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Chancellor changes debt rules to release billions

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Chancellor changes debt rules to release billions

The government will change its self-imposed debt rules in order to free up billions for infrastructure spending, the chancellor has told the BBC.

Chancellor Rachel Reeves said that there will be a technical change to the way debt is measured which will allow it to fund extra investment.

She said this was being done “so that we can grow our economy and bring jobs and growth to Britain”.

However, Reeves’ first Budget next week is still expected to mean some cuts to public services.

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The government has committed to get debt falling as share of the economy in five years’ time.

The wider debt measure is expected to allow for up to £50bn more borrowing for investment, although not all of this is expected to be allocated at the Budget.

The chancellor signalled that she intends to reverse what she called “the path of decline” that she says she inherited from the Conservatives.

She suggested this would have seen a fall in government investment from 2.6% of the share of the economy last year to 1.7% by 2028-29 or £20bn a year in cash terms.

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“If we continued on that path, we’d miss out on other opportunities, and other countries would seize them” she said.

The Treasury had already signalled that a rule change was likely ahead of the Budget on 30 October.

The chancellor cited top economists as backing the move including Mark Carney and Andrew Haldane, as well as former Conservative Treasury minister Jim O’Neill.

She also referred to the words of a top International Monetary Fund (IMF) official overnight.

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The organisation’s first deputy managing director Gita Gopinath backed greater investment, speaking to the BBC: “I just want to emphasize again, that public investment is needed in the UK.

“If you compare the UK to G7 countries, investment has fallen short, and so that spending will have to take place alongside having the kind of rules that stabilizes debt over the next five years.”

It is understood the extra room for manoeuvre will not be able to be used for extra day-to-day spending or to reduce planned Budget tax rises.

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Sleep Your Way to Serenity At These Three Hotels Redefining Rest and Rejuvenation

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Photo by St. Regis Venice

In today’s fast-paced world, where stress and burnout are rampant, travelers are increasingly seeking escapes that prioritize rest and rejuvenation.  A new trend is emerging – sleep travel – where the focus is not just on sightseeing and adventure, but on deep relaxation and restorative slumber. Leading this movement are hotels like The St. Regis Venice, W Scottsdale, and Everline Resort & Spa, each offering unique experiences designed to enhance sleep quality and promote overall well-being.

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These havens of tranquility go beyond providing comfortable beds and quiet rooms. They curate holistic experiences that tap into the restorative power of sleep, incorporating spa treatments, wellness programs, and mindful amenities to help guests disconnect from the everyday and reconnect with themselves.

Photo by St. Regis Venice

The St. Regis Venice: Where Luxury Meets Rejuvenation

Imagine waking up in a palatial room overlooking the Grand Canal, the gentle lapping of water against gondolas lulling you into a state of serenity. This is the magic of The St. Regis Venice, a hotel steeped in history and elegance.  Beyond its opulent décor and breathtaking views, the hotel offers a sanctuary for those seeking deep relaxation: the renowned Valmont Spa.

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Photo by St. Regis Venice

Nestled within exquisite spa suites, the Valmont Spa is a haven of tranquility. Inspired by Swiss skincare traditions, it offers a range of treatments designed to rejuvenate and invigorate.  After a restful sleep in one of the hotel’s lavishly appointed rooms, guests can indulge in therapies that combat the effects of aging and boost energy levels.

A standout offering is the Energy Spa Ritual, a revitalizing treatment that combats fatigue and dullness by stimulating skin cell oxygenation. Perfect after a long journey or a day exploring Venice’s captivating streets, this ritual leaves guests feeling refreshed and ready to embrace the city’s beauty.

Photo by W Scottsdale

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W Scottsdale:  Energizing Escape with a Focus on Wellness

For those seeking a vibrant yet relaxing retreat, W Scottsdale offers a unique blend of energy and tranquility. The hotel’s AWAY Spa provides a stylish sanctuary where guests can de-stress and recharge.  With its focus on personalized treatments and innovative therapies, AWAY Spa caters to individual needs, ensuring a truly revitalizing experience.

Photo by W Scottsdale

Complementing the spa is the WET Deck, a chic oasis with stunning views and a lively atmosphere. Here, guests can unwind by the pool, soak up the Arizona sunshine, and enjoy refreshing cocktails.  The WET Deck provides the perfect balance of social interaction and peaceful relaxation, catering to different moods and preferences.

