>>> Weekend Papers Summary

FINANCIAL TIMES
-US stocks' record highs are obscuring the risks Donald Trump poses to the world's largest economy, according to big investors and senior bankers who have warned over growing "complacency" in the markets. Senior executives from Amundi and JPMorgan Chase have said buoyant markets are pricing in too much confidence that the US president will back down from policies most likely to threaten the country's financial stability. Vincent Mortier, chief investment officer of Amundi, referred to a narrative espoused on Wall Street that 'Trump always chickens out'. JPMorgan chief executive Jamie Dimon echoed this sentiment, noting that "unfortunately, I think there is complacency in the market." The S&P 500 share index has surged about 30% from an April low, rebounding since Trump paused the sweeping tariffs he announced during his "liberation day" event. Equities have generally shrugged off Trump's latest batch of tariff threats against large global economies.
-Trump has relaunched his trade war by imposing a 50% tariff on copper imports and considering a 200% levy on pharmaceutical goods. He also threatened Canada with 35% tariffs and put EU nations on notice to expect similar announcements. Trump's letters have set new levies between 25 and 40% for countries like Japan and South Korea, while granting the world another three-week extension to strike deals. These letters were sent to just over 20 countries, including South Africa, Thailand, Tunisia, and Bangladesh. Countries that do not receive letters will have to pay a higher blanket rate of 15-20%, up from 10%. However, the brinkmanship of Trump's threats has been undermined by the difficulty of reaching limited trade deals.
-A preliminary report into Air India flight 171's fatal crash last month has revealed that the engines briefly cut off seconds after take-off. The Air Accident Investigation Bureau reported that the aircraft reached the necessary speed to lift off, but fuel flow switches to the two engines transitioned from "run" to "cut-off" position. The pilots were asked why they cut off, and the engines lost thrust, leading one pilot to declare "mayday, mayday, mayday." Aviation experts have said it is difficult for pilots to inadvertently move fuel switches. The crash occurred on June 12, following the take-off of a Boeing Dreamliner 787-8 from Ahmedabad to London Gatwick airport. The crash killed 241 people on board and 29 on the ground.
-Elon Musk's xAI is set to raise $200B in a deal, a 10 times increase from its early last year value. The fundraising, which could begin next month, would be its third large share sale in less than two months. The deal would also increase xAI's valuation from $18B in its "series B" fundraising in May 2024. The company recently released the fourth model of its Grok chatbot, which posts on Musk's social media platform X, following its controversial post on X. The new fundraising is expected to target a valuation between $170-200B, with Saudi Arabia's sovereign wealth fund, PIF, expected to play a significant role. PIF holds an indirect interest in xAI through its stake in Kingdom Holdings Company, which has invested $800M in the company.
-The Pentagon is urging Japan and Australia to clarify their roles in the event of a war between the US and China over Taiwan. Elbridge Colby, under-secretary of defense for policy, has been pushing the issue in meetings with Japanese and Australian defense officials. The push is his latest attempt to convince US allies in the Indo-Pacific to enhance deterrence and prepare for a potential war over Taiwan. Colby's discussions with allies include efforts to persuade allies to raise defense spending amid rising concern about China's threat to Taiwan. The request for commitments related to a war over the island is a new demand from the US. However, the US does not provide a blank cheque guarantee to Taiwan.
-The US state department has announced plans to fire over 240 foreign service employees, including senior officials, following a Supreme Court decision allowing the Trump administration to proceed with job cuts across federal agencies. The move will affect 246 foreign service employees and 1,107 civil service employees with assignments in the US, according to the American Foreign Service Association (AFSA). Notifications are already being sent to affected employees, and they will be placed on administrative leave for a 120-day period before formally losing their jobs. The lay-offs are part of a broader reorganization of the state department, aiming to eliminate about 15% of its workforce.
-President Donald Trump has expressed frustration with Russian President Vladimir Putin for failing to negotiate an end to the three-year war he launched with Ukraine. Trump has pledged to provide additional weapons, including Patriot air defense systems, to Ukraine, and has expressed willingness to impose tougher sanctions against Moscow. He has also promised to issue a "major statement" on the war in Ukraine on Monday. Trump's ire represents a significant shift in tone from the White House, which previously blamed Ukrainian President Volodymyr Zelenskyy for the conflict. Trump's comments on the Russian drone attack in Ukraine highlight his frustration with Putin's inaction in talks to end the war.
-Brussels is proposing a levy on large European companies to generate new funding streams for the EU's €1T-plus common budget. The corporate resource for Europe, outlined in a draft European Commission proposal, will be unveiled next week but requires unanimous support from member states. The annual tax would apply to companies with turnover exceeding €50mn, regardless of their headquarters. A bracket system would require higher contributions from groups with the highest net revenues. Other revenue-raising measures include the EU taking a share of higher tobacco excise duties, charging for non-recycled electronic waste, and a handling fee for long-distance ecommerce packages, primarily targeting imports from China.
-Kraft Heinz, a packaged foods company, is considering a break-up a decade after Warren Buffett and 3G Capital merged the two brands. The decision comes after the company, known for Heinz Ketchup and Kraft Macaroni & Cheese, said it was considering several options to reverse its persistent underperformance. One plan being considered is spinning off much of its traditional grocery portfolio into a standalone company, while the remaining part, including Heinz condiments, Grey Poupon mustard, and a broader range of sauces, could be set for faster growth due to changing consumer tastes. Executives believe that two separate companies could ultimately be worth more than Kraft Heinz's $31B market value. No final decision has been made, and it is still possible the company would sell some assets and remain as a single entity.
-Police have raided the party's headquarters and office in an investigation into allegations it illegally financed recent campaigns by borrowing from supporters to evade legal caps on donations. This comes amid the controversy surrounding France's three-time presidential candidate, Emmanuel Macron, who was convicted of embezzling EU funds in March and sentenced to a five-year election ban. Le Pen maintains her innocence and is appealing the verdict, but it has weakened her leadership of the far-right party, as her right-hand man, party chief Jordan Bardella, will run in her place if she cannot. Le Pen's state of mind was revealed in an interview with conservative magazine Valeurs actuelles magazine.

