Wealth gap not widening, says minister
Hayward argues rising incomes across sectors show economic gains are felt outside of IB
Bermuda’s economy contracted by 1.2 per cent in the second quarter of 2025, new figures show.
While employment income is up across several sectors, economic growth eased amid higher imports and reduced government spending.
Alisa Bernardo questioned Labour and Economy Minister Jason Hayward about whether that growth is being felt evenly and what’s ahead for key industries.
The Minister says rising employment income across multiple sectors suggests that economic gains are not limited to international business and that concerns about a widening wealth gap may be overstated.
Government data shows employment income was up 6.5 per cent year over year, with a near 20% gain recorded in public administration owing to a pay hike for public officers.
This was followed by international business at 8.2%, construction at 5.5% and hotels & restaurants at 4.8%.
Looking ahead, Minister Hayward described how significant the long-anticipated re-opening of the Fairmont Southampton will be in terms of boosting the economy.
View the Second Quarter GDP 2025 Report below.
Spain targets land access to lure young farmers, sector warns problems run deeper
The announcement came as the EU moves closer to signing its long-delayed Mercosur trade deal, a pact farmers warn could squeeze margins and weigh on young farmers’ willingness to commit to the sector
International News via Reuters:
The Spanish government on Wednesday rolled out new measures to open up access to farmland in a bid to revive an ageing farming sector, but farm groups cautioned that land alone will not keep young people in the countryside.
The announcement came as the EU moves closer to signing its long-delayed Mercosur trade deal, a pact farmers warn could squeeze margins and weigh on young farmers’ willingness to commit to the sector.
Farm unions across Europe are ramping up pressure over trade and farm incomes.
Prime Minister Pedro Sanchez said the government will launch a platform to centralise farmland data and unlock underused land, with around 17,000 state-owned rural plots to be assessed for use by young farmers.
Spain’s farm sector faces a sharp demographic imbalance, with about 40% of holders over 65 and fewer than 9% under 41, government data showed, mirroring an ageing trend across European agriculture.
Farm groups broadly welcomed efforts to improve access to land, but warned the measures would have limited impact unless broader economic pressures were addressed.
“Access to land is one of the main problems, but it’s far from the only one,” Luis Perez, a youth representative at farmer association COAG, told Reuters, citing low returns, paperwork and uncertainty around trade deals like EU-Mercosur.
Farmers’ union UPA said it backed the government’s approach but stressed that speed and funding would determine whether it makes a difference on the ground, also calling for sustained backing from the Common Agricultural Policy (CAP), the bloc’s main farm subsidy programme.
Sanchez said Spain would push for 10% of CAP funds to be set aside for generational renewal, despite limited support among EU governments.
Reporting by Jesus Calero, editing by Andrei Khalip and Ed Osmond
Bank of England working to protect against non-bank failure risk, Ramsden says
The British central bank is considering what failure arrangements are needed for important stablecoins and it still has to do more to ensure that firms and the BoE are ready to wind up a central counterparty safely
International News via Reuters:
The Bank of England is making progress towards ensuring that the financial system is safe in the event of a collapse of an institution outside the traditional banking sector, Deputy Governor Dave Ramsden said on Wednesday.
The British central bank is considering what failure arrangements are needed for important stablecoins and it still has to do more to ensure that firms and the BoE are ready to wind up a central counterparty safely, Ramsden said.
“Looking ahead, it’s important our resolution regime responds to changes in the financial system, including the growth of market-based finance and structural developments such as the introduction of new financial products,” he said in the text of a speech he was due to give at King’s College London.
Writing by William SchombergEditing by David Milliken
Nestle steps up infant formula damage limitation with CEO video apology
The recall could threaten Nestle’s strong position in China and other large markets for infant formula, thrusting CEO Philipp Navratil into crisis-management mode within a few months of being appointed
International News via Reuters:
Nestle’s CEO has issued a video apology for the recall of some batches of the company’s infant nutrition products in dozens of countries as the Swiss consumer goods giant stepped up its damage-limitation measures.
The recall could threaten Nestle’s strong position in China and other large markets for infant formula, thrusting CEO Philipp Navratil into crisis-management mode within a few months of being appointed to revitalise the multinational after a period of management turmoil.
At least 53 countries across Europe, the Americas, Asia and Africa have issued health warnings over infant formulas recalled by Nestle because of possible contamination with cereulide, a toxin that can cause nausea and vomiting.
Nestle shares, which have fallen by about 4% since the recall began in January, rose by 0.6% on Wednesday.
