TheChek News Flow

US retail sales and consumer health

At first glance, the latest US retail sales and consumer sentiment numbers reaffirm what we’ve seen over the past few months: the US consumer remains resilient, despite concerns over tariffs. Retail sales in June reversed a two-month downturn, driven by strength in motor vehicle and restaurant spending, according to preliminary data from the Bureau of Labor Statistics. The University of Michigan’s consumer sentiment index also inched up in July.

But a closer look at the numbers shows consumers may be starting to strain from tariff pressures. Sales of furniture, as well as electronics and appliances — two import-dependent categories that saw price increases in the June CPI report — noticeably declined. Furniture retail sales were down 6.2 per cent from May, while electronics and appliances slumped more than 3 per cent. 

A broader view of spending trends gives more reason for concern. The 12-month rolling correlation between the monthly changes in core CPI and month-over-month fluctuations in retail sales — how price changes relate to spending — has been negative throughout the year. In short, consumers are starting to pull back as prices rise. That marks a big shift from prior years. In 2022 and 2023, the correlation was positive, even as prices rose at a much faster rate. 

This suggests that the mighty US consumer has, at long last, run out of steam — or has been increasingly price sensitive for some time now. Another reason why the headline retail sales figure may not be as robust as it seems is that rising prices could be inflating the numbers, as Michael Pearce at Oxford Economics explains:

Granted, retail sales have always been reported in nominal dollar terms. But now that there are signs that American consumers aren’t tolerating inflation, the weakness behind the headline figure sticks out. Consumers aren’t as strong as they appear.

‘The beauty of hedge funds’

Jagdeep Singh Bachher, chief investment officer of UC Investments, one of the largest institutional investors in the US, has only one regret: “it’s that I’m not a hedge fund manager”. 

His thinking? “Hedge funds are a fantastic business if you’re on Wall Street, and you can charge a great fee and then you can afford to buy all the art and the private jets and the amazing houses in the world,” he said. 

This was part of a scathing rebuke against the $4.7tn industry that he delivered last week as the $190bn manager of the University of California’s endowment and pension approved a plan to reallocate its 10 per cent hedge fund portfolio to public equities, report my colleagues Sun Yu and Amelia Pollard.  

Bachher used the opportunity to lambast the industry for not delivering for clients and for failing to provide adequate risk protection. 

He said that UC Investment’s hedge fund positions had undermined its overall performance by introducing risks during market upheavals in 1999, 2008 and 2020. “In each of those three scenarios, hedge funds didn’t hedge us,” he added. “They exposed us to the opposite kind of risk, which actually meant they hurt us.” 

The move underscores concerns among asset allocators about hedge fund investments that come with unstable returns, high fees and long lockups. 

Bachher said if the endowment’s hedge fund portfolio had instead been allocated to a combination of stocks and bonds over the past 20 years, it would have avoided “all the drama and the illiquidity and all the high fees” and still had comparable returns. 

He said that UC Investments decided to unwind its hedge fund portfolio in 2020 when the endowment adjusted its allocation target. The process, which “typically takes” 90 days, ended up lasting five years because of “the beauty of hedge funds”. 

Needless to say, the course of true hedge fund riches never did run smooth. Just ask Bobby Jain. The former co-chief investment officer at Millennium Management tried to pull off the world’s largest hedge fund launch last year. Jain Global had to settle for the largest launch since 2018 with $5.3bn in commitments from investors, after falling short of the initial fundraising target of $8bn-$10bn.

Overhaul prompted by public anger at pollution and high pay

England’s water regulator Ofwat should be replaced by a new “integrated regulator” for the industry, according to the final recommendations of an Independent Water Commission that was set up to probe the oversight of the sector. 

The review led by Sir Jon Cunliffe, a former deputy governor of the Bank of England, was commissioned by environment secretary Steve Reed in the wake of public anger about pollution and executive pay.

Cunliffe’s main recommendation is for a new water regulator in England to replace Ofwat and the Drinking Water Inspectorate and to assume the water-environment related functions of the Environment Agency and Natural England.

In Wales, Ofwat’s economic responsibilities should be integrated into Natural Resources Wales, an existing body, Cunliffe said.

Reed is making a speech later on Monday in which he is expected to launch a formal consultation into the regulatory overhaul.

Following reports that the retailer was closing its Milan unit, CEO Tommaso Maria Andorlini set the record straight.

