The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
HONG KONG, China — European luxury goods stocks and Asia-exposed banks rallied Wednesday following a report that Hong Kong Chief Executive Carrie Lam plans to formally withdraw the extradition bill that has caused months of protests in the city.
The South China Morning Post reported Lam's intentions, citing people it didn't identify. The bill had already been suspended, but an official withdrawal is among key demands of pro-democracy protesters. Local stocks surged and the Hong Kong dollar jumped on the news.
In Europe, luxury goods names rose on the news, given the reliance the industry has on sales to Chinese consumers visiting Hong Kong. Swatch Group AG and Cie Financiere Richemont SA, two of the companies cited by analysts as the most exposed to the disruptions, were higher. Kering SA, LVMH SE, Moncler SpA and Hugo Boss AG all rose, making retail among the top-performing Stoxx 600 sectors in early trading.
Other Hong Kong-exposed stocks also benefited. HSBC Holdings Plc and Standard Chartered Plc, which both have a major presence in the Hong Kong market, gained at least 2.3 percent. Shares in Prudential Plc, the UK insurer which gets more than half its revenue from Asia, rose as much 4.9 percent, the most intraday since December.
By Sam Unsted; editors: Beth Mellor and John Viljoen.
This week, more luxury brands will report first-quarter results, offering clues as to how broad and how deep the downturn is going to get.
Fashion brands are edging in on the world’s largest gathering of design professionals and their wealthy clients, but design companies still dominate the sector, which is ripe for further consolidation, reports Imran Amed.
Blocking the deal would set a new precedent for fashion M&A in the US and leave Capri Holdings in a precarious position as it attempts to turn around its Michael Kors brand.
After preserving his fashion empire’s independence for decades, the 89 year-old designer is taking a more open stance to M&A.