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Dollar lower after soft consumer confidence as economic worries grow

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Reuters

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February 25, 2025

The dollar fell on Tuesday, extending declines after a disappointing reading on U.S. consumer confidence and a drop in U.S. yields weighed, while optimism for more spending in Germany helped lift the euro.

Reuters

The greenback extended declines after the Conference Board said its consumer confidence index dropped 7 points, its largest fall since August 2021, to 98.3, well short of the 102.5 estimate of economists polled by Reuters.

“The present situation index improved, but consumers are expecting dark skies ahead. Change can be scary, so it’s not surprising that confidence is falling,” said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.

The dollar index, which measures the greenback against a basket of currencies, fell 0.51% to 106.20, just off the two-month low of 106.12 hit on Monday, with the euro up 0.46% at $1.0514.

Concerns have started to emerge about U.S. economic growth, and worries about inflation are growing as tariff deadlines by Trump on Canada and Mexico are set for next week. Investors also fear the labor market impact from actions taken by Elon Musk’s Department of Government Efficiency.

“There’s going to be a lot of back and forth on Trump’s initiatives, and certainly markets in general long term, don’t like tariffs,” said Joseph Trevisani, senior analyst at FXStreet in New York.

“There’s definitely nervousness out there because some of these things could go the wrong way, certainly inflation hasn’t shown any sign of further retreat.”

Reflecting the worries, the yield on benchmark U.S. 10-year notes fell 10.6 basis points to 4.287% after hitting a 2-1/2 month low of 4.283%.
After initial signs Germany may be able to move quickly, election winner Friedrich Merz on Tuesday ruled out a rapid reform to Germany’s state borrowing limits known as the “debt brake” and said it was too soon to say whether the outgoing parliament could wave through a massive military spending boost.

The developments in Germany also prompted Deutsche Bank’s head of FX research, George Saravelos, to revise on Tuesday his bearish view on the euro against the dollar to neutral. He had previously been bearish, despite the rally in Treasuries, because “the outcome of the German election was not conducive to a quick easing of the German fiscal stance”.

“We see the balance of risks as evenly distributed over the next few months,” he added.

A move higher by the dollar late on Monday against the Mexican peso and Canadian dollar after U.S. President Donald Trump said tariffs on Mexico and Canada would proceed as scheduled and go into effect next week was largely unwound on Tuesday, suggesting investors still view the threat of duties as a negotiating tool by Trump.

U.S. Treasury Secretary Scott Bessent argued on Tuesday the U.S. economy is more fragile under the surface than economic metrics suggest, citing interest rate volatility, sticky inflation and job growth focused on the government sector, while also saying that tariffs are an important source of revenue.

The Mexican peso strengthened 0.32% versus the dollar at 20.414 although the Canadian dollar weakened 0.2% versus the greenback to C$1.43.

Analysts at Goldman Sachs noted, “the risk remains that we see a repeat of Trump’s brinkmanship from last month, with choppy price action in those currencies are we approach March 4.”

Against the Japanese yen, the dollar weakened 0.75% to 148.59 while Sterling strengthened 0.36% to $1.2669.

British Prime Minister Keir Starmer said he would increase annual defense spending to 2.5% of GDP by 2027 and target a 3% level, last seen just after the Cold War, a signal to Trump that Britain can help boost Europe’s security.

In cryptocurrencies, bitcoin plummeted 8.13% to $86,340.15 as tariffs and growth worries dented risk appetite.  

© Thomson Reuters 2025 All rights reserved.



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Milan Fashion week opens as luxury sector struggles

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AFP

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February 25, 2025

Milan Fashion Week kicked off Tuesday, but the flair and fanfare on catwalks will likely struggle to distract from a worrying slump in the luxury sector.

Gucci – Fall-Winter2025 – 2026 – Womenswear – Italie – Milan – ©Launchmetrics/spotlight

For six days, the northern Italian capital of fashion will showcase Autumn/Winter 2025-2026 women’s looks — while scrambling behind the scenes to react to macroeconomic headwinds cutting into sales.

Milan’s glamorous showcase for the latest fashion trends, which ends Sunday, comes during a difficult moment for Italian fashion, with estimates showing sales having fallen by 5 percent last year.

