Kering Group sales up 21,8% to 3648 million euros Q1 2019

The French luxury group Kering Group (KER) reported that the sales of the first quarter were up 21,8 % to 3648 million euros. The sales of the Gucci brand products rose nearly 25 % to 2352 million euros.

The Kering said that all regions performed well, particular Asia-Pasific, which showed 29,6 % increase in the sales. Online sales continued also to grow.

According to the company both carryovers and newness made strong success in the Gucci products. The sales in Asia-Pacific rose 35,3 % and in Japan 15,8 %. The sales of Yves Saint Laurent were 497 million euros, up 21,9 %  and Bottega Veneta 248 million euros, down 0,05 %.

At the corporate governance side the Kering announced that it has appointed Ms Sophie L Helias as lead independent directort to speak about the ESG issues on behalf of the Board, with coordination of the Chairman of the Board Francois-Henri Pinault.

Th company is listed in the Paris Stock Exchange with the market cap of 67,9 billion euros.

Business Lifestyle

Qualcomm shares continued up 12% in Nasdaq today 

The share price of the US wireless company Qualcomm (QCOM) continued in the Nasdaq Stock Exchange in New York today. The stock ended up 12,25 % to 79,08 dollars in the aftermatch of the yesterdays news of the global royalty settlement with Apple (AAPL). Yesterday evening the stock climbed over 23 % after the news release.

Apple-shares also rose and ended up 1,95% to 203,13 dollars. The settlement means that the companies have agreed the shipments for the next six years and also Apple made an onetime payment related to the royalties. In the future Apple will have Qualcomm chips in its iPhones while the current supplier Intel (INTC) has had delivery problems.

Intel also announced yesterday that it will exit the 5G modem markets and focus on other parts of 5G ecosystem. Intel shares ended up 3,26% to 58,56 dollars. According to markets the company sift is seen as positive action towards more profitable business sectors.

The overall market sentiment was down in spite of the positive outlook for the semiconductor and mobile industry. Dow Jones ended down 0,01 % to 26 449 points, the S&P 500 index ended down 0,23 % to 2900 points and Nasdaq ended down 0,05 % to 7996 points.

Euro was trading unhanged at 1,1296 dollars, as well as the UK sterling, unchanged at 1,30 dollars.

During the day the economic indicators showed that China GDP grew 6,4 % annual rate during the first quarter this year. The growth exceeded the estimates. On the other hand, the US trade deficit dropped in February due to the 20,2 % decline in the imports from China.

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Uber to make deal with self-driving car unit / WSJ

The US ride-hailing company Uber (UBER) is to make a deal with self-driving car unit, according to the Wall Street Journal on Wednesday. 

According to the news, Softbank, Toyota and Japan-based auto-parts supplier Denso Corp would invest a total of one billion dollars in the deal. The deal is expected to be announced in the next few days.

Softbank is one of the biggest owners of the ride-hailing company with 16 % ownership. The company is preparing for an IPO and listing is expected to start in May.

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Notre Dame reconstruction is not affecting insurance industry

The fire in the French cathedral Notre Dame is not affecting insurance industry as such. According to several media sources the Unesco heritage site was on the responsibility of the French Goverment.

 The German Handelsblatt wrote on Wedensday evening that the cathedral did not have insurance coverage and that the French Goverment is expected to pay the reconstruction expenses. This news was based on the information in the La Parisien newspaper.

 The estimate of the expenses is several billion euros. On the other hand there have been major donations to the rebuilding project and it is expected that the Goverment will launch a fund dedicated to the project. One of the major donations companies, the French luxury company Kering (KER) with the brands Gucci, Boucheron, Dodo and Saint Laurent, said that they do not want the tax relief related to their 100 million euros donation.

The major art treasuries in the cathedral were insured by the French insurer Axa (AXA) and major part of them are now placed in the Louvre museum. The share price of Axa closed today up 0,45% to 23,68 euros in Paris Stock Exchange. The share price of  the luxury company Kering was also up and the share closed up 0,86 % to 537,50 euros. The LVMH stock closed also up, 1,49 % to 350, 50 euros.

Business Finance

Apple and Qualcomm to settle royalty disputes

Apple-Watch-Series4_Gold-Milanese_09122018Apple (AAPL) and Qualcomm (QCOM) have reached an agreement about the global royalty disputes. The companies announced the deal on Tuesday evening but did not closed any price details.

According to the deal, Apple is to make an onetime payment to Qualcomm and part of the deal is that the companies have also reached  a six year license agreement. Qualcomm commented that this agreement will increase its earnings by 2 dollars per share when the shipments of chips to Apple starts.

After the news, the share price of Qualcomm jumped and closed up 23,21 % to 71,76 dollars. The share price of Apple was up slightly, closing 199,23 dollars.

Recent studies by CTA show that the 5 G enabled smartphones will reach 2,1 million units and 1 billion dollars revenue this year. According to the research by 2022, 76 % of all the smartphones will be 5 G enabled. It is expected that the rise of the 5 G in the US markets have fueled the companies to reach the deal.

Business Tech

Macron says Notre Dame will be rebuild in five years 

The French President Emmanuel Macron said today that the Paris cathedral Notre Dame will be rebuild within five years. He was speaking to the nation about the situation on Tuesday evening. On Monday vast part of the church was destroyed by a fire.

During the day there have been several annoucements about donations to the reconstruction of the cathedral. The sum is now more than 700 million euros. The first big donations were published by the leading luxury brands.

– Yes, we will build the cathedral of Notre Dame even more beautiful than it was. But this must be done in five years. We can do that, he said.

The fire lasted about 12 hours and according to Bloomberg, some of the major treasures were removed to City Hall, like the Crown of Thorns and Louis IX tunic and some others to Louvre. According to the Culture Minister Franck Riester it seems that the rose windows were not damaged. The cathedral is a 850 years old Gothic style Unesco heritage site.

The Paris stock markets closed up today, the CAC 40 up 0,36 % to 5528 points. The German DAX index closed also up, 0,67% to 12101 points. And London FTSE closed up 0,46% to 4092 points.

Business Design

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.

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