Europe
2019.12.19 19:25 GMT+8

Europe Biz: Airbnb wins French ruling, Swatch shipments restricted

Updated 2019.12.20 00:21 GMT+8
Catherine Newman

Airbnb does not have to comply with French real estate rules 

US company Airbnb, an online marketplace for renting accommodation, has won a case in the Court of Justice of the European Union (CJEU), which ruled the company need not comply with French real estate laws. 

The case followed a complaint by French tourism association AHTOP. 

The judge hearing the case said: "France cannot require Airbnb to hold an estate agent's professional license as it did not notify the Commission of that requirement in accordance with the directive on electronic commerce."

Airbnb has also been taken to court in recent years in New York, Amsterdam, Berlin and Paris after being accused by several hoteliers and authorities of worsening housing shortage situations and forcing lower-income residents out of areas. 

 

Swiss competition body restricts Swatch shipments 

The Swiss competition watchdog on Thursday restricted Swatch Group's shipments of watch mechanisms to other companies in advance of a final decision in mid-2020 in a long-running dispute. 

The world's biggest watch maker supplies parts that power mechanical timepieces. If the company is unable to sell them, both Swatch and its customers, which includes Cartier maker Richemont, and independently owned Breitling, may face problems. 

Anti-trust agency WEKO said deliveries of watch movements to Swatch Group's existing customers would be suspended from 1 January 2020. Smaller and mid-sized companies of up 250 staff will be an exception until the watchdog reaches a final decision. 

 

Norwegian Air hoping to secure Boeing 737 MAX compensation

Norwegian Air's acting CEO said it hopes to secure compensation from Boeing by the year end over the grounding of the 737 MAX. The company is currently counting the cost of having 18 of the aircraft grounded since March. 

Geir Karlsen, acting CEO, said: "The dialogue (with Boeing) has been ongoing since summer and we hope to come to an understanding before the end of the year." 

The company currently has 92 of the aircraft on order.

"It's about compensation and also about a new schedule of plane deliveries, as Boeing obviously can't deliver in line with the contract ... it's a huge challenge for Boeing, and at the same time we also want the best possible outcome for ourselves," Karlsen said.

 

Queen's Speech includes plans for tougher accounting watchdog

The Queen's Speech announced the UK government's new legislative wish list, which included a bill to set up a powerful new accounting watchdog, following corporate collapses including Carillion, Patisserie Valerie and Thomas Cook. 

It was announced that ministers will also discuss whether the Reporting and Governance Authority, the new regulator, should have the capacity to launch criminal prosecutions against company directors who make misleading statements to financial markets. 

The speech announced bills to secure Brexit on 31 January, as well as improving public services such as the National Health Service. 

 

Greenland picks Ericsson for 5G

A spokeswoman for Tele Greenland, Greenland's telecoms operator, said on Thursday the island has decided to opt for Ericsson over China's Huawei for the rollout of its 5G network. 

Kristian Reinert Davidsen, Tele Greenland CEO, said to broadcaster KNR on Wednesday that he does not see Huawei as a potential supplier of 5G, saying that Ericsson is the right choice based on all parameters. 

 

It could be another slow morning for European markets as they tiptoe towards the end of the final trading week of the year. Investors are inevitably consolidating their positions, with volatility low, as financial markets slip into holiday mode and a pre-Christmas lull. That said, there are some interesting things going on that might prick their interest.

Thursday is a day of central bank rate decisions around the world, from the Bank of Japan to Indonesia. In Europe, the attention will be on the Swedish Riksbank, Norway's Norges Bank and then the Bank of England later on. Most are expected to be in "wait-and-see" mode.

"Indonesia is 50/50 in my opinion to cut again as the government and its national team step up efforts to crank up growth. Sweden's Riksbank has said it wishes to exit negative rates and will likely hike by 25 basis points to zero percent," said Jeffrey Halley at OANDA.

In the UK, retail sales numbers, the Bank of England meeting and the Queen's Speech could make things interesting. The BoE meeting comes at midday, a month after the monetary policy committee's surprising split decision over interest rates, when external members Michael Saunders and Jonathan Haskel voted for a cut.

"Coming in the wake of the all-important UK election, this meeting is going to be crucial in laying out the outlook for future policy at the BoE and how it will deal with Brexit. However, despite a significant amount of uncertainty being resolved over the past week, markets expect few changes to the current monetary policy stance," said Chris Beauchamp at IG.

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