October 15, 2024
Mytheresa's agreement to buy Yoox Net-A-Porter from Richemont was the main transaction story. Richemont, the owner of Cartier and Van Cleef & Arpels, is taking a EUR1.3 billion write-down and will receive EUR555 million in cash and no debt for a 33% stake in Mytheresa, alongside a EUR100 million revolving credit facility for YNAP. The deal is expected to close in the first half of 2025.
The transaction is a luxury e-commerce cleanup. Pandemic-era online luxury demand faded, China slowed, and shoppers became more selective after inflation and price increases. Richemont gets to reduce direct exposure to a struggling platform while keeping upside through Mytheresa. Mytheresa gets more brands, customers, and reach in the U.S. and China. The recruiting point is that structure matters: the write-down, equity stake, and credit facility all show a deal built around both cleanup and future upside.
Microsoft's Italy investment showed a different platform bet. The company plans to spend about $4.75 billion over two years on cloud and AI infrastructure, making Northern Italy one of its largest cloud regions in Europe. Microsoft also said the investment would support one million Italian jobs in AI and digital skills by 2025. This fits a wider race, with Amazon committing EUR17.8 billion in Germany through 2040 and $15.7 billion in Spain over the next decade.
Google's antitrust risk moved closer to the core business. The DOJ outlined possible remedies including a breakup, an end to exclusive search agreements with Apple and Samsung, limits on data tracking, and structural changes involving Chrome or Android. Search accounts for roughly 57% of Google's revenue, so the case is about distribution power and data advantages, not just fines.
The macro backdrop was mixed. U.S. payrolls rose 254,000 in September versus about 150,000 expected, and unemployment fell to 4.1%. The 10-year Treasury moved above 4% to 4.024%, while CPI rose 0.2% month over month and 2.4% year over year. Core CPI was 3.3%, keeping the rate-cut path less clean.
China's stimulus rally also faded after a 25% surge, with the CSI 300 dropping 7.1% when investors wanted more policy detail. Brent moved above $80 on Middle East risk before falling on ceasefire reports. Boeing's machinist strike delayed the 737 Max production ramp to 38 aircraft per month and added liquidity pressure after more than $8 billion of 2024 cash burn.