MILAN — Fashion retailers aren’t immune to the havoc being wrought by the current macroeconomic headwinds and LuisaViaRoma, among them, is looking at streamlining business operations to overcome financial hurdles.

According to Italian media reports, the retailer, a pioneer of e-commerce since 1999 and based in Florence, is planning to shut down its unit and office in Milan.

The move would affect 22 workers required to relocate to Florence, trade unions Filcams Cgil said.

In an exclusive interview with WWD on Saturday, LuisaViaRoma chief executive officer Tommaso Maria Andorlini set the record straight.

“The closure of LuisaViaRoma’s Milan office is part of a broader reorganization strategy,” he said. “This moment demands a swift and thorough rethinking of both our distribution strategy and internal structure. Efficiency and a renewed focus on our core business have become essential. Centralizing currently dispersed teams at our Florence headquarters will help us rebuild cohesion, speed up decision-making, and strengthen our sense of shared purpose.”

The 22 employees in Milan work in different departments including marketing, IT, and buying, among others.

Andorlini believes that the Milan unit was nonstrategic.

“It was as if part of the company’s talent and know-how was operating from a subsidiary and this affected company culture,” he said. “Reuniting remote teams will foster belonging and alignment. We will ensure maximum flexibility to support our employees throughout this transition.”

The executive will meet trade unions on Wednesday, submitting the broader plan for the entire company’s workforce, which, he said may entail resorting to the “cassa integrazione,” a state-funded wage support measure.

There are no plans for layoffs or redundancies for the time being, Andorlini said.

“We’ve approached this streamlining process with great responsibility, committed to maintaining tangible ties with the individuals who contribute to our success every day. Employees from the Milan office will be reassigned within the organization, with consideration for their skills, personal circumstances, and individual journeys,” he said. “We hope everyone is willing to row in the same direction,” he said about the meeting with unions.

The CEO also squelched rumors that for the past year have recurred frequently that the retailer was seeking to enter a court-mediated composition with creditor procedure. It is however in negotiation with financial creditors.

According to preliminary figures, the retailer logged sales of 310 million euros in 2024.

Financial debt stands at 30 million euros. A capital increase was successfully completed this month, the executive said, while declining to disclose its amount.

“The shareholders of LuisaViaRoma are fully committed to this [restructuring] path…the investor group stands ready to support the company’s future growth, a future we all believe in,” Andorlini said. “We also believe that it is precisely in uncertain moments like this — of uncertainty but also opportunity — that vision and resolve can forge a stronger, more relevant, and future-proof path ahead for the company.”

In July last year LuisaViaRoma opened its second brick-and-mortar unit in New York’s NoHo, flanking the storied boutique on Florence’s Via Roma.

Andorlini said in the 18 months prior the company had heavily invested in the U.S. market, which had become its largest, growing in the high double-digit range.

In light of geopolitical instability and dented consumer confidence, the onset of 2025 has seen a mixed performance in the country.

Looming tariffs on imported goods to as much as 30 percent could further impact business in the region.

“Until February 2025, the U.S. was our largest market, registering double-digit growth. But from March, and more sharply from April, we’ve seen a sudden, dramatic downturn. The introduction of tariffs comes amid a broader crisis of confidence in fashion pricing. Consumers have long started to sense a growing disconnect between price and actual value. The added cost from U.S. duties risks further alienating them,” Andorlini explained.

“This is not merely an economic issue — it’s a matter of perception. Today’s consumers compare prices globally with ease. When geographic price gaps feel unjustified, they breed uncertainty and mistrust. If this situation isn’t resolved quickly, we will be forced to reconsider our entire approach to the U.S. market,” he continued, urging the fashion system, Italy and the European Union to act synergistically.

Following years of overconsumption and post-COVID-19 luxury spending euphoria, the U.S. tariff threats come as other regions experience uneven business performances, including the Middle East and Russia, plagued by ongoing conflicts, as well as China, in light of a progressive shift toward domestic brands and retailers.

As part of his strategic vision, Andorlini said the retailer has been retooling its offering and brand mix to align with demand of a discerning clientele growing tired of megabrands’ progressive shift from product- to experience-centricity.

“LuisaViaRoma recognized this shift a year ago and began refining its brand mix to make it more selective and coherent. Our audience has consistently shown inclination to sustainability and social responsibility. In this landscape, we believe our role is to elevate brands and products that align with these values, with particular attention to balancing ethics, quality and pricing,” the CEO explained.

