EV Trade War Could Spread to Luxury Cars

Europe’s politicians have no easy options for dealing with Chinese electric vehicles.

Slap a 100% tariff on them, as President Biden did last month , and China can easily retaliate against the more than 300,000 luxury cars it gets annually from the European Union. Let Chinese EVs into the EU with the current 10% tariff, though, and Chinese companies have an open road to take market share, given impressive technology and a roughly 30% cost advantage.

This week, the European Commission is expected to announce the results of a nine-month investigation into Chinese EV subsidies . Its most likely course of action is a cautious middle ground—a 25% to 30% tariff that would make European EVs broadly competitive with lower-cost Chinese imports. This could still trigger retaliation, but the EU’s executive body has to do something to protect an economically and strategically important industry.

This political reality only looms larger after this past weekend’s elections for the European Parliament, which rewarded right-wing populist parties in France and Germany. In the coming months a new European Commission will review the policy response to the EV investigation. Arguments for going easy on cheap Chinese EVs , because they help Europe’s climate goals, will presumably take a back seat to economic protectionism.

Just how much market share Chinese cars might take in Europe, at least in the short term, is debatable. After years of modest gains, they accounted for roughly one in 10 new EVs sold in Western Europe in the third quarter of 2023, according to Schmidt Automotive Research. But their share fell back in the final three months of the year, when France excluded China-made models from its subsidy program. High discounts on Chinese brands also point to stalling progress.

Many European consumers might not be ready for proudly Chinese brands such as BYD. The bestselling “Chinese” brand in Europe by far is MG, which is historically British but now belongs to China’s SAIC. Even it wasn’t one of April’s 10 bestselling EV models in the EU, according to data provider Jato Dynamics.

Many more Europeans would no doubt be converted to Chinese brands by the rock-bottom prices advertised domestically in China, which is in the throes of a vicious price war. But BYD launched its vehicles last year at surprisingly high prices, perhaps mindful of the EU’s investigation as well as the potential to juice its margins to compensate for a tough home market.

Still, the long-term threat posed by Chinese-made EVs in Europe is clear, and the EU won’t take any chances. One consequence of higher tariffs will be more local production. BYD is already building a factory in Hungary, while Volvo Cars will start producing its new EX30 in Belgium next year, rather than shipping it to Europe from China as it currently does. Tesla , which makes its Model 3 for Europe in its factory near Shanghai, will probably need to follow suit.

Other consequences will depend on China’s response. The China Chamber of Commerce to the EU said last month that Beijing was considering a 25% tax on imported cars with large engines. China’s current tariff on vehicle imports from the EU is 15%. This move would hit Porsche in particular as it makes about a quarter of its revenue in China and produces all its cars in Germany.

The irony is that investors previously assumed luxury cars were relatively insulated from the threat of Chinese EV imports. Last year, the market was instead worried about the competitive challenge to mass-market manufacturers such as France’s Renault . As politicians in Paris and Brussels responded, concerns shifted, contributing to a gaping divide in stock-market performance: Porsche’s stock is down 37% over one year while Renault’s is up 55%.

In the end, some kind of truce that keeps trade flowing is likely. The EU is more dependent on exports to China than the U.S., ruling out the kind of isolationism Washington is moving toward. That might be a reason to worry more about Renault again, though the French company appears to be making progress in cutting EV costs.

This points to the only sustainable European response to Chinese EVs: matching their technology and cost structure, at least as far as local differences allow. Higher tariffs can only buy a little time.

To Find Winning Stocks, Investors Often Focus on the Laggards. They Shouldn’t.

A lot of investors get stock-picking wrong before they even get started: Instead of targeting the top-performing stocks in the market, they focus on the laggards—widely known companies that look as if they are on sale after a period of stock-price weakness.

But these weak performers usually are going down for good reasons, such as for deteriorating sales and earnings, market-share losses or mutual-fund managers who are unwinding positions.

Decades of Investor’s Business Daily research shows these aren’t the stocks that tend to become stock-market leaders. The stocks that reward investors with handsome gains for months or years are more often  already  the strongest price performers, usually because of outstanding earnings and sales growth and increasing fund ownership.

Of course, many investors already chase performance and pour money into winning stocks. So how can a discerning investor find the winning stocks that have more room to run?

Enter “relative strength”—the notion that strength begets more strength. Relative strength measures stocks’ recent performance relative to the overall market. Investing in stocks with high relative strength means going with the winners, rather than picking stocks in hopes of a rebound. Why bet on a last-place team when you can wager on the leader?

One of the easiest ways to identify the strongest price performers is with IBD’s Relative Strength Rating. Ranked on a scale of 1-99, a stock with an RS rating of 99 has outperformed 99% of all stocks based on 12-month price performance.

How to use the metric

To capitalize on relative strength, an investor’s search should be focused on stocks with RS ratings of at least 80.

But beware: While the goal is to buy stocks that are performing better than the overall market, stocks with the highest RS ratings aren’t  always  the best to buy. No doubt, some stocks extend rallies for years. But others will be too far into their price run-up and ready to start a longer-term price decline.

Thus, there is a limit to chasing performance. To avoid this pitfall, investors should focus on stocks that have strong relative strength but have seen a moderate price decline and are just coming out of weeks or months of trading within a limited range. This range will vary by stock, but IBD research shows that most good trading patterns can show declines of up to one-third.

Here, a relative strength line on a chart may be helpful for confirming an RS rating’s buy signal. Offered on some stock-charting tools, including IBD’s, the line is a way to visualize relative strength by comparing a stock’s price performance relative to the movement of the S&P 500 or other benchmark.

When the line is sloping upward, it means the stock is outperforming the benchmark. When it is sloping downward, the stock is lagging behind the benchmark. One reason the RS line is helpful is that the line can rise even when a stock price is falling, meaning its value is falling at a slower pace than the benchmark.

A case study

The value of relative strength could be seen in Google parent Alphabet in January 2020, when its RS rating was 89 before it started a 10-month run when the stock rose 64%. Meta Platforms ’ RS rating was 96 before the Facebook parent hit new highs in March 2023 and ran up 65% in four months. Abercrombie & Fitch , one of 2023’s best-performing stocks, had a 94 rating before it soared 342% in nine months starting in June 2023.

Those stocks weren’t flukes. In a study of the biggest stock-market winners from the early 1950s through 2008, the average RS rating of the best performers before they began their major price runs was 87.

To see relative strength in action, consider Nvidia . The chip stock was an established leader, having shot up 365% from its October 2022 low to its high of $504.48 in late August 2023.

But then it spent the next four months rangebound—giving up some ground, then gaining some back. Through this period, shares held between $392.30 and the August peak, declining no more than 22% from top to bottom.

On Jan. 8, Nvidia broke out of its trading range to new highs. The previous session, Nvidia’s RS rating was 97. And that week, the stock’s relative strength line hit new highs. The catalyst: Investors cheered the company’s update on its latest advancements in artificial intelligence.

Nvidia then rose 16% on Feb. 22 after the company said earnings for the January-ended quarter soared 486% year over year to $5.16 a share. Revenue more than tripled to $22.1 billion. It also significantly raised its earnings and revenue guidance for the quarter that was to end in April. In all, Nvidia climbed 89% from Jan. 5 to its March 7 close.

And the stock has continued to run up, surging past $1,000 a share in late May after the company exceeded that guidance for the April-ended quarter and delivered record revenue of $26 billion and record net profit of $14.88 billion.

Ken Shreve  is a senior markets writer at Investor’s Business Daily. Follow him on X  @IBD_KShreve  for more stock-market analysis and insights, or contact him at  ken.shreve@investors.com .

How to Pack Like a Pro: The top 8 packing tips for seasoned travellers

We’re half way through 2024, and it is about that time where people start feeling the itch to book a spontaneous trip abroad. Perhaps you have your heart set on Rome, the eternal city, to take in the sights. Or maybe it’s a trip to the French Riviera to soak up the sun and stroll the promenade in Nice. Wherever you’re wanderlust beckons, it’s clear that Australia’s aviation sector has well and truly recovered from the COVID-19 pandemic, with travel across the board returning to pre-pandemic levels, according to the ACCC’s latest report.

So, if travelling is on your agenda—be it domestic or long-haul—for the remainder of 2024, there’s one underrated, unspoken skill you’ll want to have covered before jetting off: how to pack like a pro.

We’ve taken the liberty of speaking to professionals in the travel sector to unpack all there is to know about being organised ahead of your next big trip, and in the process, deciphering the age-old nuisance that is correctly packing for a holiday.

