WWD : LVMH Reunites Le Bon Marché and La Samaritaine Department Stores in New Di

LVMH Reunites Le Bon Marché and La Samaritaine Department Stores in New Division
Le Bon Marché chairman and chief executive officer Patrice Wagner has been named head of the new governance structure, following LVMH's acquisition of la Samaritaine from DFS.

PARIS — LVMH Moët Hennessy Louis Vuitton has created a new governance structure reuniting its two Paris department stores, Le Bon Marché and la Samaritaine, after acquiring the latter from its travel retail division DFS, the luxury group said Friday.

Patrice Wagner, chairman and chief executive officer of Le Bon Marché Group since 2010, has been named head of the new unit, according to an internal memo seen by WWD. The reorganization is designed to turn around la Samaritaine, which is struggling amid a global slowdown in luxury spending.

Catherine Newey remains CEO of la Samaritaine and becomes deputy CEO of Le Bon Marché Group. Newey was initially named head of DFS Europe last June after seven years at Le Bon Marché, where she rose to the role of managing director.

“This new organization illustrates the importance that LVMH attaches to its Paris department stores, for which the group harbors strong ambitions,” the luxury conglomerate said.

“La Samaritaine boasts an exceptional location and historic roots in the heart of Paris. Le Bon Marché has forged a powerful Parisian identity, blending creativity, exacting professionalism and a unique customer experience. Together, they will be able to leverage their complementary assets to further bolster their strong positions with distinctive client segments,” it added.

In his last press conference as chief financial officer of LVMH, Jean-Jacques Guiony revealed in January that the group had bought la Samaritaine from the duty-free retail division, though he did not specify when the transaction took place.

“The business, which was mostly aimed at Chinese tour groups, is indeed suffering at Samaritaine, and that is why we are taking it out of the orbit of DFS, which specializes in this type of clientele, in order to reposition it in a more general direction,” he said.

Guiony said DFS registered losses of “several hundred million” euros last year due to unfavorable currency fluctuations. The division announced in November it was shuttering its Fondaco dei Tedeschi store in Venice.

The latest shakeup comes amid a slew of management changes at the luxury giant, which saw Guiony become president of the wines and spirits division. LVMH also named a new head of its watch unit Friday.

A retail industry veteran, Wagner joined LVMH from German department store chain Karstadt, which has since merged into Galeria Karstadt Kaufhof. Under his stewardship, Le Bon Marché underwent a significant renovation, expanding its floor area by 43,000 square feet.

His résumé also includes stints at Berlin department store KaDeWe and Galeries Lafayette in Germany. Since January 2021, he also oversees LVMH’s elite luggage-maker Rimowa.

