WSJ : J&J Covid-19 Vaccine Shows Promising Preliminary Signs of Protecting Again

J&J Covid-19 Vaccine Shows Promising Preliminary Signs of Protecting Against Delta Variant
Vaccine triggered strong immune response in blood samples from eight vaccinated people

Johnson & Johnson’s JNJ 0.74% Covid-19 vaccine showed promising signs in a small laboratory study of protecting against the Delta variant spreading across the U.S. and other countries, the company said.

In laboratory testing, the vaccine triggered a strong immune response in blood samples taken from eight vaccinated people, J&J said Thursday.

The positive performance adds to a growing set of evidence indicating currently authorized Covid-19 vaccines can safeguard against the Delta variant, which appears to be more contagious than earlier strains.

How well the J&J shot fares against the Delta variant has been closely watched by health authorities around the world.

Many countries have been counting on supplies, especially because the vaccine is simpler to ship, handle and store than the shots from Pfizer Inc. PFE 1.02% and its partner BioNTech SE BNTX 0.05% and from Moderna Inc. MRNA 0.06%

The new findings “reinforce the ability of the Johnson & Johnson Covid-19 vaccine to help protect the health of people globally,” said J&J Chief Scientific Officer Paul Stoffels.

J&J also said its vaccine, in a separate study, generated immune responses against Covid-19 lasting for at least eight months, the most time that researchers were able to study the shot’s durability.

J&J, of New Brunswick, N.J., released the high-level findings in a news release, not a detailed and peer-reviewed study.

The Delta variant first emerged in India late last year. Since then, it has spread rapidly, becoming the most common strain of the Covid-19 virus in several countries, including the U.S.

The variant made up about 40% of positive Covid-19 test samples as of June 27, according to population genomics company Helix OpCo LLC, which collects and analyzes test samples from several U.S. states.

Vaccination is the best defense against the Delta variant, according to public-health authorities, who have cited the threat posed by the strain in urging people to get immunized.

So far, studies have indicated various vaccines appear effective against the Delta strain, especially once individuals have been fully vaccinated, though the shots aren’t as protective as they are against the original virus.

Separate studies in England and Scotland found that vaccines from Pfizer-BioNTech and AstraZeneca PLC offered substantial protection from the Delta variant against severe cases of Covid-19 and hospitalization.

England’s public health agency said an analysis of 14,000 cases found the Pfizer-BioNTech shot reduced the risk of hospitalization after infection with Delta by 96%.

J&J’s single-dose shot is based on a different technology than the Pfizer-BioNTech and Moderna vaccines, but operates similar to AstraZeneca’s.

J&J’s shot uses a modified version of the virus responsible for the common cold, to carry genetic instructions teaching cells how to make the spike protein that juts from the surface of the coronavirus.

Production of the spike protein, in turn, prompts the immune system to develop molecular defenses against the coronavirus.

In its large, pivotal study, the J&J vaccine was 66% effective in protecting against Covid-19 and 85% effective against severe disease. The shot appeared to be less effective in South Africa, where the variant now called Beta was circulating.

Overall, however, it was highly effective in places where variants were spreading during the trial.

J&J said the immune response found in its recent laboratory study was higher for the Delta variant than for Beta.

The study looked at blood samples from eight people in the J&J vaccine’s Phase 3 trial. The study found the shot triggered strong levels of neutralizing antibodies, agents of the immune system thought to be most effective fighting viruses.

Data on the durability of the vaccine’s protection came from a separate small study by Dan Barouch, an immunologist at Beth Israel Deaconess Medical Center in Boston who helped develop the J&J vaccine.

The study found that strong neutralizing-antibody and other immune responses to Covid-19, including to the Delta strain, persisted for the eight months examined, J&J said.

The U.S. Food and Drug Administration authorized J&J’s shot in February.

In April, federal health authorities temporarily recommended pausing use of J&J’s vaccine while they investigated a blood-clotting condition among people who got the shot.

The authorities lifted the pause shortly after, however, saying the benefits of the vaccine outweighed the risk and issuing recommendations for treating the rare condition.