Ashim D’Silva / Unsplash

1. Make a list 

Whether you’re the organised type or not, curating a holiday “packing list” will not only save you time when it comes down to packing your suitcase, but the stress that comes with doing so.

“Always write a list before you start packing,” said Sarah Built, Etihad Airways Vice President of Sales, Australasia.

“Trust me, it’ll save you the headache of wondering if you’ve missed something, or worse, realising you have at your destination. It also helps to avoid overpacking, too!”

However, be sure to be ruthless when editing your packing list; you can’t bring everything with you, after all.

Marissa Grootes / Unsplash


2. Pack for the season

It’s always wise to pack for the season. If you’re heading into warmer climates, don’t forget to pack breathable clothing. That could include sweat-wicking athleisure, as well as clothing made of natural fibres like cotton and linen. But consider how the temperature swings come early morning, or late at night. The same goes for the winter season – you’d be surprised how many people forget to pack thermals.

“Before you start packing, check the weather forecast for your destination, as this will help you pack smart,” says July founder, Athan Didaskalou. “And if the weather has some hot and cold moments, opt for natural fibres like merino wool – they’re excellent for layering and don’t get smelly as quickly. Choose versatile footwear and pack a cap for sun protection, warmth and bad hair days.”

The last thing you want to do is have to make an unplanned trip to the shops to buy clothing (possibly at inflated “tourist” pricing) that you may not have room for.

Angelo Pantazis / Unsplash


3. Capsule clothing can save space

Off the back of tip number two, packing for the right climate, incorporating capsule clothing is a great way to save space in your luggage — and ensure you get the most out of the clothes you take with you. The notion of a capsule wardrobe relies on having classic pieces that are interchangeable to create different looks without the need to take everything with you.

Think about staple clothing items that can be dressed up or down; for men heading to a warmer climate, double down on polo shirts that can pair over swim shorts, but look equally appropriate teamed with chino pants for the evening. For women, you can never go wrong with a classic wrap dress that can be adjusted to the occasion with well chosen accessories like scarves or costume jewellery that pack light and save on space.

You can also apply the 5-4-3-2-1 method, including five tops, four bottoms, three accessories, two shoes (a practical pair and a dressier pair), and one swimming costume.

“I’d also recommend packing clothing with universal colours,” said Ms Built. “That way, you can mix and match your outfits to last longer.”


4. Packing cubes will come in handy

Last summer, I witnessed my partner—who is otherwise a messy, free spirited traveller—become a master of packing seemingly overnight; it’s as if she became the Marie Kondo of suitcase packing. I soon discovered her secret: packing cubes.

“Packing cubes can be a lifesaver in ensuring your suitcase stays organised and repacking is easy,” said Mr Didaskalou.

Packing cubes are now available to buy everywhere from Big W to Antler, and not only save space in your suitcase, but will ensure a seamless, organised experience when travelling.

“Packing cubes are your best friend to save space, particularly for a long trip,” added Ms. Built. “I also find them useful to plan my outfits and keep everything together — it saves me rummaging through my suitcase later.”

Vicky Wasik


5. Bulk up

If you’re not one of the lucky few that managed to snag a first or business class ticket, space—and the weight—of your suitcase should become a priority. To negate going over your weight limit and paying unnecessary add ons for luggage, consider wearing or carrying your bulkiest items with you, such as cumbersome shoes or a large coat. Keep in mind this could slow down your progress through airport security, so opt for zippers over laces for shoes and tied belts over buttons for coats where possible.

Getty

6. Keep your liquids and laptops at the top 

This is a no brainer, but to save you a world of hassle upon arrival at your lovely destination, keep all electronics like a laptop and your toiletries separate, and near the top of your bag or luggage. Not only will this negate any unwanted damage should your cologne or toothpaste wreak havoc, but if you’re called upon to remove such items during security screening, you don’t want to be that person fishing around and wasting everybody’s time.

“I always recommend decanting toiletries into smaller containers,” said Mr Didaskalou. “It not only saves space, but also helps you comply with airline regulations.”

Check with your carrier as well as the destination airport what the requirements are before you leave.

7. Minimise your footwear inclusions 

Sneaker-head or not, you really don’t need to bring both the adidas Sambas and a pair of Air Jordans. Be ruthless when it comes to packing footwear for your next holiday, and opt for shoes that are multi-functional. This will be a key factor in saving space—and weight—in your luggage.

“When it comes to shoes, I always pack a universal heel, a luxe sneaker, and a dressy pair of flats,” said Ms Built. “That way you’re covered for every occasion while still looking photo-ready on holiday.”

July


8. Above all, choose the right luggage

While all seven tips before you are practical in theory, they won’t come at all in handy should you not have the right type of luggage for travelling. It’s 2024; it’s time to bin your canvas two-wheel suitcase from high school and opt for modern day luggage that will have you saving on space, weight, and above all else, will ensure a smooth transit to your holiday destination that awaits.

“If you’re someone who loves to shop, opt for an expandable suitcase,” said Mr Didaskalou. “This will help you not pack too much on the way over, but give you that extra space to expand when you need it.”

July

The top 10 Australian locations at highest flood and bushfire risk

More extreme weather events are affecting property values and home insurance costs, with a new report highlighting the impact of bushfire, riverine flooding and coastal erosion risk on homes and the need for buyers to assess disaster risk in their purchasing processes.

The 2024 Perils Report from Domain Research has found there is a direct relationship between the value of a home and its susceptibility to natural disasters. It revealed that 5.6 million Australian homes are at risk of bushfire — almost half of the entire residential housing stock. More than 32,000 homes, or 0.3 percent of stock, have high bushfire risk ratings. The researchers estimate that a home’s value decreases by 2 percent with every increase in its bushfire rating.

The report also found that 953,000 homes, or 8.1 percent of housing stock, face flood risk. Almost 141,000 homes have a high risk, and for every percentage point increase in the risk of a 50-centimetre flood, a property’s value drops by 0.8 percent. About 160,000 homes are within 150 metres of the coastline, and about one in 10 are at risk of erosion. However, the report finds there is no significant price impact given buyers place a high priority on waterside locations and views.

“This report is almost like a snapshot in time, looking at what is that landscape currently today, but we know that these natural disasters are escalating because of climate change,” said Domain chief of research and economics, Dr Nicola Powell. “The impacts in the future could [be] greater, impacting more homes and communities.”

Domain Research said evaluating a property’s risk is increasingly important for buyers. Home purchasers can access information from local councils and state governments, and some information may be included in the contract of sale. Buyers can also pay for a risk report to be done.

A recent report by the National Housing Supply and Affordability Council described climate change as an ‘emerging trend’ affecting values and insurance costs. “The price differential between flood-affected and non-flood affected homes has been estimated to be up to 35 percent a year after a flooding event,” the report said. “Furthermore, the RBA estimates around 7.5 percent of properties are in areas that could experience price falls of at least 5 percent due to climate change by 2050.”

The report said more than one million households are struggling to afford home insurance today, and more homes are uninsured as a result. The Insurance Council of Australia (ICA) says premiums are rising due to the impact of more severe natural disasters and a significant increase in construction costs that have gone well above the rate of inflation, making repairs more expensive.

The ICA said four declared insurance events in 2022 alone resulted in 302,000 claims costing $7.28 billion in insured losses. Six billion was from a single event – the Northern NSW and South-East Queensland floods – which was the second costliest insured event in the world that year and the costliest insured event in Australia’s history.

ICA CEO Andrew Hall says governments at all levels need to invest in more protection measures to mitigate the impact of extreme weather, thereby helping to keep insurance premiums lower.

“Governments must also amend land use planning legislation to include a mandatory requirement for planning approvals to consider property and community resilience to extreme weather, and improve building codes so future homes are made more resilient,” Mr Hall said.

 

Top 10 areas with the highest chance of a 50cm flood per year

 

1          Ballina NSW 3.9 percent

2          Tweed Heads South NSW 3.7 percent

3          Grafton NSW 2.7 percent

4          Coonamble NSW 2.3 percent

5          Tweed Heads NSW 2.2 percent

6          York-Beverley WA 1.9 percent

7          Maclean-Yamba-Iluka NSW 1.9 percent

8          Lismore NSW 1.8 percent

9          Tingalpa QLD 1.7 percent

10        Far South West QLD 1.6 percent

 

Source: Domain Research

 

Top 10 areas with the highest bushfire risk (out of 10) per year

 

1          Upper Yarra Valley VIC 7.7

2          Ashendon-Lesley WA 5.5

3          Mount Dandenong-Olinda VIC 5.4

4          Ettrema-Sassafras-Budawang NSW 4.6

5          Mount Wellington TAS 4.3

6          Glen Forrest-Darlington WA 4.0

7          Bilpin-Colo-St Albans NSW 3.9

8          Calga-Kulnura NSW 3.9

9          Deua-Wadbilliga NSW 3.9

10        Belgrave-Selby VIC 3.8

 

Source: Domain Research

I.M. Pei’s Son Speaks of His Father’s Legacy of Creating ‘Places for People’ Ahead of a Retrospective in Hong Kong

I.M. Pei was the confident visionary behind such transformative structures as the Bank of China Tower in Hong Kong and the Louvre Pyramid in Paris, but he was also humble, and for years resisted a retrospective of his work.