CEO APOLOGISES FOR ‘WORRY AND DISRUPTION’
Navratil, who is seeking to revive growth through a portfolio review, apologised for the “worry and disruption” the recall caused for parents, caregivers and other customers.
In the video published late on Tuesday, he said there have been no confirmed cases of illness linked to the recalled batches of SMA, BEBA, NAN and Alfamino formula, which were potentially contaminated by a quality issue in an ingredient called arachidonic acid oil (ARA) from a leading supplier.
Nestle confirmed a quality concern at one of its factories in the Netherlands in December and began a precautionary recall across several European countries, Navratil said.
“We have suspended sourcing ARA oil from the supplier concerned,” a Nestle spokesperson said, declining to name the supplier. “We have already restarted production using safe oil from another supplier.”
Amsterdam-listed ARA producer dsm-firmenich said that none of its products had been affected by the Nestle recall. Chinese company Cabio Biotech, shares of which plunged almost 12% on January 8, did not respond to a request for comment.
Cabio had said in its 2024 annual report that it was developing its relationship with major clients such as Nestle and targeting international expansion.
RECALL COULD BE ‘PRETTY DAMAGING’ IN CHINA, ANALYSTS SAY
Highlighting the global nature of Nestle’s supply chains, the recall quickly spread from Europe to large countries including Brazil, China and South Africa.
Nestle is one of the largest players in China’s infant formula market, estimated at about 185 billion yuan ($26.5 billion) in 2025 by China-focused Daxue Consulting.
China’s State Administration for Market Regulation last week urged Nestle to “fulfil its corporate responsibility”, recall the relevant batches and safeguard consumers.
Barclays analysts on Wednesday noted the pressure from the Chinese authorities and said the issue could be “pretty damaging” for the company, especially in China, where mothers are particularly sensitive to this issue because of previous milk contamination cases involving various producers.
($1 = 6.9727 Chinese yuan renminbi)
Reporting by Dave Graham in Zurich and Alexander Marrow in LondonAdditional reporting by Casey HallEditing by Ludwig Burger and David Goodman
2025 among world’s three hottest years on record, WMO says
The US National Oceanic and Atmospheric Administration also confirmed in data released on Wednesday that 2025 was the third-warmest year in its global temperature record, which dates back to 1850
International News via Reuters:
Last year was among the planet’s three warmest on record, the World Meteorological Organization said on Wednesday, as EU scientists also confirmed average temperatures have now exceeded 1.5 degrees Celsius of global warming for the longest since records began.
The WMO, which consolidates eight climate datasets from around the world, said six of them – including the European Union’s European Centre for Medium-Range Weather Forecasts (ECMWF) and the British national weather service – had ranked 2025 as the third warmest, while two placed it as the second warmest in the 176-year record.
The US National Oceanic and Atmospheric Administration also confirmed in data released on Wednesday that 2025 was the third-warmest year in its global temperature record, which dates back to 1850.
All eight datasets confirmed that the last three years were the planet’s three hottest since records began, the WMO said. The warmest year on record was 2024.
THREE-YEAR PERIOD ABOVE 1.5 C AVERAGE WARMING LEVEL
The slight differences in the datasets’ rankings reflect their different methodologies and types of measurements – which include satellite data and readings from weather stations.
ECMWF said 2025 also rounded out the first three-year period in which the average global temperature was 1.5 C above the pre-industrial era – the limit beyond which scientists expect global warming will unleash severe impacts, some of them irreversible.
“1.5 C is not a cliff edge. However, we know that every fraction of a degree matters, particularly for worsening extreme weather events,” said Samantha Burgess, strategic lead for climate at ECMWF.
Burgess said she expected 2026 to be among the planet’s five warmest years.
CHOICE OF HOW TO MANAGE TEMPERATURE OVERSHOOT
Governments pledged under the 2015 Paris Agreement to try to avoid exceeding 1.5 C of global warming, measured as a decades-long average temperature compared with pre-industrial temperatures.
But their failure to reduce greenhouse gas emissions means that target could now be breached before 2030 – a decade earlier than had been predicted when the Paris accord was signed in 2015, ECMWF said.
“We are bound to pass it,” said Carlo Buontempo, director of the EU’s Copernicus Climate Change Service. “The choice we now have is how to best manage the inevitable overshoot and its consequences on societies and natural systems.”
Currently, the world’s long-term warming level is about 1.4 C above the pre-industrial era, ECMWF said. Measured on a short-term basis, average annual temperatures breached 1.5 C for the first time in 2024.