FT : Alibaba’s Jack Ma and Joe Tsai pledge shares to global banks

Alibaba’s Jack Ma and Joe Tsai pledge shares to global banks
Chinese tech billionaires take loans for property, private jets and business deals

Chinese billionaires Jack Ma and Joe Tsai have pledged chunks of their combined $35bn stake in ecommerce group Alibaba in exchange for significant loans from investment banks, company documents show.

The share pledges, made to banks including UBS, Credit Suisse, Goldman Sachs and others, were undertaken by offshore companies controlling more than half of the two billionaires’ stakes in Alibaba, which totalled 5.8 per cent as of December. In share pledging, banks accept stock as collateral for loans but the borrower retains ownership of the shares.

The amounts of most of the share pledges were not disclosed in the documents but the pair have repeatedly turned to borrowing against their stock since Alibaba listed in the US in 2014, the documents seen by the Financial Times show. 

Ma and Tsai, Alibaba’s two largest individual shareholders, have used the loans to unlock vast personal fortunes tied up in the group’s shares.

Global banks have extended a wide variety of credit to Ma and Tsai. Tsai’s Gulfstream 650ER private jet is mortgaged to Credit Suisse. The Swiss bank, which brought Alibaba to market, also extended credit during the IPO run-up to an offshore shell company later linked to Ma’s purchase of a lavish house in Hong Kong’s elite Peak district and a new plane the same model as Tsai’s. 

Share pledging carries risks and is limited by most US companies. Any forced selling of executives’ pledged stock can exacerbate the fall of a company’s share price. This can be precipitated by margin calls, when borrowers must pay back loans from brokers or forfeit stock.

Credit Suisse, Nomura, Morgan Stanley, UBS, Mitsubishi UFJ Financial Group and Mizuho lost more than $10bn this year when they were forced to liquidate positions in US-listed companies held by family office Archegos after it failed to meet margin calls.

Alibaba said Ma “and his affiliates” currently did not have any loans outstanding collateralised by Alibaba shares while Tsai’s loans outstanding backed by shares were “easily manageable” with “prudent loan-to-value ratios to provide [a] substantial cushion against triggering a margin call”.

The company said pledging shares for loans was part of “ordinary financial planning to provide liquidity and diversification without having to sell shares in Alibaba”.

Ma stepped down as executive chair of Alibaba in 2019 while Tsai remains executive vice-chair.


Web of offshore companies
Ma and Tsai’s interests in Alibaba are held mainly through five offshore companies: JC Properties, JSP Investment, Parufam, PMH Holding and APN Ltd. 

APN has made the biggest known single pledge of Alibaba stock at 400m shares. But rather than in exchange for a loan, this was part of guarantees made to Japan’s SoftBank and Yahoo after Ma carved out Alibaba’s payments unit Alipay — now part of his fintech Ant Group — from the ecommerce company.

Ma’s wife Cathy Ying Zhang, who has taken Singaporean citizenship, has been instrumental in his dealings. Records show that two offshore holding companies of which Zhang is the sole director, JSP Investment and JC Properties, hold 60 per cent of the couple’s Alibaba stake.

Altogether, Zhang’s two holding companies for Alibaba shares have made more than a dozen asset pledges to investment banks for loans extended to a web of offshore companies. 


In addition, Zhang is the sole shareholder of a Hong Kong company Ma used to buy a château and vineyards in France and has power over the well-endowed Jack Ma Philanthropic Foundation, business records show. She has also signed off on cheap loans from Goldman Sachs to Enbao Asset Management, Ma’s family office.

In one deal, an investment in a Chinese online real estate platform in 2015 that was orchestrated by Enbao, Ma used two offshore holding companies to contribute $20m. One was BVI-based Rainbow Zone, which contributed $10m while at the same time taking a loan from Swiss bank UBS that was collateralised against unspecified securities pledged to the bank by JSP Investment. 

On one day in 2019, the couple set up three shell companies, Miracle Orchid Investment, Rising Orchid Investment and Winning Orchid Investment. Three months later they received loans backed by JSP Investment’s assets.

The records seen by the FT made clear that Alibaba’s American Depositary Shares had been pledged for loans from Morgan Stanley and Credit Suisse, while Goldman referred to pledged American Depositary Shares, and UBS reported pledged “securities” and other assets.

