Claude Monet Water Lily Painting, Never Shown Publicly, Could Fetch at Least $65 Million

A water lily painting by Claude Monet of his Giverny gardens is expected to achieve at least US$65 million at Christie’s November sale of 20th-century art in New York

Le bassin aux nymphéas, or water lily pond, painted around 1917 to 1919, is a monumental canvas extending more than six-and-a-half feet wide and more than three-feet tall, that has been in the same anonymous private collection since 1972. According to Christie’s, the painting has never been seen publicly.

The artwork is “that rarest thing: a masterpiece rediscovered,” Max Carter, Christie’s vice chairman of 20th and 21st century art said in a news release Thursday.

A first look at this thickly painted example of Monet’s famed and influential water lily series will be on Oct. 4, when it is revealed in Hong Kong.

The price record for a Nymphéas painting by Monet was set in May 2018 for Nymphéas en fleur, another large-scale work that had been in the collection of Peggy and David Rockefeller. That painting sold for nearly US$85 million.

The current work for sale is guaranteed, Christie’s confirmed. The auction house did not provide further details on the seller.

Is China’s Economy Stabilising? Why September’s Data May Disappoint.

China’s economic recovery isn’t gaining the momentum money managers are awaiting.

Data from China Beige Book show that the economic green shoots glimpsed in August didn’t sprout further in September. Job growth and consumer spending faltered, while orders for exports came in at the lowest level since March, according to a monthly flash survey of more than 1,300 companies the independent research firm released Thursday evening.

Consumers’ initial revenge spending after Covid restrictions eased could be waning, the results indicate, with the biggest pullbacks in food and luxury items. While travel remains a bright spot ahead of the country’s Mid-Autumn Festival, hospitality firms and chain restaurants saw a sharp decline in sales, according to the survey.

And although policy makers have shown their willingness to stabilize the property market, the data showed another month of slower sales and lower prices in both the residential and commercial sectors.

Even more troubling are the continued problems at Evergrande Group, which has scuttled a plan to restructure itself, raising the risk of a liquidation that could further destabilise the property market and hit confidence about the economy. The embattled developer said it was notified that the company’s chairman Hui Ka Yan, who is under police watch, is suspected of committing criminal offences.

Nicole Kornitzer, who manages the $750 million Buffalo International Fund (ticker: BUIIX), worries about a “recession of expectations” as confidence continues to take a hit, discouraging people and businesses from spending. Kornitzer has only a fraction of the fund’s assets in China at the moment.

Before allocating more to China, Kornitzer said, she needs to see at least a couple quarters of improvement in spending, with consumption broadening beyond travel and dining out. Signs of stabilisation in the housing market would be encouraging as well, she said.

She isn’t alone in her concern about spending. Vivian Lin Thurston, manager for William Blair’s emerging markets and China strategies, said confidence among both consumers and small- and medium-enterprises is still suffering.

“Everyone is still out and about but they don’t buy as much or buy lower-priced goods so retail sales aren’t recovering as strongly and lower-income consumers are still under pressure because their employment and income aren’t back to pre-COVID levels,” said Thurston, who just returned from a visit to China.

“A lot of small- and medium- enterprises are struggling to stay afloat and are definitely taking a wait-and-see approach on whether they can expand. A lot went out of business during Covid and aren’t back yet. So far the stimulus measures have been anemic.”

Beijing needs to do more, especially to stabilise the property sector, Thurston said. The view on the ground is that more help could come in the fourth quarter—or once the Federal Reserve is done raising rates.

The fact that the Fed is raising rates while Beijing is cutting them is already putting pressure on the renminbi. If policy makers in China wait until the Fed is done, that would alleviate one source of pressure before their fiscal stimulus adds its own.

Frank Stella’s ‘Abra I’ to Lead at Christie’s Post-War to Present Sale

More than 280 modern and contemporary artworks will be up for sale Friday at Christie’s Post-War to Present auction in New York.

The live sale, which will be held at Christie’s Rockefeller Center sale room, has a low estimate of more than US$27 million and will be led by Frank Stella’s Abra I, 1968, which is estimated to fetch between US$1.2 million and US$1.8 million, according to a news release from Christie’s.

Abra I is a fantastic example by Stella, a large-scale canvas from the protractor series,” says head of sale Julian Ehrlich. “It engages so many crucial aspects of his practice, including scale, geometry and color, and has appeal to established post-war collectors and others who are just coming to historical art.”

Ehrlich, who has overseen the semiannual Post-War to Present sale since its first March 2022 auction, says his goal in curating the sale was to “assemble a thoughtful and dynamic auction” with works from both popular and lesser-known artists.

“With Post-War to Present, we really have a unique opportunity to share new artistic narratives at auction. It’s a joy to highlight new artists or artists who have been overlooked historically and be a part of that conversation in a larger art world context,” he says.

