TheChek News Flow

The French fashion house joins the ranks of luxury brands backing the renovation of Italian landmarks.

LION’S GATE: Underscoring its ties to Venice, Dior has announced the completion of the restoration of the Porta Magna gate in Venice.

The French fashion house announced in April it was collaborating with the Venetian Heritage Foundation on its charity ball, designed to fund work on the monument as well as the ongoing renovation of the Ca’ d’Oro Museum on the Grand Canal.

Now it has unveiled the first images of the imposing gateway located in the Venice Arsenale, a complex of former shipyards and armories. Built in the mid-15th century, it is crowned with a sculpture of the Lion of Saint Mark, emblem of the Republic of Venice.

Surrounding the entrance are eight statues representing Roman mythological gods and goddesses, towering over an ironwork gate with bronze ornaments.

“Reflecting the grandeur of the City of the Doges, the Arsenale, conceived in the 12th century, was one of the most important shipyards in the world, expressing the economic, political and military power of the Serenissima,” Dior said in a statement.

Dior joins the ranks of luxury brands backing the renovation of Italian landmarks. Also in Venice, Renzo Rosso’s OTB Group funded the restoration of the Rialto Bridge, while in Rome, Tod’s supported the rehabilitation of the Colosseum; Fendi, the Trevi Fountain, and Bulgari, the Spanish Steps.

Dior has deepened its ties with Venice as an official donor of the Venice Biennale. For the last three years, it has supported Venetian Heritage’s gala evenings.

The partners are linked by architect Peter Marino, who was named chairman of the Venetian Heritage Foundation, a philanthropic organization dedicated to the restoration and preservation of Venice’s cultural treasures, in 2019.

He has designed countless stores for Dior parent LVMH Moët Hennessy Louis Vuitton.

The fund will buy a 40 percent stake in the French premium outerwear brand in a deal that values the company at more than half a billion euros.

MILAN — Permira is planting yet another flag in fashionland.

Permira Growth Opportunities II, a fund managed by the global investment firm, said Friday it has reached an agreement to buy a 40 percent stake in French premium outerwear brand K-Way from BasicNet, led by the Boglione family.

BasicNet will hold the remaining 60 percent stake. As per this agreement, K-Way’s enterprise value, including the IFRS 16 standard, is pegged at 505 million euros.

Permira is expected to support K-Way’s growth across its channels, with a particular emphasis on direct-to-consumer avenues, opening new stores, expanding its product range, reinforcing the brand’s leadership in France and Italy, but also to grow internationally.

“I consider this moment as crucial as only two others have been for BasicNet: the acquisition of Maglificio Calzificio Torinese in 1994 and the stock exchange listing in 1999,” said Marco Boglione, chairman and founder of BasicNet. “We worked hard for K-Way to be in this position and we are glad to welcome onboard Permira, one of the world’s most prestigious and successful investors in our industry.”

K-Way next year will mark its 60th anniversary, as it was founded in 1965 by Léon-Claude Duhamel in Paris and is known for its packable, category-defining waterproof jacket, the “Claude,” with its distinctive colorful zip and logo inspired by the French flag, and it has established itself as an outdoor-inspired lifestyle brand.

Sebastien Floch, principal and head of France at Permira, said the private equity firm “followed the business for a number of years and [we] have found that K-Way is a brand with real scarcity value, which encompasses everything the Permira Consumer team loves to back: an iconic brand and product, strong heritage and DNA, universal customer appeal and distinctive positioning. We look forward to bringing our experience and resources to the table to support K-Way’s continued success and its global expansion plans.”

K-Way was acquired by BasicNet in 2004 and since then it has forged links with designer brands including Saint Laurent, Fendi and Comme des Garçons, to name a few, and introduced runway collections presented at its Milan BasicVillage, unveiled in 2022. It has also kicked off art partnerships and activations at Art Basel in Miami and Artissima in Turin, Italy.

Stemming from the storied traditional clothing company Maglificio Calzificio Torinese, which was founded in 1916, BasicNet doesn’t produce or distribute the collections of its brands. Billing itself as a “fully web-integrated company” through a digitally advanced platform, it acts as a marketplace where manufacturers and distributors meet to do business. In particular, BasicNet, whose headquarters are in Turin, designs and develops its labels’ collections, then the company signs licensing agreements with international producers and distributors, which receive from BasicNet all they need to manufacture and sell the products, from research and development to global marketing.