NEW YORK TIMES
-Trump's supporters claim he is a top dealmaker, but for now, more trading partners have received stiff tariffs than trade deals. Even when Trump strikes trade deals, double-digit tariffs are often left in place, with more levies on foreign products on the way. The belief, promoted by Trump himself, was that he was using his tariffs as a lever to crack open foreign markets and deliver dozens of deals that would increase U.S. exports and help American businesses flourish abroad. However, three months later, that optimism is being replaced by doubts that Trump's goal is ever to strike the kind of trade deals that would open up markets.
-Kerrville, a city of 25,000, has become a hub for search and recovery efforts along the Guadalupe River. While some parts of the city have largely escaped the worst of the flood's damage, the city water plant has sustained significant damage, causing residents to rely on well water for the next few weeks. Dozens of houses were destroyed in the streets nearest to the river. Police officers evacuated 200 people from homes and vehicles. Many people remain missing from at least one campground at the city's edge. In one harrowing rescue, a police officer wrapped a garden hose around his waist to serve as an anchor, while two other officers waded into the surging water to rescue two trapped people.
-The FBI is using polygraphs to test officials' loyalty, with some senior officials being asked if they said anything negative about the director, Kash Patel. This is part of the FBI's broader crackdown on news leaks, reflecting the director's awareness of how he is publicly portrayed. Since taking office, the bureau has significantly increased the use of the lie-detector test, subjecting personnel to questions as specific as whether they have cast aspersions on Patel himself. The number of officials asked to take a polygraph is in the dozens, though it is unclear how many have specifically been asked about Patel. Former bureau officials say the moves are politically charged and highly inappropriate, underscoring an alarming quest for fealty at the FBI, where there is little tolerance for dissent. Disparaging Patel or his deputy, Dan Bongino, could cost people their jobs.
--President Trump and his aides have shifted their focus from recommending the elimination of the Federal Emergency Management Agency (FEMA) to overhauling it, despite previous statements that the agency was bloated and ineffective. As the administration grapples with the deadly flooding in Texas, they are now focusing on the need for the federal government to effectively respond to disasters. The director of the Office of Management and Budget, Russell T. Vought, stated that the president will continue to ask tough questions from all of his agencies. This has added confusion about the future of FEMA, which is struggling with the loss of top officials, including Cameron Hamilton, who criticized the agency's importance in communities during times of need.
-Texas officials are facing scrutiny for refusing to fund early warning systems for flash floods, a common issue in areas with frequent, intense rainfall. The floods that killed at least 121 people, including 36 children, were a result of inadequate forecasting and communication. Experts argue that accurate forecasting alone is not enough to prevent calamity, and both rich and poor countries have struggled with funding for systems that either fail or create false alarms, eroding public confidence.
-A federal judge in California has halted the Trump administration from making indiscriminate immigration arrests in the Los Angeles area and from denying detainees the right to legal counsel. The temporary restraining orders, issued by Judge Maame E. Frimpong, rebuke tactics used by federal agents during immigration raids. The orders directed agents to stop racial profiling and mandated the federal government to ensure detainees have access to legal counsel. The judge argued that the federal government would have the court believe none of these tactics are happening.
-Measles cases in the US reached a record high, prompting Democrat Senator Chuck Schumer to call on health secretary Robert F. Kennedy Jr. to declare the virus a public health emergency. The minority leader argued this was necessary to control the rapid resurgence of the highly contagious virus. With 1,288 cases in 2025, the majority of cases have been linked to the Southwest outbreak, which began in a Mennonite community in West Texas and spread to Oklahoma and New Mexico. There are no immediate plans to declare a public health emergency.
-Google has acquired the leaders of Windsurf, a start-up that developed an AI-powered computer programming tool, in a $2.4B deal. The move is part of tech companies' battle to acquire AI talent, deepening Google's AI engineering bench and securing a point against OpenAI, one of its biggest challengers. OpenAI was in talks to acquire Windsurf in a $3 billion deal, but talks broke down due to concerns about information sharing with Microsoft. Under Google's agreement, Windsurf's CEO, Varun Mohan, and co-founder Douglas Chen will join Google DeepMind, along with several research and development employees.

