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Morning Market Scoop 30 October 2018

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Barry Dumas
Moring-market-scoop

 

Dangers of E-cigarettes and Richmond Alibaba deal

  • The Food and Drug Administration (FDA) has just had a rude awakening to the fact that teen use of E-Cigarettes are becoming a problem. 
  • The luxury goods holding company Richemont and the Chinese internet giant Alibaba have struck up a strategic deal with each other.

I'm Barry "The Beef Dumas" and this is your morning market scoop!

Up in Smoke - Calibre:

 

 

 

 

 

Up in smoke?

What’s the scoop? FDA wakes up to E-Cigarettes

The Food and Drug Administration (FDA) has just had a rude awakening to the fact that teen use of E-Cigarettes are becoming a problem. "The disturbing and accelerating trajectory of use we're seeing in youth, and the resulting path to addiction, must end. It's simply not tolerable." - Dr Scott Gottlieb (FDA Commissioner)

  • The use of E-Cigarettes has risen more than 75% with high school students and to make matters worse the use by middle schoolers have increased by 50%.

The big picture The FDA has taken regulatory action against 5 of the major manufacturers and told them to provide procedures on how to control the sales to minors within 60 days or face criminal or civil actions. Around 1300 U.S based retailers were also warned for their roles in giving the youth access to e-cigarettes.

What does all this mean for me?

  • In a world where addiction is rife, be it an addiction to social media, drug or alcohol addiction or even an adrenalin addiction, our children’s health and wellbeing should be at the top of the priority list.

 

 

"Luxury sells"... online!

What’s the scoop? Oil Price

The luxury goods holding company Richemont and the Chinese internet giant Alibaba have struck up a strategic deal with each other.

  • The joint venture will launch two mobile apps for Net-A-Porter and Mr Porter which are brands of the newly Richemont acquired Yoox Net-A-Porter (YNAP). Alibaba will provide the luxury platform Tmall Luxury Pavilionwhich is dedicated to the world’s most luxurious brands.
  • In addition Alibaba will also provide for the technology infrastructure, marketing, payments, logistics, and other technical support to the joint venture.

The big picture with Johann Rupert at the helm it was only a matter of time before he unlocked the potential of the online luxury goods environment. Online sales are one of the industry’s fastest growing drivers and he has firmly placed YNAP at the centre of Richemont’s efforts to drive its e-commerce operations.

What does all this mean for me?

  • If you are a shareholder of Richemont then the current expansion into the luxury online sector should be positive for the future of the company and growth of the share price.

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