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.
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.
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 criticized 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 labeling 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.
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.
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.
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
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 mold. 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 PACIFICThe 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 mould 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 CONTACT: kristen@m18pr.com
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 mold.
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.
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 .
Rolls-Royce’s Bespoke division is exclusivity personified, and the highest rung in that ladder is Coachbuild—which goes far beyond selecting unique colours 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.
My girlfriend and I treat the outside of our apartment fridge like one big collage.
In the past few years, after attending wedding after wedding after wedding, we have unwittingly created a standing scrapbook of “Save the Date!” magnets and floral-patterned invitations, among other gilded mementos. But recently, we decided it was time to give the fridge collage a refresh. And in doing so, we realized something depressing: The majority of the happy-looking couples pictured were either now divorced, breaking up or in the process of seriously re-evaluating their relationship.
As a friend, I’ve learned so much from my newly divorced pals, and I admire the resilience, optimism and strength they demonstrated in the face of their breakups. But as a personal-finance columnist, I have also taken a lot of money lessons from these new divorcées—and I believe the insight is relevant to more than just other married couples.
One friend was able to rely on her prenuptial agreement to save her close to $100,000 in the wake of a speedy split; another woman I know escaped a financially abusive relationship with less than a grand to her name remaining in her savings account.
Darla Gale , a California-based therapist and founder of Heartstrings Counseling, says she often talks with clients about making meaning from these relationships and the accompanying financial fallout. Sharing lessons and experiences is one way to do so. “Money comes up a lot in my practice, because financial hardships are one of the reasons for divorce,” she says. “It can be very empowering to say, ‘I can do this on my own. I just didn’t have the tools to do it on my own.’ ”
Together isn’t always better
The dissolution of a relationship can bring a host of financial lessons that shape how we talk about money in our relationships going forward—whether we were the bride, the groom or the smiling person snapping a selfie with the cake.
In my previous reporting, I’ve researched quite a bit about just how beneficial it can be for couples to combine finances. Studies show this enables them to maximise their potential to grow wealth and even leads to both partners feeling happier in the relationship.
But after witnessing their first wave of divorces, many younger people are embracing a different approach. “I’m doing a lot of prenuptial agreements for people who are younger, and they are for the most part wanting to keep their money separate, which is interesting and very different from the way prenups were done 10 to 20 years ago,” says Lisa Zeiderman , a New York-based divorce lawyer.
Gale says she now often sees couples doing both: sharing expenses in one joint account, for example, while still maintaining separate funds “so it doesn’t feel like one person is more in control.”
Inspired by this approach, my girlfriend and I have adopted something similar. To save for a down payment on a future house, we contribute near-equal amounts to a joint high-yield savings account that we opened together. We also share a credit card to use when we buy groceries, pay our dog’s vet bills or handle other shared expenses.
But at the same time, we both maintain separate checking accounts and saving accounts, for our own individual needs. This way, should disaster ever strike, we’re both able to maintain a level of personal autonomy and build our own lives anew.
After all, as Gale put it, “Autonomy equals equality.”
Older is better…and worse
Here’s the good news I’ve learned while looking at divorce through a personal (and personal-finance) lens: On the whole, millennial couples are actually divorcing at lower rates than people of previous generations at similar ages.
Economist Brett House , a professor of professional practice in the economics Division at Columbia Business School, attributes this decline to two important things: Millennials are getting married at later ages. And they’re likelier to have received more education by the age of their first marriage.
But waiting to tie the knot doesn’t protect you against the financial fallout of a divorce—if anything, marrying later means both parties might have had more time to accumulate more assets that could lead to financial conflict once split.
“People may be more mature and more aware of themselves and clearer about what they want from a relationship than was the case in earlier years,” House says.
Gale recommends clearly stating those financial priorities at the start of a relationship, when everything still seems rosy. “Don’t be sneaky about it, but go into the relationship and say ‘I’m going to have a separate bank account, whether that is for going out or having a ‘fun’ fund but autonomy is really important to me,’ ” she says.
And watch your potential partner’s reaction to such a conversation—that can also inform your decision to build a life with them.
Don’t compromise your career
In her many years advising women and working in divorce courts, Zeiderman says she often gives young to-be-married women the same advice: Don’t lose sight of your career.
Zeiderman has seen firsthand how difficult it is for many people, in compromising their own professional trajectories, to rebuild their earnings post-divorce.
“So many decide, frankly, to let the other person build their career and then at the end of the day, you cannot make up for this in spousal support, you cannot make up for it in the distribution of their assets,” she said. “Stay in the workforce. You must.”
We like to think that is easy to do, but in practice, both partners prioritising their careers isn’t easy.
This summer, I’ll have just embarked upon a new career as a freelance writer and podcast host; at the same time, my girlfriend, also a journalist, will be traveling throughout France covering the summer Olympics. We talked in advance about how important this summer will be for us, work-wise, and agreed that although our relationship—and our patience!—may be tested, affording each other some grace during this high-pressure time will go a long way. Building our careers will benefit our household bottom line, but it’s also insurance for both of us.
