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

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

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

LVMH: Hublot´s sale 250 million watches during the fairs

Jean-Claude Biver, the President of the LVMH´s Watch Division, estimates that  Hublot will sell 250 million watches during the BaselWorld fairs. The event, which is seven days long started on the 21st and they will end next week Tuesday. Biver commented the fairs in the interview in the Basler Zeitung on Saturday.

The event is important for watch manufacturers for two reasons as Biver says: ” Naturally we would like to make turnover, but the direct contact with the customer is also important – and that is why the BaselWorld is a double win for us.”

There has been speculation about the future concept of the BaselWorld after the Swiss Group Swatch decided not to take part in the event. According to Biver, the LVMH Group, which includes watch brands Hublot, Tag Heuer  Bvlgari and Zenith,  has given time to the fairs and their decision to take part in the next year event will be decided next week.

He also critiseses the decision to integrate the Genf Salon de la Haute Horlogerie and Baselworld. According to the decision the two events would both be in April next year, when the Genf event has always been in January.  Biver says that he would like to see both events to take place in January in order to have the full potential of  a calendar year.

 

 

Lifestyle

Hublot to present new Ferrari watch in Basel

Hublot, part of the French LVMH (LVMH) Group,  presented several exceptional new timepieces at Baselworld 2019, including the new Ferrari watch.

– Continuing its long collaboration with Ferrari, Hublot also unveiled the Classic Fusion Ferrari GT, a watch, whose innovative design integrates the new Unico manufacture movement and the dynamic lines of Gran Turismo very high-performance luxury cars, the company says.

According to Hublot this collaboration has also for the first time enabled Hublot teams to fuse their skills with those of the “Centro Stilé Ferrari” design center. This was one fo the new moments with creating new bridges between watchmaking motorization and automotive design.

 

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LVMH to buy Belmond luxury hotel group

The world largest luxury Group LVMH (LVMH) announced on Friday that it has reached an agreement to buy the Belmond Luxury Hotel Group (BEL), listed in the New York Stock Exchange. The offer is 25 dollars per class A share. The equity value is 2,6 billion dollars and enteprise value 3,2 billion dollars.

According to the French luxury group LVMH the acquisition complements the other grups´s activities, like the Bvlgari and Cheval Blanc operations. Belmond Group is a luxury hotel and travel operator with 33 hotels wordwide and has several cruises and trains, mainly in Europe.

The company started its business about 40 years ago in Venice, when the Hotel Cipriani was opened. The group´s  12 months revenue was 572 million dollars and ebitda 140 million dollars at the end of September. One of the famous restaurants, Club 21 in New York, is also part of the chain.

The transaction is being finalised after the approval of the Belmond shareholders during the first quarter of 2019 and after the anti-trust clearance in mid-2019.

LVMH´s shares closed down by 1,43 % to 252,20 euros in Paris Euronext and the Belmond´s shares jumped by 39,83 % to 24,68 dollars in New York on Friday.

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