NEW YORK POST
-President Trump has granted Immigration and Customs Enforcement (ICE) agents "Total Authorization" to arrest violent protesters following a California cannabis farm raid that resulted in rocks being thrown at federal law enforcement vehicles. Trump praised the officers for their bravery and ordered Secretary of Homeland Security and Border Czar to instruct all ICE, Homeland Security, or other law enforcement officers to stop their cars and arrest the protesters using whatever means is necessary. The incident shows disrespect for law and order.
-FBI Deputy Director Dan Bongino has reportedly resigned after a heated exchange with Attorney General Pam Bondi over the Trump administration's handling of the Jeffrey Epstein investigation. The heated exchange led to Bongino taking a personal day and considering resigning after fewer than four months in his job. Both parties have publicly stated that an internal review of the Epstein file yielded no smoking-gun information about his death, high-powered associates, or sickening crimes. A Justice Department official said that FBI Director Kash Patel might follow Bongino out the door, as both have fought for transparency.

SCMP : China has 60 drugs under trial to rival Ozempic in US$150 billion weight-

China has 60 drugs under trial to rival Ozempic in US$150 billion weight-loss market
Over 60 novel drug candidates are in late-stage clinical trials in China, and these will potentially compete directly with US drugmakers

When Hong Kong office worker W.K. Chang began putting on weight as a teenager, her doctor said it was due to hormonal imbalances that slowed her metabolism. She reached a peak weight of 100kg about a year ago, but has since lost 25kg.

The secret to losing a quarter of her weight? Chang, who asked not to be identified by her full name, was one of the city’s first 200 chronic obesity patients to receive access to a new weight-loss drug, originally developed for diabetes. At a cost of HK$2,700 (US$344) each month, it was not cheap.

“I’m lucky since my family pays for my drug bills, but my friends who want it can’t afford it,” she said. “My doctor said I can reduce the dosage and the costs provided I keep up with my low-sugar diet and do cardiovascular exercises to maintain my weight.”


Chang’s friends and others with similar health problems may soon have better and more affordable access to the drugs that treat both diabetes and obesity, analysts said.

That is because the patent on semaglutide – the drug that mimics the naturally-produced hormone glucagon-like peptide-1 (GLP-1) that regulates blood sugar, appetite and digestion – expires in China next year. In other markets, the patent will expire in 2031 or 2032. Semaglutide is sold by Novo Nordisk as Ozempic.

Analysts said cheaper generic versions of the drug could then be launched by rivals, bringing down prices. Up to 20 generic drug players in China will vie for market share and exert downward pressure on prices, according to a report published in May by Boston-based L.E.K. Consulting.

In addition, over 60 novel GLP-1 drug candidates were undergoing late-stage clinical trials in China, and these would potentially compete directly with semaglutide and rival product tirzepatide developed by US-based Eli Lilly, the report added. The two products dominate the global weight-loss drug market.
In April, Beijing launched a nationwide weight-management campaign to address what it said was “a major public health threat”.

According to a study commissioned by the National Health Commission, some 34.3 per cent of adults were overweight, while another 16.4 per cent were obese in 2018 – up from 22.8 per cent and 7.1 per cent in 2002, respectively.

Just over 70 per cent of the population would be overweight or obese by 2030, and if the problem was not addressed effectively, it would consume 22 per cent of the nation’s total healthcare budget, according to the commission.

The US Food and Drug Administration approved semaglutide for type 2 diabetes in 2017 and extended approval for obesity and related diseases in 2021.

Pharmaceutical firms jumped in, encouraged by an untapped market unhindered by high prices, and the proven efficacy of GLP-1 drugs that could reduce a patient’s weight by 12 to 20 per cent within 50 weeks, while claiming a relatively safe profile with the most common side effects limited to gastrointestinal discomfort, said Chen Ziyi, head of Asia healthcare research at Goldman Sachs.

Semaglutide was the world’s second bestselling drug last year, generating US$20.8 billion in sales from two formulations for diabetes and US$8.4 billion from a formulation for chronic weight management, after Merck’s cancer drug Keytruda that raked in US$29.5 billion, according to the pharmaceutical publication Drug Discovery & Development.

Eli Lilly’s tirzepatide recorded sales of US$11.5 billion from diabetes prescriptions and US$4.9 billion from weight loss use.

“GLP-1 obesity drugs will help drive record overall prescription drug sales growth and catapult Novo Nordisk and Eli Lilly to the top of the company rankings by the end of the decade,” London-based consultancy Evaluate wrote in a report a year ago.

Eli Lilly and Novo Nordisk were No 9 and No 11, respectively, in terms of global pharmaceutical revenues last year, according to Drug Discovery & Development.

Industry estimates for the global anti-obesity drugs market range from US$100 billion to US$150 billion by 2035. Sales last year were around US$30 billion, according to US healthcare data provider IQVIA.

In comparison, the global PD-1/PD-L1 immunotherapies market – the biggest oncology drugs category by sales – is projected to grow 11.9 per cent annually to reach US$110 billion by 2031, up from US$50 billion last year, according to research firm iHealthcareAnalyst.