Acknowledging that Italian independent multibrand retailers are facing similar or often bigger challenges, Andorlini reiterated his commitment to the business model.

As reported, LuisaViaRoma is partnering with the Camera Buyer Italia and its marketplace THEBS.com to create a multistore online destination to be launched later this year.

LuisaViaRoma was established by president Luisa Jaquin — the grandmother of the retailer’s president Andrea Panconesi — who planted the seeds of the family company’s success by opening the concept store in 1929.

Following Style Capital’s investment of 130 million euros to acquire a 40 percent stake in the retailer in 2021, Panconesi left his post as CEO — now held by Andorlini, who succeeded Yoox veteran Alessandra Rossi — to be president of the company, while his daughter Annagreta serves as creative director of both the website and physical stores.

Solférino Paris will have a freestanding boutique in the French capital starting in September.

PARIS ­— Interparfums SA is poised to launch its first own home-grown fragrance brand, called Solférino Paris, which nods to the company’s headquarters.

Located at 10 Rue de Solférino, in the French capital’s 7th arrondissement, the building was acquired by the perfume-maker in 2021. Prior to that the stately building, spanning some 40,000 square feet, had most recently been the Socialist Party headquarters.

It is composed of three buildings connected by two inner courtyards. There, ceilings soar and a marble black-and-white checkerboard floor lines the entrance. Interparfums moved into the location in 2022.

Philippe Benacin, chairman and chief executive officer of Interparfums SA, decided to launch the collection, as lines of perfumes — including that of Van Cleef & Arpels, which Interparfums developed — have been so well-received.

“All retailers are going with fragrance collections,” said Benacin. “They’re devoting more and more space to this category. I thought that being the owner of the Solférino headquarters now, we have a reason to develop a line under the name.”

Built in 1772, the hôtel particulier, or mansion, had ties to figures linked to literature and philosophy at the end of the 19th and start of the 20th centuries as part of its remarkable past. Today, the sweeping building still has an artistic bent, full of modern art, especially American Pop Art by the likes of Robert Rauschenberg, Frank Stella and Roy Lichtenstein. It is where Interparfums develops fragrances.

“We wanted to create a new niche perfume brand and got inspired by this amazing building, which is full of history,” said Victoria Scalia, marketing director of Solférino Paris.

“So in the design, we were inspired by the architecture of this building and the storytelling — we wanted to tell the story about Paris,” she continued, adding the brand is like a celebration of that city.

Each of the 10 genderless eaux de parfum in the Solférino Paris line fetes a memorable moment — like midnight or a stolen kiss — in an iconic Parisian location. “It’s a nice way to dream and imagine yourself in a situation in Paris,” said Scalia.

Every fragrance was made by a different master perfumer, who was given a key ingredient as a launchpad to create freely, she added.

Rêverie Sur Seine, developed by Dsm-firmenich’s Nathalie Lorson, is centered on a neroli note, while 10, Solférino is built around a rose note through the lens of Givaudan’s Antoine Maisondieu. (Here, there’s a wink to the Socialist Party’s symbol, which is a rose.)

Thé Au Palais Royal shines a light on oolong tea and was mixed by IFF’s Jean-Christophe Hérault. Folies à Montmartre, by Givaudan’s Jordi Fernandez, was inspired by a black leather note.

Un Samedi à Paris, fashioned by IFF’s Tanguy Guesnet, began with a woody note, while Givaudan’s Yann Vasnier focused on a white floral creation for Paris Radieux.

Minuit Rue Princesse, dreamed up by Dsm-firmenich duo Coralie Spicher and Fabrice Pellegrin, is an oud scent and Givaudan’s Shyamala Maisondieu concocted Un Baiser Place Vendôme, which has two sandalwood notes.

Ambery Coup de Foudre Quai Voltaire is by IFF’s Anne Flipo, while L’Été Avenue Gabriel, crafted by IFF’s Amandine Clerc-Marie, has a fruity accent.

More perfumes will be added to the collection.

Solférino Paris’ fragrance bottles have curved facets and a white label featuring what looks like architectural moldings around it. The brand logo on the white cap is reminiscent of a radiant sun, with an S10 in the middle. That logo is also engraved in the glass. A green grosgrain ribbon-like detail wraps around the flacon’s neck.

A similar green strip appears on the outer packaging, which has on its back an illustration of an emblematic Parisian location.

