The War for Your Wrist Liberty London End of an Era Jean-Michel Basquiat the Next Crash

END OF AN ERA THE NEXT CRASH ISSUE Graydon Carter’s legacy How the one per cent are preparing LIBERTY LONDON JEAN-MICHEL BASQUIAT 143 Iconic retail rediscovered His street art legacy

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PF_112017.P12-16_Intro_Contents.indd 12 10/22/17 6:17 PM The future of data is not just in predicting our outermost behaviours, but understanding our innermost ones. What impact will psychometric data have on the financial world? For a fresh perspective, visit LombardOdier.com

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CONTENTS UPFRONT 18 ISTANBUL RISES The Turkish city’s high-end property LIVING market rebounds 74 HOTEL 22 Luxury lodgings in a PLAIN SAILING converted barracks The luxury yachting app aiming to shake up the market 80 WHAT TO PACK From Hamburg to 28 Johannesburg, we’ve RENEWABLES got you covered How companies are embracing a greener future now 84 FOOD & DRINK Why Korean food is 35 taking over the world LIBERTY OF LONDON 88 The British retail EXHIBITION icon that’s going from A street art legend strength to strength gets remembered at the Barbican 90 COLUMN Microsoft’s CEO on changing a company’s culture

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CONTENTS

FEATURES 42 THE WAR FOR YOUR WRIST Why luxury brands have embraced the smartwatch revolution 48 THE COMING CRASH How are the rich preparing themselves for the coming crash? 54 HOW STREET ART GREW UP Why the once-derided art form has moved from the street to the gallery 60 VANITY FAREWELL We chart the rise of Vanity Fair under its recently departed editorial icon, Graydon Carter 68 THE ANXIETY OF THE ONE PER CENT Why America’s rich are feeling more depressed than ever before

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armanicasa.com Milan, Paris, London, New York, Tokyo London, New Beijing, Paris, Shanghai, Milan, Los Miami, Angeles, 28/08/17 17:38 UPFRONT

18 19

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Turkish delight Alexandra Locke takes the temperature of Istanbul’s high-end property market

very city has its landmark Kerim Bertrand, CEO of the real avenue or coveted zip estate information firm REIDIN. code, an investment In July 2016, however, some of made for generations those homeowners found they Erather than speculation. In had purchased more than they Istanbul, that real estate is not bargained for. Neighbourhoods on a Fifth Avenue or a Kings overlooking one of the city’s Street, but the Bosphorus Strait. Bosphorus bridges became front- The narrow channel separating row seats to Turkey’s attempted Europe and Asia combines the military coup. When military central location of one of the tanks blocked the bridge, world’s busiest shipping lanes civilians confronted the soldiers, with the sunbaked roofs and and 34 people were among those turquoise water of the French killed in the clashes that night. Riviera. As the pace of Istanbul’s Now these multimillion dollar development grows ever more views overlook a bridge with a breakneck, the best investment decidedly different new name: never changes: a waterside yalı. the July 15th Martyrs’ Bridge. These white-painted wooden The coup attempt was one mansions were once the second blip in a string of bombs and homes of the Ottoman elite, but shootings, an outpouring of these days, their fame comes from refugees, and a political crackdown their starring roles in Turkish that’s put tens of thousands behind soap operas broadcast around bars – and that’s just within the world. They typically change Turkey’s borders. The upheaval hands once in a generation, says disrupted an incredibly promising Koray Dillioglu, managing director real estate market. In 2015, Knight of Pera Property. “These are Frank’s Global House Price Index not advertised heavily. These are estimated Turkey as the world’s hush-hush, people keep it quiet… fastest-growing property market, Somebody wants to buy one, I with 18.9 per cent growth. A year make an offer to those people even later, it had dropped to 12.2 per 18 19 if they’re not selling it.” cent, and so far in 2017, it’s only Those looking for a more recaptured a small fraction of modest investment will still find that growth (12.7 per cent). Ali the prices steep: a mere view of Pamir, the chairman of residential the strait can add as much as 50 and commercial real estate firm per cent to the cost, according to Pamir & Soyuer, says, “[The]

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market is currently stagnant, to say the least. We used to sell around 30 to 40 residential units in the past, the last 12 months we sold seven.” That slowdown has been particularly hard felt in the prime real estate market; Istanbul lost 8.4 per cent on Knight Frank’s Prime Home Index in the first quarter of 2017, though the loss shrank in the second quarter. Although investors were hoping 2016 would be a temporary dip, it appears recovery will be lengthy. The change in fortunes has been most drastic among foreign purchasers. Turkey’s real estate market has always been overwhelmingly driven by local individuals, but in 2012, changes to reciprocity laws began to draw in small but growing numbers of foreigners. According to REIDIN, in the first five months of 2015, foreigners purchased 42.5 per cent of luxury residences. In the first eight months of 2017, the number was just 5.5 per cent. Bertrand says: “The last two years we only saw a significant decline due to the terrorist attacks, the failed coup firm New World Wealth surveying Istanbul’s and the number of high-end as well as the returns that are not millionaire migrants found Turkey property market properties sold were quite low. In necessarily attractive anymore.” experienced a 500 per cent slowdown offers 2017, the reverse has happened. opportunities High-end realtors have seen emigration increase from 2015 to for investors The number of buyers looking for that change firsthand. Pamir 2016, the highest of any country a Bosphorus view in a city centre says: “Until 2016, most of our surveyed. Their property ownership location has boomed somewhat, clients were foreign, and mostly was not studied, but Pamir says: with the typical budget in the from the US and Europe. “Quite a few Turks and foreigners $2-$3 million range.” Istanbul’s Currently, we are working mostly are trying to divest, and looking luxury investments are best suited with local clients both on the to diversify their risk by investing to buyers looking for a second commercial and residential abroad, in more stable markets home in excess of $1 million, side.” Dillioglu says although his such as London and Berlin.” 500% particularly mansions and modern real estate firm initially started With a willingness to buck the Increase in villas. Dillioglu says Pera Property to serve international buyers, bear market, however, Turkey’s emigration has also noticed an increasing approximately 70 per cent of his booming population and shortage in Turkey trend of ultra high rise, full-service clients are now Turkish. of housing stock can still make from 2015 “residence” style buildings. While foreign buyers are Istanbul a prudent long-term to 2016 Those looking in the high- dropping, wealthy Turks are investment. REIDIN’s real estate end range will find new value in 20 21 increasingly voting with their confidence survey indicates that longtime favourite neighbourhoods. feet. Businesses catering to Turks investor confidence is returning. Among the most popular are the looking to move abroad have found Dillioglu says that’s also the case leafy Bosphorus suburbs of Sariyer a vast new market as the number at the high end of the market. and Bebek on the European of emigrants has risen. A study by “In 2015-2016, the majority of side, and Kadikoy’s Bagdat the South Africa-based research foreign clients had low budgets, neighbourhood on the Asian side.

