Posted on

CELEBRATING THE CITY – KANEBRIDGE QUARTERLY AUTUMN 2024

The latest issue of Kanebridge Quarterly has just landed and we’re celebrating city living. From the best luxury apartments hitting the market to incredible houses transformed by the clever use of passive solar design, we showcase how city living in Australia is evolving and the challenges ahead to reach ever higher standards of living.

We kick off this issue with our story on the internationally recognised cool neighbourhoods in Sydney and Melbourne. They’re nowhere near the water, so what makes them so special? And how can you spot the next fashionable suburb?  If you’re more about life’s little luxuries, check out our story on the rise of the apartment concierge — and where you can get in on the action. NSW Building Commissioner David Chandler also shares his vision for the construction of multi-residential projects, making builders more accountable than ever and bringing confidence back to the market.

In the Money section, as more homeowners feel the pinch amid stubbornly high interest rates, we look at ways to keep money in your pocket without the belt tightening, at least not much. Plus, we explore the world of investing in gems and jewellery, talking to the experts about what pieces truly appreciate in value. If you’re looking at where to get the best returns on your investments, we can point you in the right direction, from bricks and mortar, the cryptocurrencies (yes, they’re back), gold and more.

Lifestyle lovers will enjoy drawing back the curtain on some of the best designed homes in Australia, including a house in Melbourne that doesn’t need heating in winter. Plus, we drop in on Singapore designer Gabriel Tan, who moved his family to Portugal in the middle of COVID. And speaking of people on the move, our travel section looks at the growing market for solo travellers, and the travel companies catering to their interests.

It’s a packed issue, perfect for dipping into and taking away truly useful information. Get ready to invest in your best life.

Subscribe now

Posted on

A Touch of Magic at this Beautiful Period Cottage

35 North Street Windsor

Sometimes in life, beauty can be found in the most obscure places. In the case of 35 North Street, Windsor, well, everything about this beautifully restored leafy cottage is enticing… and enchanting. Located in the heart of Windsor, NSW—an original Australian settlement town—this three-level weatherboard and split-slab cottage and barn is, more or less, straight out of a fairytale movie.

Built in the 1860s and carefully restored, this period home is the epitome of charm and character with subtle nuances that not only hark back to its rich history, but will present as an attractive oasis for the modern day home owner.

Once owned by Australian artist, Greg Hansell, you can see its ties to creativity – a space where, as the current owner did, one can immerse themselves in the bubble of creativity afforded by the “peace of house, barn and garden.” Surrounded by colonial-era buildings including one that should present familiar if you were a fan of  A Country Practice series, you’ll feel a world away from the hustle and bustle of Sydney’s CBD. Yet, you’re only 55 minutes away.

The home is set on a large 638 sqm block, and features scalloped timber fretwork and handmade timber shutters throughout, original hardwood floors, including tongue-and-groove boards, as well as hand-crafted interior and exterior detailings. Head up the dainty wooden stairs to discover a sun-filled loft-style living room and library with vaulted timber ceiling – an ideal setting to “indulge in creative pursuits” or simply relax and unwind as you look out to views over the luscious north-facing cottage garden and barn. The cottage features two light-filled bedrooms and one bathroom, with potential to expand or further renovate.

“It’s most beautiful in the autumn and winter seasons,” says its current owner. “I think there’s something very magical about this property. And really, it’s about not being too big but not being too small, so it’s perfect for entertaining and hosting guests all-year round.”

The rustic kitchen, with its handmade bricks, hardwood beams and working fireplace that heats the whole home, is a beautiful communal space to entertain family and guests alike. This is a great opportunity for a family home or as a second residence for a true escape to the country.

The property will be auctioned on April 13 and has a price guide of $1.6million.

—

Address: 35 North Street, Windsor NSW

Price guide: Contact agent

Auction: April 13, 2024

Agent: Kon Stathopoulos, 0400 124 518 & Alastair Kivell, 0411 207 468, at McGrath Hawkesbury

 

Posted on

The neighbourhoods where being cool pays off

Anyone who thinks real estate is just a numbers game didn’t get the memo. There’s one serious X-factor when it comes to property values that’s less about stats and more about status. A cool neighbourhood is worth its weight in gold.

Time Out’s annual Coolest Neighbourhoods in the World list quite literally puts a collection of hip locations on the map each year. Coolness is judged on an area’s eateries, watering holes, public green spaces, its diversity and sense of community — a combination of factors that feed buyer demand.

Melbourne suburbs such as Brunswick East and Fitzroy have graced these lists in recent years, with Enmore and Marrickville representing for Sydney. Wherever the location, however, cool neighbourhoods all have similar ingredients.

For more stories like like, order your copy of the Autumn 2024 issue of Kanebridge Quarterly magazine.

What makes a neighbourhood cool

The coolest suburbs are usually the most inclusive places where anyone can freely eat, drink and socialise without the sense of being an “outsider”. 

Social demographer Mark McCrindle of McCrindle Research said diversity is a catalyst to cool.

“Australia likes a village atmosphere with a bit of a buzz,” McCrindle says. “That doesn’t come from a single age group, social or a monocultural group of residents. When there’s vibrancy and diversity of young people and couples, but also young families and retirees, it makes a neighbourhood more dynamic.

“It also needs to have a gathering place for people to get out and about. Some developments end up becoming “dormitory suburbs”.”

 Even good architecture and design are not always enough to create the right ambience, he says. 

“Without those essential gathering points people are simply just commuting in and out.”

While “walkable” suburbs have long been in demand, “talkable” suburbs are the new wave.

“It comes down to whether people can share it,” McCrindle says. “Great little food outlets, pubs or other hot spots can generate their own momentum accelerated by social media.

“But like anything on social media, trends can spike and then fade quickly. For an area to maintain its cool factor there needs to be a combination of things keeping locals committed so they’ll maintain the buzz.”

Buyer’s agent Michelle May says it can be tricky for a suburb to maintain its ‘cool’ appeal.

Although coolness adds value, affordability still needs to play its part. Sydney-based buyer’s agent Michelle May said it’s a delicate balance between cool and costly.

“The death of a cool suburb is when it becomes too affluent. 

“One sign of that homogenisation is when the big brands move in and push out those smaller local businesses who can’t afford to pay the high rents anymore,” she says.

McCrindle agrees property values can reach a tipping point.

“Ultimately, a neighbourhood can price itself out of cool.”

The value of a vibe

Australia’s priciest property is typically found by beaches, riverbanks and harbours — attributes rarely shared with the gritty urban nature of suburbs ranking high on the cool charts. Instead, these areas have other lifestyle features.

Melbourne and Sydney’s “cool” suburbs are far from water, but still record strong property values. There is, however, some price diversity in different housing types.

Sydney and Melbourne’s cool suburbs are far from the water but enjoy other attributes, such as inclusivity and good transport options.

Houses in Brunswick East have a 12-month median of $1.248 million according to CoreLogic, rising 11.5 percent over the past three years. Local apartments are cheaper at $515,000, experiencing a -13.4 percent drop over the same period. In Fitzroy the house median is $1.54 million after a three-year increase of 10 percent while units are $760,000, a -1.3 percent fall.

