the issue is also about agricultural goods. The US wants them be part of the trade deal and the EU is not interested including them. It is also believed that the EU elections in May will increase the rethorik of protectionism in the agricultural products in France and in Belgium.

According to New York Times, the US Congress has made clear that it will not ratify any trade agreement with the EU that does not include agriculture. The Trump’s administration have been insisted to include them in the trade deal.

Last week the US Goverment announced that they are planning to propose new tariffs regarding civilian aircraft and agrigoods like French cheese and Italian olive oils. The reason for this was the WTO research, which found that the EU subsidies to Airbus (AIR) have had negative impact on the US trade. On the other hand, the WTO has shown that this is vice versa with the US subsidies in Boeing.

On the agenda there is also the tariffs proposed to the EU car import to the US.

Germany, the biggest automanufacturing country in the EU, increased its car production to 451 400 units in March 2019. The GDP from manufacturing in general was 171 billion euros during the fourth quarter of 2018.

Business Finance

Luxury brands helping to rebuild Notre Dame

French luxury brands Kering (KER) and LVMH (LVMH) are helping to rebuild the Paris cathedral Notre Dame.

The reconstruction of the Unesco heritage site will take long time after the fire on Monday. Kering has announced it will donate 100 million euros to the reconstruction and LVMH 200 million euros.

According to the LVMH’s release the company will put all of its teams (creative, architectural and financial) at the disposal of the project.

The Kering share price was down 0,09 % to 531 euros and the LVMH’s up 0,20 % to 342 euros.

Finance Lifestyle

Uber to file IPO on Nyse

The US ridesharing company Uber announced it is filing an IPO on Nyse. The trading is expected to start in the early May with the symbol UBER.

The company said the revenue last year was 11,3 billion dollars and loss 3,3 billion. The revenue from ridesharing was 9,2 billion dollars. Uber had 91 million users at the end of 2018.

According to Reuters the company is expected to sell stocks worth 10 billion dollars. If so the IPO would be the largest tech IPO after Alibaba in 2014.

The valuation of the company is estimated to be 90-100 billion dollars. Earlier the estimates were nearly 120 billion, but due to the debyt of its rival, Lyft, the pricing has been more moderate.

The IPO price for Lyft was 70 dollars per share, and the company is now trading below that. Today Lyft’s shares were up and trading at 60 dollars in New York.

Finance Tech

Brexit: May wants UK to leave EU by end of May

The UK Prime Minister Theresa May is seeking the Brexit-deal before the end of May. This would avoid the country arranging the EU elections.

She spoke today in the Parliament and asked the MPs to reflect the Brexit during their Easter holiday, which will be a week long breake. According to the Goverment, the talks with Labour party also continued today.

Yesterday the EU leaders decided to delay the deal until 31st October.

Business Finance

Brexit delay until end of October- Asia stocks mixed

The EU leaders agreed late last night that the extension to the Brexit deal is until end of October, the 31st October. And signalled that more extension could follow if needed.

According to EU Council President Donald Tusk this also gives the UK the possibility to cancel the Brexit altogether. The UK Prime Minister Theresa May said that the country is leaving the EU as soon as possible to avoid the May EU elections on 23-26 May. The UK Goverment was the Labour party are exptected to continue their discussions today in London.

The Asian stock markets were mixed and the Hang Seng in Hong Kong was down 0,58 % to 29944 point and the Nikkei was down 0,28 % to 21 627 points. Singapore with STI Straits index was up 0,37 % to 3339 points and the Kosdaq-index was up 0,82 % to 766 points.

The UK Sterling was trading up slightly 0,05 % to 1,3098 dollars and the euro also 0,01 % to 1,127 dollars.

 

Business Finance

Stock markets up in Wall Street – focus on economic growth

The stock markets ended up in Wall Street on Wednesday. The Federal Reserve published its minutes of the meeting, but there were no surprises for the markets. Actually, the markets expect the Fed rather to cut the rates than to rise. The same situation was also today in Europe, when the ECB had its press conference after the Council meeting.

The ECB decided to hold the rates unchanged and the same outlook is for the year end 2019. The ECB also announced it will be watching the economic development ir order to make further decisions. The trade talks between US, China and Europe have lowered the economic growth forecasts.

Dow Jones ended up 0,04 % to 26160 points and S&P 500 -index ended up 0,36 % to 2888 points. Nasdaq closed up 0,69 % to 7964 points.

The earnings season is starting on Friday and it is also the day the UK will be leving the EU if no-deal is reached. The EU leaders meeting in Brussels is still going on, but it is expected that the EU will grant UK more time to solve the Brexit. The lenght of the delay is now the big question.

In Europe the FTSE 100 -index closed down 0,05 % to 7421 points, while the Paris CAC 40 -index ended up 0, 25 % to 5449 points and the German DAX-index ended up 0,47 % to 11905 points.

The UK sterling was up 0,29 % to 1,3090 dollars and the euro was up 0,07 % to 1,127 dollars.

 

Business Finance

LVMH revenue growth + 16 % 12,5 billion euros Q1 2019

The world largest luxury group,the French LVMH Group (LVMH) published today its first quarter revenues. According to the company info, the total revenue was 12,5 billion euros, with 16 % growth from the year earlier. The company share was up 0,75 % to 329, 75 euros in Paris Stock Exchange. The S&P global luxury index was up 0,48 % to 3341,95 points today.

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Picture: Hublot´s and Ferrari´s co-operation in the BaselWorld 2019

One of the best increases was in the fashion & leather division, which showed a 20 % increase. According to LVMH, the luxury fashion brand Christian Dior performed exceptionally well during the period. In the wines division, the Hennessy cognat increased by 11 %. Perfumes showed an increase of 12 % and watches & jewellery 9 %.  Selective retailing increased by 13 %.

-The innovative products presented by LVMH’s watch brands at the Baselworld Watch & Jewelry Fair were very well received, including Hublot’s Classic Fusion Ferrari GT watch, Bvlgari’s Serpenti Seduttoriand Octo Finissimo Chronograph GMT Automatic watches, TAG Heuer’s connected watch model for golfers, and Zenith’s new Defy Inventor and Defy El Primero 21 Carbon models, the group said in the press release.

The Group has also opened a new brand flagship store in New York, in the ultra modern and high-design area in the Hudson Yards Development in Manhattan. From the online sales, the group said “the online sales grew strongly”.

The Group is arranging a confcall for analysts on Thursday for more information.

Business Finance Lifestyle