>>> Stoxx 600 Pre-Market Indications

  • Reckitt (3RB TH) +1.5%
  • Varta (VAR1 TH) +1.2%
  • Signify (G14 TH) +1.1%
  • Thyssenkrupp (TKA TH) -1.2%
  • Lanxess (LXS TH) -1.2%
  • HelloFresh (HFG TH) -1.2%
  • Rheinmetall (RHM TH) -1.2%
  • Mowi (PND TH) -1.5%
  • Lufthansa (LHA TH) -2%
  • Barratt (3BA TH) -3.6%

WWD : Chanel Switches to Audience-Free Format for Next Show

Chanel Switches to Audience-Free Format for Next Show
The brand will film its Métiers d'Art show at the Château de Chenonceau in the Loire Valley and is set to reveal it online on Dec. 3.

CASTLE STYLE: Chanel will go ahead with its planned Métiers d’Art show at a château in France on Dec. 1, but there won’t be any guests in attendance.

Instead, the brand will film the display at the Château de Chenonceau in the Loire Valley, and will unveil creative director Virginie Viard’s collection on Chanel’s web site and social media platforms on Dec. 3 at 7 p.m. CET, a spokeswoman for the house said.

When Chanel initially announced its plans for the show in mid-September, it said it hoped to welcome guests at the event, unless the situation and consequent health obligations changed in the interim.

Since then, France has entered its second lockdown in a bid to halt the spread of the coronavirus pandemic. The measures are officially in place until Dec. 1, although the government has already announced it will maintain strict restrictions on individual movement beyond that date.

Chanel follows in the footsteps of Versace, which switched from a physical show to a digital format shortly before the start of Milan Fashion Week in September. The Versace show was nonetheless a hit, generating buzz worth $11 million, according to data analytics firm Launchmetrics.

Traditionally a traveling show that has alighted in destinations — including Shanghai; Rome; Edinburgh, Scotland; Salzburg, Austria, and Dallas — Chanel’s Métiers d’Art show was held in Paris last December in the wake of the death of its longtime creative director Karl Lagerfeld earlier in the year.

Chanel was one of the first major brands to return to the catwalk this fall, holding a show with 500 guests at the Grand Palais on Oct. 6 that was one of the highlights of Paris Fashion Week.

>>> TradeGate Pre-Market Indications

DAX:
  • Deutsche Boerse (DB1 TH) +0.7%
    • Deutsche Boerse to Buy 80% of Institutional Shareholder Services
  • HeidelbergCement (HEI TH) +0.6%
    • HeidelbergCement Reinstated Buy at Deutsche Bank; PT 77 euros
  • Deutsche Bank (DBK TH) -0.6%
  • Allianz (ALV TH) -0.6%
MDAX:
  • Software AG (SOW TH) +6.6%
    • Software AG Boosts FY DBP Cloud & IoT Product Bookings Forecast
  • Varta (VAR1 TH) +1.5%
  • HelloFresh (HFG TH) -1.2%
  • Lanxess (LXS TH) -1.3%
  • Thyssenkrupp (TKA TH) -1.3%
  • Lufthansa (LHA TH) -1.5%
SDAX:
  • SAF-Holland SE (SFQ TH) +3%
    • SAF-Holland SE Boosts FY Adjusted Ebit Margin Forecast
  • SMA Solar (S92 TH) +2%
  • Tele Columbus (TC1 TH) +1.3%
  • Encavis (CAP TH) +1.1%
  • Leoni (LEO TH) +0.8%
  • Deutsche PBB (PBB TH) -1.3%
  • Nordex (NDX1 TH) -1.5%
  • Schaeffler (SHA TH) -2.2%
    • Schaeffler Sees Lower End of Target Ranges Reached by 2023
  • Jenoptik (JEN TH) -2.4%
    • Jenoptik Cut to Hold at LBBW; PT 27 euros
  • Global Fashion Group (GFG TH) -4.6%
    • Global Fashion Share Sale Book Covered on Full Deal Size: Terms

WWD : Coed Design Duos Are Proliferating in Fashion

Coed Design Duos Are Proliferating in Fashion
Observers say duos can better shoulder the demands of creative leaders, and dialogue fosters strong design outcomes.