>>> Weekend Press Summary

FINANCIAL TIMES
-Denmark's Prime Minister Mette Frederiksen will visit Greenland next week to meet the island's new leader, Jens-Frederik Nielsen, following US Vice-President JD Vance's claim of neglecting the autonomous territory. Denmark's foreign minister, Lars Løkke Rasmussen, defended the US's criticism, stating that America had significantly reduced its military presence in the Arctic. Trump's desire to take over Greenland has placed the island's future in the geopolitical spotlight.
-Stocks fell on Friday due to concerns among American consumers about the impact of President Donald Trump's tariffs on the world's largest economy. The data suggests that consumers are growing more concerned about the impact of Trump's trade levies on the US economy and the Federal Reserve's preferred inflation measure. This comes as investors are concerned that Trump's trade levies and uncertainty will hurt US economic growth and increase price pressures. The S&P 500 and Nasdaq Composite dropped 2% and 2.7% respectively. The US government debt rallied, pushing the 10-year Treasury yield down 0.11 percentage points to 4.265%. James Knightley, an economist at ING, said that US data is inflaming stagflation fears, with hot inflation and cooling consumer spending likely to be intensified by Trump's aggressive moves on tariffs and government spending cuts.
-As the US retreats from transatlantic security, European countries are focusing on non-military means of projecting power, such as troll farms, conspiracy-spewing state media, fake news sites, hacks, rent-a-mobs, vote-buying, and cyber attacks. If a ceasefire in Ukraine occurs, Europe will become a greater focal point as information war assets targeted at the US are repurposed. Democracies can step up in this space, as they have historically done.
-An earthquake in Myanmar has killed 1,002 people and injured 2,376 others, with 30 more declared missing. The military government declared a state of emergency and appealed for blood donations. The quake also caused at least six deaths in Thailand, where over 100 were missing after a building collapsed in Bangkok. The epicenter of the 7.7-magnitude quake was about 20km outside Mandalay, Myanmar's second-biggest city. The number of casualties is expected to rise further, and the junta leader called for support for rescue efforts.
-The Trump administration has sent a letter to French companies warning them to comply with an executive order banning diversity, equity, and inclusion (DEI) programs. The letter, sent by the American embassy in Paris, states that the order applies to companies outside the US if they are suppliers or service providers to the American government. The embassy also sent a questionnaire requiring companies to attest to their compliance. The documents suggest the Trump administration is broadening its campaign against DEI to foreign companies after cracking down on US media groups like Disney.
-China's antitrust regulator will review the sale of two Panama Canal ports by Hong Kong's CK Hutchison to a consortium led by BlackRock, adding uncertainty to the geopolitically sensitive deal. The planned sale is part of a $22.8B deal for 43 ports worldwide, which has sparked criticism from China. CK Hutchison has been warned to "think twice" about selling to a group that includes US investors BlackRock and Global Infrastructure Partners. China's State Administration for Market Regulation stated it was aware of the deal and would review it to protect fair competition and public interest.
-Elon Musk's artificial intelligence group, xAI, has acquired social media platform X for $45B, bringing together two of his flagship businesses. The all-stock deal valued xAI at $80B, with Musk stating that the futures of the two companies are intertwined. The deal, which includes $12B in debt, values X slightly above the $44B price Musk paid to take the company private in October 2022. This follows a $1B fundraising round this month. The deal highlights a rebound in X's fortunes, which slumped following Musk's takeover due to advertisers' concerns over his hands-off approach to moderation.
-The Signalgate scandal has become the first major crisis of Donald Trump's second presidential term, just over two months into his second term. The episode has questioned the competence of some of Trump's senior officials, including former Fox News host Hegseth and national security adviser Mike Waltz. Critics argue that such scandals were inevitable given the thin resumes of many Trump's senior officials. Julian Zelizer, a professor of political history at Princeton University, says the warnings were clear that many were not up to the job and had the necessary experience. Democrats have accused the incident of being similar to Fox News personalities cosplaying as government officials, referring to it as lethal military operations.
-Columbia University's head, Kathrina Armstrong, resigned following criticism of the institution's decision to comply with President Donald Trump's demands for reforms. The university suspended $400M in grants and threatened to suspend future funding unless it addressed alleged antisemitism on campus. Columbia chose not to challenge the demands, despite legal scholars arguing they failed to respect due process and faculty concerns about academic independence and freedom of speech. The university unveiled concessions while defending academic integrity. Armstrong, who will resume her role as head of the Irving Medical Center, expressed her passion for science and healing.
-Donald Trump has urged Denmark to cede control of Greenland to the US, as vice-president JD Vance visited an American military base on the island. Trump emphasized the importance of Greenland for international security and emphasized that China and Russian ships were in the waters surrounding the island. He stated that Greenland is crucial for the peace of the world and that Denmark and the European Union understand this. Vance argued that the US's argument is not with the people of Greenland but with the leadership of Denmark, which has under-invested in the island and its security architecture.
- China's President Xi Jinping made a strong defense of international trade, stating that some countries are "weaponizing" trade and forcing companies to make choices that go against economic principles. He told a group of over 40 global business leaders that they must jointly maintain the multilateral trading system and the stability of the global industrial chain. The meeting followed a week in which China hosted its most important annual business summits: the China Development Forum in Beijing and the Boao Forum for Asia in the tropical resort island of Hainan.