Joe Overstreet’s ‘Untitled’, 1970
Christie’s

Works from a number of female artists who were pioneers of post-war abstract painting, including Helen Frankenthaler, Lynne Drexler, and Hedda Sterne, will be included. The auction will also include pieces from a group of Black artists from the 1960s to present day, including Noah Purifoy, Jack Whitten, and David Hammons, in addition to a Christie’s debut from Joe Overstreet (Untitled, 1970) and an auction debut from Rick Lowe (Untitled, 2021).

“The story of art is necessarily diverse,” Ehrlich says. “The sale itself is broad, with more than 280 works this season, and it has been fun to think through artists inside and outside of the canon that we can put forward as highlights of the auction.”

In addition to Abra I, other top lots include Tom Wesselmann’s Seascape #29, 1967, (with an estimate between US$800,000 and US$1.2 million); Keith Haring’s Andy Mouse, 1986, (also with an estimate between US$800,000 and US$1.2 million); and Jack Whitten’s Garden in Bessemer, 1986 (with an estimate between US$700,000 andUS$1 million).

“I think of the Post-War to Present sale as being especially dynamic … in the best case, even for someone deeply embedded in the market, there should be works which surprise and delight and are unexpected, as well as celebrated market-darlings and art-historical greats,” Ehrlich says.

Meta Unveils New Mixed Reality Headset in Push for Traction on Metaverse

Facebook parent Meta Platforms on Wednesday announced the release date of its coming Quest 3 mixed-reality headset and new Ray-Ban smart glasses along with a bevy of AI assistants for its social apps.

“The limits of your physical space are going to be able to expand,” Meta CEO Mark Zuckerberg said when announcing the new products. “You’re going to be able to be a part of much larger worlds.”

The company is hoping the devices will jump-start its push to bring users into the so-called metaverse, an effort on which it has spent billions of dollars and seen limited returns. Apple is set to release its Vision Pro headset in 2024, years after Zuckerberg renamed the company in an attempt to focus on what he’s said may be the next emerging computing platform.

The Quest 3 will place an emphasis on the ability for users to work or play in apps that overlay virtual objects within users’ physical spaces, Zuckerberg said. The headset will begin shipping to users on Oct. 10, with preorders for the $499 device starting on Wednesday. Zuckerberg said the device will place emphasis on the ability for users to work or play in apps that project virtual objects within users’ physical spaces.

Zuckerberg said the company designed the device to have the “world’s best immersive content library.” As part of the presentation, Zuckerberg showed a demonstration of a Lego game and announced that Meta has joined with Microsoft to bring Xbox Cloud Gaming to the device in December. Additionally, Microsoft 365 will come to the Quest by the end of the year, Zuckerberg said.

The Quest 3 “is going to be the best value spatial computing headset on the market for a long time to come,” said Meta Chief Technology Officer Andrew Bosworth, adding that the device features no wires or a battery pack, a shot at Apple’s Vision Pro device. That headset will cost $3,499.

Meta will also release the second generation of its Ray-Ban smart glasses on Oct. 17 for $299. The Wall Street Journal had previously reported that the devices would arrive as soon as this fall.

The second generation Ray-Ban smart glasses will allow users to livestream their perspective to their followers. The new smart glasses will include a 36-hour battery life and will be available in more Ray-Ban models than its predecessor.

The device will also come equipped with Meta AI, an artificial-intelligence assistant announced by Zuckerberg on Wednesday. Users will also be able to point at objects or landmarks they are looking at and ask Meta AI for information about it.

“Smart glasses are the ideal form factor to let an AI assistant see what you’re seeing and hear what you’re hearing,” Zuckerberg said.

Meta AI is built on the company’s Llama 2 large-language model and is a general purpose AI assistant that can answer user questions within Messenger, WhatsApp and Instagram. Meta AI will be able to provide users with real-time information through a partnership with Microsoft Bing, Zuckerberg said.

Additionally, Meta announced that it will also release 28 AI chatbots that users will be able to interact with. Meta joined with a number of celebrities, including Tom Brady, Paris Hilton and Snoop Dogg, whose faces provide facial expressions as users interact with the chatbots. The Journal had previously reported that Meta would release AI chatbots with personalities.

“This is our first effort at training a bunch of AIs that are a bit more fun,” Zuckerberg said, adding that they will have a number of limitations that will become apparent to users.

Zuckerberg said the AI chatbots will be released in a limited beta mode on Wednesday.

In addition to the chatbots, Zuckerberg announced EMU, an AI model capable of taking users’ text prompts and turning them into images within five seconds. EMU, which won’t be open sourced, will be integrated within Meta AI and will roll out to English-speaking users over the next month, starting on Wednesday. The image-generating model will allow users to create custom stickers they can send to friends, and it will also allow users to edit their images on Instagram next month, Zuckerberg said.

—Meghan Bobrowsky contributed to this article.