The ‘what if we broke up’ talk
“The forethought is easier to do when things are good,” Zeiderman told me. And her words stuck with me.
I thought back to the dozens of conversations I’ve had with my divorced friends. So many of them regretted never discussing money goals, habits or strategies with their partners in advance of marriage. Far too often, they said, they worried bringing up finances would dampen the excitement of the honeymoon phase; then, months or years later, the unsaid words curdled and soured with resentment.
My girlfriend and I keep a standing monthly “money date” on the calendar. We make the time to curl up on the couch, just the two of us, and review our household finances. For us, that looks like going over the bank statement and checking on progress made toward our financial goals. On past money dates, we’ve compared prices for coming purchases, paid down debt and even shared how things stand in our separate personal accounts.
No one likes paying bills or calculating debt totals, but we work hard to make the process as painless as possible. But this coming month, I think the topic I have planned may be our most uncomfortable one yet.
That’s because, inspired by Zeiderman and Gale, this time I have something particularly “special” planned for our money date: the “What if we broke up?” conversation.
I want to plan out how we would divide our shared assets and then put these details in writing—together. If something were to happen in the future, we could hopefully put aside our differences to rely on this plan and make the detangling of our finances much simpler.
Luckily for me, my girlfriend knows me well enough by now to see the romance hiding in this gesture.
The price of a basic Hermès Birkin handbag has jumped $1,000. This first-world problem for fashionistas is a sign that luxury brands are playing harder to get with their most sought-after products.
Hermès recently raised the cost of a basic Birkin 25-centimetre handbag in its U.S. stores by 10% to $11,400 before sales tax, according to data from luxury handbag forum PurseBop. Rarer Birkins made with exotic skins such as crocodile have jumped more than 20%. The Paris brand says it only increases prices to offset higher manufacturing costs, but this year’s increase is its largest in at least a decade.
The brand may feel under pressure to defend its reputation as the maker of the world’s most expensive handbags. The “Birkin premium”—the price difference between the Hermès bag and its closest competitor , the Chanel Classic Flap in medium—shrank from 70% in 2019 to 2% last year, according to PurseBop founder Monika Arora. Privately owned Chanel has jacked up the price of its most popular handbag by 75% since before the pandemic.
Eye-watering price increases on luxury brands’ benchmark products are a wider trend. Prada ’s Galleria bag will set shoppers back a cool $4,600—85% more than in 2019, according to the Wayback Machine internet archive. Christian Dior ’s Lady Dior bag and the Louis Vuitton Neverfull are both 45% more expensive, PurseBop data show.
With the U.S. consumer-price index up a fifth since 2019, luxury brands do need to offset higher wage and materials costs. But the inflation-beating increases are also a way to manage the challenge presented by their own success: how to maintain an aura of exclusivity at the same time as strong sales.
Luxury brands have grown enormously in recent years, helped by the Covid-19 lockdowns, when consumers had fewer outlets for spending. LVMH ’s fashion and leather goods division alone has almost doubled in size since 2019, with €42.2 billion in sales last year, equivalent to $45.8 billion at current exchange rates. Gucci, Chanel and Hermès all make more than $10 billion in sales a year. One way to avoid overexposure is to sell fewer items at much higher prices.
Many aspirational shoppers can no longer afford the handbags, but luxury brands can’t risk alienating them altogether. This may explain why labels such as Hermès and Prada have launched makeup lines and Gucci’s owner Kering is pushing deeper into eyewear. These cheaper categories can be a kind of consolation prize. They can also be sold in the tens of millions without saturating the market.
“Cosmetics are invisible—unless you catch someone applying lipstick and see the logo, you can’t tell the brand,” says Luca Solca, luxury analyst at Bernstein.
Most of the luxury industry’s growth in 2024 will come from price increases. Sales are expected to rise by 7% this year, according to Bernstein estimates, even as brands only sell 1% to 2% more stuff.
Limiting volume growth this way only works if a brand is so popular that shoppers won’t balk at climbing prices and defect to another label. Some companies may have pushed prices beyond what consumers think they are worth. Sales of Prada’s handbags rose a meagre 1% in its last quarter and the group’s cheaper sister label Miu Miu is growing faster.
Ramping up prices can invite unflattering comparisons. At more than $2,000, Burberry ’s small Lola bag is around 40% more expensive today than it was a few years ago. Luxury shoppers may decide that tried and tested styles such as Louis Vuitton’s Neverfull bag, which is now a little cheaper than the Burberry bag, are a better buy—especially as Louis Vuitton bags hold their value better in the resale market.
Aggressive price increases can also drive shoppers to secondhand websites. If a barely used Prada Galleria bag in excellent condition can be picked up for $1,500 on luxury resale website The Real Real, it is less appealing to pay three times that amount for the bag brand new.
The strategy won’t help everyone, but for the best luxury brands, stretching the price spectrum can keep the risks of growth in check.
