Latest news with #BernardArnault
Irish Times
3 days ago
- Business
- Irish Times
Truth Social diplomacy, a shock court ruling and fashion magnate advice: A week inside the EU-US tariff talks
European Commission president Ursula von der Leyen is not short of advice about how to handle Donald Trump. Bernard Arnault, founder and chief executive of French luxury brand giant LVMH, which owns Louis Vuitton, Moët Hennessy and Dior, privately chipped in with his opinion in recent days. The French businessman sat down with Ms von der Leyen late last week, the day before the US president threw European Union-US negotiations into another tailspin, by threatening to introduce blanket 50 per cent tariffs on June 1st. Mr Trump was later persuaded to push his sudden deadline out to July 9th , the date an original 90-day pause on the higher rates of his 'liberation day' tariffs was due to end. READ MORE Mr Arnault, who runs one of Europe's biggest companies, met Ms von der Leyen in the European Commission's headquarters in Brussels to talk about how to avert a transatlantic trade war. The commission, the European Union's (EU) executive branch that sets the bloc's trade policy, has been making little progress in talks with the Trump administration. [ US federal court blocks Trump from imposing sweeping tariffs Opens in new window ] The LVMH executive told Ms von der Leyen he was concerned about the uncertainty caused by Mr Trump's tariffs on global trade. Mr Arnault singled out the champagne wing of his empire, Moët & Chandon, during the discussion. In the May 22nd meeting, the details of which have not been reported before, Mr Arnault stressed the need to reach a deal on tariffs with Mr Trump. That is easier said than done. Ford Chief Lisa Brankin on accelerating the switch to EVs Listen | 41:35 For the last two months European businesses have been facing 10 per cent tariffs, which are import taxes, when selling goods into the US. Cars and steel products sold from the EU to the US have been subject to 25 per cent levies. The threat of across-the-board tariffs of 20 per cent, or even 50 per cent, if negotiations failed, has caused growing alarm across European industries. Separate duties targeting pharmaceutical imports are being considered, which would be a big economic blow to Ireland. But the New York-based Court of International Trade on Wednesday struck down Mr Trump's sweeping 'liberation day' tariffs, ruling these were not legal. The US administration has said it will appeal. 'It's a very significant ruling by the court. It gives you some hope that the rule of law still applies in the United States. Let's see what happens,' said Ignacio Garcia Bercero, who was the commission's chief negotiator on an EU-US trade deal abandoned in 2016. Current talks should pivot to focus on steel, aluminium and automobile tariffs, which are not affected by the ruling, the former senior official told The Irish Times. Negotiators had been racing to hammer out a deal with Mr Trump and head off the worst of his damaging trade levies before July 9th. The court ruling may buy the EU side more time. Sources in Dublin and in Brussels are optimistic the US president ultimately wants an agreement, despite the distance between negotiating positions at the moment. [ Court tariffs bombshell should inspire trading partners to defy Trump ] Mr Trump's post on Truth Social threatening 50 per cent tariffs took people by surprise last Friday, even if it was quickly walked back. 'It's all very volatile,' one Government source said. The shopping list of demands put forward by the White House at one point or another is long. It includes the EU rolling back tech regulations, lowering food safety standards that bar US chlorine-washed chicken and hormone-treated beef and scrapping digital services taxes in France and other countries. Mr Trump has also criticised value-added tax (VAT) charged on goods and services. Working out what is negotiating bluster and what the US side is genuinely interested in has been difficult. 'Don't ask me to predict what a final deal will look like,' one commission official said. The EU has offered to buy more US soybeans and liquefied natural gas (LNG) and to make it easier for the US to sell fish and lobster to the EU and for both sides to drop pre-Trump tariffs on industrial goods to zero. Some easing or tweaks to EU laws have reportedly been mentioned as another possible concession, but a rollback of online guardrails or food safety standards is a red line the commission won't cross. Before the New York court ruling there was a growing expectation the EU would have to stomach some baseline level of US tariffs, likely to be the global 10 per cent rate. Irish businesses were concerned about a no-deal scenario that would leave exports, such as Jameson whiskey or Kerrygold butter, facing a 20 per cent tariff. Irish products would then be sitting on a US