Your Online Account May Have Been Breached? Don’t Just Sit There. Do Something.

How do consumers respond when their online accounts are exposed to hackers? Many of them simply don’t.

Data breaches at major firms have become all too common, with more than 110 million user accounts exposed in just the second quarter of 2023. Yet our research found that nearly two-thirds of U.S. consumers would return to a site after they were notified of a breach—with only the bare minimum of precautions, like changing their passwords.

Almost a quarter of the roughly 200 people we surveyed said they would return to the compromised website with no changes to their behavior at all. Only 10% said they wouldn’t go back.

Even people who had cybersecurity training within the past 90 days—in other words, people who should be primed to protect themselves—took risks. In this subsequent study, over a quarter of roughly 500 people said they would return to the breached website while taking the absolute minimum security measures, and only about 9% would take more-complicated steps such as setting up two-factor authentication. And they would do that only if they experienced real financial consequences, like fraudulent charges on their credit cards.

Why wouldn’t people protect themselves? Many of the consumers we surveyed believed that there were few—if any—alternatives to the websites they used frequently, and all websites seemed to be affected by data breaches. Why bother beefing up security? Likewise, some people said they would stick with a compromised site because they had put so much time and effort into their presence on it—a classic sunk-cost fallacy.

Since doing nothing may put your finances and personal information at risk, what should you do in case of a breach? Based on my experience as a researcher in this domain and guided by input from customers recovering from data breaches, I recommend the following actions.

The first steps

Take each data-breach notification seriously. Immediately change passwords on the affected sites and sign up to follow the updates from the breached firm. This is also a good time to ensure your passwords are unique and not being used across several sites.

Find out what kind of breach it is. Some breaches violate your privacy—such as stealing your playlist or viewing preferences—but may not be as damaging as other hacks. So they may just require a simple password change on the affected site. Even the breach of encrypted password data, such as in the LastPass data breach, while serious, isn’t an immediate threat.

On the other hand, things like compromised credit-card numbers, financial data and personally identifiable information need stronger attention. Even seemingly innocuous breaches of social-media networks may reveal data that can be used to impersonate you and perhaps be used to invade the privacy of those around you. For instance, hackers might be able to figure out your “forgot password” questions on websites by learning where you grew up, the names of your pets and more.

The next steps

Set up push notifications for financial data. When you’re notified of data breaches that involve credit cards or payment information, review the transactions on the affected accounts, going back to the previous payment period. Whether or not there has been unusual activity, protect yourself by adding mobile push notifications for credit-card transactions—an option offered by most credit cards, online-payment mechanisms and banks. Most notifications happen in real time, so consumers affected by data breaches can quickly identify and contest improper charges.

Use free credit monitoring. Some credit cards and banking firms such as Discover and Chase provide free monitoring of consumer credit and provide monthly updates of noteworthy events and changes. Some go further and provide benefits such as removal of your personally identifiable information found on public sites, including data brokers. Using these services is an easy way to identify and report fraudulent activity, as well as protect against identity theft—so review this data regularly if your information has been exposed.

Enable dual-factor authentication on all of your accounts. This is a good practice in general but is especially important for anyone affected by data breaches. With dual-factor authentication, you enter your password as usual but then confirm your identity using a personal device, typically a mobile phone. This limits someone from logging into the account with a stolen password.

If your social-media platform has been breached

Along with enabling dual-factor authentication, there are a number of steps you should take in the event of a social-media breach.

First, change the password and log in with the new one. Check the login-activity page to see if anyone other than you has logged in, and then look for the option to delete all other active sessions—so every other device that is currently logged in is effectively logged out.

Also review all direct messages, posts, and comment activity on the account, and report anything suspicious. If it affects other people, let them know. Finally, pause or temporarily deactivate the account, if that is an option, to make it even tougher for hackers to get access.

Rajendran Murthy is the J. Warren McClure Research Professor of Marketing at the Rochester Institute of Technology’s Saunders College of Business.

The World’s Biggest Crypto Firm Is Melting Down

After FTX crashed, the world of crypto seemed to belong to the largest exchange, Binance. Less than a year later, Binance is the one in distress.

Under threat of enforcement actions by U.S. agencies, Binance’s empire is quaking. Over the past three months, more than a dozen senior executives have left, and the exchange has laid off at least 1,500 employees this year to cut costs and prepare for a decline in business. And while Binance still looms large in crypto, its dominance is dwindling.

Binance now handles about half of all trades where cryptocurrencies are directly bought and sold, down from about 70% at the start of the year, according to data provider Kaiko.

What happens to Binance will have immense implications for the crypto industry because the exchange is so big. Industry players and watchers say other exchanges would fill the void if Binance were to collapse. But in the short term, liquidity in the market could evaporate, driving the price of tokens sharply down.

One institutional trader told The Wall Street Journal that his company has conducted fire drills to withdraw its assets from Binance quickly in the event of a meltdown.

