ArtNet : Sotheby’s Emily Fisher Landau Sale Is Most Valuable Ever for a Female C

Sotheby’s Emily Fisher Landau Sale Is Most Valuable Ever for a Female Collector, Nets $406 Million
An Agnes Martin set an artist's record for $18.7 million

Over 102 years of life, noted art patron Emily Fisher Landau acquired around 1,200 works of art. This evening (November 8), Sotheby’s presented 31 of them during an evening auction (which will later be complimented by a day sale of another 82 works) that managed sturdy results amid a precarious time for the art market.

While last night’s auction at Christie’s reminded us that the choppy waters of the art market this summer and fall have not exactly calmed, this has been a markedly more stable period for single-owner sales, as indicated by the recent London auction season (you’ll recall that the Sam Josefowitz collection accounted for $63.2 million of Christies’ net earnings this season across the pond.)

The white-glove Fisher Landau sale continued this trend, netting out as the most valuable auction dedicated to a female collector in auction history, bringing in $406.4 million. Its pre-sale estimate was $344.5 million to $430.1 million.

The most anticipated lot of the evening was Pablo Picasso’s Femme à la montre, a canonical cubist portrait of his muse Marie-Thérèse Walter from 1932 from the artist’s annus mirabilis. The piece was estimated to sell “in excess of $120 million,” and had remained in Landau’s collection since 1968, when she acquired it from Pace Gallery in New York.

Femme à la montre was teed up to perhaps become the most expensive Picasso work ever sold at auction, but came in short at $139 million, making it the second-most expensive piece by the modernist master to ever trade via the auction block (the current record still stands at $179 million). That said, Femme à la montre still achieved the highest sales price of any work to come to auction all year.

While the Picasso’s fate may have been a bit deflating to the mood, Agnes Martin became the star of the show—her moody, gold leaf-speckled minimalist abstraction Grey Stone II sold to French art dealer and collector Phillipe Ségalot for $18.7 million, which tripled its low estimate of $6 million, and trumped her previous auction record of $17.7 million for Untitled #44 | 《無題 #44》(1974).

Meanwhile, Mark Tansey set his personal record for Triumph Over Mastery II, at $11.8 million, surpassing his previous record of $7.5 million for SOURCE OF THE LOU (1988). And a record was set for one of 26 flag pieces created by Jasper Johns for a 1986 piece titled Flags which went for a healthy $41 million on its estimate of $35 million to $45 million.

The audience was replete with engaged dealers: Dominique Lévy with business partner Amalia Dayan, Amy Cappelazzo, Loic Gouzer, Larry Gagosian, to name a few. Outside of the room and over the phones, Asia-based bidders were making their presence known, most notably with an untitled chalkboard work by Cy Twombly, which went to a collector in Asia for $26.76 million.

Another high point of the evening was the sale of three works by Ed Ruscha, who has a career retrospective a few streets over at the Museum of Modern Art and was a personal favorite of Landau. Securing the Last Letter (Boss) sold for $39.4 million, coming in dead center of its $35 million to $45 million estimate. Another text-based painting, Mint (Green), surpassed its high estimate of $10 million, netting $12.9 million, and another painting with his American flag motif, Ruscha’s Plenty Big Hotel Room (Painting for the American Indian), was estimated for $5 million to $7 million and sold for $6.1 million.

The sale ended with a portrait of Landau herself by Andy Warhol.

Landau, who famously used the settlement from a jewelry heist out of her own home to kickstart her own art collection, stares off defiantly into the distance in Warhol’s regal looking rendering of her. The piece sold for just over half a million dollars, reminding those in the room before they took off for the evening of her famous ethos on collecting: “If a person is a true collector, nothing will stop them from getting what they want.”

ArtNEt : Emily Fisher Landau’s Prized Picasso Nets $139.4 Million at Sotheby’s,

Emily Fisher Landau’s Prized Picasso Nets $139.4 Million at Sotheby’s, Achieving the Second-Highest Price at Auction for the Spanish Artist
The painting depicts Picasso's 'golden muse' Marie-Thérèse Walter.


A painting by the famed cubist Pablo Picasso of his lover Marie-Thérèse Walter was sold with a hammer price of $121 million at Sotheby’s highly anticipated Emily Fisher Landau sale, who considered it the jewel of her collection and hung it over the mantle in her home.

Sotheby’s won the honor of handling the estate of Landau, a longtime member of the board of the Whitney Museum of American Art who also had a private museum, earlier this year. With an estimate of $120 million, Picasso’s Femme à la montre was the cornerstone of the blockbuster sale.

