FT : BA owner warns EU competition rules make easyJet bid ‘very difficult’

BA owner warns EU competition rules make easyJet bid ‘very difficult’
IAG chief Luis Gallego calls for overhaul of how bloc evaluates airline takeovers

The head of British Airways’ owner International Airlines Group has warned European competition rules make bidding for easyJet “very difficult”, as he called for an overhaul of the way Brussels viewed airline deals.

EasyJet’s future has been thrown into uncertainty after US private credit group Castlelake last month said it was considering a possible bid for the budget airline.

“It’s something that we can explore but with the current competition regulation I see it as very, very difficult,” IAG chief executive Luis Gallego told the FT of a potential offer for the low-cost carrier.

“We are open to everything, not only easyJet,” Gallego said. “We understand that aviation must consolidate in order to be more efficient . . . I think we can explore everything that we consider [can make us] a stronger group.” The company regularly talks to other airlines about consolidation opportunities, he added.

The European industry has had deals for its smaller carriers in recent years, but “if the regulation changes, maybe we can have the opportunity for bigger movements in Europe”, Gallego added.

Any Castlelake offer is likely to feature partners, including potentially a European airline, in order to comply with local ownership rules. However, any deal featuring IAG or Air France-KLM would involve significant overlap that would run into antitrust issues. Castlelake has until June 26 to table a formal bid for the airline.

Gallego refused to comment on Castlelake — although people with knowledge of the discussions say the airline is not in talks with the US group.

Instead, he stressed Europe needs to fundamentally change the way it evaluates airline mergers.

“They need to understand that we need scale,” he said. “In Europe, if we want to compete, if we want to have a scale to compete in the world, I think, we need more consolidation.”

The company walked away from its bid to buy the 80 per cent of Spanish airline Air Europa it does not already own in 2024 after the European Commission flagged competition concerns about the deal.

“We couldn’t do it because of the remedies that the European Commission asked for, and then we abandoned the operation,” Gallego said. “That doesn’t mean that we don’t think that it’s good for the customers” and to grow the power of Madrid as a hub airport. It still holds a financial stake in the airline.

He said regulators must look at transfer traffic at airports and the competition between hub airports, rather than simply point-to-point air traffic that accounts for only a third of the movements from large hubs.

“We did the analysis and we were going to have more origins and destinations” with Air Europa, he said. Although the Spanish carrier was “a good operation”, “we can continue without Air Europa”, he added.

IAG was formed in 2011 by the merger of British Airways and Iberia with a stated aim of being a consolidator of European carriers. It also owns Aer Lingus and Vueling.

Earlier this year IAG walked away from the chance to buy a stake in Portugal’s TAP airline, after the government failed to offer assurances it could eventually take control of the business.

Smaller airlines across Europe “need to belong to one bigger group” to survive, he said.

But Gallego ruled out any transformative deals outside of the region — such as a potential tie-up with American Airlines, which works closely with BA on the north Atlantic route, but is lagging behind rivals Delta Air Lines and United Airlines.

“With the current joint venture, we have all the advantages that we can have and we have the antitrust immunity and we can work together, so I don’t see why we need a model with more integration,” Gallego said.

American was “growing now, they are investing in the product, and I think they’re going to recover from this situation . . . we are not considering other scenarios”.

FT Lex : BMW sounds the alarm as China squeezes Europe’s carmakers

BMW sounds the alarm as China squeezes Europe’s carmakers
Chinese manufacturers have grown their market share in Europe while gaining share at home

There are profit warnings, and then there are existential howls. BMW added on Tuesday to the woeful din emanating from the European car industry, lopping about 60 per cent off the forecast operating profit for its car business for this year, mainly as a result of its struggles in China.

Europe’s automakers have progressively been squeezed out of the Chinese market: cheaper, domestically produced electric vehicles have been gaining share at the expense of the premium traditional cars in which companies like BMW, Mercedes-Benz, Volkswagen and Stellantis specialise.

