Europe’s Richest Man Gains $11 Billion on Day Stocks Surged

[DOS_patos]

Luxury-goods mogul Bernard Arnault has been hard hit by the spread of the coronavirus, losing more financially than anyone else in the world.

He’s directly enlisted his conglomerate -- which controls Christian Dior and Louis Vuitton -- in the battle against the virus by financing the delivery of millions of medical masks to France from Chinese suppliers and converting a Dior perfume factory outside Orleans into a producer of hand sanitizer.

On Tuesday, he got some financial relief as global stocks jumped on optimism a massive U.S. stimulus package is on its way. Shares of Christian Dior and LVMH surged and his fortune increased $11.3 billion on the day, the biggest trading-driven gain in the history of the Bloomberg Billionaires Index.

Arnault, whose net worth climbed more last year than anyone else on the 500-member index, is still down $35.2 billion so far in 2020 as the pandemic has spread.

The swings in Arnault’s fortune underscore the dramatic volatility of global markets, driven by virus panic and alternating hope and pessimism for government intervention. After four days of declines, the Dow Jones Industrial Average posted its biggest advance since 1933 on Tuesday.

Warren Buffett was the next-biggest gainer on the index, rising $6.5 billion, while Spain’s Amancio Ortega, the titan behind the Zara fast-fashion brand, added $5.9 billion. Still, overall the world’s 500 richest people have lost more than $1 trillion since the start of the year.

 

[Banginscrew901]

Wow

 

[dasmooth1]

I almost bought shares in LVMH

What stopped you? Overvalued?

 

[dasmooth1]

I know LVMH will get cheaper because nobody gives a fuck about high fashion in times like this. I predict they will report their first profit loss in decades and France and the rest of Europe will fall into recession as the heal from the economic impact of COVID-19. Retailers will feel it the most.

Also couture is dead. That's why Versace got sold to Michael Kors for less than what they could have gotten. So the question is, did they cop out or was it something else we don't know yet ? They needed a Michael Kors to keep them alive. It's also why these expensive brands are doing collabs, like Louis Vuitton with various Hip-Hop artists or why Bernard bought Moet and Hennessy. You know it's tough when high end fashion houses sre doing collaborations with companies they used to scoff and look down on (i.e. Nike and Coach, etc.) They used to shit on American fashion and brag about how Americans want to European fashion instead. Now it's the Americans bailing them out. Funny how things turn out. He who last laughs....

I think you're absolutely right on the bolded. That's why I've added to my position with ABF (parent company of cheap clothes retailer Primark which is hugely popular in the UK). Their supply chains have been affected by Chinese factory closures and now the store closures in the UK is significant because they have no online presence. However, once they do reopen, many people despite having lower/no income will be wanting to make themselves feel good or looking for a retail pick me up for the summer. Instead of jumping to luxury brands I can see Primark being the go to for keen shoppers.