While hopeful about the future for France following Macron’s election victory and “optimistic” about the longer-term future, luxury tycoon Bernard Arnault warned that business is in a “very strange period” due to low and negative interest rates and “companies like LVMH are paid to borrow money, which is dangerous.”
A financial crisis could be just around the corner, according to the chief executive of LVMH, who has described the global economic outlook as “scary”.
“For the economic climate, the present situation is…mid-term scary,” Bernard Arnault told CNBC Thursday.
“I don’t think we will be able to globally avoid a crisis when I see the interest rates so low, when I see the amounts of money flowing into the world, when I see the stock prices which are much too high, I think a bubble is building and this bubble, one day, will explode.”
Additionally Arnault spoke to Bloomberg TV interview on sidelines of Vivatech fair in Paris.
Arnault said that experience has taught him to expect a financial crisis roughly every 10 years…
“There has not been a big crisis for almost ten years now and since I’ve had a business I have seen crises more than every ten years, so be careful.”
“There’s a lot of money in the market. Bubbles are building up and at some point they’ll explode.”
Longer term, however, Arnault said he was “optimistic”, pointing to advances in technology and innovation, which he said would stimulate the economy.