It's a 'scary' time with a global crisis on the way, LVMH CEO says

It's a 'scary' time with a global crisis on the way, LVMH CEO says
French luxury group LVMH Chairman and Chief Executive Officer Bernard Arnault presents the 2016 full year results at the LVMH headquarters in Paris, on January 26, 2017.
PHOTO: AFP

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."

Arnault, who is responsible for the world's largest luxury goods company, couldn't say whether the crash would be imminent or within the next few years, but he insisted that almost a decade on from the global financial crisis of 2008, one was due.

"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."

Longer term, however, Arnault said he was "optimistic", pointing to advances in technology and innovation, which he said would stimulate the economy.

 

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