Bidding started at $95 million and quickly went to $115 million, meeting its $120 million estimate after a two minute stand-off between three phone bidders, including at least one from Asia. Ultimately, Brooke Lampley—the house’s head of global fine art bidding on behalf of client—won with a $139,363,500 price after taxes and fees, a rather anticlimactic result that met polite if muted applause from the audience.

“At the end of the day, this is an exceptional price and an exceptional result with real competition,” Julian Dawes, the head of impressionism to modern art for the Americas at Sotheby’s, told Artnet after the auction.

The painting depicts Walter, known as Picasso’s “golden muse,” and was created soon after the end of the secrecy around their affair. The pair first met in 1927 outside the Galeries Lafayette in Paris when Walter was just 17 years old and Picasso, then 45, was still married to the Ukrainian dancer Olga Khokhlova, the mother of his son Paulo.

“It’s just this love affair collectors around the world have with Marie-Thérèse Walter as the subject that elicits the most romantic, kind of delirious, effect on people,” Dawes said. “That was obviously how Picasso felt and I think that comes across in his work. For some reason, that is what resonates with audiences more than any of these other, other, other women.”

Ahead of the sale, Sotheby’s heralded the work as one of the most significant of the artist’s to go up for auction since 2010, though two other paintings from the same year depicting Walter have sold in recent years. His Femme nue couchée sold for $67.5 million at Sotheby’s New York in 2022 while Femme assise près d’une fenêtre fetched $103.4 million at Christie’s New York in 2021.

“The sharpness of this, the intensity of the colors and the overall purposefulness of the composition, I think is just like a world apart. The price that that work achieved is a testament to the iconic nature [of Picasso’s works in 1932],” Dawes said.

Scholars consider 1932 a highly creative year for Picasso and his numerous paintings of Walter from that period even sparked a 2017 show at the Tate Modern.

A 1937 portrait of Walter by Picasso was sold by the auction house in 2018. Estimated before that sale at £36 million, it ultimately sold for £49.8 million ($69.2 million) after fees.

But Sotheby’s considered Landau’s Picasso of special note, featuring it prominently with delicate lighting at the entrance to the preview exhibit ahead of the sale.

“If I’m willing to spend $140 million, what could I get that’s better than this?” Dawes said, putting himself in the minds of the collectors. “Nothing that’s available. Nothing that’s barely anything that’s even in private collections, let alone for sale, let alone ever going to trade at a price that is near this this year.”

FT : Israel says spy agency Mossad helped foil terror plot in Brazil

Israel says spy agency Mossad helped foil terror plot in Brazil
Two arrested in São Paulo after Hizbollah cell was alleged to have been planning an attack on Jewish targets

Israel claimed to have helped foil an attack on Jewish targets allegedly planned by Hizbollah in Brazil, where authorities arrested two people on terror charges.

Police in Brasília on Wednesday said the arrests in São Paulo were part of an operation to “interrupt preparatory acts of terrorism” and obtain evidence about the possible recruitment of Brazilians to carry out extremist acts in the country. 

They also served 11 search and seizure warrants in the states of Minas Gerais, São Paulo and the Federal District. The suspects were not named. 

The Israeli prime minister’s office said in a post on its website that spy agency Mossad was involved in thwarting an alleged plot in the South American nation and named Iran-backed Lebanese paramilitary group Hizbollah as behind it. 

“The Brazilian security services, together with the Mossad and its partners in the Israeli security community, alongside additional international security and enforcement agencies, have foiled a terrorist attack in Brazil, which had been planned by the Hizbollah terrorist organization, directed and financed by the Iranian regime,” the statement said.

Mossad thanked Brazil’s law enforcement for arresting what it called a “terrorist cell that was operated by Hizbollah in order to carry out an attack on Israeli and Jewish targets in Brazil”, in the statement from the prime minister’s office.

Brazilian authorities declined to comment on the alleged Hizbollah connection or the intended targets.

“The recruiters and those recruited must respond to the crimes of forming or joining a terrorist organisation and carrying out preparatory acts of terrorism, whose maximum penalties, if added together, reach 15 years and 6 months in prison,” the federal police said.

Security and intelligence agencies in a number of countries have been on alert to the threat of potential terror attacks following the outbreak of war last month between Israel and Hamas militants based in the Gaza strip. 

Brazil is home to Latin America’s second-largest Jewish population, after Argentina, numbering 120,000 people, according to the Confederação Israelita do Brasil, which represents the community there.

It also has 3.2mn inhabitants of Lebanese origin or ancestry, according to a survey commissioned by the Arab-Brazilian Chamber of Commerce.  

