Page 19 – Kanebridge News

August 19, 2024

‘Pig Butchering’ Online Scams Are Proliferating. Here’s Why They Work So Well.

Do you get unsolicited text messages from people you don’t know? Be forewarned: If you respond, you could be falling for a particularly dangerous online scam that has found victims around the world. Some unfortunate individuals have lost millions of dollars.

There is even a name for it. Pig butchering. Victims are fattened up, made to trust the scammer and think they are making tons of money, until they are mercilessly taken—sometimes for everything they have.

On June 6, at the WSJ Tech Live: Cybersecurity conference in New York City, two cybercrime experts sat down with Wall Street Journal reporter Robert McMillan to discuss how pig butchering works and what is being done about it. The participants were Troy Gochenour, an investigator with the Global Anti-Scam Organization, a nonprofit that helps victims and raises public awareness of scams, and Jamil Hassani, a supervisory special agent with the Federal Bureau of Investigation. An edited transcript of their conversation follows.

How the scam works

WSJ: Why “pig butchering”?

GOCHENOUR: It’s not our term. In Chinese, it is shā zū pán , or pig-killing plate. What makes this scam so effective is they want to build trust so that you might think they could be a potential love interest or a business partner. Once they built that trust, then they will start talking about how they’ve made a lot of money in cryptocurrencies and how the victim could, too.

WSJ: It’s a variation on the romance scam. Instead of asking for money to buy a plane ticket, they propose to make money together?

HASSANI: Absolutely. The rise in cryptocurrency has opened the door for these scammers to take your money instantaneously. There are no third parties doing the reconciliation. If you do a regular wire transfer and you contact the FBI within 72 hours, chances are we can get that money back for you. But with crypto, it’s almost immediate and it’s gone.

WSJ: Are you seeing more pig butchering because of the rise of crypto?

HASSANI: Absolutely. The rise since 2019 for victimisation is almost 2,000%.

WSJ: Why does it work?

GOCHENOUR: The social-engineering aspect is very powerful. I have stories that are very sad: folks who have been warned that they’re getting scammed, and yet, because they’ve been socially engineered so much, they actually continue to invest.

They’re looking for everybody, but they prefer people with titles—doctor, dentist, IT professional, CEO. I follow them on the communications platform Telegram, so I have a lot of their training documents, manuals on how they build those relationships. This is an entire industry tied to largely Chinese organised crime.

The victim’s psychology

WSJ: Jamie, psychologically speaking, why does this work?

HASSANI: I remember arresting a hacker out of Tunisia. A 19-year-old kid that was able to bypass levels of security within the Department of Defense, took down a few banks and was wreaking havoc across the world. He explained to me: “Hackers are stupid. They go after the systems, when human beings have way more vulnerabilities. They have the keys to the treasure chest. And it’s so easy to turn off their mental firewall.”

Try to think of a time you were in a relationship where the threat of your spouse or significant other leaving caused you to do pretty much anything to keep them around. Every scam evokes an emotion. It could be love, fear, panic. Your ability to critically think is shut off.

WSJ: Sometimes when I’ve talked to scam victims, it’s like the more they have invested, the harder it is for them to believe they have been taken.

HASSANI: It’s the stigma. The victims can’t fathom that they could have been so stupid, quote unquote. So they hold on to this hope that it had to have been real, the love had to have been there, or the trust, because they’re texting every day, 30 to 100 times. The scammers use information they glean from your communications and social media to validate you in a way that no one else can.

WSJ: If you suspect or know somebody is a victim, is there something you can say that will snap them out of it?

GOCHENOUR: Unfortunately, people are people. We’ve had victims we’ve warned more than once, and they continued to give.

The United Nations Office on Drugs and Crime says there could be as many as a couple hundred thousand of these scammers operating throughout Southeast Asia.

HASSANI: A lot of these scammers are trafficked human beings. When a human being is subjected to that kind of circumstance, their will to succeed is intense, because their life, or their family’s life, depends on it. They are constantly fine-tuning strategies, and trying to stay one step ahead of whoever is closest on their tail. These scammers contribute something like half of their country’s GDP, so the local government’s not going to do much.

WSJ: The FBI knows who’s running these scams, largely?

HASSANI: Yes, absolutely.

WSJ: Can you get them?

HASSANI: There are no treaties between those specific countries and the U.S. We’ve taken steps. We work with multiple organizations, including the Secret Service, Department of Homeland Security, and we’re applying pressure on these countries to start to take action.

The first approach

WSJ: There are different layers of operators; some do the texting, others do the talking and then there are the video calls.

GOCHENOUR: Sure. So if you get that wrong number, the text to your phone, you respond, saying wrong number. I’m not Paul. Jane. Whoever. They say, oh, so sorry. Uh, my assistant gave me your number. I hope I’m not bothering you.