Pei, a Chinese-American architect who died in 2019 at 102 , would always protest any suggestion of a major exhibition, saying, “why me,” noting, too, that he was still actively at work, recalls his youngest son, Li Chung “Sandi” Pei. A decade ago, when Pei was in his mid-to-late 90s, he relented, finally telling Aric Chen, a curator at the M+ museum in Hong Kong, “all right, if you want to do it, go ahead,” Sandi says.

A sweeping retrospective, “I.M. Pei: Life Is Architecture,” will open June 29 at M+ in the city’s West Kowloon Cultural District. The exhibition of more than 300 objects, including drawings, architectural models, photographs, films, and other archival documents, will feature Pei’s influential structures, but in dialogue with his “social, cultural, and biographical trajectories, showing architecture and life to be inseparable,” the museum said in a news release.

As a Chinese citizen who moved to the U.S. in 1935 to learn architecture, Pei—whose full first name was Ieoh Ming—brought a unique cultural perspective to his work.

“His life is what’s really interesting and separates him from many other architects,” Sandi says. “He brought with him so many sensibilities, cultural connections to China, and yet he was a man of America, the West.”

Facade of the Bank of China Tower in Hong Kong in a photograph commissioned by M+ in 2021.
© South Ho Siu Nam

Pei’s architectural work was significant particularly because of its emphasis on cultural institutions—from the East Building of the National Gallery of Art in Washington, D.C., to the Museum of Islamic Art in Doha, Qatar—“buildings that have a major impact in their communities,” Sandi says. But he also did several urban redevelopment projects, including Kips Bay Towers in Manhattan and Society Hill in Philadelphia.

“These are all places for people,” Sandi says. “He believed in the importance of architecture as a way to bring and celebrate life. Whether it was a housing development or museum or a tall building or whatever—he really felt a responsibility to try to bring something to wherever he was working that would uplift people.”

A critical juncture in Pei’s career was 1948, when he was recruited from the Harvard Graduate School of Design (where he received a master’s degree in architecture) by New York real estate developer William Zeckendorf.

With Zeckendorf, Pei traveled across the country, meeting politicians and other “movers and shakers” from Denver and Los Angeles, to Philadelphia, Washington D.C., Boston, and New York. “He became very adept at working in that environment, where you had to know how to persuade people,” Sandi says.

During the seven-year period Pei worked with Zeckendorf, the developer fostered the growth of his architecture practice, supporting an office that included urban, industrial, graphic, and interior designers, in addition to architects and other specialists, Sandi says.

When Pei started his own practice in 1955, “he had this wealth of a firm that could do anything almost anywhere,” Sandi says. “It was an incredible springboard for what became his own practice, which had no parallel in the profession.”

According to Sandi, Chinese culture, traditions, and art were inherent to his father’s life as he grew up, and “he brought that sensibility when he came into America and it always influenced his work.” This largely showed up in the way he thought of architecture as a “play of solids and voids,” or buildings and landscape.

“He always felt that they worked together in tandem—you can’t separate one from the other—and both of them are influenced by the play of light,” Sandi says.

View of the National Center for Atmospheric Research, on the mesa, in a photograph commissioned by M+ in 2021.
© Naho Kubota

Pei also often said that “architecture follows art,” and was particularly influenced by cubism, an artistic movement exploring time and space that was practiced in the early 20th century by Pablo Picasso, Georges Braque, and the sculptor Jacques Lipchitz, among others. This influence is apparent in the laboratory at the National Center for Atmospheric Research in Boulder, Colo., and at the Everson Museum of Art in Syracuse, N.Y. “Those two buildings, if you look at them, have a play of solid and void, which are very cubistic,” Sandi says.

Yet Sandi argues that his father didn’t have a specific architectural style. Geometry may have been a consistent feature to his work, but his projects always were designed in response to their intended site. The resulting structure emerged as almost inevitable, he says. “It just was the right solution.”

Pei also intended his buildings “not only to be themselves a magnet for life,” but also to influence the area where they existed. “He never felt that a building stood alone,” Sandi says. “Urban design, urban planning, was a very important part of his approach to architecture, always.”

After he closed his own firm to supposedly “retire” in the early 1990s, Pei worked alongside Sandi and his older brother, Chien Chung (Didi) Pei, who died late last year, at PEI Architects, formerly Pei Partnership Architects. Pei would work on his own projects, with their assistance, and would guide his sons, too. The firm had substantial involvement in the Museum of Islamic Art, among other initiatives, for instance, Sandi says.

Working with his father was fun, he says. In starting a project, Pei was often deliberately vague about his intentions. The structure would coalesce “through a process of dialogue and sketches and sometimes just having lunch over a bottle of wine,” Sandi says. “He was able to draw from each of us who was working on the project our best efforts to help to guide [it] to some kind of form.”

The M+ retrospective, which will run through Jan. 5, is divided into six areas of focus, from Pei’s upbringing and education through to his work in real estate and urban redevelopment, art and civic projects, to how he reinterpreted history through design.

Sandi, who will participate in a free public discussion moderated by exhibition co-curator Shirley Surya on the day it opens, is interested “in the opportunity to look at my father anew and to see his work in a different light now that it’s over, his last buildings are complete. You can take a full assessment of his career.”

And, he says, “I’m excited for other people to become familiar with his life.”

‘Lighting Is as Important as the Architecture,’ Says Designer Nicci Kavals

One of the leading luminaries in the world of lighting design, Nicci Kavals actually started her career as a chef, relocating to cook at a restaurant on the Greek island of Naxos, before she moved to Paris to work as a food stylist for the magazine Votre Beauté.

“My experiences as a food stylist taught me the process of reduction and simplification,” she says.  “What remains—whether on the plate or more broadly in design—needs to have purpose and relevance, even if its significance is hard to articulate.”

Kavals eventually returned to her native Australia, working as Melbourne editor at Vogue Entertaining + Travel magazine, and then as a homewares and hard goods product designer for the lifestyle brand Country Road, before she ultimately established Articolo Architectural Lighting in Melbourne just over a decade ago.

“I felt there was a gap in the market for superbly designed artisanal lighting that was unique, sculptural, detailed yet timeless,” she says.

Now, with showrooms in Melbourne and New York City, Articolo has designed artisanal lighting for Nobu Restaurants, the Museum of Applied Arts in Budapest, the Tiffany & Co. flagship store on Fifth Avenue, and residential clients including Robert Downey Jr.

The company relies on artisanal workmanship, Kavals says. “Each of our pieces embodies their expertise.”

Articolo has steadily expanded its global presence, having made its European debut at Salone del Mobile Milan in 2019. The company reached a pair of milestones last year, as Kavals unveiled a new identity and rebranded the company as Articolo Studios—reflecting its evolution into a luxury lifestyle brand—while opening its North American flagship showroom in an elegant, gallery-like space with soaring ceilings across from New York’s Madison Square Park.

Articolo Studios’ New York showroom
Eric Petschec

As her designs evolve, Kavals acknowledges the need to stay ahead of ever-advancing technologies. Last year, Articolo launched its first tuneable white light source known to restore the body’s circadian rhythm in a decorative fitting.

In April during Milan Design Week, the company introduced Articolo Home, a capsule collection of small-scale furniture pieces. And last month, the company launched rechargeable lighting.

Kavals, 68, recently spoke with Penta from her home in Melbourne where she lives  with husband, Vic Kavals, also co-founder and director of Articolo Studios.

Penta : Among design elements, how important is lighting?

Nicci Kavals: It can change our perspective on how we view and appreciate the space around us—lighting is as important as the architecture, the interior design and finishes and the furniture selection. Lighting provides the soul to a space. It often provides a moment of awe, where you are moved by something beautiful.

How much of a difference does bespoke decorative lighting make?