Cate Bakos, Melbourne buyer’s agent, has bought clients numerous homes and investments in both suburbs and their surrounds. She said in addition to the trendy eateries and vibrant atmosphere, it’s the ‘rough around the edges’ vibe of these areas that sets them apart.

“One thing in common in these neighbourhoods is they’re often former industrial areas close to city centres with a blend of eclectic housing,” Bakos says. “Former warehouses and factories are always popular — everyone loves a cool conversion.” 

In Enmore, house medians are $1.88 million after rising 33.4 percent over three years. Median unit values are harder to pinpoint but ranged from $395,000 to $958,000 in 2023. Marrickville’s houses are $1.9 million after a 31.3 percent leap, while apartments are $814,000, having gone up 3.4 percent. May says despite Enmore and Marrickville’s rising prices, the suburbs had been undervalued for decades and still hold onto many of the traits keeping them “cool”.

“Enmore Road is the street of the Inner West with really cool restaurants and bars, which are propped up by Enmore Theatre. Marrickville has its popular pubs — known locally as the Ale Trail — with plenty of microbreweries and frequent underground gigs.”

She says these suburbs’ multiculturalism, mix of housing types, range of price points and easy transport options tick all the boxes giving them street cred.

Dining out at venues such as Marrickville’s Camelot Lounge are appealing to a wide demogaphic. Credit: Destination NSW

“Singles are out having fun, there are hens’ parties, couples on dates and Boomers out for a nice dinner. There’s something for everyone,” May says. “The problem is when it gets too popular, too homogenised in terms of who’s buying in the suburb, that’s when it starts to lose its cool. But I don’t think we’re there yet for Enmore or Marrickville.”

The next cool place

Getting ahead of the property pack can be a wise real estate move, but forecasting cool isn’t black and white. Bakos says anyone trying to anticipate the next big thing should do their homework, because it’s not as easy as just looking next door.

“You’ll want to be looking for areas that have lower price points than their neighbours and lower land value per square metre while still having some of those activities and drawcards of the more popular neighbourhoods,” Bakos says. 

“What these suburbs also have in common are buildings that have been converted and repurposed. Simply cast your eyes to neighbouring suburbs with those attributes. I’m tipping places like Collingwood and Abbotsford (in Melbourne).

“If you’re going for something that’s gentrifying, you’ve got to recognise it hasn’t fully gentrified yet. That’s why you’re getting a discount, because it’s not yet a 10 out of 10. Perhaps there’s a higher crime rate, or challenging neighbours. You’ve got to be prepared to roll with that.”

Physically getting out and pounding the pavement to research local high streets can give the best insights according to May.

“Just cast your eye a few stops down the railway line and see what’s there. Look for good connectivity to the city, a mixture of residential as well as commercial resident properties,” she says. 

“Talk to the locals. Is the popular barista about to open their own cafe nearby? Are there signs of an eat street on its way? I’ve always thought Ashfield and Hurlstone Park (in Sydney) are still under the radar and pretty undervalued so there’s potential there.”

Posted on

‘Too Many Hours Waiting for Gelato in Capri.’ America’s Affluent Travellers Head Home.

Affluent U.S. travellers may be sticking closer to home for their big trips this year, travel industry experts say.

Blame it on the soaring cost of travel, unease about the war in the Middle East, or a desire to avoid the headache of sold-out hotels and crowds in popular tourist destinations..Whatever the reason, numerous signs indicate that more Americans with an eye toward luxury travel are opting for domestic vacations this year compared with last, when they ventured abroad in the wake of pent-up demand following the pandemic.

The Arhaus Lounge on courtyard at the White Elephant in Nantucket.
Chi-Thien Nguyen/Elkus Manfredi Architects

Lindsey Ueberroth , the CEO of Preferred Travel Group, comprising more than 1,000 high-end hotels, says that while the group’s international business remains strong, domestic stays have grown so far in 2024, with bookings for the months ahead showing the same rise.

“Airfare is pricey, and some people are avoiding international travel because of the uncertainty in the world,” she says. “As a result, they’re spending their money on pricey resorts in the U.S. instead.”

Ueberroth noted that Brush Creek Ranch in Wyoming’s scenic North Platte River Valley and Montage Kapalua Bay in Maui are two Preferred Travel Group properties that are proving to be top choices among its clientele.

The Harborview room located at the White Elephant in Nantucket.
Chi-Thien Nguyen/Elkus Manfredi Architects

Travel advisors also report a rise in bookings of domestic getaways.

Erica Neher, an advisor with Altour in Paris, is also seeing a renewed interest in domestic getaways from her U.S.-based clients. She says she thinks that the prohibitive cost of top hotels abroad is partially a cause. “I’m hoping the hotel prices start to come down because [uber luxury] travel is becoming unattractive to even those with no or unlimited budget,” she says.

Michael Holtz, the founder and CEO of the global travel firm SmartFlyer, says that its business is up 25% so far this year compared to last.

“Our U.S. bookings are robust. Domestic travel is easier than going abroad, and it can also be less expensive yet more luxurious,” he says.

Holtz cites the all-inclusive Twin Farms in Barnard, Vermont, as an example of a coveted U.S. hotel and says that it’s a scenic resort with great accommodations, cuisine, and service—a place where “the staff accommodates every guest need or want, plus more.” Destination-wise, he says that SmartFlyer’s clients are favouring Hawaii, Jackson Hole, Charleston and Nashville for their stateside forays.

The most significant evidence that affluent travellers have returned to domestic escapes comes from luxury properties themselves, many of which saw a wane or decline in business because their usual guests chose to go abroad as the world opened up from pandemic shutdowns.

Take Post Ranch Inn, a scenic 40-room oceanfront resort in Big Sur, California, where room rates start at US$1,625 a night. Co-owner and managing partner Mike Freed says that occupancy has consistently averaged about 80% a year since the property opened in 1992. Last year was the exception when the number softened.

“There’s no question that many of my regular guests over the years opted for international travel in 2023. Most went to Europe—Italy, France, Spain, and Portugal,” Freed says. “However, they’re back in 2024. Bookings are ahead of last year and already solid for our peak summer season.”

The living room of the Park suite at the White Elephant in Palm Beach.
Chi-Thien Nguyen/Elkus Manfredi Architects

Bill Hayward of Pebble Beach, California, and the president of a lumber company is among the return clientele. He has been staying at Post Ranch Inn since the early ’90s with his wife and says that they usually check in three times annually for between two and three nights each. “Last year, we changed it up by taking several trips to Europe,” he says. “It was catch-up travel after not doing it for so long, but now, we’re back on the Post Ranch Inn bandwagon.”

International air travel can be aggravating, Hayward says, and the couple agreed that it’s more convenient to take a break that’s closer to home.

“We pay around US$7,000 for a three-night stay. It’s cheaper than going to Europe and so much less hassle,” he says, saying the inn is their “happy place.”

Similar to the Big Sur hotel, White Elephant Resorts, inclusive of several properties on Nantucket in Massachusetts and one in Palm Beach, Florida, also saw a dip in demand in 2023, according to president Khaled Hashem . “2022 was a killer year for us with a 20% to 30% increase in business across the resorts, but in 2023, that number stayed flat depending on the property or rose marginally to 3%,” he says. “That is historically low for us as we usually go up between 7% and 8%, even during times of economic distress.”