Yi He, Binance’s co-founder and chief marketing officer, vowed to overcome the troubles in a message to Binance staff last month.

“Every battle is a do-or-die situation, and the only thing that can defeat us is ourselves,” she wrote in the message viewed by the Journal. “We have won countless times, and we need to win this time as well.”

Binance is a frequent investor in third-party crypto projects and beyond. Binance has invested in X, formerly known as Twitter. Binance co-founder Changpeng Zhao—or CZ as his 8.6 million X followers know him—is the biggest face of crypto.

“You just can’t quantify what would happen to the industry if Binance disappeared, given it has been responsible for fostering a huge amount of innovation and growth,” said Anthony Georgiades, a general partner at Innovating Capital, a fund that invests in early-growth companies.

The U.S. Justice Department has undergone a years long investigation that could result in criminal charges for Binance and Zhao as well as billions of dollars of fines, according to people familiar with the probe.

Binance also faces a Securities and Exchange Commission lawsuit that alleges it and Zhao operated illegally in the U.S. and misused customers’ funds. The firm has acknowledged past mistakes but says customer money is safe and it is committed to compliance.

“We have worked tirelessly not just to learn the lessons of the past, but also to continue to invest in the teams and systems that ensure user protection,” a spokesman said.

Binance launched in China in 2017, though it claims to be based nowhere, with staff scattered around the world. Its global website is accessible by traders almost everywhere, but that number is falling as its presence has been forbidden in many countries. In Europe, more countries are shutting their doors to the exchange.

In the U.S., activity at its local exchange, Binance.US, has basically dissipated. Its chief executive officer, legal chief and risk head all left recently.

In a virtual Binance.US meeting days before his departure earlier this month, Binance.US CEO Brian Shroder said revenue at the exchange had fallen 70% year to date, according to a presentation viewed by the Journal. Executives looked on with dismay.

Shroder told employees Zhao would need to resolve “his regulatory matters, put his .US holdings in a blind trust, or sell his shares” in order for the U.S. platform to maintain its growth initiative. Those steps would allow the company to unblock banking relationships and get licenses, he said. Zhao is the majority owner of Binance.US and the global exchange.

A spokeswoman for Binance.US declined to comment.

Binance and the DOJ have been talking for months, according to people familiar with the discussions, and inside Binance, there have been discussions on whether Zhao should step down.

Zhao’s insistence in remaining at the helm of the company has frustrated some executives who believed him leaving would improve the chances of the company surviving, the Journal previously reported.

The company upheaval has also hurt employee morale.

Employees confronted Zhao in a summer meeting following layoffs, according to messages viewed by the Journal, in a rare showing of criticism.

“Some ppl laid off were given 0 days notice and/or found out they got laid off because they couldn’t login to the system anymore. How is that treating them respectfully? Is 2 weeks severance respectful?” one anonymous employee asked Zhao in the all-hands meeting chat. Nine others upvoted that. The question went unanswered.

A further stumbling block for Binance came in late August, when the Journal published an article on Binance customers’ use of sanctioned Russian banks. The DOJ has also been investigating Binance in connection with possible violations of U.S. sanctions on Russia, the Journal has reported.

Following the Journal story, the Justice Department questioned Binance about the banks’ usage, and Binance’s chief compliance officer, Noah Perlman, met with department officials to discuss their concerns, a person with direct knowledge of the matter said.

Pressure from the DOJ was partly responsible for Zhao’s decision to begin winding down Binance’s business in Russia, once one of its most important markets, the person said. Over the following two weeks, Binance barred customers from using the sanctioned banks and forced out the executives managing its Russia business. It said it was considering a full withdrawal from Russia.

Zhao publicly remained defiant. “We are one community,” he wrote on X on the day the Russia executives left. “Keep building!”

But behind closed doors, Zhao has been bringing new lawyers to handle the DOJ case, according to people familiar with the move. And Zhao has been staying put in his home in the United Arab Emirates, which doesn’t have a mutual extradition treaty with the U.S.

Meet the Dark Knight—a Brooding, Souped-up Tesla Model S

The US$104,990 three-motor 2023 Tesla Model S Plaid Edition is among the fastest cars in the world, able to reach 60 miles per hour in just two seconds. It puts out 1,020 horsepower and 1,050 pound-feet of torque.

The Plaid is so quick it leaves its drivers gasping for breath, but can the car be improved? Unplugged Performance, a tuning shop in Hawthorne, Calif., that launched in 2013, thinks it can. So was born the Dark Knight, a tweaked Model S-APEX Plaid that has been extensively reworked to better hug the pavement. It sells for approximately US$230,000, including the donor car. But the many options could make it costlier.

The powertrain stays the same, but the car gets a 19-piece carbon fibre wide body kit that allows it to wear big 21-inch, lightweight forged wheels. Airflow is improved with “bargeboard” bodywork in front of the front wheels, a technique adapted from Formula One. Also directing air is the company’s Autobahn front carbon-fibre diffuser. The car meets the world with a sinister satin-black finish, featuring more exposed carbon fibre.