NEW YORK TIMES
-Federal judges have issued temporary restraining orders against President Trump's executive orders targeting two major law firms, Jenner & Block and WilmerHale, which participated in investigations of him. The orders barred the administration from carrying out punishments, such as banning their lawyers from government buildings, meetings, or jobs. Judge John Bates of Federal District Court in the District of Columbia criticized the order for punishing the firm for its pro bono work, a common feature of large law firms. Richard Leon issued a similar temporary restraining order against a Trump executive order targeting WilmerHale, where Robert S. Mueller III worked before and after serving as special counsel in the Trump-Russia investigation.
-Dr. Peter Marks, the top vaccine official at the Food and Drug Administration, resigned under pressure after Health Secretary Robert F. Kennedy Jr.'s aggressive stance on vaccines was deemed irresponsible and posed a danger to the public. Marks wrote to Sara Brenner, the agency's acting commissioner, stating that the secretary's actions were subservient confirmation of his misinformation and lies. He was summoned to the Department of Health and Human Services and told he could either quit or be fired. Marks led the agency's Center for Biologics Evaluation and Research, which authorized and monitored vaccine safety.
-The Trump administration plans to put the U.S. Agency for International Development under the State Department and reduce its staff to around 15 positions. The move comes amid protests from lawmakers who argue downsizing efforts are illegal, and staff members and unions who have sued to stop them. The agency employed about 10,000 people before the Trump administration began reviewing and canceling foreign aid contracts. The cuts align with the administration's plan to use foreign aid as a tool to further its diplomatic priorities. This month, recipients of USAID funds were asked to justify their value to the administration.
-President Trump has reduced his criticism of Canada following his first phone call with its new prime minister, Mark Carney. He removed references to the previous prime minister's title and given name, and suggested that Canada was not unfairly treated by the US in trade. Trump has promised to impose tariffs on American trading partners, including new ones against Canada, and believes that things will work out well between Canada and the US. He also described the call as productive and agreed on many things.
-The Federal Communications Commission (FCC) chairman has initiated an investigation into Disney's diversity, equity, and inclusion programs, marking the latest attempt by the Trump administration to halt such initiatives. In a letter to Disney's CEO, Brendan Carr, Carr claims that Disney's initiatives to increase diversity in hiring and promote race-based affinity groups violate equal employment opportunity regulations. The FCC is reviewing the letter and is looking forward to engaging with the commission to answer its questions.
-Harvard University's Center for Middle Eastern Studies, led by director Cemal Kafadar and associate director Rosie Bsheer, is set to resign due to allegations of anti-Israel bias and federal government pressure. The university has been under pressure to address antisemitism on campus. The director and associate director have not commented on the matter, while the Harvard Faculty of Arts and Sciences declined to comment.
-The earthquake in Myanmar, which killed at least 1,000 people, has raised questions about whether the event could also signify the downfall of Myanmar's ruling junta. The earthquake occurred a day after the military regime celebrated 80th Armed Forces Day in Naypyidaw. In an authoritarian country with limited information, omens and rumors are highly valued. The ruling generals sealed the country and reverted to superstition and propaganda. Earthquakes also have astrological significance in Myanmar, with a popular belief that an earthquake in March signifies city destruction and a July earthquake signifies kings and rulers' demise.
-Vice President JD Vance visited a U.S. military base in Greenland, a controversial trip pushed by the Trump administration and opposed by Greenlanders. Vance emphasized the need for the US to confront China and Russia's plans on the island, which has been connected to Denmark for over 300 years. Trump has been insisting on taking over Greenland, but Vance emphasized respecting Greenland's right to self-determination and stating that military force would not be necessary.
-California Governor Gavin Newsom has criticized the Democratic party, stating that it is "toxic" and that the party is stuck in an echo chamber. Newsom, who was once considered a liberal combatant, has been on a political soul search since President Trump won the White House and Republicans won both houses of Congress. In an appearance on "Real Time With Bill Maher," Newsom used his strongest language yet to criticize his own party, pointing to a recent NBC News poll that showed Democrats with a 27% favorability rating, the lowest in at least a generation. He believes that Democrats are being crushed by Republican opponents and that their party has to admit its own mistakes. Newsom's comments come as Democrats struggle in their fight against the Trump administration.
-President Trump's threat to impose a 200 percent tariff on European wine has caused shipments of many Brunellos, Chiantis, and Proseccos to halt in Tuscany, Italy. Wineries in Tuscany are stranding thousands of bottles meant for American tables in their cellars or storage rooms in Livorno. The damage is already visible, and jittery American importers have paused orders to avoid paying tariffs that could make the wine non-affordable for some. If the tariffs were imposed, a $20 bottle would suddenly cost $60.

NEW YORK POST
-A federal judge has blocked the Trump administration from deporting a Tufts University PhD student, Rumeysa Ozturk, who was allegedly a supporter of Hamas. US District Court Judge Denise Casper, an Obama appointee in the District of Massachusetts, ruled that the Trump administration cannot proceed with deporting Ozturk. Ozturk was apprehended by ICE agents in Boston and marked for deportation. Court documents show Judge Casper is flexing her ability to "preserve existing conditions" while determining whether her court has jurisdiction in the matter at all. Ozturk was apprehended by plainclothes Department of Homeland Security officers on a Boston street on Wednesday. A viral video shows Ozturk in shock as the officers took her phone from her hand and placed her in handcuff.
-Israel launched its first attack on Lebanon's capital since a cease-fire ended the latest Israel-Hezbollah war in November. The attack occurred in the southern suburbs of Beirut, targeting a Hezbollah drone storage facility in Dahiyeh, a militant stronghold. Israel accused Hezbollah of using civilians as human shields and warned residents to evacuate the area, which is a residential and commercial area near at least two schools.

WSJ : Hegseth Brought His Wife to Sensitive Meetings With Foreign Military Offic

Hegseth Brought His Wife to Sensitive Meetings With Foreign Military Officials
Defense secretary’s handling of sensitive information is under fire after he shared details about a strike on Houthi militants in a group chat on a widely used app

Defense Secretary Pete Hegseth, who is facing scrutiny over his handling of details of a military strike, brought his wife, a former Fox News producer, to two meetings with foreign military counterparts where sensitive information was discussed, according to multiple people who were present or had knowledge of the discussions.

One of the meetings, a high-level discussion at the Pentagon on March 6 between Hegseth and U.K. Secretary of Defense John Healey, took place at a sensitive moment for the trans-Atlantic alliance, one day after the U.S. said it had cut off military intelligence sharing with Ukraine. The group that met at the Pentagon, which included Adm. Tony Radakin, the head of the U.K.’s armed forces, discussed the U.S. rationale behind that decision, as well as future military collaboration between the two allies, according to people familiar with the meeting.

A secretary can invite anyone to meetings with visiting counterparts, but attendee lists are usually carefully limited to those who need to be there and attendees are typically expected to possess security clearances given the delicate nature of the discussions, according to defense officials and people familiar with the meeting. There is often security near the meeting space to keep away uninvited attendees.

