Business & Finance
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The crisis brought about by Covid-19 cost the Principality €900 million in profits for the first half of the year, the latest report from IMSEE has revealed.
The Monegasque Institute for Statistics and Economic Studies (IMSEE) unveiled the Principality’s Economic Bulletin to the press on Monday 21st September.
Alongside Government Ministers Didier Gamerdinger and Jean Castellini, Director of IMSEE Sophie Vincent discussed the exceptional nature of the April-May-June 2020 period.
According to Ms Vincent, in the first half of the year, the Principality’s turnover plunged 13% compared to the same period in 2019, losing more than €900 million.
“Only two sectors resisted the trend: Construction and Scientific and Technical Activities, and Administrative and Support services. On the other hand, the hotel and catering industry lost 60% of its turnover and there was also a very clear decline in wholesale trade, but also in retail trade,” she revealed, adding, “foreign trade fell back to the level of 2016-2017, recording -51% for purchases and -37% for sales.”
At the end of June 2020, there were 8,000 fewer jobs compared to June 2019 (- 13.8%) in the private sector, despite rebounds of +13% between May and June once confinement was lifted. The hotel and catering industry alone saw a jump of 74%.
Meanwhile, due to business support measures, the number of business closures was lower than in 2019, with 208 against 268.
Regarding employment, Minister of Social Affairs and Health Didier Gamerdinger said the aid benefits implemented by the government, such as the CTTR, “erected a protective shield for companies and their employees.”
However, he announced that five new social claims were underway in the Principality, in addition to the existing 20, concerning around 30 employees in the yachting sector.
He also confirmed that the State and its social partners were currently working on the concept of labor flexibility to further stem the effects of the crisis to come.
The Monaco Economic Board has met with a Quebec delegation for a conference highlighting the latest responsible construction trends being employed in the Principality.
A 1968 Lamborghini Miura P400 took top honours at the Artcurial Motorcars car auction at the Hôtel Hermitage this week, selling for €977,400 to a Monegasque collector.
Sellier Knightsbridge has announced the upcoming opening of a Monaco location, a first for the luxe pre-loved retailer outside of the UK.
The government is allowing shops and restaurants to expand their services on to terraces free of charge through the month of September to help boost summer trade.
Julius Baer Group, Switzerland’s third-largest wealth manager, has hired several private bankers from HSBC Holdings to bolster its Latin American business, according to three reliable sources.
The bankers are based in Monaco and Switzerland, said one of the sources, asking not to be identified. More may be hired in Monaco, one of Julius Baer’s European hubs serving Latin American clients, said another person. Officials at Julius Baer and HSBC declined to comment to Bloomberg.
Julius Baer has acquired businesses and hired bankers to compete with larger wealth managers such as UBS Group and Credit Suisse Group. The firm has signed more than 200 client relationship managers from Credit Suisse and other Swiss, Asian and British private banks this year, CEO Boris Collardi said last month.
Albert Henriques also joined Julius Baer from HSBC as chief executive officer in Monaco.
HSBC is in the process of divesting a portfolio of Latin American client assets in Switzerland to Banco Santander as the British lender restructures its private bank, people familiar with the matter said last month that the deal may include $4 billion to $6 billion of assets under management, according to the people close to the deal.