BVI-based Diamond Key Worldwide, another company Zhang controls, has received four separate loans from UBS. Last year, the company’s Chinese subsidiary bought a Rmb35m ($5.4m) piece of land in Hangzhou, where Alibaba is based, to develop for educational purposes.


Unlocking liquidity without alarming markets
Bankers say stock pledges are a common method for Chinese executives to raise cash without losing control of their companies or sending negative signals to the market by selling their shares.

“It’s a really good business for banks, it feeds a lot of people,” said one former banker. “These founders are asset rich but cash poor.”

American executives such as Tesla co-founder Elon Musk have also pledged shares in their companies for loans. But as a US company, Tesla has to disclose the pledges to shareholders under Securities and Exchange Commission rules.

But under looser US disclosure requirements for “foreign private issuers”, a category that includes nearly every Chinese tech group listed in the US including Alibaba, Ma and Tsai have no obligation to reveal their share pledges.

The documents show many of the share and other asset pledges of Tsai, Ma and his wife Zhang remained in place as of January, even as they have started to sell down their Alibaba shares. 

Ma and his wife have cashed out an estimated $11.4bn of stock since Alibaba floated in New York, with the majority sold starting in 2017. His charitable foundation has sold another $4.1bn. Tsai has sold an estimated $5.4bn. 

Alibaba said Ma and Tsai had owned “the company’s stock for 22 years and continue to have significant holdings in Alibaba, which make up the majority of their wealth”.

A former English teacher, Jack Ma is one of China’s best-known entrepreneurs, co-founding Alibaba with Tsai in 1999 before building a fortune estimated by Bloomberg at $49.9bn.

Late last year, however, he largely disappeared from public view after Beijing began a crackdown on Ant Group, the fintech Ma carved out of Alibaba in 2011. 

Credit Suisse, Morgan Stanley, Goldman Sachs and UBS declined to comment.

FT : How to beat the private equity buyers

How to beat the private equity buyers
Investors can spot possible target companies

Why weren’t all UK fund managers invested in Wm Morrison when the recent bid for the supermarket chain came in?

If it was cheap enough for private equity firm CDR to want it, why was it not cheap enough for traditional fund managers to be holding?

I wrote about this last week — suggesting fund managers have little grounds for complaint about losing out on the initial price rise or on any further increases should a buyout go ahead at some point.

But there is another way to look at it. You could argue that companies are worth more to private equity companies than public shareholders. There are a couple of reasons for this. One is volatility. Publicly listed shares are volatile. Private equity holdings, which aren’t priced very often, are not.

Another is the one-owner effect: disparate groups of shareholders find it hard to force management to do their bidding. PE owners (holding 100 per cent of a company and speaking with one voice) do not.

Then there is financial engineering — PE is less wary of debt than perhaps it should be. As its managers tend to encourage higher levels of debt, they put a higher value on steady cash flow (required to pay the interest on that debt) than perhaps the public market does.

PE managers will also tell you they are not just lucky accountants with easy access to cheap money, but better managers than anyone else.

More cynically you might just say that companies have more value to PE than traditional managers because they get to charge higher fees for holding them. Mix all this up and even with some very large pinches of salt, it feels like there is some sense in the idea that a PE manager should pay more to take a firm private than a traditional manager will pay to keep it public.

I don’t buy all of it of course. I am, for example, buried under missives from fund managers telling me about their active ESG policies at the moment. Believe the PR and you must believe they all spend most waking hours haranguing company managers about various bits of do-goodery — and that they do this with significant success.

But if their voice works so well with this, why doesn’t haranguing companies about their balance sheet structure and business practices work? We will have to leave that as one of the great mysteries of finance — it’s a long list — and accept it as just the way it is. If it were not, no public companies would ever be taken private by PE.

However, as Pelham Smithers of Pelham Smithers Associates points out, there is another complication here. The criteria on which PE target companies are valued in the market is not exactly a secret. The “knowledge is distributed around the market”. Everyone knows the current price of a listed company, the price they themselves would pay, and the price a PE firm could pay.

The challenge then is to figure out if the PE investor will end up paying that price: it’s about assigning a value to the likelihood of a bid. That means thinking pricing probabilities.

