Gerald Fitzgerald Market Review May 13th

LAST WEEK IN 30 SECONDS...

Global equity markets finished the week on a negative note as trade tensions and Trump’s tweets put investors back in fear of trade wars escalating.
The animosity started on Sunday with a tweet from Donal Trump threatening that tariffs would increase from 10% to 25% on $200 billion worth of Chinese goods. While stocks moved up and down throughout the week as Friday approached no deal was reached despite discussions and the threat became a reality.

To end the week Steven Mnuchin, US Treasury Secretary, declared that talks throughout the week had been “constructive” bringing some positivity back to markets. However, the late rally on Friday did little to edge back the losses incurred earlier in the week.

THIS WEEK IN 30 SECONDS...

Market participants will be looking closely at how talks between the US and China progress and whether a breakthrough may be achievable.

Retail sales, consumer sentiment and manufacturing data is due for release in terms of US data this week and is likely to give indications on the growth in that region.

Elsewhere, Wednesday will be a key day for Eurozone data. The second estimate of Q1 GDP growth data is expected to remain unchanged but other indicators in focus will be first quarter employment numbers due on the same day and March’s industrial production numbers released on Tuesday.

FASHION FAUX PAS?

One of Europe’s leading luxury fashion companies, Kering, was in the spotlight last week around an investigation into tax evasion brought by the Italian tax authorities. The group skirted the reputational damage by agreeing to pay a record €1.3bn to settle the investigation in relation to taxes on revenues from star brand, Gucci, between 2011 and 2017. The company, responsible for brands such as YSL and Alexander McQueen and known for championing ESG policies wrapped up the issue swiftly trying not to overshadow the recent €100m pledge by boss Francois-Henri Pinault for the Notre Dame Cathedral reconstruction and avoiding further interest payments.