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What’s going on here?

Cartier’s owner Richemont clocked up some bumper results last quarter, reporting record-breaking figures on Friday.

What does this mean?

The luxury sector has been on a roll lately, with LVMH and Hermès each strutting their stuff – and now Richemont, owner of ultra-luxe brands like Cartier and Vacheron Constantin, has gone and joined the party too. The firm thinks China's economic rebound has been one key factor in that success: as restrictions relaxed in the world's second-biggest economy, Richemont's Asian jewelry and watch sales soared, offsetting a slight US slowdown last quarter. The result: a year of record-shattering revenue and profit that trounced expectations. As a cherry on top, the company announced a special dividend and a share buyback program too – sending shares up 6%, to a new all-time high.

Why should I care?

Zooming in: China’s chic customers.

Luxury companies might keep on reaping the rewards of China's reopening. See, while Chinese tourism is slowly picking up, big groups haven't returned in full force – partly due to pricey flights to Europe. And that matters: after all, China’s clothes horses can often bag better deals on their finery in Europe than at home, so Chinese tourism’s a major driver of global luxury sales. And with analysts expecting the country’s tourists to start returning en masse from the second half of this year, luxury might soon be blessed with yet another boost.

The bigger picture: Rich-mont’s richer suitors.

The luxury boom has left firms flush with cash, sparking whispers of potential dealmaking in the space. Richemont's brands have long been seen as takeover targets – with recent rumors hinting at renewed interest from titan LVMH – but the company’s insisting it's not for sale. One thing is certain, though: after a performance like this, any suitors will need some seriously deep pockets to impress Richemont.

What’s going on here?

Data out on Friday showed that the British economy grew last quarter, despite March being a royal pain.

What does this mean?

March turned out to be a tricky month for the British economy. Strikes across education, transport, and health sectors put a damper on output, and even the generally dependable appeal of shiny new number plates failed to rev up car sales. Still, it wasn’t all bad news: industrial production picked up some of the slack, partly offsetting a slump in the service sector – and January and February were far sunnier, with services, manufacturing, and construction all in the green. That meant the UK managed to scrape by with growth of 0.1% for the quarter as a whole, despite an unexpected 0.3% dropoff from February to March. That’s not quite a home run, but hey: it beats shrinking.

Why should I care?

Zooming in: Close call.

That quarterly performance outstripped the Bank of England’s predictions – a nice little surprise, especially after the authority recently scrapped its recession forecast for the year. See, the central bank’s now betting on modest growth of 0.25% for 2023, a much happier outlook than the shrinkage of 0.5% it previously expected. But remember, the quarter ended with a weak March – so despite improvements to supply chains, consumer confidence, and energy prices, the country’s still on shaky ground.

The bigger picture: Good omen.

The UK is lagging behind its pals, with its economy (0.5% smaller than in pre-pandemic days) sitting right at the bottom of the Group of Seven nations ever since Covid hit. And while almost no growth isn’t really much to celebrate, the nation’s recent performance could be a good sign for other countries: after all, if the truly hard-hit UK manages to sidestep a recession, then there’s probably hope for its less-troubled peers too.