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advantage to the car-clogged coastal road leading to the more tony waterside neighbourhoods. The clientele who see Turkey as a safe bet is also shifting. While Brits, Russians and Germans were the top foreign property owners last year, according to Turkish government figures, the biggest purchasing nationalities are now all from Arab countries. Buyers from Saudi Arabia, Kuwait, United Arab Emirates, Qatar and Iraq made up 43 per cent of all foreign purchases in 2017, according to REIDIN. For them, Turkey is close to home both in distance and in culture. Compared to some of its more tumultuous neighbours, it is still seen as a relatively stable investment. Both Pamir and Dillioglu agree that the time is right to buy. “Real estate is not a macro business,” says Pamir. “You can make money in the worst times and you can lose money in the best times.” He says the opportunities now are best for a 10- to 15-year investment. Dillioglu’s recommendation Bagdat in particular is known for For those in search of a is even more optimistic, saying: luxury high rises, with panoramic neighbourhood that’s less of a “The current availability of high- views of the Marmara Sea and the mouthful, realtors also recommend end traditional mansions, villas historical peninsula skyline, home the central district of Sisli. and apartments is unprecedented. to Sultanahmet and the Hagia Dillioglu says: “The suburbs have We don’t believe this to be a new Sophia. Transport megaprojects, been popular for investors over norm, rather a temporary blip though controversial for their the past five years, due to low as Istanbul is undergoing drastic ecological impact, have made prices. However, the international changes. Once this settles over either end of the Bosphorus more investors are learning the true the next few years, the number accessible, for good or for ill. Both value is in the inner city interns of of these types of property will opened in 2016, the Eurasia tunnel capital gain.” The secular elites’ diminish once again.” spans the mouth of the Marmara redoubt of Nisantasi is always a Istanbul has had a grim Sea, while the third Bosphorus favourite, but new to the scene few years, but as the lull in the bridge runs near the Black Sea. is the Bomonti neighbourhood. violence continues to grow, every As Istanbul’s urbanisation Hardly known at all just a few resident is hoping that “the time continues to spiral outward, other years ago except for its weekly to buy when there’s blood on projects are bearing fruit in new organic market, it’s now home the streets”, as the saying goes, neighbourhoods. The other side to shared co-working spaces for has almost passed. Real estate 20 21 of the Eurasia tunnel has sparked creatives, and a live music venue fortunes rise and fall everywhere, development in the Zeytinburnu inside the old beer factory that but investors in Istanbul should neighbourhood, and Dillioglu says gives the neighbourhood its name. take a particularly long view. In a the developments along the Basin A Sisli high-rise provides both a city of more than 25 centuries, a Highway in Küçükçekmece also Bosphorus view and convenient decade-long investment is a blink

offer excellent prospects. transport options, a significant of an eye. EUROPEAN CENTRAL BANK CONFIDENT ON MARKETS Mario Draghi said: overvalued. Speaking at an IMF meeting in Washington, think that the markets are Central Bank has said he doesn’t of the European The president living in a bubbly situation.” The commercial think we’re right now and bonds can go up as well down. I don’t convinced that stocks and shares “I think people are is in the prime we see some signs of valuations that tend to be stretched though, does appear to be slightly overvalued, Draghi said. “Where estate sector, real estate, Draghi added. real to lofty valuations in the commercial rates, is the best response not higher interest policy, estate,” he said. Macroprudential real commercial

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Plain sailing? A new app aims to bring luxury yachting to the masses. CJ Hannon investigates

iring a decent sized enjoy, hence the creation of Float.” yacht, even for the In some ways, it’s an Airbnb well-off, is not cheap. for the water, which allows you You can expect to to book just one seat on a luxury Hpay north of 10,000 for a yacht, or gather a group of friends $ week’s worth of sailing in most and hire out the whole boat. of Europe’s harbours. Even an Part of its appeal is the afternoon of sailing in Cannes can simplicity of the app. Whereas cost a few thousand dollars, not yacht chartering can often be a to mention the time spent filling time consuming and frustrating out forms and dealing with the affair, Float aims to smooth the charter agency. However, a new process and enable its customers app aims to bypass the hassle of to get on the water with as little hiring a yacht and open up the hassle as possible. “Float’s tech world of superyachts to a new platform drastically reduces the class of customer. complexity of chartering a yacht Float was set up earlier this with its instant booking function year by two yacht industry and removes price as a barrier of insiders: Gualtiero Giori, entry,” says Semenikhin. CEO of 21st Luxury and Indeed, the booking process former owner of Camper & takes less than three minutes. Nicholsons International, and Customers sign up on the app, Dimitri Semenikhin, CEO of choose their origin and Yacht Harbour, a superyacht destination, select the number database. Giori said the aim of of seats needed and pay. A few Float is to bring the superyacht moments later, a boarding pass experience to the masses. “After is sent to their Apple Wallet. Aside working with billionaires and from the speed, the main attraction 22 23 celebrities, amongst others, for here is complete transparency: their superyacht needs as owner of there’s no hidden costs or Camper & Nicholsons, I wanted surcharges. This sets Float apart everyone to be able to enjoy from traditional charter companies yachting, which meant making it who add on fuel and food more accessible and simpler to surcharges to their initial price.

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“We’re more like NetJets than a water taxi,” CEO Jean-Jacques Boude told Bloomberg earlier in the year. “We sell day charters by the seat or by the cabins for a few days on board, all through a fully digital app,” he says. The company manages to keep costs down by utilising fractional yacht charters – where the cost of the charter is shared by the guests. This model has been successful in other industries such as private jets and property. While the cost of participation in both of those segments can be prohibitively high, Float’s model is far more affordable – Traditional charter companies often add myriad fuel and food costs onto the original quoted price

offering short haul trips, where, for example, a couple could book a yacht for an afternoon to take them to a restaurant further down the coast. They just arrive at the dock and get whisked there and back. The long-haul option is tailored more for bigger groups who want to rent a yacht for a day, a weekend or a week. The company currently services destinations in the south of France – Monte Carlo, St 22 23 Tropez, Cannes and La Guerite – and the process is relatively simple. There’s a choice of two separate trips: Open for short day trips and Fly for long haul excursions. Customers

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Float aims to expand across Europe, as well as 104-foot superyacht. That vessel will offer $1,000 per person to Miami and the Caribbean in the coming year overnight trips from Miami to the Bimini Islands. Back in Europe, sign up for either and pick the cards. “We will be in Miami and the prices start at $99, number of seats they will require, starting this month and [we will although, like Uber, the company although the maximum capacity expand] to Mykonos and Ibiza plans to use ‘surge’ pricing, is 12. While the firm is focused next spring. The aim is to be where, if demand is high, prices on the French Riviera for now, present in 12 locations across will rise accordingly. there are plans to expand to Europe and the US.” Whether Float’s model can Miami and the Bahamas during The company currently owns disrupt the yacht sector the the winter months. Jean-Jacques two vessels, but aims to operate way NetJets did to the aviation Boude says expansion is on the three ships in Miami, including a industry remains to be seen.

OTHER LUXURY COST SAVERS

PRIVATE JETS the other end of the scale, if you pay get to stay there. Of course, each Founded in 1996, NetJets allows its $4.4 million, you get 400 hours of flight of the owners takes the risk that customers to use private jets at a time and have a much bigger choice the property’s value will increase or fraction of the cost of owning one. of jets. Customers must also pay a decrease – there’s no guarantee that With access to more than 700 aircraft, monthly maintenance fee, which can a customer who sells their ownership the company claims to be the largest range from under $10,000 to $60,000. property will make a profit. This is private jet operator in the world. a world of cash buyer – most banks Customers get access to a certain LUXURY PROPERTIES won’t offer a mortgage for a fractional 24 PB number of jets for a certain number There are many companies offering ownership property, and in many cases of hours per year depending on the fractional ownership of luxury the cost is greater than a deposit on cost. For example, a 25-hour Marquis properties around the world. a traditional holiday home would be. Jet card will cost around $150,000 and Customers own a percentage of a The upsides? Someone else manages allow the user 25 hours of private jet property, the higher the percentage the property and you get to decide travel over a certain period of time. At the more weeks of the year they when you use it.

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26 27

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Czech class A period apartment in the heart of Old Prague

ocated in a restored seven-storey apartment building in Prague’s Old Town, this 240 square metre apartment has been updated with care. The designers have ensured the Loriginal 1930s setting is kept intact, but that the Prague space is compatible with modern living. From the kitchen that can be closed off or connected to the PRICE living room, a large walk-in closet in each of the $2,900,000 bedrooms and a large laundry room, this is city living 26 27 at its best. The main bedroom also features a balcony overlooking the street, and the neighbourhood is

celinka.cz/en/ filled with boutiques, parks and turn-of-the-century architecture. For a slice of old Europe replete with the latest in interior design, this is a pied-à-terre anyone would be proud to call home.

