The collaboration was announced at a press event at the Baselworld watch show in Switzerland, with Tag Heuer CEO Jean-Claude Biver welcoming Android Wear director David Singleton and Intel's Michael Bell to the stage to discuss the project. While the announcement served as official confirmation that a luxury, Swiss "connected watch" is on the way from the company, we'll have to wait until the end of the year to get details on the device.

Powered by Intel, it's unclear whether the device will include features specific to the Tag Heuer product, or whether it will run the exact same version of Android Wear that we've seen on the Moto 360, Asus ZenWatch and others. To this point, Google has forbidden OEMs from "skinning" Wear with custom UIs (though they can throw in their own add-on apps).

While Tag Heuer was keen to point out that up to 80 percent of the components and labor for the watch will take place in Switzerland, the fact that the device's processor will be constructed outside of the country means that it will be not legally be able to carry the respected "Swiss made" label.

Eoin Treacy's view

The upcoming release of Apple’s next big product category has been touted as a major challenge for Switzerland’s watch sector because of the price tag attached to the Edition category; starting at $10000. It’s open to question whether the cool apps of the Apple Watch will supersede the craftsmanship and simple elegance of conventional timepieces but LVMH is taking no chances. What appears clear is that as competition increases there will be an increasing suite of products offering a range of functionality for considerably lower price points in addition to luxury offerings.

LVMH rallied spectacularly for nine consecutive weeks from early January. In the absence of a major upward dynamic tomorrow, this will its first down week since January, suggesting a peak of near-term significance has been reached. Increasing volatility in Euro cross rates also suggests some consolidation is likely. However a sustained move below the 200-day MA would be required to question medium-term scope for additional higher to lateral ranging.