A luxury hospitality subsidiary of LVMHMoet HennessyLouis Vuitton SE is blaming a train company majority-owned by global private equity firm Carlyle Group Inc for a deadly crash along a railway that connects to Peru’s iconic Machu Picchu ruins.
Belmond is a LVMH business – DR
The collision on Peru’s highest-profile railway, important to the country’s tourism industry, left one dead and dozens injured in the early afternoon of December 30.
In a letter to the office of the prime minister, LVMH’s Belmond Ltd said Carlyle’s Inca Rail had transited through an unauthorized part of the tracks, leading to a head-on crash between two trains that were going in opposite directions.
“The Inca Rail train did not stop at the assigned spot, moving through an unauthorized stretch,” said the letter signed by Belmond executive Laurent Carrasset, which was seen by Bloomberg. “Approximately 400 meters (437.4 yards) later,” the letter added, “it crashed.”
In the letter, Carrasset said the railway has single tracks and is managed with forced stops and occasional detours so trains going in opposite directions can alternate. At the time of the incident, Inca Rail’s train was meant to stop and wait for PeruRail to get into one of those detours, he added. But instead it continued on past the limit of its authorised track area.
Inca Rail said in a statement that jumping to conclusions before authorities have weighed in “may generate biased interpretations of facts that are still being verified.” The company added it is cooperating with authorities and that it stands in solidarity with those who were injured and with the one person who was killed, the driver of the Inca Rail train.
The railway between Cusco and Machu Picchu transports some 3 million passengers a year and Belmond is the dominant player through two joint ventures where the luxury company remains the operator. Through PeruRail it operates luxury trains while through Ferrocarril Transandino, Belmond also operates the railway concession over which both its trains and Inca Rail’s travel.
In 2024, PeruRail had a 74% market share in the Machu Picchu route, according to government statistics, while Inca Rail had the remainder. The crash also left some 2,000 passengers stranded, who had to wait about 12 hours to be evacuated, Carrasset’s letter said.
Machu Picchu is not accessible by road. Tourists normally take the train or hike, which can take days. Famed for its stonework and stunning views of the Andes Mountains, Machu Picchu is Peru’s most popular tourism destination among foreign tourists, many of whom travel there on luxury trains.
Grok, the AI assistant on the social network X, acknowledged on Friday the existence of “flaws” that allowed users to obtain sexual images involving minors or women, prompting protests around the world and the expansion of a judicial investigation in France.
Grok logo – AFP/Archives Lionel Bonaventure
“We have identified flaws in our safeguards and are urgently correcting them- child pornography is illegal and prohibited,” Grok’s X account wrote on Friday, in response to a user following several days of reports on the platform.
These reports concerned the actions of internet users who had submitted photos or videos of real people, including children and teenagers, to Grok and had the AI assistant edit them to depict those people fully or partially nude.
xAI, Elon Musk’s artificial intelligence company that develops Grok, has not publicly responded to this latest controversy surrounding its AI assistant, which has already been singled out in recent months for controversial statements on the war in Gaza, the India-Pakistan conflict, and for antisemitic remarks.
On Friday, questions sent by AFP to xAI received an automatic reply stating that “traditional media lie,” without further comment.
Its Grok bot, however, told the user that a company in the US “faces civil or criminal proceedings if it knowingly facilitates or fails to prevent the generation” of child pornographic content.
The creation and dissemination of child pornographic content are punishable in the US under Section 2256 of the US federal criminal code and the Enforce Act, a 2025 US law on digital crimes against minors.
In addition to minors, Grok’s flaws have also affected adult women who saw their photos published on social networks edited by Grok to undress them, at users’ request.
India’s Ministry of Electronics and Information Technology sent a formal notice to X on Friday, demanding a detailed report within 72 hours on the measures taken to remove the “obscene, nude, indecent, and sexually suggestive content” generated by Grok without the consent of the women affected, according to the letter published in the Indian press.
Investigation in Paris
In France, the Paris public prosecutor’s office on Friday extended an investigation opened since the summer into the social network X, to examine new accusations against Grok of generating and disseminating child pornographic content.
Shortly beforehand, three ministers and two members of parliament had announced they were taking legal action against the generation and distribution of fake sexual videos.
The initial investigation into X was opened in July following reports against the social network and its executives, who were accused of having skewed the platform’s algorithm for the purposes of foreign interference.
“The offence of creating a sexual montage of a person without their consent is punishable by two years’ imprisonment and €60,000,” the Paris public prosecutor’s office recalled, confirming a report by the Politico website.
On Friday, Macronist MP Éric Bothorel and Socialist MP Arthur Delaporte referred the matter to the courts, leading to a widening of the investigations.