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Renewable future? Many of the world’s biggest businesses have committed to go 100 per cent renewable. Mike Scott looks at what this really means

ost companies Knowledge, Policy and Finance source their Centre at the Abu Dhabi-based electricity from International Renewable Energy the local power Centre (Irena). “It started in the Mcompany. If they are particularly US and to a certain extent in large energy consumers, they Europe, but we are now seeing might have a special deal in new examples in countries across place, but they won’t give much the world, from China and India thought to how the power is to Morocco and Mexico.” being generated as long as it’s The initial driver for companies sufficiently reliable and cheap. to secure clean energy supplies However, a growing number are was corporate social responsibility, looking to power some or all of he adds, with many companies their operations using electricity setting climate and sustainability generated by clean energy sources targets in part to enhance their such as wind, solar and biogas. reputation. However, the number Leading the way is RE100, of firms looking for clean energy an initiative that aims to get the accelerated following the signing world’s most influential companies of the Paris climate change to go 100 per cent renewable. agreement in December 2015, Recent signatories include cereal which committed countries to maker Kellogg’s, US banks Citi keep global temperature rises “well and JP Morgan and Singapore- below” 2°C and “endeavour to based DBS Bank. They join more limit” them even more, to 1.5°C. than 100 other companies ranging The business community was from Apple to BMW to Heathrow one of the driving forces for the Airport. Between them, RE100 signing of the Paris agreement, members have committed to buy with many companies becoming or generate more than 152 terawatt more worried about the impact that hours of electricity, enough to climate change will have on their 28 29 power all of New York state. operations, their customers and “This is a huge trend. It started their supply chains. They are also with technology companies, but it keen to act before they are made to is now spreading across economic by regulators and lawmakers. sectors and across the globe,” says The agreement is being Henning Wuester, director of the translated into national and

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international targets – the EU, for However, as the Financial example, has targets for 2030 to Times said earlier this year, “the cut greenhouse gases (GHGs) by shift to clean power has begun at least 40 per cent (from 1990 to accelerate at a pace that has levels), to generate at least 27 per taken the most experienced cent of its energy from renewable experts by surprise”. The reason sources and to improve energy is simple – the cost of renewable efficiency by at least 27 per cent. energy technologies such as wind Dubai’s Clean Energy and solar continues to plummet Strategy 2050 will see investment year on year. in the emirate of around $163 The average price per MWh billion in the next three decades, of both solar and wind fell by 10 with the aim of having 44 per per cent in 2016, according to cent of the energy mix coming the United Nations Environment from renewable sources, 38 Programme. The installed price per cent from gas, 12 per cent for home solar systems in the from ‘clean fuels’ and six per US is less than half what it was cent from nuclear energy. The a decade ago while the cost of strategy also calls for a 40 per onshore wind power projects in a cent improvement in energy German capacity auction dropped efficiency by 2050. by 25 per cent between May and The main way to limit August this year. The result of temperature rises will be by limiting these plummeting prices was that the amount of GHGs emitted as in 2016, eight per cent more clean a result of human activity. The energy capacity was installed than power sector is the biggest emitter in 2015, but investment was 23 of GHGs thanks to its use of fossil per cent lower.

Dubai’s clean energy strategy will see $163 billion invested over the next three decades in a renewables push

fuels such as coal, and gas and Wind and solar power are so not only is the sector one of now the cheapest forms of new the main targets for governments energy in almost every country looking to cut emissions but around the world, and by 2030 switching to renewable energy they will be cheaper than even is one of the quickest and most existing fossil fuel power stations, effective ways to do so. “There is a according to Michael Liebreich, growing feeling that the regulatory founder of research group space for not being low-carbon is Bloomberg New Energy Finance. narrowing,” says Martin Chilcott, There is a very strong business chief executive of 2degrees case for switching to renewables 28 29 Network, a platform for allowing now, and it goes beyond just companies to collaborate on the headline cost of energy, says sustainability issues. “Regulation is Wuester. “Renewables are cost moving inevitably in one direction competitive but large energy over time, and that is towards consumers also see them as a decarbonising the economy.” way of stabilising energy

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prices over the long term. You renewable future is not all plain you can see that although there is can get contracts of between 15 sailing. Wind and solar suffer going to be an enormous amount and 25 years. You can not only from intermittency – the wind of renewable energy, you still need guarantee the price but secure does not always blow, and the fossil energy to keep it balanced,” your supplies as well.” sun does not always shine – but Liebreich said at a recent There are three main routes energy storage costs are coming conference. “You need the flexible to procuring clean energy – you down as rapidly as the costs generation to make it all work. can generate it yourself, buy it of renewables and will help to And how you do that is a core from a utility or go direct to a overcome that problem. More challenge for the next decade.” project developer and sign a power serious is the pressure that a 10% The number of companies purchase agreement (PPA) for the plethora of individual projects Fall in switching to renewable power energy produced by a particular places on grids that were not average price is likely to accelerate, but project. Ian Kelly, manager of only designed to distribute power per MWh of electricity is only part of the the Rocky Mountain Institute’s from a few, large power stations both solar energy equation. To be truly 100 Business Renewable Center, says but are also coming to the end of and wind per cent renewable, companies that the advantage of PPAs is that their lives. in 2016 will have to decarbonise their the developer is able to take that This means that fossil fuels, transport requirements as well. commitment to its financiers and particularly gas, will still have There are already signs that borrow money against it. a key role to play in power this is starting to happen – the Corporate procurement also generation. However, its role will Climate Group, which launched creates its own virtuous circle – mainly be to balance the grid RE100, has just announced the more energy companies buy, rather than deliver “baseload” another initiative, EV100, to the more the price comes down. power. “If you look at the future fast-track the uptake of electric However, the path to a structure of our power supply, vehicles and infrastructure. 30 PB

MUSK UNDAUNTED IN QUEST FOR MARS The billionaire inventor and businessman Elon Musk has announced he intends to send a manned mission to Mars by 2022. The Tesla head says that the current plans to inhabit the planet are too expensive (at around $10 billion per person), but if the price per person can be brought down to $200,000, Musk believes we will see the planet inhabited in his lifetime. He is currently working on a multi-use rocket that can carry 100 people at a time, which he claims will make Mars travel feasible for many of us.

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NOVEMBER NOVEMBER ISSUE 143 UPFRONT / SPEND UPFRONT / SPEND ISSUE 143

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FLOOR LIGHT This Andrea Branzi-designed floor light is a standout addition to any room. With 5

32 3 TREND RETAIL MALLS BUCK LUXURY CHINA’S high-end shoppers have than any other country in the world. The country’s luxury stores that China closed more has revealed report A recent than 50 per cent of people surveyed said they increased More ensuring a slowdown for traditional bricks and mortar stores. embraced e-commerce, online luxury spending next year. that 66 per cent will increase The survey also revealed their online spending on luxury goods in the past year. PB a brass finish and simple design, it’s URWERK WATCH inspiring without This is a serious piece of horology – the 105CT Streamliner is a retro being overbearing. throwback with some beautiful details. The standout detail is the Ghidini 1961, from ‘hood’, which can be raised up to reveal the watch’s inner workings. $7,260, ghidini1961.com Urwerk, from $67,000, urwerk.com

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CMY

NOVEMBER UPFRONT / THE BUSINESS ISSUE 143

As well as Wilde, luminaries including Dante Gabriel Rossetti, Ellen Terry, James McNeill Liberty belle Whistler and Frederick Leighton were fans, and the store quickly Emma Woollacott explores one of world’s most became an institution. iconic department stores, Liberty of London “A dazzling dream of colour in all its infinite variety that in rom the day it first Street to sell fabric and objets d’art itself makes one of the most opened in 1875, Liberty from Japan and the East. magnificent étalages in London, of London had a whiff It was a success from the start, a vision that only the poetic of the exotic about it – and within 18 months, he’d repaid faculty of the artist could have F“the chosen resort of the artistic a £2,000 loan from his father- devised – that is what we have shopper”, as Oscar Wilde put it a in-law and bought the property learned to associate with a sale at few years later. next door. Further expansion Liberty’s,” read a 1907 article in PB 35 Taking advantage of the British allowed the creation of a costume the London News. public’s fascination with all things department and the iconic But it wasn’t until 1924 that oriental, founder Arthur Lasenby Eastern Bazaar in the basement, the present, iconic, Arts and Crafts Liberty, a young man working for which cemented the company’s building was constructed using a London shawl retailer, took out a exotic image by selling oriental authentic Tudor techniques and lease on half a shop at 218a Regent rugs and furniture. incorporating the timbers

