Europe's luxury retailers are getting battered by China's devaluation for the ... - Business Insider
That's largely down to the Peoples' Bank of China (PBoC), which announced a second devaluation of the yuan , adding to Tuesday's cut. Cutting the value of the yuan effectively makes Chinese yuan-denominated goods cheaper on international markets, and goods denominated in other countries more expensive in China. Europe's luxury products, from expensive cars to fashion brands have done well among China's growing elite, but the PBoC has effectively reduced their ability to buy goods from abroad. It's not the only car company doing badly, Daimler is down another 3. 69% after falling by more than 5% on Tuesday. And it's the same pattern for LVMH, the French holding company that owns Moet, Hennessy and Louis Vuitton, all brands that have captured China's growing class of wealthy spenders:. Source: uk.businessinsider.com
