What luxury stocks say about the new cold war

Is it inlvmhcac Europe’s interests to follow America into a conflict over Taiwan? The suggestion by Emmanuel Macron, president of France, that perhaps it is not provoked anger on both sides of the Atlantic. But many French business leaders will quietly agree with Mr Macron’s intention: to defuse tensions between China and the West. After all, the French stockmarket closed at a record high on April 12th, with strong Chinese demand the most obvious cause., a luxury-goods giant, is the largest stock in France’s 40 index, making up 13% of market capitalisation. On April 12th the company reported a 17% year-on-year jump in sales in the first quarter. Hermès International, Kering and Pernod Ricard, other luxury brands, account for another 8%. The companies make money not only from Chinese outlets, but from Chinese tourists in Europe. All have benefited enormously from the end of the Chinese government’s zero-covid approach.