The car’s centre of gravity is lowered via a kit, and there’s a three-way adjustable rear sway bar and a rear-mounted GT strut tower brace. Also part of the suspension build are a series of billet-aluminium adjustable control arms that cut weight, increase strength, and allow some fine adjustments. For those choosing optimum track performance, there are full-race coilover suspension choices available. The Dark Knight needs to stop, so there are carbon ceramic brakes all around, cooled via a ducting system.

The interior was designed in collaboration with von Holzhausen, a company created by Vicki von Holzhausen (married to Tesla chief designer Franz von Holzhausen) that specialises in vegan leather products, including handbags. The tough-wearing interior fabric is in Serrano red and made from bamboo.

The Dark Knight interior uses vegan leather from von Holzhausen.
Unplugged Performance

Unplugged also makes over the other Teslas, including the S, 3, X, Y, and will also tweak the forthcoming Cybertruck. Brendan Sangerman, who directs marketing at Unplugged, says the Dark Knight is “the ultimate daily driver sports sedan.” Asked why the electric motors are left alone, he says, “You wouldn’t want it to be any faster than it is. Instead, we match the performance of the suspension and braking to the level of performance that the car already has.”

Sangerman emphasises that the Dark Knight is a bespoke product, and that the customer has a wide choice in the interior colours and fabrics. “We want customers to be very hands-on in the process,” he said. “If you tell us you like the interior shade in a specific Rolls-Royce, we can match it. Our parts catalog is pretty extensive.”

Unplugged is located close to the Tesla Design Center in Hawthorne. Its first Model S build was shown at the SEMA Show in Las Vegas in 2014, and the company exhibited at the Tokyo Auto Salon in 2016. Unplugged began putting its vehicles to the test on race tracks, and it set some EV records. It also won the exhibition class at the Pikes Peak International Hill Climb in 2021.

There will always be a market for performance tuners, and Unplugged has found a niche market in making some of the world’s most exciting EVs be just that little bit more intoxicating.

American Express Travel President Talks About the Post-Pandemic Vacation Boom

Audrey Hendley, as the president of American Express Travel, is attuned to how trips have evolved in recent years and what vacationers are seeking on those getaways.

The organisation is one of the largest travel and lifestyle networks in the world and spans 7,000 travel consultants in 23 countries. Its global footprint includes 1,400 lounges in 140 countries and more than 1,500 properties in its collection of Fine Hotels + Resorts.

Business at American Express Travel is bouncing back from the pandemic slump: In the second quarter of this year, bookings through the network across 138 million American Express cards that are currently in use reached pre-Covid levels.

Hendley, who lives in Westchester, New York, speaks to Penta about the most in-demand travel destinations, the new movement of traveling with a purpose, and her top advice for maximising any trip.

Penta: What are some travel trends you’re seeing this year?

Audrey Hendley: We have seen a notable shift in people’s interests driving travel decisions. Travellers are booking “set-jetting” trips that are inspired by shows like The White Lotus and Emily in Paris because they are increasingly inspired by pop culture.

Food also continues to impact booking decisions, with people building entire trips around reservations at incredible restaurants like Noma in Copenhagen or blocking off afternoons to do a taco tour in Mexico City. Travel has become less about the “where” and more about the “why.”

Which destinations are the most popular and what’s up and coming?

We put out a Trending Destinations list every year that highlights the places our card members are traveling to; 2023 is a mix of perennial favorites like Paris and the Florida Key, and some lesser-known destinations like Woodstock, Vermont, and Montenegro. While people are still revisiting the cities they love, we are also seeing an increase in trips to places that are off the beaten path. And as borders have opened post-pandemic, we’re seeing more trips being booked to places like Asia and Australia.

How do you think the rising cost of travel will impact decisions in 2023?

Our 2023 Global Travel Trends Report found that 80% of travellers would rather take a dream vacation than purchase a new luxury item. Our values have fundamentally shifted since the pandemic, and now, people want meaning in everything they do—travel included. They’re more purposeful.

Pre-pandemic, travel was about checking off a list of destinations you wanted to see. Now, it’s about really exploring and seeing a place in depth. Travellers will go to fewer places but see more where they do go. And they’re willing to spend on experiences and memories—what better way to create those things than travel?

How are younger generations shepherding the travel trends that we are seeing today?

As they continue to gain independence and financial freedom, millennial and Gen Z travelers are putting their stamp on modern travel trends. They want experiences, especially ones that look good in photos on social media. We are also seeing that they are extremely conscious of the impact their trips have on the environment and the communities they visit. They are pushing the industry to be more purposeful—they want hotels that prioritise sustainability, support local economies by employing locals, and value inclusion and diversity.