“We have known for a while that Hizbollah has people here in the northern area, closer to Venezuela, and in the triple border in Foz do Iguaçu [region with large waterfalls]. We have heard for a long time that there is a presence there,” Israel’s ambassador to Brazil, Daniel Zonshine, told CNN. “But we didn’t know they had activity here.”

FT : Approval for Eli Lilly obesity drug sets up rival to Wegovy

Approval for Eli Lilly obesity drug sets up rival to Wegovy
US and UK regulators say diabetes medication showed ‘significant’ weight loss benefits

Regulators on both sides of the Atlantic have cleared Eli Lilly’s injectable diabetes medication for use as a weight loss treatment, creating the first direct rival to Wegovy, Novo Nordisk’s obesity drug.

The US Food and Drug Administration and the UK’s Medicines and Healthcare products Regulatory Agency said patients in clinical trials of Lilly’s tirzepatide had seen “significant” weight loss compared with those given a placebo. At the highest dose, patients had lost nearly 50lbs on average, Lilly said.

The regulators cleared the drug for weight-loss use for obese and overweight adults in conjunction with a lower-calorie diet and increased exercise. Tirzepatide is already sold under the name Mounjaro as a diabetes treatment in both countries. It will keep that brand name in the UK as an obesity treatment but will be sold in the US as Zepbound for weight loss.

About 70 per cent of adults in the US and 64 per cent in the UK are obese or overweight, according to the FDA and the House of Commons library. It contributes to some of the most common causes of death, such as heart disease, stroke and diabetes.

“Today’s approval addresses an unmet medical need,” said John Sharretts, director of the diabetes and obesity division in the FDA’s Center for Drug Evaluation and Research in a statement. 

Steve Barclay, the UK health and social care secretary, hailed Mounjaro’s potential to help cut waiting lists and save the National Health Service “billions of pounds”.

Tirzepatide will compete head on with Novo Nordisk’s Wegovy, which has come to dominate the market for so-called GLP-1 weight-loss and diabetes management drugs with a 54.3 per cent global market share. 

Tirzepatide is the first approved treatment that uses two agents, called dual agonists, including both GLP-1 and GIP. That made it more potent than Wegovy, said Fatima Cody Stanford, an obesity medicine physician and associate professor at Harvard Medical School and Massachusetts General Hospital. 

“This new agent is the most efficacious of the [weight-loss drugs] we have seen so far,” she said.

Beverly Tchang, an obesity medicine physician at Weill Cornell Medicine and diplomate of the American Board of Obesity Medicine, said the medical community was “extremely excited to have the official FDA approval of tirzepatide for the treatment of obesity”.  

“The only people more excited than we are my patients,” she said.

The side effects of Eli Lilly’s and Novo Nordisk’s obesity treatments are very similar, and patients could switch from one to the other, Stanford said. Studies show that, as with Wegovy, patients who stop taking tirzepatide see a quick rebound in weight. 

Lilly expects to sell the new jab at a list price of nearly $1,060, but said this would be 20 per cent lower than Wegovy. David Risinger, a Leerink analyst, said in a note on Wednesday that the company had designed its pricing to encourage coverage in employers’ health insurance plans.

Novo Nordisk has struggled to meet the demand for Wegovy, leaving many patients facing supply issues that have interrupted their treatment for a month at a time in some cases, said Tchang. Interruptions led to weight gain and psychological challenges for patients who were meant to take the drug continuously, she said.

FT : Bob Iger pledges to cut another $2bn from Disney’s cost base

Bob Iger pledges to cut another $2bn from Disney’s cost base
Chief executive says studios will make less content but concentrate on quality after ‘losing focus’

Walt Disney reported stronger-than-expected earnings for its most recent quarter and forecast that it would cut another $2bn from its costs while generating higher levels of cash in the coming year.

The results come almost a year after Bob Iger returned to Disney as chief executive to replace his handpicked successor, Bob Chapek. They reflected “significant progress” over the past year, Iger said, which had allowed the company “to move beyond the period of fixing and begin building our businesses again”.

Iger said he was personally working to improve the content coming out of Disney’s studios, which he said had suffered in part because of the pandemic. “Performance from a quality perspective has not been up to the standard we set for ourselves,” he said. “We lost our focus.”

The studios would now “make less and focus more on quality”, Iger said.    

The group’s earnings of 82 cents a share in the fourth quarter exceeded Wall Street forecasts of 70 cents, thanks in part to a 31 per cent increase in operating income at its theme parks and experiences business. It raised its target for annualised cost cuts from $5.5bn to $7.5bn.

Iger said his priorities included achieving profitability in Disney’s streaming business, transforming the ESPN network into the “pre-eminent digital sports platform”, reigniting the creative spark at its film studios and stoking growth at its theme parks.