Italy’s woes are part of a global slump in the sector, driven by weakness in the key market of China, reduced appetite for high-priced goods, and widespread economic uncertainty.

Gucci — once the pride of fashion week but now the worst performer in Kering‘s portfolio — opened the fashion fest in Milan.

The French group earlier this month announced a jaw-dropping 23 percent drop in sales at Gucci, its flagship brand accounting for almost half of the revenue of the group, whose sales have not recovered despite an announced turnaround.

Just over two weeks before the show, Gucci announced the departure of its creative director, Sabato de Sarno — after just two years on the job.

It was up to the brand’s creative studio to sign off on an interim collection entitled “Continuum”, which drew on elements of the brand’s heritage, such as silhouettes from the 60s or minimalism from the 90s.

Fabrics were both classic and subversive, while the colour palette ranged from shades of green to gray, mauve and brown.

Instead of the traditional designer’s bow at the end of the show, dozens of people from the design studio came out to greet the audience.

“A brand is not a person, a brand is a story and it is the people who work there at all levels, that’s what we saw today,” Francesca Bellettini, deputy chief executive of Kering, told AFP.

Kering Chief Executive Francois-Henri Pinault tried to temper the fallout ahead of the show, telling analysts during its annual presentation this month that measures were being taken to “strengthen the health and desirability of our brands for the long term.”

“Gucci will come back. I have absolutely no doubt,” Pinault said.

The net profit of Kering — which also owns Saint Laurent and Bottega Veneta, the latter a bright spot in the portfolio — plunged 62 percent last year to 1.13 billion euros ($1.18 billion).

Consultants Bain & Company have estimated that only about a third of the world’s luxury brands experienced growth in 2024.

“Global luxury consumers, grappling with macroeconomic uncertainty and continued price elevation by brands, cut back slightly on discretionary items,” said Bain in a January report.

In Italy, the fashion sector, including eyewear, jewellery, and beauty, is expected to post turnover of just under 96 billion euros in 2024, a drop of 5.3 percent compared to 2023, according to forecasts by Italian Fashion Chamber.

The body’s president, Carlo Capasa, said earlier this month that the week of shows, buying, and networking demonstrated the sector’s willingness “to address the complexity of the moment the sector is facing.”

“Creativity, pragmatism, and flexibility,” will help the sector confront “such a challenging moment,” he told a press conference, with efforts needed to boost innovation and strengthen Italy’s supply chain.

He said the chamber would lobby the government for “support policies” for the sector.

The Italian leather and footwear sector is faring worse than fashion, with estimates from trade association Confindustria showing an anticipated revenue drop of 8.1 percent in 2024.

In Tuscany, the hub of Italy’s leather industry, nearly 100,000 people are estimated to be on furlough.

The Italian government has put aside about 110 million euros to boost the fashion sector this year and last.

But that hasn’t been able to pull some factories back from the brink of closure.

Swiss brand Bally – whose runway show is scheduled for Saturday — announced in December it would shut its production facility near Florence which employs 55 workers.

Negotiations with trade unions are ongoing to avert the closure.

Some brands are celebrating big anniversaries this year in Milan, notably Fendi‘s 100th birthday with a co-ed catwalk show under the interim creative direction of Silvia Venturini Fendi.

DSquared celebrates its 30th birthday while Kway celebrates 60 years since it was established in Paris in 1965.

Also on the calendar are Milan stalwarts Prada, Giorgio Armani, Versace, Max Mara, Ferragamo, and Dolce & Gabbana.

Bottega Veneta will be absent, having postponed its first show under new artistic director Louise Trotter to September, after previous director Matthieu Blazy left for Chanel in December.

Copyright © 2025 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.



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Saks Global is laying off about 5% of US corporate workers

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Bloomberg

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February 25, 2025

Saks Global is laying off around 5% of its US corporate workforce, according to a person familiar with the plan, as the department store integrates its recent acquisition Neiman Marcus.

Neiman Marcus

The layoffs will affect employees in departments including finance, legal and operations, according to an internal memo that Saks Global sent to employees Tuesday that was viewed by Bloomberg News. There will be no staff changes at Bergdorf Goodman, which is also owned by Saks Global. 