Hegseth’s wife, Jennifer Hegseth, isn’t a Defense Department employee, defense officials said. It isn’t uncommon for spouses of senior officials to possess low-level security clearances, but a Pentagon spokesperson declined to say whether Jennifer has one. Jennifer didn’t respond to requests for comment.

Jennifer Hegseth also attended a meeting last month at North Atlantic Treaty Organization headquarters in Brussels where allied defense officials discussed their support for Ukraine, according to two people who attended the meeting. Hegseth’s brother Philip Hegseth has also been traveling with him on official visits, the Pentagon said.

The Brussels meeting, which took place on the sidelines of a February conference of NATO defense ministers, was a gathering of the Ukraine Defense Contact Group, a U.S.-led forum of some 50 nations that periodically meets to coordinate on production and delivery of weapons and other support for Ukraine. At the closed-door discussions, national representatives routinely present confidential information, such as donations to Ukraine that they don’t want to be made public, according to officials.

Some foreign attendees at the meetings didn’t know who Jennifer Hegseth was, according to people familiar with both gatherings. Others were surprised by her presence, but proceeded without raising objections, the people said. It isn’t clear whether her presence affected what was discussed at either session.

Members of Congress from both parties have raised concerns about Hegseth’s handling of sensitive military information following revelations that he and other administration officials used a group chat on the Signal messaging platform that included a journalist to discuss and execute a strike on Houthi militants in Yemen.

Sen. Roger Wicker (R., Miss.), the chairman of the Senate Armed Services Committee, and Sen. Jack Reed (D., R.I.), the ranking Democrat on the panel, sent a letter Wednesday asking the Defense Department’s inspector general to launch an inquiry into the chat.

High-ranking Defense Department officials occasionally bring their spouses on official travel and to ceremonial functions. At a news conference during the NATO conference in Brussels, Hegseth told reporters that Jennifer Hegseth had joined him and had “been meeting with families of U.S. troops” in Belgium and Germany.

But it is rare for spouses, who are private citizens, to sit in on national security meetings, according to current and former defense officials.

“When you have meetings with ministers or high-level NATO officials, those meetings almost always include sensitive security conversations,” said Chuck Hagel, a Republican former secretary of defense who served under President Barack Obama. “If you are going to discuss top secret, national security issues, you have to be very selective. What’s the relevancy of the person you are inviting?”

For a secretary’s wife to be present in such conversations, Hagel said: “It sends a message to the department: Why is the secretary doing that? It puts staff on guard over what to say and to whom. It introduces an issue you don’t need to introduce.”

A high-ranking former official in the Obama administration said Bill Clinton never attended any meeting with then-Secretary of State Hillary Clinton, though he did go to North Korea to secure the release of a reporter. The person knew of no instance in which a spouse attended any official meeting.

“That would be strange,” the former official said, “and would not make any sense.”

Sean Parnell, a spokesman for the Defense Department, said in an email response to a detailed request for comment that it is “pretty clear to me that your story is going to be filled with inaccuracies and will not be written in good faith.” Parnell didn’t clarify what the inaccuracies were.

Spokespeople for NATO and the U.K. Ministry of Defense declined to comment.

In the previous Trump administration, Mike Pompeo drew scrutiny over the role of his wife, Susan Pompeo, while he was the head of the Central Intelligence Agency and later the State Department. Susan Pompeo was involved in CIA social events, held an honorary role on a board supporting agency family members and often worked near her husband on the CIA’s seventh floor, a spokesman for the agency acknowledged in 2018 in response to reporting by media outlets. She also delegated work to State Department employees on behalf of her husband, including some work of a personal nature that a 2021 Inspector General report found to be inappropriate.

For Hegseth, a second family member is also getting involved. His younger brother Philip Hegseth, a podcast producer for the conservative think tank the Hudson Institute and the venture-capital firm Andreessen Horowitz, recently joined the Department of Homeland Security as a liaison to the Defense Department, according to Pentagon spokeswoman Kingsley Wilson.

Philip and Pete Hegseth traveled to Guantanamo Bay together last month and met with the Irish martial artist Conor McGregor at the Pentagon in March, according to photographs published on the Defense Department website. Philip is currently traveling with Hegseth on a tour to visit American allies and bases in Asia, Wilson said. The Department of Homeland Security didn’t respond to a request for comment. Philip Hegseth didn’t respond to requests for comment.

Jennifer Hegseth, who has spent her career in television news, met Pete Hegseth when she was a producer on “Fox & Friends,” which Hegseth hosted on weekends. The two married in 2019. She later became a vice president at Fox Nation, the network’s streaming service, but is no longer an employee at the company, according to Fox News spokeswoman Irena Briganti.

Fox News parent Fox Corp. and The Wall Street Journal’s parent company, News Corp, share common ownership.

Both Jennifer Hegseth and Philip Hegseth were near-constant fixtures at Hegseth’s side during his contentious confirmation process for defense secretary. Photographs show them flanking him through the hallways as he courted senators during one-on-one meetings on Capitol Hill.

Some senators were surprised that Hegseth invited Jennifer to sit next to him in their private meetings, making it awkward to ask questions about allegations related to infidelity and sexual misconduct, said people familiar with the senators’ thinking.