Sometimes they even send you a picture. That sounds interesting. So you continue to talk. Oh, what’s your name? Where do you live? What do you do?

They’re looking for a weakness. Are you single? Oh, weakness might be romance. Oh, you’re in business. I could be your business partner. But they also want to know what kind of assets they can take from you.

On their Telegram pages, I’ve seen screenshots of their chats. They can chat in Chinese, and it shows up to you as your native language. And when you chat back it shows up to them in Chinese. At the top, it would say your first name, maybe your age, two homes, 401(k).

As you continue to chat, you’re actually being sent to multiple people chatting with you on this one account. You may not even recognize it. They are all in the compound. Everything they do is monitored. So if that person is there against their will, if they don’t chat with you to lure you in, they could get beaten.

What can be done?

WSJ: This scam involves legitimate organizations as well, right? Cryptocurrency companies, the messages come on legitimate apps. What can be done to mitigate this?

HASSANI: Until a collective strategy is put together, you need to be aware of the red flags. And the first one is unsolicited contact. We’ve all gotten that text message, “hi.” That message has a fundamentally different feeling to somebody who is elderly and widowed and lonely. When they see “hi,” that has a profound impact on them.

If you get an unsolicited contact, ask questions. If they want you to invest in cryptocurrency, do a little research on the site. Is this website legit? Some are legitimate and registered with, say, the Treasury Department’s Financial Crimes Enforcement Network or the Securities and Exchange Commission.

WSJ: Some of the scam sites actually register.

HASSANI: True. Most of them aren’t registered with the SEC, but a lot are.

GOCHENOUR: In 2021, 2022, they were using apps like MetaTrader 5 or 4, a foreign-exchange trading app. It’s legitimate. You could go on this app and think you’re doing something legitimate, but you’re sending money to their scam broker website.

WSJ: Why can’t you stop these guys?

HASSANI: They’ll have one major domain with multiple subdomains, so to speak. So as soon as we take that website down, another one pops up. Our strategy is to go after the kingpin.

WSJ: Have you hit any kingpins yet?

HASSANI: We have. The indictments, a lot of them are still under seal. But tech-support scams are a big part of this. We took down three tech-support buildings near Kolkata less than a year ago.

WSJ: All connected to pig butchering?

HASSANI: Yes, and they do the same thing—traffic human beings to scam.

WSJ: Scammers use services like WhatsApp, and the money gets sent to them often through a legit crypto company. Could the tech companies be doing more here?

GOCHENOUR: The tech companies and the exchanges are doing more. And I know that because when I follow the scammers on their chats, they talk about, “Why can’t I get this money? The victim put it in the account, but I can’t get it. What’s going on?”

August 19, 2024

Built to Withstand 200 MPH Winds: ‘Hurricane-Proof’ Florida New Build Lists for $6.85 Million

A newly built home on a golf course in Boca Raton, Florida, that promises to be hurricane-proof hit the market on Tuesday with a $6.85 million price tag.

The house, which was completed this year, is entirely made up of steel supports and poured concrete and was constructed with insulated concrete forms, which allows the home to withstand winds stronger than 200 miles per hour, said the home’s developer Meir Kroll.

“There’s this picture [of the west coast of Florida after Hurricane Michael in 2018] of all these homes on the beach totally decimated, and then there’s this one house that’s standing. That house was an [insulated concrete form] home,” Kroll said.

The pool overlooks the golf course.
Legendary Productions

Senada Adzem of Douglas Elliman, who brought the home to market on Tuesday with her colleague Brian Ross, said the potential environmental impact on a property has become increasingly important to her clients.

“They want to know that they’re safe. They want to know that if they’re travelling in the summer, … their home is going to be there when they come back,” she said.

Kroll moved to Boca Raton in 2021 from Los Angeles, where he worked as a luxury developer and built homes for sports agent Rich Paul and MLS player Javier Hernandez. Kroll bought the property to build his first Florida project in 2022 for $840,000, according to public records.

With its contemporary-style white exterior and dark wood accents, the nearly 7,000-square-foot home stands out in the country club community of Boca Grove, where many homes were built in the 1980s and ’90s and sport tiled roofs and a Mediterranean-inspired style.

Instead, working with Spanish architect Jorge Bibiloni Studio, this home draws inspiration from the villas of Mallorca, where Bibiloni is based.

“His design aesthetic is warm contemporary but minimalist,” Kroll said. “There are a lot of spec projects in Florida that are eccentric and over-designed. I think there’s beauty sometimes in subtlety.”

The sleek style with wood accents continues inside the two-storey home, which has five bedrooms, seven full bathrooms and one half-bath. The primary suite has two large walk-in closets and a separate formal sitting room.