Are two heads better than one? And mixed company even better?
That seems to be the case as coed design duos proliferate across women’s fashion, with Miuccia Prada recently inviting Raf Simons to become her co-creative director; Kim Jones headed to Fendi to work beside Silvia Venturini Fendi, and Joseph and Faith Connexion leveraging the power of two in their recent creative hires.
Those new combos plump up an already impressive number of coed duos. That configuration is reflected in 7 percent of the brands listed on the official fashion calendars for New York, London, Milan and Paris, according to a tabulation by WWD, which examined the February/March schedules while considering current design leadership.


Of the 265 fashion houses listed, 51 percent are led by men, 38 percent by women, with the balance a mix of male duos, female duos and collectives or studios.
Why so much doubling up? Brand leaders, academics and headhunters suggest that the onerous demands on today’s creative directors is perhaps better shouldered by two people, with the dialogue fostering more dynamic and nuanced designs in tune with today’s fashions, less gender-specific than ever, and shifting values and priorities.
“A mix of different points of view is important now more than ever to create a dynamic collection that speaks to a connected global market,” said Tom Scott, an assistant professor of fashion design at FIT in New York. “I don’t feel it’s necessarily different gender identities any more than it’s differing points of view that affect the design outcome of a collection. A mix of nationalities, ethnicities, age groups and socioeconomic backgrounds all contribute to a broader, more modern perspective of design.”


According to Karen Harvey, chief executive officer of the Karen Harvey Consulting Group, “it is really quite lonely and sometimes isolating” for a solo creative director, even if he or she operates within a great team. “Creative director couples seem, in general, to be a bit lighter about the whole thing. I mean that in a really positive way, that their ongoing dialogue seems to be really useful.
“I do see that levity in the ability to have someone to talk to, bounce ideas off of, really connect, debate, but share a vision that is really dynamic,” she added.
Lamenting the historic dearth of female creative directors in fashion, Harvey applauded the advent of more coed duos, which results in “a greater female representation inside brands…. What’s really happening now is the empowerment of women, the absolute requirement for diversity.
“I don’t think it’s like, ‘Let’s bring women in to ground the clothes.’ I think it’s, ‘Let’s bring a woman’s voice into the brand. And not have a male voice tell a woman what she wants to wear right now.’ It’s not about making the collections more wearable,” she said, countering the stereotype that men conjure fantasies in women’s fashions, while women take a more practical route.
According to a 2018 study by the Design Museum in London using U.K. data, only 22 percent of people working in occupations associated with design were women. That represented an increase of only 4 percent since 2004.