Disney’s shares have fallen more than 15 per cent over the past year, prompting a new challenge from activist investor Nelson Peltz of Trian Partners, who is seeking three board seats. The shares were up 3 per cent in after-hours trade.

In a call with investors, Disney said it had cut 8,000 jobs, reduced its content spending and made plans to reduce costs further — steps it said would lead to free cash flow of about $8bn in fiscal 2024.

Investors have been focused on Disney’s cash position as it prepares to acquire Comcast’s 33 per cent stake in Hulu. Disney will pay an initial $8.6bn for the stake in December, but the final sum will depend on an appraisal process which is expected to conclude next year.

Disney said its improved outlook for cash flow would let it reinstate a small dividend, having suspended payments to shareholders during the pandemic. Kevin Lansberry, interim chief financial officer, also floated the idea of a share buyback programme.

Those plans come as Disney is moving aggressively to cut its losses in streaming. Disney’s streaming business lost $387mn in the quarter, down sharply from the $1.47bn loss a year ago that shocked the markets and contributed to Chapek’s dismissal. The company held to its target of reaching profitability in streaming by the fiscal fourth quarter of 2024.

The Disney+ streaming service added nearly 7mn subscribers, helped by the addition of Elemental, Little Mermaid and Guardians of the Galaxy Vol. 3, which were released in cinemas earlier in the year.

However, subscriptions fell 7 per cent at Disney+ Hotstar, the group’s streaming service in India, where Iger is examining whether to sell stakes in its Disney Star businesses or potentially shed its entire holding.

“We’re considering our options there,” Iger said on Wednesday. “We’d like to stay in that market but we also are looking to see whether we can strengthen our hand.”

Disney’s traditional television networks, including ABC, reported a 9 per cent revenue decline in the fourth quarter due to a weak advertising market. But programming and production costs fell in part due to the Hollywood strikes.

Despite the decline in TV, Iger said he was optimistic about the prospects of transforming ESPN into a digital sports business. A full-service ESPN streaming service would ultimately be included in a bundle with Disney+ and Hulu, he added. “If you think about the portfolio of streaming assets that we will have, Hulu, Disney+ and ESPN, that’s a very, very strong hand.”

FT : How Israel’s spymasters misread Hamas

How Israel’s spymasters misread Hamas
Overconfident intelligence agencies missed multiple warnings before October 7 attacks in a ‘failure of imagination’

For two years, Menachem Gida wrestled with a dark sense of foreboding.

The communications hobbyist was part of a team of volunteers who, using a “satellite farm” in southern Israel, compulsively monitored Gaza’s communications networks and Arab media, passing on nuggets of information to the Israeli military.

It was a semi-formal relationship. But when they repeatedly warned that Hamas fighters were conducting elaborate war games near the border, the amateur snoops were brushed aside. “The Israeli military officer told us: ‘You’re not important, we don’t need you,’” Gida said.

Gida was not alone. Michael Milstein, an ex-military intelligence officer, told his former colleagues and wrote numerous articles in the press saying that Israel’s approach to Hamas wasn’t working — although nobody paid much attention. “The writing was on the wall,” said Milstein, a former government adviser on Palestinian affairs in Gaza and the West Bank. “Hamas was preaching war.”

Even warnings from Israel’s Combat Intelligence Corps, which monitors the country’s frontier with Gaza, were ignored. One soldier, Noa Melman, told her superiors earlier this year that Hamas militants were practising attacks on a mock fence, blowing it up again and again.

“But everyone treated it like it was normal, like it was routine,” she said in a subsequent television interview.

On October 7, Hamas unleashed a disaster even worse than the bleakest premonitions of Gida, Milstein and Melman. At about 6.30am, under the cover of a massive missile barrage, more than 1,500 Hamas militants knocked out Israel’s border communications with explosive-laden drones, breached the security barriers with bulldozers, and raided Israeli territory on motorbikes and paragliders.

The synchronised attack shattered Israel’s faith in its military and intelligence services. Not only had they had failed to track what one of its main enemies was planning, they had ignored multiple warnings that Hamas was preparing a major offensive, often in plain sight.

Israel suffered from “overconfidence, which led to arrogance, which led to complacency,” said former prime minister Ehud Olmert. “Hamas did to us what we normally do: surprise, cleverness, outside the box thinking.”

Many factors contributed to the failure. The conclusions of a full inquiry into the intelligence debacle may be years away. But the lessons from it are already shaping Israel’s unforgiving military campaign to “destroy” Hamas, an enemy Israel has concluded it can no longer contain. Since Israel launched its retaliatory campaign, more than 10,500 people have been killed in Gaza, according to officials in the Hamas-controlled territory.

