The billionaire lost two places in the ranking of the greatest fortunes on the planet while the Paris Stock Exchange showed the biggest drop in the world this week.
Bernard Arnault may blame Emmanuel Macron. By announcing the dissolution of the National Assembly, the Head of State strained the markets which have since made France pay for its uncertain political future. Borrowing rates climbed this week, the spread with Germany reached 80 basis points (compared to less than 50 before the Europeans) and the Paris Stock Exchange ended with a further decline of 2.7% (more than 6% over the week).
The fall in the French benchmark index was the biggest in the world this week, with all 40 stocks falling.
LVMH, the leading capitalization of the Parisian market, is not spared. The stock of the global luxury giant returned 6.7% this week on the stock market, resulting in a drop of more than $9 billion in the assets of its boss Bernard Arnault.
According to Bloomberg, the French billionaire is now only the third richest person in the world with assets estimated at $204 billion. Elon Musk (207 billion) and Jeff Bezos (204 billion) passed him again at the end of this turbulent week.
Market excitement
An anecdotal decline but which symbolizes the state of feverishness of the markets vis-à-vis France following last Sunday’s decision. Having become the leading European stock market in 2023, Paris risks losing its crown in the coming weeks.
But it is above all the country’s ability to finance itself on the markets which is worrying, as France Tresor must borrow some 270 billion euros this year to finance its lifestyle.
“French government bonds are heading for their worst week in around 13 years, but worse is yet to come as yield spreads widen further and cast a pall of gloom over the euro and peripheral debt securities “, estimates Ven Ram, analyst at Bloomberg.