Each fragrance exists in two sizes — a 125 ml., which retails at 260 euros, and a 70 ml., for 160 euros. A discovery set comes with 10 2-ml. formats, priced at 38 euros, and another set with five 15-ml. edps is 180 euros.

Two candles, selling for 90 euros each, round out the collection. More art de vivre objects, including home products, are expected to follow.

Solférino Paris will have its own Parisian boutique that is due to open in September. The flagship, on 310 Rue Saint-Honoré, stands on the stretch of the street that’s become a fragrance destination. Details of Interparfums’ headquarters will be reflected in the boutique’s decor.

The new fragrance collection just launched exclusively at Paris’ Publicis Drugstore. That will be followed on Monday at Selfridges in London, then a wider rollout in selective stores between September and spring 2026. Altogether, there should be 100 doors in its first year.

In store, the scents will be shown on a table mapping out Paris’ historic monuments through illustrations. Fragrance bottles can be customized with such drawings.

“It’s a nice way to bring the Parisian storytelling to your bottle and make it unique,” said Scalia.

Solférino Paris’ dedicated e-commerce site will launch in early September.

Interparfums executives would not discuss projections, but industry sources estimate Solférino Paris will generate about 10 million euros in first-year retail sales.

The idea with the collection, according to Benacin, is to grow interest and attraction and to become a fragrance-collection player on the market.

Interparfums also has in its portfolio fragrance licenses including Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste and Moncler, and it owns Lanvin and Goutal fragrances as well as the Rochas brand.

The European Union still wants a deal, but with U.S. demands growing, the bloc is getting ready to push back

BRUSSELS—The European Union thought it was on the verge of a deal with the U.S. to keep tariffs in check. Now it is readying a counterattack.

U.S. officials told the EU’s trade chief this past week that they expect President Trump to demand further concessions from the bloc to get an agreement, including a baseline tariff on most European goods that could be in the range of 15% or higher, according to people briefed on the talks.

That was an unwelcome surprise for the EU, which had been working toward an agreement that would have kept baseline tariffs at 10%, already a tough concession for some of its 27 countries. The shift prompted Germany, Europe’s biggest economy and its largest exporter, which had previously been more dovish on U.S. retaliation, to swing closer to France’s more confrontational position, according to people close to the discussions.

Now, EU member states are pressing the bloc’s executive body to prepare new and potent measures to hit back against U.S. companies, beyond retaliatory tariffs on goods, if a deal can’t be reached by the Aug. 1 deadline set by Trump, the people said.

“All options are on the table,” a German official said Friday. The official said there was still time to negotiate a deal but added, “If they want war, they will get war.”

The push to increase potential countermeasures marks a turning point for the EU after months of negotiations to salvage the world’s biggest trading relationship. More than $5 billion of goods and services moves between the two economies every day, according to EU data.

The European Commission, which is in charge of the bloc’s trade policy, said Sunday that it wants a negotiated, mutually beneficial agreement and remains deeply engaged in negotiations. If no satisfactory outcome is found, all options remain on the table, a spokesman said.

On Sunday, Commerce Secretary Howard Lutnick expressed optimism about reaching an agreement with the EU. “I am confident we’ll get a deal done,” Lutnick said on CBS’s “Face the Nation.” “And it will be great for America, because the president has the back of America.”

In the months since Trump took office, EU trade chief Maroš Šefčovič has flown to Washington half a dozen times. He has had multiple calls and texts with U.S. trade officials. And he has said Europe was willing to lower tariffs and buy tens of billions of dollars of U.S. energy products and advanced semiconductors.

The bloc has little to show for his efforts. Earlier this month Trump threatened 30% tariffs on imports of most goods from the EU, up from the 20% the president first floated in April.

Even German officials, who have pressed for a quick deal, no longer see an agreement with the U.S. as the most likely outcome, people familiar with the matter said.

On Friday, Berlin signaled it could support the EU using its so-called anticoercion instrument, a legal tool that lets the bloc hit back at economic bullying with a range of restrictions on trade and investment. It has never been used before.

EU officials view the tool as the bloc’s most powerful trade weapon, and a last resort. European Commission President Ursula von der Leyen, who leads the EU’s executive arm, said earlier this month that the instrument was created for emergencies “and we are not there yet.”

That assessment could change. The commission is already preparing measures that could be introduced using the anticoercion instrument, people briefed on the matter said. After Šefčovič’s return from Washington, more member states now say they want the tool to be ready.