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W Scottsdale further enhances the sleep experience with thoughtful in-room amenities.  A Sleep and Recovery Kit, featuring calm sleep gummies and a hydrating electrolyte mix, promotes restful slumber. Luxurious bath products and the signature W bed, renowned for its comfort, further contribute to a truly restorative stay.

Photo by Everline Resort & Spa

Everline Resort & Spa: Nature’s Embrace in the Sierra Nevada

Nestled amidst the breathtaking scenery of Northern California’s Olympic Valley, Everline Resort & Spa is a multigenerational haven that embraces the healing power of nature. The resort’s spa offers a range of treatments inspired by the surrounding environment, designed to relax the mind, body, and soul.

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Soul to Sole Massage: This targeted massage focuses on areas prone to tension after travel, including the head, neck, shoulders, and feet. Incorporating aromatherapy and acupressure, it promotes relaxation and prepares the body for a restful sleep.

Lavender Dream Body Experience: Immerse yourself in the calming scent of lavender with this full-body treatment. An invigorating exfoliation is followed by a soothing massage with warm stones and lavender oil, leaving you feeling balanced and rejuvenated.

Ginger Renewal Body Experience: Experience the warming and invigorating properties of ginger in this revitalizing treatment. A full-body exfoliation, followed by a massage with ginger oil and warm stones, leaves you feeling refreshed and energized.

Everline Wellness Massage: This signature massage is tailored to your specific needs, using a combination of techniques to create a truly personalized and serene experience.

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Juniper Sensory Body Wrap: Awaken your senses with this uplifting treatment. A eucalyptus foot cleansing ritual and dry brushing are followed by a warm body wrap infused with the calming scent of neroli, leaving you feeling refreshed and revitalized.

Everline Resort & Spa provides the perfect setting to disconnect from the digital world and reconnect with nature.  With its focus on wellness and its tranquil surroundings, the resort allows guests to truly unwind and embrace the restorative power of sleep.

These hotels exemplify a growing trend in the travel industry: a shift towards prioritizing rest, rejuvenation, and overall well-being. By offering curated experiences that promote relaxation and enhance sleep quality, they cater to the needs of today’s travelers, who seek more than just sightseeing and adventure.

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Partner pay at top US law firms jumps to record $1.4mn

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Partners at big US law firms are taking home more money than ever, with average remuneration reaching $1.4mn, according to a leading survey.

Researchers at recruitment specialists Major, Lindsey & Africa, who surveyed top attorneys at the country’s leading 200 firms, found that partner pay had risen by 26 per cent over the past two years, outstripping the growth in basic pay for heads of S&P 500 companies.

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The boom in pay comes amid the early signs of a revival in mergers and acquisitions activity — including several so-called megadeals — and a sharp increase in litigation, which has given law firms the opportunity to drastically raise their rates in the US, UK and Europe.

“Law firm partners are continuing to reap the rewards of persistent high demand and increases in billing rates,” said Karen Andersen, a partner at MLA and a co-author of the survey, which received replies from 1,700 people. “Moving into 2025, especially with the Federal Reserve cutting interest rates, we expect these trends to continue.”

Alongside the growth in partner pay, MLA’s survey found that top male lawyers still earned almost 30 per cent more than their female counterparts on average, at almost $1.7mn.

The gap, while still large, had narrowed significantly from the 47 per cent reported in MLA’s survey four years ago. The study said the remaining discrepancy was driven in part by the fact that men “significantly outpace women in originations”, meaning they bring more business to their respective firms, and a difference in billing rates.

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The survey also found that partners in New York enjoyed the highest average annual remuneration, at about $2.3mn each. Partners at firms serving the private equity sector, such as Kirkland & Ellis and Paul Weiss, have been reported to earn as much as $20mn.

MLA also found that partners in Silicon Valley saw the largest percentage increases in pay, up by 49 per cent compared with 2022.

The findings come hot on the heels of a survey by PwC that found the top 10 UK law firms were charging clients almost 40 per cent more per hour than they were five years ago.

It found big firms charged an average of £449 per hour in 2024, compared with £321 in 2019, with double-digit growth in average rates across the whole of the top 100 UK firms.

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In the US, the average hourly billing rate in MLA’s survey was $1,114 this year, up 36 per cent from 2022, and more than 80 per cent higher than a decade ago.

