Freddie Mercury Memorabilia Auction Draws Enthusiastic Crowd at Sotheby’s

An auction of items once owned by British rock star Freddie Mercury turned electric on its opening day, taking in a higher-than-expected $15.4 million.

The sale, by Sotheby’s in London, included $2.2 million for the Yamaha baby grand on which he composed “Bohemian Rhapsody” and other hits. The auction’s second and third instalments happen today.

Mercury, the Queen frontman who died in 1991, was an eclectic collector of artwork, furniture, and feline-inspired décor, who had aspired to lead the Victorian life, “surrounded by exquisite clutter.” Lifelong friend Mary Austin said there was nothing Mercury loved more than an auction.

The live, black-tie event drew 2,000 bidders from 61 countries. The first item, a graffiti-covered door on which fans had written tributes, prompted a spontaneous chant of “We Will Rock You,” and sold for $521,000.

Mercury’s autographed handwritten lyrics to “Bohemian Rhapsody,” which he almost called “Mongolian Rhapsody,” sold for $1.8 million, while his “We Are the Champions” lyrics sold for $401,000.

Mercury’s stage costumes were a huge draw, including $801,500 for the jewelled crown and scarlet cloak he wore in his “Magic” tour, and $256,500 for his rainbow-coloured satin appliqué jacket.

A serpent-shaped silver bangle Mercury wore in the “Bohemian Rhapsody” video sold for $882,000, setting a record for the highest price ever paid at auction for a rock star’s jewellery, Sotheby’s said.

The final three online auctions start Sept. 11 and run through Sept. 13.

Austin plans to donate an undisclosed portion of the proceeds to charity, including $344,000 from the sale of a Cartier onyx-and-diamond ring given to Mercury by Elton John to the Elton John AIDS Foundation.

Tuesday’s retail sales report could be the scrap of evidence that tips the balance as Federal Reserve officials decide how much to cut interest rates on Wednesday.

It is practically a given that the central bank will reduce rates. Inflation has fallen to its lowest point since February 2021, giving the Fed more flexibility to focus on the second component of its dual mandate—achieving maximum employment. Although the labor market remains resilient, the most recent two jobs reports have been weaker than expected, putting some pressure on the Fed to loosen monetary policy.

The question now is by how much rates will fall—0.5 percentage point, or 0.25 point? The indications from interest-rate futures are split , recently favoring the more aggressive half-percentage-point decrease.

Andrew Hollenhorst, an economist at Citi , leans toward the likelihood the Fed is more cautious on Wednesday, cutting rates by 0.25 percentage points. But he notes that it it is a close call that depends on the dynamics of the bank’s rate-setting committee and the strength or weakness of Tuesday’s retail sales report.

A positive surprise would suggest that both consumers and the labor market remain resilient, paving the way for a more modest cut. If the report comes in well below expectations, however, Fed officials may grow concerned that a weaker labor market is weighing on consumer spending, which could lead to a bigger cut, Hollenhorst added.

Louis Navellier, founder and chief investment officer of the money-management firm Navellier agrees. “In theory, if the August retail sales report is horrible, then a 0.5% Fed key interest rate cut may be forthcoming on Wednesday,” he said.

Economists are expecting retail sales will decline by 0.2% in August from July, according to FactSet. They jumped by a surprising 1% in July .

Lower gasoline prices and car sales will likely drag the headline number lower. Indeed, stripping out car and gas sales, retail sales are projected to increase by about 0.3% month over month.

Yet there is growing concern that even excluding autos and gas sales, the sales figure will be soft. While spending was remarkably strong in July, the Fed’s latest Beige Book flagged that consumer spending ticked down in August, points out Bill Adams, chief economist for Comerica Bank . Many retailers, particularly those catering to lower-income shoppers, have warned that Americans are being cautious and exceedingly choosy about what they are buying and where.

The impact of the retail sales report will likely extend beyond the immediate rate cut. The insights it contains about U.S. consumers will also factor into the Fed’s quarterly update to its Summary of Economic Projections, containing officials’ latest forecasts for the U.S. economy, inflation, and near-term interest rates.

The so-called dot plot , which charts the individual interest-rate projections of the seven members of the Fed’s board of governors and the 12 regional Fed presidents, is always closely watched as investors try to chart the Fed’s future actions.

Hollenhorst believes the median dot showing where rates will be at the end of 2024 should show “at least” 0.75 percentage-point of cuts, factoring in 0.25 point at each meeting through the end of the year. But it is likely that officials will leave the door open for more cuts in case data on the job market or consumer spending sour faster than expected.