Daily Brief - 26 Apr 2024

Pinault faces challenges as shares fall and fortunes shrink

Francois-Henri Pinault, the CEO of Kering, which owns Gucci, expressed his frustration at the company’s recent poor performance in the stock market.

This has caused his family’s wealth to drop significantly. Despite tough competition from rivals like LVMH and Hermes, Pinault remains committed to making Kering's brands, including Gucci, more appealing and exclusive.

The company is recovering from some setbacks, including slow updates to Gucci’s designs post-pandemic. New leadership and focused efforts are in place to revive Gucci's image and boost Kering's share value.

Anglo American rejects BHP's $39 billion takeover proposal

Anglo American, a major London-listed miner, has turned down a $39 billion takeover offer from BHP Group, claiming it significantly undervalues the company.

BHP, the world's largest listed miner, had proposed a purchase price representing a 31% premium over Anglo's recent share price. However, Anglo criticized the proposal for its complexity and high execution risks.

Meanwhile, BHP's shares dropped by 4.6% following the news. The deal is under scrutiny from South African officials, with broader concerns about antitrust issues in key markets like China, Japan, and India. BHP has until May 22 to submit a binding offer, as the industry watches for any further developments.

Charles Schwab plans to introduce US ETFs to UK market

Charles Schwab is preparing to offer its US-domiciled exchange-traded funds (ETFs) in the UK, pending regulatory approvals under the new post-Brexit overseas funds regime. The UK's Financial Conduct Authority has been consulting on this regime, which allows non-UK funds to be sold to UK investors.

Schwab, lacking a European equivalent to its $343 billion ETF offerings, sees significant UK interest and considers the regulatory environment more favorable compared to the EU.

Current EU regulations hinder the sale of US ETFs in Europe due to specific documentation requirements that US funds do not meet. The potential UK expansion hinges on the equivalence status that the UK may grant to US funds.