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Aldi is selling cosy £8 bedding to stay warm all night without turning the heating on

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Aldi is selling cosy £8 bedding to stay warm all night without turning the heating on

ALDI is selling cosy bedding that’ll keep you warm all night without having to turn the heating on.

Summer duvets are being swapped with thicker sets to snuggle under – and for cheap.

The Kirkton House Teddy King Duvet Set includes a duvet cover as well as two pillow cases

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The Kirkton House Teddy King Duvet Set includes a duvet cover as well as two pillow casesCredit: Aldi
Kirkton House Teddy Pillowcases that are only a shocking £3.99 each

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Kirkton House Teddy Pillowcases that are only a shocking £3.99 eachCredit: Aldi
The Teddy Fitted Sheet will keep you warm all night

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The Teddy Fitted Sheet will keep you warm all nightCredit: Aldi

To start off your new bedding collection, the Teddy Fitted Sheet Double is the perfect place to start.

The soft fleece is perfect just in time for the winter months.

And you can choose from beige, green or grey – depending on what matches you room.

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You can grab the bottom sheet for only £7.99 or grab the king sized version for an extra £1.

To match, you’ll want to get your hands on the Kirkton House Teddy Pillowcases that are only a shocking £3.99 each.

These pillowcases are so soft you may struggle to get out of bed in the morning.

You can also get your hands on the Kirkton House Teddy King Duvet Set, which includes the duvet cover as well as two pillow cases.

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And, like the other collection, you can choose between beige, green or grey.

For this set, it will only set you back £16.99.

The supermarket giant are also selling a £1.99 gadget that can help to keep homes warm without putting the heating on.

25p Organising Hack Every Parent Needs!

Aldi is to stock a winter essential that could keep you from huddling by the radiator this season.

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It’s safe to say summer has come to an end, with temperatures dropping down to single digits and Christmas food popping up in supermarket.

This year, millions of Brits may feel hesitant about turning on their heating due to high energy bills.

But with temperatures set to fall the closer we get to Christmas, now is the best time to prepare for those long winter nights.

Fortunately, there are is an Aldi product dropping soon that might help you steer away from a hefty heating bill.

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The Workzone Adhesive Draught Excluder lines the gaps between your windows to prevent drauphts.

Heat often escapes through breaks in the window and can drastically change the temperature of a room.

The product description reads: “This accessory is great for keeping a room warm and keeping any chilling winds outside rather than in.”

By lining the window edges and blocking any temperature transfer, you’ll be less likely to whack those radiators on.

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The soft-adhesive sticks to glass and window frames, fitting gaps from 2-5mm.

If you’re conscious of keeping your rooms stylish, as well as cosy, the draupht excluders come in three sets of colours to match your interior – white, brown and black.

For £1.99 you get two 5m lengths of adhesive which is long enough to cover most windows.

The draught excluder is available in stores from October 20.

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How to save money when shopping

Sign up to the loyalty schemes of the brands that you regularly shop with.

Big names regularly offer discounts or special lower prices for members, as well as other perks.

Sales are when you can really bag a bargain.

Retailers often have promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on.

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Sign up to mailing lists and you’ll also be first to know about special offers. It can be worth following retailers on social media too.

When buying online, always search for money off codes or vouchers that you can use.

Aldi is selling $25 viral baking essential that comes in two colors and shoppers say they’re ‘buying all of them’

Vouchercodes.co.uk and myvouchercodes.co.uk are just two sites that round up promotions by retailer.

Scanner apps are useful to have on your phone. 

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Trolley.co.uk app has a scanner that you can use to compare the price of branded items when out shopping.

Bargain hunters can also use B&M’s scanner in the app to find discounts in-store before staff have marked them out.

And always check if you can get cashback before paying.

This in effect means you’ll get some of your money back or a discount on the item.

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5 ways to keep your house warm in winter

Property expert Joshua Houston shared his tips.

1. Curtains

“Windows are a common place for the outside cold to get into your home, this is because of small gaps that can let in air so always close your curtains as soon as it gets dark,” he said.

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This simple method gives you an extra layer of warmth as it can provide a kind of “insulation” between your window and curtain.

2. Rugs

“Your floor is another area of your home where heat can be lost and can make your home feel chilly,” he continued. “You might notice on cold days, that your floor is not nice to walk on due to it freezing your feet.

