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Euro zone inflation accelerates in January on energy

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February 3, 2025

Euro zone inflation accelerated slightly last month but remained on an anticipated course that could allow the European Central Bank to cut interest rates further, possibly as soon as March.

 The ECB lowered borrowing costs for the fourth straight time last month and hinted at even more policy easing since inflation could be back at its 2% goal by late summer, economic growth is anaemic and a trade war with the U.S. was a distinct possibility.

Consumer price inflation in the 20 nations sharing the euro accelerated to 2.5% in January from 2.4% in December, Eurostat said on Monday, just above expectations in a Reuters poll of economists, as sharply higher energy costs added to price pressures.

However, underlying inflation, a valuable indicator of the durability of price growth, held steady and services inflation eased. That was a modest relief to the ECB which has long argued that domestic price pressures are too high, even if all conditions are in place for some easing in those pressures given more muted wage growth.

Price growth excluding volatile food and energy was unchanged at 2.7% and the closely watched services component, the single biggest item in the consumer price basket, eased to 3.9% from 4.0%.

While quicker inflation is not welcome, the figures are in line with the narrative outlined by ECB President Christine Lagarde, who last week said that price growth could oscillate around these levels for the coming months before a slowdown towards the 2% target in the subsequent period.

This benign path is a key reason why markets anticipate at least three more rate cuts this year and why policymakers speaking both on and off the record consider a March move very likely. 
The debate on a possible pause is only set to heat up from April by when the deposit rate could be at 2.5%, the upper end of the estimate range for the ‘neutral’ level, a rate that neither restricts, not stimulates growth. 

The biggest risk to such an outlook is whether U.S. President Donald Trump levies fresh tariffs on the European Union and how the bloc responds.

Tariffs slow economic growth since they reduce demand for European goods overseas, weighing on exports, a key driver of growth for decades. But retaliatory measures could push up domestic inflation by making goods imported from the U.S. more expensive.
Tariffs also change the outlook for monetary policy and put subtle pressure on inflation via the exchange rate. 

Trump’s policies could delay Fed rate cuts, increasing the interest rate differential on the two sides of the Atlantic, firming the dollar as investors move into higher yielding U.S. assets. 
This will make imported goods, especially energy, which is priced in dollars, more expensive, countering the deflationary impact of weak economic growth.

© Thomson Reuters 2025 All rights reserved.



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De Beers agrees on fresh sales agreement with Botswana

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February 3, 2025

Miner Anglo American‘s diamond unit De Beers said on Monday it had finalised negotiations with the Botswana government for a new rough diamond sales agreement and extended mining licences for its joint venture beyond 2029.

Debswana, a 50:50 joint venture between top diamond producer Botswana and De Beers, currently sells 75% of its output to De Beers.

In 2023, Botswana and De Beers agreed to a fresh 10-year diamond sales deal, under which the government’s share of diamonds from the Debswana JV will increase to 30% and gradually rise to 50% over the decade.

However, this agreement was never signed under the leadership of former president Mokgweetsi Masisi.

On January 23, Botswana’s new President Duma Boko said he hoped to clinch a long-delayed sales pact with De Beers soon.

In addition, Boko said talks aimed at increasing Botswana’s ownership stake in De Beers – currently at 15% – were “going well”.

Anglo American is seeking to divest De Beers as part of a broader restructuring plan aimed at refocusing its operations on copper and iron ore mining.

© Thomson Reuters 2025 All rights reserved.



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Viktor & Rolf re-sign with OTB for next five years

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February 3, 2025

The duo of Viktor Horsting and Rolf Snoeren have renewed their contracts for a further five years as the creative directors of the fashion house they founded.
 
The designers and OTB Group – the main holding company of Italian fashion entrepreneur Renzo Rosso, which controls the Dutch fashion house – broke the news in a joint statement released on Monday.
 

Viktor Horsting and Rolf Snoeren – OTB Group

 
Based in Amsterdam, Viktor & Rolf founded their Haute Couture maison in 1993. They became part of the OTB Group in 2008.
 
“Viktor and Rolf are two unique voices in the world of international fashion, couturiers who have revolutionized the very concept of Haute Couture, and everything they do is art. I am very happy to continue the collaboration with them, their talent will continue to inspire and amaze the fashion world,” said Rosso, Chairman and founder of the OTB Group.

Added Horsting and Snoeren: “Within an ever-changing fashion landscape of brands and designers, we are proud to continue our singular artistic path of 30 plus years.”
 
