As the year 2021 draws to a close, let’s take a look back at the economic news that marked the last twelve months.
In January, LVMH completes the acquisition of Tiffany
On January 7, 2021, the world’s leading luxury goods company opened the year with a bang. LVMH announced the completion of the acquisition process of Tiffany & Co. After many twists and turns, the historic New York jeweler joins the 75 houses of the LVMH group. Anthony Ledru has been appointed Chairman and CEO of Tiffany & Co. Our article here.
In February, Joe Biden’s stimulus plan worries economists
U.S. President Joe Biden, elected on November 3, 2020 over incumbent President Donald Trump, was inaugurated on January 10, 2021. Freshly elected, the president unveiled a stimulus plan estimated at 1.9 trillion the following month. Going back to the Keynesian policy of President Franklin D. Roosevelt and his New Deal, Joe Biden‘s plan caused a stir in the economic world brasil-libido.com. Many fear a return of inflation. Our article here.
In March, French exports at the heart of the Business France conference
On Thursday, March 17, the Business France conference was held, organized by Christophe Lecourtier, the Director General of Business France. Franck Riester, the government’s deputy minister for foreign trade, announced that his policy for the coming months would be to open up more to the international market. He also encouraged the actors present to do the same. Our article here.
In April, the beginning of the end for Lagardère
On April 26, the Lagardère group (which owned Europe 1, the JDD, Paris Match, Hachette) confirmed a project of transformation into a limited company. Heavily in debt since the bankruptcy of La Cinq, the first bankruptcy of a general-interest television channel, Arnaud Lagardère has his back to the wall. The businessman, who was drowning in a personal debt estimated at 164 million euros in January 2020, is losing absolute control of his group. His two main shareholders, Vincent Bolloré (Vivendi) and Bernard Arnault (Groupe Arnault), did not oppose this decision. Our article here.
In May, Bernard Arnault becomes again the world’s second fortune
Bernard Arnault, head of the world’s leading luxury goods company LVMH, is once again the second richest man in the world. With an estimated business wealth of 161 billion dollars, the French billionaire is just behind Amazon founder Jeff Bezos, but ahead of Elon Musk, the boss of Tesla. He is, to date, the only Frenchman to be part of the ten largest fortunes in the world. Our article here.
In June, a truce in the Airbus-Boeing conflict
It was a long-awaited decision in the conflict that has pitted Brussels against Washington for more than 17 years. On June 15, during the first meeting between the United States and the European Union since 2017, a five-year truce was agreed upon by both allies. Punitive tariffs imposed as part of this economic conflict are thus suspended for the next five years. This is good news for our wine growers, who are facing difficulties due to the taxes imposed by the Trump administration on French wine. This decision comes as the competition between China and the United States intensifies, and a few days before a decisive meeting between Joe Biden and Russian President Vladimir Putin. Our article here.
In July, the NFTs break all records
In 2021, NFTs are on everyone’s lips. In the first half of the year, the sales volume of NFTs crosses $2.5 billion, a level never seen before. In the same period in 2020, NFTs volume was only $13.7 million. On July 2, NFTs art hits new heights with a Christie’s auction of artist FEWOCiOUS, which tops $2 million. Our articles here and here.
In August, China’s Common Prosperity Plan
The President of the People’s Republic of China, Xi Jinping, presents his “common prosperity plan” in August. Aiming for greater social equity, the Chinese Communist Party is considering the introduction of an income tax. Thus, Xi Jinping‘s plan mainly targets the country’s wealthy population, and threatens the majority of the luxury goods industry’s clientele in its first global market. The day after this announcement, luxury stocks were in the red on the Paris Stock Exchange. Our article here.
In September, bitcoin divides
On September 7, El Salvador passed a law making bitcoin a legal currency in the country. This announcement provokes strong reactions from Salvadorans, who do not trust the currency. On September 24, bitcoin and all other crypto-currencies were officially banned in China, in stark contrast to the situation in El Salvador. After a long policy of repression, the Chinese government finally adopts a total ban on all financial transactions involving crypto-currencies. Bitcoin falls by 6% following this decision. Our articles here and here.
In October, Tesla makes headlines
As he once again becomes the richest man in the world at the end of September 2021, overtaking Jeff Bezos and Bernard Arnault, Elon Musk and his Tesla brand are making news in October. On October 7, Elon Musk mentions a transfer of Tesla‘s headquarters to Texas. This is a godsend for Tesla, which is leaving Palo Alto and Silicon Valley for a state with a cheaper workforce and less stringent regulations. On October 25, Tesla’s valuation exceeds one trillion dollars thanks to a major order from the car rental company Hertz. This makes Tesla the most valuable carmaker in the world. Our articles here and here.
In November, Jerome Powell is re-elected as head of the Fed
Jerome Powell, the current chairman of the U.S. Federal Reserve (Fed) has been re-elected for a second term. His candidacy was supported by President Joe Biden, despite the opposition of several progressive senators. In office since 2017, Jerome Powell had been chosen by Donald Trump, while the tradition wanted, since the presidency of Ronald Reagan, that the president does not change the director of the Fed. For this second term, Powell will aim to fight inflation. Our article here.
In December, Hermès and Richemont join the Euro Stoxx 50
On December 1, Hermès and Richemont announced their inclusion in the Euro STOXX 50, the main stock market index of the euro zone which includes 50 stocks from 8 European countries, including France and Germany. They join French groups LVMH and L’Oréal, confirming the influence of luxury in the European economy. The entry is officially scheduled for December 20, 2021. Our article here.
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