“Add rugs to areas that don’t already have a carpet, this provides a layer of insulation between your bare floor and the room above.”

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3. Check your insulation

Check your pipes, loft space, crawlspaces and underneath floorboards.

“Loose-fill insulation is very good for this, and is a more affordable type of insulation, with a big bag being able to be picked up for around £30,” Joshua explained.

4. Keep your internal doors closed

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“Household members often gather in one room in the evening, and this is usually either the kitchen or living room,” Joshua said.

“This means you only have to heat a small area of your home, and closing the doors keeps the heat in and the cold out.”

5. Block drafts 

Don’t forget to check cat flaps, chimneys and letterboxes, as they can let in cold air if they aren’t secure.

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Trudeau to slash Canada’s migrant numbers in bid to shore up his government

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Prime Minister Justin Trudeau has announced big cuts to Canada’s immigration programme in response to growing public backlash over the impact of migration on the cost of living and housing affordability.

On Thursday, Trudeau said the government would slash the number of new permanent residents it would approve over the next three years as it rolled back what was considered one of the world’s most progressive immigration schemes.

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“We are acting today because in the tumultuous times, as we emerged from the pandemic, between addressing labour needs and maintaining population growth, we didn’t get the balance quite right,” he said.

Last November, Canada’s target was 500,000 new permanent residents for 2025 and 2026. Immigration minister Marc Miller said the number of new permanent residents would be cut by 21 per cent to 395,000 next year and further reduced to 380,000 in 2026 and 365,000 in 2027.

“These are difficult choices,” Miller said. “This is still an ambitious plan but it is a reasonable plan.”

Miller said it was “unfair” to blame migrants for Canada’s problems but acknowledged that infrastructure had been unable to keep up with the “aggressive” numbers.

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An Abacus Data poll this month reported that 53 per cent of Canadians view immigration negatively.

However, the business community criticised the cuts, saying they would deter foreign investment.

“Immigration is a key driver of economic growth and our only source of workforce growth in the near future,” said Diana Palmerin-Velasco, a senior director at the Canadian Chamber of Commerce. “It is more imperative than ever in the context of the ageing of our population, low fertility rates and current wave of retirements.”

After nearly a decade of increased immigration since Trudeau’s Liberal government was first elected in 2015, Canada in September cut its temporary workers scheme, which had also been blamed for hitting housing affordability and rising youth unemployment.

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“Far too many corporations have chosen to abuse our temporary measures employed in exploiting foreign workers while refusing to hire Canadians for a fair wage,” Trudeau said on Thursday.

But the prime minister’s press conference was dominated by questions about his leadership after his popularity plummeted in recent months. Trudeau trails opposition Conservative party leader Pierre Poilievre by 13 points, according to the latest Nanos Research poll.

Poilievre said on Thursday that Canada’s immigration system was “broken”.

“Immigration was never a controversial topic in Canada and now, after nine years of Trudeau, it is,” he told reporters.

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Trudeau on Thursday insisted he would stay on as prime minister of his minority government and head of the Liberal party despite months of speculation over his leadership and an ultimatum this month from up to 40 Liberal MPs to step down.

“We continue to have great conversations about how we can be united to defeat Pierre Poilievre, but that will be with me as leader into the next election,” he said.

Pressure has grown on Trudeau to step down after the party lost two safe parliamentary seats in by-elections in June and September. In September, the New Democratic party also tore up a deal to support the Liberal minority government in confidence votes, raising the chance of a snap election well before the scheduled date of October 2025.

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Michelin-starred chef who appeared on MasterChef suddenly closes restaurant & cancels all future bookings after relaunch

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Michelin-starred chef who appeared on MasterChef suddenly closes restaurant & cancels all future bookings after relaunch

A MICHELIN-starred chef who previously appeared on MasterChef has suddenly closed his restaurant.

Peter Sanchez-Iglesias said the Bristol-based Italian restaurant, Casa Bristol, was closing until further notice.

Peter Sanchez-Iglesias appeared on last year's series of MasterChef

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Peter Sanchez-Iglesias appeared on last year’s series of MasterChefCredit: BBC
Casa is an Italian restaurant in Bristol

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Casa is an Italian restaurant in BristolCredit: Tripadvisor
It serves authentic pasta dishes

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It serves authentic pasta dishesCredit: Instagram

The West Country restaurateur, who also owns the Spanish-Mexican restaurant Decimo in London, guided contestants through a cooking challenge there in last year’s series of amateur MasterChef.

