Crypto News: The London Rush: Can Mulberry get back into fashion?

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Morning, I'm Louise Moon from Bloomberg UK's breaking news team, bringing you up to speed on today's top business stories.

Mulberry is fighting a multitude of bush fires.

Having managed to successfully fend off a takeover attempt by Mike Ashley's Frasers Group, the iconic British handbag maker is now reforming itself under new CEO Andrea Baldo. Chucked in at the deep end.

A "challenging and volatile" macroeconomic environment means Mulberry will "streamline operations" and review its team structure to become "a leaner, more agile organisation" (read: job cuts?) It has also adjusted products, pricing and distribution strategies.

First-half sales shed 19%, dragged by a 31% drop in Asia.

To its credit, Asia isn't a siloed problem – a cutback in spending by Chinese consumers is weighing on luxury across the board. Swiss watch exports, for instance, fell again last month due to a fall in shipments to China, which was sharp enough to offset growth across the pond in America.

Plus, in Mulberry's home market, there is the budget to contend with. Scores (79) of retailers, including Tesco, Next and M&S, came out overnight with a letter warning Rachel Reeves of a £7 billion annual hit to the sector, according to reports.

Faced with these headwinds, the question is — will a rejig get Mulberry back into fashion?

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

Cigarette maker Imperial Brands' bet on next-generation products (ie. vapes and nicotine pouches) seems to be paying off, with net sales in the category rising 26% in the year through Sept. 30. It's now working on its five-year strategy to 2030.

Genuit, which makes ventilation systems, says Labour's budget (especially the increases in national insurance and minimum wage) would add £5 million to costs in 2025. It expects full-year profit to reach only the lower end of analyst expectations.

Events and publishing company Informa boosted its full-year revenue forecast after double-digit growth in the first 10 months. It says demand for face-to-face experiences remains strong, and bookings for events in 2025 are on track.

Heavily indebted Thames Water has extended its deadline in the search for billions of pounds in fresh equity, now giving investors another fortnight until Dec. 5 to submit bids. That's as it demands more information from investors on how they would help with its much-needed turnaround.

US Justice Dept. will push Google to sell Chrome in historic crackdown.
Hong Kong sentences 45 democracy advocates to up to 10 years in prison.
Trump weighs pairing Warsh as Treasury Secretary, and Bessent at NEC.

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

The travails of Mulberry, after being targeted by Mike Ashley, have echoes of the year's biggest blockbuster M&A battle and the challenges facing a heftier peer, albeit at a much, much smaller scale.

The luxury handbag maker, having rejected a takeover bid accompanied by stern criticism from the Sports Direct-owning Frasers Group, is now looking to retool its business. That has a whiff of what miner Anglo American is doing — a massive restructuring of the business to demonstrate its ability to operate independently after it rebuffed an offer from bigger peer BHP.

And Mulberry also said it has adjusted its product, pricing and distribution strategies. That chimes with Burberry last week, which said it's previous strategy had turned off core customers, leaving it floundering in a competitive luxury goods market in the midst of a downturn.

Mulberry — like Anglo American and Burberry — will now need to deliver. And, given how rough sales have been this year, it'll probably need a good Christmas to set it on the right path.

— Sam Unsted

Check Bloomberg UK's Markets Today blog for updates all day.

REIT British Land issues a first-half update tomorrow. Focus is likely to be on any change in strategy from new finance chief David Walker, as well as a potential full-year guidance upgrade after the its retail park purchases.

In the same sector, property developer Crest Nicholson is also due to report fourth quarter earnings.

The much talked about Gladiator II debuted in 63 locations including the UK last Friday, starring Paul Mescal. Even King Charles attended a screening. How much did the film reap at the international box office over the weekend, making it director Ridley Scott's highest ever overseas opening?

Paul Mescal and Brian Robbins at the Premiere of Gladiator II in Leicester Square last week. Photographer: Lia Toby/Getty Images Europe

[Yesterday's answer: The last British PM to meet Chinese president Xi Jinping (before Keir Starmer yesterday) was Theresa May in 2018.]

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