The measures that are being readied include possible levies or other restrictions on U.S. digital services and curbs on American companies’ access to the bloc’s public procurement market, the people said.

That would be in addition to measures the EU has already prepared. The EU earlier drew up two packages of tariffs targeting more than $100 billion of U.S. exports to the bloc, ranging from airplanes to peanut butter and whiskey, although they haven’t been put into effect. The second package still needs formal signoff from member states, but both could be activated quickly if needed, officials have said.

European officials and member states still hope a deal is possible. The bloc doesn’t plan to launch any retaliation before Trump’s Aug. 1 deadline, and the preparation of measures that could be introduced using the anticoercion instrument doesn’t necessarily mean the tool will be deployed.

But they are gearing up for a possible fight that they acknowledge could have heavy costs for both sides in a commercial relationship that is valued at trillions of dollars.

The deal the two sides were nearing earlier this month would have seen the EU offer to boost purchases of U.S. energy products and semiconductors and accept a 10% baseline tariff on most goods.

Some elements were still being negotiated, people familiar with the talks said. Those factors included which sectors to exempt from the baseline tariff and what relief Europe’s car industry might get from the 25% tariffs it currently faces.

Still, the commission was optimistic. While other U.S. trading partners had received letters outlining higher tariffs they would soon face, Šefčovič told lawmakers on July 9, “our negotiations have spared the EU from facing higher tariffs.”

Three days later, Trump posted a letter on social media threatening the bloc with 30% duties starting Aug. 1.

Šefčovič traveled to Washington this past week to try to understand whether a deal was still possible.

While U.S. Trade Representative Jamieson Greer suggested the 10% baseline tariff the two sides had negotiated still made sense, Lutnick suggested the levy would need to be higher, a European diplomat said. Šefčovič left his meetings with the understanding that the U.S. was pressing for a baseline tariff of 15% or more, people briefed on the matter said.

Šefčovič was also told that U.S. tariffs on the bloc’s automotive sector were expected to stay at their current 25% level and pharmaceutical tariffs could be introduced at 100%, one of the people said.

France and some other EU nations had long pushed for the EU to take a tougher stance against the U.S., while Germany had encouraged the bloc to seek a quick, preliminary deal with Trump.

German leaders initially understood Trump’s letter threatening 30% tariffs as a last-minute ploy to extract better conditions. They finally snapped after finding out about U.S. officials’ pressure this past week for the EU to accept higher baseline tariffs and no relief for its auto sector. The shift persuaded Berlin to open the door to retaliation, an official with knowledge of the situation said.

Member states now need to determine how many more concessions they might be willing to make to get a deal, and which countermeasures to take if negotiations fail, an EU diplomat said Friday. “All options will hurt,” the diplomat said.

As part of its effort to become war-ready by 2029, Berlin is scouting public places that can be turned into shelters quickly and cheaply

Germany is working to reinstate air-raid bunkers after decommissioning them due to a perceived low risk of military attacks.

The effort to become “war-ready” by 2029 includes reinforcing existing spaces as shelters and developing a shelter-finding app.

Concerns over Russia’s aggression are driving increased interest in private bunkers and civil defense preparedness in Germany.

BERLIN—Less than 20 years ago, Germany decided the risk of a military attack on its territory was so low that it decommissioned the country’s last air-raid bunkers. Today, it is scrambling to roll back the decision.

Of about 2,000 bunkers and air-raid shelters operational during the Cold War, only 580 remain, offering space for 480,000 people, or half a percent of Germany’s population. Even this figure is largely theoretical.

“Maintenance and servicing of civil protection equipment is no longer taking place,” a government spokesman said. The country’s remaining shelters, including Berlin’s four facilities, are “neither functional nor operational,” he added.

With military experts warning that Russia could be in a position to attack Western Europe within years, this leaves millions of civilians defenseless if there is a conflict similar to the war in Ukraine, in which Moscow is bombing cities almost daily.

Now German authorities are rushing to remedy the situation, drawing up lists of public spaces that can be rapidly and cheaply turned into shelters while planning sturdier protection further into the future. A pilot project aims to provide bomb shelters for one million people by the end of 2026.

Spurred by Russia’s invasion of Ukraine and threats toward the West, Germany has pledged to become “war-ready” by 2029. Its military spending is set to almost double by then. But the effort isn’t just about loading up on tanks and drones—it is also about ensuring civilians are prepared and protected in case of an attack.

