Bloomberg Intelligence BI Weekend: Luxury, Railroad, and Machinery 2026 Outlook
Jan 2, 2026
Deborah Aitken, a luxury goods analyst, shares insights on the booming luxury market fueled by Chinese consumer trends and the investment potential of high-end handbags. John Butler, a senior telecom analyst, discusses the growth of broadband and innovative satellite partnerships. Christopher Ciolino, a machinery expert, predicts earnings growth driven by power generation and construction demand. Bill Keenan, writer and producer, shares his experiences adapting his Wall Street memoir into film, focusing on the absurdities of finance culture.
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Luxury Recovery Hinges On Volume Not Price
- Luxury recovery in 2026 depends on limited price increases and a shift to volume-led growth.
- Bloomberg Intelligence expects overall pricing pressure to ease to about 2–3% next year, making demand less intimidating.
Tariffs' Impact Will Likely Moderate
- Tariffs raised concerns but margins and cost savings mitigated the hit to EPS for top luxury brands.
- BI expects tariff-driven price pass-through to U.S. consumers to fall toward 2–3% in 2026.
China Travel Uptick Boosts Luxury Demand
- Chinese consumers appear more willing to travel to Europe now, signaling green shoots for luxury travel spending.
- BI expects travel and tariff normalization to help Chinese demand return to the U.S. by late 2026.