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Gucci Parts Ways With Design Chief Sabato De Sarno Amid Weak Sales

Gucci’s design chief, Sabato De Sarno, is stepping down after less than two years in the role, as the luxury brand struggles with declining sales. Kering, Gucci’s parent company, announced on Thursday. De Sarno, who succeeded Alessandro Michele in 2023, faced challenges in reviving the brand with his minimalist designs, which analysts suggest did not resonate with the exuberant image Gucci is known for.

Gucci’s revenues dropped by 25% in Q3, significantly impacting Kering’s overall performance. The brand has been under pressure to attract wealthier consumers and regain its popularity. De Sarno’s departure comes just ahead of Kering’s full-year financial results, and its shares dropped almost 3% in early trade.

Analysts have pointed out that Gucci’s troubles include overexposure to the Chinese market, reliance on middle-class customers, and a declining brand image. Finding a replacement for De Sarno will be challenging, with potential candidates like Pierpaolo Piccioli and John Galliano under consideration.

As the luxury industry faces slow sales due to weak demand from China and inflation, Gucci’s next steps will be critical in reversing its fortunes.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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