“Even the largest category of oncology drugs may be smaller than anti-obesity medications in terms of sales potential, mainly because the prevalence of obesity is much higher than that of other chronic diseases,” Goldman Sachs’ Chen said.
In mainland China, semaglutide was approved for diabetes in 2021 and as an anti-obesity medication last year, while tirzepatide was given the marketing greenlight for both uses last year.

China’s weight loss drugs market could grow to 40 billion yuan (US$5.6 billion) in 2035 from a low base, according to Chen. Sales are primarily driven by Novo Nordisk, which reported US$285 million in GLP-1 drug sales for diabetes in China in the first quarter, and US$11 million in sales for weight loss applications.

Chen said his projection accounted for “hard core” medical demand from obese patients who tend to have other health issues like cardiovascular and kidney diseases, and need longer-term usage of the drugs, as well as demand from overweight users who may need it for only three to four months.

“Weight loss drug demand will depend on the duration of usage, their pricing and companies’ marketing strategies,” Chen said. “Even at 40 billion yuan, the market is big enough to attract many domestic and international firms to invest in its research and development.”

New entrants with novel products would compete with the incumbents on the depth, speed and permanence of weight loss achievable, as well as price and usage convenience, he noted. The ability to claim less severe side effects, such as nausea and muscle loss, would also give newcomers an advantage.
Five Chinese firms have applied for marketing approval for generic versions of semaglutide, according to Goldman Sachs.

On June 27, eastern Jiangsu province-based Innovent Biologics said it received Chinese regulatory approval for mazdutide, which it claimed was the world’s first to mimic the natural hormones of GLP-1 and glucagon, the latter of which plays a crucial role in regulating blood glucose levels.

Listed in Hong Kong, Innovent licensed the China development and marketing rights for mazdutide from Eli Lilly in 2019. It has also applied for approval to use the drug for treating diabetes in China.

Using the once-weekly injected drug, some 610 overweight or obese participants in its clinical trial achieved an average weight loss of 14.8 per cent by week 48, and an 80 per cent reduction in liver fat content, Innovent said.

In January, industry media Fierce Pharma ranked mazdutide No 7 out of the top 10 most anticipated drugs to be launched this year, with projected sales of US$1.3 billion in 2030.

Innovent – which did not respond to queries about its market launch date, sales channels and pricing – could generate over 600 million yuan of revenue from mazdutide this year and reach peak sales of 3.5 billion yuan in 2029, according to a July 1 report by Zheng Yurou, an equity analyst at investment research firm Morningstar.

However, the future remains uncertain, according to Chen of Goldman Sachs. “No one has a crystal ball to see what the landscape will be like in 2027,” he said. “It is too complicated, given this will also be the first time a major blockbuster not covered by the Chinese government’s national health insurance drug reimbursement scheme faces the onslaught of generics.”

Sales channels and pricing tactics would determine the growth of various market segments, which would include demand from moderately overweight people who might use the drugs on an “off-label” basis, Chen noted. This refers to usage and prescriptions for conditions and in dosages not yet approved by drug regulators.

“It is going to be a hybrid market with decent percentages of sales from each of the accessible channels – hospitals, retail outlets, online channels,” Chen said. “Besides medical demand, you also have people who will use it for two months to fit into a tight dress for a wedding.”

The current retail prices of GLP-1 drugs in China range from 2,700 yuan to 4,800 yuan per month, but could be lower for off-label use, much lower than in the US, he noted.

Many users were likely to pivot to cheaper options if the efficacy profiles were similar or slightly less superior, as long as they were within a few percentage points, said Morningstar’s Zheng, adding that the longer-term race lies in next-generation products, especially orally administered ones.

Nomura’s head of China healthcare research, Zhang Jialin, expected price competition to intensify from 2027, adding that Innovent would likely invest in the development of non-traditional sales channels of retail and online pharmacies where the incumbents had yet to establish a strong presence.

While GLP-1 drugs could effectively signal to the brain to eat less and slow down the pace at which food was digested, they needed to be taken as an adjunct to a healthy diet and exercise, said Francis Chow Chun-chung, founding president of the Hong Kong Association for the Study of Obesity.


Chang, the Hong Kong office worker, took that advice. “My weight loss was more pronounced than many others on the drug since I heeded my doctor’s advice to supplement the weekly injection with moderate exercise,” she said.

“I had a bit of a rebirth moment after the treatment. I gained confidence in myself and now have more choices when shopping for clothes,” she added.

WWD : At Wimbledon, Fashion Matters Just Much as Tennis

At Wimbledon, Fashion Matters Just Much as Tennis
The grounds at Wimbledon have become a fashion festival with players spotted wearing Gucci, Bottega Veneta and Audemars Piguet, and brands using the event as a promotional platform.


LONDON — Wimbledon has reached new heights this year with its young, high-profile players transforming into stars beyond the tennis court — with help from fashion and luxury brands.