Among recent developments, in October Joseph named husband-and-wife team Anna Lundbäck Dyhr and Frederik Dyhr as co-creative directors. The former had joined Joseph in November 2018 after holding senior design roles at Bottega Veneta, Lanvin, Uniqlo and Cos, while the latter was previously creative director for men’s wear at Tommy Hilfiger.
“Together they bring an invaluable combination of creativity and commercial thinking,” Joseph chief executive officer Barbara Campos noted at the time.
Anna Lundbäck Dyhr and Frederik Dyhr of Joseph Courtesy of Joseph
In an interview, Campos argued that pressure is mounting on fashion’s creative leaders.
“First of all, everything is very fast-paced, everything is visible, global and instant. So we constantly ask more from them, and faster,” she said. “And maybe for two people, it’s much more manageable. They can just divide and conquer responsibilities amongst them.
“Also, when you have a male and a female working together, you’ll have different perspectives. You have different logics, different sensibilities. And so at the end, what you get is a more rounded 360-degree vision. And I think that diversity is an enormous asset actually,” Campos explained, also flagging that Joseph’s fashion sweet spot is the interplay of masculine and feminine elements.
The executive also wished to support the Dyhrs’ “lifestyle choice.”
“I think that is respectful of wanting to have balance of work life, and a happy family life,” she said. “It is definitely something that I want to encourage and promote within our business because I think we’re going to get the best out of people by doing so.”
Meanwhile, designers working in coed duos say they relish the to-and-fro, which ultimately yields creative designs that are better in tune with women’s lifestyle needs and bodies.
“For us it brings a reality to our work. We are both very creative and love to design without commercial constraints, but when you are discussing ideas and fit, having both perspectives really helps,” said Justin Thornton, who founded London-based Preen with his wife Thea Bregazzi in 1996. “Thea will always bring a positive reality to fit for real women.
Justin Thornton and Thea Bregazzi on the catwalk. Aitor Rosas Sune/WWD
“Sometimes I design pieces that we love the feel of, but practically they don’t work for many body shapes. Thea will take this idea to the next level and make sure we keep the key elements of the design but bring a reality to it,” he explained in an interview. “I see things very much from a visual perspective where Thea will also think about the reality of wearing the designs.”
Beckett Fogg, who cofounded New York fashion brand Area in 2014 with Piotrek Panszczyk, agreed “the act of discussion is what informs and propels the design and business forward.”
“Having a male and female perspective adds a layer of depth to our discussions,” she explained. “Piotrek functions as the creative director, and I try almost everything on. We are always interested conceptually and practically in dualities.”
Academics say they encourage all kinds of collaboration, and noted that coed duos have a unique dynamic.
“If you are a woman designing women’s wear, you have a much clearer understanding of other women’s lived experiences and therefore the ability to use that information to inform your design decisions, likewise with men designing men’s wear,” said Andrew Groves, a professor of fashion design at the University of Westminster in London.
Piotrek Panszczyk and Beckett Fogg of Area Andrew H. Walker/WWD
Groves noted that doesn’t necessitate a “dialogue between practicality and fantasy, but it allows for that tension within design to be explored.”
“The best work happens when people are challenged, and they have to justify their opinion. This is incredibly helpful within a design partnership when this critical reflection can occur in a supportive atmosphere. This testing of a design proposition before its emergence into the marketplace and being out in front of buyers, merchandisers and consumers enable for a more pragmatic and ultimately successful outcome,” he continued. “With solo designers, there is a risk of being unaware of their own inherent biases and therefore less likely to see the possibility of other ideas that are outside of their own experience.”
In September, Faith Connexion appointed Alexandre Bertrand and Myriam Bensaid as its first creative leading duo, with ceo Maria Buccellati flagging the complexity of the creative director role and arguing that “relying on an internal team led by one creative director no longer worked for us.”
She described the two 32-year-olds as “best friends” who have worked on-and-off for the brand and bring different talents to the table, with Bensaid having already designed some of Faith’s best-selling men’s collections, and Bertrand more focused on women’s in his career.
That said, “I want this brand to have a genderless kind of feel where you feel free. It’s not about being feminine or masculine, it’s this mixture of liking both kind of styles. Non-gender is the future,” Buccellati added. “I think the future of the brand should be multifaceted, it should not be one way.”
Alexandre Bertrand and Myriam Bensaid of Faith Connexion Courtesy of Faith Connexion
Buccellati, who started her career as a model for Dolce & Gabbana, realized that the idea of fashion “duets” is rooted deeply in her psyche, convinced that it yields more interesting results.
“Most designers are very feminine, or they can be very masculine whereas [Myriam and Alexandre] have that twist, and together, they’re brilliant. And I think it’s a positive thing. Today, we are multifaceted people, we’re multistyle, we love to explore,” she said.
Headhunters allowed that some brands may be reticent to take the path of coed duos.
“It’s a bigger risk, in some ways. It would feel like a double loss if it doesn’t work,” Harvey said.
That said, “I actually think it’s worked out in more cases than it hasn’t,” she added, citing as a great example Luke and Lucie Meier at Jil Sander, who joined the Milan-based brand in 2017 and have received broad acclaim. “I think they’re doing a wonderful job and their personalities are very different, but very complementary.”
Lucie Meier was previously co-designer of Dior with Serge Ruffieux following the exit of Raf Simons, while her husband Luke is the cofounder and designer of men’s label OAMC.
Asked if she could detect the impact of Simons on the spring-summer 2021 Prada collection, Harvey said “you could really see that dialogue, and that’s what I think is inspiring at the moment.”
Groves confessed to being “obsessed” with Prada and Simons working together, and spied more of an artistic clash than a gender-based one.
Luke and Lucie Meier doing castings in Paris a few days ahead of the Jil Sander fall 2020 runway show in Florence. Simone Lezzi for WWD