Sliding-glass doors on the first level lead out to a covered patio with a full summer kitchen, an outdoor dining area, and a heated pool and spa. A sundeck runs along the length of the second level, overlooking the golf course.

August 14, 2024

From Star Trek Memorabilia to Diana’s Dresses. He’s Gavelling in the Next Generation of Auction Buyers.

A fury of fast and frequent bidding appeared to take auctioneer Kody Frederick by surprise at June sale of Princess Diana’s dresses and other memorabilia from the royal family

At one point, the bidding for a Catherine Walker evening gown worn by the late Princess of Wales blew past an original estimate of US$100,000 to US$200,000, topping out at US$450,000 with Frederick ultimately calling it “a moment of moments.”

“You have to give people a minute to breathe when you’re talking about hundreds of thousands of dollars per bid,” he says about the auction.

That event continued to rack up records, including the US$910,000 sale of another dress, and it demonstrated not only a rise in the relevance of cultural memorabilia as a category, but Frederick’s quick ascent among auctioneers.

Although on the younger side of the current auctioneer crop, at age 40, and with just two years of experience with gavel in hand, Frederick is finding himself running sales in new categories and welcoming in a new set of auction buyers.

“So much of this stuff has never come to auction, so it really is a first time [opportunity],” he says.

Frederick, who is based in Los Angeles, is not a career showperson. Prior to attending auctioneering school in Indiana, he was working in production for Disney+, and didn’t even have auctioneering on his radar until a colleague suggested he check out the profession while looking for work. He joined Julien’s in April 2020.

“My start date was supposed to be the day California went into lockdown, but it was delayed a month because of that,” he says.

Frederick ran his first auction in September 2021, selling low-value music memorabilia in a largely empty room where the top-selling item (a commemorative guitar) went for US$2,880.

“Ninety percent of our bidding takes place online, so being able to communicate to online bidders in the moment is always the challenge,” he says. “Creating the sense of excitement is challenging, and the personality is more important than the medium.”

He would continue to work his way up through various Julien’s sales until he found himself selling a signed Banksy painting in March 2023. The item was the marquee lot of a larger contemporary art sale, and had an original estimate of US$600,000 to US$800,000. The hammer price topped out at just over US$2 million.

“We had bidders in the room and put an event around it,” he says.

Frederick says it’s important to see in the room who’s bidding and in which order the bids are coming in, especially in high-value, high-volume sales.

Frederick leads a sale of music memorabilia at the Hard Rock Cafe in New York.
Courtesy of Julien’s Auctions

“I have to keep things as close to real time as possible, and make sure there’s no disconnect between bidding and the auctioneer,” he says.

Much of what Julien’s sells falls into new or emerging auction categories—music memorabilia, pop culture artefacts, or modern art pieces that newer buyers connect to in ways that traditional areas (like classic art or wine) don’t.

Frederick will run an auction this fall featuring original Star Trek items and a separate event selling a significant guitar played in 1993 by the late Eddie Van Halen. Both sales could potentially resonate with those who haven’t spent much time in the auction world.

“It’s easier to convey value when an item has strong cultural significance,” he says. “A lot of what we sell has stories.”

August 14, 2024

Singapore Upgrades Full-Year Economic Outlook

SINGAPORE—Singapore’s economic outlook seems brighter, as resilience in external demand and a recovery in the key electronics sector helps guard against headwinds elsewhere, the trade ministry said as it adjusted the city-state’s growth forecast for the year.

The Singapore economy grew 2.9% in the second quarter from a year earlier, according to revised data from the Ministry of Trade and Industry released on Tuesday. That matched the advance estimate compiled in July and compared with growth of 3.0% in the first quarter.

For the first half of the year, growth averaged 3.0%, the data showed.

Taking into account the performance of the Singapore economy in the first half, as well as global and domestic economic factors, MTI updated its full-year growth forecast to 2.0% to 3.0% from 1.0% to 3.0%.

Expansion in the April-to-June period was driven mainly by the wholesale trade, finance & insurance, and information & communications sectors, the ministry said. The manufacturing sector—a key engine of the economy—shrank in the quarter, largely due to a sharp fall in the volatile pharmaceuticals segment, the data showed. On the bright side, electronics returned to growth, backed by strong demand for smartphones, PCs and AI-related chips, it added.

“Singapore’s external demand outlook is expected to be resilient for the rest of the year. However, downside risks in the global economy remain,” the MTI said.

How other global trading partners fare is key for the trade-reliant economy of Singapore, which is well-placed to benefit from the global tech cycle upturn but exposed to downturns abroad.

A potential headwind could come from a slight slowdown in the U.S. economy, where MTI expects consumption growth to ease as the labor market softens. Growth in other advanced economies like the European Union and Japan is tipped to pick up, however.