Fast forward to today, and occupancy is up again at all resorts—Hashem says that the White Elephant in Palm Beach, where nightly room rates average US$1,200, is currently seeing 92% occupancy compared with 78% during the same period last year.

More evidence of this pattern is everywhere.

Brian Honan, the sales and marketing director for Ocean House, set on the water in Watch Hill, Rhode Island, says that currently, confirmed business on the books for the peak months of July and August is almost double what it was last year at this time. And booking pace is up approximately 40% compared to last year. “We are seeing not just increased demand but also that business is being confirmed nearly twice as fast,” Honan says.

At Baccarat New York, demand is growing even further after levelling out in 2023, says director of sales and marketing Rafael Nader. “For 2024, we may be seeing a return to 2022 levels, with our booking pace up nearly 10%,” he says. “This could be tied to a softening of the demand for European destinations, which saw hotel and airfare price points that were tremendously high, even for the luxury traveler.”

Irrespective of prices, Karon Cullen, a marketing consultant who lives in Savannah, says that travelling in America has made her recognise how “varied, beautiful, and rich” the country is. Her domestic trips have also been more enjoyable and leisure-filled. My husband and I learned our “stay in the U.S.A.” lesson last year after too many hours in the past waiting in lines for gelatos in Capri, museums in Paris, even for the fishmonger at a tiny town in Croatia,” she says.

Cullen and her husband recently stayed in a suite at Ocean House where they savoured long beach walks and has more local escapes in the works for the months ahead.

“The more we travel in the U.S., the more we appreciate the relative ease and diminution of stress,” she says.

Posted on

Chasing Passive Income, Americans Turn to Vending Machines

With a brick of cash in his hand and a grin on his face, Jaime Ibanez shows his half-million YouTube subscribers a path to earning money without burning many calories: Vending machines.

In videos with titles such as “This Is HOW MUCH My Vending Machines Made IN 7 DAYS!!” the swoopy-haired 23-year-old Texan makes the rounds to his 51 machines, stocking them and taking the profits.

His channel promotes the idea that with diligence and luck, anyone can go from snacks to riches.

Vending machines might seem an unlikely candidate for trending investment of the 2020s, but the idea has captured the imagination of Americans dreaming of easier money. Some pursue chips and soda as a side hustle because their regular paychecks aren’t enough for them to get by. Others bet on vending machines as a ticket to upward mobility, to quitting their jobs and becoming their own boss.

The startup cost is low and the formula simple. Buy a used machine for $1,500, load it up with products from Costco , charge a 100% markup and let the crinkled dollars roll in. But turning a profit takes real work, and the machines can be a losing proposition when stuck in locations without enough hungry foot traffic.

There is a fair amount of competition, too. America has three million vending machines, an $18.2 billion industry, with the average machine generating about $525 in monthly revenue, according to the National Automatic Merchandising Association.

More than half of operators bring in less than $1 million a year, according to trade publication Automatic Merchandiser. Many are individuals who have other jobs.

Social media has fuelled the notion of finding financial freedom in vending machines. Between 2019 and 2023, the number of posts or comments mentioning passive income and vending machines more than tripled on X and increased by a factor of six on Instagram, according to Sprinklr, a social-media management platform. Google search interest in passive income increased some 75% during that same period.

“There’s a real sense that doing things the so-called right way won’t necessarily land you in the middle class,” said Lana Swartz, a media-studies professor at the University of Virginia who researches financial technologies. “If the old rules no longer apply, then there’s a searching for new rules to get ahead or to get by.”

Some vending-machine newbies say they are on their way to building an automated empire. Others’ dreams get snagged like a bag of Funyuns on a faulty coil.

Making sales while you sleep

Last spring Rob Smith, a 30-year-old truck driver in Orlando, Fla., spent $4,000 on his first machine, a credit-card reader and a load of snacks and drinks.

He recently acquired his fourth machine, which is at an industrial bakery. His first three machines take up three to five hours of his week and bring in about $1,500 a month in revenue, which works out to roughly $750 in profit.

“I’ve made sales at four o’clock in the morning, when I was sleeping,” he said. “That machine is still working whether I’m there or not.”

He hopes to scale up to 30 machines and quit his job.

Smith started looking for extra income because his goal of buying a house felt out of reach with only his day job’s pay. He chose vending specifically after he witnessed a colleague complain about a malfunctioning machine at work and then use it anyway.

“He still put his $2 in,” Smith said. “I was like, ‘I need to get a vending machine as soon as possible.’ ”

Some budding vendors pay $300 or more for online courses to learn the trade. Smith relied on YouTube, Instagram and Reddit to get going.

At one point, he stocked a machine with orange soda against the advice he got in an online forum. When it didn’t sell, he and his family had to drink three dozen cans themselves.

Empty calories

Tom and Missi Hakes of Midway, Ala., started vending after Missi, 40, saw videos on YouTube about the business. The idea seemed more appealing than their stints driving for Uber, shopping for Instacart and trying to make it as YouTubers.

The Hakes, who both have full-time jobs in health insurance, scouted out locations in Atlanta, the closest big city and two hours away. After their best lead fell through, they paid a woman they found on Facebook Marketplace $500 to find a location for them.

She sent them to two spots that didn’t work out, including a cheerleading gym. The manager there was on board until she learned that the Hakes hadn’t operated a vending machine before.

Tom, 48, posted on a forum wondering how to address questions about their industry experience. At their next meeting, with the owner of a gym, they reluctantly followed some of the forum’s advice: They lied and said they had a few machines.

“We didn’t want to get another no,” said Tom.

He then spent a month repairing a used machine they bought for $1,400, staying up on some nights until 2 a.m.

When it was ready, Tom and Missi struggled to wrangle it into the 15-foot U-Haul truck they rented.

“Two people is not enough to move an 800-pound machine,” she said.

The Hakes spent about $2,500 on their vending business, as well as 20 to 30 hours a week for much of last fall.

They pay $50 a month to park it in the gym and it costs about $330 to fill up. It is currently grossing about $30 a week.

If anything, the income has been too passive, Tom said, “because it’s not really doing a lot of sales.”

If the machine isn’t selling more by summer, the Hakes will consider leaving the location, or perhaps vending machines overall.

Hit Facebook Marketplace, then Costco

Used vending machines of questionable quality sell online for as little as $500. More reliable ones cost in the range of $1,000 to $2,000, according to veteran vendors. A new machine with a touch screen and a robotic arm could cost upward of $7,000.

Many used machines have a maintenance issue about once a year, and they need to be cleaned. Cash is dirty, said Ben Gaskill of Everest Ice and Water Systems, a vending-machine maker. “Somebody digs around for coins in the bottom of their purse and it’s got grape jelly on it.”

Vendors shop warehouse stores like Costco and Sam’s Club to stock up. One machine’s worth of snacks or drinks can cost $200 to $300 a month. Owners then charge about twice what they paid for each product, or more. Prices of food from vending machines were up 10.6% year over year in January, according to Labor Department data.

