Europe

Kremlin officials are dangling the prospect of lucrative investment deals for American energy companies, apparently seeking to convince President Trump that large economic gains could come from siding with Moscow in ending the war in Ukraine and scrapping economic sanctions on Russia, the New York Times reported. There is no doubt that Russia has vast troves of oil and natural gas, but an effort to lure American or other Western energy companies to undertake Russian projects is likely to encounter skepticism, not least because of the companies' recent history in Russia.

Retailers in the U.K. reported a brighter start to the new year, with sales rising after four straight months of falls, though rebounding inflation and low consumer confidence suggest the outlook for the sector remains uncertain, the Wall Street Journal reported. U.K. retail sales volumes were 1.7% higher in January than in the prior month, from a fall of 0.6% in December, the Office for National Statistics said Friday. Food store sales volumes jumped 5.6%, the largest rise since March 2020, following falls in recent months, the ONS said.

A decade ago, Germany was the model nation. Its economy hadn’t just withstood the ascendance of China; it was thriving in its wake. Its balanced public finances stood out in a world of huge government debt. And while British and U.S. lawmakers were caught up in the culture wars, German politicians continued to practice the art of compromise. Today, Germany has gone from paragon to pariah, according to a Wall Street Journal commentary. Its economic model is broken, its self-confidence shattered and its political landscape fractured.

Mastercard's agreement to settle a landmark lawsuit brought on behalf of British consumers was approved by a London tribunal on Friday, despite opposition from the firm that funded the litigation, Reuters reported. The global payments processor said the Competition Appeal Tribunal had approved an agreement it announced in December to settle the long-running litigation over card fees for 200 million pounds ($253 million).

Italian spirits group Davide Campari led by its new Chief Executive Simon Hunt, said on Thursday it needed to take some "tough decisions, such as organizational restructuring" to ensure the group's return to financial health, Reuters reported. Italian daily MF reported on Thursday that the group was working to cut its workforce by 10%, meaning around 500 people. Asked for a comment, Campari said in an emailed statement that it needed a more efficient resource allocation, as changes in top-line performance and existing infrastructure investments had impacted profitability.

Esprit has flagged another annual loss, citing the insolvency of its European and US subsidiaries and an adverse operating environment, InsideRetail.asia reported. The Hong Kong-listed fashion company expects an unaudited net loss of HK$1.172 billion (US$150 million) for the year ended December 31, compared to a loss of HK$2.339 billion in the prior year. The company also expects a 73 per cent drop in revenue and 76 per cent decrease in gross profit for the year.

More than half of councils responsible for special educational needs provision will not be able to balance their books when a “statutory override” ends next year, a survey has suggested, the Irish News reported. Councils are able to keep high needs deficits – where the cost of providing support outstrips the special educational needs and disabilities budgets available to councils – off their main revenue accounts.

The car loan mis-selling scandal risks blowing a £5.5bn black hole in the public finances, posing a fresh challenge for Rachel Reeves as she scrambles to balance Britain’s books, The Telegraph reported. Treasury officials have warned the Chancellor that a string of major firms could use compensation payments to people who were mis-sold loans to legally cut their corporate tax bills – reducing revenue for the Treasury at a time when she is battling to meet her fiscal targets.