Among Singapore’s major trading partners in Asia, MTI sees a slight slowdown in China in the second half of the year as investment growth tapers but thinks the property market will stabilize as government support measures kick in, boosting consumer sentiment. Growth in key Southeast Asian economies is projected to pick up slightly in the second half of the year as domestic demand strengthens, aided further by recoveries in global electronics and tourism demand.

Risks that could put the brakes on Singapore’s economic momentum include geopolitical and trade conflicts, which could hurt business sentiment and drive up production costs. Disruptions to the global disinflation process meanwhile could lead to higher for longer rates and trigger market volatility, MTI said.

“Against this backdrop, Singapore’s manufacturing sector is expected to see a gradual recovery in the second half of the year,” MTI said, expecting electronics to recover strongly.

Singapore’s GDP grew 0.4% on a quarter-over-quarter seasonally adjusted basis in the second quarter, the revised data showed. That matched both the advance estimate for the quarter, and was steady from the 0.4% expansion seen in the first quarter.

Meanwhile, data in a separate release from Enterprise Singapore showed that the city-state’s total merchandise trade expanded by 10% on the year in the second quarter, surging from the 4.8% growth seen in the first quarter.

Non-oil domestic exports slid 6.4% in the second quarter from a high base a year ago, widening the 3.4% decrease seen in the previous quarter, the data showed. Shipments of pharmaceuticals dragged on the results, but electronics grew for the first time in eight quarters.

Enterprise Singapore expects total trade to be supported by high oil prices, and the electronics recovery in the latter half of the year to boost exports, driven by demand in AI servers and consumer devices. Key downside risks for the NODX forecast remain, including a weaker-than-expected recovery in the final months of the year.

“Taking the above into consideration, the 2024 growth forecasts are narrowed to +5.0% to +6.0% for total merchandise trade and to +4.0% to +5.0% for NODX, from the earlier forecasts of +4.0% to +6.0% for both,” it said.

August 13, 2024

Houseboat Twice the Size of the Average London Home Lists for £1.65 Million

For nautically inclined house hunters, this London houseboat that’s floating just off the south bank of the River Thames, might be the ideal investment.

On the market for £1.65 million (US$2.1 million), the three-bedroom vessel is moored just next to Wandsworth Park, according to the listing with Knight Frank, which brought the unorthodox home to the market at the beginning of this month.

Houseboats “rarely appear on the market, but when they do they attract a specific buyer who is after a unique way of living,” said Sarah Bennett, associate in Knight Frank’s Battersea and Riverside office. “This houseboat comes to market in excellent condition and contrary to any stereotypes, it is very spacious.”

At almost 2,000 square feet of living space, the houseboat is roughly twice the size of the average London dwelling, which, according to government statistics, is about 904 square feet. The two-story home has a light-filled reception room, a fully equipped kitchen and dining room, and three decks, including a sprawling roof terrace with city and water views.

The office has wine storage.
Knight Frank

The bedrooms are on the lower level, and include a primary suite with a walk-in wardrobe and an en-suite bathroom—both of the boat’s two bathrooms are large enough to accommodate bathtubs—and a study, complete with wine storage, could easily be converted into a fourth bedroom, according to the listing.

Mansion Global couldn’t determine who owns the property, or when it last changed hands.

Other amenities include an automatic boat launcher, “offering ease of access for aquatic adventures,” and the mooring is securely gated and privately owned “so the houseboat comes with a share of the freehold of the mooring,” the listing said.

Owning a share of the mooring gives greater security of tenure, unlike cruising licenses, where you have to move your boat regularly, Mansion Global previously reported.

Residents can also “enjoy external facilities that come with mooring rights such as access to the gym and swimming pool at [nearby] Prospect Quay,” Bennett said.

In London, houseboats “offer the remarkable experience of living right next to the action of city life whilst also being amongst nature, truly the best of both worlds,” she added.

August 12, 2024

The Trending Look That Has Home Designers Playing With Fire

It’s the kind of edgy design trend you might have scrolled past on a social media feed: homes bearing beautifully charred facades or feature walls, a charcoal patina that seems as if it emerged from fire itself—in fact, that’s exactly how it came into being.

Shou sugi ban, also known as yakisugi, is a Japanese wood-burning method with roots that run deep. The craft emerged during Japan’s Edo period, from 1603 to 1868, as a way to clad cedar buildings to withstand temperature fluctuations between seasons and render them fire retardant and insect repellant. Aside from its practical benefits, the look has exploded in the West as a way to give homes—mostly luxury ones—a brooding, dramatic exterior that fits with an earthy minimalist aesthetic as much as texture-rich maximalist one.

The preservation technique, which can be achieved by hand or machine, involves burning wood until the surface is charred, cooling and cleaning it to remove soot and dust and finishing it with natural oils to reinforce its durability and aesthetic appeal.