supermarket shelf beside Scotch whiskey or a UK butter brand subject to a lower 10 per cent levy. Ms von der Leyen's top adviser, Bjoern Seibert, is right at the heart of the EU's response, directing the strategy behind the scenes. It is understood many of the decisions made inside the commission on this flow through him. He briefed representatives from the 27 EU states at the start of this week. The influential adviser suggested a clearer picture of what the US wanted in a deal was starting to emerge, two people said. Exact details of the ongoing negotiations are being kept under wraps. EU trade commissioner Maros Šefčovič and US commerce secretary Howard Lutnick had planned to focus their discussions on key sectors such as pharmaceuticals, cars, steel and computer chips. The pair speak on the phone regularly and have met several times. Other contested points were being discussed by officials. A delegation of commission trade staff is scheduled to travel to the US next week for talks. The two sides have been exchanging papers setting out their positions, something seen as a forerunner to intensive negotiations taking place in June. The commission has a set of retaliatory tariffs ready to go, if talks stall. These tariffs on US soybeans, Harley-Davidson motorbikes, oranges, steel and other products were paused until mid-July to signal to the US that Europe wanted to talk. A second, larger package of counter-tariffs under consideration would hit US aircraft manufacturers, bourbon whiskey, the automobile industry and many other sectors. 'You need to have them ready ... You keep the gun on the table,' one EU official said of the measures. [ Tariff threat undermines State's ability to deliver economic forecasts, says Donohoe Opens in new window ] The European aviation industry previously warned the commission against targeting Boeing and other US manufacturers, correspondence shows. In an April 14th letter to Mr Šefčovič, Airlines for Europe, which counts Ryanair as a member, said import duties would have a 'severe impact' on European airlines. Companies had placed 'significant' orders for US-made aircraft that they could not cancel, the correspondence seen by The Irish Times said. The Government has objected to the inclusion of US bourbon, civil aircraft and medical devices on the commission's tariff list, which will be finalised next month. EU officials have been drawing up a contingency plan to hit the US even harder, should negotiations collapse and steep tariffs kick in. This would focus on services, rather than goods and products. One option is the EU's anti-coercion instrument (ACI), which has been dubbed the 'big bazooka'. This would allow the bloc to put a levy on US tech giants' digital ad revenues in Europe and restrict US firms from bidding on public contracts in the EU. The Government here is fiercely opposed to tech multinationals being dragged into the thick of the tariff dispute, given the number of those US companies with bases in Dublin. It is understood some commission officials believe there is a way to put tariffs on services without having to resort to the bazooka, which requires a months-long investigation first to confirm the EU is facing economic coercion. The federal trade court ruling has certainly strengthened the EU's hand in negotiations. However, if Mr Trump's blanket measures remain blocked, he may be more likely to pursue tariffs on targeted industries. Pharma could be top of the list. A few weeks back a senior commission official said jokingly that if the EU landed a deal in July to suspend all US tariffs, he would head off on a holiday for the rest of the month, plus August. It's fair to say nobody is booking flights or hotels just yet.
Asharq Al-Awsat
4 days ago
- Business
- Asharq Al-Awsat
LVMH Fashion Brand Dior Says Creative Director Chiuri Has Stepped Down
Dior, the fashion brand that is part of French luxury giant LVMH, said on Thursday that Maria Grazia Chiuri had left her job as creative director of its women's collections, a post she had held since 2016. Chiuri's departure is likely to pave the way for Jonathan Anderson as her replacement, Reuters said. Anderson, who left LVMH's smaller label Loewe in March 17, is one of a new generation of designers taking over some of the world's biggest fashion labels amid a sweeping industry overhaul. He is due to create a June collection for Dior Men's Fashion, LVMH CEO Bernard Arnault said last month. A spokesperson for Dior declined to comment on succession plans. Bernard Arnault's daughter Delphine Arnault, the chief executive of Christian Dior Couture, thanked Chiuri for creating "highly desirable collections". "She has written a key chapter in the history of Christian Dior, contributing significantly to its tremendous growth," she said in a statement. Chiuri, in the same statement, said she was "immensely proud" of the nine years she spent in the job.