Jannik Sinner, the Italian tennis player who ranks as the world number one, has been stepping onto Centre Court and Court One carrying his Gucci duffel bag, while fellow Italian player Lorenzo Musetti arrived in a white leather Bottega Veneta bomber jacket last week after being revealed as the brand’s latest ambassador.

Aryna Sabalenka, the Belarusian tennis player who ranks as the women’s world number one, may have been holding back tears during the press conference following her defeat against U.S. player Amanda Anisimova, but it was her two watches — one on each wrist — that took the spotlight.

On one wrist, she was wearing a Whoop fitness watch with a customized strap featuring a roaring tiger’s face. The other wrist was adorned with an Audemars Piguet, its dial dotted with diamonds.

Brands are looking beyond the players to transmit their messages, and bidding for luxurious suites to host lunches and activations with celebrities.

Over the last two weeks Ralph Lauren, Range Rover, Evian and American Express have been hosting the likes of Andrew Garfield and Monica Barbaro, Connor Swindells, Sabrina Elba, Daniel Ricciardo, Jason Isaacs and Richard E. Grant.

According to a report from WeArisma, an influencer analytics company, Ralph Lauren drove the highest EMV, or earned media value, with $2.6 million. The U.S. brand has been the tournament’s official outfitter since 2006, and regularly hosts celebrities in its new suite a few steps from Centre Court.

Prada ranked second on the list with an EMV of $1.6 million following Louis Partridge’s Instagram post of himself wearing a Prada suit and enjoying afternoon tea.

Louis Vuitton came in third with an EMV of $654,500, followed by Gucci with an EMV of $571,300.

Jenny Tsai, chief executive officer and founder of WeArisma, said the company is predicting “a continued rise in brand ambassadorships that blur the lines between athleticism and lifestyle. Tennis in particular is becoming the next frontier; players like Carlos Alcaraz and Jannik Sinner are fashion’s new faces. Meanwhile, brands like Ralph Lauren show how long-term investment in a sport can pay off in cultural capital, not just impressions.”

Retailers and brands are also taking inspiration from the game and riding the wave of consumers’ growing interest, and participation in, sport.

Mr Porter’s own brand Mr P recently launched a tennis capsule following the success of its Mr P golf capsule, which debuted in 2021.

“The golf capsule continues to grow each year. Over the last three months alone, customer searches for golf shoes have increased by over 400 percent,” said Liza Canneford, director of private labels and circular services at Mr Porter.

“As the fashion landscape continues to evolve alongside a growing focus on physical well-being, the connection between sport and style will only deepen,” she added.

Prior to the Wimbledon Championships, Gucci’s New Bond Street store unveiled its tennis-themed window display highlighting its collaboration with the American tennis racket brand Head.

At Selfridges, menswear brand Palmes has opened a pop-up with a collection of tennis-inspired pieces.

“We’ve leaned into the tenniscore aesthetic over the last couple of summer seasons and this year we’ve expanded it even further. Our focus brands in this space include Lululemon, Varley and On Running,” said Grace Neal, buying manager.

On the grounds of the Wimbledon Championships, the All England Lawn Tennis and Croquet Club has also been watching the sales of its apparel collection soar.

According to the club, 51,631 units of merchandise had been sold as of Friday, with 12,883 towels and 10,942 white caps with the Wimbledon logo.

The brand’s 2025 collection features preppy pleated skirts, cardigans with square breast pockets and caps with a script typeface, which have already sold out.

WWD : Levi’s Is Taming the Beast of Corporate Reinvention

Levi’s Is Taming the Beast of Corporate Reinvention
And Wall Street is warming up to CEO Michelle Gass’ efforts to transform the denim maker.

The corporate reinvention is a fickle beast.

One can be set off by a new chief executive officer, the passage of time or some retail disaster — self-made or otherwise.

But once they get going, strategic plans to refocus product offerings, refresh operations, reprioritize investments and more or less change everything can take on a life of their own.

CEOs are both driving the process and along for the ride as companies start to flex under a new, internal momentum.

Wall Street usually allows some kind of a grace period — a year or maybe two, but not three — when they’ll buy into a new corporate vision and promises for the future.

But sooner or later, they’ll want results or more proof points that they’re coming.

CEO Michelle Gass is right on that cusp between telling the world how Levi Strauss & Co. is changing — selling denim head to toe, growing in women’s and building with its own stores — and just showing the results.

Gass told WWD on Thursday that the Levi’s brand is “stronger than ever” and “resonating around the world.”

That was backed up by a 9 percent increase in second-quarter organic sales and a 39 percent rise in adjusted income, to $89 million. The outlook for the full year was also raised, even while baking in higher tariffs.

Investors traded shares of the company up 11.1 percent to $21.93 on Friday.

Jay Sole, an analyst at UBS, described the results as “one of Levi’s best quarters over the past few years.”

“We believe Levi’s ongoing transformation into a global, multichannel, lifestyle brand for both men and women from what traditionally was a North America, wholesale, men’s, denim business is happening,” Sole said. “This change should fuel strong long-term growth.”

The analyst predicted that sentiment on Wall Street would improve for Levi’s.