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“Craftsmanship is really important, talent. “The product’s always got to have a great story. With a from furniture to fashion. If it can be lot of the brands we work with, we know the people making the British, that’s the icing on the cake” products,” says Ritchie. “Craftsmanship is really from two ships: HMS Impregnable than trying to make it work for us. important, and that goes and HMS Hindustan. We’re returning to what Arthur right through the building, Even today, the store has an wanted – he was extremely brave, from furniture to fashion to eclectic feel, with the ‘bazaar’ and had the most exquisite taste.” accessories. If it can be British, theme very much in evidence. The store also continues to that’s the icing on the cake.” Rugs hang over the balustrades make the most of its long-standing Unlike many flagship brands, of the walkways around the main reputation for fabric design. In the indeed, Liberty maintains a very central lightwell, with a warren of early years, its buyers imported London-centric focus. Back in rooms leading off. silks and cottons from the Far the 1950s, it did expand, opening Over the years, of course, East, but by the 1880s it was regional stores in Manchester, there have been changes. But producing its own pattern books Bath, Brighton, Chester, York the Grade II listed building has and hand-printing its trademark 80 and Norwich, but these were recently been refurbished and Tana Lawn fabric in England. Percentage closed in 1996. And although returned to something more like Some of the store’s best- of Liberty it now has an outpost in Japan, its original style. Boarded-up known designs were created by of London these days the company is once windows have been reinstated, William Morris, and many, such customers again focusing far more on its original fireplaces have been as the Hera peacock feather who come core market. uncovered, and each room has pattern, are still going strong from the UK “Our customer base is still 80 been redecorated to illustrate after more than a century. per cent UK, which is something its founder’s vision of an artistic Liberty prints were particularly we’re really, really proud of,” home, with vintage rugs, Liberty popular in the 1960s, with young says Ritchie. “Customers from print armchairs and a scattering London designers like Jean Muir, overseas are buying into the of eye-catching objets d’arts. Foale & Tuffin and Mary Quant British sensitivities, that’s for sure, “We’ve stripped the building using them in their work, as well but I’m always thinking about the back to reveal more of its as Parisian fashion houses such as British customer.” heritage,” says Liberty buying Cacharel and Yves St Laurent. As well as refurbishing the director Gina Ritchie, who These days, the store still does building, Liberty has also recently oversaw the refurbishment. “We’re more than its fair share when it overhauled several departments. working with the building, rather comes to nurturing new design It has launched a range of luxury Liberty print pyjamas, along with new soft homewear, decorative ceramics and stationery, in time for Christmas. Lingerie is back, along with much missed Liberty favourite Eskandar, and there are 20 new brands, including Rejina Pyo, Rosetta Getty, Teija and The Vampire’s Wife. “We’ve relaunched menswear and womenswear. They haven’t had close attention for a number of years, but for us it’s getting back to our roots and nurturing 36 PB local designers,” says Ritchie. “Liberty customers have a sense of discovery. We’re relaunching furniture, going back to our roots with an emphasis on arts and crafts and vintage design.”

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NOVEMBER ISSUE 143 UPFRONT / THE BUSINESS

“We have stripped the building back to reveal its heritage. We are working with the building, rather than making it work for us”

a room in its haberdashery department that’s filled with industrial sewing machines for fashion students to come and refine their craft. Meanwhile, the ‘Disappearing Store’ pop-up on the fourth floor hosts everything from yoga workshops to art exhibitions, charity events to cinema screenings. It’s also recently hosted a series of ‘In Conversation With’ talks with craft connoisseurs. “Liberty has a really strong place in the culture and texture of London, and for me being a big part of the Soho community is very important,” says Ritchie. This August, Liberty opened made in Cambridgeshire. Top: In the run-up to the festive the Interiors Emporium, a new “We set out to curate an Liberty London’s season, Liberty has opened its department on the third floor with exciting collection of British Food Hall annual Christmas Shop – an an ever-changing array of limited food and package it in an Above: annual pilgrimage for many edition and exclusive products from unexpected, artistic way. Hand-made Londoners. A fairy-lit paradise, new designers and artists. We didn’t want to launch a craftwares in it’s full of quirky baubles – it sells the Interiors And the latest addition is predictable own label brand but one modelled on the building Emporium a mini food hall, opened in rather create something with itself – wooden advent calendars September. It’s not quite on the real heart and soul that only we and toys from model soldiers to same scale as, say, Selfridges, but could do,” says Sarah Coonan, stunning cuddly animals. features more than 50 artisan head of buying for home. All in all, there’s no doubt products from 15 producers, “We are proud to support that Liberty is one of the most some of which have been made these great British producers, characterful department stores specially for the store. and because of that, we’ve made in the capital, and Ritchie is 38 PB Highlights include sure they are central to the determined to keep it that way. Pembrokeshire Beach Food overall story.” “We constantly remind Company’s Laver Seaweed from This sense of Britishness and ourselves to be risky, fearless and Wales, Liberty London Blend Tea localism extends to throwing fun,” says Ritchie. “Our mantra from the Tregothnan estate in open the doors to the local is: if we’re excited about it, our Cornwall and Manfood Beer Jelly community. Liberty now has customer will be too.”

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DIFC_Ad Resize_205x265mm_AW_V3.indd 1 19/09/2017 09:15 NOVEMBER ISSUE 143 UPFRONT / CLASSIC READ Think And Grow Rich By Napoleon Hill

Hill focused on the psychological barriers that had stopped his readers from being successful

Hill stayed away from references to money or stocks, focusing instead on the psychological barriers that had stopped many of his readers from achieving success. And it’s here that the book’s critics step in, claiming it’s a no more than a succession of ideas predicated on wishful thinking; that it’s no more useful or unscientific than The Secret. For sure, this is not a book that will give you an actionable step-by-step goal to success; rather it focuses on core principles that Hill believed anyone could master. The book is divided into 17 principles that Hill believed anyone could learn and practice on a daily basis. These range apoleon Hill wrote man or woman on the street could from having a definiteness of Think And Grow read and then go accumulate purpose to the use of imagination Rich in 1937 at wealth for themselves. Carnegie to understanding specialised the height of the introduced Hill to the movers and knowledge to knowing about the Nself-improvement wave, and it shakers of the time: inventors, subconscious mind. heralded a glut of copycat books businessmen, royalty, presidents, Hill emphasises the point that that promised the world but athletes and socialites. Hill, it has thoughts are things, and how we delivered little. Hill’s book has to be said, took the job seriously. 70m think about the world affects how often been lumped in with them, He spent 20 years working on we do in it. Does the book work? Number of but it is more than a get-rich-quick the book, before he identified 17 copies the Like anything, it’s probably only scheme. Its success is astonishing – common principles that anyone book sold as effective as each reader lets it it sold more than 70 million copies can adhere to in order to achieve before be. But, despite the criticisms of before Hill’s death in 1970. success. There was one problem, Hill’s death the book’s more ‘folksy’ content, The story of how Hill came however, the book – The Philosophy in 1970 it continues to be read by millions to write the book is fascinating. of Success – sold poorly. Putting around the world to this very day. 40 PB Hill, then a young journalist, into practice what he had learnt, After the success of the book, was challenged by Andrew Hill changed the name of the Hill started to live a lavish lifestyle, Carnegie, the industrialist and book to The Science of Personal and although he published another philanthropist, to research and Achievement. That sold equally eight books in his lifetime, none write a book about prosperity. He poorly, so Hill tried again – calling had the phenomenal success of wanted a book that the average the book Think And Grow Rich. Think And Grow Rich.