The top-selling items in vending machines are cold drinks, snacks and candy, according to the latest data from Automatic Merchandiser magazine.

“No matter how healthy you try to make the machines, people are going to buy that Snickers bar,” said Lory Strickland, who sells courses and one-on-one coaching with her husband, Barry, under the name The Vending Mentors.

A never-vending story

Selling online classes and coaching can sometimes be more lucrative than a given moneymaking idea itself, said Swartz, the University of Virginia professor.

In online forums, she said, “there’s the joke that if there are people making courses about it, then it’s already oversaturated as a side hustle.”

To capitalise on interest in vending, some experienced operators started selling their expertise to supplement the income coming in from their machines. Some transitioned primarily to training.

Hyping the vending-machine dream predates the internet, though. The first machines in the U.S. sold gum and appeared on train platforms in 1888.

In the 1940s, media outlets cautioned about “get-rich-quick schemes” promoted by “unscrupulous agents involving vending machines.” In 1960, the magazine now known as Kiplinger Personal Finance warned of “vultures in the business” who promised “that an $800 investment may produce $200 a month, and that only a few hours of work a week are required to enjoy such rich pickings.”

Posted on

BigBear.ai Stock Tumbles on Weak Results. It’s Been an AI Favorite This Year.

BigBear.ai shares are down sharply in late trading Thursday after the AI software provider posted weaker-than-expected revenue for its fourth quarter.

BigBear shares, which been rallied 75% so far this year, are down 21% in late trading, to $3.06.

For the quarter, BigBear reported revenue of $40.6 million, up 0.5% from a year ago and below the Wall Street consensus forecast of $42.8 million.

The company posted adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, of $3.7 million. BigBear noted that it was its second straight quarter of profitability on that basis.

BigBear recorded a net loss for the quarter of $21.3 million, or 14 cents a share.

For 2024, BigBear is projecting revenue of between $195 million and $215 million, which is above the Street consensus of $174 million, but it’s not clear that the figures are comparable. The company last week completed the acquisition of Pangiam, a provider of AI-based vision systems, for $70 million in stock.

In a letter to shareholders, CEO Mandy Long said the company is not providing adjusted Ebitda guidance for the full year, “as we focus on the critical first steps of integrating Pangiam, and want to reinforce our commitment to moving the business forward and unlocking efficiencies of scale.”

Wall Street has been expecting adjusted Ebitda for 2024 of $7 million, according to estimates tracked by FactSet.

Posted on

Former Wells Fargo Advisors Sue the Company Over Cross-Selling

Two former Wells Fargo advisors are suing the firm for breach of contract, unfair business practices, and retaliation after they say they resisted pressure from their supervisors to secretly transfer sensitive client information from the advisor and brokerage side of the company to the private bank.

The advisors, Karen Keusayan and Richard Green, are also alleging that Wells Fargo improperly withheld deferred compensation after they resigned in 2021 and joined Morgan Stanley , where they are still registered.

In their complaint, filed in Los Angeles County Superior Court, the advisors describe themselves as high-producing employees who were loyal to the company even through the “nightmarish” years of 2015 to 2017, when Wells Fargo’s banking division was “publicly scorned” for the fake account scandal.

“This is not the ‘sour grapes’ case of a disgruntled employee(s) who sought a promotion and did not get one,” the advisors say in their complaint. “Neither Ms. Keusayan nor Mr. Green ever wanted to leave Wells Fargo. The goal for each had always been to retire at Wells Fargo.”

Wells Fargo declined to comment on the lawsuit.

The two advisors joined forces in 2015 to form a “production partnership,” according to the complaint, which says they grew their book of business to more than $1 billion by 2020.

In 2018, Wells Fargo introduced a new element to its advisor compensation plan, according to the complaint. Advisors were expected to complete forms called client discovery reviews, or CDRs, detailing information about advisory clients. The plaintiffs say they were directed by a compliance officer to keep the forms secret from the clients themselves.

Instead, the CDRs were intended for Wells Fargo’s private bank, “not the broker-dealer/financial services side where plaintiffs worked,” according to the complaint.

They contend that advisors were pressured to work with clients to complete CDRs, which would be secretly shared with Wells Fargo private bankers who could use them as sales leads.

Before submitting the forms to count toward a quota that resulted in additional compensation, the advisors had to check three boxes stating that they had discussed the information with the client, that the information was accurate, and that they had offered the client an opportunity to obtain a copy of the document. On that last item, the plaintiffs allege that Wells Fargo essentially instructed the advisors to lie, explaining that the document didn’t belong to the advisors, but the bank, even though the information came from their own clients.

“[H]igh-ranking compliance personnel at Wells Fargo Advisors repeatedly told plaintiffs to never deliver or present the CDR to the client since, as it was explained by compliance, the CDR was a bank document,” the complaint states. “Worse, plaintiffs were told not to inform the client that a CDR had been prepared.”

The plaintiffs say that these “dishonest instructions” put them in an “impossible position” and that they soon began raising concerns with their superiors. But each time they spoke out, they were told by their supervisors to continue submitting the forms as a requisite part of the company’s compensation plan.

The complaint describes the advisors’ growing unease with being pressured to falsify the CDR submission document, as well as concerns over the personal privacy of their clients, whose information was allegedly being shared internally without their knowledge or permission.

The advisors say that their bosses undertook a retaliatory campaign against them for continuing to raise objections to the CDR program, “including by failing to provide the banking support that plaintiffs and their clients had come to expect as a benefit of being associated with a large, full-service, retail bank,” according to the complaint.

They also say that the advisors felt their jobs were at risk, offering examples of a hostile or coercive work environment. “Mr. Green was berated by a yelling supervisor in front of fellow employees, and Ms. Keusayan was informed that the bank would not issue a routine credit card to her sister (a customer) if a CDR was not on file,” according to the complaint.

The advisors say the deteriorating work environment ultimately led them to resign around July 2021, after which they were informed that they were ineligible for large sums of deferred compensation—$662,000 for Keusayan and nearly $814,000 for Green.

The advisors are seeking to recoup the deferred comp they say they are owed, and are asking the court for additional damages, as well as an injunction barring Wells Fargo from engaging in the conduct alleged in the complaint, among other relief.

Posted on

The price women pay: less savings, less super and more financial stress than men

Australian women are facing more financial stress than men, with the cost-of-living crisis and high interest rates pushing more than 7 million women into financial difficulty, a new report by Finder shows. Women also have less savings, superannuation and fewer investments than men, and six in 10 Australian women say they are enjoying life less than they were a year ago due to money worries.

As International Women’s Day gets underway on Friday, Finder’s personal finance expert, Sarah Megginson, said cost of living pressures are having an outsized impact on women. “Millions of women have found themselves experiencing higher levels of financial worry, especially as rents and mortgages have soared, putting a lot of pressure on your budget.”

The report found 69 percent of women are experiencing financial stress today compared to 49 percent of men. Housing expenses are causing the most strain, with 42 percent of female homeowners finding it hard to make their home loan repayments compared to 32 percent of men. Due to women earning less, the average aspiring female property purchaser needs to work three more years than a man to accumulate a 20 percent deposit for a house. Among renters, 48 percent of women surveyed by Finder are struggling to pay the rent compared to 40 percent of men.