NOAA said 2025 exceeded the pre-industrial average by 1.34 C, or 2.41 F.
The U.S. agency also said that upper ocean heat content reached a record high in 2025, indicating that the Earth’s oceans reached their highest heat levels, which drives stronger storms, heavier rainfall, and rising sea levels.
EXTREME WEATHER
Exceeding the long-term 1.5 C limit would lead to more extreme and widespread impacts, including hotter and longer heatwaves, and more powerful storms and floods.
Already in 2025, wildfires in Europe produced the highest total emissions on record, while scientific studies confirmed specific weather events were made worse by climate change, including Hurricane Melissa in the Caribbean and monsoon rains in Pakistan which killed more than 1,000 people in floods.
Despite these worsening impacts, climate science is facing political pushback. U.S. President Donald Trump, who has called climate change “the greatest con job”, last week withdrew from dozens of U.N. entities including the scientific Intergovernmental Panel on Climate Change.
The long-established consensus among the world’s scientists is that climate change is real, mostly caused by humans, and getting worse. Its main cause is greenhouse gas emissions from burning fossil fuels like coal, oil and gas, which trap heat in the atmosphere.
Reporting by Kate Abnett and Valerie Volcovici; Additional reporting by William James and Emma Farge; Editing by Alison Williams, Alexandra Hudson
BTA makes two key appointments
[Hamilton, Bermuda, January 14, 2026] The Board of Directors of the Bermuda Tourism Authority (BTA) today announced the appointment of Michael DeCouto as Chief Sales & Marketing Officer and Kiara Isaac as Director of People and Culture, strengthening the organisation’s executive leadership and operations team.
Michael DeCouto has been appointed Chief Sales & Marketing Officer (CSMO). In this role, he will provide strategic leadership for the Authority’s global sales and marketing activities, including brand management, digital marketing, partnerships, public relations and visitor experiences. Reporting to the Chief Executive Officer, he will work closely with internal teams and external stakeholders to support the objectives of Bermuda’s National Tourism Plan and to strengthen the island’s competitive position in key international markets.
DeCouto brings senior leadership experience across destination marketing, financial services, digital transformation and brand strategy. Most recently, he served as Executive Vice President and Chief Digital & Marketing Officer at Clarien Bank, where he oversaw integrated marketing, digital platforms, payments, product strategy and corporate communications. During this period, the organisation achieved sustained revenue growth, expanded digital engagement, and continued development of brand governance and operating practices.
Earlier in his career, DeCouto held senior leadership roles with the Bermuda Department of Tourism, where he was responsible for global consumer marketing, brand repositioning, and international campaign execution. During this time, Bermuda experienced increased visitor arrivals, improved visitor spend and enhanced brand awareness across key source markets.
Commenting on the appointment, BTA Acting Chair William “Billy” Griffith said:
“Michael brings deep institutional knowledge of Bermuda’s tourism landscape, coupled with strong commercial and digital expertise. The Board is confident that his leadership will support the Authority’s mandate to deliver disciplined, efficient, market-responsive sales and marketing strategies that drive sustainable growth and value for the island.”
DeCouto said, “I am pleased to return to destination marketing at a time when Bermuda is focused on strengthening demand, improving yield and ensuring that tourism growth delivers broad economic benefit. I look forward to working closely with the Board, the executive team and industry partners to advance these priorities.”
The Authority has appointed Kiara Isaac as Director of People and Culture. In this role, she will lead the organisation’s people strategy and human resources functions, with a focus on strengthening leadership capability, cultivating a high-performance culture, and ensuring the Authority is equipped with the talent and skills required to deliver on its mandate. Her portfolio includes workforce planning, employee relations, succession planning and career pathways, standards and training, and performance management.
“I am excited to join the Authority and to work alongside its talented team,” said Isaac. “My focus will be on creating an environment where people feel valued, supported and empowered to grow, with clear pathways for development and leadership, and a culture that enables everyone to contribute their best.”
Isaac brings extensive experience in strategic people leadership across public-sector and healthcare environments, with a strong track record of partnering with executive teams to drive organisational effectiveness in complex and highly regulated settings. Prior to joining the BTA, she served as an HR Business Partner with the Bermuda Government, working closely with Permanent Secretaries and senior leaders across multiple departments to support workforce strategy, organisational design, leadership development, and talent management.