In 2023, the Turin-based group reported consolidated revenues, comprising direct sales, royalties and sourcing commissions, of 147.7 million euros and earnings before interest, taxes, depreciation and amortization of 44.7 million euros.

Marco Boglione’s sons, Alessandro and Lorenzo, hold the role of executive vice presidents of BasicNet and CEOs of K-Way and touted the partnership with Permira, which will bring resources, expertise and a global network to accelerate the brand’s expansion, while maintaining its heritage and legacy.

BasicNet has been elevating the K-Way brand over the past decade by revamping stores, enhancing the customer experience and improving the design and quality of products.

Permira’s consumer team has deployed more than 15 billion euros to collaborate with more than 40 companies globally, investing in the likes of Golden Goose, Reformation, Gruppo Florence, Hugo Boss, Valentino, Dr. Martens and BestSecret.

“K-Way is a brand we truly admire, and we are really excited about the future prospects of the brand and partnering with BasicNet and the Boglione family,” said Francesco Pascalizi, partner and head of Italy at Permira.

The transaction is expected to close in the first quarter of 2025.

Left unfinished upon the artist’s death in 1918, the painting is a window into his technique, a captivating rendering of a woman’s face, and, in its incompleteness, a haunting symbol of its subject’s fate.

As visitors ascend the stairs of Vienna’s Upper Belvedere Palace, a collection of Gustav Klimt’s most famous paintings awaits them. Crowds flock to works from his “golden phase,” straining their arms for pictures of “The Kiss” (1908, completed 1909) or “Judith” (1901)—his pivotal, sensual works embellished in gold leaf. One section of the exhibit is dedicated to his feminine portraiture, a tall sign declaring him a “painter of women.” It is there that visitors stumble upon an outlier: the artist’s “Portrait of Amalie Zuckerkandl” (1917-18).

Klimt (1862-1918) made his fortune as a portraitist, draping bourgeois women in textured fabrics and jewel-like ornaments. In 1913 or 14, he was commissioned to paint Zuckerkandl (1869-1944), the daughter of Viennese playwright Sigmund Schlesinger, but their portrait sessions were short-lived. With the outbreak of World War I, Zuckerkandl left Vienna to work as a nurse in Lviv. And there were no more sessions before Klimt died in 1918 after contracting pneumonia following a stroke.

Left unfinished in the wake of his death, Zuckerkandl’s portrait is frozen in time. The artist’s technique is embedded in the portrait’s incompleteness—the subject is painted but her dress and arms are still being sketched in. The pencil markings remain clear, denoting where Klimt would undoubtedly have added intricate texture and pattern. In the absence of a detailed dress, we are drawn in by the subject’s facial features—the only ones rendered in full.

Zuckerkandl’s eyes forge a distinct emotional bond with the viewer as she gazes in perpetual wonder. Her cheeks are flushed, her lips parted—perhaps on the brink of uttering a thought. Her soft, contemplative countenance contrasts with her black lace collar and dark, messy hair—their harsh quality lending a brightness to her face.

Klimt’s sketching keeps Zuckerkandl forever in motion. The penciling of her arms lends life and movement to them, leaving viewers uncertain of where they truly land. Does her hand rest upon her lap or the arm of a chair? Within the ruffles of her dress, the burgeoning design invites us to imagine Zuckerkandl in our own way.

The manner in which the dress hangs is also intriguing. At a glance, Zuckerkandl’s bare shoulders may seem to emerge from her beige costume. But the volume and style of the dress also blanket her—forever obscuring Zuckerkandl from our full perception. Her state of being simultaneously veiled and unveiled is augmented by the vibrant greens, blues and yellows surrounding her. Zuckerkandl becomes almost regal, as if beneath the skirt of her dress she sits atop a velvet throne.

It is this stature that gives the painting the illusion of completeness, Zuckerkandl’s confidence intensifying Klimt’s artistic choices. Despite being so clearly unfinished, the portrait still manages to portray the essence of the sitter: a true testament to the artist.