As a result, sales have been crushed. Porsche’s revenue from China, for instance, fell by roughly two-thirds between 2022 and 2025, according to S&P Capital IQ. And the Chinese profit pool — which in peak years accounted for about half of the operating profit at BMW and Mercedes-Benz, according to Citigroup analysts — has shrunk to a puddle, or dried up completely. VW’s operating profit from its Chinese joint ventures almost halved last year, to €958mn.


Worse, the Chinese market is itself now shrinking, as the economy splutters and subsidies are phased out. With electric vehicles continuing to gain share, that further squeezes European carmakers. It also leaves their Chinese rivals with lots of spare capacity to export their cheap EVs abroad.

That’s where things go from extremely uncomfortable to actually threatening for the likes of Stellantis, Renault, VW and BMW. Chinese manufacturers have grown their market share in Europe from virtually nothing in 2021 to just shy of 10 per cent, reckon Jefferies’ analysts. European carmakers’ sales may have revived a bit this year, thanks to a slew of new, lower-priced models. But the region is far from a growth market, and cannot accommodate aggressive new entrants without shrinking locals’ sales.

That’s really bad news for an industry that only makes use of about 70 per cent of its production capacity, by S&P Global’s reckoning, meaning it already bears outsize costs compared with its sales. European carmakers are meanwhile putting additional money into their plants to produce electric vehicles: making a decent return on all this new capital is going to get progressively harder, and every bump in the road — from US tariffs to disruption in the Middle East — will result in a nasty jolt.

Unsurprisingly, the European Union is considering protecting its domestic industry with “Made in Europe” rules for public procurement and access to subsidies. That, at least, would safeguard European parts suppliers and jobs. Sniffing the wind too, European carmakers have tentatively started to co-operate with their Chinese rivals: witness Stellantis’ discussions with Dongfeng over use of its spare capacity in France. It is still an uphill road if ever there was one.

>>> US After Hours Summary: SWBI +16.8% sharply higher on earnings; RUM +6.3% af

After Hours Summary: SWBI +16.8% sharply higher on earnings; RUM +6.3% after closing Northern Data acquisition; STLD -3% lower on guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SWBI +16.8%,

Companies trading higher in after hours in reaction to news: RUM +6.3% (closes Northern Data acquisition; also introduces new business unit), SPRO +5.7% (FDA approves Utezbi), VRRM +1.9% (organizational changes; appoints new Chief Customer Officer), INOD +1.9% (appoints new CFO; reaffirms FY26 guidance), AXTI +1.7% (unit enters long-term supply agreement with Casela), SPCX +1.1% (elects Roelof Botha as independent Common Stock Director), CLX +1.1% (names new COO and simplifies operating structure), CORT +0.9% (resubmits NDA for Relacorilant as a treatment for patients with Cushing's syndrome), HAWK +0.8% (Cluster 14 satellites have reached full operational capacity), VG +0.7% (new LNG purchase agreements), AAPL +0.4% (Tim Cook says Apple will raise prices due to memory chip crunch, according to WSJ), STN +0.2% (CEO to retire; names next CEO)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: STLD -3% (guidance)

Companies trading lower in after hours in reaction to news: LEGN -8% (ADS offering), NYXH -5.6% (receives $15 mln in proceeds from the European Investment Bank), MX -4.4% (enters at the market sales agreement; may offer up to $50 mln of common stock), SHMD -2.8% (stock offering by selling shareholders), ALKS -0.9% (results from Vibrance-2 Phase 2 Study of Alixorexton in adults with narcolepsy Type 2), GD -0.2% (awarded $116.6 mln modification to previously awarded Navy contract), GSK -0.1% (FDA approves Utezbi), DE -0.1% (files mixed securities shelf offering)

WWD : Hermès Arrives on London’s New Bond Street With a Blaze of Color, and a Tr

Hermès Arrives on London’s New Bond Street With a Blaze of Color, and a Tribute to British Culture
The French luxury brand has opened its long-awaited flagship on New Bond Street, and it's filled with nods to British heritage, tradition and craft.

