Gucci, Balenciaga Struggle Amid Designer Shakeup and Ad Controversy
PARIS-A fall in sales at Gucci and consumer outrage over Balenciaga's portrayal of children in its ads led to a slowdown in revenue at the brands' owner.
French luxury conglomerate Kering SA said its biggest brand, Gucci, booked a 14% drop in comparable sales over a three-month period ending in December in part due to pandemic restrictions that were in place in China during the quarter. Kering reported a 4% sales drop in its "other brands" segment, which includes Balenciaga, over the same period.
Vice Media Gets $30 Million-Plus Lifeline From Fortress as Bills Pile Up
Vice Media has secured more than $30 million in debt financing from Fortress Investment Group, according to a person familiar with the matter, as the new-media company faces a financial crunch.
Vice, which is trying to sell itself, owes millions of dollars to vendors and advisers, some of whom haven't been paid for more than six months, according to people familiar with the matter. Some vendors have resorted to collections agencies to retrieve payments, some of the people said.
Banking Group Asks Treasury to Withdraw Ownership Database Proposal
The American Bankers Association was one of the biggest proponents of a new corporate ownership registry, saying it hoped the project would help cut regulatory costs for its members. But the industry group on Tuesday made an about-turn, attacking the U.S. Treasury Department over how it plans to manage a key part of the database.
The ABA in a letter said a proposal by the Treasury related to who will have access to the database was "fatally flawed" and should be withdrawn. The letter is a rebuke from a key supporter of the registry, which lawmakers hope will limit the use of anonymous shell companies. It comes as the Treasury bureau tasked with creating the database faces resource constraints, delays and a lawsuit.
January Retail Sales to Show Whether Consumer Spending Picked Up
A report on January U.S. retail sales will show consumers' enthusiasm for spending at stores, restaurants and online at the start of the year as job growth surged and high inflation cooled slightly.
Inflation, rising borrowing costs and uncertainty about the economy caused households to pull back on spending late last year. But the unexpectedly strong jobs report in January and still solid wage gains bode well for more recent consumer spending, economists said. Some of them think economic growth could be picking up.
Markets Come to Grips With the Fed on Interest Rates
Markets finally appear to be backing down in their long-running game of chicken with the Federal Reserve.
A bet by investors that slowing inflation would prod the central bank to begin cutting interest rates later this year drove a significant January rally, even as Fed officials insisted that it was too early to think about shifting policy.
U.K. Inflation Cools but Wage Increases Keep Central Bank on Alert
The U.K.'s annual rate of inflation fell for a third straight month in January and more sharply than expected, following a signal from the Bank of England that it may soon pause a series of rate rises that began at the end of 2021.
Consumer prices in the U.K. were 10.1% higher than a year earlier, a slower rate of inflation than the 10.5% recorded in December as transport prices cooled, the Office for National Statistics said Wednesday. That was a larger fall than the decline to 10.3% forecast by economists.
Oil Demand to be Driven by Asia This Year as China Reopens, IEA Says
The International Energy Agency raised its forecasts for oil demand this year to a record level, as China's reopening fueled a surge in air travel across Asia, while also adding to its supply forecast as Russian production remained surprisingly resilient to Western sanctions.
The Paris-based energy watchdog said in a monthly report that it expects oil demand to grow to 101.9 million barrels a day this year-a record level-propelled almost entirely by rising demand in Asia. The figure is 200,000 barrels a day more than the IEA forecast last month, which was also a record amount.
Emerging-Market Rally Runs Out of Steam
A blistering rally that lifted emerging-market stocks and bonds in recent months may be running out of steam, as concerns resurface about tighter U.S. monetary policy.
The strength of the U.S. economy continues to defy expectations, with data this month showing price pressures remain stubbornly high and the labor market is still strong. That has prompted investors to increase bets that U.S. rates will peak above 5% and stay there for longer, in turn testing demand for investments ranging from Chilean bonds to Thai stocks.
Chinese President Xi Jinping Pledges to Boost Consumption, Investment
Chinese President Xi Jinping has pledged to boost domestic consumption and investment to anchor economic expectations and improve business confidence, according to an article published Wednesday by the ruling Communist Party journal Qiushi.
The government should give priority to the recovery and expansion of consumption by unleashing the potential of the domestic market and increasing residents' income, especially low and middle-income groups, Xi said in a speech dated back in December during the country's annual key economic work conference.