Telegraph
4 days ago
- Business
- Telegraph
Forget celebrity labels – these are the Provence rosés really worth their price tag
When luxury-goods conglomerate LVMH acquired a controlling stake in Château d'Esclans – the makers of Whispering Angel – at the end of 2019, the deal crystallised the existence of a new era for Provence rosé. Perhaps you feel all fuzzy and escapist about pale pink rosé from the south of France, like you might about croissants from a village boulangerie or chicken with a million cloves of garlic at a family-run bistro on a dappled square. The reality, these days, is that a lot of Provence rosé is controlled by big money. It's not just the celebrity wine producers: the Brad Pitts and Carla Brunis. It's also the multi-millionaires and billionaires whose organisations sell this shimmering, pale pink liquid in beautiful bottles, like a fragment of a summer dream, to the likes of me and you. Take the case of LVMH, whose founder and CEO, Bernard Arnault, is usually found near the top of Forbes 's billionaires list, not far beneath Elon Musk and Mark Zuckerberg. As well as Château d'Esclans, LVMH also owns (since 2019) Château Galoupet, a historical rosé estate overlooking the Mediterranean, and (since 2023) a controlling stake in the well-known Château Minuty, close to St Tropez. Rosé wine specialist Elizabeth Gabay MW has estimated that the production of Whispering Angel alone (d'Esclans has several other brands) is around 14 million bottles and that Minuty's combined brands number around nine million bottles. For perspective, the entire Côtes de Provence appellation, covering some 50,000 acres, made the equivalent of 102 million bottles in 2023. It doesn't stop there. If you shop in Waitrose, you may have been tempted by the beautiful ridged bottles of Ultimate Provence (sadly I'm not so keen on the £20 wine inside as I am on the vessel), which, along with Château de Berne, is part of MDCV, whose website claims sales of 'over 4 million bottles' from its French estates. The owner of MDCV is Mark Dixon, a Monaco-based The Sunday Times Rich List regular and the founder of the serviced office business IWG. Now, I like some of the Minuty wines; they are typically streamlined and pure, with a silky strength. I also like Rock Angel by Whispering Angel (around £27.50) and, especially, the scented G de Galoupet Côtes de Provence (around £22.50, Ocado and Jeroboams), an immaculate Provence rosé that is recommended. But those prices are toppy. Although not as toppy as the price of Lady A Rosé (£24.99 if you buy it at Selfridges, though it has just gone in to M&S and Ocado at £17.50), a wine that seems to be having a tilt at becoming the new Whispering Angel. It was created for the 40th birthday of Meghan Sussex's bestie Markus Anderson, has a butterfly motif designed by Damien Hirst on the bottle and is made at Château La Coste, which is owned by Irish property developer Paddy McKillen. Soho House Chateau La Coste Lady A Rosé, £24.99, Selfridges Lady A is marketed on the Ocado website as a 'Provence Rosé'. It is indeed crafted (their word) at Château La Coste, which is in Provence – but it doesn't carry the official Provence rosé appellation d'origine protégée (AOP). Instead, it has a more modest IGP Méditerranée designation – indication géographique protégée, or 'protected geographical indication'. Formerly known as vin de pays, IGP wines can be very good, and I often recommend them as budget-friendly alternatives to pricier Côtes de Provence or Côteaux d'Aix en Provence bottles. But in the case of Lady A, the taste doesn't justify the price. If you're in for that level of spend, or thereabouts, I have listed the Provence rosés that I love below. Please note that as I write this it's early in the season and not all the wines I would like to have tasted have landed. But the sun is out, and we want pink in our glasses now. I also have a more budget-friendly rosé article in the pipeline that will look at rosé from beyond the Provence AOPs. Watch out for that as there are some brilliant cheaper wines around this year and I have lots of tips. In the meantime, enjoy! Try these
News18
4 days ago
- Business
- News18
How China Is Crippling Global Luxury Brand Louis Vuitton's Parent Company
Last Updated: According to a Bloomberg report, LVMH indicated that it had failed to meet market expectations in the last quarter, with particularly sharp declines in Asia. The glitter of the global luxury market continues to dim, after industry titan LVMH, the short for Moët Hennessy Louis Vuitton and also the parent company of popular brand Louis Vuitton, signalled an ongoing weakness across key markets. The Paris-headquartered conglomerate, home to iconic brands like Louis Vuitton, Dior, and Tiffany & Co, warned investors and analysts that sluggish demand, especially in China, is likely to persist into the second quarter. According to a Bloomberg report, LVMH indicated that its recent sales struggles may not abate anytime soon. The company failed to meet market expectations last quarter, with particularly sharp declines in Asia. Organic revenue growth across China and the broader Asia-Pacific region dropped by 11%, mirroring the fall seen over the past year. This region is critical for the luxury giant, accounting for roughly 30% of its total revenue, while the United States contributes another 24%. The downturn in China, historically a powerhouse