“Even on the night of the attack, we smelled that something was happening but the interpretation was that it was just a regular [Hamas] military exercise,” a senior Israeli official said. “Our intelligence suffered from a fundamental flaw.”

That was in part because Israel’s security services underestimated Hamas’s ability to mount such a large-scale operation with all the tight operational security, disciplined planning and detailed knowledge of Israeli terrain that it required.

“Hindsight is a wonderful thing, but it seems the big failure [in Israel] was a failure of imagination, as was the case with 9/11,” said Sir Alex Younger, former head of Britain’s MI6 foreign intelligence service. “There is always a danger of conflating what you want with what actually is . . . and Israel felt that Hamas had been de-risked.”

Israel made a similar mistake exactly 50 years ago, before the Yom Kippur war against Egypt and Syria, when it falsely believed that the Arab nations would never attack due to its military strength. But there is an extra historical twist to this year’s assault, which Israel has frequently compared to the September 11 2001 terrorist attacks on America.

The 9/11 report, the US government’s official account of what happened, rued that no security official foresaw that terrorists might fly planes into big US buildings — even though many of them said they had read a 1994 Tom Clancy novel which climaxes with that scene.

In a similar vein, before Hamas launched its October 7 attack, Avi Issacharoff, co-creator of Israel’s hit television thriller Fauda, rejected a possible plotline for one episode in which Hamas fighters stormed the border fence and attacked Israel, deeming it too implausible. Israel’s security services apparently thought the same.

“What are the chances that dozens, let alone thousands, would be able to do this without military intelligence or Shin Bet [the internal security service] . . . knowing about it?” Issacharoff recalled, telling his script writers at the time. “Let’s move on and find something more realistic.”

A second reason for Israel’s failure was what one western official called “technological arrogance” — a hubristic faith that advanced technologies, such as the aerial drones that eavesdrop on Gaza and the sensor-equipped fence that surrounds the strip, would outmatch Hamas’s more limited technological abilities.

For many years, this had helped the Israel Defense Forces thwart all but a handful of border breaches. But it generated a false sense of security, said another western security official, comparing it to an iPhone. “Great when it works, but if it doesn’t — suddenly you can’t do anything,” the official said.  

The Israeli military’s 8200 signals intelligence unit had also recently stopped listening in on the handheld radios used by Hamas militants after they judged it a waste of effort, according to The New York Times.

“We had become addicted to tech, cyber, big data and the rest of it,” Millstein said. “But the cheapest and simplest intelligence — such as open source, tracking Hamas’s walkie-talkie communications, even listening to our female observation soldiers on the border — was completely under-appreciated.”

Another problem is that while Israel’s high-tech surveillance methods can produce masses of high-quality tactical intelligence — such as identifying the precise location of a rocket launcher — it is less good at revealing strategy or a leadership’s intentions, which is the main focus of human intelligence.

“If you are iterating from the status quo, technology is very good,” Younger said. “It is far less so when it comes to making a strategic leap or revealing intentions.”

A third reason for Israel’s failure to anticipate Hamas’s attack was that political turmoil caused by prime minister Benjamin Netanyahu’s controversial domestic policies had weakened national security and distracted its intelligence services.

“Shin Bet understandably was focused on the increase of violence in the West Bank, which had become increasingly challenging,” said David Petraeus, a former CIA director and US general who led Iraq’s allied forces and Nato and US troops in Afghanistan.

Hamas, which has governed Gaza since 2007, took advantage of these distractions. It also played along with a Netanyahu policy which sought to nurture Hamas rule in Gaza as a way of diminishing the standing of the Palestinian Authority in the West Bank.

Even as Hamas prepared for war, it remained in daily touch with the Israeli government on mundane issues such as export quotas and workers’ permits. Several Israeli and international officials maintain that these workers helped gather intelligence, including precise maps of the kibbutzim that Hamas would later attack.

In addition, Hamas filtered misinformation through channels that they knew Israeli intelligence was monitoring, while actual plans for the attack were held by a small group of Hamas leaders.

The lessons that Israeli security officials have drawn from their failure to anticipate the assault have deadly implications. Their conclusion is that Israel can no longer depend on intelligence to provide an early warning of attacks from Gaza, or on the country’s military might to deter them. Instead, it must pre-empt potential threats by directly eliminating them.

“The only solution is: no more relying on intelligence,” the senior Israeli official said. “Deterrence is no longer enough . . . It is a new paradigm.”

FT : China’s economy falls back into deflation in blow to recovery

China’s economy falls back into deflation in blow to recovery
Tumbling pork prices undercut growth as consumer confidence lags

China’s economy edged back into deflation last month, spurred by falling pork prices, as policymakers struggled to reignite domestic demand in the midst of a rolling property sector crisis and following the end of strict pandemic controls this year.