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THE

WAR

FOR

PF_112017.P42-47_Feature_DigitalWatch.indd 42 10/22/17 2:37 PM David G Taylor examines the smartwatch industry and how luxury brands want a piece of Apple’s pie

he battle for the definitive smartwatch is hotting up now that luxury brands have joined the fray. Vowing to “take fine watchmaking into the digital age”, March 2017 saw the launch of the Montblanc Summit, Tthe first fully-fledged smartwatch from the revered German brand most famous for its exquisite pens and analogue watches. Montblanc was one of the first luxury labels to embrace the trend for wearable technology with its hybrid e-strap watches back in 2015. However, the quest to snatch the luxe smartwatch crown is now well and truly underway thanks to the recent release of both Louis Vuitton’s own smartwatch and Tag Heuer’s upgraded second-generation model. With other elite brands expected to follow suit, the luxury connoisseurs’ smartwatch is looking more than a mere trend. YOUR “Consumers who would traditionally go with, say, a Rolex or Omega are starting to catch on to the usefulness of a smartwatch,” says Scott Purcell, editor of the luxury lifestyle website ManofMany. com. “What’s going to be interesting to see is how brands that have made themselves famous for making products designed to last a very long time cope with the ever-changing, fast-paced world that is digital technology, and the reality of obsolescence.” “We’ll see more luxury brands break up the smartwatch duopoly between Apple and Samsung,” John Guy, an analyst at MainFirst Bank AG, told Bloomberg.com. “It not only provides consumers with a luxury option, where the aesthetic is more in harmony with technology, but it also provides a springboard for younger consumers to move into traditional Swiss watches at a later stage.” Exciting times lie ahead as competition between top brands escalates and the luxury smartwatch evolves rapidly as it discovers its true potential. “Luxury brands are experts in story- telling,” says Roger Ruegger, editor-in-chief of WRIST WatchTime magazine. “So the potential for added content – travel guides, boutiques, etc – and added functionality – automated check-in to a Bulgari hotel, for example – is absolutely enormous.” Montblanc is owned by Richemont, the Switzerland-based parent company behind

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Can brands that are known for making products that last a very long time cope with the fast-paced world that is digital technology?

luxe brands such as Cartier, Chloé and Dunhill, and its debut smartwatch offers a classic design, inspired by Montblanc’s 1858 collection. “In the creation of the Montblanc Summit’s design, we wanted to bring a one-of-a-kind vintage design expression into this new product category to inspire the younger generation who appreciates the vintage look,” says Montblanc. A scratch-resistant sapphire crystal dome covers the Summit’s digital screen so a power button on the side is used for navigating the interface. The Summit’s customisable style options include four case choices – such as stainless steel with a satin finish or a black PVD-coated stainless steel and a range of strap choices from rubber to sumptuous Sfumato calfskin leather. There are eight digital watch faces that can be recon- figured at any time via the settings, and to ramp up the luxury there’s the option of plumping for a titanium case and an alligator leather strap, a mere snip compared with many of Montblanc’s mechanical watches at $1,020. Not all critics have been impressed, though, Just days before the Summit’s release the Some analysts believe with Chris Martin, consumer tech editor at PC smartwatch style war intensified with the launch of smartwatches will become Advisor, awarding the Summit three out of a pos- Tag Heuer’s Connected Modular 45. It’s an ultra- more independent from smartphones and play a sible five stars in his review for TechAdvisor.co.uk. luxurious Android Wear watch “combining Swiss bigger role in our lives “There’s no doubt that the Montblanc is a styl- luxury watchmaking and Silicon Valley technol- ish and extremely well-made smartwatch,” said ogy” thanks to its collaboration with Google and Martin. “However, it misses the mark in various Intel. Prices start at $1,550 and watch enthusiasts ways making it very hard to recommend spend- can choose from a range of bodies, straps, lugs and ing the asking price.” Although Martin praises the bezels including 18ct rose gold, satin finish tita- 44 smartwatch’s “top-notch build”, he cites a number nium and diamond encrusted titanium options of key omissions: “The Summit isn’t going to sat- costing up to $6,750. isfy those who are serious about fitness… there’s The original Tag Heuer Connected Watch no GPS, which for most will be integral.” Clearly, released in 2015 was the first proper premi- it’s still early days for these pedigree smartwatches um smartwatch on the market and, in a bid to and some further evolution is probably needed. appease those worried about obsolescence, had

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FIVE ness features favoured by its competitors, instead aiming itself squarely at the wealthy jet setter. SMART- Inspired by Louis Vuitton’s sleek analogue WATCHES watch the Tambour Moon, its Android-powered interface boasts bespoke apps such as My Flight, which aims to make world travel more seam- less with features such as flight and terminal/gate information, delay alerts and time until landing, plus access to Louis Vuitton’s acclaimed real-time digital city guides on London, Beijing, Shanghai, Paris, Los Angeles, New York and Tokyo – although the style conscious may be more delighted to know that the Tambour Horizon offers nine watch faces and 60 different inter- changeable straps to choose from. So the battle is on. Why, though, have prestige brands LV’s new been relatively slow Tambour in picking up on the Horizon Louis Vuitton smartwatch trend? Tambour Horizon “Luxury brands aren’t watch is Very much at the top end slow to adopt in so eight times of the smartwatch much as they’re aware market, the Horizon is all as expensive about looks rather than of the antithesis which functionality (you have to are smart watches,” as an entry- download two apps to get says Jonathan Ho, it to work with your iPhone). level Apple group digital man- Launched: 2017 watch and Cost: $2,900 aging editor for the luxury lifestyle web- more refined site Luxuo.com and than its associate editor of competitors’ WorldofWatches.com. “Luxuries became lux- efforts uries because they are products that endure. By virtue of Moore’s Law, the rapid evolution of technology dictates that smartwatches are, by their very nature, imperma- nent. Mechanical watches, on the other hand, are steam engines in the age of bullet trains. They are the added incentive that – for an additional cost symbols of classic refinement and, more impor- – at the end of the two-year warranty period, you tantly, by virtue of physics and mechanics, will last could trade it in for one of the mechanical Tag as long as the knowledge exists to maintain them. Heuer Carrera watches, said to have inspired the The technology which makes Louis Vuitton’s water Apple Watch smartwatch’s look. resistant waxed canvas has changed little since they The most successful smartwatch on the market, made steam trunks. Yet, there are companies such ost recently, Louis Vuitton, the Apple has launched four as TAG Heuer that address this contradiction by luxury brand famed for its suit- versions of its watch. designing their smartwatches to be modular, that is Although Apple doesn’t cases, escalated the battle of the to say, able to be switched for a mechanical watch release figures, it’s been 45 elite smartwatches by launch- estimated the company head or simply traded in for a mechanical model ing its first connected watch, the owns about 50 per cent once the digital model is obsolete.” of the smartwatch market M$2,450 Tambour Horizon. More than eight times Will the luxury consumer be satiated by elite and has sold more than the price of an entry-level Apple Watch and small- 20 million watches. brands and top-quality materials or is added er and more streamlined than its Montblanc and Launched: 2015 functionality being called for? “Personalised Tag Heuer competitors, it foregoes many of the fit- Cost: $349 to $17,000 experiences are and will be very impor-

