Connect with us

News

Gatemore Calls for Watches of Switzerland to Move US Listing Amid Market Concerns

Published

on

Investment firm Gatemore, which recently acquired 1.9 million shares in Watches of Switzerland, has raised concerns over the luxury retailer’s stock valuation. The firm claims that the company’s share price is “significantly dislocated” from its intrinsic value, largely due to misconceptions about its exposure to a slowdown in the luxury goods market.

Gatemore advocates for the relocation of Watches of Switzerland’s primary listing from London to the United States, arguing that such a move could lead to higher valuations that better reflect the company’s actual worth. U.S. markets are perceived as offering more favorable conditions for luxury brands, often resulting in elevated valuations compared to those in London.

Following Gatemore’s announcement, shares in Watches of Switzerland saw an uptick of over 2% on Wednesday morning. Liad Meidar, Gatemore’s managing partner, underscored the company’s robust fundamentals and effective management team, while expressing concern about the “broader malaise in UK markets.” This trend has prompted several London-listed companies to explore the possibility of shifting their listings to the U.S. in search of more advantageous market conditions.

Challenges and Declining Share Value

Watches of Switzerland has encountered significant hurdles this year, with its share price plummeting by more than a third since January. Earlier in 2023, the company faced a £516 million drop in market value after issuing a warning regarding a slowdown in luxury demand, as consumers redirected spending towards fashion and travel amidst the ongoing cost-of-living crisis.

Despite these setbacks, Gatemore remains optimistic about Watches of Switzerland’s prospects, particularly in the U.S. market, which continues to show resilience in luxury spending. The activist investor pointed to recent Swiss watch export data that indicates ongoing strength in both U.S. and UK markets, suggesting that Watches of Switzerland has not been significantly affected by the overall slowdown in luxury demand.

Expansion in the U.S. Market

Watches of Switzerland, known for its offerings of luxury jewelry from Cartier and high-end watches from Audemars Piguet, has been gradually increasing its presence in the U.S. market. Gatemore believes the company is positioned to capitalize on further growth in what they describe as a “massive and underpenetrated U.S. market.”

This call for a shift in listing comes as the UK government faces criticism for its decision to eliminate tax-free shopping for overseas visitors, raising concerns about a potential decline in tourist spending in the UK. Brian Duffy, CEO of Watches of Switzerland, has been a vocal opponent of this policy. Earlier this week, he joined other luxury business leaders in signing a letter to Chancellor Rachel Reeves, urging the government to reconsider the tax-free shopping decision.

Duffy stated, “We are calling for a fresh, objective Government assessment of this important subject as a matter of urgency.” As Gatemore and Watches of Switzerland navigate these challenges, the focus remains on adapting to the evolving luxury market landscape.

News

Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

Published

on

By

In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

Continue Reading

News

Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

Published

on

By

The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

Continue Reading

News

UK Government Reports Lower-Than-Expected Budget Surplus in January

Published

on

By

The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

Continue Reading

Trending