“When I ask my friends what their stockpiling situation is, how much water, food and medication they have in the basement, the usual joke is that they have enough red wine to last for a year,” said Tim Stuchtey, executive director of the Brandenburg Institute for Society and Security. “But it’s not enough for the Bundeswehr to be ready,” he added, referring to the German armed forces. “So must the whole of society.”

Operation Plan Germany, a classified document drawn up in 2024, was designed to ensure that the country can function as a staging ground for hundreds of thousands of North Atlantic Treaty Organization troops in a war. Officials said the plan outlines which roads and bridges can sustain heavy military traffic as well as steps to shield critical infrastructure and ensure the government and the economy can operate under sustained attack.

Bunkers are a key part of the plan. Yet analysts say the government is just beginning to spell out what these should look like.

“The government must define what it considers the threat to be. And secondly, what should be protected against this threat,” said Norbert Gebbeken, head of the Risk Research Center at the University of the Bundeswehr in Munich. “Neither of these questions has been answered yet.”

Authorities are still working on a study to answer these questions, Gebbeken said. But the required bunkers will likely range from deep, highly reinforced underground facilities housing critical government functions to basic shelters protecting civilians from drone attacks, he added.

One of the most enduring marks left by World War II on German cities—more enduring even than the destruction caused by Allied bombardments—is the ubiquitous “Hochbunker”: gray, windowless hulks of reinforced concrete that used to house antiaircraft batteries, telephone terminals or civilian shelters.

Almost indestructible, many have been sold over the years and turned into art galleries, clubs, hotels and luxury properties. A former World War II communications bunker in Berlin now houses the Feuerle Collection of Asian antiquities. One of its gloomy exhibition halls features an underground lake.

Beyond a few exceptions, renovating those and Germany’s mostly underground Cold War bunkers, the largest of which could house several thousand people, would be expensive and slow, and in some cases may offer only limited protection. Large concentrations of people could also become targets in an era in which attacks on civilians have become routine.

German officials said Ukraine’s experience showed that the main risk for civilians was being hit by missile shrapnel or drones. Hence the need for a decentralized approach: many smaller spaces that are protected from direct hits and can be reached within minutes of the alarm being given—not vast underground bunkers that would need hours to fill.

“The idea is to use existing spaces and reinforce them, for instance by strengthening a basement ceiling to bear the weight of rubble,” said Gebbeken. “These places can have other uses but they need some work done on them, they aren’t entirely improvised. This is what we know from Israel and other places.”

The Interior Ministry, the Federal Office of Civil Protection and Disaster Assistance and the federal government’s property arm are working on specifications for how to turn existing buildings into functional shelters. Meanwhile, regional authorities are drawing up lists of suitable spaces, from underground parking garages to subway stations and basements.

Once enough are found and fitted—ideally with camp beds, sanitation, drinking water and air filtration—to protect a million people by the end of next year, the program will be scaled up, according to a government spokesman. Authorities are also developing an app that would instruct civilians on how to get to the closest shelter as well as recommendations for turning private rooms into shelters.

More Germans are turning to specialized construction companies to discuss converting their basements into private bunkers.

“The whole topic was more a source of jokes for many years,” said Peter Aurnhammer, whose company DSZ makes everything from panic rooms to fully autonomous underground nuclear shelters with radiation protection and independent power and water supplies.

“Things are changing, because of developments in Ukraine, Russia, but also our changing relations to the U.S., Germany’s rearmament, the Middle East,” he added.

A robust civil protection isn’t just about saving lives in case of war, said Stuchtey of the Brandenburg Institute. It can also make war less likely.

“By signaling that we are taking on the challenge of Russia’s aggression, that we are both able and willing to defend our values, we contribute to our deterrent,” said Stuchtey. “We’re basically telling Russia: Don’t even think about it.”

London and higher-end properties see biggest decline driven by competition to find buyers

Property asking prices fell in July, marking the steepest monthly decline for this time of year, driven by high competition for buyers with London and higher-end properties registering the biggest fall.

Average new seller asking prices dropped 1.2 per cent between June and July, representing a £4,531 fall to £373,709, Rightmove said on Monday.

While there is usually a seasonal dip in prices in July, Rightmove said it was the largest monthly price drop at this stage in the summer season since records began more than twenty years ago.

“The continued decade-high level of housing supply for sale is limiting price growth, compounded by the start of the traditional summer holiday season,” according to the property portal.