Dark and charred and decidedly grained, the look of shou sugi ban is altogether distinctive.

“When you burn the clean wood, it creates a textural surface that highlights the beauty of the wood grain and colour,” said Mia Jung, director of interiors at Ike Kligerman Barkley in New York and San Francisco.

Depending on the degree of charring and finishing, the wood can produce a range of looks from deep black with pronounced grain patterns to a more subtle dark brown or grey with a smoother finish, said Jiun Ho, founder of Jiun Ho Inc., a multi-disciplinary interior and furnishings design firm in San Francisco.

Defining Detail

Unlike the purely functional role of the shou sugi ban technique of the past, today, it’s most commonly used for decorative purposes—both inside and outside the home.

“It has a modern yet earthy aesthetic,” said Stephanie Hobbs, design principal at Marmol Radziner in Los Angeles. “Clean lines and details help this naturally textured and rough material feel modern and luxurious.”

The old-world application can, ironically, have a very contemporary vibe. “The simplicity of the wood offers a beautiful and natural look that honours the Japanese aesthetic of wabi-sabi, which embraces imperfections,” said Teresa Boyd and Helena Finkelstein, co-owners and lead designers of Verona, New Jersey-based Olive Hill Design Company.

While traditionally rendered in cedar, modern variations of the art utilise different types of woods, such as Douglas fir, cypress, pine or oak, creating many diverse looks. The cost of shou sugi ban varies widely based on factors such as the type of wood used, the degree of charring and the finish applied.

“It can be more expensive than untreated wood due to the labor-intensive process,” Ho said. Typically, prices range from $15 to$20 per square foot on average.

What’s Old Is New Again

There’s no denying the technique is having a moment, and it aligns with so many other trends, such as the growing emphasis on artisan-made things as well as biophilic design, a concept that aims to connect people with nature, in part, through natural materials.

“In this age of fast everything, there is a growing respect and appreciation for traditional craftsmanship,” Kornak said. “Shou sugi ban is a great example of that—it has a rich and beautiful history, especially in architecture and design. In addition, it’s both modern and rustic, which is aesthetically intriguing.”

The wood retains the carbon-dioxide absorbed during the tree’s growth, making it more durable and expanding the life of the wood, said Philip Consalvo, principal of PJCArchitecture in New York City.
Tom Stock, Stock Studios Photography

The matte finish and distinctive wood graining create a striking impression that is different from what people are used to seeing, Hobbs said, noting how it balances with a natural landscape.

“People love the warmth and natural qualities of wood siding, but it often comes with a large commitment to maintenance. This method of finishing ages naturally and beautifully over time and requires less maintenance than a typical wood siding application,” she said.

What makes shou sugi ban even more relevant is that it’s eco-friendly. The wood retains the carbon-dioxide absorbed during the tree’s growth, making it more durable and expanding the life of the wood, said Philip Consalvo, principal of PJCArchitecture in New York City. It also naturally protects the wood from the elements, eliminating the need for harsh chemicals.

“As darker home exteriors continue to trend, we will likely see this material becoming increasingly popular for cladding,” he said.

Fresh Ways to Play With Fire

These days, shou sugi ban, in all of its smoky glory, is showcased in a multitude of ways—as siding and fencing, decking, interior and feature walls and furniture.

Ho loves using shou sugi ban for wall cladding because “it adds a multi-dimensional texture making the interior feel rich and warm.” For a new restaurant he’s designing called Enclos, which is opening later this summer in Sonoma, California, he covered the dining room’s walls and ceiling with shou sugi ban. “This created a dark black texture that serves as a blank canvas, allowing everything in the room, including the guests and the food, to stand out,” he said.

Jeffrey Dungan, founder and creative director at Jeffrey Dungan Architects in Mountain Brook, Alabama, prefers to apply the technique inside a home for a dark and moody vibe. While Hobbs tends to add the charred wood as a finishing material to connect interior walls with exterior siding.

Interiors created with shou sugi ban by Jeffrey Dungan.
William Abranowicz

Siding is the most common way to showcase the Japanese technique. Consalvo used the material as siding because of its “eco-friendly nature and seamless integration with the home’s natural surroundings,” for a recently completed lake house in the Adirondacks.

“The unique appearance of shou sugi ban enhanced the modern aesthetic we desired for the house. By incorporating this traditional craftsmanship in a modern way, we aimed to honour the Japanese wood preservation technique,” he said.

However, Consalvo noted that since the charring process is unfamiliar to many builders and contractors, “proper training and understanding of the technique are essential to achieving the desired results and maintaining its integrity and benefits.”

Carved bowls by A Space.
Courtesy of Holly Hunt

Aside from walls and siding, Shou Sugi Ban can be used to fashion bespoke items such as furniture, light fixtures or objets d’art. Design firm Holly Hunt has used geometric figurines by Martha Sturdy called “Reflections” as well as hand-carved solid cedar bowls from A Space.

