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Cyprus Weighs Undersea Power Link To Lebanon As Grid And Geopolitics Complicate The Case

Cyprus and Lebanon have begun formal discussions on a planned undersea electricity interconnector that could allow Cyprus to export surplus renewable power to Lebanon, former Energy Minister George Papanastasiou said Wednesday.

Cable Could Help Manage Cyprus’ Renewable Power

Cyprus can generate more renewable electricity at peak times than its grid can absorb, forcing temporary curtailment to prevent overload, Papanastasiou told the Cyprus Mail. An export cable could provide an outlet for surplus generation while supplying Lebanon with additional electricity.

Battery storage would remain essential, however, because the cable alone could not stabilize variable renewable generation, Papanastasiou said.

Lebanon’s Grid Presents A Major Challenge

For Lebanon, the interconnector could improve security of supply and provide more stable electricity, provided Cyprus can maintain reliable generation and transmission.

Much of Lebanon’s power infrastructure remains severely damaged, with many areas relying on standalone systems and generators. That raises questions about whether the existing network could efficiently receive and distribute imported electricity.

Feasibility Study Comes First

The immediate priority is a feasibility study, which could be funded by the World Bank, Papanastasiou said. Any agreement would require approval from regulators in both countries, including the Cyprus Energy Regulatory Authority and Lebanon Electricity Regulatory Authority.

The proposed process would begin with a cost-benefit analysis, followed by a cross-border cost-allocation agreement if the project proves viable. Detailed design would come next.

Regional Politics Could Shape The Project

Turkey could also react to the proposed connection, Papanastasiou said, adding that he did not expect any objection to be based on international law.

The discussions follow a July agreement between Cyprus, Lebanon and the World Bank to prepare a preliminary feasibility study. Lebanon also signed a July 2 agreement with Syria aimed at establishing an electricity interconnection.

Cyprus is meanwhile pursuing the Great Sea Interconnector linking the island with Greece and Israel. A separate proposal backed by Turkey and the Turkish Cypriot authorities to connect Cyprus with Turkey is not included in the European Network of Transmission System Operators for Electricity (ENTSO-E) 10-year plan.

The Cyprus-Lebanon project will depend on the feasibility study, regulatory approvals, financing and the wider regional political environment.

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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