Previously, she held senior human resources roles with the Bermuda Hospitals Board, where she supported large and diverse workforces and played a key role in advancing people-centred initiatives during periods of organisational transformation and growth, with an emphasis on change leadership, capability building, and employee engagement.
Isaac holds a Master of Science in Human Resources Management from the University of Birmingham and is a Member of the Chartered Institute of Personnel and Development.
The Board noted that these appointments reflect a continued focus on strengthening governance, leadership capacity, and organisational effectiveness across the Authority.
Separately, the Board confirmed that the process to appoint a substantive Chief Executive Officer is underway and will conclude following the completion of all required assessments: “The Board is committed to selecting the right leader to advance Bermuda’s tourism sector and to ensuring the appointment reflects the Authority’s long-term strategic needs.”
ABOUT THE BERMUDA TOURISM AUTHORITY: The Bermuda Tourism Authority (BTA) is a quasi-autonomous organisation responsible for the marketing and promotion of Bermuda as a tourism destination. Established in 2014, the Authority works in partnership with government, industry stakeholders and international partners to support sustainable tourism growth and economic development for Bermuda. The BTA operates under the oversight of a Board of Directors and is funded through a combination of Government of Bermuda funding and visitor revenues.
Fattire massive: Tight battles at the summit as season heats up
After four high-octane rounds of the Fattire Massive Mountain Biking season, the battle for supremacy on Bermuda’s technical trails has reached a fever pitch.
In the premier Open 60 Minute Male division, Che’Quan Richardson has established himself as the rider to beat. With 76 points, he holds an 11-point cushion over David Byrne (65), while veteran Kavin Smith remains firmly in the hunt in third with 62 points.
The Open 60 Minute Female category is witnessing the tightest contest of the season. Wendy-Ann Thomas holds the slenderest of leads at the summit with 62 points, but faces immense pressure from Skye Ferguson and Ashley Robinson, who are locked together in second, just two points back.
- Open 30 Male: William Coatesworth leads (94 pts) ahead of Manning Smith (87 pts).
- Open 30 Female: Kelise Wade remains in command with 72 points.
While many divisions are trading blows, the Novice Female category has seen a clinical display of dominance. Arlene Macguinness sits on a perfect score of 100 points, leaving Catherine Power and Katrina Carr (both 80 pts) to battle for the remaining podium spots.
In the Novice Male ranks, Chris Jansma (75 pts) maintains a steady lead over Sean Dickinson (62 pts) as the field prepares for the grueling middle stages of the calendar.
Denmark and Greenland to face Vance in high-stakes White House meeting
Trump says the strategically located and mineral-rich island is vital to U.S. security and the United States must own it to prevent Russia or China occupying it
International News via Reuters:
The Danish and Greenlandic foreign ministers were meeting U.S. Vice President JD Vance at the White House on Wednesday, as President Donald Trump reiterated his demand that Washington must take control of Greenland, an autonomous territory of Denmark.
Trump says the strategically located and mineral-rich island is vital to U.S. security and the United States must own it to prevent Russia or China occupying it. He says all options are on the table for securing the territory.
“It is vital for the Golden Dome that we are building,” he said in a social media post just hours before the meeting was due to start, referring to a proposed missile defence system.
‘NOT FOR SALE’
Trump also said that NATO would become far more formidable and effective with Greenland in the hands of the U.S. “Anything less than that is unacceptable,” he wrote.
In a follow-up post citing Russia and China, Trump wrote: “NATO: Tell Denmark to get them out of here, NOW! Two dogsleds won’t do it! Only the USA can!!!”
Greenland and Denmark say the island is not for sale, threats of force are reckless and security concerns should be resolved among allies. Prominent EU countries have backed Denmark.
Ahead of the meeting, Greenland and Denmark said they had begun to increase their military presence in and around Greenland in close cooperation with NATO allies, as part of their promise to beef up Arctic defence.
The increased military presence would include a range of exercise activities throughout 2026, according to the Danish defence ministry.
AVOIDING ‘ZELENSKIY MOMENT’ AT WHITE HOUSE
When Denmark’s Foreign Minister Lars Lokke Rasmussen and his Greenlandic counterpart, Vivian Motzfeldt, meet Vance and Secretary of State Marco Rubio at around 1530 GMT, their aim will be to de-escalate the crisis and find a diplomatic path to satisfy U.S. demands for more control, analysts said.
“The end goal is to find some form of accommodation, or make a deal that would satisfy that need, or at least calm down the rhetoric sufficiently from Donald Trump,” Andreas Osthagen, research director for Arctic and ocean politics at the Oslo-based Fridtjof Nansen Institute, told Reuters.