While Klimt’s portrayal of Zuckerkandl is one of a kind in its own right, it is transformed by her history. Over 20 years after Klimt’s death, Zuckerkandl—who had converted to Judaism to marry her husband—was arrested by the Nazis under the Nuremberg Laws. In 1942, she was deported to Bełžec concentration camp in Poland, where she was murdered.

Her unfinished portrait thus becomes a tragic prophecy of her own life, which, like the painting, was cut off far too early. Zuckerkandl’s movement, her thoughts, her expression, are forever preserved in a moment before the inconceivable tragedy that redefined her legacy. As Zuckerkandl’s eyes connect with our own, we have a singular opportunity to engage with her, and even grieve her. While her story is one of millions, it is also starkly individual—a reality Klimt brings into focus through the lively flush of her cheeks, the raising of an eyebrow.

Objects, particularly artworks, have complex emotional power entangled in their history. Zuckerkandl’s portrait is no exception. What was simply another commission for Klimt is transformed by time and place. As Belvedere visitors stop to admire Klimt’s pencil work among his finished paintings, Zuckerkandl’s absorbing gaze compels them. A glance at the placard at her side and she is suddenly revealed in full: her life, her tragedy. The beauty of Klimt’s craftsmanship becomes somehow more staggering, poignantly juxtaposed with a brutal history.

Bill Nelson said account of multiple conversations between the billionaire and the Russian president was concerning

Elon Musk’s secret conversations with Vladimir Putin are drawing attention from top leaders at NASA, the space agency that increasingly relies on Musk’s SpaceX to carry out key missions.

The Wall Street Journal reported Thursday that Musk and Putin have been in regular contact since 2022. The discussions, confirmed by several current and former U.S., European and Russian officials, touch on personal topics, business and geopolitical tensions between Putin and the world’s richest man.

Putin asked Musk to avoid activating his Starlink satellite internet service over Taiwan as a favor to Chinese leader Xi Jinping, according to the Journal reporting.

“I don’t know that that story is true. I think it should be investigated,” NASA Administrator Bill Nelson said Friday at a Semafor conference in Washington, D.C. “If the story is true that there have been multiple conversations between Elon Musk and the president of Russia then I think that would be concerning, particularly for NASA, for the Department of Defense, for some of the intelligence agencies.”

Musk didn’t deny details in the Journal’s reporting but alluded to the story in multiple posts on his social-media platform X. In one instance, he posted two laughing emojis in response to a user joking that Musk could be a Russian agent.

A spokesman for SpaceX didn’t respond to a request for comment.

White House officials said they were aware of the Journal story on Friday. “I’ve seen the reporting out of The Wall Street Journal,” said John Kirby, a spokesman for the National Security Council. “I’m not in a position to corroborate the veracity of those reports, and we would refer you to Mr. Musk to speak to his private communications.”

Sen. Jeanne Shaheen (D., N.H.) said on X that the Defense Department “must investigate this and evaluate how it relies on commercial services like Musk’s.” Shaheen is a member of the Senate’s committee on foreign relations and its armed services committee.

Musk has deep business ties with U.S. military and intelligence agencies. SpaceX, which operates the Starlink service, works on classified government programs and is also the primary rocket launcher for the Pentagon and NASA. Musk has a security clearance, giving him access to certain classified information.

“If all of this is confirmed, it’s a very serious concern. Elon Musk is very deeply embedded in our national security apparatus,” said Rep. Jim Himes (D., Conn.), the ranking Democrat on the House Intelligence Committee.

Knowledge of Musk’s Kremlin contacts appears to be a closely held secret in government. Several White House officials said they weren’t aware of them. The topic is highly sensitive, given Musk’s increasing involvement in the Trump campaign and the approaching U.S. presidential election, less than two weeks away.

A representative for the Air Force, parent organization of the Pentagon’s Space Force, declined to comment. The National Reconnaissance Office, an intelligence agency that frequently works with SpaceX, including during a launch Thursday, declined to comment.

NASA and SpaceX have developed a close relationship, with the company launching major scientific missions for the agency on its rockets and transporting astronauts to and from the International Space Station. SpaceX’s Starship vehicle plays a key role in NASA’s lunar exploration plans.

Musk’s activities have at times generated worries at the space agency. After the executive purchased Twitter, the social-media platform he renamed X, NASA’s Nelson said he asked SpaceX President Gwynne Shotwell if that deal would divert from SpaceX’s mission. According to Nelson, Shotwell said that it wouldn’t.