The consumer price index fell 0.2 per cent year on year in October, data from the National Bureau of Statistics showed on Thursday, compared with a 0.1 per cent fall forecast by a Reuters poll of analysts. The CPI was unchanged in September.

Producer prices fell for a 13th consecutive month, dropping 2.6 per cent year on year, against a 2.7 per cent decline forecast by economists and following a 2.5 per cent contraction in September.

The NBS said the price of livestock and meat fell 17.9 per cent overall, driven by a 30.1 per cent decline in pork prices. Non-food prices rose 0.7 per cent.

Chinese market reaction was muted on Thursday, with the CSI 300 index of Shanghai- and Shenzhen-listed stocks flat and the renminbi weakening 0.1 per cent against the dollar after the data release.

China’s economy has shown mixed signs of recovery in recent months, leading economists to debate whether it will hit the government’s official gross domestic product growth target this year of 5 per cent, the lowest in decades. Prices fell into negative territory in July before edging back into growth in the months that followed.

The IMF this week upgraded its forecast for China’s GDP growth to 5.4 per cent, citing stronger support from policymakers, who have been easing monetary policy and restrictions on property purchases and mortgages to try to stabilise the real estate market.


Analysts have blamed low consumer confidence for soft inflation figures. Falling pork prices aggravated the trend in October. Live hog futures traded on China’s Dalian Commodity Exchange have dropped about 15 per cent this month.

Prices of the meat in China, the world’s largest producer and consumer of pork, follows boom-and-bust cycles, with oversupply leading to large price falls and causing CPI volatility.

Goldman Sachs said in an analyst note that China’s headline CPI should rise gradually in the coming months, although “persistent pork prices deflation is likely to slow the pace”.

Rob Carnell, economist at ING, disputed that China was suffering from deflation, which he defined as not just a decline in consumer prices but also in the prices of “real and financial assets and wages”.

“What China has right now is a low rate of underlying inflation, which reflects the fact that domestic demand is fairly weak,” he said. “What we are seeing today is mainly the result of a supply excess, rather than a collapse in demand.”

Other recent indicators have painted a mixed picture of the economic recovery. China’s exports dropped 6.4 per cent in dollar terms in October compared with the same period a year earlier, the sixth consecutive month of declines and worse than the 3 per cent fall forecast by a Reuters survey of analysts. Manufacturing activity also contracted in October.

One positive sign from the trade data was China’s imports, which expanded year on year for the first time since February, rising 3 per cent.

Economists argue the government needs to do more to stimulate domestic consumption and lift flagging demand in the economy.

Beijing has announced a Rmb1tn ($137bn) bond to fund local government disaster relief and flood controls, but this is seen as aimed at supporting growth next year.

While the economy in 2023 has benefited from a low base effect compared with a year earlier, when Covid-19 controls depressed activity, next year could prove more challenging for GDP growth unless the recovery gains more traction, analysts have warned.

WWD : New York Launches Task Force to Fight Retail Theft

New York Launches Task Force to Fight Retail Theft
Retailers such as Gap, Macy's and Victoria's Secret will join city officials and law enforcement agencies on the committee.

New York City is taking aim at retail crime.

On Wednesday, New York City Mayor Eric Adams launched a task force to support implementation of his plan to combat retail theft across the city. The task force will be led by Deputy Mayor for Public Safety Philip Banks 3rd, with New York Attorney General Letitia James, all five of the city’s district attorneys, and representatives from law enforcement, local business groups, national retailers and organized labor.

Gap Inc., LVMH Moët Hennessy Louis Vuitton, Macy’s Inc., Target Corp., Ulta Beauty, Victoria’s Secret and more retailers are involved, as well as the Retail, Wholesale and Department Store Union and business improvement district throughout the five boroughs.

The task force is meant to advise the Adams administration on legislative proposals aimed at addressing retail theft, work to identify and respond to shoplifting trends and crime patterns, and use the best available technology to deter, prevent and respond to retail theft effectively.

“New York City’s retailers are the heart and soul of our city, and retail theft hurts everyone, from our mom-and-pop shops to large department stores — and especially consumers,” said Adams. “Because of the collaborative actions taken in the last few months between government, the private sector, law enforcement, and, most importantly, local businesses, retail theft is down this year, but there is always more work to do. I am proud to convene this group of experts and practitioners as we continue to take a 360-degree approach to combatting retail theft and curbing this serious issue that plagues cities across the country. Together, we recognize the importance of safeguarding our businesses, protecting jobs, and ensuring a safer and more vibrant city for all who live in, work in, and visit our great city.”