“Raf has an exceptional understanding of how men’s wear and uniforms have historically used insignia, symbols, and semantics to enforce their hegemonic power,” he explained via e-mail. “While we don’t know precisely how the design process worked, I think it is significant that Prada’s iconic women’s wear ugly prints from 1996 served as a foundation on which additional graphic interventions were imposed. In this respect, it reminds me of the collaborative works between [Andy] Warhol and [Jean-Michel] Basquiat, and the tensions that their working process ultimately exposed.”
In Harvey’s view, the most confident creative directors are open to collaboration, and younger generations are also very open to creative tie-ups, “an important next step in the dialogue of fashion and culture.”
Headhunters noted that it’s against the law for them to recruit based on a preferred gender. But are brands open to the idea of coed duos?
“The bigger brands tend to resist it. And the more privately held brands seem more open,” Harvey opined.
Emma Davidson, managing director of London search firm Denza Limited, said she has placed creative duos before — and not without incident.
“In one instance, I was asked by the client to propose men’s wear creative directors. There was a very strong candidate who had always designed with another individual who specialized in women’s wear,” she recounted. “The ceo was a bit of a maverick so was open to any suggestion and the company ended up placing the duo together. I bumped into them at a party later and the women’s wear specialist screamed at me hysterically in front of numerous people because I had not approached them in the first instance for the role.”
In her estimation, a main consideration for clients is the cost — and a duo typically costs more.
“The client will pay more overall, the package will be split over the two candidates and each candidate will ultimately receive less than if an individual had been employed on their own,” she noted.
That said, Davidson stressed that fashion is a collaborative effort, whether or not the creative face of a brand is one person or two.
“Maybe someone gets to do the starting point and have the final say, but the journey between the points is the work of many. I am not sure it matters having one or two people facing the press or taking pole position,” she said, noting that most solo creative directors have an integral number two designer, or a creative muse.
Kim Jones and Silvia Venturini Fendi Jones photo by Nikolai von Bismarck; Venturini Fendi by Simone Lezzi/WWD
“For example, Kim Jones is an absolutely astounding creative director. But then there is Lucy Beeden, who has been Jones’ right hand from the beginning. Pieter Mulier and Raf Simons is another quick example,” she said, also mentioning Lady Amanda Harlech as a muse to John Galliano and Isabella Blow to Lee Alexander McQueen. “Creative directors don’t come in a plastic bubble on their own — they bring their creative universe.”
“Brands want the best talent as creative director, whether it is one individual, a duo or a collective,” concurred Floriane de Saint Pierre, who operates a namesake search and consulting business in Paris. “We always focus on the talent and its alignment with the brand. A talent can equally be a person, a duo or a collective.”
To wit: De Saint Pierre recently placed Études Studio, a collective, at the head of French outdoors brand Aigle.
“What is probably new today is that duos, trios or collectives are launching fashion brands not under their names, but with a different name, that reflects most of the time a concept, e.g.: Afterhomework, Études Studio, Gmbh or Vetements,” she added.
Groves said he encourages creative partnerships at fashion school.
“The hardest lesson for a student to learn, and some never learn it, is that they are not designing for themselves. That to meet the needs and desires of someone else is central to the role of a designer, and that the quicker they find creative partners, the better their work will be,” he said.
FIT’s Scott said he encourages students to collaborate on in-class projects and between different departments.
“Two former students from my spring 2020 class have formed a partnership since graduation and are developing a line of T-shirts and accessories,” he noted. “Being in the position of making design decisions is always onerous. In the classroom we discuss how as young designers they will have to be adaptive as part of a collaborative design environment, working with others to achieve set design goals.”
Echoing others interviewed, he lauded the early design duo of Vivienne Westwood and Malcolm McLaren.
“Other than thinking that they made the coolest clothes ever, I think they were successful in sharing the responsibility of design and promoting their subversive and groundbreaking collection,” Scott enthused.
Designers Malcolm McLaren and Vivienne Westwood WWD
Mike Eckhaus and Zoe Latta met as students at the Rhode Island School of Design, and founded their bicoastal label Eckhaus Latta in 2011. Area’s Fogg and Pansczczyk met at Parsons while pursuing their master’s degrees in Fashion Design and Society and decided to set up a label together.
“Going at it alone didn’t feel as interesting from a design proposition or business model. There is so much more opportunity and potential when ideas and minds come together,” Fogg said. “The initial prospect of starting a brand is so overwhelming, you really need a support system in place from the start.”
In her view, the “saturation of our industry has led and will lead to more consolidation and collaboration. Area has never been about us specifically as individual designers: It has evolved in response to our experiences and our audience. That’s why we chose a name that implied a starting point — a place where people and ideas come together,” Fogg added.
According to Zoe Broach, head of fashion at the Royal College of Art in London, collective approaches are “reflective of our times and feels the right way to commune to design and express our identities with care.”
“Area, Faith Connexion and the younger brands talk about the human connection, and the differences in design, connecting to others, talking about their local choices, being active in a community and not just creating more product for a brand,” she said. “These are new voices entering the fashion industry that begin to reflect the new ways of seeing.”
These emerging designers, she continued, “are all so deeply aware of the climate, race and labor issues of our industry and so building teams that might even include legal knowledge will create new healthy disruptions and new landscapes to explore fashion as design which has care across its response and outcome.