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tant – the TAG Heuer offers a modular case and Apple CEO Tim Cook something that WatchTime will be addressing interface, Louis Vuitton and Montblanc different speaks about the Apple in its forthcoming Design Issue 2018. There’s dial designs, etc,” Ruegger says. “But both the Watch Series 3 at its launch a dizzying range of options from wearable tech brand image and the product’s design currently devices that function more like a smartphone on are most likely the most important difference to your wrist such as the Apple Watch 3, to fitness buying a smartwatch from Apple or Samsung, for tracker kind of smartwatches like the Fitbit – example. If someone buys a Tambour Connected, “Apple but do they even work? usability might not be as important as the prod- “Although there has been recent criticism in uct’s design and the brand. Individuality, status, sells more the press regarding the effectiveness of smart- brand, etc, are likely more important.” than half of watches, I have found them very useful for clients “More than half of the smartwatches sold all smart- who are struggling to reach normal activity lev- are from Apple,” Ruegger explains. “So luxury els,” says Victoria Brown, a freelance personal brands will have to offer emotional add-ons to watches, trainer and specialist programme co-ordinator at attract customers and justify a price premium, so luxury London’s biggest gym, the Central YMCA Club. be it through design, brand or new features that brands will “Having something on your wrist that tells you if will help create a different relationship between you have not walked your 10,000 steps or been brand and consumer. Imagine them offering spe- have to offer active for 30 minutes is very motivating and real- cial access to the brand’s hotels, premium travel ly helps to stop people overestimating what they 46 emotional services, virtual concierge services, connecting add-ons to actually do on a daily basis. its consumers, etc… the potential for something “I’m a runner, so I tend to like the smartwatches additional, unique to the brand is endless.” justify a price that incorporate a reliable GPS and a fitness track- Alongside these new luxury smartwatch- premium” er such as Polar or Garmin, but these are often es, consumers have an ever-expanding range more expensive than Fitbit. The Fitbit HR Charge of excellent smartwatch choices to navigate – or Altea are very popular and the Fitbit app is very

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user friendly and my clients love the weekly e-mail lar dominance – not so much its market share telling them how hard they have worked in the – tends to shape perspectives and tastes. Other week. For design, the Apple watch is always a win- tech companies are struggling because they are ner as the watch itself is stylish and obviously will tech companies not consumer companies. That work with your other Apple gadgets.” said, there hasn’t been a senior executive as Those disappointed that Apple discontinued intuitive as Steve Jobs since his passing. Whether its line of 18-karat gold Apple Watches last year, Apple successfully defines this market as their selling for as much as $17,000, as it repositioned iPods and iPhones have in their respective cat- itself as the “ultimate sports watch” with added Mont Blanc Summit egories remains to be seen.” health functions, will be relieved to hear that the The Summit uses Android’s The jury is still out on who will ultimately OS and the company Series 3 has an Hermès edition. It comes with a hopes it can take some dominate the smartwatch market and if they’ll do built-in cellular phone, a watch face inspired by of Apple’s demographic. enough to capture the imaginations of high-end the classic Hermès Carrick font and a choice of Launched: 2017 consumers; not least because on the horizon are handcrafted leather straps, including the Double Cost: From $849 more developments still. Following the success of Tour band, which wraps twice around the wrist Fitbit Blaze fitness tracker, there’s been rumours and comes in faux Barenia or indigo Swift leath- that the American company is already working on ers, retailing at $1,299. It is then increasingly an unnamed new Fitbit Blaze 2, although details possible to pimp your smartwatch with some remain sketchy. Pebble, the first commercially luxe brand-names and fine accessories but clearly successful smartwatch brand, closed down and Apple Watch and its competitors could go a lot Fitbit acquired some of its personnel and assets further to satisfy those used to displaying their last year. Fitbit has made further acquisitions taste, success and status on their wrists. in 2017, including the mobile payment company Coin and a smartwatch known as the Vector ne compromise has been the Watch, so speculation is high that a bold new so-called hybrid smartwatch- Fitbit smartwatch could be on the cards. es, which look like prestigious “We believe we are uniquely positioned to suc- mechanical wristwatches but have ceed in delivering what consumers are looking for a limited range of clever smart- Alpina Horological in a smartwatch: stylish, well-designed devices Owatch-inspired functions hidden inside. Alpina’s A hybrid watch, this could that combine the right general purpose function- well be the future of the Horological Smartwatch, from $1,050, for ality with a focus on health and fitness,” Fitbit luxury smartwatch sector. instance, can also do clever stuff such as tracking Launched: 2017 CEO James Park said in the statement earlier this your activity levels, monitoring your sleep cycles or Cost: $700 year. He’s even hinted at a Fitbit app store in what letting you know when to check your smartphone would be a direct challenge to Apple’s dominance. for that urgent text or e-mail by vibrating. There’s As the boundaries between wearable tech, fit- even a luxe ladies’ version with a diamond studded ness trackers and luxury mechanical watches seem stainless-steel bezel for $2,595. destined to be increasingly blurred, what upcom- “I am not so sure about the long-term poten- ing trends can the experts predict? “Smartwatches tial of traditionally designed luxury watches with are here to stay,” says Ariel Adams, founder of the limited digital ‘smart’ add-ons (like a pedome- horological site ABlogtoWatch.com, “and they are ter),” says Ruegger. “I believe a luxury smartwatch going to further evolve. should at least offer the same functionality/usa- “I am convinced that the increasing utility of bility and connectivity as an iOS/Android-based smartwatches will continue to convince more and product with screen. Additionally, luxury brands more consumers that wearing them is a good idea. will need to come up with a solution for updates: Smartwatches will continue to be more and more if a customer needs to buy new ‘hardware’ every independent from mobile phones. 12 months, chances are he/she will drop out of the “Given how closely they are worn on our bod- 47 process after the first update.” Pebble ies, I believe that the future of smartwatches is So does Apple have the smartwatch market Pebble raised $10.3m more in what information they record about what sewn-up already? “There are some micro-brands on Kickstarter in 2012. we are doing (and thus are able to help make use- out there making baby steps in the genre It sold more than a million ful predictions about what we need) as opposed watches, but shut in 2016. of smart-mechanical hybrid watches,” says Launched: 2012 to merely being another ‘screen’ in our lives,” Jonathan Ho. “But the truth is, Apple’s popu- Cost: $99 to $149 Adams adds.

PF_112017.P42-47_Feature_DigitalWatch.indd 47 10/22/17 2:38 PM THE NEXT CRASH

Lauren Razavi and Jesse Onslow Norton investigate when the next global recession will happen

PF_112017.P48-53_Feature_TheCrash.indd 48 10/22/17 5:10 PM ay you live, the Chinese used greater levels of wealth inequality. More importantly, to say, in interesting times. QE has done little to deleverage the global economy. That was always intended as Levels of public indebtedness are now greater than a curse rather than a hope, they were when the previous crash began. and it’s safe to say, as we Mervyn King, former governor of the Bank reach the end of 2017, that of England, believes that the global economy is Mthe world has rarely been more interesting. There finally showing signs of recovery. But he warns are troubles everywhere you look, from Trump’s that total debt relative to global gross domestic America to Brexit Britain, from Russia to Turkey product (GDP) is still far too high: to North Korea and everywhere in between. And, “At the end of 2016, household and corporate despite the economy doing well, with stock mar- According debt in the world economy, as a share of GDP, kets booming, many are warning that a new crash to the UN, amounted to 138 per cent, compared with 115 per is coming, and possibly sooner than we think. In cent at the end of 2007. For advanced economies, September, Deutsche Bank weighed in on the the 2008 that ratio averaged 195 per cent last year, com- debate with its annual long-term assets survey. The crisis was pared with 183 per cent at the end of 2007. With report, gloomily titled: ‘The Next Financial Crisis’, never fully only a few exceptions, in most countries, public outlines a series of potential catalysts for the next debt rose significantly over the same period.” global crash including widescale deflation, collapses resolved Unconventional monetary policies such as in market liquidity and a global slowdown in trade. and could negative interest rates and quantitative easing are Doomsday predictions for global economics be about part of the reason central banks are so leveraged, are nothing new, but investors believe that sev- but large-scale asset purchases have also played eral key performance indicators are now cause to enter its a role in increasing public debt. While these for concern. In June, Warren Buffett announced third phase actions were intended to improve conditions for that Berkshire Hathaway has close to $100 billion borrowing, they also unintentionally drove asset in cash due to doubts over the current invest- managers to begin investing in the corporate ment climate. Shrinking confidence in markets bonds of emerging economies. is particularly concerning to central banks, who According to the UN’s annual trade and resorted to drastic measures to stimulate lending development report, the financial crisis of 2008 after the crash of 2008. was never fully resolved and could be about to Quantitative easing (QE) is seen to have stunt- enter its third phase. Speculation in bond mar- ed growth for the past decade in many economies. kets has led to corporate debt levels exceeding Rather than generating demand and providing access $25 trillion in emerging economies. A shift in to cheap credit, the stimulus measures are perceived monetary policy could cause a slowing in GDP to have promoted risky speculation and produced growth, sparking widespread defaults globally and triggering a damaging deflationary spiral. “What we’re most wary of at the moment is the rates cycle. We’re in the foothills of the hiking of rates and the easing of QE. As a result, it’s only a matter of time before you get a squeeze on the economy and the downside of the cycle takes place,” says Roger Jones, head of equities at asset management firm London & Capital. “Central banks need to tread a fine line or they risk tightening monetary policy too quickly by increasing the cost of credit and debt, thereby eroding the consumer’s ability to spend and drive growth.” Europe was severely impacted by the previous global financial crisis. Since the end of 2009, the continent has been embroiled in an ongoing sov- ereign debt crisis and the EU has been forced to repeatedly bail out Greece. Despite signs of an economic recovery, uncertainty over Brexit and the UK’s future trading relationship with the EU is creating instability in markets. Should another The former governor of the Bank of England, Mervyn King, believes that the asset bubble burst, it could be enough to send the global economy is showing signs of recovery, but that debt to GDP is too high Eurozone spiralling back into crisis.