When each fixture is purposely selected to enhance the space with shadow play of light, there is a sense of atmosphere and soul—the animation of light dances within the space, patterns and striations casting movement, layering, and providing depth. I love the notion of moving through a space and happening upon a beautiful fixture or light, which is more like artwork and makes you stop, pause, and exhale, where you take in that moment of beauty and then move on.

How do you describe your process?

I have a huge library or body of designs that I am continuously working through and refining. I tend to mull over them endlessly to perfect them before being ready to take them to market. We like to explore and experiment with new materials. … It’s important that each design reflects the many hands that have produced it, celebrating the craftsmen and -women whose skill and talent I deeply respect. It’s the human element that in many ways we’re losing through mass production—I strongly believe there’s no substitute for the handmade.

Where do you look for inspiration?

To express myself creatively through the play of light and shade is a genuine gift. I find inspiration everywhere I go; from the washed, bleached colors of Marrakech and Mexico to the architectural detail found in minimalist Japan. I love to explore the local crafts, and pore over the work of local artisans of different lands. The Japanese are exceptionally talented in porcelain, whilst the Mexicans are experts in beading, embroidery, and silver.

How would you describe your progression from an Australian firm to a global one? 

At the time of starting Articolo in 2012, designing and manufacturing lighting in Australia was quite uncommon, with most of the high-end decorative lighting coming out of Europe and the U.S. In the beginning, my knowledge of lighting was minimal—which in hindsight, was perhaps a blessing as I may never have embarked on this journey had I been aware of the challenges. As I don’t come from a lighting background, I’ve found that I’m not restricted by a traditional approach. As we expanded globally, we had the option to expand into Europe or the U.S. I have always been drawn to a European design sensibility that celebrates craftsmanship, timelessness, and the artisanal. However, knowing that the U.S. was the harder option, we went in that direction as we never make the easy decision and have challenged ourselves at every turn to be better and improve constantly. This was a completely new ball game for us—certification standards to comply are vastly different in the U.S. than the rest of the world.

What does the future hold for your field?

Embracing cutting-edge technologies can elevate the functionality and aesthetics of luxury lighting. Integration with smart-home systems, customisable lighting experiences, and the use of innovative materials and finishes can provide clients with a truly unique and immersive experience. I expect to see a surge in demand for intelligent lighting solutions, and I am optimistic about the potential for transformative advancements in this area. While technology is crucial, I also value the artistry and craftsmanship that goes into creating luxury lighting pieces. I hope to see a continued appreciation for handmade, artisanal designs that showcase the skills of talented craftsmen. Balancing traditional craftsmanship with modern design sensibilities can result in timeless pieces that stand out in the market.

This interview has been edited for length and clarity.

Louis Vuitton Unveils Its Most Extravagant High-Jewellery Collection Ahead of Olympics

As the world turns its eyes to Paris for the start of the Summer Olympics next month, Louis Vuitton pulled out all the stops for its largest, most extravagant, and expensive high-jewellery collection with the title Awakened Hands, Awakened Minds.

Making its debut in St. Tropez on Wednesday night, the collection will encompass 13 themes and 220 pieces, some of which have yet to be unveiled. Of the 100 unique pieces that were exhibited as the first chapter, one overarching theme is clear: French pride and the celebration of the remarkably transformative period in 19th-century France, which witnessed an explosion of French influence and inventiveness.

“France in the 19th century was a phenomenal time of incredible change, and when Paris really became the centre of the world,” says Francesca Amfitheatrof, artistic director for watches and jewellery, in a news release. “The design language of Awakened Hands, Awakened Minds reflects that—all its intricacies, complications, and innovations—turned into incredible jewels.”

The masterpiece of the entire collection is the Cœur de Paris.
Courtesy of Louis Vuitton

The collection explores a journey through that century, beginning with the end of royal court rule, which resulted in a surge of creativity and talent as France’s ateliers and master craftsmen explored and experimented without limits. Among those influenced by this vibrant zeitgeist was a 16-year-old Louis Vuitton, who arrived in Paris in 1837. The apprentice developed his own unique trunkmaking métier, devising a flat and stackable trunk specifically designed for travel.

“Craftsmanship becomes the currency of this country,” Amfitheatrof said. “It is the birth of France’s Art de Vivre —and the birth of what we know as luxury today.”

The collection’s Splendeur suite took inspiration from an imperial bed embellished with low-relief woodwork in lace-like floral patterns. But the luxury brand is looking to compete for consumers with more than just aesthetics: The jewels feature more than 110 perfectly matched rubies from Mozambique, all fully traceable through blockchain technology, making Louis Vuitton the first to offer traceability of coloured stones.

Louis Vuitton’s iconic LV Monogram Flower is the chosen theme. The symbol was designed by Louis Vuitton’s son Georges in 1896 in memory of his late father. The flower is portrayed in gold and diamonds with a large centre ruby in earrings that complement a high collar, transformable necklace set with 52 rubies framed with an intricate, woven mesh of carved gold flowers. Among the collection’s most complex creations, the Splendeur necklace required the workmanship of 17 setters and 30 jewellers, who spent a total of 3,217 hours on its creation.

Louis Vuitton’s passion for travel is explored in the Vision necklace, which plays on the rivets of Louis Vuitton trunks. Crafted in platinum, yellow gold, diamonds, and yellow sapphires, the disruptive design interlaces V-shaped structures, highlighted with two octagonal-cut yellow sapphires measuring 13.47 carats and 11.79 carats. The piece occupied five jewellers, who mounted and set the necklace section by section over the course of 2,504 hours.

The collection’s Splendeur suite took inspiration from an imperial bed embellished with low-relief woodwork in lace-like floral pattern
Courtesy of Louis Vuitton

The masterpiece of the entire collection is the Cœur de Paris, the most expensive high-jewellery piece the maison has ever produced.

The necklace pays homage to the Eiffel Tower, which was unveiled to the world at the 1899 Exposition Universelle as a beacon of modernity and ingenuity. The Cœur de Paris offers a new perspective on the structure, as if you are viewing it from underneath looking up. Pink gold rods embrace a grid of baguette settings and diamond-lit arrows, which frame the jewel’s centrepiece: a captivating 56.23-carat diamond christened the Cœur de Paris. The collection’s rarest and most important master stone radiates a unique colour with an intense pink hue complemented with unusual tones of orange and brown. It is set in a medallion that can be detached to wear as a brooch.

The centrepiece dangles from a 5.73-carat LV Monogram Star-cut diamond interlinked with 26 LV Monogram Star-cut diamonds in an opulent rivière creation that is a first for the house. A companion ring features a complementary 12.67-carat, museum-quality diamond that emanates a fancy deep, brownish pink and orange hue.

“Awakened Hands, Awakened Minds tells a story that’s very close to who we are,” Amfitheatrof said. “By showing this mixture of craftsmanship, engineering, invention, and bravery, we are really talking about Louis Vuitton. … we couldn’t celebrate in a better way.”

Sylvester Stallone Sells His Knockout Watch Collection, Including the Most Valuable Modern Timepiece Sold in Sotheby’s History

Sylvester Stallone’s legacy as one of the most notable watch collectors of the 21st century was cemented in New York this week, as 11 of the actor’s timepieces sold for US$6.7 million—beating its presale estimate—at Sotheby’s.

The highlight of the sale was the Academy Award winner’s Patek Philippe Grandmaster Chime, which sold for US$5.4 million (surpassing its pre-sale estimate of US$2.5 million to US$5 million), a result that set a pair of benchmarks for the auctioneer. It’s the third-most valuable wristwatch sold in Sotheby’s history, and marks a record for a modern watch sold by Sotheby’s, topping the US$4.5 million sale of a Richard Mille Reference RM53-02 last October.

“The sale of the Patek Philippe Grandmaster Chime was an unrepeatable celebration, not only of a masterpiece by the most revered Swiss-watchmakers of technical excellence, but also of the legendary icon that is Sylvester Stallone, who has been a deeply influential and admired collector for many decades,” Geoff Hess, Sotheby’s head of watches, Americas, said in a statement.

On Wednesday, more than 100 attendees filled Sotheby’s saleroom, and once the Grandmaster Chime (Reference 6300G-010) hit the block, a four-minute bidding war ensued among five bidders, according to the auction house. In the end, the watch was sold to a private collector from Asia. ( Stallone paid US$2.2 million for the watch in 2021. )

Stallone’s Patek Philippe Grandmaster Chime sold for US$5.4 million
Sotheby’s

“To feel the pulse of collectors racing with excitement in pursuit of absolute top-caliber material was tremendous, and an homage to the art of collecting at the highest level,” Hess said.