“There will be additional changes to our teams as we continue to integrate our business,” Saks Global Chief Executive Officer Marc Metrick wrote in the memo. Saks Global is the new entity that was created last year to house retail brands including Saks Fifth Avenue and Neiman Marcus. 

A Saks Global spokesperson said the company is “continuing the integration process following our recent acquisition of Neiman Marcus Group by consolidating functional leadership, clarifying key decision makers and beginning to simplify our organizational structure.” 

Saks Global might “lose more sales to peers Bloomingdale’s and Nordstrom this year as it repositions the newly merged units, shutters select stores and seeks to repay past-due vendor balances,” Bloomberg Intelligence analyst Mary Ross Gilbert wrote in a recent research note.

 



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As Dsquared2 celebrate 30 years of runway magic, Dean and Dan Caten speak

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February 26, 2025

On Tuesday night, Dean and Dan Caten celebrated their 30th anniversary show, the latest milestone by the most successful fashion brand ever created by foreigners in Milan. The twins recall the most magic moments.

The Caten brothers – Courtesy

The Canadian-born duo kicked off their runway life back in 1994. Already successful party promoters in Milan, they drew a large crowd to witness their fashion christening. Though, personally, I only made it to their second défilé or what they call their “Cottage Country Show”, staged on a balmy morning near the Navigli, Milan’s famous old canals.
 
Already one sensed that their kicky optimism and high-energy style had tapped into a yearning in Milan and elsewhere for designers who actually went out at night and understood what the young generation really wanted to wear.

The Catens have gone onto build a multi-million dollar business. And to dress everyone from Madonna in her iconic western video clip, “Don’t Tell Me”, to Beyoncé for her Super Bowl performance. The duo also has an  impressive range, all the way to dress the four-time English Premiership Champions, Manchester City. And a great HQ, a former electric energy headquarters converted into office, show-space, inn, gym and rooftop restaurant with swimming pool. They have become one of the city’s great fashion institutions without every losing the DNA of the Wild North. And famed for their ovations,  where they take their bow in matching outfits – whether disco dragoons, Klondike trappers or matinee idols.
 
 So, FashionNetwork.com caught up with the twin brothers to get their take on a remarkable run in the world of style.
 
Fashion Network: This year will be the 30th anniversary of your first show. What are your biggest memories of that collection and runway event?
 
Dean and Dan Caten: You know, each and every one of our shows are like children to us and even if they say you shouldn’t have favorites we actually have. Starting from the launch of the women’s collection with the 24/7 show for FW03. We had a pink plane and Naomi opening – that was a remarkable moment that will remain forever iconic. And FW17, the first time that we had a co-ed show. When we had Christina Aguilera on the runway, the FW11 show where we presented the Iconic Skate boots that is now known by everybody; having Tyson Beckford walk for us; the Charlie’s Angels for SS09, with the trio of supermodels Esther, Nadege and Fernanda…
 
We have a lot of history and memories, and it is amazing to look back and see what we have done over the years, what we have accomplished.

Dsquared2 – Fall-Winter2017 – 2018 – Menswear – Italie – Milan – ©Launchmetrics/spotlight

FN:  Sorry I missed that first show, but I believe I made number two. I have a great memory of a June show in an open space near Navigli, already bursting with your energy and optimism. What do you recall of that show?
D&D:  Of course, you mean the Cottage Country show. There was the perfect situation – it was early morning, and we remember that the light that day was incredible. The show was set in a warehouse, and we included all the elements of Canada and what happens there during summer. We had a cottage, we showed a contemporary and wearable collection and there was also the first glimpse of the first Dsquared2 women.
 
We remember it as fun and cheeky, a very Dsquared2 show. 
 
FN: When you first set off on the path to be designers, what goals did you set yourselves?
D&D: We strive to have fun and be ourselves – we want to be innovative, but at the same time stay true to ourselves and our vision. 
 
FN: Pretty well every big brand in Milan was launched, if not designed, by an Italian.  As one of the very few non-Italian designers to have built a real empire in Milan, how do your account for your success?
D&D: We’ve always said that we combine our Canadian heritage with an Italian twist and tailoring, and we think that’s been the real key to our success over the past thirty years. 
 