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The return of fast growth in the property and real estate sector has had a positive impact on Europe’s recovery. But the rapid rise of house prices in cities like Berlin, Amsterdam and Paris may signify further financial troubles. A survey by YouGov found that 53 per cent of the UK’s population believe that another housing crash will occur within just five years. The current housing boom in the UK is the direct result of record low interest rates. Since the 2008 global financial crisis, interest rates have fallen from 5.75 to 0.25 per cent, the lowest rate the bank has set since it was established in 1694. Low interest rates increase the availability of cheap credit and encourage investors to speculate on fixed assets, like luxury accommodation. But low interest rates have only been used as a short-term measure to stimulate economies. “Cheap-money policies are crucial in aggra- vating the boom and bust cycle. A sudden tightening of monetary policy, which at a certain point will become unavoidable, will clearly indicate that the crisis is about to begin,” says Carmelo Ferlito, senior fellow at Malaysia’s Institute for Democracy and Economic Affairs. “Rising interest rates will be a consequence of a boom, rather than the cause of the crisis.”

ince December 2015, the US Federal Reserve has hiked fund rates four times, raising them to 1.25 per cent. As The fallout from Brexit shows no signs of abating with prime minister other central banks around the world Theresa May’s position looking increasingly weak consider similar action, there’s mount- Sing concern that less accessible credit will have a negative impact on demand for housing. The effects debt rose to 88.3 per cent of GDP, a steady increase of this squeeze could be most severely felt in the from 60 per cent in 2008. Non-financial corporate same Southeast Asian tiger economies that were sector debt is currently close to 100 per cent of GDP. decimated by the 1997 Asian financial crisis. “Many Neither people or companies have strong liquid- “On paper, Malaysia has experienced steady people think ity and another crash could trigger a domino-effect economic growth since the 2008 global financial across other sectors, not just in property.” crisis, but that growth is fragile and unsustainable that owning This situation is not unique to Malaysia; its in the long run,” says Ferlito. “[Many think that] a house similar in Indonesia, Mongolia, Sri Lanka and, owning a house is a right, rather than a possibility. is a right above all, China, where a debt-driven central- More and more people are trying to live beyond ised economy is now out of control. Many of their means to afford a house.” rather than Asia’s developing economies are highly leveraged, More property development in major urban a possibility, both in the public and private sector. “The real areas is partly the consequence of global migra- and they live crash will happen when China publicly declares tions and demographic changes. According to that it can no longer support development based Unicef, 70 per cent of the world’s population will beyond their on debt, particularly private debt,” Ferlito adds. live in cities by 2050. But in many of the world’s Many observed that the BRIC economies (Brazil, 50 means to most attractive cities, property prices are rising afford one” Russia, India, China) were best positioned to faster than wages, meaning that few arriving citi- weather the global downturn following the last zens can afford to buy their own homes. financial crisis. Today, however, strong growth in “When the Malaysian property bubble finally these economies can no longer be assured. bursts it will have a big impact on the national econ- In 2016, India was the fastest growing major omy,” says Ferlito. “At the end of 2016, household economy in the world, with its GDP rising by 7.3 per

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cent in the third quarter, but this year, India’s growth tion sentiment in developed economies, however, slowed to just 5.7 per cent. Exports typically drive means that many governments are contemplating the country’s economy, but in August an $11.44 bil- more protectionist policies. lion trade deficit opened up when the growth rate of “Protectionism has a very prerogative tone to it, its exports slowed to an eight-month low. but really there’s no such thing as free trade. What The BRIC nations now account for 40 per cent we live in is a world of managed trade and contin- of the world’s population and are a major driver for ual trade wars. The question is: who’s winning and who’s losing?” says James Rickards, economist and “Some countries have author of The New York Times bestseller Currency Wars: The Making of the Next Global Crisis. hollowed out their economies “Certain countries have been losing more than to the advantage of China” they’ve gained – manufacturing jobs, for example – and they’ve been hollowing out their economies to the advantage of trading partners, primarily China.” Rickards worked on Wall Street for over three global demand. When they boom, they provide a decades, advising the US intelligence commu- crucial avenue for capital investments and a steady nity on international trade and financial warfare flow of cheap exports. But when growth slows, so tactics. He believes that Brexit and the election does global trade, making it difficult for investors to of Donald Trump indicate the global economy get a reliable return on their investments. is entering a new era of abandoning free trade China’s economy, in particular, has experi- in favour of countries openly vying against each enced phenomenal transformation over the last other for competitive advantage. four decades, but it may finally be running out of “It’s no longer good enough for national lead- space for further growth. In 1978, Deng Xiaoping ers to believe in a borderless world and a global became leader of the People’s Republic of China perspective. They have to be more aware of their and steered the country through far-reaching eco- own constituencies,” he explains. “If you’re not nomic reforms. At the time he took power, China’s attentive to your own constituencies you end up total GDP was just $200 billion and accounted Donald Trump’s erratic like David Cameron or Hillary Clinton” for 4 per cent of global GDP. Since then, Deng’s leadership has hindered As part of Trump’s “America first” trade policy, the US economy and its reforms have grown China’s economy from $200 traditional global the US Department of Commerce has imposed a billion to $11 trillion. Today, it accounts for 15 per leadership role 220 per cent tariff on the planes built by Canadian cent of global economic activity. The modernisation of China’s economy and the opening up of trade through special economic zones has been one of the most significant changes to the global economy over the past half century. This powered extraordinary growth in the world’s most populous country and established China as the world’s de facto manufacturing hub. But it’s careful control over the value of the country’s currency that made it sustainable. Up until 2005, the Chinese government arti- ficially pegged the exchange rate to 8.27 yuan per dollar. For a few years leading up to the last financial crisis, China experimented with allowing the currency to fluctuate, but when Lehman Brothers collapsed in 2008, it returned to a fixed- rate policy in order to keep Chinese exports attractive to foreign markets. Today, China’s careful control of its currency 51 is only one factor that contributes to its status as the world’s largest exporter. China doesn’t charge any export taxes, while its biggest buyer, the United States, charges no import tariff. In total, this relationship accounts for an estimated $648 billion in trade each year. Growing anti-globalisa-