Considered to be a holy grail among followers of haute horology, the Grandmaster Chime was the result of a project initiated by Philippe Stern in 2007 to create the most intricate wristwatch in the brand’s history. The development, production, and assembly spanned 100,000 hours, according to Sotheby’s.

Stallone’s Grandmaster Chime was the first example of the model to appear at auction, aside from one specifically created for, and sold at, a Christie’s charity auction in November 2019 for CHF 31 million (US$35 million) . It remains the highest price for a watch ever sold at auction.

Hess himself went home with one of Stallone’s watches, as the winner of a five-minute bidding battle for the actor’s olive green Patek Philippe Nautilus. The 2021 stainless steel watch featuring an olive-green dial and diamond-set bezel sold for US$492,000, exceeding its pre-sale estimate of US$400,000.

Audemars Piguet Royal Oak Tourbillon
Sotheby’s

Stallone’s collection, assembled over the course of more than 20 years, also included timepieces from Rolex, Audemars Piguet, and Piaget, as well as unique and screen-worn watches from Panerai.

Other highlights included the actor’s Audemars Piguet Royal Oak Tourbillon (Reference 26730OR.OO.1320OR.01)—a gorgeous piece created for the 50th anniversary of the Swiss watchmaker’s Royal Oak collection in 2022. It sold for US$228,000, exceeding its pre-sale high estimate of US$200,000; and a Panerai Luminor Submersible (Reference PAM00382) worn by Stallone in the 2012 film The Expendables 2 that sold to an online buyer for US$96,000, blowing past its pre-sale estimate of US$30,000 to US$60,000.

“I enjoy the collecting process like so many others in this passionate community, who don’t just see watches as an accessory, but admire them for their history, craftsmanship, artistry—but most importantly—how they make them feel,” Stallone said in a statement when the sale was announced. “Looking at these watches, I feel truly lucky to have owned them; they serve as a reminder that hard work pays off.”

Raw Milk and the Rise of ‘Food Freedom’

Dairy farms have been in decline for decades, but you wouldn’t know it looking at Mark McAfee’s. Based in Fresno, Calif., his business has grown substantially since 2020, he said, and is on track to hit $30 million in sales this year.

His company, Raw Farm, is the largest supplier of unpasteurised milk in California. Gwyneth Paltrow is a fan of the brand, whose products can be found at the specialty grocers Erewhon and Sprouts. Podcast hosts and social-media personalities have fuelled demand, claiming that raw milk is creamier, more nutritious and easier to digest than pasteurised dairy.

“Influencers have really driven us in the last four years to new levels we never imagined,” McAfee said in an interview.

The Food and Drug Administration has long warned Americans against drinking unpasteurised milk, which can expose consumers to salmonella, listeria and E. coli, and has the potential to cause rare and serious disorders. The FDA has said raw milk is not healthier than pasteurised and, in fact, raises the risk for harm. Selling raw milk is legal in California and more than half of U.S. states, but its sale across state lines has long been banned by the FDA, which warns that drinking unpasteurised milk can cause bacterial outbreaks that have resulted in miscarriages, stillbirths, kidney failure and death. It can be particularly unsafe for children, the elderly, immunocompromised people and pregnant women, the agency says. This year, the FDA warned about the risk of bird-flu contamination amid an outbreak that has infected dairy cows. Twenty states have laws on the books prohibiting raw milk in some form.

But in many corners of the internet, raw milk is presented as healthy, wholesome and cool. Some people brag about obtaining it in states where retail sales are illegal. “I have a dealer,” said Texas-based influencer Lauryn Bosstick on her popular podcast, “The Skinny Confidential Him & Her.” In an email, Bosstick said “I love raw milk.” As a guest on the show, Paltrow , who lives in raw-milk-friendly California, said she drinks raw cream in her morning coffee and that Raw Farm is her favourite.

Others have turned their preference into a political stance, a way of rallying against what they see as government overreach. Robert F. Kennedy Jr. has voiced support for “food freedom”—a term that has come to encompass everything from intuitive eating to diets that the FDA has deemed dangerous. He has expressed solidarity with Amos Miller, a Pennsylvania-based Amish farmer whose business has run afoul of raw-milk regulations and faced consequences as a result. Kennedy said he “only drank raw milk” while on a 2022 panel at a conference for anti vaccine nonprofit Children’s Health Defense, which he chairs. His running mate, Nicole Shanahan , recently posted a photo on Instagram in which she smiles while hugging two people at a farmers’ market selling raw milk.

“Mr. Kennedy believes that consumers should be able to decide for themselves what foods to put into their bodies,” a spokesperson for Team Kennedy said in an emailed statement.

Trust in the U.S. government and American media are at near-record lows, driving people to seek alternative authorities and information sources. For many, influencers and self-styled experts have filled the void. As a growing number of them tout products that could cause harm, people across the country are drinking it up.

Farmers Against Pasteurisation

The federal government set its first safety standards for dairies in 1924, introducing regulations that states could adopt on a voluntary basis. This followed many disease outbreaks linked to milk, including typhoid fever, scarlet fever and tuberculosis. Pasteurisation, a heating process that kills harmful bacteria such as E. coli, listeria and salmonella, became the norm as dairy farmers and sellers sought to prevent food borne illnesses.

But soon a group of dissenters emerged, arguing that pasteurisation stripped milk of its nutrients. That cohort included the owner of the Monrovia, Calif.-based farm Alta Dena, which would become a major supplier of raw milk.

Unpasteurised milk appealed to the counterculture and became linked with the growing natural and organic food movement of the 1970s. But following various outbreaks, legal challenges and a 1987 FDA ban on interstate raw milk sales that remains in effect today, Alta Dena stopped selling unpasteurised products and sold its farm. The Alta Dena brand exists today but sells pasteurised milk and other dairy products. McAfee’s farm, founded in 1998 as Organic Pastures, stepped up to grab its market share.

“That really helped us to establish our business,” McAfee said. But he has run into some trouble. In 2008, McAfee and the company pleaded guilty to misbranding raw milk as pet food in order to sell it across state lines. A court order two years later demanded that the company cease selling its raw-milk products for any purpose between states and stop making drug claims about its products, unless authorised by the FDA. In 2023, the Justice Department alleged that Raw Farm had violated the court order by selling raw-milk cheese across state lines and claiming it could cure, mitigate, treat or prevent disease. Raw Farm agreed to settle the dispute. Now, the Justice Department is seeking to enforce the settlement following recent outbreaks of salmonella and E. coli it says were linked to Raw Farm’s raw milk and cheddar cheese ; Raw Farm denies there was E. coli in its cheddar cheese product. Raw Farm’s raw milk is only available in California; its unpasteurised cheese is sold beyond California, as well as a raw-milk pet food kefir.

In the early aughts, Mary McGonigle-Martin started seeing raw milk at her local health-food store in Temecula, Calif., where signs framed the dairy product as a cure for asthma, allergies and other ailments. Skeptical at first, she went to Organic Pastures’ website to learn more. “They talked about how they tested every batch of milk and they never found a pathogen,” she said. She decided the milk was safe for her 7-year-old son to drink. “It was very naive of me,” she said.

McGonigle-Martin’s son Chris became severely ill after drinking the milk for a couple of weeks. He was hospitalised, required blood transfusions, put on a ventilator and diagnosed with hemolytic uremic syndrome, a rare but serious kidney condition. Though Chris survived, McGonigle-Martin and another family whose child became sick sued McAfee and Sprouts for negligence and product liability, claiming that their children suffered from E. coli. The parties settled for an undisclosed amount in 2008. McGonigle-Martin has since become an activist, working to warn parents about the risks for children.

McGonigle-Martin said she believes that farmers who advocate for raw milk have good intentions but are ultimately spreading what amounts to misinformation.

Meanwhile, interest is way up. GetRawMilk.com, which aims to help consumers find local suppliers, has experienced a surge in views in recent months. Its creator said in an email that the site’s traffic has been “hitting new all-time highs,” with nearly 97,000 visitors in May.

The Influencer Effect

At the upscale Los Angeles grocery store Erewhon, a 64-ounce jug of McAfee’s Raw Milk retails for $11.99. Each bottle carries a warning: “Raw milk and raw milk dairy products may contain disease-causing microorganisms.” According to the label, those at highest risk of disease include “newborns and infants; the elderly; pregnant women.”

The pandemic brought “explosive” growth to the business, McAfee said. “People got smart and they said, ‘Well, what is the most immune-system-building food on earth?’” One study, published by the CDC’s Emerging Infectious Diseases journal in 2017, found that unpasteurised dairy products were associated with roughly 840 times more illnesses and 45 times more hospitalisations than pasteurised products.

