Moody's has a new move!
The latest news shows that Moody's, an internationally renowned rating agency, has downgraded Israel's sovereign credit rating from A1 to A2, with a negative outlook, which means that the credit rating may continue to decline. This is the first time in the country's history that Israel's sovereign credit rating has been downgraded to A2, according to Israel**.
In this regard, on the evening of the 9th local time, Israeli Prime Minister Benjamin Netanyahu responded that Israel's economy is stable, and the downgrade has nothing to do with the economy, entirely because the country is in a state of war.
At the same time, the French luxury giant Hermès has also swiped the screen. Hermes has just announced that it will go to the global super 220,000 employees will receive 4,000 euros (about 3.) each10,000 yuan). In addition, Hermès said that the price of its products will increase by at least 8% this year.
Moody's downgraded Israel's credit rating
On February 9, local time, Moody's Investors Service ("Moody's"), an international rating agency, announced on its official website that it would downgrade Israel's sovereign credit rating from A1 to A2, and at the same time adjust its credit outlook to negative, which means that the rating may be further downgraded. Moody's warned in October that Israel's sovereign credit rating could be downgraded given the severity of the new Israeli-Palestinian conflict.
This is the first time in the country's history that Israel's sovereign credit rating has been downgraded to A2, according to Israel's **9** channel. Since Israel was included in the rankings in 1995, its credit rating has never been downgraded.
Moody's said in a statement that the parties to the conflict have not yet reached a long-term ceasefire agreement or a long-term plan for the full restoration and strengthening of Israel's security. A weakening security environment will expose Israel to higher social risks, and the performance of Israel's executive and legislature will be weaker than Moody's expected. Israel's public finances are continuing to deteriorate, and the downward trend in the public debt ratio has reversed, the statement said. Moody's expects Israel's future debt burden to be much higher than it was before the outbreak of the new Israeli-Palestinian conflict. For the foreseeable future, even if the intensity of fighting in the Gaza Strip is reduced or a ceasefire is achieved, Israel's political risks are likely to continue to rise. ”
Moody's also noted that the risk of an escalation of the conflict between Israel and Allah in Lebanon remains, which will expose Israel to problems such as damage to infrastructure, reconvening of reservists, and delaying the return of evacuees to Israel's northern border, and the negative outlook suggests that the Israeli economy still faces further downside risks.
Regarding Moody's decision to downgrade Israel's credit rating, Israeli Prime Minister Netanyahu responded on the evening of the 9th that Moody's measures do not reflect the state of Israel's economy, Israel's economy is stable, and the downgrade has nothing to do with the economy, entirely because the country is in a state of war. Netanyahu claimed that once Israel "wins the war," its credit rating will rise.
According to Bloomberg, the nearly four-month conflict has left Israel's public finances in a deep deficit, and the financial costs of the conflict have forced Israel to rely more on debt to meet its military needs. The Bank of Israel estimates that the cost of the conflict will be around NIS 255 billion from 2023 to 2025, or 13% of Israel's GDP in 2024**. Israel's revised 2024 budget also sets a deficit target of 6 percent of GDP6%, much higher than the 25%。According to a Bloomberg analysis, Israel's economic outlook largely depends on whether the conflict can be de-escalated.
However, there do not seem to be any signs of easing the conflict. On February 9, local time, Israeli Prime Minister Benjamin Netanyahu asked the Israeli defense forces and security services to develop a plan for a ground operation in Rafah, a city in the southern Gaza Strip. The Israeli Prime Minister's Office issued a statement saying that the goal of eliminating Hamas could not be achieved without the annihilation of four Hamas battalions in Rafah. At the same time, the evacuation of residents from the "war zone" is required before the launch of an intensive military operation in Rafah. The city of Rafah is the southernmost city in the Gaza Strip and shares a border with Egypt. More than 1 million residents of the northern Gaza Strip have taken refuge here. The United Nations warns that such an offensive could lead to a humanitarian catastrophe that would have a ripple effect throughout the region.
On 7 October last year, a new round of Palestinian-Israeli conflict broke out. As of now, Israeli military operations in the Gaza Strip have caused more than 2790,000 people died, about 670,000 people were injured. According to Israeli sources, more than 1,400 Israelis have died in the clashes.
Hermes: The price will increase by at least 8% this year
On February 9, local time, luxury giant Hermes released its financial report, which showed that in 2023, Hermes' sales revenue will be 1342.7 billion euros, up 21 percent in constant currency terms; Net profit reached 43100 million euros, an increase of 28 percent at constant exchange rates. Benefiting from strong sales growth and the favorable impact of currency hedging, the annual recurring operating margin reached an all-time high of 42.1%, up from 40. in 20225%。
Spurred by the report, Hermès' share price was in Paris on the same day***480% to close at 217450 euro shares, with a market capitalization of 227.3 billion euros.
Thanks to the strong growth, Hermès announced that it will award a bonus of 4,000 euros to each of its more than 22,000 employees worldwide. In addition, Hermes said that in 2024, it will increase the price of its products across the board, with an increase of 8%-9%.
In terms of products, in 2023, Hermès achieved double-digit sales growth in almost all sub-categories. On a constant currency basis, the Leather Goods & Harness segment achieved sales of 554.7 billion euros, up 167%；The garment and accessories segment earned 387.9 billion euros, up 282%；The Silk and Textiles segment earns 93.2 billion euros, up 156%；The perfume and cosmetics segment earns 49.2 billion euros, up 117%；Other segments, including Jewellery and Home Goods, contributed 165.3 billion euros, up 258%。
The Asia-Pacific region (excluding Japan), which includes China, is Hermès' largest market. During the reporting period, the Asia-Pacific region achieved revenue of 62At 7.3 billion euros, sales increased by 19.5 billion euros in constant currency terms1%, accounting for 47% of total sales, down one percentage point from 2022. While no further financial details were disclosed, Hermès said sales increased significantly in all countries in the region. In China, Hermès will open new stores in Tianjin and Chengdu in July and October 2023, respectively, and plans to open a new store in Shenzhen in 2024. "We remain confident in the Chinese market. Said Axel Dumas, CEO of Hermès.
According to the surging news, the rapid growth of performance has not made Hermes give up price increases. In the earnings report** meeting, Hermes said that in 2024, Hermes will increase the price of its products across the board, with an increase of 8%-9%, compared with about 7% last year. "This is to cover 6% of our production costs. Hermès CEO Axel Dumas explained that the price increase partially covers additional production costs and negative currency effects, rather than raising profits through price increases.
Editor-in-charge: Tactical Heng.
Proofreading: Wang Chaoquan.