FN: You have never been afraid to stage big, bold statement shows. What is your starting point before each one?
D&D: We think of a moment or a story that inspires us that has cultural resonance, and we go from there. We really understand the strength of the catwalk as a stage and that is what distinguishes us. We love the show, and we are involved in it in all aspects and it will always be spectacular. We like to entertain ourselves and our guests. 
 
FN: Tell me about your three favorite all time shows?
D&D: Well, one of them certainly must be our first womenswear show with Naomi racing towards the pink jet – it’s forever an iconic moment for us and something we’ll always remember. Christina Aguilera closing our menswear Spring/Summer 2005 show in a leather mini-dress will forever be imprinted on our brains, as well as Brittany Murphy for Fall/Winter 2007 – we love the theatricality of that one. This one’s more recent, but we’re proud of Fall/Winter 2024 and the transformation machine. But really, we love all our shows because they all tell a particular story that we want to tell. 
 
FN: You’re famous for your joint look at each finale. Who gets to decide what to wear?
D&D: There’s never any conflict – we’re one mind split into two bodies; we think the same and instinctually gravitate towards our own unique choices without even having to communicate.
 
FN: As the youngest of four brothers and five sisters, I know familial ties can be complicated. What’s the secret to your creative brotherly bond?
D&D: Our bond has always been our strength – a woman once said that we shared the same soul, and we really think that’s true. We grew up together learning from each other and we have created the brand together. Dsquared2 is about two creative forces – all the creativity, the beauty and everything that we choose reflects our shared passion and vision.

Dsquared2 – Fall-Winter2024 – 2025 – Menswear – Italie – Milan – ©Launchmetrics/spotlight

FN: Define the DNA of Dsquared2?
D&D: All our collections are about being brave and taking risks – it’s cliché but we always want our audience to expect the unexpected. We like to combine contrasts, often putting two things that may be diametrically opposed together – masculine and feminine, casual and glamorous, maximalist and restrained… all styled in an almost bricolage manner with a nod to pop culture.
 
FN: When people look back on Dsquared2, its creativity and legacy, what way would you like them to remember your brand?
D&D: We’d like to be remembered for being brave, taking risks, and being unapologetically ourselves. We developed a distinct aesthetic sense and a brand style that reflects who we are, how we live and what we love
 
FN: Fashion weeks in Europe in January – both menswear and couture – saw a lot of expressions of support for the LGBTQ, a community many designers see as under attack by a new angry authoritarianism. What are your thoughts on that?
D&D: In challenging times, we really like to continue to be positive; we’ve always infused acceptance and a sense of community into everything we do.

DSquared2 30th-anniversary show in Milan

Dsquared2 – Fall-Winter2025 – 2026 – Womenswear – Italie – Milan – ©Launchmetrics/spotlight

Leave it to the Canadian duo to stage an epic show, the cast marching out of a wrecked brick garage, or arriving in a series of mighty wheels. From armored personnel carriers and Ford Mustang convertibles to an all-silver DeLorean and a vintage Rolls Royce – all took turns arriving in the huge warehouse done up like a nightclub.
 
All of the Caten’s great archetypes got an outing. Mad saucy trapper girls in giant puffers and lots of legs; a trio of rockers with Kiss goth makeup but in three-piece suits; Klondike gold diggers off to an all-night rave; sexy vampy rock goddesses with bumster leather pants and fur coats with trains; and a beautiful black rodeo gal with mini cocktail made of bands of Western belts.

Dsquared2 – Fall-Winter2025 – 2026 – Womenswear – Italie – Milan – ©Launchmetrics/spotlight

A couple of leather dudes like extras from Querelle and Isabeli Fontana in a black chiffon tunic dress slashed from shoulder to ankle to reveal acres of skin. Before Naomi Campbell, inevitably, stomped down the catwalk in black leather thigh boots and a leather biker jacket, sporting the largest funky afro ever seen on a catwalk.
 
Leading to the arrival with sirens of NYC police car, from which a dominatrix leather police captain played by Brigitte Nielsen escorted two white collar criminals. You guessed it – Dean and Dan.
 
And amid huge roars, JT and Doechii took the floor in a call and response duet surrounded by the entire cast.

 

Copyright © 2025 FashionNetwork.com All rights reserved.



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