Women also have 53 percent less cash savings than men. The average woman has $22,680 in savings and puts away $551 a month. The average man has $48,087 saved and squirrels away $832 per month. In January 2022, women had 15 weeks’ worth of savings. Two years later, this has fallen to less than 13 weeks, while men’s savings have marginally increased from 17.9 weeks’ worth to 18.3 weeks now.

Making ends meet for the basics of life means women are investing less than men, Ms Megginson said. The average Australian male investor has $88,775 invested in shares, which is double that of the average woman, who has $45,125 invested.

“The outsized impact of cost of living pressures on women has likely restricted their ability to invest,” Ms Megginson said. “Right now, the focus is on immediate needs – housing, everyday bills and groceries – which means longer-term wealth building gets put on the back burner. The research shows us that women are actually really great at keeping their debt levels down and saving – they generally outperform men in this regard. Still, their long-term wealth suffers.”

Last month the Federal Government released the first gender pay gap report comparing the wages and salaries of men and women employed at nearly 5,000 private sector companies. The results show that 50 percent of employers have a gender pay gap of more than 9.1 percent, and 62 percent of median employer gender pay gaps are more than five percent and favour men.

Diana Mousina, deputy chief economist at AMP, said that while unconscious gender biases in the workplace exist, other factors also contribute to the gap. This includes a lower female labour participation rate of 62.6percent compared to 71.1 percent for men, and a higher proportion of women working part-time. This is largely due to women taking a greater share of child care responsibilities within families. Women also dominate lower–paid industries that offer more flexible hours, such as health care and social assistance, while men dominate the lucrative construction, mining and energy industries where there is higher risk and less flexibility.

Ms Megginson said women retire with far less superannuation than men. The latest data published by the Australian Taxation Office shows men had about 20 percent more in superannuation than women on 30 June 2021. Yesterday, Federal Labor announced it would pay superannuation on top of government-funded paid parental leave from 1 July 2025 if it wins the next election.

Posted on

TikTok Backlash as Congress Heads for Vote to Force Sale

TikTok urged its users to call Congress and lawmakers to drop a bill that could ban the popular video-sharing app in the U.S., and those users listened.

But the plan backfired. Instead of dropping the bill, which was introduced just two days ago, the House Energy and Commerce Committee approved it in a 50-0 vote Thursday afternoon. House Majority Leader Steve Scalise said he’s bringing it to a floor vote.

That was after beleaguered house staffers across the Capitol grounds endured hours of office phones ringing off the hook in an all-out push from TikTok users.

While TikTok the company has criticised efforts to ban it or crack down on it, this week’s legislative move prompted the social media company to appeal directly to users.

“TikTok is at risk of being shut down in the U.S. Call your representative now,” the app told its users when they logged into their accounts.

The app asked users to enter their ZIP codes and then directed them to their local congressional representatives.

TikTok was responding to a measure proposed Tuesday by Reps. Mike Gallagher (R, Wisc.) and Raja Krishnamoorthi (D, Ill.), co-chairs of the House Select Committee on the Chinese Communist Party, that claims TikTok “poses a grave threat to U.S. national security.”

TikTok, based in Singapore, is owned by China-based ByteDance, and that’s what lawmakers object to. The measure focuses on “foreign adversary controlled applications.” It would require ByteDance to divest of TikTok about five months after the law is passed, or risk being removed from app stores in the U.S.

That would make it illegal to distribute TikTok through any U.S. app store or from any U.S. web-hosting platform. TikTok says that is effectively a ban of the platform.

A TikTok spokesperson told Barron’s that “This legislation has a predetermined outcome: a total ban of TikTok in the United States.”

“The government is attempting to strip 170 million Americans of their Constitutional right to free expression,” spokesperson Alex Haurek said. “This will damage millions of businesses, deny artists an audience, and destroy the livelihoods of countless creators across the country.”

TikTok CEO Shou Zi Chew and others have repeatedly insisted that ByteDance and TikTok aren’t controlled by the Chinese government or Chinese Communist Party, and that U.S. user data is stored securely in Singapore and the U.S.

Krishnamoorthi said on X that TikTok has “launched a massive propaganda campaign, requiring users to call their representatives, and falsely labelling our legislation a ‘total ban’ of TikTok.”

“Phones are completely bogged down hearing from students, young adults, adults, and business owners who are all concerned at the option of losing their access to the platform,” a Republican aide told Axios.

The National Security Council has called the bill “an important and welcome step” to addressing risks to sensitive U.S. data, and the White House has said that if Congress passes it, President Joe Biden would sign it.

Posted on

Rivian Stock Is Flying After EV Maker Unveils Its R2 and R3 Models

Rivian Automotive stock was surging after the company introduced its new vehicle platform on Thursday.

Investors knew the car was coming, but the electric vehicle start-up sprinkled a couple of extra surprises in its presentation to the delight of its shareholders.

As its name suggests, R2—unveiled Thursday afternoon—is Rivian’s second vehicle platform. It’s a lower-cost product that should enable the company to widen its addressable market with a cheaper price tag. The R2 will start at around $45,000, and is slated to hit the streets in 2026.

The timing was the first surprise. CEO R.J. Scaringe said the car will ship in the first half of 2026. That brings some certainty for investors and, of course, the sooner the better.

“I’m so excited about this vehicle,” said Scaringe. “I’m so excited about what it represents for us as a company in terms of achieving scale.”

Rivian’s first platform, R1, is the base for the R1T pickup truck and R1S SUV. Those two vehicles start at around $75,000.

The R2 SUV shown at the event has Rivian’s trademark look. The vehicle—which could be called the R2S if Rivian sticks with its first platform’s naming conventions—is a smaller version of the R1S. The wheelbase is a little shorter than that of the R1S.

The R2’s per-charge range will exceed 300 miles and there will be a tri-motor version that goes from zero to 60 miles an hour in about three seconds.

The second surprise was another vehicle—the R3 and sportier trim called the R3X. It’s another vehicle that will be built on the platform. Pricing and timing for the R3 weren’t part of Scaringe’s prepared remarks. Rivian didn’t immediately respond to a request for comment.

Rivian shares were up 13.8% in late trading at $12.55, while the S&P 500 and Nasdaq Composite were up about 0.9% and 1.4%, respectively.

The stock had gotten a lift even before the R2 launch event, which started around 1 p.m. ET Thursday, thanks to a new call to buy the shares on Wall Street.

Earlier Thursday, Jefferies analyst Philippe Houchois launched coverage of Rivian with a Buy rating and a $16 price target.

“Rivian has looked closest to Tesla in spirit, with its own software stack, strong brand identity, global potential, and similar growth pain,” wrote the analyst.

(Product launch events weren’t what Houchois was referring to, looked a little like a Tesla product launch event run by Elon Musk.)

The cost of the new platform will be key, the analyst said.