Back to Morrisons. “The chances of it being bid for are now 100 per cent,” points out Smithers. What was it before? Obviously very much lower. The company had a low-grade Covid experience — profits fell by 50 per cent last year, which meant it didn’t look particularly cheap on conventional valuation measures.

If fund managers figured the probability of a bid was therefore quite low they put a lower value on the shares than they would otherwise — something that, of course, then made it more attractive to private equity. So the managers who weren’t holding Morrisons last week were guilty — guilty of getting their probability calculations wrong.

Nonetheless, the key point is that any fund managers interested in value have a problem. Buying what look like cheap stocks and waiting for them to go up without correctly calculating the odds of the arrival of a catalyst can present what we might call material career risk.

As several readers have pointed out — and I suspect there are ex-fund managers or even frustrated current fund managers among them — to survive you have to deliver performance year in year out.

If you don’t, money will head for the doors — the same exit you will also eventually be pointed towards. If you are going to go for value then you have to be able to identify some kind of catalyst for that value to be released — or at least made obvious to the rest of the market.

You have to know that private equity is on the way or that an activist investor is about to kick up a stink within a year or so. Without that certainty about both value and change you have to leave the value on the table — and stick with buying shares in companies that are showing obvious growth (just like everyone else).

So mostly you leave the value on the table. Even the most determined of value investors have to recognise this. Look to the Scottish Investment Trust (which I hold) and its high conviction, contrarian value approach for example.

We never buy a stock just because it is cheap, says the trust’s manager, Alasdair McKinnon. “The quantitative appeal of the valuation must be mirrored by qualitative attractions such as strong leadership or enduring competitive advantage. Crucially, there must be clear catalysts for improvement; we want the company to positively surprise.”

Even that isn’t always enough of course: McKinnon’s trust has done well in the last six months but underperformed over three and five years. The board — while not necessarily planning to change manager — are inviting alternative management proposals. See why most managers end up leaving value on the table?

That’s bad news for most fund investors. But here’s the thing: it is really good news for the kind of investors who are happy buying individual shares. You can wait three years, five years or even more for the catalyst — particularly if you are collecting dividends along the way.

You need some certainty about value — but very little about change. No time-sensitive probability calculations are required. In some sense then, your calculations of value are closer to those of a PE investor than a fund manager — you can pay a little more than they can.

How do you capitalise on this? The UK market is particularly vulnerable to PE at the moment as it’s one of the cheapest global markets. So a FTSE 100 ETF isn’t a bad way to start (you’ll get a bit of all uplifts).

The brave and patient can go a step further, recognise that they don’t need “clear catalysts” and make their own portfolio of cheap stocks. Choose your long-term target — McKinnon suggests engineering group Babcock. The shares are down 70 per cent in the last five years. No one has much good to say about the firm or its accounting. But it has a perfectly good new management team. That team might improve matters. Or a PE buyer might. Buy and wait.

>>> Stoxx 600 Pre-Market Indications

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    • FlatexDEGIRO Shareholders to Sell About 2.5%-3.0% Stake

WWD : Richemont Grows Leather Goods With Delvaux Purchase

Richemont Grows Leather Goods With Delvaux Purchase
Richemont acquired the Belgian brand Delvaux from First Heritage Brands, a vehicle of Hong Kong billionaire brothers Victor and William Fung.

Further extending its holdings beyond hard luxury, Richemont is to acquire elite Belgian leather goods firm Delvaux from its Chinese owners.

Richemont said it purchased 100 percent of Delvaux “in a private transaction” and did not name the seller: First Heritage Brands, a vehicle of Hong Kong billionaire brothers Victor and William Fung, who have already exited their other European fashion investments, Sonia Rykiel and the shoemaker Robert Clergerie.

Financial terms were not disclosed.

In a statement released after the close of trading on the SIX Swiss Exchange, Richemont said it would “position Delvaux for its next stage of development by enabling Delvaux to leverage the group’s global presence and digital capabilities, to develop its omnichannel opportunities and customer engagement.”

Philippe Fortunato, chief executive officer of Richemont’s fashion and accessories maisons, lauded Delvaux’s “strong heritage, distinctive savoir-faire and exceptional manufacturing capabilities.