On social media, where “What I Eat in a Day” videos are popular, doctors, nutritionists and lifestyle personalities have praised raw-milk consumption. “This is why you should be drinking raw milk,” says Paul Saladino, a doctor who once sold people on his “Carnivore Diet,” in a video on Instagram, where he has two million followers. In an April TikTok , the “Skinny Confidential” host Bosstick describes the “bowl of meat” she eats “probably twice a day,” crediting it for weight loss and hair growth. “I also do raw milk,” she says.

Tieghan Gerard, creator of the popular food blog Half Baked Harvest, incorporated raw milk into an iced peach-lemonade matcha latte recipe. Hannah Neeleman , a pageant queen and influencer whose @BallerinaFarm Instagram account has nine million followers, posts videos of herself and her children drinking raw milk directly from the udders of their cows in Utah. The farm she shares with her husband is slated to open Ballerina Farm Dairy in the coming weeks, Neeleman said. It will sell raw milk, among other unpasteurized dairy products, in the state.

Meanwhile, commentators for conspiracy theorist Alex Jones’ website Infowars have downplayed the risks of raw milk , chalking up warnings to collusion between the FDA and “Big Milk.”

McAfee says Raw Farm does not pay any influencers or celebrities to promote its products, but it ships free products to roughly 350 influencers a year. He says many more have been promoting products they paid for themselves. “They go crazy telling you how delicious it is,” he said.

Bill Marler, a personal injury attorney in Washington state focused on food borne illness cases, has sued McAfee on several occasions, including while representing McGonigle-Martin. “They’re a big player and Mark is a proselytiser,” he said.

Another big advocate is the Weston A. Price Foundation, an organisation founded in 1999 with the stated goal of bringing back “nutrient-dense” foods to Americans.

Sally Fallon Morell, its founding president, owns a farm in Maryland that sells raw milk for pets. Maryland state law prohibits the sale of raw milk for human consumption. She claims there is no scientific reason to oppose raw milk and offers alternative explanations for the few instances the FDA has said people died or became ill from drinking it. Through her Farm-to-Consumer Legal Defense Fund and her website Real Milk, she advocates for the consumption of unpasteurised dairy and criticises federal food regulation and nutrition guidelines.

“We’re giving our children skim milk, processed foods, loaded with additives, industrial seed oils, lots of sugar,” she said. “We’re at the 11th hour, and things have got to change or there’ll be no people,” she added, calling it a “genocide” what children are being fed in school.

Her foundation made it a mission to make unpasteurised milk legal in every state . According to the foundation, raw milk can be obtained in 46 states, through retail or direct sales, herd share agreements or as pet food. According to the FDA, only 30 states can legally sell raw milk for human consumption.

On an October episode of the organisation’s “Wise Traditions” podcast, Fallon Morell spoke about Nevada, where raw milk for pets must be marked with dye. She shared a desire to “get them to lift that.”

Soon, McAfee said, he’ll be selling frozen raw milk labeled as pet food in all 50 states, using a label he said the FDA approved. The FDA did not confirm whether it had approved the label, but a spokesperson said that if the agency becomes aware of the diversion of raw milk labeled for pets into the human food supply, it will take the appropriate action.

“The influencers, all day long, they say, ‘I identify as an animal, get this stuff, this stuff is awesome,’” said McAfee. “They know that it’s exactly the same product they sell in California with a different label.”

How to Keep Your Car From Spying on You

Your car is watching you. What can you do to stop it?

Many vehicles today and their related phone apps are packed with safety and convenience features, including digital maps, navigation linked to GPS and the internet, remote starting and vehicle locaters to find your car in a crowded parking lot. Many also have microphones for voice control and some have cameras that detect who is driving to adjust things such as the seat.

But those features and others can have a dark side: Many can track where you go and when, how fast you drive and how hard you brake, where you park and spend time, even what music or podcasts you listen to. Such information can be a gold mine for marketers and insurers—and a target for hackers.

Privacy researchers say car buyers may not realise they agree to have such data collected by the automaker when they sign the papers for a new vehicle or use the carmaker’s phone app.

The Mozilla Foundation, a technology-focused nonprofit, examined the privacy practices of 25 car brands. Its conclusion: “These are the worst of any category we’ve reviewed,” says Jen Caltrider, director of the group’s Privacy Not Included program. Among its findings are that most carmakers collect personal information, give customers little control over it, and may sell or share it with others.

Privacy experts say they also are concerned about provisions in car-maker privacy policies that allow them to share driver information with law-enforcement authorities under certain circumstances—sometimes without a warrant.

On May 14, the Federal Trade Commission told vehicle makers that it was  monitoring their actions  regarding car data. “Cars are much like mobile phones when it comes to revealing consumers’ persistent, precise location,” the agency said in a blog post. It added that companies “do not have the free license to monetise people’s information beyond purposes needed to provide their requested product or service….”

The industry response

The car industry says that the combination of vehicle data monitoring, GPS and wireless communication—a field known as telematics—provides important features, some of them safety-related. Some systems can detect when you’ve been in an accident and call emergency services, or locate a car if it’s stolen. They can help you avoid a traffic jam or potential road hazards. Cars also can give you maintenance reminders, such as when a vehicle needs an oil change or new tires, and allow the carmaker to track the durability and function of certain components for future improvements.

A vehicle-industry trade group in 2014 issued  voluntary guidelines  for the collection and use of car data. The group, now called the Alliance for Automotive Innovation, says its members should give car owners and lessees choice in the “collection, use and sharing” of certain information and that this information should be collected “only as needed for legitimate business purposes.”

Some privacy groups, however, say the voluntary guidelines aren’t specific enough and aren’t always followed.

“It seems like an empty promise,” says Thorin Klosowski, a security and privacy expert with the nonprofit Electronic Frontier Foundation. “Car companies are becoming tech companies. Self-policing hasn’t been shown in other tech industries to be a reliable way for companies to operate.”

What is needed, according to these experts, is a federal privacy-protection law along the lines of the European Union’s General Data Protection Regulation. The car industry, for its part, also  backs a federal privacy law , in part to have a nationwide standard as a number of states have adopted their own, differing laws.

Most carmakers issue their own lengthy privacy policies stating how they collect and disseminate car data. Some state that they can share or sell the information to third parties including marketers if the car owner agrees to it.

Among the six biggest sellers of vehicles in the U.S., Ford Motor says customers can turn off data and location sharing with the company. It says it “doesn’t sell any connected-vehicle data to brokers, period.”  General Motors says it is “fostering trust through responsible data practices, enhanced user controls and clear benefits for customers.” Toyota says it gives customers “transparency and choice” in how vehicle data is collected and used and that they can “turn off all data transmission.”

Stellantis, owner of Chrysler, Dodge and Jeep, says any data it collects “is in accordance with applicable state privacy laws  Accordingly, Stellantis provides customers with a way to opt out of data collection.” Honda says it is “very clear about what we collect and how our owners can opt out” and “when we might share collected data with third parties.” Hyundai declined to comment and deferred to the Alliance for Automotive Innovation for a response.

Property takes a holiday as the long weekend looms

There’s nothing like a long weekend to put a dampener on the property market. Auction activity is set to drop dramatically over the King’s birthday weekend to almost half the number from last week.

Data from CoreLogic shows that 1,327 homes are scheduled for auction across the capitals this weekend, down -44.2 percent on the previous week. Research analyst for CoreLogic Australia, Caitlin Foo says the fall in numbers is most evident in Melbourne where auctions have hovered over 1,000 homes for the past five weeks. This weekend, figures have fallen by -56.7 percent to just 480 homes.

Source: CoreLogic Australia

In Sydney, there are 537 homes scheduled to go under the hammer, down -40.3 percent on the previous weekend when 899 homes were auctioned. It’s a slightly less significant story in the smaller capitals with 130 homes set for auction in Brisbane (down from 141 the previous week), 99 in Adelaide (down from 152) and Canberra at 65 (down from 68).

While it’s a slower week for the market, the numbers are still far better than they were this time last year, indicating a consistent sense of confidence in residential property. 

The World’s Richest Are Getting Richer Again

A resilient global economy is leading to a rise in wealth once again for the world’s richest individuals, despite plenty of economic and geopolitical uncertainty, according to a new report.

Globally, the population of those with at least US$1 million in investable assets rose by 5.1% last year to 22.8 million, while their wealth rose 4.7% to US$86.8 trillion, according to the 28th annual World Wealth Report from Capgemini Research Institute, a global think tank division of Paris-based Capgemini.