Noa Redington, an analyst and former political adviser to previous Danish premier Helle Thorning-Schmidt, said concerns were high in Denmark and Greenland that Motzfeldt and Rasmussen could be treated in the same way as Ukrainian leader Volodymyr Zelenskiy, when he suffered a public humiliation in a meeting with Trump – and Vance – at the White House in February 2025.
“This is the most important meeting in modern Greenland’s history,” he told Reuters.
Denmark and Greenland had originally sought a meeting with Rubio, hoping to have a discussion among top diplomats on resolving the crisis between the two NATO allies.
But Denmark’s Rasmussen said Vance had also wanted to participate and that the vice president would host the meeting himself, at the White House.
GREENLAND PREFERS STICKING WITH DENMARK
Greenlandic leaders appear to be shifting their approach in how they are handling the diplomatic crisis.
Until recently, they were stressing Greenland’s path to independence. But now their public statements put more emphasis on Greenland’s unity with Denmark.
“It’s not the time to gamble with our right to self-determination, when another country is talking about taking us over,” Greenlandic Prime Minister Jens-Frederik Nielsen told Greenland daily Sermitsiaq in an interview published Wednesday.
“That doesn’t mean that we don’t want something in the future. But here and now we are part of the kingdom, and we stand with the kingdom. That’s crucial in this serious situation,” he said.
Motzfeldt had a similar message.
“We choose the Greenland we know today – as part of the Kingdom of Denmark,” she said in a statement released by the Danish ambassador to the U.S. late on Tuesday.
EUROPEAN ALLIES BACK DENMARK AND GREENLAND
Trump’s desire for Greenland contrasts with Americans’ opposition to annexation of the Arctic island, according to a new poll.
Just 17% of Americans approved of Trump’s efforts to acquire Greenland, and substantial majorities of Democrats and Republicans opposed using military force to annex the island, the Reuters/Ipsos poll found.
Some 47% of respondents disapproved of U.S. efforts to acquire Greenland, while 35% said they were unsure, in the two-day poll which concluded on Tuesday.
Meanwhile, European allies reiterated their backing for Denmark and Greenland ahead of the White House meeting, with European Commission President Ursula von der Leyen saying on Wednesday Greenlanders could “count on us”.
In Paris, France’s Emmanuel Macron said that, if the sovereignty of a European country and ally were to be affected, the knock-on effects would be unprecedented. France is to open a consulate in Nuuk on February 6.
Reporting by Jacob Gronholt-Pedersen in Nuuk, Tom Little and Stine Jacobsen in Copenhagen; John Irish, Elizabeth Pineau and Louise Rasmussen in Paris; Jan Strupczweski and Inti Landauro in Brussels; Susan Heavey and Doina Chiacu in Washington; Writing by Terje Solsvik and Gwladys Fouche; Editing by Alex Richardson
Japanese yen rebounds from 18-month low against dollar
The yen has tumbled on concerns about looser fiscal and monetary policy as speculation rises that Prime Minister Sanae Takaichi will call an early snap election
International News via Reuters:
The Japanese yen rebounded from an 18-month low against the dollar on Wednesday as Japanese officials warned of potential intervention to shore up the currency, while the U.S. currency was modestly weaker against the euro as traders continued to evaluate likely Federal Reserve policy.
The yen has tumbled on concerns about looser fiscal and monetary policy as speculation rises that Prime Minister Sanae Takaichi will call an early snap election, a move that could delay parliamentary approval of a bill that grants the government the right to issue deficit-covering bonds.
“Takaichi’s plan to leverage her astonishingly high personal ratings in calling a snap election is translating into a rise in bets on reflation in the Japanese economy, more government spending, and higher yields,” said Karl Schamotta, chief market strategist at Corpay in Toronto. “All of that is translating into downward pressure on the yen, which of course is being offset by intervention threats from authorities.”
YEN WEAKNESS OVERDONE?
Japanese Finance Minister Satsuki Katayama issued another verbal warning on Wednesday, saying officials would take “appropriate action against excessive FX moves without excluding any options.”
Some also see weakness in the yen as having moved too far.
Analysts at LMAX Group note that from a technical perspective, “there are signs of a meaningful top in place after the market put in a multi-year high in 2024.”
From a fundamental perspective, “speculative yen longs have been largely unwound, leaving room for fresh short positioning if USDJPY breaks higher through 160, though rising intervention warnings from Japanese officials add two-way risk,” they said in a report.