Can you speak to the hallmark of a great hotel and a great hotel stay?

It’s a property that knows you when you’re there. The staff addresses you by name and makes you feel at home. They offer exceptional service, a luxury that’s relaxed and infuses your stay with personal touches. I was in Paris on a recent work trip, for example, and stayed at the Maison Delano, one of the newest properties in the city. I walked into my room and found a charger that worked in France waiting for me as a welcome gift. It was such a simple gesture but meant so much on a work trip.

The Centurion Lounge Network has been regarded as one of the most luxurious airport lounge experiences. What sets it apart from other airport lounges?

I think it’s the quality of the product. We try to offer elevated food and local flavors. The lounge at San Francisco Airport, for example, features wines from nearby Napa Valley, and in Seattle, home to a big coffee culture, we have a coffee and espresso bar. With cuisine, we try to use chefs from that location to create menus, and they’re all different by location. We also try to use as many local producers as possible.

In addition, we offer high-touch services like chair massages and manicures in some lounges.

As a globetrotter yourself, what are some of your best travel tips?

I like to travel like a local, especially to touristy destinations. I always look for the small shops and restaurants that give me the true flavour of a destination rather than the big names where all the tourists go.

I also enjoy visiting popular destinations during the so-called off-peak season. I was in Venice [Italy] in February where the weather was glorious, and there weren’t nearly as many crowds as there are during the summer.

On business trips, I love carving out some personal time to balance the intensity of long workdays. I also start the day with some form of exercise whether it’s a run or jog—this also gives me an opportunity to see the destination.

This interview has been edited for length and clarity.

How Research in Space Helps Doctors Treat People on Earth

Medical research in space is leading to advances that could help patients on Earth.

Several technologies developed for space exploration have afterward contributed to medical products. Infrared thermometers, for example, stem from infrared sensors created to remotely measure the temperature of distant stars and planets.

But increasingly, scientists aim to perform research in space specifically for human health. Interest in conducting medical research in space has grown as researchers recognise possibilities enabled by microgravity, in which objects appear to be weightless, aboard the International Space Station, or ISS, which orbits the Earth about 250 miles from its surface.

Removing gravity’s influence alters biological systems, enabling experiments that can’t be done on the ground. Researchers are sending materials into space to study treatments for cancer, heart disease, neurological disorders, blindness and other conditions.

Such investigations extend beyond civilian medicine. With preparations under way for long-term missions to the moon, and eventually to Mars, scientists are advancing technologies to help astronauts endure extended space travel and confront illnesses and medical emergencies.

Justifying the expense

Several factors complicate space-based research. The cost of transporting materials, for one, as well as preparations needed to convert experiments conducted on Earth into ones that can be run on the ISS, which is itself a complicated partnership of five space agencies from 15 countries. The station has been occupied continuously since November 2000.

Space studies’ potential to discover cures and create tools that make healthcare more accessible justify the expense and complexity, some scientists say.

“Everything we do onboard has potential applications for healthcare on Earth,” says Dr. Dave Williams, who conducted neuroscience research on space shuttle Columbia, and is now chief executive of Leap Biosystems, a developer of medical devices for virtual clinical care in space and on Earth.

Space travel itself, for example, is known to cause bone and muscle loss, immune suppression, central nervous system changes and other effects. Detrimental as these effects are, they are of particular interest to scientists.

For the most part, health concerns astronauts develop in space resolve when they return, says Dr. Christopher Austin, former director of the National Center for Advancing Translational Sciences and now CEO of biotechnology startup Vesalius Therapeutics. Studying how this reversal occurs could provide insight on turning back the clock on disorders of ageing on Earth, he adds.

Exposure to microgravity seems to replicate the effects of aging at the cellular level, says Michael Roberts, chief scientific officer of the U.S. National Laboratory on the ISS. As a result, investigators in months can glean insights from studies that might require years of research on Earth.

“What happens in space is akin to accelerated ageing,” says Arun Sharma, assistant professor at the Board of Governors Regenerative Medicine Institute at Cedars-Sinai Medical Center, who says his experience with space research includes sending stem-cell-derived heart cells to the ISS. “We can study these aging processes in a faster way in microgravity.”

Anticancer drug

Meantime, companies including drugmaker Merck and biotechnology concerns Axonis Therapeutics and LambdaVision aim to capitalise on microgravity to improve existing treatments or optimize experimental ones.

Merck has been conducting experiments aboard the ISS to determine whether it can come up with a crystalline form of an anticancer drug in its portfolio, Keytruda. The drug, which treats several cancers, generated $20.9 billion in sales in 2022. Patients receive it in 30-minute intravenous infusions. Its active ingredient, pembrolizumab, a large molecule known as a monoclonal antibody, isn’t highly soluble, so developing a high-concentration liquid formulation that can be given through a simple injection is difficult, says Paul Reichert, a Merck Research Laboratories scientist.

