Article content PARIS — French luxury giant Kering has appointed Sabato De Sarno, a senior fashion designer at Valentino, as creative director of its top brand Gucci, it said on Saturday. At Gucci, he will be tasked with reviving the fortunes of a brand that accounted for two-third of Kering’s profits in 2021 but has been losing momentum in recent years after stellar growth in 2015-19. Article content De Sarno began his career at Prada in 2005, moving to Dolce & Gabbana, before joining Valentino in 2009, where he held several positions before being appointed fashion director overseeing both men’s and women’s collections, working closely with the chief designer Pierpaolo Piccioli. Article content “I am proud to join a House with such an extraordinary history and heritage, that over the years has been able to welcome and cherish values I believe in. I am touched and excited to contribute my creative vision for the brand,” De Sarno said in Kering’s statement. He will present his debut Gucci runway collection at Milan Women’s Fashion Week in September 2023. Gucci’s CEO Marco Bizzarri said that having worked with a number of Italy’s most renowned luxury fashion houses, De Sarno “brings with him a vast and relevant experience”. Former creative director Alessandro Michele, known for his flamboyant and gender-fluid styles, left Gucci abruptly in November after seven years in the job, following tensions between with Kering’s top management, sources told Reuters. Alongside Bizzarri, he had overseen a period of soaring growth at Gucci between 2015 and 2019, with profits increasing nearly four-fold to just under 10 billion euros ($10.9 billion) and revenue almost trebling. But in recent quarters, Gucci had begun to lag rivals including Hermes and LVMH’s top brand Louis Vuitton, with its performance in the key Chinese market becoming a source of concern for investors amid COVID-19 lockdowns. ($1 = 0.9202 euros) (Reporting by Silvia Aloisi and Mrinmay Dey; Editing by Jason Neely and Alison Williams)
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Article content LISBON — Portugal’s state budget deficit shrank 58% to 3.59 billion euros in 2022, thanks to a sharp rise in tax revenues due to robust economic growth amid high inflation, the government said. Finance Minister Fernando Medina told Reuters in November that the economy was expected to grow at least 6.7% in 2022, buoyed by domestic demand and tourism, after growing 4.9% the previous year as it recovered from a pandemic-induced recession. Article content The finance ministry said in a statement late on Friday that the improvement in the budget deficit was “justified by the dynamism of the labor market and the economy and by the effect of inflation.” Article content It said that tax revenues increased by around 14% to 25.9 billion euros last year, boosted by a 19% increase in value added tax revenues to more than 21 billion euros. As VAT is a tax on the final price of products and services, its revenues automatically increase whenever there is inflation. Portuguese consumer prices rose 9.9% year on year in November, just off a three-decade high of 10.1% in the previous month. The finance ministry said total public revenue grew by 11% to more than 102 billion euros, while public spending increased by just 5.1% to 105.7 billion euros. Prime Minister Antonio Costa last month said that the public deficit could be below 1.5% of GDP in 2022, compared to the previous official forecast of 1.9% and 2021’s fiscal gap of 2.9%. (Reporting by Sergio Goncalves; Editing by Alison Williams)
Article content MUMBAI — Bankers on the $2.5 billion share sale of India’s Adani Enterprises are considering extending the sale or cutting the issue price after shares plunged on a U.S. short seller’s report, said three people familiar with the deal. Among the options the bankers are considering are to extend the Tuesday closing date for the subscription of the issue by four days, the sources told Reuters on Saturday. Article content Seven listed companies of the conglomerate controlled by one of the world’s richest men, Gautam Adani, have lost a combined $48 billion in market value since Hindenburg Research on Tuesday flagged concerns about debt levels and the use of tax havens. Article content The Adani Group has called the report baseless and said it was considering taking action against Hindenburg. Friday’s 20% fall in shares of group flagship Adani Enterprises dragged it 11% below the minimum offer price of the secondary sale. On first day of retail bidding on Friday, the issue was subscribed around 1%, raising concerns over whether it would be able to proceed. “Everyone was shocked. They did not expect such a poor response,” one source said. Adani Group did not immediately respond to a request for comment. Adani had set a floor price of 3,112 rupees ($38.22) a share and a cap of 3,276 rupees, but Adani Enterprises closed on Friday 2,761.45 rupees. The other option being considered is lowering the price, the sources said, with one saying it could be cut by as much as 10%. Article content A decision was expected on Monday, the sources said. “Revision in price band or time extension of public issue can technically be undertaken with a newspaper advertisement and issuing an addendum,” said Sumit Agrawal, managing partner at Regstreet Law Advisors and a former officer of the Indian capital markets regulator. At the end of the first day of the share sale, investors, mostly retail, had bid for around 470,160 of the 45.5 million shares on offer, according to Indian stock exchange data. The sale is being managed by Jefferies, India’s SBI Capital Markets, and ICICI Securities among others. They did not immediately respond to requests for comment. A fourth source said Adani management is also discussing the share sale internally to decide on next steps. The Hindenburg report questioned how the Adani Group used entities in offshore tax havens such as Mauritius and the Caribbean islands. It said key listed Adani companies had “substantial debt,” which put the entire group on a “precarious financial footing.” (Reporting by Sriram Mani and Jayshree P Upadhyay; Editing by Aditya Kalra and William Mallard)
Breadcrumb Trail Links PMN Business Author of the article: Reuters Fergal Smith Published Jan 27, 2023 • 1 minute read Join the conversation Article content Canada’s main stock index edged higher on Friday, led by technology and energy shares, as U.S. data showed inflation pressures easing ahead of interest rate decisions next week from some major central banks. The Toronto Stock Exchange’s S&P/TSX composite index ended up 13.98 points, or 0.1%, at 20,714.48, its highest closing level since June 8. Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 Thanks for signing up! A welcome email is on its way. If you don’t see it, please check your junk folder. The next issue of Financial Post Top Stories will soon be in your inbox. We encountered an issue signing you up. Please try again Article content For the week, the index was up 1%. That was its fourth straight weekly gain, its longest weekly winning streak since March. Wall Street also gained ground on Friday after U.S. data showed softening demand and cooling inflation. Advertisement 2 Story continues below This advertisement has not loaded yet, but your article continues below. Article content “Inflation data in general has been slowing for a number of months. I believe that’s going to continue as we go forward,” said Mike Archibald, a portfolio manager at AGF Investments. “Tighter monetary policy is having the impact that central banks around the world are hoping for.” On Wednesday, the Bank of Canada raised its key interest rate to 4.5% and signaled a pause in its tightening campaign. The U.S. Federal Reserve, the European Central Bank (ECB) and the Bank of England (BoE) are due to announce their policy decisions next week. The technology sector rose 1.5%, while energy was up 1.1% despite a pullback in oil. U.S. crude oil futures settled 1.6% lower at $79.68 a barrel, giving back some of its recent gains. Advertisement 3 Story continues below This advertisement has not loaded yet, but your article continues below. Article content France’s TotalEnergies will buy an extra stake in western Canada’s Fort Hills oil sands mine from Teck Resources , the companies said, leaving partner Suncor Energy with a smaller slice than planned in a project that has struggled with operational challenges. Suncor was flat on the day, while Teck Resources ended 0.8% lower. The materials group, which includes precious and base metals miners and fertilizer companies, was a drag. It lost 0.8% and utilities ended 0.7% lower. (Reporting by Fergal Smith; Additional reporting by Shashwat Chauhan in Bengaluru; Editing by Krishna Chandra Elur, Shinjini Ganguli and Josie Kao) Share this article in your social network Comments Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.