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As luxury grapples with a slowdown, houses are tapping 1889 to create money-can't-buy experiences for their elite VICs.

PARIS — The luxury sector is grappling with its first slowdown in 15 years, but one segment is thriving: the VIC.

An acronym for “very important customer,” the term designates a cohort that’s seemingly immune to economic gloom, as witnessed by the $50 million wedding of Jeff Bezos and Lauren Sanchez in Venice.

Brands competing to woo the 1 percent have one Paris-based agency on speed-dial: 1889 specializes in the kind of experiences that money can’t buy.

Over the past decade, the company has worked with houses including Valentino, Gucci, Cartier, Burberry, Saint Laurent, Piaget and Moët & Chandon to design custom events for high-net-worth individuals attending shows in Paris.

From a private dinner in the apartment of a prominent art collector to a helicopter ride to a castle ruin, anything is possible.

Through its hospitality arm, 1889 also designs full-blown luxury destinations like Maison LVMH, a pop-up space in an elegant private residence where LVMH Moët Hennessy Louis Vuitton welcomed athletes and VIP guests during the 2024 Paris Olympic Games.

Aurélie de Royer, who founded the agency in 2016 with Thomas Mesmin, has seen brands step up clienteling activities since the end of last year, as they cut down on group events to focus on pampering their best customers.

“Some figures suggest that 2 percent of VICs account for around 20 percent of luxury revenues,” she said. “The houses are telling us the VIC is key today, because they are the ones fueling growth.”

Top clients qualify for all-expenses-paid trips to Paris during the ready-to-wear and haute couture fashion weeks. Think five-star hotels, fancy restaurants and tailor-made experiences, not to mention the little extras: flowers, gifts, hair and makeup before the show.

“A VIC should never have to take out their credit card,” de Royer said.

An Emotional Connection

With a background in gastronomy, she has a network of top chefs, while Mesmin is a former luxury analyst. In 2019, French luxury consulting firm MAD acquired a majority stake in their agency, helping it to ride out the coronavirus pandemic when travel ground to a halt.

Once business bounced back, they brought on fashion industry veteran Jimmy Pihet as director of 1889 Experience.

The longtime former spokesman of the Fédération de la Haute Couture et de la Mode, French fashion’s governing body, he has parlayed his extensive contacts and encyclopedic knowledge of brands to curate experiences in tune with the DNA of each house.

Pihet is passionate about connecting visitors with artists, artisans, gallerists, collectors, musicians, chefs and other purveyors of the French art de vivre.

“Our network is what money can’t buy. You’re going to meet people who will share their know-how, their passion, and it’s an emotional connection,” he said. “Thanks to this, through word of mouth, a VIC will go from a customer to an ambassador of the brand.”

As far as he’s concerned, the more exclusive the group, the better. “We like intimacy. Between two and six people is ideal,” Pihet said.

As might be expected, all customer data provided by the brands is strictly confidential. “We don’t keep listings. Once the event is over, we erase the information,” he explained.

As luxury houses have set up dedicated departments to manage their VIP relations, the nature of the job has evolved. For instance, the post-show dinner, once reserved for press, has now become de rigueur for visiting VICs and their sales associates, who accompany them at every stage of the trip — and nothing is left to chance.

“In the past, VIC departments did pretty much what they wanted,” noted de Royer. “Nowadays, they have to get everything approved by the artistic direction, because it has become a strategic issue for the houses. For us, it means an additional layer of vetting, which makes the projects a little more complex, but even more exciting.”

Pihet said it’s hard to say where the pressure is coming from. “Is it because VICs are increasingly demanding? I don’t know, but strategically, they matter more to houses than they did in the past, and I believe they have become just as important as press,” he noted.

Weathering Headwinds

That has some very direct consequences for media outlets covering the shows. As brands trim budgets and try to convey a feeling of exclusivity with intimate venues, editors are increasingly struggling to secure invitations.

“Where brands have reduced the number of guests, the number of VICs has remained stable, meaning they are proportionally more represented at shows,” Pihet said.

Another consequence of the slowdown in luxury spending is the growing importance of guidelines: step-by-step templates for events and experiences that can be replicated across markets.

