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.
Fashion retailer Revolve announced on Tuesday that its limited-time-only Revolve holiday shop at The Grove will become a permanent store location this fall.
Revolve to open permanent store at The Grove in Los Angeles. – Revolve
Spanning 8,450 square feet, the new two-story store will offer a handpicked selection of customer-favorite Revolve brands, curated pieces from Fwrd, and rare vintage handbags from Fwrd Renew, across women’s and men’s apparel, footwear, accessories, beauty, and home.
Known for its experiential retail approach, Revolve’s decision to establish a permanent presence at The Grove aligns with its focus on customer acquisition and brand awareness. The iconic LA shopping destination draws both local shoppers and global visitors, providing the perfect backdrop for Revolve’s dynamic retail experience.
“Expanding our physical presence is a natural evolution of our retail strategy. After years of successful pop-ups and activations – including incredible success in Aspen – establishing a store in Los Angeles allows us to bring Revolve and Fwrd to life in a dynamic, real-world setting,” said Michael Mente, co-founder and co-CEO, Revolve.
“This space will transcend traditional shopping, bringing our digital-native brand to life by seamlessly blending fashion, discovery, and experience.”
Originally launched as a temporary winter destination in November 2024, the pop-up attracted significant foot traffic and high-profile celebrity appearances from Megan Fox, Cardi B, Shay Mitchell, Nicole Richie, Dwyane Wade, and more.
Throughout the season, Revolve hosted a number of exclusive events and brand activations, featuring sought-after labels such as Alexander Wang, Helsa, and Beis. The space also served as a hub for unique customer experiences, including a kitten rescue event with Vinnie Hacker and a happy hour hosted by Dairy Boy and Paige Lorenze.
Looking ahead, the store will temporarily close for renovations before reopening with a fresh new look this fall.
Italian fashion legend Brunello Cucinelli is to be honoured with the Outstanding Achievement Award at the Fashion Awards 2025 at the Royal Albert Hall in London in December, the British Fashion Council (BFC) has announced.
Brunello Cucinelli
The accolade, regarded as one of the fashion industry’s highest distinctions, recognises the 47-year career of the Umbrian designer, philosopher and entrepreneur.
Cucinelli is being rewarded for his “exceptional contribution to the world of fashion, as a pioneer who has succeeded in combining luxury and design with a more responsible approach to business”, the BFC said.
Its executive committee said it also chose to bestow this honour on his Solomeo-based fashion house which is “rooted in the ethical principles of Humanistic Capitalism and Human Sustainability, dedicated to promoting the dignity of the human being in all its forms and expressions, as well as to the guardianship of Creation”.
The BFC specifically highlighted “the innovation brought to the world of cashmere [which] has transformed the possibilities of the entire sector”.
Cucinelli added: “I like to think of this as a gift to dedicate to young and very young artisans who, in the future, will be called upon to contribute, in an innovative and contemporary way, to the enhancement of the dignity of manual labour, fine craftsmanship, and our Made in Italy, so highly appreciated around the world.”
Watch brands love an anniversary, big or small, and treat them as a way to showcase their technical skill. This year, Audemars Piguet celebrates its 150th, so it’s no surprise its research and development teams worked for five years to create something they believe might change watchmaking for the next 150.
Bloomberg
On Feb. 17, AP showcased the fruits of that labor at the Arc, the watchmaker’s nearly 194,000-square-foot new manufacture in Le Brassus, Switzerland. The futuristic building (which is still only partially open) curves around the existing Manufacture des Forges and brings much of AP’s production across the Vallée de Joux under one roof. Here, Chief Executive Officer Ilaria Resta and her team showed new watches and celebrated the brand’s history.
The star of the show was calibre 7138, the new perpetual calendar movement, called a quantième perpétuel, or QP, in French. Sebastian Vivas, the company’s heritage and museum director, said, “The QP is the game changer.”
A perpetual calendar is one of horology’s oldest and most esteemed complications. It will accurately show the day of the week, date, month, week number and moon phase, even across leap years (which it also indicates, usually on a small subdial with four segments). Keep it wound, and it will be accurate until the year 2100—when there’s a single-day deviation in the Gregorian calendar.
