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Cyprus Chamber Calls For Competitiveness Review After BrainRocket Exit

The Cyprus Chamber of Commerce and Industry (Keve) has called for a review of Cyprus’ competitiveness following reports that technology company BrainRocket has closed its Limassol offices and offered relocation packages to most remaining employees.

BrainRocket Case Raises Wider Concerns

Keve said it would be premature to draw conclusions about BrainRocket’s decision without official information from the company. However, it said the reported withdrawal should prompt a broader discussion about Cyprus’ business environment.

BrainRocket reportedly closed its Limassol offices and other leased facilities, with remaining employees working remotely and most offered relocation packages to Spain or other countries. The move follows a restructuring that began in summer 2025, when the company shifted a substantial part of its operations to Valencia.

BrainRocket employed about 1,500 people in Cyprus at the time, with more than 1,000 affected by the restructuring.

Costs, Regulation And Talent Under Review

Keve said Cyprus still benefits from EU membership, a professional services sector, skilled workers, its location and a growing technology ecosystem. At the same time, it warned that these advantages cannot be taken for granted as competition for investment and talent increases.

The chamber called for greater attention to operating and energy costs, housing, bureaucracy, licensing and immigration procedures, infrastructure and access to specialized workers. It also stressed the importance of a stable and predictable tax and regulatory environment.

Keve said it wants to work with the government to assess the BrainRocket case and identify practical measures to strengthen Cyprus’ competitiveness.

Pillar Two Adds To Business Concerns

The discussion comes alongside wider concerns over Cyprus’ tax competitiveness. The American Chamber of Commerce in Cyprus has separately called for a balanced implementation of the OECD/G20 Pillar Two global minimum tax framework.

AmCham has warned that changes could affect future investment, employment and Cyprus’ position as an international business hub. It said some US-headquartered multinationals could reconsider expansion plans or choose other jurisdictions if Cyprus becomes less competitive, although the potential impact remains uncertain.

Keve stressed that one company’s decision does not determine the outlook for the Cypriot economy. It said such cases should nevertheless prompt timely assessment and action before competitiveness concerns become structural disadvantages.

LVMH Revenue Rises, But China Weakness Continues To Weigh On Luxury Giant

A Softer Quarter Exposes The Limits Of Luxury’s Recovery

LVMH, the world’s largest luxury group and parent of Louis Vuitton, Dior, Celine and Hennessy, reported revenue of €18.5 billion in the three months to the end of September, underscoring both the scale of its business and the pressure building across parts of the luxury market.

The company’s revenue rose 1.2% year on year in the third quarter, following a 0.1% increase in the second quarter and a 5.9% decline in the first. The trajectory points to stabilization, but not yet to a convincing rebound.

Organic Growth Misses Expectations

Organic sales growth, which strips out currency effects and portfolio changes, slowed to 1% in the third quarter from 3% in the previous quarter. That result fell short of market expectations and reinforced concerns that the luxury cycle remains uneven.

For the first nine months of the year, LVMH generated sales of €57.1 billion, with organic growth of 2%.

In its statement, the company highlighted the breadth of its portfolio, saying that diversification continues to provide resilience in an uncertain geopolitical and economic environment. That remains one of LVMH’s defining strengths: when one category weakens, another can help offset the downturn.

China Remains The Key Pressure Point

LVMH said sales performed well in the United States, Europe and Japan, but conditions in China remained less favorable. That matters because the country has long been one of the most important growth engines for global luxury brands.

The fashion and leather goods division, LVMH’s most closely watched unit, saw organic sales fall 5% as weaker demand in China weighed on performance. Deutsche Bank said the decline was steeper than the roughly 2% drop expected by analysts.

The segment had delivered its first organic sales gain in two years in the previous quarter, making the latest retreat a notable setback.

Brand Equity Faces A Test In China

The quarter also highlighted the reputational risks facing global brands in China. Louis Vuitton drew criticism after suing local tea company Molly Tea over logo copying. Although the company won the case, the dispute sparked social media backlash and boycott calls, adding another layer of pressure to an already fragile environment.

For a company built on scarcity, aspiration and brand discipline, perception is an asset as valuable as inventory. In a market as digitally connected as China, that asset can shift quickly.

Mixed Performance Across The Portfolio

Not every division weakened. LVMH’s selective retailing business, which includes Sephora, posted an 8% organic sales increase. Watches and jewellery, along with wines and spirits, both recorded 6% organic gains.

That broad mix is precisely what has historically given LVMH an advantage over rivals: it can absorb softness in one category without relying on a single growth driver.

Analysts See A Longer Recovery Ahead

Deutsche Bank analysts said the results could lead to further cuts in earnings forecasts for the second half of 2026 and 2027. They added that it is difficult to see what could improve investor sentiment in the near term.

Still, the bank framed the weakness as cyclical rather than structural. In its view, recovery is taking longer because Chinese demand remains subdued, but the problem does not appear to reflect a permanent deterioration in the brand franchise. Analysts said ongoing brand initiatives are beginning to show results, though improvements are likely to remain gradual.

Investor Pressure Continues To Mount

LVMH’s share price has fallen nearly 40% since the start of the year. In September, L’Oréal overtook the group as France’s most valuable listed company, a symbolic shift that captures how sharply sentiment has changed.

Shares in LVMH were down more than 1.6% in Paris around 10 a.m. CEST following the release.

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