>>> Europe : Brokers Upgrades & Downgrades -18th of November 2020

>>> Up
* Acerinox Raised to Outperform at Credit Suisse; PT 9.50 euros
* Dometic Raised to Buy at ABG; PT 120 kronor
* Grafton Raised to Buy at Peel Hunt; PT 950 pence
* H&M Raised to Market Perform at Bernstein; PT 175 kronor
* Intermediate Capital PT Raised to 2,000 pence at Jefferies
* Intesa Sanpaolo Raised to Buy at Goldman; PT 2.40 euros
* LafargeHolcim Raised to Buy at Deutsche Bank
* Legrand Raised to Sector Perform at RBC; PT 70 euros
* Lindt & Spruengli Raised to Buy at Goldman
* Orpea SA Raised to Hold at Berenberg; PT 100 euros
* Rathbone Brothers Raised to Buy at Berenberg; PT 1,850 pence
* Paradox Interactive Raised to Hold at SEB Equities
* Scor Raised to Outperform at RBC; PT 37 euros
* Solvay Raised to Overweight at Morgan Stanley; PT 102 euros
* Stabilus Raised to Buy at Stifel; PT 75 euros
* Tesla Raised to Overweight at Morgan Stanley; PT $540
* Virgin Money UK Raised to Overweight at Barclays; PT 165 pence
* Whitbread Raised to Buy at Deutsche Bank; PT 3,500 pence

>>> Down
* Compass Cut to Neutral at UBS
* Compass Cut to Neutral at Goldman
* EasyJet Cut to Hold at Berenberg; PT 820 pence
* Jenoptik Cut to Hold at LBBW; PT 27 euros
* RTL Cut to Hold at LBBW; PT 41 euros
* UBS Cut to Neutral at Goldman; PT 15.20 Swiss francs
* Vetropack Cut to Add at Baader Helvea; PT 62 Swiss francs

>>> Initiation
* CRH Reinstated Buy at Deutsche Bank; PT 39 euros
* HeidelbergCement Reinstated Buy at Deutsche Bank; PT 77 euros
* NENT Rated New Buy at Berenberg; PT 505 kronor
* Saint-Gobain Reinstated Buy at Deutsche Bank; PT 48 euros
* THG Holdings Rated New Overweight at Morgan Stanley
* Treatt Rated New Buy at Peel Hunt; PT 775 pence

>>> Call
* Orpea ‘Surprisingly’ Resilient, Berenberg Upgrades and Lifts PT
* Solvay Recovery Path Clearer, Up to Overweight: Morgan Stanley
* THG Beauty Business Attractive, Risks to Upside: Morgan Stanley
* U.K. Wealth Managers Still Cheap, Rathbone Raised: Berenberg