“For both of these, the ashen black finish and minimalist lines are a graceful yet robust accent for interiors,” said Jo Annah Kornak, senior vice president and executive creative director of Chicago-based Holly Hunt.

Homeowners who are curious about the look but don’t want to commit to decorating large expanses can add a small side table or console crafted with the shou sugi ban technique for a natural and minimalist addition to their décor, Boyd and Finkelstein suggested.

August 10, 2024August 9, 2024

Italian Automaker Pininfarina’s Future Luxury SUV Will Likely Have Hybrid Power

Italian carmaker Automobili Pininfarina’s next production car, a luxury SUV based on the radical Pura Vision concept shown at the Pebble Beach concours event in California last year, will likely not be a battery EV, but is envisioned with plug-in hybrid power.

“We’re looking at all technologies,” CEO Paolo Dellachà tells Penta . “Our commitment to electric will stay—it’s the future—but we’re also investigating hybrid power.”

The CEO won’t yet comment on which internal-combustion engine might reside under the hood of the new SUV, but he says such a luxury car would ideally have up to 50 miles of EV-only range. “We want to maximise the range, but we also don’t want the battery to take up too much interior space or add too much weight,” he says.

Inside the B95 Gotham.
Pininfarina Photo

The Pura Vision SUV could be toned down by the time it morphs into a production car, but in concept form, it displays a wide range of design innovation—and is as visually striking as the Tesla Cybertruck.

Dellachà has been in the lead role for a year and a half. But before that he was the company’s chief product and engineering officer, deeply involved in the building of the flagship Battista EV, and had previous appointments at Ferrari and Maserati. He is, in short, a very hands-on CEO.

The B95 Gotham: Would Bruce Wayne buy one?
Pininfarina Photo

The brief for the Battista, he says, was “to create the most powerful car ever built, with great handling that ensured it could do more than accelerate in a straight line. Reaching that goal was only possible with an electric powertrain—we showed what the Battista could do with four electric motors.” The US$2.2 million Battista supercar, featuring an electric powertrain developed with Croatia-based Rimac, achieved its brief—with up to 1,900 horsepower on tap.

There’s no date on the SUV yet, and Dellachà declines to comment on how many Battistas have been delivered, but the U.S. remains the company’s biggest market. And Pininfarina should be very visible during Monterey Car Week, with a rally planned that will feature at least 10 of the company’s Battistas (including all five of the special-edition Anniversario anniversary cars).

The Pininfarina B95 Gotham (foreground) complemented by the Tumbler, a Batman movie car.
Pininfarina Photo

On Pininfarina’s stand at the Quail: A Motorsports Gathering on Aug. 16 will be the world debut of a concept for the one-of-a-kind Pininfarina B95 Gotham, one of four cars being built in collaboration with Warner Brothers Discovery Global Consumer Products’ Wayne Enterprises Experience, which develops curated luxury products. Warner Bros. works with DC Entertainment on Batman films, and Dellachà says the B95 Gotham is “something Bruce Wayne [Batman’s civilian persona] would want to have in his garage. It’s as if he were one of our clients asking us to build a unique project.”

The actual finished B95 Gotham, a variation on the open electric €4.4 million (about US$4.8 million) B95 Barchetta shown last year in an edition of 10, will be delivered to a customer by the end of 2025, Dellachà says. The other three cars in the Warner/Bruce Wayne series, all one-offs, are the Battista Gotham, the Battista Dark Knight, and the B95 Dark Knight.

Dellachà says that the creation of unique cars like the Batman-themed vehicles “will always be part of our business model.”

August 9, 2024

Energy, Climate and AI Bets Are Powering Europe’s Venture Sector

Venture capitalists’ appetite for energy and artificial-intelligence investments is putting Europe’s venture sector on a hot streak.

European governments’ focus on energy security amid heightened geopolitical tensions has helped spur a capital rush, investors and analysts say. That coupled with the emergence of Europe-based AI startups, which can be less expensive than their U.S. counterparts, is also drawing investors.

European startups raised $15.5 billion in the second quarter, up 14% from the first quarter and up 12% from the same quarter of last year, according to Europe-based analytics firm Dealroom.co. Meanwhile, the amount invested into North American startups rose 9.6% in the second quarter from the prior quarter while Asia deal value rose 6.4% over the same period.

Energy was the most funded sector in Europe in the first half of the year, netting $5.7 billion, while funding raised by AI startups accounted for a record 18% of venture funding in Europe, up from about 11% in 2021, Dealroom.co said. Before last year, energy startups typically raised less capital than fintech, health and enterprise software startups.

