RE: Valkyrie Dutch approval8 May 2022 13:17
Agreed Crowman.
It was going to be 50/50 chances of survival doing it the Merc way.
Now Stroll wants to fund in house development. They have no funds for this.
Check this too, 2022/23 looks utterly bleak for AML.
https://www.ft.com/content/314bb4c9-cb47-4678-971a-5ae6fcf00d9b
When the policy was announced in August, shares in the largest luxury groups plummeted. Paris-listed Kering, owner of the Gucci brand, fell by a fifth as did LVMH and Switzerland’s Richemont, the company behind the watchmakers Cartier and Piaget. But since then most investors have shrugged off the plunge. Yet if China’s anti-corruption drive of 2012 is any guide, the worst is still to come for the luxury groups. Back then the clampdown led to a sharp drop in profits for Europe’s luxury brands and shattered sales expectations for everything related to luxury, from handbags to private jets. It lasted four years.
Meanwhile Chinese officials have blamed foreign brands for creating the consumer credit bubble, claiming millennials — the driving force behind new luxury goods purchases in China — borrow money to pay for them. The debt-to-income ratio of China’s post-1990s generation had already reached a record of more than 1,800 per cent in 2018, according to an HSBC survey. Since then official household debt levels have grown further. In this environment, prudent Chinese shoppers may decide it is better to hide rather than flaunt their wealth. That could mean moving away from luxury brands entirely.
The reality remains that global luxury demand will face pressure as long as Chinese growth keeps slowing. The looming political risks make it hard to trust the sustainability of the buying frenzy of the past two years. There is now a greater need for investors and luxury brands to hedge against China.
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