>>> What to look at today - 18th of November 2020

Most Asian stock markets were steady Wednesday, while U.S. futures slipped as investors weighed escalating Covid-19 cases against optimism over a vaccine. Japanese equities dropped after Tokyo reported a record number of daily virus infections.
Stocks edged up in Hong Kong and Australia. European futures fell. The S&P 500 pulled back from a record high earlier. Pharmacy chains were among the worst performers after Amazon.com Inc. unveiled a new push into prescription drugs. Treasury yields and the dollar extended declines after Federal Reserve Chair Jerome Powell said the U.S. economy still has a “long way to go” before it fully recovers from the pandemic.
China stocks posted modest gains, shrugging off news that the U.S. Securities and Exchange Commission is pushing ahead with a plan that may kick Chinese companies off U.S. stock exchanges. China’s 10-year government notes are set for the highest since May 2019 amid concerns about tighter monetary policy as the economy recovers from the pandemic.
US After Hours  LZB +4.9% up on earnings; NCLH -5.8% falls on stock offering; PII -4.5% heads lower as its CEO will step down

Nikkei -1.10% Hang Seng +0.10% CSI -0.27% Shanghai +0.03% Shenzen -0.52%

Eur$ 1.1875 CNH 6.5417 CNY 6.5488 JPY 103.98 GBP 1.3259 CHF 0.9105 RUB 76.2875 TRY 7.7422 WTI$ 41.24 -0.48%

S&P -0.49% Nasdaq -0.35% EuroAtoxx -0.38% FTSE -0.53% Dax -0.35% SMI


Macro :
- World’s Biggest Oil Firm Saudi Aramco Kicks Off Bond Sale (3)
- Europe Car Sales Slide 7.1% on Reimposed Virus Restrictions

Keep an eye on :
- ADYEN NA : Adyen Holder to Sell 200,000 Shares in Placement: Terms
- AMUN FP : Amundi and BNP Considering Bids for SocGen’s Lyxor: Reuters
- AZN LN : Thai Cabinet Approves Budget to Secure Covid-19 Vaccines (1)
- BAS GY : BASF Wins Ruling on Ingevity Emission-Control Patent
- BAYN GY : Bayer Faces 21-State Backlash Over Water Pollution Settlement
- BNP FP : Amundi and BNP Considering Bids for SocGen’s Lyxor: Reuters
- BRE IM : Brembo to Buy SBS Friction for EU30M in Cash
- IAG LN : British Airways, American to Offer Virus Tests on Long Flights
- CCL LN : Carnival Reports Equity Offering, Buyback of Convertible Notes
- ALCLS FP : Cellectis Says FDA Lifts Clinical Hold on Melani-01 Study
- CNHI IM : CNH’s New CEO Wine May Revive On-Highway Spinoff Plans: React
- CRDA LN : U.K. Chemical Producer Croda Is Said to Scout for Acquisitions
- DB1 GY : Deutsche Boerse to Buy 80% of Shareholder Advisory Firm ISS
- EOAN GY : E.On CEO Johannes Teyssen Won’t Extend Contract: Handelsblatt
- EQT SS : HusCompagniet Valued at DKK 2.34 Bln Ahead of Copenhagen IPO
- ERICB SS : Ericsson CEO Says Sweden 5G Ban on Huawei Limits Competition: FT
- G IM : Generali Sticks With 2021 Targets Even After Virus Hits Income
- GSK LN : FDA Grants ViiV Healthcare’s HIV PrEP Breakthrough Designation
- GFG GY : Global Fashion Group Offering Prices 16.5m Shrs at EU7.30/Shr
- HL/ LN : Hargreaves Lansdown Stake Sale by Co-Founder Is Covered: Terms
- LEAS BB : Leasinvest 9M EPRA EPS EU4.84 Vs. EU5.31 Y/y
- ML FP : South America Car OEM Tire Oct. Demand Drops 18%: Michelin
- NESN SW : Swiss Torment Multinationals Such as Nestle as Ethics Vote Nears
- NIBEB SS : Nibe Industrier Reintroduces Original 2019 Dividend Proposal
- NOKIA FH : Nokia and Claro Start Urban 5G Pilot Program in Colombia
- RAYB SS : Raysearch 3Q Orders SEK138.5M Vs. SEK196.8M Q/q
- REC NO : REC Silicon Gets Writ of Summons for NOK150M Nordea Claim
- CFR SW : Richemont: Exercise Price for Loyalty Program Set at CHF67
- ROG SW : Roche on Track to Produce Regeneron Antibody Treatment: Rtrs
- RBREW DC : Royal Unibrew 3Q Net Revenue Beats Est.; Outlook Narrowed (1)
- SFQ GY : SAF-Holland SE 9M Adjusted Ebit EU38.5M Vs. EU66.9M Y/y
- SAN FP : Sanofi: Rilzabrutinib Granted FDA Fast-Track Designation
- SAN SM : Santander Avoids Merger Wave in Favor of Focus on Digital Growth
- SCH GY : Schaeffler Sees Lower End of Target Ranges Reached by 2023
- SU FP : Schneider Electric Prices Convertible Bond Offer at 50% Premium
- GLE FP : Amundi and BNP Considering Bids for SocGen’s Lyxor: Reuters
- SOW GY : Software AG Boosts FY DBP Cloud & IoT Product Bookings Forecast
- SEV FP : Suez to Present Alternatives to Veolia at AGM, CEO Tells Echos
- SNBN SW : SNB Faces Cliffhanger Vote on $21 Billion in Stock Investments
- FTI FP : TechnipFMC Gains After Winning Contract for Mexico LNG Plant
- HO FP : Thales Wins $1.8 Billion Tender to Build German Navy Frigates
- UMI BB : Panasonic, Equinor, Hydro MoU for Norway Green Battery Business
- URW NA : Tiger Global Management Boosts Short Position in Unibail
- URW NA : Morgan Stanley Lifts Unibail-Rodamco Stake to 10.38%: AMF
- WMH LN : Caesars Wins Backing From ISS, Glass Lewis for William Hill Bid