Russia’s invasion of Ukraine spurred European governments—which were historically dependent on Russian fossil fuels—to develop greater energy security. Support has reached startups in the form of grants and other government-backed investment opportunities.

“It has been a major shift,” said Orla Browne , head of insights at Dealroom.co. “The exposure of energy-security issues with the invasion of Ukraine has filtered down to startups.”

Large AI deals have also drawn capital to Europe. In May, Wayve, a U.K.-based developer of autonomous driving software, raised $1 billion from investors including SoftBank Group , chip maker Nvidia and Microsoft . In June, French startup Mistral AI raised $646 million from investors including the venture arm of software giant Salesforce , General Catalyst and Lightspeed Venture Partners.

In Europe, investors say they can scoop up shares of startups for less money compared with the prices that their counterparts in the U.S. command. Meanwhile, Europe’s technical universities are supplying promising entrepreneurs, particularly in the AI field.

“We have hired a world-class team at salaries that cost 30% or less than you would get for a similar team in [Silicon Valley] with the caliber being as good,” said Dominic Vergine , chief executive of Monumo in Cambridge, England, which uses AI to make electric motors more efficient.

Europe’s climate regulations have also helped attract funding for energy startups, for example the European Commission’s Innovation Fund.

Danijel Višević, co-founder of Berlin-based World Fund, said funding from countries like Germany and France as well as from the European Union helped push more capital into climate startups. “Europe has started to reap the rewards of the fruits it sowed with climate tech R&D,” said Višević.

He added that given the long-term effects of climate change, funding in the sector is likely to be stable, both from venture-capital firms and governments, for years to come.

Even so, Europe’s venture sector faces some headwinds. In the second quarter, the continent saw $2.2 billion in exits, a third fewer than in the same quarter a year ago and 93% under the second quarter of 2021, a banner year for exits worldwide, according to a report by professional-services firm KPMG. Exits include initial public offerings and mergers and acquisitions and are the primary way venture investors cash out of their startup investments.

High interest rates, which typically encourage investors to divert capital away from venture to fixed-income strategies, have also hurt the industry. European startups’ second-quarter haul is far below the record $34.6 billion they netted during the same quarter of 2021.

Investors are eager for a turnaround. Last year, Planet First Partners, which has offices in London and Luxembourg, raised a €450 million fund, equivalent to $485 million, in part on the thesis that Europe’s favorable climate regulations are a financial tailwind for energy startups.

In March, the firm invested in Sunfire, a German startup developing hydrogen energy technology aimed at reducing reliance on fossil-based energy from oil, gas and coal. The investment came as part of a €215 million Series E equity funding round and included an additional term loan of up to €100 million from the European Investment Bank.

Sergio Carvalho , a partner and head of sustainability at Planet First Partners, said the firm has invested in Sunfire in part for its potential to help Europe become more energy independent. PFP’s first investment in Sunfire was before the invasion of Ukraine. “Europe has been pushing decarbonization systematically,” Carvalho said.

Last year, Sunfire received €169 million from a European Union initiative that funds projects that address EU-wide challenges.

In July, Index Ventures, which was founded in Europe and has offices in London, San Francisco and New York, raised $2.3 billion in new funds—an $800 million venture fund and a $1.5 billion growth fund. Hannah Seal , an Index partner in London who focuses on enterprise AI deals, among other sectors, said she expects roughly half of the venture fund to be used to invest in startups that are based in Europe.

“The first half of this year was one of the busiest we’ve ever had,” Seal said about AI dealmaking in Europe. “We’re seeing a general stabilisation in the global economy which is obviously impacting sentiment.”

August 9, 2024August 9, 2024

Soaring Travel Costs Are Weighing on Even the Wealthiest Vacationers, WSJ Study Shows

Wealthy individuals remain just as interested in travelling as they were last year, but costs have become a larger factor in their plans, according to a Global Travel Study conducted by WSJ Intelligence between June 27-July 19.

Of the 879 Wall Street Journal readers surveyed—who had an average age of 56, were 79% male, and had an average net worth of about US$3.5 million—94% intend to travel for leisure in the next 12 months, down just 1% from 2023. Additionally, 64% plan to travel internationally, up from last year’s 60%.

Travellers are most concerned about costs amid ongoing inflation and other economic challenges, even as 80% of respondents say they plan to increase or maintain their travel spend compared to last year.

The cost of flights and hotels is the top factor of importance for WSJ readers, with 78% concerned about prices, a nine-point increase from 2023.

“Travel is still on the up—our readers are still really enthusiastic,” says Carolyn Romano, associate director of Luxury Lifestyle Intelligence at The Wall Street Journal. “But at the same time, it’s yet another year of market volatility and inflation, so I just think they’re being a little bit more thoughtful about the way that they’re traveling.”

Availability of flights and hotels is the second-biggest issue for travellers, with 76% of readers responding that it is a factor of importance for them.