“We created our first guidelines in 2021 and demand has boomed since, accelerating in 2024 and 2025,” said de Royer. “There’s a growing need and desire to deal with customers locally and pamper them wherever they are — also because you can’t have 400 clients from all over the world traveling to each show.”

The one area that has struggled is hospitality, following the Maison LVMH project last year and an equally ambitious project in 2023 for Eminente, the LVMH-owned rum brand, which took over a Paris townhouse near Place des Vosges for six months.

“We created a restaurant, a bar, four guest suites and a swimming pool from scratch,” de Royer recalled. “We don’t expect to have a project of this scale in the next six months because the return on investment is probably longer.”

1889, which also works with private clients directly, posted sales of 4.3 million euros in 2024, with gross margin up 20 percent year-on-year. De Royer hopes to keep gross margin stable this year, despite a forecast decline in revenues.

“The start of the year was a little sluggish, but things have picked up nicely,” she said. “Since April, we’ve seen good business.”

Pihet noted that despite the negative outlook for luxury, brands are requesting increasingly rarefied experiences.

“You have this tiny segment of the population which is relatively immune to headwinds, and therefore the houses are prioritizing this clientele,” he said. “If you don’t treat them well, they will naturally move to a house that pampers them a little more.”

Why von der Leyen will win the parliament battle but risks losing the war

Warning shot

Ursula von der Leyen this week faces the first no-confidence vote in a commission president for over a decade, with a foregone conclusion but unclear ramifications.

Context: Brought by a Romanian far-right MEP who secured the necessary 72 signatures in the European parliament, the censure vote is ostensibly about von der Leyen’s handling of private text messages exchanged with a pharmaceutical CEO during the Covid pandemic.

The vote, which will take place on Thursday after an in-person debate in the Strasbourg chamber later today, will almost certainly fail. The biggest parties have said they will support her; few want to be associated with those who are championing the motion.

But many lawmakers who will vote to support von der Leyen are still looking forward to making her squirm at today’s debate, and hope she interprets the mere staging of the ballot as a clear shot across her bows: a warning signal to a leader who has pushed her strong-handed leadership of the EU’s executive to a point of testing the spirit — if not the letter — of the bloc’s laws.

There is little love lost between the parliament and von der Leyen’s Berlaymont. Many MEPs see her regime as aloof and dismissive of the bloc’s legislature. Senior commission officials in turn believe the chamber to be unproductive, obstructive and self-aggrandising.

For example, von der Leyen’s decision to use emergency powers bypassing parliament to legislate the recent €150bn loans-for-arms scheme has triggered a move by the chamber to bring legal action against the commission.

Additionally, the increasing use of support from hard-right parties to push through legislation is straining the ties between the coalition of the centre-right, liberals, and socialists that voted her into power.

MEPs will not bring down von der Leyen’s commission this week. But they will send her a few unsubtle reminders that it's a lot harder to run the EU if you choose to do it while picking a fight with the parliament.

Trade-off

The EU faces a key choice this week between swallowing higher tariffs to avoid a full-blown trade war with Washington, or retaliating to put pressure on the US to compromise, write Barbara Moens and Andy Bounds.

Context: Wednesday is the threatened deadline for a trade deal between the two trading giants, following almost three months of negotiations to avert Donald Trump’s threatened 50 per cent tariffs on goods from the EU next week.

Yesterday, US Treasury secretary Scott Bessent warned that US tariffs on imports from some countries will “boomerang” back to the steep levels set by Trump in April unless they quickly offer concessions and strike deals with Washington.

Ursula von der Leyen, the European Commission president, reached out to European leaders over the weekend to get guidance on whether she should accept a deal with some higher tariffs, which many favour, or raise the pressure on the US. The commission leads the trade negotiations on behalf of the bloc.

Last week, von der Leyen said she hoped for an agreement in principle that would allow the sides to keep negotiating a final deal. 

With time running out, the bloc is still divided on the best strategy to deal with Trump. A number of countries, especially those that rely heavily on exports such as Ireland, Germany or Hungary, are in favour of a swift deal.