Audemars Piguet is a master of this format, which it first put in pocket watches in 1875, then in wristwatches in the 1920s. (In 1955, AP made the world’s first perpetual calendar wristwatch with a leap-year indication.)
However, perpetual calendars are notoriously tricky to set. Most calendar functions are adjusted with a series of discreet correctors on the side of the case, and the watch comes with a dedicated tool to change them. Of course, as research and development director Lucas Raggi notes, many people lose their tools and set their perpetual calendars with whatever fits, like an earring back or a pen tip, which can scratch the case.
Setting them requires precision; if you go one correction too far on some models, it takes dozens or even hundreds of pushes to correct it. Raggi says he commonly sees collectors with perpetual calendar watches that are incorrectly set just because they can’t be bothered to go through all the steps to fix it. To make matters worse, the complex array of gears and wheels can easily break while correcting the calendar, especially if the wearer changes it close to midnight when the date change happens automatically.
This is all set to change with the invention of calibre 7138, a movement (watchspeak for the engine of a watch) that relies on a single crown to set every function for the calendar. It was introduced that day at the Arc, to excited murmurs from assembled journalists.
Turning the crown clockwise in position one, flush to the case, winds the watch. Pull the crown into position two, and you have two functions: a clockwise turn sets the date, and a counterclockwise turn the month and leap year. Position three sets the time in both directions. Return to position two, and a new function is activated. This position is called “two prime,” a first in watchmaking. (When Raggi and Giulio Papi, director of watch conception, unveiled this, the room of watch journalists was filled with gasps.)
A clockwise turn sets the day and week, and counterclockwise sets the moon phase. In addition, watchmakers protected the movement, so it’s impossible to change the date between 9 p.m. and 3 a.m. and potentially break it. Vivas says these invisible technical improvements and achievements are setting the brand’s course for the next 150 years.
The calibre 7138 can be found in three new watches—one in AP’s Code 11.59 line, with an 18-karat white gold case that has an embossed blue dial with a guilloche motif. It retails for 109,300 Swiss francs ($121,796). The Royal Oak line has the new movement in two models: The first is in the brand’s proprietary “sand gold,” a unique hue that sits between rose and white gold thanks to an alloy of gold, palladium and copper. It goes for 130,000 francs. The second is in the brand’s classic stainless steel case with a blue PVD Grande Tapisserie dial, priced at 109,300 francs. These watches are in regular production, and there are also three limited editions of 150 pieces each, identified by the vintage-inspired Audemars Piguet logo at 6 o’clock.
In addition to the perpetual calendar, Audemars Piguet unveiled several other new watches. The Royal Oak Selfwinding Flying Tourbillon Extra-Thin makes its Code 11.59 debut in beige. It has a sand gold case with diamonds decorating the lugs, middle case and crown, and a matching beige alligator strap. The dial has an embossed, circular guilloche motif that seems to radiate from the flying tourbillon. It’s priced at 149,000 francs.
Other releases are new colors of existing timepieces. The brand released five new Code 11.59 Grande Sonnerie Carillon Supersonnerie watches with wildly different designs, for example. Two have an opal dial with a beautiful play of color; the stone appears to shine with many colors depending on the light. These gorgeous watches are priced at 761,300 francs. In contrast, the three openworked models showcase the watch’s complex inner machinery, come in varying shades of gray, and are priced at 715,000 francs each.
The US market gets first dibs on an exclusive new color for the Code 11.59 Selfwinding Chronograph 41mm: a rich Tuscany-blue grained dial paired with a polished 18-karat white gold and blue ceramic case. The dial has discreet diamond hour markers that look almost like metal at first glance. It comes out in the US in March before its worldwide release in June. It’s limited to 100 pieces and priced at 85,600 francs.
The Royal Oak Perpetual Calendar Openworked 150th Anniversary watch is the last timepiece with the brand’s calibre 5135. It has a titanium and Bulk Metallic Glass (BMG) case and bracelet that are ultralight, an openworked dial that displays the movement, and brilliant blue accents. It retails for 175,000 francs.
Audemars Piguet will continue to unveil new watches throughout each year to celebrate its 150th anniversary.
Entertainment8 years ago