“The maison’s rich archives and creative momentum over the last 10 years represent a solid foundation from which to grow the company for the long term, strengthening Richemont’s presence at the pinnacle of the leather goods category,” he added.

Founded in 1829, Delvaux is considered the oldest luxury leather goods house in the world, the first to file a patent for leather handbags in 1908, and one of the first luxury goods firms to introduce seasonality into its collections in the 1930s. It has been an official supplier to the Belgian royal court since 1883, and boasts a meticulous archive of more than 3,000 styles, all patented.

Delvaux is headquartered in Brussels, and has a workshop that produces prototypes and exceptional, made-to-measure products. It also has two production sites in France, the Avoudrey site in the Doubs region and Bourg-Argental site in the Loire region in Eastern France. The house’s iconic Brillant handbag, launched in 1958 and still made using the inside-out passepoil technique, represents around 10 hours of skilled work.

In the ’80s, Delvaux helped promising fashion student Martin Margiela make a bag for a collection he presented for the Golden Spindle competition, and worked for a time in the 2000s with another Belgian designer, Veronique Branquinho.

In a statement, Richemont said the Delvaux acquisition would have “no material financial impact on Richemont’s consolidated net assets or operating result” for the fiscal year ending March 31, 2022, noting that Delvaux’s results would be grouped under the “other business” area.

First Heritage Brands took a majority stake in Delvaux in 2011 with Singaporean state investment company Temasek, and grew sales from 18 million euros up to about 120 million euros, according to market sources.

The brand pushed into China, South Korea and Japan, and opened flagships on New York’s Fifth Avenue, Bond Street in London and in the Palazzo Reina in Milan, as well as a pop-up on the Rue Saint Honoré in Paris, with plans for a permanent store there. The proportion of sales generated outside of Belgium increased from 3 percent to about 85 percent, while the store network increased from 10 to 50 under the ownership of First Heritage Brands.

Last year, Delvaux accelerated its online business by adding e-commerce services to its U.S and European sites since the pandemic walloped consumer markets around the world. The brand works with JD.com to sell online in China.

To be sure, Delvaux is the kind of storied luxury property that appeals to Richemont chairman Johann Rupert, who has a penchant for buying smaller scale brands and expanding them, as he did famously with Van Cleef & Arpels and Panerai.

The Swiss group has had more of a mixed track record outside its core expertise of hard luxury, shedding Shanghai Tang and Lancel in recent years in order to focus on its top brands in the soft accessories arena.

In 2017, Richemont purchased Serapian, the high-end Italian leather goods brand, and has been using its factories to scale up production and develop expertise across the group.

“We see significant potential in leather goods,” said Richemont’s chief financial officer Burkhart Grund during the company’s 2017-18 results presentation, adding that the company’s plan was to grow its leather business organically through its existing brands, rather than rely on acquisitions.

That strategy is clearly evolving: Acquisitions are now on the agenda, and management has been fortified.

Last year, Richemont brought in Fortunato, a seasoned executive from LVMH Moët Hennessy Louis Vuitton, to lead its fashion and accessories maisons, which include Chloé, Dunhill, Maison Alaïa, AZ Factory, the golf and luxury performance apparel brand Peter Millar and Serapian.

Richemont is also the parent of Cartier, Montblanc and a bevy of luxury watch brands including A. Lange & Söhne and IWC.

The Delvaux disposal represents one of the last remaining fashion assets connected to Fung Group, the Hong Kong-based sourcing giant. In 2017, it sold its stake in struggling men’s wear retail unit Trinity — which includes Gieves & Hawkes, Kent & Curwen and Cerruti 1881 — to Shandong Ruyi.

Over the years, the sprawl of the Li & Fung empire started taking its toll, with CEO Spencer Fung explaining to investors not long after he took over the reins of the business that he realized the company had many business divisions but none that were particularly exceptional. He soon embarked on streamlining the business into sourcing and logistics. But while the company began pivoting, supply chain pressures only accelerated and this coincided with the transformation of the retail landscape. Many of Li & Fung’s biggest clients were sunsetting retailers that struggled to adjust as the next generation of direct-to-consumer and omnichannel retail concepts arrived on the scene.