NASA said separately on Friday that SpaceX returned three agency astronauts and one Russian cosmonaut from the space station.

How a Trump Victory Would Threaten Tesla’s Success in China

Elon Musk’s embrace of the former president complicates things in a vital market for the U.S. EV maker

Tesla increase; green up pointing triangle has had a special relationship with China allowing it to do things in the country that have been the envy of other U.S. automakers.

That connection will be tested if Donald Trump is elected to a second term in the White House and a bigger trade war breaks out.

Chief Executive Elon Musk’s embrace of the Republican might put little daylight between him and a second Trump administration in Beijing’s eyes, according to China experts.

It isn’t hard to see why Chinese officials might conclude the two men are united, especially as Musk is not just spending money to help get Trump re-elected but is campaigning for him across Pennsylvania. In turn, Trump, who has taken to mentioning Musk routinely by name during campaign events, has said he would appoint him to an efficiency commission aimed at reducing the government.

“The Chinese government, I think, are looking at that close relationship as a good thing and…Elon could be seen as an extension of the Trump administration and ultimately something that can help the Chinese government soften the U.S. stance on EVs and technology,” Tu Le, founder of the consulting firm Sino Auto Insights, told me in an email.

The importance of Tesla’s China business was on display this past week, when the electric-car maker reported third-quarter results, showing revenue from the country rising 13% from a year earlier. China is Tesla’s biggest market outside the U.S. and is home to its most productive factory, capable of making around one million vehicles a year.

“China continues to outperform U.S. and Europe,” Chief Financial Officer Vaibhav Taneja told analysts Thursday about the electric-vehicle industry. “And if there is something to be learned from that, this gives a signal of what is to come in other regions: As customers’ acceptance of EV grows, we feel that is the right strategy to build affordable and more compelling leads.”

The company’s Shanghai-area factory, which began production in 2019, changed the trajectory of Tesla, fueling dramatic expansion that has helped make it the world’s most valuable automaker. That giant factory’s construction required unprecedented access by government leaders, who were eager to welcome the world’s leading EV maker as China pushed to develop its own, homegrown EV industry.

Tesla became the first foreign automaker allowed to fully control its own factory in the country, while the likes of Volkswagen and General Motors had to form joint ventures with local partners in exchange for access to the fast-growing market.

Since then, nascent local rivals have become fierce competitors, threatening Tesla’s position.

All the while, Musk, walking an apparent tight rope, has been deferential to China. An example of this behavior includes his visit to the country during heightened tensions last year and his telling officials in Beijing that he opposed decoupling the world’s two biggest economies.

“It is very interesting to visit China in general and see the perceptions because…as much as, say, people in the U.S. might distrust China, likewise people in China in the government distrust America,” he said after the trip. “What tends to mitigate that distrust…are really conversations, especially in-person conversations.”

Trump’s relationship with China is less diplomatic.

His administration sought to bolster U.S. factory production by making Chinese imports more expensive with tariffs, leading to a sharp decline of imports. If he returns to the White House, Trump has said he would raise tariffs on Chinese imports to 60% or more—potentially coming at an inopportune time for China’s wobbly economy.

In the midst of escalating rhetoric, Chinese leaders in Beijing are “trying to figure out if there’s a possible counterweight, with top Chinese leaders talking about Elon Musk’s role in a Trump administration,” Ian Bremmer, founder of the New York-based consulting firm Eurasia Group, wrote recently in his newsletter.

It didn’t go unnoticed in Beijing, Bremmer noted, that after Musk met with Chinese Premier Li Qiang in April, Trump mentioned at the Republican National Convention the idea of allowing Chinese EV makers to build vehicles in the U.S. The former president has also reversed his opposition to a TikTok ban.

“Elon’s decision to align himself with Trump has essentially hitched his future in China on whether or not he can deliver politically,” Bremmer concluded.

Michael Dunne, a longtime China automotive industry consultant, said he sees some potential upside for Musk in a scenario under which his close alignment allows for deals that benefit all three parties.

“The Chinese see Trump as a man who loves to make a deal,” Dunne, chief executive of Dunne Insights, said. “I think that would play well” for Musk, he said.