Notably, as factors of importance, both loyalty programs and discounts and deals are up 10 percentage points year over year. Romano says this increase is “pretty significant.”

“Our reader approaches every purchase as an investment of some sort, and even our reader is still taking all of these factors into consideration,” she says.

Despite rising costs, the post-Covid enthusiasm for travel remains, with 70% of respondents traveling more than they have in the past. Over the next 12 months, WSJ readers’ average anticipated spend on leisure travel is US$18,305, up from last year’s US$18,250.

As for destinations, 86% of respondents are considering traveling to Europe, down just 1% from last year. Italy is the top European country of choice—superseding the U.K.—seeing a 9% annual increase in interest.

Though most destinations, both international and domestic, included in the survey saw similar interest as last year, traveling to Asia is up 10 points from 2023, with 40% of respondents considering booking a trip to the continent. Japan ranks the highest, with 61% of respondents considering traveling there, up 6% from last year.

When making travel plans, 72% of WSJ readers say they go to family and friends for recommendations. Only 13% report consulting a travel agent, though people taking cruises are much more likely to use a travel agent.

August 8, 2024

The Tesla of Italy, Aehra’s Sexy EVs Now Have Names

ByAehra, the company that calls itself “Italy’s first pure EV brand,” has two uncommonly attractive vehicles in the works, the Impeto SUV and the Estasi sedan. The designs were first shown in 2022 and 2023 , then unnamed. Pricing for both vehicles is expected to be in the vicinity of US$170,000.

Aehra has some private resources, but is also awaiting government funding. It has submitted a €1.2 billion (US$1.3 billion) development plan to Italy’s Ministry of Industry (controller of the country’s Automotive Fund) to underwrite construction of a 200,000-square-metre plant, which it plans to build at Mosciano Sant’Angelo, in the Abruzzo region of eastern Italy. Aehra says it will create 540 jobs in the region, and 110 more at its headquarters in Milan.

The Estasi with its doors open
Courtesy of Aehra

Hazim Nada, Aehra’s U.S.-born but Italy-raised CEO and founder, tells Penta he expects the Automotive Fund to be capitalised with €2.5 billion next year.

“The government is quite enthusiastic about this project, and we don’t see anyone else with significant production plans,” he says, adding that automotive start-ups are thin on the ground “in Europe, not just in Italy.”

Nada says the company had originally planned to build its cars via an existing contract manufacturer such as Magna Steyr in Austria, but he says finding a plant that could handle the special carbon-fibre process Aehra plans to use proved difficult. “It’s been a busy year, focusing on the location for our assembly line,” he says. “I hope to move soon to working on consolidating our dealer network and sales process.”

The company likes Abruzzo because it’s not only the centre of Italy’s lightweight carbon-fibre industry, but also a hive of EV expertise at the University of L’Aquila. As its plans changed, Aehra has had to push back its start date. Nada says the company aims to be through the building-permit process by the end of the year or early 2025, then start construction of the plant—a 1.5- to two-year process.

A rendering of the Aehra Estasi interior.
Courtesy of Aehra

Cars should start issuing from the plant in 2027, Nada says. The plan is to eventually scale up to 50,000 vehicles annually. He says Aehra does not intend to produce anything but battery EVs.

“Our focus is to build cars you can’t create with a thermal engine,” he says. “That’s our core. We couldn’t achieve the same results with hybrids.”

The designer of the cars was Filippo Perini, a veteran of Audi and Lamborghini. The cars are certainly beautiful, and closely related in their very streamlined designs. Nada says “the platforms are identical below the beltline.” The vehicles have frameless upward-opening doors (the company calls them Dihedral Facing Doors) that leave a large opening and ease entry and exit. The target is for them to have a very low coefficient of drag, 0.21, which means they should slip easily through the air.

Aehra’s modified styling for its Impeto SUV.
Courtesy of Aehra.

The announced statistics are impressive, with a 500-mile range (close to certain versions of the Lucid Air) via 120-kilowatt-hour Miba Battery Systems packs and a top speed of around 165 miles per hour from the 800-horsepower powertrain. Zero to 62 miles per hour should take less than three seconds in the Estasi sedan, aided by a target curb weight of around 4,850 pounds (low for an EV with that size battery pack). A 10% to 80% fast charge should take 15 minutes.

Like the aforementioned Lucid, the Aehras are intended to be roomy inside. The SUV “will effortlessly accommodate four full-size National Basketball Association players while leaving room for a 6-foot adult in the middle of the rear-seat row,” the company says.

Aehra is targeting North America, Europe, and the Gulf States as markets for its cars. Nada thinks the Impeto SUV might have a sales edge.

“The SUV is easiest in the current market, but we expect to see some surprises with the sedan,” he says.