Ministers Roland Lescure, Anne Le Hénanff, and Aurore Bergé also announced on Friday that they had reported “manifestly illicit content” to the public prosecutor, requesting “its immediate removal.”
“Over the past few days, the Grok AI has enabled the generation and distribution of sexist and sexual content, particularly in the form of fake videos (deepfakes), targeting people without their consent,” they said. A report has also been made to the Pharos platform by the government, they added.
Arcom, the French regulatory authority for audio-visual and digital communication, has also been notified, “for possible breaches by X of its obligations under the Digital Services Act,” the European regulation on digital services.
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New Look has filed its accounts for the year to the end of March and they show both challenges and progress. The company — or New Look Retailers Limited to give it its official name — is reportedly up for sale. So what condition would any buyer find it in?
Photo: Sandra Halliday
Bearing in mind that the latest year was the 52 weeks to late March 2025, rather than 53 weeks in the prior year, it saw a revenue fall that was about more than just the loss of an extra trading week.
The company said that total revenue dropped to £687.7 million from £735.4 million due to “store closures and tough trading conditions”.
The gross margin fell to 48.1% from 48.7% due to higher levels of discounting, the overall challenging market and unseasonal weather.
Meanwhile the company’s adjusted EBITDA fell to £18.47 million from £46.65 million due to that reduction in sales and the increased promotional activity.
The operating loss was £47.6 million after a profit of £17.4 million on the same basis is the year before. The statutory loss before tax widen to £77.2 million from a £3.6 million loss the previous year, partly due to those lower sales but also increased admin expenses. They included the cost of liquidation of the Irish business (which added up to more than £40 million) and increased staff costs. Finance expense was also higher for the business.
The net loss for the period was also £77.2 million after a £3.7 million loss in the prior year.
But the company got a £30 million cash injection from its shareholders to accelerate its digital transformation during the period.
Other upbeat news during the year was that the company remains a key part of the UK womenswear retail scene (it was number three overall for womenswear in the 18 to 44 age range both online and offline). It also maintained its number one market share position in women’s dresses, jeans and footwear.
And its total known customers grew by 15% to 10 million with its CRM customer base growing 32% to 4.5 million.
It ended the year with 337 stores compared to 356 in the previous period.
It has been putting a number of growth initiatives in place since the financial year ended and only last month named a new retail director responsible for the store estate and for implementing its omnichannel strategy across stores “to drive sales and enhance the customer experience”.
It also recently launched its first-ever loyalty programme, Club New Look; added all its major suppliers to the TrusTrace global platform to standardise its supply chain traceability and compliance data management; and got that big cash injection. The £30 million will be spent on its data, AI and e-commerce platforms “to enhance [the] seamless, personalised shopping experience for its 10 million customers”. It wants to double digital orders from £500 million to £1 billion by 2030 and grab a 10% online market share by FY28.
Global sportswear business New Balance has named Bollywood celebrity Janhvi Kapoor as its first Indian brand ambassador as it increases its focus on the fast-growing Indian market.
Janhvi Kapoor for New Balance – New Balance
“I’ve always admired New Balance for its dedication to innovation and celebrating individuality,” said Janhvi Kapoor in a press release. “It’s a brand that encourages you to own your story, and that’s something I deeply connect with. For me, fashion and fitness have always been about staying true to yourself- New Balance allows me to express that confidence and authenticity. I’m truly honoured to be part of the New Balance family and excited for this journey together.”
Active in both the Indian film and fashion industries, Kapoor is particularly influential amongst Indian youth. New Balance aims to harness her reputation for self-confidence and authenticity to further its own brand mission, in alignment with the spirit of modern India.
“We’re thrilled to welcome Janhvi to the New Balance family,” said New Balance’s country manager for India, Radeshwer Davar. “Our sponsorships are always co-authored- rooted in shared vision and mutual creativity- and Janhvi brings not just influence but genuine inspiration. Her passion, drive and individuality mirror the ethos that defines New Balance. She’s someone who continuously evolves, and together we’ll explore new dimensions of fashion and sports for our audiences in India.”
Established in Boston, US in 1906, New Balance employs 10,000 associates around the globe and reported worldwide sales of $7.8 billion in 2024. The brand retails in India from its brick-and-mortar store network and online with retailers including Ajio, Myntra, and Superkicks among others.
“India is one of the fast-growing markets across MEAI region for New Balance,” said Stuart Henwood, senior director of New Balance, Middle East, Africa, and India (MEAI). “Janhvi’s individuality and entrepreneurship spirit aligns to the values of the brand and our vision for India. She will play a key role in deepening our connection with consumers across the country and wider MEAI region. Her energy, style, and commitment to excellence reflect the very spirit of our brand, and we’re delighted to welcome Jahnvi to the New Balance family.”
Politics8 years ago