Remy Cointreau forecast a steeper sales drop and weaker profitability for its fiscal year than analysts expected, as European distillers grapple with mounting challenges in the U.S. and China. However, executives at the French luxury liquor company said Thursday that they are starting to see signs of stabilization in the U.S., even if the market recovery is expected to be slow. The company aims to start reintroducing targeted marketing investments to boost its performance in the U.S. and China, two major markets for the industry, and continue with its cost-cutting plans. “While the overall U.S. market remains under pressure, the closer analysis of our portfolio performance reveals encouraging signs of recovery, or at least stabilization,” Remy Cointreau Chief Executive Eric Vallat said in a call. The comments sent shares in Remy Cointreau 1.4% higher in European morning trade, recovering from earlier losses. The stock has nearly halved its value since the start of 2024. The spirits sector is going through a period of lower demand that resulted in an excess of inventory, particularly in the U.S. after a boom in beverage consumption during the pandemic. Against that challenging backdrop, European distillers are also facing risks from trade tariffs. For the year to March 2025, the maker of Remy Martin cognac anticipates a sales decline of between 15% and 18%. It had previously forecast a drop in the double-digit percentage, and analysts expected a 13% fall, according to a company-compiled poll of estimates.

The Swiss market, which very nearly slipped into the red around mid afternoon on Thursday, after a good spell in positive territory, recovered well to end the day's session on a firm note. The benchmark SMI closed up 65.79 points or 0.57% at 11,709.80, after having climbed to 11,723.90 around mid morning. Julius Baer rallied about 2.1%. Logitech International and UBS Group closed up 1.54% and 1.48%, respectively. VAT Group, Swiss Re, Partners Group and ABB gained 0.9 to 1.1%. Sika, Swisscom, Novartis, Lonza Group, Zurich Insurance Group, Roche, Swiss Life Holding and Lindt & Spruengli gained 0.4 to 0.75%. Swatch Group and Sonova both lost nearly 1%. Sandoz Group ended down 0.76% and Richemont closed down 0.57%.

Europe
European stocks closed higher on Thursday although the volume of business remained thin in most of the markets in the region due to Thanksgiving holiday in the U.S. Investors digested Germany's consumer price inflation data and tracked corporate news for direction. The pan European Stoxx 600 gained 0.46%. The U.K.'s FTSE 100 edged up 0.08%, Germany's DAX climbed 0.85% and France's CAC 40 cloed up 0.51%, while Switzerland's SMI ended higher by 0.57%. Among other markets in Europe, Austria, Denmark, Finland, Ireland, Netherlands, Portugal, Russia, Spain and Sweden closed higher. Belgium and Iceland edged up marginally, while Greece, Norway, Poland and Turkiye ended flat. In the UK market, Spirax Group climbed about 3.75%. Sainsbury (J), Admiral Group, EasyJet, Entain, Barclays Group and Tesco gained 2 to 3.1%. IAG gained more than 2% as the insurance giant agreed to buy 90% of Royal Automobile Club of Queensland's (RACQ's) existing insurance underwriting business. Direct Line Insurance soared more than 40% after rejecting Aviva's massive takeover bid. SSE, Centrica, JD Sports Fashion, Natwest Group, RightMove, Weir Group, Auto Trader Group, Pershing Square Holdings, Rolls Royce Holdings and Legal & General advanced 1 to 2%. Vistry Group, Land Securities, Imperial Brands, Aviva, Frasers Group, Berkeley Group Holdings, Reckitt Benckiser, Persimmon, Endeavour Mining and Croda International closed notably lower. In the German market, Siemens Energy gained about 3.1%, while RWE, Daimler Truck Holding and Deutsche Bank gained 2 to 2.7%. HeidelbergCement moved higher after it struck a deal to buy U.S. company Giant Cement Holding and its subsidiaries for $600 million. E.ON, Commerzbank, Bayer, Siemens and Sartorius also closed with strong gains. Volkswagen gained marginally after the German car giant said that it would sell its factory and test track in Xinjiang for 'economic reasons.' Fresenius Medical Care ended down nearly 2.5%. Qiagen, Merck, Puma and Beiersdorf also closed weak. In the French market, Airbus gained more than 4%. Teleperformance, Edenred, Accor, Veolia, ArcelorMittal, Thales, Vinci, Societe Generale, Stellantis, Engie, Renault and BNP Paribas closed up 1 to 3%. Vivendi, L'Oreal, Essilor, Kering and LVMH ended with sharp to moderate losses. On the economic front, Germany's consumer price inflation increased further in November to the highest level in four months, provisional data from Destatis showed.

United States
The session was quiet yesterday as Wall Street closed for Thanksgiving.

Asia
The picture on the East Asian stock markets and in Sydney on Friday is the same as on previous days. While the Chinese stock markets are trending in one direction, elsewhere they are moving in the opposite direction. This time, as on Wednesday, prices in Hong Kong (+0.7 per cent) and Shanghai (+1.6 per cent) rose more strongly, while Tokyo (-0.3 per cent to 38,220 points) and especially Seoul (-1.5 per cent) fell. Sydney lost 0.1 per cent. There was a lack of data from the USA on the global Black Friday, with business on Wall Street closed the previous day due to Thanksgiving. In Tokyo, the yen continued to appreciate after a brief interruption. The dollar now costs just under 150 yen, compared with levels of around 155 a week ago. The main reason for this is the expectation that the Japanese central bank will probably raise interest rates further at its December meeting, while a rate cut is expected in the USA.

Bonds
The U.S. bond market was closed yesterday. The yield on the 10-year German Bund fell to 2.13%, while the yield on the French OAT fell to 2.95%.

Analysis
Deutsche Bank lowers Givaudan to CHF 3,950 (4,300) – Hold
Deutsche Bank lowers DSM-Firmenich to EUR 135 (138) – Buy
Barclays starts Gea with Overweight/51 EUR – Trader

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