Meanwhile, its brand management and licensing spinoff Global Brands Group has also been beset with problems. In mid-June, the Hong Kong Stock Exchange-listed group reported that its liabilities exceeded its assets by $899 million. The firm has been aggressively cutting costs and carving off its assets, revealing it would use the proceeds from the recent sale of its Spyder division in South Korea to keep the company operating instead of paying its debts that were past due.

Pierre Mallevays, co-head of the merchant banking department at Stanhope Capital Group, served as adviser to First Heritage Brands in the transaction.

WWD : Tiffany Hires Nathalie Verdeille to Lead Jewelry Design

Tiffany Hires Nathalie Verdeille to Lead Jewelry Design
The seasoned talent has worked at Cartier, Chaumet and Lorenz Bäumer.

Tiffany & Co. has snared a formidable — and familiar — design talent to lead its core jewelry and high jewelry categories, WWD has learned.

Nathalie Verdeille, who has been creative director for jewelry at Cartier since 2005, is to become Tiffany’s vice president, artistic director of jewelry and high jewelry. She is expected to start in the role later this year.

Verdeille is known to Tiffany parent LVMH Moët Hennessy Louis Vuitton as she previously led high jewelry design at Chaumet, which is part of LVMH’s watches and jewelry business division.

At Tiffany, she will report to Alexandre Arnault, executive vice president, product and communications, who is shaking up the iconic American jeweler with key hires and high-profile campaigns featuring a slate of buzzy new brand ambassadors, including Anya Taylor-Joy, Tracee Ellis Ross and Eileen Gu.

“Nathalie is an accomplished and renowned designer in the jewelry industry and joins us with an impressive portfolio of work,” Arnault said in an internal announcement seen by WWD. “In this new role, Nathalie will be responsible for leading the creative vision for our jewelry and high jewelry designs. She will lead the design team and work closely with cross-functional partners as well as the regions and markets to ensure flawless innovation, design, product prototyping, and follow-up and alignment with the overall product strategy.”

Verdeille graduated from the prestigious Haute École de Joaillerie​ in Paris in 1997, and immediately went to work for Lorenz Bäumer, one of a clutch of high jewelry designers and brands on Place Vendôme, according to her LinkedIn profile.

Following a brief stint at Cartier, she moved over to Chaumet for three-and-a-half years, before rejoining Cartier in 2005 to lead its jewelry design.

Last March, Arnault recruited Ruba Abu-Nimah from Revlon to become Tiffany’s executive creative director, marketing and communications. Abu-Nimah’s connections within New York’s underground creative field are expected to fuel a more forward-thinking brand image.

As reported, Tiffany also tapped Peter Marino, LVMH’s go-to architect, to take over the renovation of the brand’s historic Fifth Avenue flagship.

Arnault is part of a trio of LVMH executives tapped to unlock potential at Tiffany. The other two are Anthony Ledru, who became Tiffany’s chief executive officer after a career mostly in the U.S. jewelry business and several years in Paris at Louis Vuitton. Meanwhile, Vuitton chairman and CEO Michael Burke was appointed chairman of the Tiffany board.

Beyond its financial might and management brain trust, the world’s largest luxury group has global expertise in real estate, retail development and CRM, gleaned from some 75 brands and 160,000 employees across fashion and leather goods, wines and spirits, perfumes and cosmetics, selective retailing and hospitality.

Before Tiffany, Alexandre Arnault was CEO of LVMH-owned luggage-maker Rimowa. At Tiffany, he is leveraging his digital acumen, Millennial perspective, marketing and branding know-how, and network of connections in Silicon Valley. In addition to revving up Rimowa with zesty colors, buzzy collaborations, standout stores and new product categories, the young Arnault took charge in accelerating LVMH’s digital transformation.

WWD : Louis Vuitton Emphasizes High Jewelry Thrust With Alicia Vikander Campaign

Louis Vuitton Emphasizes High Jewelry Thrust With Alicia Vikander Campaign
Louis Vuitton is launching its first high jewelry campaign with Alicia Vikander.

PARIS — Louis Vuitton is launching its first high jewelry campaign, fronted by Alicia Vikander, marking steep ambitions from the luxury label as it continues its push into the category.
“She’s very regal but approachable,” said Michael Burke, the brand’s chief executive officer, speaking with WWD from an upper floor meeting room of its buzzing Pont Neuf headquarters here. The executive pointed to her training as a classical dancer, stressing the importance of showing the movement of the body for displaying jewelry.
“There’s a return to jewelry that’s sensual,” he remarked, adding that jewelry worn on the skin — rather than in the hair, for example — takes on a “whole new sensuality.”