Dunne added: “China and Tesla continue to do well in exporting from China and selling into the China market, and maybe there’s a deal to be struck where a Chinese manufacturer invests in Kansas and builds a brand-new plant, employs people, brings money.”

Tesla’s operations have already been affected by the prospect of a new Trump administration’s trade barriers.

In July, Musk said plans for a new assembly plant in Mexico were on pause. “We need to see just where things stand after the election,” Musk said. “Trump has said that he will put heavy tariffs on vehicles produced in Mexico so it doesn’t make sense to invest a lot in Mexico if that is going to be the case.”

In recent weeks, Trump raised another idea that could benefit Musk when it comes to Chinese competition. At a rally ahead of Tesla’s revealing of its Robotaxi, the Republican suggested he would prevent Chinese-made driverless cars from operating on U.S. roads.

“I will continue my first-term efforts to protect America from the threat of Chinese automobiles,” he said at an event in Detroit.

For his part, Musk in May criticized U.S. tariffs on Chinese EVs introduced that month by the Biden administration. “In general, I am in favor of no tariffs,” Musk told participants at an event in Paris.

Still, on the campaign trail in Pennsylvania this month, Musk has touted his support for Trump with language that might not appeal to the leaders in China.

“This really is a pivotal election, super big deal,” Musk told a crowd. “It’s really the difference between freedom and opportunity or oppression and…communism.”

UK must raise its climate ambition to restore global reputation, says adviser

Businesses urge Labour to adopt CCC recommendations and set out ‘ambitious and investable’ goals

The UK should commit to cutting its greenhouse gas emissions by 81 per cent by 2035 compared with 1990 levels, the government’s independent climate adviser has recommended.

The announcement comes as Labour prepares its first climate plan since coming to power, with the government expected to make an announcement about the UK’s future emissions cuts at the COP29 climate summit in Baku next month.

Countries are due to submit a new round of “nationally determined contributions”, or climate plans for up to 2035 to the UN by February 2025.

Responding to a request from energy secretary Ed Miliband for guidance on the country’s NDC, the Climate Change Committee said achieving an 81 per cent reduction in emissions, excluding shipping and aviation, would be a “fair and ambitious contribution to the Paris Agreement”, the landmark international accord to tackle rising temperatures.

“With climate damages already felt around the world, targeting an 81 per cent emissions reduction by 2035 sets the right level of ambition,” said Piers Forster, interim chair of the CCC, in a statement on Saturday.

He added that this could be achieved in a way that benefits jobs and the economy, providing the UK’s 2030 target to cut emissions by 67 per cent compared with 1990 was met.

Labour is under pressure to rebuild the UK’s reputation as a global leader on climate change and diplomacy after the previous administration’s rollback on net zero policies weakened its global standing in this area.  

Last month, UK foreign secretary David Lammy vowed to put climate change at the heart of Britian’s foreign policy, framing global warming and the nature crisis as the defining geopolitical challenges of the era.

The CCC warned in July that the UK was off track to achieve its 2030 target to cut emissions by 67 per cent compared with 1990, with only a third of the reductions required covered by credible plans.

In its latest advice, the CCC said an emissions cut of 77 to 78 per cent would be needed by 2035 if shipping and aviation were included compared with 1990 levels. This was in line with the body’s previous advice to the former Conservative government adopted as part of its sixth carbon budget.

More than 50 business leaders, including executives from Unilever, SSE, Ikea and BT Group, urged UK Prime Minister Sir Keir Starmer to follow the CCC’s advice in a letter published on Saturday.

They called for the government to set out an “ambitious and investable” 2035 NDC at COP29 in Baku, but said Labour needed to go beyond targets and embed these in policy and implantation plans.

“By setting an NDC that is backed up by an updated and credible UK net zero strategy, which includes strong and long-term sectoral policies and clear timelines, we can work collaboratively to create a virtuous circle of private investment, accelerated action, and increasing ambition,” they wrote.

Andrew Prag, managing director of policy at the We Mean Business Coalition, a group bringing companies together to push for ambitious climate action, added that “detailed implementation plans for how the NDC will be delivered in priority sectors, like heating and buildings, will be vital”. 

Labour has pledged to become the first major economy to decarbonise its energy electricity system by 2030, and to create a new state-owned company GB Energy to channel investment into clean energy.