Photos and videos from a brief news conference that directly preceded the March meeting with the U.K.’s Healey show Jennifer Hegseth filing into the conference room and taking a seat behind her husband. Other attendees, who numbered in the teens, included high-ranking military and diplomatic officials.

Healey hoped to discuss America’s changing involvement in the war in Ukraine, he said in response to a reporter’s question before the meeting.

“It’s the detail of those discussions, which are rightly behind the scenes, that the defense secretary and I will now pursue this afternoon,” Healey said.

The media departed. Jennifer Hegseth stayed.

WSJ : FDA’s Top Vaccine Official Forced Out

FDA’s Top Vaccine Official Forced Out
In his resignation letter, Dr. Peter Marks cited ‘misinformation and lies’ from Health and Human Services Secretary RFK Jr.

The Food and Drug Administration’s top vaccine official has been pushed out, according to people familiar with the matter.

Dr. Peter Marks, who played a key role in the first Trump administration’s Operation Warp Speed to develop Covid-19 vaccines, stepped down Friday. He submitted his resignation after a Health and Human Services official earlier in the day gave him the choice to resign or be fired, people familiar with the matter said.

“It has become clear that truth and transparency are not desired by the Secretary, but rather he wishes subservient confirmation of his misinformation and lies,” Marks wrote in a resignation letter referring to HHS Secretary Robert F. Kennedy Jr.

The letter was addressed to acting FDA Commissioner Sara Brenner. His resignation takes effect April 5, the letter said.

“If Peter Marks does not want to get behind restoring science to its golden standard and promoting radical transparency, then he has no place at FDA under the strong leadership of Secretary Kennedy,” an HHS official said.

Marks, who has been with the FDA since 2012, has led its division responsible for overseeing vaccines, biotech drugs and blood products since 2016. Part of the division’s role is making sure vaccines work and are safe.

During the pandemic, he was a member of the team that streamlined regulations and pooled government funding to speed development of Covid-19 vaccines.

He had wanted to stay in his position, though his support of immunizations conflicted with Kennedy’s skepticism, people familiar said.

Marks offered to work with Kennedy on holding a series of public meetings on vaccines with the National Academy of Sciences, Engineering and Medicine, and he sent a memo to Kennedy proposing listening sessions on immunizations, one of the people said.

“My hope is that during the coming years, the unprecedented assault on scientific truth that has adversely impacted public health in our nation comes to an end,” he wrote in the letter.

Marks will leave the FDA as Kennedy has begun to reshape the Health and Human Services Department, including by making plans to lay off 10,000 employees and close offices.

Kennedy is a longtime critic of vaccines who has questioned their safety and effectiveness. During his confirmation process, Kennedy played down his opposition and promised Sen. Bill Cassidy (R., La.) that he wouldn’t change systems for approving vaccines or monitoring their safety—systems that Marks oversaw.

Since taking the helm of the department, Kennedy has begun collecting names of potential new members to put on a committee that recommends which vaccines Americans should get and when, The Wall Street Journal reported. His department has also paused vaccine contracts.

He recently faced criticism for dismissing the measles outbreak in Texas and New Mexico, at first calling the outbreak “not unusual.” He then said HHS was making combating the outbreak a priority, while also saying vaccination is a “personal” decision.

Marks is the third top leader at the FDA to leave this year, after the departures of drug chief Dr. Patrizia Cavazzoni and human foods chief Jim Jones. On Tuesday, Dr. Marty Makary, a former Johns Hopkins surgeon, was confirmed as commissioner.

FT : Traders pile into Scandinavian currencies in ‘euro on steroids’ bet

Traders pile into Scandinavian currencies in ‘euro on steroids’ bet
Swedish krona and Norwegian krone are best-performing of G10 group of developed market currencies

Sweden and Norway’s currencies have become a favourite way for traders to bet on a European economic revival, outstripping other major peers since the start of the year as lawmakers across the region promise a spending spree.

The Swedish krona has climbed more than 10 per cent against the US dollar this year, putting it on track for its biggest quarterly rise since 2010, while the Norwegian krone has risen more than 8 per cent, its largest jump in more than two years.

That makes them the best-performing of the G10 group of developed market currencies this year, ahead of the euro and the pound, as investors bet on a higher path for interest rates in Scandinavian countries and a tailwind from the major spending push promised by Germany and other big economies.

“The Scandi currencies are simply the euro on steroids,” said Kamal Sharma, an FX strategist at Bank of America.

Germany’s huge spending plan — which has fuelled hopes of a boost to European growth — will have a particularly positive impact on Sweden, which has a large defence sector, he added.

As a proportion of its economic output, Sweden’s weapons exports last year were not far behind those of France, the world’s second-largest major arms producer after the US, according to data from the Stockholm International Peace Research Institute and calculations by SpareBank 1 Markets. Stockholm has also announced it will increase its own military spending to 3.5 per cent of GDP by 2030.

Norway’s krone has also been helped by its defence sector, while its steel and aluminium industries are set to gain from Europe’s infrastructure push, analysts said.