While the two sides talk, so-called sectoral tariffs of 25 per cent for cars and car parts, and 50 per cent for steel and aluminium, remain in place, as well as a 10 per cent tariff on most other imports.

German Chancellor Friedrich Merz, who is under pressure from German industry suffering from the measures, said last week that “it is better to reach a quick and simple solution than a long and complicated agreement that remains on the negotiating table for months”.

Other countries, including France and Spain, are sceptical about accepting a deal just for the sake of it.

They argue that the EU, with its 450mn consumers, should have the economic self-confidence to stand up to Trump and use its trade defence arsenal to hit back if Washington refuses to strike a fair deal.

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Liechtenstein hit by Russia-linked ‘zombie trust’ crisis

Hundreds of entities in legal paralysis in the principality after US sanctions trigger wave of director resignations

Liechtenstein has launched an emergency task force to tackle a crisis of “zombie” trusts, which has left hundreds of entities linked to wealthy Russians in legal paralysis.

The tiny Alpine principality, a hub for thousands of trusts and foundations, has been hit by a wave of resignations by fiduciary and board directors in the past six months as its regulatory system adjusted to US sanctions packages against Russia.

The result could leave as many as 800 orphaned entities — legally recognised but functionally frozen — with nobody in charge to manage assets or oversee liquidation.

Bankers and lawyers have warned the crisis risks contagion into the country’s broader financial sector, including major banks, if the government does not address the problem.

“We are talking about multibillion-dollar floating zombie trusts. And there is no solution yet. I have never seen anything like it,” said one Vaduz-based lawyer whose clients include several of the affected trusts.

Liechtenstein adopted EU sanctions packages against Russia following the full scale invasion of Ukraine in 2022. Nonetheless in 2024, under the Biden administration, the US placed sanctions on several Liechtenstein-based entities and individuals owing to their associations with Russian individuals and activities.

The US also warned Liechtenstein as well as other European countries last year that it could impose secondary sanctions on foreign financial institutions that work with certain Russian clients — even if those clients are not individually sanctioned.

Fearing further US action, Liechtenstein’s Financial Market Authority (FMA) adopted a zero-tolerance approach, urging industry in September to treat US sanctions as in effect binding because they posed “existential” legal and reputational risks.

The FMA explicitly advised fiduciaries — a person or entity legally authorised to manage assets on behalf of others — to terminate relationships with exposed clients, saying it was “the only appropriate means” of risk control.

This prompted directors to resign en masse, said Helmut Schwärzler, a lawyer at Schwärzler Rechtsanwälte. He added the overlapping legal obligations, from foreign sanctions regimes and in Liechtenstein, have made it nearly impossible to find replacements for directors, he said.

The US actions have been “unexpected and that has caused panic”, said Schwärzler. “Even the authorities said we do not know what could happen tomorrow let alone in one or two months.” 

“The vast majority of these entities are assets of non-sanctioned Russian people living in the south of France or Italy or places like Dubai. Even entities having just a remote link to Russia are affected.” 

Government figures show 350 entities are in limbo pending regulatory deadlines and 40 of those are in early liquidation proceedings. The government has said 85 are orphaned because no liquidator can be appointed.

Officials and legal experts assisting with the delisting, civil litigation or attempts to reinstate fiduciary directors told the FT the number affected could eventually reach as much as 800 without a solution.

The opaque nature of the entities makes it difficult to estimate how much wealth connected to Russian people is frozen or stuck. The people said the trusts contain anything from $5mn in cash to billions of assets including yachts, aeroplanes, family offices and luxury properties.

There are fears the crisis will undermine Liechtenstein’s status as a financial hub. The tiny country’s vast trust industry is prized for its favourable tax and legal frameworks as well as its perceived ability to shield clients from geopolitical fallout.

“This is starting to be problematic for the Liechtenstein financial centre,” said MP Thomas Vogt in June.

The other looming danger if the situation is not resolved is Russia putting pressure on Liechtenstein, says Johannes Gasser, partner at Gasser Partner, one of the principality’s biggest law firms.

“There is a risk from the US but also from Russia now. This could become another unprecedented and unparalleled risk from the other side that is equally powerful,” he said. 

