Economics
Protests Push Swatch Near Make-or-Break Point
Protesters gather outside the Legislative Council building during a march in Hong Kong on June 16.
Photographer: Giulia Marchi/BloombergThis article is for subscribers only.
In a key week for monetary policy, ECB President Mario Draghi took the market by surprise with dovish comments. The euro weakened, which is good news for exporters including luxury-goods makers, recently hurt by concerns over protests in Hong Kong.
Hong Kong has traditionally been a popular tourist destination for affluent Chinese consumers that are a major factor in luxury-goods sales growth. The former British colony is a historically important market for the industry, representing about 5% of overall sector sales, with above-average profitability, according to UBS analysts.