The currencies’ gains mark a reversal from last year, when the Norwegian krone was close to record lows against the dollar and euro, barring dramatic falls only seen during the early days of the coronavirus pandemic.

“The moves over the last weeks have been really big . . . it has been surprising,” said Dane Cekov, an FX strategist at SpareBank 1 Markets, adding good governance and a stable fiscal outlook “while the US is messy” have increased their attractiveness to investors just as US President Donald Trump’s administration has shown itself willing to jeopardise international relations.


BofA expects the Swedish and Norwegian economies to grow 1.8 per cent and 1.5 per cent next year respectively, compared with 1.1 per cent for the Eurozone.

The expected boost to the Scandinavian countries’ economies has helped lift the share prices of the countries’ military companies, such as Saab, up more than 70 per cent since the beginning of the year, and Norway’s Kongsberg Gruppen, up more than one-fifth.

Higher than expected inflation in both economies in recent weeks has also been a “wake-up call” for their central banks to keep interest rates higher for longer, said Magne Østnor, an FX strategist at DNB Markets.

Markets expect the European Central Bank to make at least two quarter-point cuts by the end of the year. In contrast, only one cut is fully priced in, with a chance of a second, for Norway’s Norges Bank, while Sweden’s Riksbank is not expected to reduce rates at all this year. Norway’s central bank on Thursday kept interest rates on hold at a 17-year high of 4.5 per cent.

The lightning rally in the currencies has also been helped by a broad weakening in the dollar as investor concerns have grown that Trump’s aggressive trade tariff plans could harm the US economy.

Central bank officials in Sweden and Norway privately say they are somewhat unsure of the reasons for their currencies’ particularly strong recent performance. The Norwegian krone has historically strengthened with oil prices, but since the beginning of the year Brent crude, the global benchmark, is down slightly.

Brad Bechtel, global head of FX at Jefferies, said the outperformance was partly a reflection that the currencies had been “ultra undervalued” before the recent spending catalyst.

FT : Top US vaccine official resigns over Robert Kennedy’s ‘misinformation and l

Top US vaccine official resigns over Robert Kennedy’s ‘misinformation and lies’
Peter Marks says ‘truth and transparency are not desired’ by health secretary as measles outbreak spreads

The US government’s top vaccine regulator has quit after attacking the “misinformation and lies” spread by Robert F Kennedy Jr, the Secretary of Health and Human Services.

Peter Marks oversaw the Food and Drug Administration’s Center for Biologics Evaluation and Research, which led the US government’s programme to develop and distribute Covid-19 vaccines during the pandemic.

Marks wrote on Friday that he was leaving the agency after a fight with Kennedy, who has been criticised for his handling of a measles outbreak across five states that has claimed the lives of at least two unvaccinated people. Texas alone has 400 cases. Kennedy is a vaccine sceptic.

“I was willing to work to address the secretary’s concerns regarding vaccine safety and transparency by hearing from the public and implementing a variety of different public meetings and engagements with the National Academy of Sciences, Engineering, and Medicine,” Marks wrote.

“However, it has become clear that truth and transparency are not desired by the secretary, but rather he wishes subservient confirmation of his misinformation and lies.”

Apart from his scepticism of vaccines, Kennedy has made a number of false statements about Covid-19. These included the claim that the virus could be “ethnically targeted” and that “Ashkenazi Jews and Chinese” are the “most immune” from it.

This month, the health department hired an analyst who has promoted the debunked theory of vaccines’ links to autism. He has been employed to study the possible links between vaccination and the condition.

Some infectious disease doctors have expressed concern that Kennedy has overemphasised the importance of nutrition and vitamin A, while downplaying vaccines, in the government’s effort to counter the measles outbreak.

Marks wrote in his letter that two-dose measles, mumps and rubella vaccination, better known as MMR, was “97 per cent or more effective in preventing measles”, that it “simply does not cause autism” while protecting against a rare neurologic disorder.

“Undermining confidence in well established vaccines that have met the high standards for quality, safety, and effectiveness that have been in place for decades at FDA is irresponsible, detrimental to public health, and a clear danger to our nation’s health, safety and security,” wrote Marks.

“My hope is that during the coming years, the unprecedented assault on scientific truth that has adversely impacted public health in our nation comes to an end so that the citizens of our country can fully benefit from the breadth of advances in medical science.”

HHS officials did not immediately respond to requests for comment. Marks’ resignation was first reported in the Wall Street Journal.

FT : Glass Lewis criticises Goldman’s ‘egregious’ executive bonuses

Glass Lewis criticises Goldman’s ‘egregious’ executive bonuses
Proxy adviser calls for shareholders to reject chief executive David Solomon and president John Waldron’s $80mn awards

Goldman Sachs’ bonuses to chief executive David Solomon and president John Waldron worth $80mn apiece “raise significant concerns” and should be rejected by the bank’s shareholders, advisory firm Glass Lewis has recommended.

In a report published late on Friday, the proxy adviser said the duo’s awards, which the bank announced in January, were “further exacerbated by their structure, with the grants deviating from the company’s historical use of performance-based equity awards”.

