The Conversation

Why aren’t companies speeding up investment? A new theory offers an answer to an economic paradox

For years, I’ve puzzled over a question that seems to defy common sense: If stock markets are hitting records and tech innovation seems endless, why aren’t companies pouring money back into new projects?

Yes, they’re still investing – but the pace of business spending is slower than you’d expect, especially outside of AI.

From selling cars to selling handbags: with the arrival of Luca de Meo at Kering (Gucci, Balenciaga), is luxury becoming a sector like any other?

What do the luxury sector and the automotive sector have in common? Until recently, even asking the question would have seemed incongruous, given the apparent dissimilarity between brands engaged in mass production in search of economies of scale and those based on lavish spending and limited editions. The arrival of Luca de Meo (formerly of Renault) at the head of Kering signals a change for the group founded by French entrepreneur François-Henri Pinault, but also for the entire sector. Is playtime officially over?

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