Despite reports of occasional friction between the duo and the OTB Group due to designers’ hyper conceptual approach, the renewal was not unexpected. However, it comes in the wake of the departure from the OTB Group’s most acclaimed designer John Galliano, who left Maison Margiela after almost a decade in the autumn. Departing despite staging the most acclaimed couture show in fashion this past decade in January 2024.
 
With Viktor Horsting and Rolf Snoeren, their maison became a one-of-a-kind success in the world of Haute Couture, creating collections that represent various nuances and forms of their artistic expression.
 
In the release, OTB Group lauded the duo’s constant exploration of “the borderland between art and fashion, constantly reinventing and reshaping the very concept of Haute Couture.”
 
Their memorable collections include Haute Couture Spring Summer 2019 – Fashion Statements, entirely made of colored tulle; Haute Couture Spring Summer 2022 – Surreal Shoulder, characterized by extreme, distorted, and elongated silhouettes. While Haute Couture Spring Summer 2023 – Late Stage Capitalism Waltz, defied the laws of gravity with surrealist garments worn upside down, sideways, perpendicularly, and away from the body; and Haute Couture Spring Summer 2024 – Scissorhands, was a collection born to explore the creative and decorative possibilities of a pair of tailor’s scissors.
 
While with OTB, Viktor & Rolf have also developed women’s collections of demi-couture inspiration; bridalwear with Viktor & Rolf Marriage; and eyewear collections with Viktor & Rolf Vision.
 
The duo have also built a highly successful fragrance business with a licensing agreement with L’Oréal Luxe, boasting such as worldwide bestsellers as Flowerbomb, Spicebomb and Good Fortune.
 
The vision and the artistic creations of Viktor Horsting and Rolf Snoeren have been celebrated in countless international exhibitions, including “Camp: Notes of Fashion” at the MET Museum, “Viktor&Rolf Fashion Artists” at the Kunsthal in Rotterdam, “Viktor&Rolf: MetaFashion!” at the Sea World Culture and Arts Center in Shenzhen,” Viktor&Rolf par Viktor&Rolf : Première Décennie” at the Musée de la Mode et du Textile, “ The House of Viktor&Rolf” at the Barbican Art Gallery, and “Viktor&Rolf: Fashion Artists” at the National Gallery of Victoria in Melbourne.
 
On the occasion of the brand’s 30th anniversary, one hundred of their most iconic pieces were showcased in the exhibition “Viktor&Rolf: Fashion Statements” at the Kunsthalle in Munich. Some of their dresses were also selected as the protagonists and symbols of the exhibition “Memorabile. Ipermoda.” still ongoing at the MAXXI National Museum of 21st Century Arts in Rome, in collaboration with the National Chamber of Italian Fashion.
 
 
 
 

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Hong Kong December retail sales value falls 9.7% from a year earlier

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February 3, 2025

Hong Kong’s December retail sales by value fell by 9.7% from a year earlier, reflecting the impact of residents’ increased outbound trips during the holidays, government data showed on Monday.

Reuters

Sales fell to HK$32.8 billion ($4.21 billion), a tenth month of declines after a 7.3% drop in November.

“The near-term performance of the retail sector would continue to be affected by the change in consumption patterns of visitors and residents,” a government spokesman said, adding various measures by Beijing to boost the mainland economy and the Hong Kong government’s efforts to promote tourism would boost sentiment.

Sales fell despite a rise in tourist numbers, as shoppers spent less and fewer visitors from mainland China stayed over.

In volume terms, December retail sales fell 11.5% from a year earlier, compared with a revised 8.4% decline in November.

For the whole of 2024, total retail sales value decreased 7.3% compared to the same period in 2023, while the volume of total retail sales fell 9.0%, according to provisional estimates.

China eased visa restrictions for Shenzhen residents visiting Hong Kong effective Dec. 1.
December visitor arrivals stood at 4.26 million, up 8.3% from the same month a year ago, data from the Hong Kong Tourism Board showed. That compared to 3.57 million in November, 4.09 million in October and 3.06 million in September.

The number of mainland Chinese visitors stood at 3.10 million in December, up 5.2% from a year ago. That compared to 2.56 million in November, 3.14 million in October and 2.29 million in September.

For the whole of 2024, total visitor arrivals stood at 44.5 million, up 30.9% from 2023.
Sales of jewellery, watches, clocks and valuable gifts fell 13.8% in December year-on-year after a 4.2% decline in November.

Sales of clothing, footwear and allied products dropped 10.2% in December after a 5.2% decline in November.
 

© Thomson Reuters 2025 All rights reserved.



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