for luxury consumption, is being driven by a mix of weak consumer sentiment and macroeconomic challenges. The country's post-pandemic economic recovery remains tepid, and fresh trade tensions, exacerbated by new US tariffs, are further dampening consumer confidence. This grim forecast has cast a long shadow over the broader luxury sector. Companies like Kering (owner of Gucci), Richemont (parent of Cartier), Tapestry, Ralph Lauren, and Capri Holdings are all expected to feel the ripple effects. Capri, notably, recently sold its Versace label to Prada for $1.4 billion, underscoring the shifting tides within the industry. Investor sentiment is also undergoing a notable shift. On social media platform Stocktwits, traders' outlook on LVMH has cooled, with sentiment sliding from 'bullish" to 'neutral", a sign that optimism about a quick rebound is waning. Founded in 1987 through the merger of Moët Hennessy and Louis Vuitton, LVMH has grown into the world's largest luxury goods conglomerate. Under the stewardship of chairman and CEO Bernard Arnault, currently one of the richest individuals globally, the company has expanded its footprint across fashion, jewellery, watches, perfumes, wines, and spirits. Its impressive portfolio includes names like Fendi, Givenchy, Bulgari, and Hennessy, catering to affluent clientele in nearly every corner of the globe. But even this powerhouse is not immune to macroeconomic headwinds. As China, once the jewel in the crown of global luxury, retreats from its spending highs, the future of the sector is increasingly uncertain. American consumers, too, are showing signs of restraint, potentially exacerbated by political and fiscal uncertainty ahead of the 2024 US elections. All Eyes on Ralph Lauren Amid the sector's growing uncertainty, some investors are watching Ralph Lauren's upcoming results for clues about the future direction of luxury retail. The US label, known for its aspirational branding and international presence, may provide early signs of whether the slump is spreading or if a rebound could be on the horizon. Watch India Pakistan Breaking News on CNN News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! First Published: May 22, 2025, 18:31 IST
Fashion United
22-05-2025
- Business
- Fashion United
Arnault slams France's tax plans: ‘Encouragement to relocate'
Bernard Arnault, CEO of the world's largest luxury firm LVMH, strongly criticised the French government during a hearing in the French Senate. In his argument, he stated that 'it is very bad for the state to interfere in the management of private companies'. This statement came in response to President Emmanuel Macron's recent call for economic patriotism. The hearing was part of a broader evaluation of state support for large companies. Arnault emphasised that government interference in strategic corporate choices has rarely led to good results in the past. The chief executive said: "In general, that leads to catastrophes." He added that LVMH is 'perhaps the most patriotic company in France', with strong roots in the French economy and culture. 'Tax increase could drive luxury industry out of France' LVMH – owner of iconic brands such as Louis Vuitton, Dior, Moët & Chandon and Hennessy – had already criticised new fiscal proposals in the French budget for 2025 earlier this year. These include an increase in corporation tax for large companies. Arnault fears that such measures will encourage companies to relocate, moving production to countries with more favourable economic conditions. The US has become particularly attractive in that regard, especially under the investment climate stimulated by Donald Trump's re-election campaign. LVMH now owns three Louis Vuitton production facilities in the US, including one in Texas. Arnault stressed, however, that this is not a new phenomenon. He said: 'We have been producing in the US since 1989; there is nothing new under the sun.' According to him, the American customs regulations offer significant advantages for locally produced goods. Fashion as a global industry Arnault's comments touch on a broader tension in the luxury sector: how do companies remain true to their national roots in an industry that operates increasingly globally? The French fashion industry, often seen as cultural heritage, is simultaneously driven by international demand, global production and complex supply chains. François-Henri Pinault, CEO of rival Kering (parent company of Gucci, Yves Saint Laurent and Balenciaga), agreed with this realistic vision. During a previous hearing, he stated: 'It's no secret that Gucci makes Italian bags from leather from Texas.' Patriotism versus pragmatism The discussion underlines the growing tension between national policy and the reality of an international market. While political leaders are pushing for economic patriotism, large luxury groups continue to optimise their production and investments worldwide. This presents policymakers, companies and consumers with a difficult balance: remaining true to the French heritage, without losing competitiveness on the world stage. For the French luxury sector, which accounts for billions of euros in exports and hundreds of thousands of jobs, such debates are anything but theoretical. The outcome of these debates may determine the course of some of the world's most influential fashion houses. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