LONDON — It’s a moment London has been waiting for since 2009 and now it has finally arrived in a blaze of color, and with a celebration of British tradition, art and craft.

On Friday, Hermès will open its London flagship at 166 New Bond Street, former home of British jeweler Asprey, 17 years after buying the property and following a six-year refurbishment overseen by artistic director Pierre-Alexis Dumas and his team.

It is the sixth Hermès flagship worldwide, and the opening is a defiant act of optimism in a city plagued by financial challenges that include sky-high taxes on businesses, the repeal of duty-free shopping for foreign tourists and the flight of the rich following the election of a Labour government two years ago.

The store, which comprises six interconnected buildings, is brimming with British history.

The Hermès team dug deep into the 19th century in particular, drawing colors, textures and interiors inspiration from places including Sir John Soane’s museum, former home of the Neoclassical architect and obsessive collector, and from the space itself, which spans nearly 22,000 square feet and has 55 color-coded, art-filled rooms.

“We wanted to understand this place, to build around it and to revive what might have been forgotten,” said Dumas in an interview ahead of the opening. “In one of the corridors, you’ll see mosaic floors. While we were renovating the space, we discovered mosaics from the early 19th century. Instead of hiding them, we found someone who was able to do a full restoration.”

Restoring ‘the Spirit’
He said the six-year renovation restored “the spirit of the space. This is central London. It is full of history, and generations of people who lived and worked here. We must not forget that.”

He described the flagship, now one of the largest Hermès stores in the world, as an “homage to British culture. The reference for elegance, for craftsmanship in the equestrian tradition has always been British know-how and culture. We had British saddlers working in our workshops a century ago, and my grandfather always used to say Hermès was the most ‘British’ of the French brands.”

Dumas added that it was humbling for Hermès “to pay homage to a country and a city we admire so much,” and described the interiors as looking like “a French company trying to express what they love about British interior architecture and culture.”
The new store is expressing its love for London in other ways, too, with a limited-edition shopping bag that has a tweaked logo nodding to the brand’s new New Bond Street home; a silk scarf with a cartoonish drawing of the store’s facade and two punk rockers standing out front, and a chubby man-shaped fragrance bottle with black bowler hat that Hermès discovered in its archive.

Dumas said he wants visitors “to feel the space is alive, like when you walk into a garden and you feel the place has a spirit, and has been thought through. We wanted a space that was inhabited, active, one that creates a sense of warmth, and maybe makes you smile.”

The space has been completely transformed from the purple-and-white Asprey days, with Dumas and his team not only conjuring British style but also responding to the movement of the sun through the building, which has a large atrium and vast spiral staircase at the center.

That staircase was designed by Foster and Partners when the building was refurbished under Lawrence Stroll and Silas Chou’s ill-fated ownership of Asprey in the early 2000s.

Take Me Higher
As part of the latest refurbishment, which was subject to numerous restrictions due to the buildings’ historical importance, the brand called back Foster’s team to raise the curling limestone and glass staircase by two floors, and connect it to both sides of the building. Foster’s team also added a new steel and glass roof.


The Norman Foster staircase at the new flagship.
Jamie Stoker/WWD
Hermès has also given that central atrium space a more village-y vibe, hanging antique metal signs on the original brick walls facing the atrium, and arranging some of the rooms on the ground floor as if they were small shops.

Asprey when it was on the site was always a higgledy-piggledy warren of rooms and floors, since the building was actually a combination of several different ones. The new Hermès maintains that charm — on the upper floors, the rooms come in all different sizes — but has simplified the layout to eliminate dead ends, and allow visitors to circulate more easily.

Color Guide
Color plays a big role, drawing people through the store, and signposting Hermès’ 16 different product categories, or métiers, which range from sports and saddlery to womenswear, menswear, fragrance and home interiors.

Each métier has its own color scheme inspired by British history, architecture and interior design, including peach and salmon pink for the womenswear rooms, marine blue for menswear, sunflower yellow for watches and jewelry, and shades of rich red for the leather accessories collections.