China's Central Bank Keeps Key Policy Rates Unchanged
China's central bank kept its key policy rates unchanged on Wednesday, suggesting a hold on benchmark lending rates later this month.
The People's Bank of China injected 499 billion yuan ($73.09 billion) of liquidity into the banking system via its one-year medium-term lending facility at an interest rate of 2.75%. The MLF interest rate, which is used to price the nation's benchmark Loan Prime Rate, was the same as the previous operation.
Biden's Pick for IRS Chief to Face Questions About Agency's $80 Billion Expansion
WASHINGTON-Danny Werfel, President Biden's choice to run the Internal Revenue Service, will tell senators Wednesday that he is committed to focusing tax enforcement on high-income Americans, as lawmakers press him for details on how the agency plans to use the $80 billion Congress gave it last year.
Mr. Werfel's confirmation hearing is expected to focus less on his qualifications for the role-which include a stint as the acting IRS leader in 2013 and years as a consultant-and more on the new IRS funds from the Inflation Reduction Act.
Biden Reshapes Economic Team Ahead of Debt-Ceiling Fight, Re-Election Campaign
WASHINGTON-President Biden is remaking his economic team as his administration seeks to tamp down inflation, choosing officials who signal stability and continuity on the policy front ahead of his expected re-election campaign.
Mr. Biden named Federal Reserve Vice Chair Lael Brainard to serve as the director of the National Economic Council, turning to a veteran economic policy maker as the administration is preparing for contentious talks with Republicans over raising the federal debt ceiling, and as the U.S. economy has sought to emerge from high inflation, rising interest rates and slowing growth.
Mike Pence Plans to Fight Subpoena From Special Counsel in Jan. 6 Probe
WASHINGTON-Former Vice President Mike Pence is preparing to challenge a subpoena issued by the special prosecutor investigating former President Donald Trump's efforts to overturn the 2020 presidential election, kicking off a novel legal fight that could take months for courts to resolve.
Mr. Pence will fight the subpoena on the grounds that the Constitution's Speech or Debate Clause shields him from testifying, a person familiar with Mr. Pence's deliberations said. The Speech or Debate Clause generally protects members of Congress from being questioned in court about their legislative acts. In the U.S. constitutional system, the vice president is also the president of the Senate.
Pentagon's Unidentified-Object Office Is Underfunded, Senators Say
The Pentagon office set up to detect and identify mysterious objects, such as the three shot down by the U.S. jet fighters over the past week, was mistakenly underfunded, said Sen. Kirsten Gillibrand, the New York Democrat who pushed to create the office.
The Pentagon last year established the classified All-domain Anomaly Resolution Office, or AARO, from legislative language Ms. Gillibrand and Sen. Marco Rubio (R., Fla.) put in the National Defense Authorization Act for fiscal year 2022.
Suspected Iranian Weapons Seized by U.S. Navy May Go to Ukraine
The U.S. military is considering sending Ukraine thousands of seized weapons and more than a million rounds of ammunition once bound for Iran-backed fighters in Yemen, an unprecedented step that would help Kyiv battle Russian forces, U.S. and European officials said.
U.S. officials said they are looking at sending Ukraine more than 5,000 assault rifles, 1.6 million rounds of small arms ammunition, a small number of antitank missiles, and more than 7,000 proximity fuses seized in recent months off the Yemen coast from smugglers suspected of working for Iran.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Barrick Gold 4Q
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Constellation Softwr 1Q
goeasy 4Q
Keyera 4Q
Kinross Gold 4Q
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Economic Indicators (ET):
0815 Jan Housing Starts
0830 Dec New Motor Vehicle Sales
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0830 Dec Manufacturing Survey
Stocks to Watch:
First Quantum 4Q Net $117M; 4Q EPS 17c; 4Q Adj EPS 22c; 4Q Sales $1.83B
Freshii Obtains Final Order of the Court Approving Arrangement With Foodtastic; Completion of the Arrangement Is Expected to Occur on or About Feb 22
iA Financial 4Q Core EPS C$2.40
Toromont 4Q Rev C$1.15B; Raises Dividend to C$0.43
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00:01/UK: Jan Scottish Retail Sales Monitor
(MORE TO FOLLOW) Dow Jones Newswires
02-15-23 0636ET