One solution is to produce it in crystallised form, a routine process for small-molecule drugs taken as pills. But making an optimal crystalline suspension is challenging for large-molecule, antibody drugs, Reichert says.

So Merck decided to attempt it in space. In 2017 it sent pembrolizumab to the ISS to see whether crystals would form better in space. Without gravity, molecules move more slowly and forces including convection currents are limited. Crystals produced on the ISS were smaller and more uniform than Earth counterparts, Reichert says.

On the ground, Merck identified techniques to mimic these effects and enable high-quality crystals. Now it is conducting long-term stability research to enable a Keytruda formulation that is injectable and, unlike today’s version, stable at room temperature. That would make it more accessible in areas with limited refrigeration.

Such studies will take years, but could lead to a lower-cost version of Keytruda that is easier to administer and cheaper to transport, Reichert says.

“That would be a game-changer for biologics drug delivery,” he adds.

Surprising results

Sometimes space research yields surprising results.

Biotech startup Angiex sought to better understand how an experimental cancer drug interacted with normal cells lining blood vessels, known as endothelial cells, says Paul Jaminet, co-founder, president and chief operating officer. The problem was these cells, when cultured on Earth, typically die quickly unless they are cultured with growth factors and changed to a proliferative state similar to that of endothelial cells in tumours. As a result, there is no good cell-culture model for the normal endothelial cells in which Angiex’s drugs are expected to have their toxicity, he says.

Angiex’s team hypothesised that culturing them in microgravity would be a solution, sending endothelial cells to the ISS in 2018. The cells did grow in space, but as they adapted to microgravity, they took on unusual characteristics that may not have a counterpart on Earth, Jaminet says.

The findings may advance understanding of how microgravity affects astronauts, he says. “In science, unexpected results are very precious,” he adds.

But since it appears the cells cultured in microgravity don’t resemble normal endothelial cells, and acquired a novel pathological state not previously seen, it isn’t yet clear if these cells are useful for drug-development purposes. Further work, he says, will be needed to understand this novel state and see if it is useful for understanding diseases on Earth.

“When you put cells into a completely new system, you’re going to get intended results and unintended results,” says Dr. Serena Auñón-Chancellor, an astronaut who worked on the Angiex research on the ISS, and a clinical associate professor of medicine for the LSU Health Sciences Center in Baton Rouge.

Axonis in August had good luck with a project to coax two kinds of human brain cells, neurons and astrocytes, to unite into a three-dimensional model of the brain in microgravity. It used the model to test a gene therapy designed to restore neural connections damaged by neurodegenerative diseases or spinal-cord injury.

The experiment provided evidence that Axonis’s gene therapy travels to its intended target, neurons, and avoids astrocytes, says co-founder and Chief Scientific Officer Shane Hegarty. In labs on Earth, neurons and astrocytes would form a carpet-like, two-dimensional layer. This doesn’t fully represent the brain’s complexity and is less useful for advancing the gene therapy, Hegarty adds.

The implications of this research are that scientists could use patients’ own cells to create models of their disease in space to speed their search for treatments, he says.

“For any drug-development effort, you need a good model first,” Hegarty says.

Restoring sight

One long-term research program on the ISS is LambdaVision’s effort to restore vision to people blinded by diseases of the retina, the light-sensitive tissue at the back of the eye.

LambdaVision has flown eight payloads to the ISS since 2016, says Chief Scientific Officer Jordan Greco, adding that the company has found that its artificial retina seems to come together better in microgravity.

Microgravity enables more ordered and even packing of protein molecules onto the scaffold, CEO Nicole Wagner says. If its artificial retina, expected to enter clinical trials in about three years, earns regulatory approval, LambdaVision will manufacture it on the ISS or a commercial space station, she says.

Considering the demand for vision-restoration therapy, reimbursement from insurers should be sufficient to justify this expense, Wagner says. “With artificial retinas, there’s a clear unmet need,” she says.

To convert its lab process into one viable for the ISS, LambdaVision teamed with space-biotech company Space Tango to condense the process into a device that looks like a metal shoebox. The automated system contains proteins, polymers and solutions to assemble the artificial retina layers, and cameras that let researchers monitor and control the process from the ground, Wagner says.

Also using Space Tango is Encapsulate, a biotech with grant funding to launch into space biochips containing micro tumours made from patient cancer cells. The chips could predict an individual’s response to drugs, helping oncologists tailor treatment, Encapsulate co-founder and CEO Armin Rad says.

When adapting scientists’ projects for space “we have to take the human out of it and stuff it all into a box,” Space Tango Chief Strategy Officer Alain Berinstain says. Biotechs also express interest in the automated system for ground use, which was unexpected, he says. “It’s turned into a new business opportunity for us,” he adds.