It’s a sharp difference from a year earlier, when global wealth fell 3.3% to US$83 trillion.

The growth trend was particularly evident in the U.S. last year, where economic resilience, slowing inflation, and soaring U.S. stocks led to a 7.3% increase in the population of those with at least US$1 million in investable assets to 7.5 million, Capgemini said. The wealth of these individuals rose 7% to US$26.1 trillion.

“We are back in business,” says Elias Ghanem, global head of Capgemini Research Institute for Financial Services. “It’s a good message for the economy, it’s a good message for the people, and it’s a good message that growth is back on stage.”

Among the ultra wealthy—those with at least US$30 million in investable assets—the global population rose by 5% to 220,000, while their wealth grew by 3.9% to about US$29.4 trillion. That represents 34% of total global wealth, according to Capgemini.

A big reason for the upturn in wealth was a strong recovery in global stocks, and the fact that the wealthy moved their assets out of cash and cash equivalents. Globally, this population’s average allocation to cash was 34% as of January 2023; by January this year, cash allocations dropped to 25% on average.

“There’s a move in the high-net-worth mind from wealth preservation back to growth, and that’s good,” Ghanem says.

Although average global stock allocations dropped to 21% as of January this year from 23% a year earlier, the wealthy boosted their allocations to fixed-income by 5 percentage points to 20%, to lock in higher rates, Ghanem says. They also moved money into real estate as prices declined, increasing that investment, on average, by 4 percentage points to 19%.

“As interest rates went up, the real estate to be sold increased, and thus the price went down, and high-net-worth individuals leveraged the opportunity to invest,” Ghanem says. That investment has a positive ripple effect on the broader economy, he says.

The wealthy also boosted their allocations to alternative investments, mostly private equity and private credit, by 2 percentage points to 15%. That’s money that funds the private sector, where businesses are engaged in creating industries and products “that are essential to transforming our economy,” Ghanem says.

The message all these moves make: “Money is circulating again and money circulating is growth for everyone,” he says.

Capgemini’s annual report doesn’t predict the future, but the shifts in asset allocation point to a new perspective by the wealthy that takes into account the shocks of the recent past, from the pandemic, to inflation, and war.

“The business environment has considered these factors and is able to manage them,” Ghanem says.

Whether China reopens for business remains “a big question mark,” however, he says. Though the Nasdaq stock index in the U.S. gained 43% in 2023, after tumbling 34% a year earlier, the Shanghai Stock Index posted a decline of 3.7% last year, better than a nearly 15% drop a year earlier, but still sluggish.

As a result, Asia has yet to regain its status as the world’s wealthiest region—which it was from 2017-19, on the strength of growth in both China and India, Ghanem says.

The report was based on a survey of 3,119 individuals (including more than 1,300 ultra-wealthy) living in 26 markets in North America, Latin America, Europe, the Middle East, and Asia-Pacific, the firm said.

The findings are aimed at wealth management firms serving these elite populations across the globe. Among the uber-wealthy, Capgemini warns these firms have competition from family offices that are better positioned to orchestrate non-financial services, such as education or travel, and to bargain among banks to get the best deals, and services. That’s reflected in the fact the number of wealth management firms hired by the ultra-wealthy has risen to seven on average from three in 2020, Capgemini found.

“With their diverse operating models fully aligned with the objectives of the families they service, family offices are becoming more visible and are significantly challenging traditional wealth management firms,” the report said.

Capgemini’s conclusion: Wealth management firms need to decide if they want to compete against family offices or collaborate with them.

One way the report urges them to compete is by developing behavioural finance technology driven by artificial intelligence. These systems can be trained to understand biases and identify them early on to help individuals avoid making bad decisions, Ghanem says.

“One of the strongest messages of the report is that it’s time for the banks to leverage AI-powered behavioral finance to interact better with their clients,” he says.

This Airline Status Is So Exclusive, Even Elite Fliers Aren’t Sure How They Got It

Bonnie Crawford was in danger of missing a connecting flight to Toronto for a board meeting last week when a United Airlines customer-service representative saved the day. She got rebooked on a pricey nonstop flight on Air Canada in business class. For free.

You’re probably thinking, “No airline ever does that for me.” Crawford isn’t just any frequent flier. The chief customer officer for a software company and Portland, Ore., resident has United’s invitation-only Global Services status.

It’s a semi-secret, status-on-steroids level that big spenders strive for every year. American and Delta have souped-up statuses, too, with similarly haughty names: ConciergeKey and Delta 360°. The airlines don’t like to talk about what it takes to snag an invite, how many people have such status or even the perks. Even the high rollers themselves don’t know for sure.

Get into these exclusive clubs and you get customer service on speed dial, flight rebooking before you even know there’s trouble, lounge access and priority for upgrades. Not to mention bragging rights and swag. People even post unboxing videos of their invites on YouTube.

Anyone with this super status needn’t fret about the value of airline loyalty or the devaluation of frequent-flier points .

Crawford was invited to Global Services for 2017 and was hooked. “It was the first taste of this magic, elusive, absolutely incredible status,’’ she says. She wasn’t invited again until this year and fears she won’t be invited back next year due to fewer costly international flights in her new job.

Shrouded in secrecy

Airlines don’t publish qualifications for Global Services, Delta 360° or ConciergeKey. That doesn’t stop road warriors from speculating in online forums about the required spending levels ($50,000-plus a year is mentioned a lot) and travel patterns (lots of high-cost international flights in premium cabins on the airline, not partner carriers).

Complicating matters: Some airlines bestow the status as part of a corporate contract, with companies allowed to pick their nominees.

Scott Chandler , senior vice president of revenue management and loyalty at American Airlines , won’t divulge any metrics. He says American devotes a significant amount of time and resources to its coveted ConciergeKey program because the travelers are the airline’s most valuable. Delta and United declined interview requests and didn’t share any info beyond statements about the programs’ exclusivity.

Chandler says fliers can reach ConciergeKey status through a combination of spending on American flights, shopping portals and credit cards. How much? He wouldn’t spill or confirm the $50,000 guesstimates. He says the makeup of the membership is broader than most people think.

“They’re basically interacting with American on a daily basis, not just when they’re flying,’’ he says.

Steve Giordano of Cherry Hill, N.J., is a managing director of a flight test and aircraft delivery company that shuttles pilots to or from assignments around the globe. The company spends up to $2.5 million on airfare every year, and he has been ConciergeKey for several years. He remembers once when the dedicated customer-service desk alerted him to a cancellation in Dublin before the flight’s pilots even knew. (He was friends with the pilot.)

In April, the airline told him he didn’t qualify for this year. He says he wasn’t too disappointed because he flies United more and has Global Services status. Giordano says he noticed ConciergeKey service slipping. On a vacation to Colombia earlier this year, he says the dedicated customer-service line and a gate agent were no help getting him home after a series of flight issues. He complained and received a form letter back. A spokeswoman says the airline sees higher satisfaction scores from ConciergeKey members than any other customer group.

In May, the airline sent him an email renewing his status after all. American is suffering through a self-induced business travel slump and working to woo back travellers .

Ace problem solvers

Giordano has also taken advantage of chauffeured drives in luxury cars to the gate during a tight connection. In Houston, United escorted him and his business partner down the stairs to the tarmac and drove them in a Jaguar to their next plane. Delta uses a Porsche , American an SUV.

“CBS Mornings” co-host Gayle King has ConciergeKey and hitched a ride like that in April and thanked the American Airlines employees who helped her in an Instagram post .

Those transfers are far from routine. Travellers with the status say the most prized perk is quick help when flight troubles of any kind arise.

A senior partner with a major consulting firm who has earned status in all three programs says a United Global Services representative called him on his way to the airport a few weeks ago after noticing that he hadn’t arrived for his flight. The cutoff time for losing his seat was approaching. They saved his seat after he confirmed he was en route.

In Charlotte, N.C., last week, as the executive was sprinting to his connecting flight, a ConciergeKey representative called the airport to make sure the gate agent knew he was coming. Boarding had ended. He got on the plane.

“That’s the stuff that makes the difference,’’ he says. “That’s the s—t that gets you home.’’

There is a limit, of course.

“They don’t hold the plane,’’ he says. “If they know you’re coming, they might not shut the door as quickly.’’

Much to his parents’ chagrin, he can’t play the super-status card to help others. And all the status in the world can’t overcome weather, air-traffic delays or missing crews.

Kim Anderson , chief executive of an online lending company, is a longtime Delta loyalist who lives in Fort Lauderdale, Fla.