With the exception of 2020, the total number of citywide shoplifting complaints increased year-over-year between 2018 and 2022, with the largest increase — 44 percent — taking place from 2021 to 2022. However, year-to-date in 2023, shoplifting complaints are down 7.9 percent citywide as compared to last year and arrests for shoplifting increased 16.4 percent year-to-date.

At the end of 2022, Adams convened a summit with more than 70 concerned parties to discuss potential solutions to retail theft in the city.

WWD : Ralph Lauren Beats Sales and Profit Estimates in Q2

Ralph Lauren Beats Sales and Profit Estimates in Q2
The company continues to push through its strategic plan with DTC growth and higher average unit retail prices.

Ralph Lauren Corp. continued to play its game well in the fiscal second quarter — despite weakness in the North American wholesale business and a tougher economy.

The company has been on a campaign to elevate its brand and kept at it this quarter, boosting average unit retail prices at its own stores and on its website by 10 percent, on top of an 18 percent increase a year earlier.

Overall, the brand has pushed its prices up a total of more than 70 percent over the last six years.

Zacapa Rum to Honor Luar's Raul Lopez at the Latin American Fashion Summit
That march higher has been driven by a number of components — from the kind of products sold to the prices charged to where they’re sold.

Along the way, Ralph Lauren has become, well, more Ralph Lauren, by being much less reliant on the outlet business and even more focused on brand.

“Our brand is our most powerful asset,” said Patrice Louvet, president and chief executive officer, in an interview with WWD. “We’re driving momentum and desirability.”

It’s an effort that Louvet said cuts across generations of customers as the brand shows up across various platforms — from its runway show in New York Fashion Week to sponsorships with the U.S. Open, Wimbledon and Ryder Cup to a partnership with Fortnite.

That consumer reach and brand resonance has helped fuel the business through a tricky consumer landscape.

Net income slipped modestly to $146.9 million from $150.5 million the prior year, although diluted earnings per share ticked up 1 cent to $2.19 given a change in the number of shares outstanding. (Altogether the company gave about $275 million back to shareholders through its dividend and share repurchases.)

Adjusted EPS came in at $2.10 — well ahead of the $1.93 analysts projected, according to FactSet.

Revenues for the three months ended Sept. 30 increased 3.4 percent year-over-year to $1.63 billion from $1.58 billion, with gains in Europe and Asia offsetting wholesale weakness in North America. The company’s revenues came in $24 million over analysts’ best guess.

Louvet pointed specifically to the strength of the direct-to-consumer channel, which now makes up about two-thirds of the business and is doing well from the remaining outlet presence through its full-price stores and the website.

“All signs are pointing in the right direction when it comes to our DTC business,” the CEO said.

Wholesale — which has been a tough spot for brands across the spectrum this year — remains a work in progress.

Ralph Lauren’s North American sales slipped 1 percent from the prior year, to $718 million for the quarter, which included a 4 percent increase in the direct-to-consumer business and a 7 percent decline at wholesale.

Picking up the slack were revenues in Europe, which increased 7 percent to $527 million, and the business in Asia, which rose 10 percent to $348 million.

Louvet said there’s a “real bifurcation” in wholesale.

The upper tier — think Saks, Bloomingdale’s and Neiman Marcus — is doing well and the top 50 or 100 stores in the next tier down are also seeing a “solid performance” with low-single-digit gains.


“Where the pressure is is in the balance of the fleet,” Louvet said. “Those stores are in smaller cities around the country, where consumers are feeling more pressure and the brands and our partners are putting more emphasis on the top stores.”

To better present the brand he said more stores are going to pull together Ralph Lauren’s various classifications — which are now separate — to make a stronger statement with full looks available in one place.

Some of the wholesale difficulties speak to the climate in general, with inflation, high interest rates and other marcoeconomic and geopolitical concerns mixing up consumers.

“We’re operating in a very unstable world,” Louvet said. “That’s become the norm, unfortunately, but we know how to navigate this.”

Even so, he said the core Ralph Lauren consumer has been “quite resilient,” even as the more value-oriented consumer has been feeling the strain.

The brand continues to be anchored by its core product, including cashmere sweaters, tweet blazers and Oxford shirts.

“What we’re seeing is, when things get more challenging, the consumers will tend to gravitate to a brand they know, toward a product they trust,” the CEO said. “The core business is about 70 percent of our overall business and has done particularly well.”

The focus on brand and on core product come naturally to Louvet, a veteran of Procter & Gamble, which has become the launch pad for an increasing number of CEOs in fashion, including Chip Bergh at Levi Strauss & Co., his soon to be successor Michelle Gass and Bracken Darell, the new chief at VF Corp.