FT : Fashion forward: luxury brands try to weave inclusivity into their fabric

Fashion forward: luxury brands try to weave inclusivity into their fabric
High-end houses are hiring diversity leads in an effort to fix a lack of representation across their businesses

Prada appointed its first chief diversity officer last month, as big-name luxury businesses continue to respond to tight scrutiny of their progress on diversity.

The move followed an investigation by the New York Commission on Human Rights into Prada’s diversity and inclusion practices that in February led to its Milan-based executives — including head designer Miuccia Prada and her husband and chief executive Patrizio Bertelli — agreeing to undergo “racial equity training”.

The Italian luxury fashion house had come under fire in December 2018 after Chinyere Ezie, a civil rights attorney, spotted a pair of black, Sambo-esque monkey figurines in Prada’s SoHo store in New York. Prada swiftly issued an apology and removed the offending merchandise.

The brouhaha could perhaps have been avoided if Prada’s workforce had been more racially diverse. At the time of the incident, there were no black employees at Prada’s Milan headquarters, Ms Ezie wrote in an email to the FT, citing a conversation she had with Prada chairman Carlo Mazzi in March 2019. Prada declined to comment.

In 2019 Prada established a Diversity and Inclusion Advisory Council, co-chaired by the artist Theaster Gates and film-maker Ava DuVernay. And last month Malika Savell became the company’s first chief diversity, equity and inclusion officer for North America.

Dozens of luxury companies posted messages of support on social media for the Black Lives Matter movement following the police killing of African-American George Floyd in May.

Yet many of these brands lack diversity in their own ranks and, therefore, are open to risk of severe reputational damage — as Prada, Gucci and Dolce & Gabbana have each learned from their own recent high-profile missteps.

Less diverse businesses are also likely to be less innovative, which can drag on the top line.

A Boston Consulting Group study in 2018 found that companies with above-average diversity within their management reported innovation revenue that was significantly higher than that of companies with below-average diversity — at 45 per cent of total revenue versus 26 per cent.

Gucci hired its own diversity chief last year following a backlash for retailing an $890 jumper also said to resemble blackface. Burberry and Chanel have also hired diversity leads in the past two years.

These are all positive signals that the $318bn industry is making progress — not only on racial diversity, but also in the greater representation of women, as well as employees who are disabled or above the median age.

The Financial Times’ second annual Diversity Leaders list, compiled with research partner Statista, shows the extent to which companies in 16 European countries have achieved a diverse and inclusive workforce, based on the perceptions of their employees and recruitment experts.