Rivian “is facing two critical if not existential tests this year: (1) deliver a $35,000-to-$40,000 reduction in unit production costs from redesign, purchasing, and manufacturing efficiency; and (2) demonstrate the R2 model can be developed at a significantly lower cost than R1,” wrote Houchois in his coverage launch report.

The new vehicle and Buy rating should come as a relief for investors. Coming into Thursday trading, Rivian stock was down about 53% so far in 2023. Slowing demand growth for EVs, along with disappointing production guidance from Rivian, has pushed down shares.

Rivian expects to produce about 57,000 units in 2024, roughly the same amount produced in 2023. But Houchois sees a silver lining there.

“Slower EV demand and planned second-quarter [plant] shutdowns will constrain growth this year but could also help deliver the sharp $20,000 reduction in unit costs to achieve positive gross margin exiting 2024,” wrote Houchois.

Rivian hasn’t achieved the scale required yet to generate positive profits and cash flow. It delivered about 50,000 unit to customers in 2023. Tesla wasn’t producing consistent profits until it was delivering roughly four times that amount.

Wall Street expects Rivian to use about $4.3 billion in cash in 2024. It ended 2023 with about $9.4 billion in cash, and $10.5 billion in total liquidity.

Overall, 55% of analysts covering Rivian stock have Buy ratings, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Rivian stock is about $17.

Posted on

Eating in and staying home: Australian economic growth slows to pandemic levels as consumers cut back

Australian gross domestic product (GDP) grew by 0.2 percent in the December quarter and by 1.5 percent over 2023, according to figures from the Australia Bureau of Statistics (ABS). This is the slowest annual growth rate since the pandemic, driven largely by a fall in household consumption and consumer spending. In per capita terms, GDP actually fell by 1 percent over the year while the population grew by approximately 2.5 percent.

CBA Head of Australian Economics Gareth Aird said “momentum in the economy has ground to a halt”, with consumer spending weakening beyond the Reserve Bank’s (RBA) expectations. “On a per capita basis real consumer spending is down by a very large 2.4% over the year,” Mr Aird said. “Such an outcome would normally be associated with a large negative shock or recession. The weakness in the consumer lies at the heart of the soft GDP outcomes.”

Mr Aird said household consumption declined significantly on a per capita basis in 2023, and the RBA would be surprised by the level of weakness. He noted that in November, the RBA was forecasting annual household consumption to come in at 1.1 percent for 2023. The RBA lowered its forecast to 0.4 percent last month. The actual figure reported by the ABS yesterday is 0.1 percent.

“The RBA’s highly aggressive rate hiking cycle has clearly worked to slow demand growth in the economy,” he said. “Rising mortgage payments along with a lift in tax payable and the effects of elevated inflation have weighed on household purchasing power.”

Mr Aird said the interest paid on housing debt had increased by almost 40% over the past year.

“The ongoing expiry of ultra-low fixed rates will see interest paid continue to grow at a decent clip until the RBA cuts the cash rate. For context, interest paid on housing debt is up by a massive 162% from pandemic lows.”

Lower household consumption is being driven by cuts in discretionary spending because electricity, rent, food and health are costing more. Australians are eating at home more often and spending less on recreation, and fewer people are buying new cars, clothes or footwear.

The December quarter captures the Australian summer holiday period. During the quarter, there was a 9% fall in overseas travel spending as Aussies chose cheaper holidays, preferring destinations closer to home with New Zealand and Indonesia the most popular destinations.

Mr Aird notes the level of new home building in Australia has dropped well below where it was pre-pandemic. There was a 3.8 percent fall in residential property investment during the December quarter due to a major decline in new construction and renovations. “Against a big lift in population growth, the supply and demand mismatch in the housing market has put significant upward pressure on rents,” Mr Aird said. “It has also fed into the increase in home prices over the past year despite the big reduction in borrower capacity due to significantly higher mortgage rates.”

Mr Aird said business investment was “a bright spot” in the economy, up 8.2% over the year. This was largely due to an increase in non-residential and engineering construction over 2023. Katherine Keenan, ABS head of national accounts, said the key drivers of non-dwelling building construction in the December quarter were data centres and warehouses.

Posted on

The Newest Must-Have Home Amenity for the Rich: Purified Air

Visitors to John Bautista and Pedro Salrach’s San Francisco home can’t get enough of the lap pool, sauna and movie theatre. But they also get a whiff of something else they value: clean air.

“The house smells new—and after two years it still smells new,” said Bautista, an attorney. “I know when I’m home because it smells clean and fresh.”

The Glatts’ Maryland home has five HVAC units and eight thermostats to regulate air quality in individual zones. They also added UV lights to the system to prevent mould.
MELISSA LYTTLE FOR THE WALL STREET JOURNAL (4)

The six-bedroom home with seven bathrooms and two half-baths includes an elaborate air-filtration system meant to deal with the region’s varying air quality. The tightly sealed floor-to-ceiling windows and sliding doors offer hilltop views of the bay and access to the backyard without sacrificing air quality.

Bautista plans to further upgrade his system this year with the aim of filtering and recirculating indoor air rather than fresh outside air during periods of heavy pollution. Despite the home’s superior air quality, the family can still feel a difference on days when the outdoor air is filled with smoke. “We’ve suffered, as most people have in the Bay Area,” he said. “What we want to have is isolation.”

Developer Gregory Malin, who specialises in wellness-focused real estate, sold Bautista the home for $32 million, he said, plus an additional $5 million for fixtures and furnishings.

The Glatts gave priority to air quality in their $2.5 million home. PHOTO: MELISSA LYTTLE FOR THE WALL STREET JOURNAL

Luxury homeowners are known to splurge on sleek kitchens, custom decor and art, but they are increasingly turning their attention to something less visible. Forest-fire smoke, the pandemic and increased awareness of sensitivities to mould and other irritants are making their interior environment a priority.

Many are investing in complex systems and flexible designs that promise healthier indoor air but still include spaces, such as glass-enclosed rooms, that make being indoors feel natural.

Listings are increasingly touting pollution-fighting amenities to lure home buyers. In Santa Rosa, Calif., a 13-acre estate for sale at $15 million has a whole-home air purifier. This spring, the Dovecote building, under construction in Manhattan’s Harlem neighbourhood, will offer six, three-bedroom condos built to strict green and clean-air standards, starting at $1.5 million.

Malin, founder of Troon Pacific, a San Francisco-based developer of $15 million to $45 million properties that he calls healthy homes, said he focuses on the smallest details that can affect air quality. New tools allow for more-precise measurement of various particulate matter and carbon dioxide levels, he added. “Covid changed people’s perspective on connecting air quality to health, and the [wildfires] only enhanced that.”

The Bautista home has windows and doors that shut tightly so unfiltered outdoor air doesn’t seep in. PHOTO: JACOB ELLIOTT/TROON PACIFIC

 

The home has views of San Francisco Bay, Alcatraz Island and the Golden Gate Bridge. While the area’s air quality is generally good, wildfires cause spikes in air pollution. PHOTO: JACOB ELLIOTT/TROON PACIFIC

His company’s newer homes have exhaust fans, tied to ventilation systems, in laundry rooms and under sinks, where there are various pollutants and harmful cleaning products, said Malin. Their garages have separate exhaust fans that go on long enough for three air exchanges after the door opens. Ionisation-based filtration systems also are included to eliminate airborne particles too tiny to see but hazardous when inhaled.