“Our conversations with investors suggest most want to own only the most ‘defensive’ and ‘high-quality’ softline names, such as TJX Cos. Inc.,” Sole said. “The issue is there are very few stocks of this type, and they have high price-to-earning ratios.

“As investors have looked for lower P/E alternatives, names like Ralph Lauren Corp. and Tapestry Inc. have emerged. This has boosted sentiment and driven P/E expansion for those stocks. We believe investors will decide Levi’s belongs in that group as the company continues to produce more exceptional quarters like it did in Q2.”

Likewise, Alex Straton at Morgan Stanley called it an “impressive 2Q beat” and raised his target price on the stock.

And TD Cowen’s Oliver Chen said traffic, conversion and pricing were all moving in the right direction.

“Cultural and product relevance remains apparent as Levi’s executes on: baggy dad jeans, quiet Western aesthetic, Nike collaboration, thermal regulation, and Y2K cultural relevance,” Chen said.

“The story at Levi’s is focused, direct-to-consumer growth on units — +16 stores in 2Q and plans to open +250 stores over the next five years — and DTC revenue +6 percent year over year, underpinned by product execution combined with better inventory management strategies and speed,” he said.

Levi’s has a market capitalization of $8.7 billion, putting it well ahead of other names wanting to give a new look to the market, including Macy’s Inc. (with a market cap of $3.4 billion), PVH Corp. ($3.5 billion) and VF Corp. ($4.8 billion).

Wall Street is now looking to see if Levi’s can make the jump from leading that pack to joining other companies that are bearing the fruits of steady reinvention, including Ralph Lauren ($17.4 billion) and Coach-parent Tapestry ($20.5 billion).

WWD : Louis Vuitton Notifies U.K. Customers of Data Breach

Louis Vuitton Notifies U.K. Customers of Data Breach
It's the third known cyberattack on a brand owned by LVMH Moët Hennessy Louis Vuitton.

PARIS — Louis Vuitton is the latest brand in the LVMH Moët Hennessy Louis Vuitton fold to be targeted by hackers.

The French fashion house notified customers in the U.K. that some of their personal data had been unlawfully accessed, though it said no payment information leaked.

“Louis Vuitton recently discovered an unauthorized party accessed some of the data we hold for our clients. We immediately began taking steps to investigate and contain this incident, supported by leading cybersecurity experts,” the brand said.

“While our investigation is ongoing, we can confirm that no payment information was contained in the database accessed. We are working to notify the relevant regulators and affected clients in line with applicable law,” it added.

This follows similar attempts to gain access to customer data at Dior in China and Vuitton in South Korea.

The latest data breach follows a series of cyber attacks on U.K. retailers including Marks & Spencer and Harrods. Four people have been arrested in the U.K. in relation to the April attacks, the National Crime Agency said Thursday.

In a recent interview with WWD, Franck Le Moal, group IT and technology director at LVMH, said the luxury conglomerate was battling a sharp increase in cybercrime.

“There has been an absolutely exponential growth in cyber risk in recent months,” said Le Moal. “This is a constant concern for us. Protecting our customers’ data is of utmost importance.”

Despite a global downturn in luxury spending that has hit budgets across the industry, LVMH is bolstering investment in cybersecurity in partnership with Google Cloud, he said.

“But it’s a game of cops and robbers, and it’s an ongoing battle,” he said. “Unfortunately, despite our best efforts, all you need is the occasional tiny flaw in the system to benefit this increasingly large-scale cyber crime industry. This is a challenge for all businesses, including luxury.”

Vuitton apologized to its clients, and pledged to reinforce guardrails to protect sensitive information.

“We continuously work to update our security measures to protect against the evolving threat landscape, and we have taken steps to further strengthen the protection of our systems,” it said.

Julius Cerniauskas, chief executive officer of web intelligence platform and proxy provider Oxylabs, said the spate of attacks targeting LVMH brands should serve as a red flag.

“The fact that this is the third breach to hit the wider LVMH group in recent months suggests more than just bad luck — it points to a wider vulnerability in their cyber defenses. Whether it’s Louis Vuitton in the U.K., Dior, or other parts of the group, attackers are clearly finding ways in and exploiting weaknesses,” he said.

“This wave of attacks on both luxury brands and high-street names shows just how attractive retailers are to cybercriminals. They hold vast amounts of customer data, and when defenses are weak or inconsistent, it’s only a matter of time before someone takes advantage,” Cerniauskas added.

The Information : Google to Pay $2.4 Billion for Windsurf Staff, IP After Startu

Google to Pay $2.4 Billion for Windsurf Staff, IP After Startup Ends OpenAI Talks

The Takeaway
• Google will hire Windsurf’s CEO and some of its staff
• OpenAI, Windsurf broke off talks after Windsurf’s concern over Microsoft IP arrangement
• Google will pay $2.4 billion for nonexclusive license that will pay cash to employees, compensation

OpenAI’s discussions to buy Windsurf, the maker of a popular artificial intelligence coding assistant formerly known as Codeium, have ended. Instead, Google will hire Windsurf’s CEO, Varun Mohan, and some of the startup’s staff, both Google and Windsurf said.