Louvet also noted that Pietro Beccari, chairman and CEO of Louis Vuitton, hails from Henkel, another consumer product goods company.

“A lot of the fundamentals you learn in CPG, on brand building, on consumer understanding, on operational discipline are incredibly relevant in this space,” Louvet said.

While it became commonplace to see CPG executives make the jump into beauty, they are now coming into fashion, he noted.

“The fundamentals are still about a brand, it’s still about the consumer and it’s still about the go-to market,” he said.

Fashion has traditionally drawn its CEOs out of its own merchandising ranks. And while Louvet said that brings in executives with “incredible product understanding and operational experience,” he added that the CPG ex-pats bring in more branding experience.

Of course Ralph Lauren, who serves as executive chairman and chief creative officer at the company he founded, has all the branding expertise he ever needed.

“We inspire people to embrace their sense of individual style through a timeless, elegant way of living. From our recent fashion show in Brooklyn to championing the resilience of sport at the U.S. Open, Wimbledon and Ryder Cup, there is a spirit of authenticity to everything we do and it endures beyond any economic or fashion cycle,” Lauren said.

FT : Overdue commercial property loans hit 10-year high at US banks

Overdue commercial property loans hit 10-year high at US banks
Higher interest rates, an uncertain economy and remote work pile pressure on office space owners

Delinquent commercial real estate loans at US banks have hit their highest level in a decade, as higher interest rates, an uncertain economy and the rise of remote working pile pressure on building owners.

The volume of past-due loans in which so-called non-owner occupiers have missed more than one payment jumped 30 per cent, or $4bn, to $17.7bn in the three months to the end of September, according to industry tracker BankRegData. The figure had risen by $10bn in a year.

Bank lending remains in historically good shape and even after the recent jump, just 1.5 per cent of commercial property loans were past due. Nonetheless, industry watchers said the number of properties under pressure was likely to continue to rise, especially in the office sector.

Bill Moreland, who runs BankRegData, told clients that commercial real estate lending was “getting ugly fast”.

“It’s not a hiccup — it’s not Covid and then recover,” said Leo Huang, the head of commercial real estate debt at Ellington Management Group, an asset manager. “Property prices are going to come down and loan delinquencies are going to keep going up.”


The third-quarter data did not capture the impact of this week’s bankruptcy filing by desk rental company WeWork, one of the largest office tenants in cities from New York to San Francisco.

The Chapter 11 filing will allow WeWork, at least in the US, to rationalise its portfolio by terminating scores of leases with little financial penalty, putting pressure on building owners.

Wells Fargo recently cited WeWork’s troubles among its reasons for adding a $20.5mn mortgage on 599 Broadway, a midsized office building in lower Manhattan, to its watchlist of loans at risk of missed payments. The loan was made by Bank of America, but has since been sold to investors and is serviced by Wells.

With more than $70bn in commercial real estate loans outstanding, Wells is the nation’s largest lender in the category, and the most exposed to property losses. Its past-due property loans rose more than 50 per cent to $3.4bn in the third quarter, up from just $400mn a year ago.

Despite the rising delinquencies, Wells and other banks have been slow to put borrowers in default or otherwise declare actual losses on their growing pile of delinquent loans. Wells wrote off just $91mn in CRE loans in the third quarter.

On a call with analysts last month, Wells expressed optimism that many of those borrowers would restart payments or otherwise avoid losses, though the bank’s executives reiterated there would be some impact. “We haven’t really seen any losses of significance yet, but we will,” said Mike Santomassimo, Wells’ chief financial officer.

Kevin Fagan, the head of commercial real estate economic analysis at Moody’s, said he expected delinquency rates to climb for at least the next 12 months. There was “pain to come, that’s for sure”, he said, but he added it would it take time for delinquencies to turn into losses.

Among regional banks, Pittsburgh-based PNC had one of the biggest spikes in delinquent commercial real estate loans, more than doubling in the quarter to $723mn. “The pressures we anticipated within the commercial real estate office sector have begun to materialise,” Rob Reilly, PNC’s chief financial officer, told analysts last month. He added, however, that the lender had ample reserves to cover potential losses on those loans.

Other banks are stepping up their efforts to restructure property loans in order to avoid losses. At BofA, the volume of modified property loans, for which the bank had either forgiven interest or extended due dates, rose nearly $750mn to $1.2bn in the quarter. Across the industry, the volume of restructured commercial real estate loans has risen by $6bn to $8.5bn in the past six months.

“Bankers are going to extend the loans if they think the asset can be saved,” said Christopher Whalen, a veteran bank analyst and head of Whalen Global Advisors. “If the bank has to take back the building, the value can get cut in half.”