The fragrance, beauty and fashion jewelry room, which faces Albemarle Street at the back, has Alice in Wonderland flair, with hand-painted floral wallpaper by the London-based illustrator Katie Scott. Colorful flowers tower over guests, butterflies are as big as birds and snails and bumblebees crawl and buzz along the walls.


The space is bright, and should lift spirits, especially in the dark days of the London winter. There are more flowers and plants — real ones, in pots — on the roof terrace, which overlooks New Bond Street.
The inside courtyard with antique signage on the walls.
Jamie Stoker/WWD
Dumas said that when the French think about British homes, “we think of colors. Maybe [rich color] is also an Anglo-Saxon, Northern European [tradition] where winters are gray and cold. This is our British home in the U.K., so we wanted to play with color.”

The rainbow of saturated colors serves another purpose. “It structured and organized the space. We wanted each métier to have its own colorway. Color is life, color is the invisible force that creates emotion,” said Dumas.

The art on the walls, and the shop floor, adds another colorful dimension to the space. It’s a mix of oil paintings, technical sketches, silk scarves framed or hung like tapestries, and works from the Hermès private collection.

Dumas also commissioned a young British artist, Jessica Wetherly, to create a work for the store. Dumas said Wetherly was inspired by a visit to his great-grandfather’s collection where she spotted a small glass toy horse.

She ended up making an oversized toy horse on wheels, which sits near the center of the ground floor atrium.

‘Have a Good Time’
“It gives you a sense of scale in this big space, and — also — you don’t expect to see something like that when you walk into a store,” said Dumas, who’s hoping that the horse will put a smile on people’s faces, and allow them “to put their worries to the side, just for a while. I don’t expect people to come here to buy, I expect people to come here, walk through the store and have a good time,” he said.


The toy horse sculpture by Jessica Wetherly.
Jamie Stoker/WWD
The flagship’s opening is a long-awaited moment for Hermès, which has a number of stores in London, the largest of which was nearby, at 155 New Bond Street in the former Time & Life building famous for its Henry Moore sculptures and friezes done in Portland stone.
In an interview, Florian Craen, executive vice president of sales and distribution at Hermès, said it was tough to say goodbye to those sculptures, and to the building that had been home to Hermès for 50 years. But it had to happen.
“Here, we’re able to offer an experience that we couldn’t before at our former New Bond Street address. There are private spaces, there’s more room for all of the product categories, and the men’s section is completely different from what it was before, as is the space for shoes,” he said.
Watches and jewelry, Craen added, have an entire floor compared with a tiny corner in the old store. “It’s about giving more space to our product categories, but also offering a much more comfortable space and more room for customers,” he said.
Asked about Hermès’ choice to open at such a challenging moment for London, and the U.K., Craen said the brand is taking the long view. London, he said, remains a significant market, and a major contributor to the brand’s overall European sales.
The accessories rooms are painted in a rainbow of rich reds.
Jamie Stoker/WWD
“For the past 20 years, at least, London been one of our biggest European markets. And London is not only about Londoners — the world shops in London, and the role of all of our stores is to cater to and look after residents, visitors and expats,” he said.


He added that Hermès also keeps world events in perspective as it pursues its long-term plans.
“Every day you have news that tends to shift people’s expectations and behavior. People exit the U.K. for tax reasons” and then they may come back a few years later, he said.
Always ‘London’
“This is the story of our world today. Ever since we stepped into London, and into this project in particular, we took the long view that London will remain ‘London.’ It will remain one of the top cities in the world, certainly in terms of retail, but also in terms of cultural influence, shopping experience, political influence, and artistic life. Very few cities can offer what you can get in London, whether you are here for two days, two weeks, or two months,” he added.
There is clearly no shaking Hermès’ retail vision.
The brand currently has 293 stores worldwide, including six flagships on major city streets such as New Bond. According to Craen, it has around 20 retail projects on the go every year. Earlier this year it opened a unit in Beijing, and plans to cut the ribbon on a new store in Geneva in November.
The womenswear rooms are done in a muted palette of salmon and peach.
Jamie Stoker/WWD
In the U.S. it has plans to open a second unit in Chicago, and also has Brooklyn, Manhasset, N.Y., and San Diego on the retail docket.
It is canny with its investments. In 2009, after having scoured the neighborhood for years, Hermès paid 73 million pounds, or $117 million, for the New Bond Street space, according to real estate sources. The brand never confirmed the figure.