Respondents were asked to rate the efforts of employers in their respective sectors in promoting diversity. They were also asked to share their opinions on a range of statements around age, gender, equability, ethnicity, disability and sexual orientation. The evaluations of more than 100,000 employees informed the final ranking.

Luxury is well represented in the top 850 companies featured this year. Ranking fifth overall, Hermès is the second-best improver on last year’s list, where the French fashion house ranked 535 out of 700 companies.

It performed strongly on ethnicity and diversity in general last year — and this year it was one of only eight companies to score above 3.8 out of 5 on ethnicity. Yet its biggest improvement is on gender and disability.

Giorgio Armani comes in at number six, while Prada (57) and Hugo Boss (97) make it into the top 100.

Prada scored well on LGBT+ and diversity in general, and lowest on ethnicity and age. LVMH does not show in the top 850 — though several of the group’s brands do, including cosmetics company Sephora (49) and Louis Vuitton (161) — the luxury fashion industry’s largest brand by revenues, which analyst Bernstein estimates at $12.9bn last year.

Cartier-owner Richemont narrowly missed out on the final list. However, the Swiss group hired a director of diversity and inclusion in early 2019, and is creating similar positions across its brands and geographies, says an individual familiar with the group’s plans.

Gucci’s French parent Kering, which in recent years has been commended for the high representation of women on its board — eight of its 13 board seats are held by women — ranked 715th. It performed less well on age and ethnicity than the likes of Hermès or Giorgio Armani.

Observers say the luxury sector still has a long way to go in terms of ethnic diversity, and that it lags behind its counterparts in the broader fashion space.

The luxury industry has made “meaningful attempts at progress”, says Hannah Stoudemire, chief executive of the Fashion for All Foundation, a New York-based non-profit that promotes equality and diversity in the fashion industry. “[But] a lot of companies are not doing the bare minimum,” she adds.

“Specifically in luxury, there are [very few racially diverse] employees that hold senior creative positions. I could say the same about senior decision-making roles.”

Ms Stoudemire advises companies to address diversity issues at all levels of the organisation and create “space and a budget” for a chief cultural officer.

“This role should be mandatory and had at every company in fashion, beauty and media,” she says.

FT : What role did hedge funds play in the March market mayhem?

What role did hedge funds play in the March market mayhem?
Regulators remain uneasy over the turmoil caused by bets on Treasuries

Regulators turn activists on hedge funds
Let’s cast our minds back to March when one of the “simplest” hedge fund bets blew up. 

The so-called basis trade is a popular bet among hedge funds. Managers seek to eke out a profit from slight differences between the almost-identical US Treasuries and Treasury futures. 

Because the returns are small, hedge funds juice them up by adding leverage. What could go wrong, right? 

In all fairness, things move along pretty smoothly under normal circumstances. But, when coronavirus struck the US in early March, there was a dash for cash that led to a Treasury selling spree and caused all sorts of weird dislocations. One of them was widening the spread to Treasury futures — the precise opposite of what the basis trade bets on.


The move caught out many large hedge funds that operate relative value strategies. As they tried to exit the trade, the spreads between Treasury bonds and futures widened even more dramatically. The move sent the US Treasury market into a tailspin. 

If the seriousness of this isn’t clear, some analysts say it could’ve put the US government’s ability to fund itself in danger at a pivotal time.

But the Federal Reserve stepped in, which prompted outcries from critics that the US central bank was bailing out hedge funds. Mark Yusko, the chief executive of Morgan Creek Capital, which allocates to hedge funds, said “too big to fail” is back. He took to Twitter to show his frustration: 


Now, global policymakers are looking at the role hedge funds played in the March mayhem. 

A report from the Financial Stability Board said the market “dysfunction”, which could’ve spiralled into a full on financial crisis without intervention from the Fed, was “exacerbated” by hedge funds unwinding the popular basis trade. 

“Large-scale unwinding of these trades . . . was likely one of the contributors to a short period of extreme illiquidity in government bond markets,” the FSB said in the report.

What the FSB is really concerned about is something the finance world likes to call “moral hazard.”

If the Fed is willing to step in when the alternative is to allow a financial collapse, what is the risk for hedge funds to leverage up and put on even more aggressive basis trades in the future?