The executive noted that Nicolas Ghesquière, who designs the label’s women’s collections, started working with Vikander first. The designer felt she had “the right energy, and the right type of grace and movement and expression to bring his clothes to life,” Burke said.
He noted a compatibility in style with Francesca Amfitheatrof, Louis Vuitton’s artistic director for jewelry and watches.
“She designs for that type of woman, she doesn’t design girly little flowers. Nobody needs another girly little flower thing, with center stones and some brilliant diamonds around it. The market is full of that,” he said.

A high jewelry necklace from Louis Vuitton’s Bravery collection. Courtesy of Louis Vuitton
“It has to be authentic,” said Burke, when it comes to brand ambassadors.
“She’s not overexposed — she’s her own person, she’s quite mysterious,” said Amfitheatrof, speaking in a separate interview through a Zoom call, describing Vikander.
The actress has a “sense of mystery where you want to know more about her,” added Amfitheatrof. The designer pointed out that putting her face to the label serves as a unifying force for the work of three different artistic directors — the third being Virgil Abloh, artistic director for Vuitton’s men’s collections.
“We are three different artistic directors who all do three very different things; it’s great to have one person that kind of is the umbrella over all of it,” she noted.
The historic trunk maker began building the high-end jewelry category around a decade ago. It has workshops on an upper floor perch of the Place Vendôme flagship, and made headlines last year introducing the discovery — and its ownership — of one of the world’s biggest rough diamonds, the Sewelo.
A Louis Vuitton ring from the Bravery collection. Courtesy of Louis Vuitton
This year, the house is marking 200 years since the birth of its founder, Louis Vuitton, with its largest jewelry collection made up of 90 pieces, titled Bravery. The jewelry draws key themes from Vuitton’s life, starting with star configurations in the sky when he was born — the Constellation d’Hercule necklace — packed with stones, mixing tsavorites, tanzanites and 50 carats of Australian opals. Other themes include “The Mythe,” which features a three-row necklace with a 19.7-carat cabochon sapphire from Sri Lanka, an 8.6-carat Colombian emerald and a 7.11-carat sapphire from Madagascar. Other key pieces include the transformable Star du Nord necklace, which includes a 10-carat monogram cut diamond.
“I love to put a lot of stones all in one piece, so instead of having your emerald, and your diamonds, you’ve got all of them, on one necklace,” said Amfitheatrof, describing her approach to one piece. “Why not, plus a flawless and another two diamonds!”


Francesca Amfitheatrof is artistic director for jewelry and watches at Louis Vuitton. Courtesy of Louis Vuitton
The pieces draw on house codes, some sprinkled with monogrammed star- and flower-cut diamonds — patented — and featuring diamond-pavéd cords and locks, as well as latticework inspired by the features of the trunks and their interiors.
It was designed over the past two years, through what Amfitheatrof described as a very unique process, given the lockdown — she was based in Connecticut.
“I had seen the stones, so it’s not that I didn’t know them but we weren’t best friends — put it that way — we met,” she said, noting the challenge of not having the stones on hand.
Being isolated, however, carried advantages, allowing for a deep dive into design, without the disruptions of life under normal activities.
“I had complete isolation and the time to really go into it deeply, in a way more deeply than you’re used to because of all the rushing around, the flying around,” she said. “That was kind of fabulous.”
This is her third collection for the label, and she said that helped in terms of trust and understanding as well as communication with teams.
“I think this was a real moment where experience showed,” she said.
Louis Vuitton earrings from the Bravery high jewelry collection.
Describing the work process, she said she challenged her teams in the workshops through regular Zoom calls that were maintained throughout the pandemic.
“I really pushed them, because that’s what I know they can do and that’s what we want to achieve, because if you’re going to do something quite graphic and quite bold, it has to be sensual, it has to be feminine, it has to sit on your skin in a way that is full of lightness and movement,” she said.
Speaking about the jewelry in the collection that featured cords and pompoms, she explained that each section contained an individual piece, for “total fluidity.”
“It’s a weave — and that moves as well,” she said.
“For me, the joy, the utter joy that I have, is that I’m very into the making of the pieces and I’m very into the engineering and I’m very into the fact that they all need to move,” said Amfitheatrof.
Working with Place Vendôme jewelers is the “joy of all joys,” she enthused.
Being trained as a jeweler herself, when it came to working remotely, also helped, she said, describing the process.