Asprey had been doing business on New Bond Street since 1847, and had owned the building until 2005, when the brand fell on hard times. Asprey’s then-owner, A&G group, sold the store to the Irish property group Quinlan Private for an estimated 55 million pounds, or $105 million at the time. Quinlan later flipped it to Hermès when it ran into financial difficulty following the drastic dip in commercial property prices since 2007.
Asprey, which is owned by John Rigas’ Sciens Capital Management, has since moved to a new, and much smaller, site nearby at 36 Bruton Street, and continues to sell fine jewelry.

9to5 : Seeing Siri AI in action has me excited for the future

Seeing Siri AI in action has me excited for the future

Seeing Siri AI in action has me excited for the future | A screenshot showing the new Siri AI animation and iPhone app
Like a great many people, I’ve been impatiently waiting to leave the Siri AI waitlist, and that finally happened last night.

It’s early, but what I’ve seen so far has me very excited for the future …

I recently confessed to being so impatient to try it that I did something nobody should ever do – installed a first developer beta on my daily driver iPhone. So far, this rash decision hasn’t come back to bite me.

I then got to watch my iPhone begin and finally complete the indexing process. This is where Apple Intelligence reviews the data on our devices and constructs the index it will subsequently use for Siri AI requests. That completed a couple of days ago, but didn’t immediately release me from the Siri AI waitlist. As soon as that happened, I dived right in.

Of course, you’d expect a first developer beta to have plenty of bugs and teething issues, and that’s obviously the case with this one. But my overwhelming first impressions have been how well Siri AI lives up to the promises Apple made for it.

Here’s a quick look at some of the real-world tasks I’ve been able to see working so far …

The first task I gave it was something I quite often need to do, and where the search feature in the Photos app has often disappointed: I asked it to find all photos and videos taken at a particular recurring event. (Yes, it was tango related; why do you ask?) It didn’t manage to identify matches by the name of the event, but as soon as I specified the location, it very quickly found all of the matching results – something the Photos app hasn’t managed in the past.

I asked it when a particular friend had visited me, and it identified the occasion based on both my calendar entry and a message he sent telling me he’d arrived.

I opened a webpage for a public event and asked Siri how I would get there. It correctly identified the venue, then opened Apple Maps and immediately started directions.

In the three weeks I’ve been in my new home, I’ve completed almost all of my planned home improvements with the generous help of a number of friends. I asked Siri what remained to be done, and it was able to immediately pull up the checklist of remaining items from my Notes app.

I recently attended a tango festival and asked Siri to tell me the code to unlock the entry gate. It found not only my note of this code, but also pulled some additional useful details from the email sent by the organizers.

I opened a WhatsApp chat with a friend and asked Siri to summarize our recent conversations. It did an excellent job at this, with both a text summary and bullet points of what it described as key moments.

I recently had a friend ask me where I stayed when I visited Toronto last year. I had to do searches in both my calendar and mail app to get all of the information needed. When I asked Siri to do this, it accessed both sources to provide all of the details.

Like Photos Search, I haven’t found Apple Mail searches to be particularly good in the past. I tried asking Siri for a number of representative things that I would need to find, and it successfully found almost all of them. The one consistent limitation I’ve found so far is that it does look for exact keyword matches rather than considering alternative phrasings as a human would.

Finally, I visited an Apple support page and asked Siri to give me the briefest possible summary in bullet point form, and it did this extremely well.

None of these tasks are going to change the world, but they are real-life examples of how Siri AI will make my life easier and save me time on the types of tasks I carry out multiple times a day. I do think this is going to completely transform the way we use our devices, and fully expect my starting point for most tasks to be to ask Siri to do it for me – with manually opening apps my fallback.