Before his Delta 360° invite, Anderson had seen other travelers with the 360 bag tag on their backpacks and asked a few employees about the status over the years, but didn’t know much more. He travels a few times a month, buys extra-legroom seats or better, regularly buys a Sky Club membership and has an American Express card he uses to transfer miles to Delta. He estimates he racked up 200,000 Delta miles a year for the past few years.

Anderson was still surprised to find an invitation in his inbox a couple of years ago and says he hasn’t cracked the code.

“If I knew that, I’d put it in a bottle and sell it on Amazon ,’’ he says. He got a repeat invite this year.

Anderson says the customer service is over the top. He fired off an email complaint about rushed in-flight service in first class on a recent flight and had an answer—and bonus frequent-flier miles—before he landed.

“Those are not their trainees, I can tell you that,’’ he says.

The east coast capital now setting the pace in the Australian real estate market

Australia has a new urban destination for those seeking a high quality of life — and it’s not Melbourne or Sydney.

A new report released by Deloitte Access Economics has revealed Brisbane as the best ‘city swap’ location to live and work. It follows on from the east coast capital being named as one of the 50 best places in the world by Time Magazine, the only Australian capital to make the list.

The State of the Cities Report by Deloitte Access Economics reported the city offers significant advantages to businesses and workers alike, with a $25 billion infrastructure pipeline in play to support the city’s rapid population growth as well as a track record of processing development applications 38 percent faster than other cities. Commercial rents are also appealing compared with the southern cities, averaging $450sqm less than similar centres in Australia and internationally.

For workers, commute times are minimised with less congestion on the roads and trains more likely to run on time compared with other Australian cities.

The report also found that Brisbane’s economy is set to grow by 68 percent to $275 billion in the 20 years to 2041.

An easily accessible city has made Brisbane an attractive option for Australians looking to make a change.

Clearly, it is not news to those seeking to enter the Brisbane market, with CoreLogic data released this week showing the Queensland capital is now the second most expensive residential real estate market in the country, second only to Sydney. Prices rose by 1.4 percent during May, bringing the median property price to $843,231. Only Adelaide experienced a higher growth rate in home prices in May at 1.8 percent.

Those price increases look set to continue as Brisbane experiences the fastest growing working age population among Australia’s major centres, growing 7.7 percent compared to an average of 4 percent across major cities. The Domain House Price Report released earlier this year predicted the median house price Queensland capital would hit $1 million in the next 12 months.

While demand for housing in the city is strong, it would appear the workforce is there to support it. 

Moreton Island is just a 75 minute ferry ride from Brisbane.

Lead Partner at Deloitte Access Economics, Pradeep Philip, said Brisbane offered significant growth opportunities for businesses, innovators, and investors. 

“Brisbane is the definition of a growth stock, with clear opportunities for innovators, investors and businesses across Australia and internationally in the years to come,” Mr Philip said.

“This is evident in Brisbane’s talent market, where it has the fastest growing working age population among Australia’s major centres, with 7.7 percent growth against an average of 4 percent across major cities.  

“This, combined with Australia’s highest ranked university, a 32 percent increase in university graduates in the past five years, and the highest state-wide rates of technical and trades education attainment in the country, positions Brisbane with a highly competitive, skilled, and growing workforce.

Scammers Tried to Sell Graceland. How to Prevent Your Home From Being Next.

When a company tried in May to auction off Graceland, the iconic former home of music legend Elvis Presley in Memphis, a Tennessee court stepped in to stop it.

The court stopped the sale because the company that was trying to auction off the property was fake. Also fraudulent were the supporting documents the fraudsters presented that purported to show that Lisa Marie Presley, Elvis’s late daughter, had defaulted on a loan they claimed they made to her for which she used Graceland as collateral.

While this audacious and complex attempt at defrauding a famous family made national news, most other cases of attempted title theft or mortgage fraud don’t. But homes such as Graceland, where the original owners are deceased, are popular targets for scammers, according to Victor Petrescu, a real-estate attorney with Levine Kellogg Lehman Schneider & Grossman in Miami.

Homes with out-of-state owners, vacant plots of land and investment properties owned by limited liability companies are also particularly vulnerable, he said.

Here’s how it works: A fraudster targets your house and assumes your identity, using tactics similar to identity thieves to acquire your personal information and create fake IDs. He or she then tries to sell it to an unsuspecting buyer by executing a forged deed in your name. An alternative scam is to submit a mortgage application in your name to get cash out of the house.

The good news is that except in very rare circumstances, a fake deed won’t transfer your title, even if it initially gives the appearance of a transfer in public records, nor will a forged mortgage create any obligation for an innocent homeowner to pay. The bad news is that restoring your title and clearing the property of any fraudulent mortgages can be a lengthy and expensive process.

Sarah Frano, a vice president and real-estate fraud expert at First American Title Insurance Co., said there has been a sharp rise in seller impersonation fraud over the past few years, where a fraudster impersonates an owner by forging a deed conveying property to an unsuspecting buyer.

Several factors are driving the increase, including the rising popularity of remote closings and notarizations, where the parties aren’t present in person at the closing table. Home equity, which hit a record $16.9 trillion in the first quarter of 2024, according to data provider Intercontinental Exchange , is also contributing to the incidence of fraud. For scammers, that equity, which can be unlocked by a sale of a home, a cash-out refinance or a second mortgage, is an opportunity to sell the property out from under you or to steal your identity to mortgage your house.

“If you bought a house and have a big mortgage, the chances of it being stolen from you are quite slim,” said Richard Howe, register of deeds of the Northern District of Middlesex County in Lowell, Mass. “The key for this is for the wrongdoers to get a loan against the property or sell it, and nobody’s going to buy a property or put a loan against it if there is a big mortgage on it.”

Petrescu said he’s also seeing a rising number of title theft cases involving investment properties owned by limited liability companies, where a partner who was recently kicked out of the LLC continues to act and executes documents trying to transfer the property when he’s no longer part of the company or authorised to sell it.

Still, the actual risk of losing your home to title theft is quite low. “There would have to be an extreme set of facts showing the owner was aware of the issue and took no action to correct it before that deed could be deemed as valid,” said Petrescu.

But there are ramifications nonetheless. If a homeowner discovers a fraudulent deed or mortgage while applying for a home-equity loan, for example, that could push the loan application back six months or more while title gets cleared, Petrescu said. And, if they are attempting to sell the property, a title company may not want to insure the property if there is a rogue deed recorded in the county records even if it is apparent that it wasn’t a valid transfer. “So, this has real consequences,” he said. “Even if someone is not going to lose title to their property, it could be a huge setback for them.”

Here are some things you can do to avoid becoming the victim of home-title theft.

Be alert to the early signs . After targeting a vulnerable property, a home-title thief will usually try to impersonate you using forged documents, such as a Social Security card or driver’s license. There are telltale signs that someone may be trying to steal your identity. Credit inquiries will show up on a credit report, so be sure to check your credit reports regularly or consider subscribing to one of the paid services that monitors credit on your behalf. You can also freeze your credit, which restricts access to your credit report. If you receive strange bills in the mail or phone calls from lenders you haven’t contacted, or if strangers start asking questions about who owns your vacant vacation home, those can also be signs that home-title theft may be under way.

Monitor your title . Many counties offer free title monitoring services that notify owners if a new document is recorded against their property. In the Northern District of Middlesex County in Lowell, Mass., owners can register up to three residential properties, according to Howe, who noted that in his 29-year career he has only seen one case of title fraud, in January 2024, and that involved a property that was vacant because the owners were deceased. Frano suggests setting up a free Google alert for your property address. That way, if a fraudster lists your property for sale, an alert may help you stop it before it happens.

Buy the right type of title insurance . While lenders require title policies to insure their own interests when a property is mortgaged, it is a good idea to also purchase an owner’s policy when you purchase a house. There are two different types of owners’ policies, and, unfortunately, they are similarly named, which can get confusing. A standard American Land Title Association (ALTA) Owner’s Policy provides coverage only for forgeries that took place before you purchased your home, such as fake deeds in the chain of title before your closing. But this type of policy won’t protect you against forgery occurring after your property purchase. For that, you may want to consider the more comprehensive Homeowner’s Policy of Title Insurance, which does cover forgeries occurring after your closing, according to Steve Gottheim, ALTA general counsel. That enhanced coverage, available in most states, comes at an additional cost, though, which varies based on the location and purchase price of your home. Either policy will cover you for losses you incur due to fraud or forgery, including attorney fees and expenses incurred to clear title, up to the policy limit, but only the Homeowner’s Policy will cover fraud after you purchase the home.