De Chinese centrale bank gaat de yuan afwaarderen. De devaluatie moet de export van ‘s werelds op een na grootste economie aanjagen. Maar Europese bedrijven, vooral als ze luxe goederen produceren, zijn de dupe.
China devalued its currency by 1.9% against the dollar on Tuesday. The move had been expected by many analysts, but it’s the largest single shift that Beijing has ever approved, and could signal a big shift in Chinese economic policy.
Some big European companies, especially those exporting luxury goods, are getting hit hard.
A devaluation typically boosts exports and domestic production for the country that’s devaluing. But it’s a double-edged sword. For companies that are providing China with its imports, it’s suddenly more expensive. For a Chinese person with a Yuan income it just got 1.9% more expensive to buy a product denominated in dollars.
Some European companies are getting seriously whacked by the change. Though Tuesday’s move not too large, if it signals a new desire by the Peoples’ Bank of China (PBoC) to weaken the Yuan for a longer period of time, European luxury exporters and car companies will suffer.
German car companies BMW and Daimler, France’s LVMH and Italy’s Salvatore Ferragamo are now all down by between 4% and 6%, as of 3:15 p.m. London time (10:15 a.m. ET).
Europe’s more expensive car manufacturers have found an increasing demand from China’s newly wealthy elite, with a huge market developing. The country overtook the United States to become BMW’s biggest single market last year
“Rest of Asia,” the region including China as the primary market, is now LVMH’s biggest for revenue, making up nearly a third of the company’s sales.