The fall in asking prices was driven by London with a 1.5 per cent drop, led by inner London, where asking prices declined 2.1 per cent.

Higher-end properties, covering all five-bedroom homes and four-bed detached houses, fell by 1.6 per cent compared with a 0.6 per cent drop for smaller properties.

Asking prices were still 0.1 per cent up from July last year, while the number of sales being agreed was up 5 per cent year-on-year.

Rightmove data gives a first indication of the state of the property market in July ahead of the release of official and other unofficial figures in coming weeks.

Colleen Babcock, property expert at Rightmove, said: “The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property.”

However, “the decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced”, she added.

Rightmove also reported the number of potential buyers contacting estate agents about homes for sale was 6 per cent higher in July than last year, helped by increased affordability.

Average wage growth is outstripping house price increases and inflation, making it more affordable for prospective home buyers who have been further supported by falling mortgage rates.

Financial markets are pricing a high probability that the Bank of England will cut interest rates by a quarter percentage point at the next meeting on August 7 from the current level of 4.25 per cent.

Property prices have been volatile this year due to changes to stamp duty thresholds, which reverted to pre-2022 levels, increasing the tax cost for many property buyers.

Official data published last week showed UK house prices rebounded 1.1 per cent in May after a 2.7 per cent contraction in April.

Rightmove tracked newly listed properties marketed via more than 16,000 estate agency branches in the four weeks to July 12.

FT : Daimler Truck mulls China production exit as it faces ‘crazy’ down cycle

Diesel vehicle sales hit by shift to LNG while US tariffs and weak demand in Europe add to German group’s woes

Daimler Truck’s chief executive has said the group will not rule out an exit from manufacturing in China as the world’s largest truck producer grapples with a “crazy” global down cycle, compounded by US tariffs and weak demand in Europe.

The German group’s struggles in China have coincided with restructuring measures in Europe. Last week it announced plans to cut 5,000 jobs in its home country by the end of the decade.

“Basically we’re looking at everything,” Karin Rådström said in an interview with the Financial Times when asked about the company’s future in China. “It is the biggest truck market in the world. It’s not an easy market to be profitable in but . . . it’s also a market where technological development moves fast.”

Last year the company booked an impairment charge of €120mn on the value of its joint venture in China as sales of its diesel trucks took a hit when demand shifted to liquefied natural gas-powered vehicles after gas prices in the country fell following Russia’s invasion of Ukraine.

According to official figures, China’s heavy-duty truck market went from roughly 1mn units — the majority diesel powered — in 2021 to 430,000 units in 2023, of which only 250,000 had diesel engines.

The significant decline has hurt the group after it localised production of its diesel-powered Mercedes-Benz Actros tractor trucks from 2022.

Analysts anticipate a potential exit after the company told investors that it would decide on the future of its China business by the end of this year. “Our base expectation is a wind-down of operations in the country while still serving via exports,” said Bernstein analyst Harry Martin.

Rådström added that the company wanted to remain in China in some form to retain access to research and development and sourcing of materials, but conceded it may not need to keep a manufacturing footprint.

The 46-year-old Swedish boss took over the truckmaker in October, becoming one of the few female CEOs in the automotive industry.

Despite having experienced a series of down cycles in her two-decade career, Rådström said rapid shifts in software and other technological advances had played a part in making the current one the most challenging.

“There are more factors of uncertainty . . . and it’s a little bit more crazy,” Rådström said. “There has been almost no period of normal.”

The biggest uncertainty is Donald Trump’s tariff war. Daimler Truck reported a 20 per cent decline in second-quarter sales in North America as logistics companies held off purchases due to the evolving nature of the US tariffs.

The group currently benefits from a framework that allows it to assemble trucks in Mexico and then ship them to the US without any tariffs as long as it is compliant with the USMCA trade pact.

But the Trump administration has been carrying out a national security probe on commercial vehicles that could alter this favourable set-up.

The tough market conditions and competition from Chinese rivals recently forced Daimler Truck and Toyota to merge their heavy goods vehicle business in Japan.

The German group is also seeking to double its defence business by 2030 through expanding sales of military commercial vehicles, but the unit is still small, accounting for roughly 1 per cent of overall group revenue.

Rådström said Chinese competition was not new but their strategy was more “structured” and they were more interested in exporting products out of their home market. “What’s important for us as well as for our European competitors is to focus on being competitive,” she added.