His third restaurant, Paco Tapas in Bristol, which lost its Michelin star this year.

A statement on the restaurant’s website said: “At this moment, we are closed for future bookings. If you’re looking to book a restaurant, please check out our sister restaurant, Paco Tapas.

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“All vouchers for Casa will be honoured at Paco Tapas.

“If you have any concerns or queries, please contact us at info@casamiarestaurant.co.uk.”

Customers rushed to Reddit to discuss why the mysterious closure had occurred.

One was keen to praise the restaurant’s legacy in the area.

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They wrote: “What you do have to say is that this restaurant has improved the quality of food served in restaurants across the city and many chefs have gone through this restaurant become top-tier chefs and gone on to open their own restaurants or projects in the city.

“If it is closed for good this restaurant has an excellent legacy.

Visit the restaurant serving tasty food at affordable prices just steps away from historic Premier League ground

“Only eaten here once, but one of the dishes was the best tortellini I have ever eaten.”

Another speculated that Peter was “bored on Bristol”, with a third echoing that he had perhaps “been more focused on London at Decimo”.

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Peter’s parents were also in the business – opening their restaurant Casamia in 1999.

Peter worked there from the age of 16 along with his brother Jonray, eventually leading it to its first Michelin star in 2009.

After Casamia’s closure in 2022, Peter decided to relaunch and rebrand the restaurant as Casa.

It was designed to have a more casual vibe, with authentic Italian comfort dishes like potato ravioli and mushroom ragu.

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But the joint never achieved the Michelin-star status of its predecessor.

Casa Bristol has been contacted by the Sun for comment.

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Kering and Hermès tell tale of luxury inequality

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Line chart of share prices (rebased) of Hermès and Kering, showing that luxury can offer some very different looks

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Wealth creation benefits everyone. But when those who have do better than those who do not, luxury stocks — you would think — should outperform. Investors, however, should be focusing on a different sort of inequality. In the context of slowing luxury spending globally, the sector’s companies are increasingly divided between the haves and the have-nots. 

Hermès and Kering are a case in point. In a sector that has so far posted an organic revenue decline of 2 per cent, according to Luca Solca at Bernstein, Hermès defied the slowdown with an 11.3 per cent rise in third-quarter sales. Kering’s were down 16 per cent, with the flagship Gucci brand down a quarter. Following multiple profit warnings, the group led by François-Henri Pinault now expects full-year operating profits of €2.5bn — down almost half compared with last year. Such diverging fortunes are reflected in stock market valuations, with Hermes trading at almost three times Kering’s forward price/earnings multiple. 

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In part, this highlights the two companies’ different customer bases. With handbags costing tens of thousands of pounds, Hermès caters to the really wealthy, rather than the merely very well-off. These tend to fare better in a slowdown. Gucci’s streetwear phase, meanwhile, attracted a whole host of younger and potentially less affluent customers. Gucci’s troubles may also reflect a more complex brand DNA. Known for its over-the-top designs, it is more prone to fashion risk when the zeitgeist turns against it. 

Line chart of share prices (rebased) of Hermès and Kering, showing that luxury can offer some very different looks

A reversal in Gucci’s fortunes looks a long way off. What the company calls “newness” — its latest launches — already accounts for 35 per cent of sales. Their impact has clearly not been sufficient to offset a major decline. To make matters worse, Kering’s second-largest brand, Yves Saint Laurent, is also spluttering. That leaves analysts pushing out their forecast recovery. Citigroup expects consensus operating profits to be cut by 10 per cent for 2024 and 2025. 

Prolonged poor operating performance comes alongside rising leverage. Kering has splashed out on several acquisitions of late, including 30 per cent of Valentino for €1.7bn, perfumer Creed for €3.5bn, and a series of snazzy shops. Net debt is expected to reach 2.5 times ebitda in 2025, according to UBS analyst Zuzanna Pusz. It may rise further should Kering acquire the 70 per cent of Valentino it does not already own, a commitment that was valued at €4bn in its annual report and that is governed by put and call options. The gulf between the top and bottom of the luxury sector is likely to rise further.

camilla.palladino@ft.com

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