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Breakingviews: Inditex bullish on Southern Europe

Wednesday, March 19, 2014 - 02:59

Mar. 19 - Inditex, the owner of Spanish clothing giant Zara, is looking bullish on Southern Europe, where it’s quietly grooming a cut-price brand.

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Intake says jumping 3% today breaking he says the rally may have found it to got. Joining me now -- Clinton web. Clinton this stock is is fascinating at times -- quite a jump today considering it's still down 11% this year. And then breaking he says we could have bought such conflicts and white. Yes well in the -- incredible success story rarely gets them made it so you know one of the richest people in the world it's one of the biggest companies in Spain this grand. Much much -- than rivals like takes them down. I'm -- I guess the argument is that there's still a lot. More can do in the kind of global scale of fashion and still. Maybe has one son of 2% of the market was worth two trillion dollars. There has to live it's incredible success by being very apps on in the way it makes Claes and adapt to trends Boston doesn't. -- Steve very much advertising and it keeps production very placed where it sells. The clothes. And I guess the feeling here is that we've had a sort of series of things that didn't go quite right laughs yes they spent. A lot of money professional schools. They have some sort of nasty swings in currencies which affects some tape and some of these things as they style to wash Aaron. Will become less important and we will see things like this incredible opportunity and on line whether -- being a rather late developing. -- itself to feed through. What could be at risk but they've expanded to response to seeing because they're expanding aggressively and rush -- China and Brazil as well. There is something of their risk yes when you made into a kind of thousands and thousands of territories you've got to make sure that you run. These as well as he -- you I -- operations but they forgot that is still. In some ways -- European business say roughly a fifth. The business is still kind of Spain and the facts Southern Europe is -- recovering so having that kind of control on the -- barrier becomes quite useful thing. Yes and -- it's been very domestic market recovery is on imagine launch an Asian markets continue to grow they could be. A good story all around them. Yes and -- I mean one way we would think back to evaluation tennis for example is that over the last couple of years they have traded that shares have traded. The significant premium to wage and then what's popular best comparison because people think of that Foster growing and passed around business and I about. Premiums over Vioxx this year saying we would say maybe not exist come back and if that happens then we -- stock. Gave back towards where it was that is here which is nearly a 120 or is frozen to a 105 for several worlds yes that might. -- destiny that that. Clinton web that talking about and detects and breaking visas view today on why the shares could have found -- to rise I'm matching long. This is wedges.

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Breakingviews: Inditex bullish on Southern Europe

Wednesday, March 19, 2014 - 02:59