The monthslong talks between OpenAI to buy the startup for $3 billion ended in recent days. Among the reasons: Windsurf’s team raised concerns over how the coding assistant would fit into the OpenAI and Microsoft agreement, which requires OpenAI to share its technology with Microsoft, according to two people familiar with the company’s discussions.

Google is paying $2.4 billion for an nonexclusive licensing fee that will pay for Windsurf’s technology and multiple years of compensation for Windsurf staff coming to the company, according to a person with direct knowledge. It will not take a stake in the company, Google said.

The proceeds will likely result in a return for at least some of the startup’s investors, said one person familiar with the deal. Employees at the company will also get cash from the deal, although it is unclear how much or on what terms, according to a different person.

The deal represents a quick payout for investors in the four-year-old startup, which raised $240 million from Greenoaks Capital Partners, General Catalyst, Kleiner Perkins and others.

Kleiner Perkins, which invested about $100 million in the company after leading its Series B, is expected to receive around three times its investment, according to a person familiar with the matter.

Greenoaks has invested $65 million after leading the startup’s seed and Series A rounds and owns 20% of the company, according to a person familiar with the matter.

Meta Platforms also held talks with Windsurf about a deal or acquisition, according to a person familiar with the matter.

Other large tech companies have paid huge sums of money as part of similar transactions, in which they hire much sought-after AI talent without outright acquiring their companies. Last month, Meta invested $14.3 billion in Scale AI while also hiring the startup’s CEO Alexandr Wang and several of its top employees.

Last year, Google hired Character AI co-founders Noam Shazeer and Daniel De Freitas while paying the startup a $2.7 billion licensing fee, which was used to pay out shareholders. And also last year, Microsoft paid a roughly $650 million licensing fee to Inflection to hire most of its staff, including its co-founders. The unconventional agreements have allowed the big tech companies to quickly hire top AI researchers without going through the lengthy review process of a formal merger.

The Windsurf deal will strengthen Google in one of the most important and competitive areas in AI: automated coding tools that make it faster for engineers to write and edit software.

One of the hottest startups in the category, Cursor, recently crossed $500 million in annual recurring revenue and has turned down interest from acquirers in the past, including OpenAI, according to a person with knowledge of the deal discussions. Anysphere, the maker of Cursor, last month raised money from Accel and other investors valuing the company at $9.9 billion.

Mohan and the other Windsurf employees will join Google DeepMind to work on agentic coding, Google said.

Meanwhile, Windsurf will continue to operate as an independent company. Most of its roughly 250 employees will remain at the startup working on building coding tools for large businesses. Windsurf’s head of business Jeff Wang will become CEO of the company, according to a company blog post.

Under OpenAI’s existing agreement with Microsoft, the software giant has exclusive rights to host OpenAI models in its cloud and gets access to OpenAI’s intellectual property through 2030. OpenAI had wanted to exempt Windsurf from the existing contract, The Information previously reported.

The deal talks between OpenAI and Windsurf have been complicated. For one, OpenAI has been trying to renegotiate its deal with Microsoft to prevent the software giant from getting the intellectual property of Windsurf. Meanwhile, Anthropic, which developers see as building the most effective coding model, limited Windsurf’s access to its models after the deal talks first spilled into the public. Anthropic co-founder and chief scientist Jared Kaplan said in an interview that he thought “it would be odd for us to be selling Claude to OpenAI,” when explaining the decision to cut off access.

Fortune and The Verge first reported some details of the deals

The Information : Huawei AI Chip Redesign Aims to Break Nvidia’s China Dominance

Huawei AI Chip Redesign Aims to Break Nvidia’s China Dominance

The Takeaway
• Huawei plans to develop a more flexible, general-purpose AI chip
• The new chip will make it easier for AI developers to transfer from Nvidia’s software
• Huawei has limited experience in general-purpose GPU design

China’s Huawei Technologies is plotting a fundamental redesign of its next artificial intelligence chip in a bid to seize market share from Nvidia.

The Chinese tech giant is working on a new AI chip design that would allow its chips to be used for a wider array of AI development work than its current ones can handle, according to two people with knowledge of the plan. That would bring Huawei’s chips closer to the design used by both Nvidia and Advanced Micro Devices, the people said, making it easier for Chinese AI developers to switch from Nvidia’s chips to Huawei’s.

As a result, Huawei hopes it can make its chips more appealing to Chinese tech companies, which still prefer Nvidia’s chips, even though U.S. export controls have made them increasingly difficult to buy. Most cutting-edge AI models in the country, including those from DeepSeek and Alibaba, are trained and deployed using Nvidia’s chips.

While local tech firms have tested Huawei chips, few have fully adopted them. That’s largely because of the difficulty developers face in adapting to Huawei’s distinct software system, after years of building products using Nvidia’s Cuda software, which runs on Nvidia’s chips.

AI developers using Huawei’s planned new chip design will be able to run the code they write based on Nvidia’s software—although Huawei will still need to develop software that translates the commands from Nvidia’s software into a language its own chips can understand.