The bonuses will be paid entirely in stock and are not tied to performance conditions, the firm said.

While “media headlines” depicted a “high level of poaching” experienced at the bank, shareholders had received mostly “boilerplate language” about the need for the pay, Glass Lewis said.

“The absence of any disclosure surrounding these elements of such a substantial award is egregious and, on that basis alone, would warrant a vote against this proposal this year,” it said in the report.

Goldman granted the five-year retention bonuses to ensure that their top two executives remained at the bank. The award for Waldron cemented the popular view among Wall Street observers that he is Solomon’s most likely eventual successor. 

The bonuses are separate to the annual compensation for Solomon and Waldron, which last year totalled $39mn and $38mn respectively. They also dwarfed recent awards paid to the chief executives of rivals JPMorgan and Morgan Stanley.

Inside Goldman, there have been concerns for weeks that investors would reject the so-called say on pay vote at the investment bank’s annual general meeting on April 23 in Dallas, according to people familiar with the matter. 

Goldman, whose top investors include Vanguard, BlackRock and State Street, said in a statement: “Competition for our talent is fierce. The board took action to retain our current leadership team, to sustain our firm’s momentum and maintain a strong succession plan. A 100 per cent stock based grant is fully aligned with long-term shareholder value creation.”

The advisory vote, adopted as part of the Dodd-Frank financial regulation reforms, is nonbinding. But if shareholders voted no, it would represent a public rebuke for the bank. 

At US banks, it is rare for investors to vote against compensation plans; in recent years, only JPMorgan Chase has faced such a rebellion. Shareholders were frustrated by a special award projected to be worth about $50mn for chief executive Jamie Dimon in 2022. JPMorgan subsequently said it would not give Dimon special awards in the future. 

At Goldman Sachs, shareholder support for its executive pay awards dipped to 86 per cent in 2024, from 94 per cent the year before.

Glass Lewis also warned shareholders about the new carried interest pay plan for executives. The complexity of the plan makes it harder for shareholders to assess pay arrangements before bonuses are paid out, the firm said.

>>> Barron’s Weekend Summary

Cover:
-In August 2023, Barron's convened a Tech Roundtable, where generative artificial intelligence was in its honeymoon phase. The Magnificent Seven and ChatGPT were less than a year old, and Nvidia had a third of its current $3T market value. Despite these early predictions, AI has upended corporate strategy and spending plans, opening the door to an age of rapid problem-solving, enhanced productivity, and machine-driven creativity. The AI hype cycle has entered a new phase, with investors looking for a payoff. As some of the early enthusiasm fades, tech stocks have entered a correction. Four veteran stockpickers focused on tech, Felise Agranoff, Gavin Baker, Tony Kim, and Denny Fish, provide insights on where to go from this phase of the AI hype cycle.

Interview:
-BP CEO Murray Auchincloss is focusing on the Gulf of Mexico to regain investor confidence and counter Elliott Management's activist influence. The Gulf has a history of producing wells and has been the site of the Deepwater Horizon disaster in 2010. BP has invested $7B in the Gulf from 2022 to 2025, including the Kaskida project to create its sixth hub. The company's production is expected to reach 400,000 barrels of oil equivalent a day, and the increased production should supercharge free cash flow, which can be converted into dividends and buybacks. This could help fend off Elliott, which has built a 5% stake in the company.

Tech Trader:
-no update

The Trader:
-Core PCE price inflation, the Fed's preferred measure, was higher than expected, despite the impact of tariffs not yet being measured. The University Of Michigan Consumer Sentiment survey also showed inflation expectations rising, leading to a 2% tumble in the S&P 500. The stock market drop resulted in major indexes finishing the week lower, with the S&P 500 falling 1.5%, the Dow Jones Industrial Average declining 1%, and the Nasdaq Composite dropping 2.67%. The Fed's two mandates are promoting price stability and maximum employment, and while core inflation remains sticky, an economic slowdown might be a bigger concern. Recent job reports have shown weaker job growth, and the uncertainty about the economy due to Trump tariffs could change when March's payrolls are released on April 4. Lower rates would put Powell and the administration on the same page, as Bessent and Trump are more focused on the 10-year Treasury than short-term lending rates the Fed controls. The 10-year Treasury yield is currently hovering below 4.3%, down from a 2025 peak of just under 4.8% from mid-January.
-The tech industry is experiencing a downturn, with big tech companies like Nvidia and Tesla struggling. However, China's Terrific 10, including Alibaba, Tencent, Meituan, Xiaomi, JD.com, NetEase, Baidu, BYD, Geely, and SMIC, are not. This raises the question of whether it is time to focus on their Chinese counterparts instead. According to YT Boon, Neuberger Berman’s head of thematic for Asia, the rise of cheaper artificial-intelligence technology developed by Chinese company DeepSeek may have kicked off a new wave of AI investment in China, benefiting leading Chinese companies. Boon argues that the rise of DeepSeek will lead to a significant change in how China’s government treats its big technology firms following a crackdown and increased regulations starting in 2020. Despite a massive rally this year, many of the leading Chinese growth stocks still look fairly cheap. Baidu is trading at just 10 times earnings estimates for this year, compared to a price/earnings ratio of 19 for Google owner Alphabet. Alibaba’s P/E is only 15 while Amazon trades at 31.5 times. WeChat owner Tencent trades for about 18 times, while Facebook and Instagram parent Meta Platforms is valued at 24 times. Electric-car maker BYD sports a multiple of 20—well below Tesla’s P/E of nearly 100.