His homes also feature perforated piping with in-line fans to exhaust air from under slab foundations to keep contaminated soil vapours from entering the houses.

He said his company is considering building to the Living Building Challenge standard, in which homes have their own electricity, water and waste management. Demand is high for such standards, he said, including passive-home construction, where airtight homes are built using specific materials and energy-efficient systems that circulate highly filtered air. He said passive-home certification is costly, especially for big homes, and has limitations that some homeowners don’t want, like bulky windows. In the long run, however, he said eliminating most heating and cooling bills is probably worth it.

Caroline Smythe used hemp block to build a more breathable home in Charleston, S.C. The building material absorbs moisture and keeps humidity steady in the home to prevent mold growth.
HADLEY HENRY FOR THE WALL STREET JOURNAL (4)

Clean air has become more of a talking point in homeownership, added Elliott Gall, an associate professor of mechanical and materials engineering who researches indoor-air quality at Portland State University.

While high-rises are often built to be airtight, there is a greater focus now on having windows that open while adding better filtration systems, he said. Units with outdoor access sometimes give homeowners another way to control the humidity and indoor air-pollution levels inside the home, he added.

To improve the air quality in her new Charleston, S.C., home, Caroline Smythe, 67, imported a hemp block covered in a mixture of lime and sand for the construction, rather than standard brick. Living in a high-humidity area means moisture can cause mould, said Smythe, whose 2,400-square-foot Lowcountry home was completed in 2023 for about $1 million, including $250,000 for the land.

Incorporating the new material allows the moisture to get absorbed in the walls and keeps humidity steady in the home. “It has very much an earthy feel,” said Smythe of her thick, soundproof walls.

Inside, the home’s two bedrooms and two offices have additional air-filtration elements, including stand-alone air filters for each bedroom. Smythe, a psychiatrist, chose a bamboo kitchen countertop and mineral-based wall paint to prevent any chemical off-gassing. “It makes a huge difference,” she said.

Homeowners have long tried to improve air quality. In the early 1900s, homes that let in fresh air were critical to good health, but by the 1950s some owners were trying to tame outdoor air pollution by focusing on better insulation. More recently, the pandemic made access to outdoor air essential, and turned the focus again to indoor-outdoor living.

Today’s picture is mixed. Climate change has made outdoor air quality less reliable, with the added problems of prolonged forest fires.

Many people are realising their indoor air quality is often compromised by a combination of poor indoor airflow, activities like cooking and cleaning, and outdoor pollutants that settle into confined spaces, said Gall. Homeowners now want better control over their wider living space, including modifiable systems that deal with both indoor and outdoor pollution, he added.

In Manhattan, the Charlotte of the Upper West Side has seven full-floor units. A heating-and-cooling system filters fresh air directly into each unit. The air is also treated with UV light. PHOTO: JOSHUA MCHUGH

Jason Glatt, a commercial window contractor, and his wife, Lauren Glatt, a stay-at-home mom, of North Bethesda, Md., built a $2.5 million home that includes a children’s slide into a basement playroom, an attic-level cigar room and plenty of entertaining space.

The 11,000-square-foot home’s most striking feature, however, may be the five HVAC units tucked inside utility closets and other closed rooms, controlled by eight thermostats that regulate the air quality as well as temperature in each part of the home. Their $120,000 HVAC system also includes UV lights to prevent mould.

Seth Ballard, an architect who worked with the Glatt family, said individually controlled temperature zones and more return-air vents promote better air flow. Costs can be $100,000 to $200,000 for a 10,000- to 15,000-square-foot house. “They are choosing this over a kitchen countertop,” he said of homeowners in general.

The Charlotte’s air-filtration and passive-home construction added an estimated 15% to building costs. PHOTO: CHRISTOPHER PAYNE/ESTO
Contact: kristen@m18pr.com

Charlotte of the Upper West Side, a building in Manhattan that opened in 2023, has seven full-floor units, each with a private entrance. The building has airtight construction with enhanced insulation. Each unit has an independent heating-and-cooling system with fresh-air filtration directly into the home that isn’t shared with other spaces.

The system can achieve full air exchange 13 times a day in normal-use mode and more than 28 times a day in boost mode, said the building’s developer John Roe of the New York-based Roe Corp. The building uses louvers outside the windows to deflect the heat of the sun and cut energy use on summer days.

Roe, who lives in one of the building’s 3,570-square-foot, four bedroom, 4.5-bathroom homes, said the air-filtration system and strict passive-home construction added 15% to the building cost.

Three of the building’s units are on sale, from $8.35 million to $17 million.

He said there is little dust in the home, and he swears it now takes longer for his cut white hydrangeas to wilt.

Posted on

Karl Lagerfeld’s Home on the Seine in Paris to Sell at Auction This Month

The minimalist Paris apartment that was the home and studio of the late fashion icon Karl Lagerfeld is headed to auction later this month with a starting price of €5.3 million (US$5.77 million).

Nestled in the heart of the Saint-Thomas d’Aquin district, on the city’s Left Bank, the roughly 2,800-square-foot spread will go under the hammer on March 26 at the city’s Chamber of Commerce and Industry, according to a news release from the Paris Notaires Services, which plays an essential role in French real estate transactions.

The apartment is on Quai Voltaire, a Seine-front street, and within a historic building dating from 1694 that belies the contemporary home inside that was Lagerfeld’s until his death in 2019 at the age of 85.

He told the New Yorker in 2007 , as he was moving into the property, that living there would be “like floating in your own spaceship over a very civilised past.”

The home has a stainless steel kitchen.
Mediacorp

Located on the third floor, the apartment has a sprawling living room with a panoramic view of the Seine, polished concrete floors, and walls of towering glass bookshelves that once held the designer’s vast collection of books.

The avant-garde space “embodies Lagerfeld’s visionary aesthetic,” with an “ambiance that is both luxurious and design-oriented,” the news release said.

Elsewhere in the achromatic home is a bedroom overlooking a courtyard, a dressing room, a shower room, a bathroom and a professional-looking stainless steel kitchen.

The entire home, including the bathroom, has a modern aesthetic.
Mediacorp

The auction “represents a rare opportunity to acquire a part of the history of fashion and of French cultural heritage,” according to Paris Notaires Services.

Much of the furniture and art that one filled the apartment has been sold at auction across a series of Sotheby’s sales .

With his iconic signature style of black sunglasses, fingerless gloves and high-starched collars, Lagerfeld was the long-time creative director of Chanel and creator of his own eponymous fashion label.

The apartment’s giant living room has polished concrete floors and walls of glass bookshelves. MEDIACORP
Posted on

Build Your Own Rolls-Royce: Inside the Arcadia Droptail Roadster, the Latest From the Company’s Coachbuild Operation

Rolls-Royce’s Bespoke division is exclusivity personified, and the highest rung in that ladder is Coachbuild—which goes far beyond selecting unique colors or interior finishes and gives customers the chance to help design their own new cars.

