TAXING TIMES. Kering faces a fresh battle with the taxman. The luxury giant confirmed on Thursday that French prosecutors are investigating it for tax matters, but denied wrongdoing. A similar spat in Italy over transfer pricing at its top brand Gucci led to a 1.25 billion euro settlement last year. Swiss subsidiary LGI, at the centre of that probe, also offered services to Kering’s French brands, before overhauling the whole system in 2017.
Moreover, earnings increased 19% in part because it charged more for premium products, like Blue Buffalo dog chow, offsetting higher advertising spending. Chief Executive Jeff Harmening said the brand, which General Mills bought two years ago, shows its deals “can add value.” Perhaps further acquisitions will be on the Cheerios maker’s 2021 resolutions list.
FUEL INJECTION. Norwegian Air Shuttle is still not past the point of no return. That’s thanks to 80% of its investors voting in favour of letting the board raise up to 4 billion Norwegian crowns through a sale of hybrid bonds. It’s the second win for the $284 million airline this month, after it secured protection from its creditors in a bid to convert debt to equity. Its shares were up nearly 10% on the news.
Those leaders recovered, which bodes well for the relatively healthy and youthful Macron. Yet his condition could still have consequences. It comes just as the European Union is trying to finalise a trade deal with Britain. Though the European Commission is leading the talks, an active Macron may be needed to approve any last-minute compromise. Meanwhile, France’s infection rate has been falling in recent weeks, allowing the country to slowly emerge from its latest lockdown.
ISLAND PARADISE. New Zealand is roaring back to business. After successfully containing Covid-19 cases, the country’s economy grew a record 14% quarter-on-quarter in the three months to September, beating the central bank’s own November forecast. Even more impressive, output actually expanded slightly compared to last year, pointing to a rebound back to pre-pandemic levels. It’s “as close as you can get to a true V-shaped recovery”, Kiwibank Chief Economist Jarrod Kerr marvelled.