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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER CYCLICALS
LVMH (MC FP) posted positive results after the Euro close last night, the equity is indicating +5% in pre-market trade this morning.
- 4Q23 revenues were EUR23.9bn (+5.5% y/y, consensus 23.7bn, organic +10%) so marginally ahead. Most business lines were relatively close to consensus (wines & spirits was ahead but is small). By geography, Asia missed consensus marginally but was still 17% up y/y.
- Outlook stmt is characteristically bombastic, titled “Confidence for 2024”; certainly no effort is being made to talk down expectations. Sephora, specifically, is described as “exceptional”. Bernard Arnault’s succession plans are enacted with sons Alexandre and Frederic proposed as board members.
- YTD, LVMH’s curve (rated: Aa3[S]/AA-[S]/NR) has mostly traded wider with a slowdown in the key Chinese markets spooking investors, we feel. The benchmark ’25 bond (MCFP 0 3/4 04/07/25) has been rapidly caught by competitor Kering, owner of Gucci, far less diversified and one notch lower at A by S&P (see graphic).
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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