The first of the Coachbuild cars was the Phantom-based Sweptail, hand-built over four years, reportedly for Hong Kong businessman Sam Li. It has a dramatic fastback roof that was a hit when revealed to the public in 2017. Rolls didn’t confirm the car’s cost, but some reports said more than US$12 million. The Sweptail has been spotted on the road in Europe.

The Droptails are Rolls’ first roadsters in modern history.
Rolls-Royce

The Boat Tail, shown (above) in 2021 and built on the Architecture of Luxury platform with Phantom V12 power, was the first commission from a consortium of three couples. It’s a unique convertible with a carbon-fibre parasol that opens to shade its occupants during al fresco parties. Beyoncé and Jay-Z are reported Boat Tail owners. Argentine footballer Mauro Icardi is said to be another keeper of the keys. The purchase price of these cars is around US$28 million, sources say.

There will be a total of four Droptail roadsters created, and these now include the Amethyst Droptail and the La Rose Noire Droptail, each with unique rear-deck treatments and personal detailing throughout. The newest, third commission is Arcadia Droptail, which will come with a removable hardtop (and no soft top). The car will be delivered to an international client in Singapore, said Rolls’ Americas spokesman, Gerry Spahn. The price tag is likely in Boat Tail territory.

Arcadia was known in Greek mythology as a place of “Heaven on Earth.” The one-off car has a vivid recessed wood-panelled rear deck that took 8,000 hours to create, according to the company, and recalls vintage Chris Craft power boats—or woodie station wagons. It’s in left-hand drive, reportedly to better facilitate its use around the world. Rolls used a 3-D environment to show the client how the car would look in various locales.

“Coachbuild commissions like Droptail Arcadia are immediately the classic Rolls-Royce collectibles. Coachbuild is more than Bespoke, it’s the ultimate personal statement,” says Martin Fritsches, president of Rolls-Royce Motor Cars in North America.

Alex Innes, head of Coachbuild Design, added (in a statement) that the Arcadia is “one of the most faithful expressions of an individual’s personal style and sensibilities we have ever created within the Coachbuild department.”

Design inspiration for the Arcadia came from sky gardens in Singapore, Indonesia, and Vietnam, in addition to British “biometric” architecture.

The white paint is infused with aluminium and glass particles to give it depth and shine. The lower sections of the Arcadia Droptail are in carbon fibre, painted silver. The wood on the rear panel is mirrored on the dashboard (in Santos Straight Grain veneer), door linings, and central armrest. The wood pieces were mounted on stiff bases developed using carbon-fibre layering techniques derived from Formula One racing.

The Arcadia Droptail has a unique wood panel on its rear deck.
Rolls-Royce

The hardtop, in a contrasting dark colour, slants down to a short rear greenhouse, giving the car a racy look. The doors are rear-hinged, with prominent chromed handles. The nose and grille are somewhat rounded, with narrow horizontal headlights, yielding a more aerodynamic prow than is customary in Rolls-Royce history.

The dash’s crown jewel is a clock with a face that took five months to assemble, after two years of development. Its raw metal geometric guilloche pattern has 119 facets. Rolls describes it as “the most complex Rolls-Royce clock face ever created.” The hands are partly polished and partly brushed, and have 12 hand-painted “chaplets” (hour markers) that are only 0.1 millimetres thick.

Many automakers are establishing bespoke divisions, but Rolls-Royce is, per tradition, taking it further than others.

Posted on

Yes, Even Cookie Monster Is Upset About ‘Shrinkflation’

Cookie Monster is a blue furry muppet who lives on a fake street, but even he is sick of a real menace in supermarket aisles.

“Me hate shrinkflation!,” the “Sesame Street” character wrote to his 626,000 followers on X. “Me cookies are getting smaller.”

Shrinkflation—when companies shrink their products but not the price—has been a hot topic as Americans spend more of their disposable income on food than they have in 30 years . Shrinkflation saves companies money, but politicians have called it greed. It’s been showing up everywhere: fewer sheets of toilet paper in a roll; less juice in a bottle; or in Cookie Monster’s case, smaller cookies that cost the same as when they were bigger.

President Biden has been critical of shrinkflation lately, calling it “a rip-off” by companies who he said are giving Americans less for every dollar they spend.

“As an ice-cream lover,” Biden said in an Instagram video posted last month on the same day as the Super Bowl, “what makes me the most angry is that ice-cream cartons have actually shrunk in size but not in price.”

On Monday, the White House weighed in on Cookie Monster’s post.

“C is for consumers getting ripped off,” the White House posted on X . “President Biden is calling on companies to put a stop to shrinkflation.”

Sen. Elizabeth Warren (D., Mass.) told Cookie Monster she and Sen. Bob Casey (D., Pa.) “have a bill for that.”

Called the Shrinkflation Prevention Act, the bill was introduced by the Democratic senators last week. It would give the Federal Trade Commission and state attorneys general the authority to punish companies engaging in shrinkflation.

Snacks such as chips and cookies have become 26% more expensive since January 2019, according to a report by Casey released in December . Nearly 10% of the price increase was due to shrinkflation, the report said.

Oreo fans have noticed less cream in the black-and-white cookies, but the company behind them has said there hasn’t been a change to the cookie-to-cream ratio. French supermarket chain Carrefour started attaching labels to products in September warning shoppers of what it deems to be shrinkflation. And even the rich and famous have noticed: Rapper Cardi B has ranted about high inflation and rising lettuce prices . “Naaaaaa,” she tweeted last year, “grocery shopping prices are ridiculous right now.”

David Chavern , the chief executive of the Consumer Brands Association, which represents major food makers, said industry leaders understand the pressures of inflation on Americans and have asked to meet with Biden.

“This is a serious issue and needs responsible leadership, not gimmicks or muppet memes,” he said. “In the meantime, we will continue our efforts to provide the best products at the most competitive price.”

“Sesame Street” characters have been diving into real world issues on social media, gaining differing reactions from politicians.

When the Covid-19 vaccine was approved for children, Big Bird tweeted he got the shot.

“My wing is feeling a little sore, but it’ll give my body an extra protective boost that keeps me and others healthy,” he wrote .

Republican Texas Senator Ted Cruz   tweeted that it was , “Government propaganda…for your 5 year old!”

In January, Elmo asked a question on X : “How is everybody doing?,” only to get inundated with replies from people talking about their mental health and saying how bleak their lives are, garnering a tweet from Biden.

“I know how hard it is some days to sweep the clouds away and get to sunnier days,” Biden responded to the red muppet . “Our friend Elmo is right: We have to be there for each other, offer our help to a neighbour in need, and above all else, ask for help when we need it.”

Representatives for “Sesame Street” didn’t respond to requests for comment Tuesday.

As for Cookie Monster’s shrinkflation rant, Edgar Dworsky is happy to have more allies.

“I’ve been campaigning against shrinkflation for more than three decades,” said Dworsky, who calls out companies engaging in shrinkflation on his websites ConsumerWorld.org and MousePrint.org. “I welcome the help of such prominent figures as Cookie Monster and of course, the president.”

In the meantime, Cookie Monster seems to have found his own shrinkflation solution.

“Guess me going to have to eat double da cookies!,” he tweeted .