Yellow Vests send chill through the French economy and cause headache for Macron. France’s “gilets jaunes” protests have put the country’s private sector into reverse for the first time in more than two years, the latest snapshot of eurozone growth showed today. Financial data firm IHS Markit’s latest temperature gauge of services and manufacturing activity, where a score over 50 signals growth, slowed to 51.3, the weakest since 2014. But France was even harder hit because of the widespread protests, which left a trail of destruction in Paris and triggered a humiliating climbdown for president Macron on planned fuel tax rises. Output fell in manufacturing and services. IHS Markit’s chief business economist Chris Williamson said the protests came against the backdrop of a slowdown across the eurozone which could see overall growth slowing this month.
Watchdog Ofcom ramps up pressure over rip-off broadband prices. Telecoms firms will be forced to tell broadband customers about cheaper deals after Ofcom today stepped up its bid to stamp out punishing price hikes for loyal users. The regulator, which fears customers who don’t shop around are saddled with bad deals, will force suppliers to offer customers at the end of a fixed-term broadband contract the “best available” deal and do the same every year. Ofcom has also launched an investigation into pricing across the industry and will examine whether poor, ill and old broadband users need more protection against price increases. Companies such as BT Group (BT.A), Vodafone Group (VOD), Sky (SKY), O2, Virgin and TalkTalk Telecom Group (TALK) are among the businesses likely to be affected by today’s move. “We’re concerned that many loyal broadband customers aren’t getting the best deal they could,” Ofcom boss Sharon White said. “So we’re reviewing broadband pricing practices and ensuring customers get clear, accurate information from their provider about the best deals they offer.”
Luxury goods powerhouse LVMH has emerged as the surprise winner of the auction to buy Belmond, on Friday agreeing a $3.2 billion (£2.5 billion) deal for the upmarket hotels and travel group. The swoop will see Louis Vuitton’s parent LVMH operate the famous Venice Simplon-Orient-Express train, and own or manage 46 properties, including some of the world’s swankiest hotels. Belmond’s trophies include Raymond Blanc-run Oxfordshire restaurant Belmond Le Manoir Aux Quat’Saisons and the Belmond Cipriani hotel in Venice where George Clooney got married. Next year it will open its first hotel in the capital, a 54-bedroom property in Chelsea. In the UK it employs around 450 people. The suitor has agreed to pay $25 per share, a 40% premium on Thursday’s closing price, for the New York-listed firm, which is headquartered in London.