The CCC said an “ambitious UK NDC announced at COP29 will show UK climate leadership”, adding that its recommendation was informed by the latest science, technological developments, and the UK’s national circumstances.

Carla Denyer, co-leader of the Green party, said next week’s Budget would be “mission critical to meeting the CCC’s recommendations”.

The Department for Energy Security and Net Zero said: “We are grateful to the Climate Change Committee for this expert advice, which we will consider carefully before we announce an ambitious NDC target at COP29 to help limit global warming to 1.5 degrees.”

Employers’ contributions set to increase by 2 percentage points in next week’s Budget

Rachel Reeves is set to raise up to £20bn by increasing employers’ national insurance contributions in next week’s Budget, in a move that will cover about half of the £40bn funding gap she is trying to fill.

The chancellor will raise the employers’ rate of national insurance and cut the threshold at which employers start paying the tax, government officials said, in a big raid on company profits.

The Conservatives will attack the rise as “a tax on jobs” but Reeves will try to give it political appeal by saying the funds would go towards rebuilding the NHS.

Reeves had ruled out raising national insurance rates paid by employees — defined as “working people” in the Labour manifesto — but had made it clear that employers were not covered by the pledge.

Government officials said the rate of employers’ NI contributions would increase by up to 2 percentage points — a change that could raise about £17bn according to the HM Revenue & Customs’ “ready reckoner” — although the rate rise could be slightly less than that.

Employers currently pay NI of 13.8 per cent on a worker’s earnings above £175 a week. Government insiders said the salary threshold at which employers pay NI contributions would be cut, a move first reported by the BBC.

Reeves has rejected the idea of levying employer NICs on pension contributions. That idea was criticised by former Labour minister Lord David Blunkett, who said it would lead to bosses cutting pension contributions to staff.

The total amount raised by the employer NIC increase will be reduced because Reeves will reimburse public sector employers — such as the NHS — for their extra staff costs.

On Saturday Sir Keir Starmer insisted that he did not mislead the public in Labour’s manifesto, which did not set out the full extent of the tens of billions of pounds of tax rises expected in next week’s Budget.

The manifesto only promised a handful of niche tax rises on private schools, private equity and the oil and gas industry. 

The party said in the run-up to the July election that “working people” would not face tax rises. But the Budget is expected to include a rise in capital gains tax on shares, an extension of a freeze in income tax thresholds as well as the jump in employers’ national insurance.

Speaking at the Commonwealth heads of government meeting in Samoa, the prime minister said: “We were really clear in the manifesto and in the campaign that we wouldn’t be increasing taxes on working people and spelt out what we meant by that in terms of income tax, in terms of NICs and in terms of VAT, and we intend to keep the promises that we made in our manifesto.”

Reeves has identified a £40bn funding gap in her Budget plans — the amount she says she needs to raise from tax rises or spending cuts to meet her fiscal “golden rule”, which says all day-to-day spending should be covered by tax revenues.

Separately, Reeves intends to increase borrowing by about £20bn to fund capital investment in areas such as green energy schemes, hospitals and schools by loosening a different fiscal rule covering overall debt levels.

Alongside the Budget on Wednesday Reeves will seek to reassure business that big tax rises will not set the pattern for the rest of the parliament. In an effort to provide “tax certainty” for the rest of the government’s term, she will set out a “corporate tax road map”.

Officials say this will include a cap on corporation tax at 25 per cent for the rest of the parliament — a Labour manifesto commitment — and a new system of “advance clearance” for investors on tax rules for big projects.

One official said the package of tax increases would be a “one and done” operation. An ally of Reeves said the chancellor wanted to “wipe the slate clean” and give business the clarity to plan for the future.

But a policy adviser at a large business lobby group said they had been given no assurance the government would not increase taxes in future Budgets: “They have not said anything about future fiscal events.” 

The Labour government says it needs to increase taxes to stabilise the public finances and step up investment in infrastructure and public services.

Next week’s road map is not expected to contain any commitments on further changes to CGT or business rates, which will disappoint some business groups.

Government insiders said Reeves’ road map would retain the “full expensing” capital allowance regime introduced by Rishi Sunak’s Conservative administration, which seeks to provide tax breaks for investments that improve productivity.