The National Aeronautics and Space Administration plans a crewed mission to the lunar surface in 2025 and eventually a mission to Mars. Astronauts will require medications for the trip, and they can’t pack every drug they might need, says Phil Williams, a professor of biophysics in the School of Pharmacy at the University of Nottingham.

Medications degrade faster in space because of high radiation levels, says Williams, who is working with NASA researcher Lynn Rothschild on an astropharmacy, a briefcase-like system enabling astronauts to produce medications on demand.

In one version under study, cellular machinery that certain microbes use to make proteins would be combined with genetic sequences that code for specific biological medicines, Williams says. This could be paired with a production system to express the therapeutic protein and DNA-synthesis technology, he adds.

The notion of an astropharmacy extends to other extreme environments. If the technology proves effective in space it could also be used in hard-to-reach locations on Earth, he says.

“If we can make the drug for the astronaut, then we can make it for anybody,” Williams says.

America’s Billionaires Love Japanese Stocks. Why Don’t the Japanese?

TOKYO—Japan’s government is on a mission to make buying stocks hot again.

Many of America’s biggest investors are bullish on Japan. Warren Buffett shared that he increased his investments in Japanese companies during an April visit to the country. Ken Griffin is preparing to reopen an office in Tokyo for his hedge fund, Citadel, and investment banks Goldman Sachs and Morgan Stanley have issued optimistic outlooks for Japan’s stock market.

Japan’s problem is this: There are few signs its estimated 125 million residents share in the excitement.

Burned by dismal returns since the bursting of Japan’s asset bubble in the late 1980s and early 1990s, generations of families here have stashed most of their money in low-yielding savings accounts rather than trying to increase their wealth through the stock market.

Japanese households put an average of just 11% of their savings into stocks and 54% in cash and bank deposits, according to Bank of Japan data released last month. That trails well behind the U.S., where households have about 39% of their money tied up in the market and only 13% in cash and bank deposits, according to Federal Reserve data.

Haruyo Arai, a 62-year-old office worker, began investing in the stock market just last month.

“I was brought up by parents who would say, ‘Don’t dabble in stocks,’ ” she said.

Japanese Prime Minister Fumio Kishida has pledged to double households’ asset incomes, in part by encouraging people to invest in risky assets like stocks. The government is raising caps for Japan’s tax-exempt investment system for small investors, the Nippon Individual Savings Account, with changes set to take effect in January. The Tokyo Stock Exchange has been urging companies to boost their valuations and increase shareholder returns.

Arai cited the upcoming expansion to NISA, along with a desire to save more money for the future, as some of the reasons she decided to begin taking investing more seriously. She has been taking weekend classes at Tokyo-based Financial Academy to learn more about stocks and waking up early every morning to watch a TV news program focused on the economy.

Some believe investors like Arai will prove to be the exception, not the rule. Stocks here haven’t hit a record in decades. There isn’t much buzz among ordinary people about investing in Japanese markets.

“I’ve got the impression that Japanese people don’t really think positively about the desire to make money,” said Takashi Kawaguchi, a 48-year-old office worker who, like Arai, has been learning about investing at Financial Academy.

While the 2023 rally has helped lift Japanese stock indexes to 33-year highs, long-term returns pale in comparison to what an investor would have gotten by investing in U.S. stocks. The Nikkei closed at 32,402 on Friday, still 17% below its record hit in 1989. The S&P 500 has grown more than twelvefold over that time. That has made many investors here turn to foreign markets instead of focusing their bets within Japan.

“The Nikkei might hit 40,000, god knows when,” said Heihachiro “Hutch” Okamoto, foreign equity consultant at retail brokerage Monex. “But most of our investors prefer U.S. stocks.”

To Okamoto’s point, the most popular names traded on Monex daily aren’t Japanese stock indexes like the Topix or Nikkei, brand-name companies like Sony or even the “sogo shosha”—the trading houses that Buffett has invested in. Instead, they are all American names: companies like Nvidia, Tesla, Apple and Amazon.com, as well as funds tracking the S&P 500 and the Nasdaq-100.

And that is just among those interested in investing in the first place. While in past years, everyday investors in Japan made a name for themselves with their forays into the foreign exchange market, the overall trading culture here has been one of hesitation.

“Most people here think investing is very risky,” said Hidekazu Ishida, a special adviser at FinCity.Tokyo, which works with the government and the financial industry to try to boost investment in Tokyo. Being into finance comes off as “kakkowarui,” he added, referencing a word for uncool.

Even some heads of companies are lukewarm about the idea of encouraging more individual investors to buy Japanese stocks.

“I’m neutral about that,” said Takeshi Niinami, chief executive officer of whisky and beverage giant Suntory, when asked if he thought it would be a good idea for more Japanese people to invest in the market. Stock investing is risky, he said. And many Japanese people remain wary of participating in the market, because of the severity of prior downturns.

“I think perhaps increasing interest rates is better for people,” he said.

—Chieko Tsuneoka and Alastair Gale contributed to this article