Martin Alge, head of Liechtenstein’s Office of Justice, said the finance ministry and society and justice ministry have set up a steering group including the business sector to draw up options to tackle the “orphan” legal entities problem.

“The government knows how important it is to fix the issue. The department has been attempting to find liquidators and solutions such as appointing new boards, but the process has been difficult.”

He did not confirm the 800 figure but said it was “possible” that many could eventually be affected.

Separately the Liechtenstein government said it “accords the highest priority to a strong co-ordinated response to Russia’s ongoing aggression against Ukraine among our partners, including the US”.

The US Treasury said in a statement that it is co-operating with Liechtenstein authorities on illicit finance issues: “Treasury exchanges information and shares guidance with Liechtenstein on compliance with US sanctions and countering money laundering in its jurisdiction.”

China boosts nickel reserves as tensions with US simmer

Beijing takes advantage of prices at 5-year lows for metal vital to steel and EV batteries in push to secure supply chains

China is amassing huge quantities of nickel, taking advantage of low prices to bolster its reserves of the metal vital to stainless steel and electric vehicle batteries in the face of an escalating trade war with the US.

Beijing is estimated to have bought up to 100,000 tonnes of nickel for its state reserves since December, according to two people familiar with the matter as well as a Financial Times analysis of China trade data and withdrawals from the London Metal Exchange. Three other people confirmed the purchases but did not provide a figure.

Industry experts said Beijing’s nickel stockpile was estimated at 60,000 to 100,000 tonnes before the latest round of purchases, meaning China is thought to have doubled it this year. China does not regularly disclose the volume of its metal reserves.

“There has been a big increase in Chinese imports of nickel metal and it’s going into the government’s strategic stockpile,” said one senior industry figure.

The build-up comes as Beijing looks to secure its supply chains at a time of increasing geopolitical tensions with Washington, and as nickel prices have hit their lowest levels since 2020. China dominates the global supply chain of critical minerals and rare earths, and uses them as leverage over trading partners. 

China’s National Food and Strategic Reserves Administration, the government agency that manages official stockpiles, has been purchasing high-purity nickel, known as “class one” metal, since December, the people said. 

Customs data shows China’s purchases of pure nickel reached 77,654 tonnes in the first five months of 2025, the highest level of purchases for the period since 2019 and more than double the volume over the same period last year. Class one nickel is used in electroplating for consumer goods and aerospace as well as production of EV batteries.

However, consumption of class one nickel is only growing at 5-10 per cent per year, according to one leading industry analyst. The International Nickel Study Group has forecast total nickel demand in China will increase 4.9 per cent in 2025, including lesser grades such as nickel pig iron and other nickel products.

That mismatch “is a smoking gun for stockpiling”, the industry figure said.

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China is also stockpiling other industrial metals, according to a person close to a government trading partner. The strategic reserves administration indicated in a March notice that it was looking to buy nickel, lithium, cobalt and copper for the state stockpile, the person said.

Nickel prices have slumped about 40 per cent over the past two years due to rapid expansion of production in Indonesia, which holds to the world’s largest nickel reserves and controls two-thirds of global supply. Export controls on raw nickel in the past have hurt Chinese steel producers.

“Because the nickel price crashed last year, it was actually a good time to gear up the national reserve,” the person added.

Chinese purchases could even be providing a floor for nickel prices, which have also been hit by slowing demand for nickel-based EV batteries, the people familiar with the matter said.

Withdrawals of class one nickel from the global network of LME warehouses also indicate unusual trade patterns. LME data shows global buyers withdrew 78,798 tonnes between January and June 27, far higher than the 17,544 tonnes over the same period last year and outpacing even the 44,106 tonnes for all of 2024.

The LME said nickel trading volumes hit the highest quarterly level in the latest three months since the start of 2020.

“The idea of China stockpiling nickel is something we’ve been having lots of conversations about with market participants and clients,” said one market analyst.

China is probably buying class one nickel originating from Indonesia — whose supply into the LME has surged in the past year since the exchange allowed refined nickel produced by Indonesian and Chinese companies into its warehouses. China is also likely to be buying from domestic production, which is not reflected in the LME or import data, the people said.