The current system of tax credits for research and development will be maintained.

Reeves will also announce plans for a new unit within HMRC to provide investors with “advance clearance” — or help in understanding how they would be taxed on future big projects. 

One government official said the unit would give “greater certainty over existing tax rules” but ruled out preferential tax treatment for large investors. 

A senior business lobbyist said the unit could help push some big investments over the line, since “the UK tax system is seen as increasingly complicated and difficult to navigate”.

While cautioning that the move was not a “game-changer”, the lobbyist said: “Adding certainty and clarity can only be a good thing.”

A tax partner at a Big Four accounting firm said the move would make the UK more attractive to investors, since HMRC had become “quite litigious” with big companies including in some cases where they had followed the tax authority’s guidance.

While the UK gives multinationals advance clearance in limited areas such as transfer pricing, it gives less reassurance than countries such as Australia, the Netherlands and Luxembourg. 

Reeves is set to hold consultations on the design and scope of the new service early next year. 

David Gauke, a former Tory Treasury minister who oversaw business tax road maps in 2010 and 2016, said the exercise was particularly useful for large corporates making big long-term investment decisions.

“What’s really important is not what you promise to do, but what you promise not to do,” he said. “And of course it’s only worthwhile if you stick to your promises.”

Ferrari’s Not-So-Secret Strategy: Less Is More

Not just anyone can buy a Ferrari. The Italian sports-car maker has long aimed to foster its image of exclusivity by selling fewer cars than the market demands. It’s a strategy that limits sales growth but shields Ferrari from booms and busts.

Ferrari stock is up nearly 43% year to date to $484. In a recent note, J.P. Morgan says the stock could hit $525 by next December. Ferrari’s strength contrasts with other luxury car brands, including Mercedes, BMW, and Porsche, slowed by weak Chinese demand. Ferrari sells less than 10% of its cars in China, notes J.P. Morgan, sacrificing potential growth to maintain exclusivity. As founder Enzo Ferrari famously said, “Ferrari will always deliver one less car than the market demands.”

Ferrari sells only about 14,000 cars a year. Profit growth comes from improving margins, with some new models selling for 20% to 30% more than previous versions. Ferrari customers don’t seem to mind, and unmet demand makes it easy for Ferrari to shift deliveries from China to other markets.

That said, Ferrari shares trade at 58 times earnings, just below Tesla’s 62 and an order of magnitude above Mercedes-Benz Group

at five. “In one indication that the pace of innovation had begun to accelerate, Ferrari has filed more patents in the last three years than in its first 74,” notes J.P. Morgan. But patents won’t save Ferrari if the next generation of car enthusiasts are more interested in computing power than big, loud engines.

Europe looks to be sticking its soft landing.

The European Central Bank delivered a second interest rate cut in as many meetings on Oct. 17, lowering its key deposit rate by 0.25% to 3.25%. Investors can assume five more cuts down to 2% by the end of next year, says Davide Oneglia, director of European and global macro at TS Lombard.

The ECB is easing the brakes on an economy that is already perking up. The 20 nations that use the euro have shown aggregate growth for three straight quarters, after scraping along the edge of recession for most of 2023.

Real wages are growing again and will expand by more than 3% next year, Deutsche Bank predicts. Even German industrial production, the continent’s weak underbelly, should rebound next year after a 2.5% contraction in 2024, according to Deutsche Bank.

A lot of this good news is already in the price for stocks. The iShares MSCI Eurozone exchange-traded fund has climbed more than 20% over the past year. The market writ large is 3% undervalued on a discounted cash-flow basis, compared with 3% overvaluation for U.S. equities, says Michael Field, European equity strategist at Morningstar. Hardly numbers to bet the farm on.

That could mask richer opportunities in selected pockets, though. Builders are an obvious bet as the cost of borrowing falls. Deutsche Bank expects double digit earnings growth for the sector next year. Shares in Vinci, the Paris-based euro zone construction giant, have crept up 4% over the past 12 months, a significant underperformance.

European consumers are locked and loaded to spend as the upturn in real wages meets savings rates near a 20-year high (the pandemic spike excluded). French households are socking away 18% of their disposable income, compared with 5% in the U.S., reports Irene Lauro, a European economist with Schroders.