Features:
-President Donald Trump's recent announcement of 25% tariffs on cars made outside the US has caused a surge in consumer and business sentiment, as well as a decrease in US trading partners' patience. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all fell in response, with auto stocks like General Motors and Ford Motor underperforming the broader market. The potential impact of tariffs on the economy and consumers is becoming increasingly concerning, as they could disrupt supply chains, deter investments, and raise consumer prices. The tariffs may also ignite trade disputes with Europe, Japan, and South Korea. Consumer and investment sentiment remains at the same levels as in the fall of 2022, with data points like the spike in February durable goods orders indicating a sense of uncertainty surrounding tariff policies. The recent stock market losses have made even wealthy investors less likely to spend, indicating a growing sense of uncertainty surrounding tariff policies.
-Carrier Global's stock has seen a 1.5% increase since February 19, after a 17% drop since October. The company's German heat-pump business, Viessmann, is expected to perform better than current forecasts, while onshoring and data center buildouts could spur growth and stock gains. However, risks remain, including the potential negative economic consequences of tariffs, which could reduce US software companies' AI investments, potentially impacting sales for Carrier and its peers Trane Technologies and Lennox International. Carrier has also seen lower sales from Viessmann, which it bought last January. Management forecasted flat revenue this year due to uncertainty about Germany's political election, which has implications for heat-pump subsidies. Analysts have reduced Carrier's 2025 sales estimates, which topped $26B a year ago, to $100 M below management's guidance midpoint of $22.75B.

Europe:
-President Trump is preparing for trade war with the European Union over its moves to tax and regulate US tech giants. A White House memorandum directed cabinet departments to defend American companies and innovators from overseas extortion, with Europe's digital services taxes as Exhibit A. There are concerns about America weaponizing digital infrastructure, according to Dimitar Lilkov, senior research officer at the Wilfried Martens Centre for European Studies. The EuroStack concept, a "bold vision for digital sovereignty" issued by the Centre for European Policy Studies, aims to achieve digital independence for Old Europe. However, the US accounts for 71% of global research-and-development spending on software and internet technologies and 70% of foundational AI models. European catch-up would cost EUR 300B ($323B), while the continent is already scrambling to find large sums for a defense upgrade.

Emerging Markets:
-No update

Commodities:
-US Steel, a materials producer whose takeover by Japanese rival Nippon Steel was blocked by former President Joe Biden, is surging after a report suggests the $14B deal could still be saved. The two companies are in talks with President Donald Trump, with Nippon offering to double investment in US facilities to $7B from $2.7B. Unions have opposed the deal, and Trump has stated in the past that he doesn't want it to go through. Trump has also raised tariffs on steel and aluminum imports since taking office, which has pushed up steel prices. US Steel was up 6.7% in premarket trading at $45.87, while Nippon Steel closed 2.1% lower in Japan.
-Copper prices, a reliable indicator of the economy, have seen a surge due to Donald Trump's tariffs. Futures for March delivery settled at a record $5.18 a pound, surpassing the previous all-time high set last May. However, analysts believe the surge is due to Trump's trade policies, rather than rising demand for wires and pipes. The President has threatened 25% tariffs on copper, prompting traders to stockpile the metal ahead of "Liberation Day," the April 2 deadline when many of the White House's levies are expected to take effect. Analysts don't expect the surge to last long, as the price effect can be expected to reverse at a later stage. Copper mining stocks have surged this year, with Freeport-McMoRan up 13% in 2025, Southern Copper Corporation up 12%, Rio Tinto American depositary receipts up 6.8%, and BHP Group ADRs climbing 2.4%. The spike in copper prices comes at a time when investors are concerned that tariffs could cause inflation and drag down growth. US consumer confidence plummeted to its lowest level in more than four years this month.

Streetwise:
-Consumers are increasingly turning to challenger brands, with food insurgents generating 27% of industry growth using brands that collectively hold less than 1% market share. Big Food is struggling due to obesity drugs and stretched consumer budgets, while private label goods are taking market share in 61% of food categories. Small brands are also taking market share in 67% of categories. Big publicly traded food companies have been losing share for two years, and the pace is accelerating. Small brands like Tony's, Tillamook County Creamery Association, and Black Rifle Coffee are taking market share in 67% of categories. Small brands are taking a larger share in coffee pods, while giants like Nestlé and Keurig Dr Pepper are still well behind. In clothing, California-based yogawear brand Alo, founded in 2007, is nine years younger than Canada's Lululemon. The brand is experiencing rapid revenue growth, with a town banning Alo clothes due to confusion between children and their mothers. Lululemon reported mixed fourth quarter financial results and guided below earnings estimates.