China’s strategic reserves administration and state council did not respond to requests for comment.

Territory boosted by Chinese companies looking to raise money in currency pegged to US dollar

The number of companies applying for a listing in Hong Kong this year has hit an all-time high, as the territory tries to regain its status as a top financial hub and attract Chinese companies looking to expand abroad. 

A total of 208 companies applied for primary or secondary listings on the Hong Kong Exchange in the first six months of this year, beating the previous record of 189 companies in the same period in 2021, according to data from the exchange. Last month, 75 companies applied — a record number for a single month.

Companies have been attracted by Hong Kong’s soaring equity market, Chinese investors moving money into the territory and its relative openness to equity fundraising compared with the mainland. Chinese companies have also been attracted by the prospect of raising money in a currency pegged to the US dollar outside of China’s capital controls.

“You’ve got everyone coming all at once to the Hong Kong market,” said Kenneth Chow, co-head of equity capital markets in Asia for Citigroup. “You’ve had this confluence of international and Asian investors reallocating money to the Hong Kong market.”

The surge in listings has helped propel Hong Kong to the top of the capital markets rankings. The HKEX was the number one listing venue in the first half of this year with $13.9bn raised in initial public offerings and secondary listings, ahead of the Nasdaq with $9.2bn and the New York Stock Exchange on $7.8bn, according to data compiled by KPMG that excludes special purpose acquisition company deals.

The buoyant first half for the former British territory stands in contrast to the decline of the London market, which raised just £160mn in the same period — its worst half-year performance since 1995.

It also comes as the Hong Kong market posts its biggest first-half outperformance against Chinese stocks since 2008. That in part has been fuelled by Chinese investor money flowing into Hong Kong via the stock connect at record levels, and has whetted companies’ appetite to list in the territory. “The numbers are off the charts,” said Citi’s Chow.

The record Hong Kong pipeline includes about 47 companies that are already listed on the mainland, according to KPMG. The territory is now seen as the only realistic option for Chinese companies wanting overseas listings, given heightened US-China tensions and the threat of delistings.

These so-called A-to-H listings have been a driving force of Hong Kong capital markets activity since last year. These Chinese companies are seeking to raise money offshore to invest in overseas expansion as the domestic economy teeters on the edge of a deflationary spiral.

CATL, the world’s largest electric vehicle battery maker, in May launched a $5.3bn secondary A-to-H listing in Hong Kong, the largest of 2025. Others include pharma company Jiangsu Hengrui and, last year, white goods maker Midea.

“As we look into the pipeline of the deals, a lot of these [Chinese] companies have strong global presence,” said Johnson Chui, head of global issuer services at HKEX.

“The reasons for listing in Hong Kong could include brand building, raising international capital or offering Hong Kong stock as compensation to employees or for use as an acquisition currency as they think about options for potential growth,” he added.

The HKEX has taken steps to encourage more companies to list over the past few years, including establishing separate listing routes for specialist technology and biotech companies.

Hopes are rising that the listings boom could broaden out beyond Chinese companies. Thai coconut water maker IFBH raised more than $100mn in Hong Kong at the end of June.

“In terms of international issuers: the way we think about it is we are the listing venue of choice for Asia-focused companies,” said HKEX’s Chui. “We are definitely seeing an increased issuance and willingness for international companies to come to Hong Kong to list to access our global and broad investor base.”

While not every company that files paperwork follows through with a listing on the exchange, the current pipeline of companies includes at least one Apple supplier, Lens Technology, which makes glass for the iPhone manufacturer and is already listed on the mainland. It also includes the international arm of gold miner Zijin Mining and Chery Automobile, China’s largest auto exporter.

Fast-fashion giant Shein is also believed to be moving towards a Hong Kong listing over London or New York.

The success for Hong Kong comes as fundraising on the mainland Chinese market remains muted. Total funds raised from January to June have declined 5 per cent to Rmb53.7bn ($7.5bn) compared with a year ago, according to KPMG data, despite authorities telling some companies they could begin the process of listing.