The only reason that sheds light on this is the current European crisis. Burberry even though making great inroads into China, is still very much a European brand and any bad happenings in Europe will definitely have a spillover for any luxury brands. Hence I believe the investors are more than concerned about the European affairs are being run and this give the investors a run for their money. Already Greece is said to be in tantrums as it is yet to pass the austerity measures that will be required for it to receive the next tranche of the EU Bailout. These tranches are important as they will allow the country to make the debt servicing payments that are due by the 15th of December. However it seems that the protests and the people on the streets spell otherwise. Moreover a government change has already been affected shedding light on how bad the situation really is. The Greek government is already contemplating layoffs and has increased the retirement age and this is not going down well with people who have taken to the streets (Haan 2003, 165).
Not only is Greece is in trouble but there are other countries in Europe as well that are going through a similar mess. Countries such as Britain itself, Spain, Italy and Portugal are all suffering through mounting debts and are teetering on default (Koch 2011, 215). The latest country that has come in the spot light is Italy which has also seen a government change. Moreover, Spain and Portugal are both being closely watched. However It is Italy that is important as of now as it is a relatively large economy than other countries and is in fact one of the top ten economies of the world .