“I can sit with them and say, ‘hold on a second, what if we do this and this and that.’’’
“I think by now there’s a certain sense of pride as well, because they’re phenomenal what they can do,” the designer added.
Describing workshops that have been built from scratch under Burke’s leadership, she noted a mix of the the “most famous” and best, as well as younger artisans — who proved to be particularly adaptable during lockdowns, some building a space at home to keep working.
When it came to the creative process, Amfitheatrof said she thought a lot about the house founder and what made him unique.
“It felt like I was walking alongside Louis Vuitton, the man,” she said, noting he can “get a little bit lost” given the high level of energy and activity at the luxury house.
Reflecting on Vuitton, she said she thought about the Age of Enlightenment, when he arrived in Paris, and the sense of expansion that he must have felt, as travel started to take off, with trains and boats — and trunks. The founder left his village in the mountainous region of Jura at the age of 12, on foot — arriving in the French capital two years later.
“That’s how you get your education, you leave a boy and you arrive a young man,” she said.
“It’s curious that he had this drive, that he had this differentiating character that wanted more, and nobody else in his family was like this,” added the designer.
“There is something that is intangible that makes each one of us unique and definitely he had this combination of different interests, and I think that arriving in Paris, and feeling and breathing and understanding that change and understanding society, politics, geography, political advancements — he just saw what could be done,” she added.
His luggage business was “a technological achievement but also an aesthetic — an aesthetic that is still chic today, still elegant and modern,” Amfitheatrof asserted.
“I don’t know if Louis had ever imagined getting involved with billion-year-old stones,” remarked Burke, reflecting on the link between high jewelry and the brand. He went on to draw connections between the label’s past tradition and current activity.


“It’s lasting, enduring quality and value, and that’s what makes a luxury house versus a fashion house,” he said, noting he expects high jewelry from Louis Vuitton to sell well in the auction houses in the future.
Amfitheatrof and Burke both cited the work of sourcing stones as crucial.
“It starts with the hunt — primordial instincts — and it can take years and years,” said Burke, noting that stones in the Bravery collection took years to source, describing waiting for a stone’s cousin, its alter ego, its opposite.
The executive noted that when it comes to the luxury universe, gem stones are the raw material that has the strongest influence on the creative outcome of a piece.
“It’s a tango between the cutter and the polisher and the designer,” he said, repeating the list of players, to work in the role of ‘the stone.’
“The stone is the most important, the stone has the loudest voice in determining what the final product will be,” he said.
“That I love, that excites me, makes me get up in the morning — that’s something I really like because it’s a bet, you’re betting on the rough,” he said.
“If you want to have an exceptional stone you have to start now, you have to go upstream, you have to be a lot more involved upstream, with the people in the field, and you have to tell them what you’re looking for — and if they know where to look it’s going to be closer to what our dreams are than if you just come to the table and just look at finished stones,” he added.
Burke explained how the house forged relations with cutters and polishers in Antwerp to invent the flower cut.
“The more you’re involved upstream the more you’re going to have an impact on the jewelry and the more the finished product can be striking, unique and specific to your house,” he added.
To illustrate Vuitton’s approach as taking risks, with colors and cuts, for example, Burke mentioned that cabochons were used in the collection for the first time, noting medieval and Eastern influences, but also their genderless nature.
Yes, men are interested in high jewelry he said, noting a number of pieces in the collection have already been sold to men.


“This is not something we think is going to happen — we’re in the middle of it,” he said.
As for the famous Sewelo diamond, it’s still in its rough state.
“We’re just at the initial stages, nobody’s in a rush, it’s so unique so we’ll see what happens,” he said, noting research is ongoing, which perhaps might prompt ideas.
“We may have something completely out of left field that comes to us after visualizing the inside of the rock,” he said.