The yen strengthened 0.56% against the greenback to 158.27 per dollar. It earlier reached 159.45, the weakest since July 2024.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro,fell 0.2% to 98.99, with the euro up 0.12% at $1.1655.
FEDERAL RESERVE EXPECTED TO HOLD RATES
The dollar is struggling to continue a rally that began in late December as traders evaluate Federal Reserve policy against other crosswinds.
The U.S. central bank is expected to keep rates on hold for several months, which, along with rising geopolitical risks, is supportive of the currency.
Tehran has warned neighbors hosting U.S. troops that it would hit American bases if Washington strikes, a senior Iranian official told Reuters on Wednesday, as Iran seeks to deter U.S. President Donald Trump’s threats to intervene on behalf of protesters.
Headwinds include concerns about Fed independence as the Justice Department undertakes a criminal investigation into Fed Chair Jerome Powell in relation to a building renovation.
However, “fears of a dilution in the Federal Reserve’s independence have faded over the last few days in line with political pushback among Republicans, as well as a defense from central bankers themselves,” said Schamotta.
Traders are waiting on a Supreme Court ruling on the legality of Trump’s emergency tariffs, which could come as soon as Wednesday.
Trump is expected to pursue alternative methods to enact the trade levies if the current ones are struck down, but it is unclear whether they would generate as much income or if the U.S. would be ordered to return levies that have already been collected.
The dollar was little changed on data on Wednesday showing that U.S. producer prices picked up slightly in November amid a surge in the cost of gasoline, while U.S. retail sales increased more than expected in November.
In cryptocurrencies, bitcoin gained 1.42% to $95,395.
Reporting by Karen Brettell; Additional reporting by Gregor Stuart Hunter, Amanda Cooper, Rod Nickel
Bermuda’s bowling elite begin marathon quest for Team Bermuda
The hunt for a place in Team Bermuda officially begins this week as the island’s elite bowlers take to the lanes for the 2026 National Championship and Selection Trials.
In a grueling test of endurance and technical skill, participants will bowl 30 games across five distinct and challenging professional lane patterns. The bowler atop the standings after the final frame will be crowned the 2026 National Champion and secure a central role in Bermuda’s international summer campaign.
The trials serve as the primary gateway for several major international fixtures later this year:
- CAC Games: Top performers travel to Santo Domingo, Dominican Republic (July 24 – August 8).
- IBF World Cup: Four spots are available for the prestigious October tournament in Munich, Germany.
- Pan American Champion of Champions: Two bowlers will qualify for the Costa Rican event in late October.
Team Manager Steven Riley expects the demanding “oil patterns” to separate the field.
“The competition will be high, but we expect the scores to reflect the challenging lane patterns used to test the versatility of our bowlers,” Riley noted.
Veterans like Lamar Richardson and Dennis Joell—who recently returned from the World Championships in Hong Kong—are expected to face stiff competition from a surging crop of younger talent.
The Schedule
- Rounds 1 & 2: Jan 17th–18th (6 games each)
- Rounds 3 & 4: Jan 31st – Feb 1st
The Final Round: Sunday, February 8th
Italian antitrust regulator to investigate role of large retailers in food sector
The regulator said it would specifically look into the retailers’ purchasing power and policies adopted when dealing with suppliers, who are often smaller and lament poor profit margins on their products
International News via Reuters:
Italy’s antitrust regulator said on Wednesday it had opened an investigation into big retail groups operating in the country and their role in the price dynamics of the food sector.
The regulator said it would specifically look into the retailers’ purchasing power and policies adopted when dealing with suppliers, who are often smaller and lament poor profit margins on their products.
The probe comes as food prices are rising, the statement said, adding that these were up 24.9% between October 2021 and October 2025, well above the 17.3% increase in the cost of general consumer goods.
“In the face of these rises in consumer prices, agricultural producers often complain of a squeeze on their margins…which could be partly attributable to the significant imbalance in bargaining power between farmers and large retail chains,” it added.
The watchdog will also analyse whether retailers charge suppliers for services such as special sales and positioning of their products and the effect on the market of the rise of products with retailers’ brands, known as private labels.
The regulator did not mention specific large-scale retail groups.
The Italian food retail market is large and growing but very fragmented, with supermarkets still co-existing alongside traditional grocery stores and open-air markets. Although foreign brands have a substantial presence in the country, domestic players still have the larger share of the market.
Reporting by Giulia SegretiEditing by Keith Weir