Over time, the shortage of Nvidia chips could give Chinese tech firms little alternative but to use locally made chips. Since May, President Donald Trump’s administration has blocked Nvidia from selling even the modified AI chips it had formerly been allowed to export to China.

Nvidia CEO Jensen Huang warned in the latest earnings call that the U.S. export restrictions have made the $50 billion Chinese market inaccessible. “Export restrictions have spurred China’s innovation and scale,” he said on a recent earnings call.

Huawei didn’t have a comment.

Exploring Options

Huawei’s existing AI chips are part of a class of chips known as application-specific integrated circuits, which are designed for very specific purposes, such as certain AI calculation tasks. Nvidia’s chips, by contrast, use more standardized and established designs that can be used for a wider variety of AI tasks. Nvidia’s chips can therefore run all kinds of AI tasks very quickly, while Huawei’s chips are only efficient in certain calculations.


Huawei executives want its next-generation chip, the Ascend 920, to be a general-purpose graphics processing unit, said the two people. Such chips—similar to Nvidia’s—are capable of handling a wide array of AI tasks and accommodating various development methods.

Huawei is still working on the Ascend 920’s design, and the chip isn’t expected to go into mass production until next year at the earliest. Multiple teams are exploring various design options. If the new chip doesn’t perform at the level required, Huawei can switch back to the older design, the two people added.

The redesign won’t be easy for Huawei to pull off. The company lacks the decades of experience in designing traditional GPUs that Nvidia and AMD possess. Furthermore, U.S. export controls continue to restrict Huawei and its chipmaking partners from getting access to the most advanced equipment necessary to produce these more complex GPGPUs.

But if Huawei is successful, the redesign could dramatically improve its standing in the AI race. “Compatibility with Nvidia’s software is important for small developers, who often lack the resources to switch to a new system,” said Qingyuan Lin, a senior analyst at Bernstein covering the semiconductor industry in China.

TechCrunch : Windsurf’s CEO goes to Google; OpenAI’s acquisition falls apart

Windsurf’s CEO goes to Google; OpenAI’s acquisition falls apart

OpenAI’s deal to acquire the viral AI coding startup Windsurf for $3 billion fell apart on Friday, according to The Verge.

In a shocking twist, Google DeepMind is now hiring Windsurf CEO Varun Mohan, co-founder Douglas Chen, and some of the startup’s top researchers. A Google spokesperson confirmed the hiring of Windsurf’s leaders in a statement to TechCrunch.

Notably, Google is not taking a stake in Windsurf and will not have any control over the company. However, as part of the deal, Google will have a nonexclusive license to certain Windsurf technology, meaning the AI coding startup remains free to license its technology to others.

Bloomberg reports that Google is paying $2.4 billion to license Windsurf’s technology and hire its top employees.

“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” said Google spokesperson Chris Pappas in an email to TechCrunch.

The deal represents the AI ecosystem’s latest reverse-acquihire, in which a company hires a startup’s top talent and licenses its technology but does not outright acquire the company. Google previously conducted a similar deal to hire back Character.AI CEO Noam Shazeer, as did Microsoft to hire Mustafa Suleyman. These deals have helped several Big Tech companies increase their position in the AI race without drawing regulatory scrutiny.

“We are excited to be joining Google DeepMind along with some of the Windsurf team,” said Mohan and Chen in a statement to TechCrunch. “We are proud of what Windsurf has built over the last four years and are excited to see it move forward with their world class team and kick-start the next phase.”

As of Friday, Windsurf’s head of business, Jeff Wang, will take over as the startup’s interim CEO, he announced in a post on social media. Most of Windsurf’s 250 person team is not headed to Google DeepMind and will continue offering its AI coding tools for enterprise customers.


OpenAI’s deal to acquire Windsurf has reportedly been a major tension point in the ChatGPT maker’s contract renegotiations with Microsoft. Microsoft currently has access to all of OpenAI’s intellectual property; however, OpenAI didn’t want its largest backer to get Windsurf’s AI coding technology as well, according to previous reporting from the Wall Street Journal.

Earlier on Friday, Fortune reported that the exclusivity period on OpenAI’s offer to acquire Windsurf had expired, meaning that Windsurf would now be free to explore other offers. It seems that Windsurf didn’t wait long.

In recent months, Windsurf has been one of the hottest AI coding startups on the market. In April, the startup’s ARR reached about $100 million, TechCrunch previously reported, up from about $40 million months earlier. That rapid growth attracted suitors such as OpenAI and apparently Google.

The addition of Mohan, Chen, and other Windsurf leaders could significantly boost Google’s ability to build AI coding tools. In recent months, AI model providers have focused more on offering AI coding applications to entice developers. Anthropic has boosted its revenue significantly on the back of its AI coding tool, Claude Code, while OpenAI continues to pitch Codex, its AI coding agent, to software engineers.

Windsurf, on the other hand, is left in a much more uncertain position as a result of this deal. Other AI startups that have seen their leaders hired away have struggled to sustain the same momentum they had beforehand. Scale AI lost customers as a result of its deal with Meta, whereas Inflection had to pivot entirely from consumer AI after its deal with Microsoft.

It seems likely that Windsurf could suffer a similar fate.