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trade with North Korea would lose access to the US financial system and have their assets frozen. These measures have been seen as a provocation towards China as it accounts for 80 per cent of North Korea’s trade. Should China retaliate by imposing a tariff on US exports or locking out American investment in Chinese firms, billions of dollars of trade could be lost overnight. Where there are risks, there are opportunities. Market veterans who have already weathered past economic storms will be familiar with navigating geopolitical uncertainty, but it can still be difficult to assess how best to diversify portfolios. So what’s the best move for investors? “I think a 10 per cent allocation of physical gold is prudent, and a large allocation of cash too – as much as 30 percent,” says Rickards. “Look at Warren Buffet: he has $100 billion in cash on the balance sheet, because he knows that when markets collapse and bubbles burst there are bargains to be had and the person with cash has the flex- ibility to pick them up.” Despite the prospects of Vladimir Putin and Xi Jinping: both of their countries are challenging US hegemony in global affairs a global slowdown in trade, there’s some good news for investors. Central banks around the world are beginning to reconsider their approach aviation firm Bombardier. In retaliation both to monetary policy, meaning that investors may Canada and the UK have announced they will soon be able to realise new opportunities. refuse to purchase military equipment from the “In a period of upward rate movements, financial US company Boeing. As isolationism gains popu- assets tend do well. For example, bank profitability larity in developed economies, it seems even the is boosted by steeper yield curves, though this is a closest of trading partners are imposing puni- shorter term opportunity,” says Jones. “Cash mar- tive tariffs to gain competitive advantage. Rising kets and deposit rates are interesting again and are barriers to international trade could risk global no longer just about preservation. In the depths of productivity and investment, resulting in wide- With QE and loose monetary policy, negative rates were spread stagnation and recession. The biggest risk the right a real problem. Investors can now look at cash and is that trade war spills over into actual war. deposits again as a safe haven.” safeguards, One thing is clear though: the recent stock mar- n April 6th, Donald Trump met the next ket boom looks unsustainable. If property markets with President Xi at Mar-A-Lago financial collapse, holding publicly traded equities could Florida, Palm Beach. During his prove particularly risky. “If you put all your money 18-month election campaign, collapse in liquid investments, or even in the stock market Trump had made bold proclama- could be and it declines rapidly, you could find that you can’t Otions that he intended to label China as a currency get cash easily or you lose it,” says Rickards. “I keep as much an manipulator, impose tariffs on Chinese exports away from publicly traded equities, but I have a pri- and punish the country for stealing American opportunity vate equity and venture capital investments. They’re intellectual property. But when the meeting took as a crisis not liquid, but that’s how I would generate some place, nothing happened. upside rather than chasing public markets.” “Real war tends to get in the way of trade It’s unclear exactly how or when the next wars,” explains Rickards. “We’re looking for global financial crisis will strike, but both pub- Chinese help with North Korea. We want to lic and private sectors are heavily leveraged and 52 impose much more stringent sanctions, cut off asset prices are inflated across a variety of mar- their financial oxygen, cut off trade. Trump has kets. In the near-term, investors should consider explicitly said to Xi if he can help with that then taking precautions to shield against the impact they’ll go easy on the trade front.” of another collapse. With the right safeguards, In September, Trump issued an executive order the next financial collapse could be as much an mandating that any country which continues to opportunity as it is a crisis.

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CMY

K THE ART OF

PF_112017.P54-59_Feature_StreetArt.indd 54 10/22/17 3:07 PM David Whelan examines how street art has transcended its origins and – thanks to collectors and dealers – found a home in the gallery

THE POSSIBLE

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eptember of this year saw the opening of Jean-Michel Basquiat’s first major UK art exhibition at the Barbican – a building that has had a troubled relationship with graf- fiti on its walls. The mysterious SBanksy, in retaliation, put up two new pieces on the Barbican, seemingly both to protest Basquiat’s exhibition and, also, to alert onlookers toward the complicated relationship street art has had with the high-end market for decades. There is a democratisation inherent in the reclaiming of private walls for public consumption, an act of creative subversion in the face of capitalistic ten- dencies – they are free to see, to enjoy and appear, almost with deterministic surety, precisely where they are most unwanted. Banksy – whose name is one of the most recognisable in the art world – and his ilk, however, transcend that process, until it becomes inevitable that any great collection of art world would not be complete without their work. Steve Lazarides, owner of the LazInc Gallery in Mayfair, London, has seen this shift with his own eyes. “I went around the auction houses yes- terday to see where the movement is,” he said, “and it’s two street artists from the 1970s and ’80s that are the biggest selling on the planet at the moment: Jean-Michel Basquiat and Keith Haring.” sought after artist on the planet. This is a present that would Basquiat – a deceased, drug- have been unimaginable in the time of his pomp – when using black man from Brooklyn Manhattan’s art scene bubbled with tension and snobbish known primarily for his counter- friction. Originally, the work sold for $19,000. It is an astro- culture slant and death of overdose nomical rise in value and desire. Basquiat’s piece is now the at the age of just 27 – became sixth most valuable work of art in existence, and the first piece America’s most expensive artist in of art created after 1980 to sell for more than $100 million. May, when his 1982 piece Untitled “I hope it brings as much joy to others as it does to me, and sold for $110 million this year, sur- that this masterpiece by the 21-year-old Basquiat inspires our passing Andy Warhol’s XXXX. future generations,” the buyer said in a statement. It would be remiss not to empha- But what is driving this change in fortune for street art? Why sise how powerful a statement of has the mural of the populace become, all of a sudden, the jewel change that is. Basquiat came to in the collector’s crown? “This is something that’s always been prominence with the informal graf- there,” says Lazarides. “It’s been happening since the 1980s. fiti duo SAMO© in the late 1970s We haven’t changed anything – what’s happened is ‘the real and later through his association art world’ has caught up. That’s not to say there haven’t been with Warhol, He is now the most a lot of very good collectors for a while. If you look at Banksy’s market, for example, it’s been a steady growth. There’s been no artificial jamming of the market. They’re becoming blue-chip, 56 naturally, because they’re great works of art.” The profile of the buyer of Untitled – Japanese internet entrepreneur Yusaku Maezawa, founder of fashion site Zozotown – reveals the upward momentum of street art from the gutter Jean-Michel Basquiat’s work on display at Sotheby’s (right) and to the penthouse. Maezawa, who is worth more than $3 billion, at a gallery in Milan (top) has precedent: in 2016, he spent $98 million on multiple pieces

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Pilar Ordovas, a London-based art dealer, after the sale. “But when you have the right material, which is fresh to the market, and the right estimates, things are performing incredibly well.” Nowadays, there is a general trend for the urban artist to fight with and against the system. In Berlin, a local group of artists named Paintback spend their days altering swastikas into such things as penguins and humanoid figures; in Bristol, by contrast, the home city of Banksy is actively trying to remove street art from its walls. It’s an uncomfortable place for the work to sit – but it adds to allure. The originals are always, by nature, fleeting. Here today, maybe, and gone tomorrow. Basquiat’s work, for example, is now mostly in the hands of the elite – many famous names have acquired his work, including Madonna, Leonardo DiCaprio, and American hedge fund billionaire Steve Cohen. David Choe is a contemporary street artist Jean-Michel Basquiat who has transcended the tradition by gaming the system. Choe, 41, is an American in just two days, including another work by Basquiat – for a then artist, graphic novelist and muralist, record fee of $57 million. and probably the richest street art- Maezawa is only 40 years old, born 17 years after Basquiat. ist in the world. His work has been The face of the collector is changing, and so are their tastes. co-opted directly into the Venn dia- Maezawa represents the new art collector: young, upwardly gram crossover between high art mobile, wealthy and with contemporary, international tastes. and pop culture. Jay-Z and Linkin Maezawa has a Twitter account and an Instagram: his collection Park have enlisted his services for is shareable, tradable and, in some ways, more available to the album cover art, while his work has public than ever before. “You could say Instagram has made this also been seen in the sets of films market,” said Tina Ziegler, the organiser of Moniker, London’s such as Juno and The Glass House. largest urban art fair. Another internet entrepreneur, “If there’s one thing you can guarantee in life,” says Lazarides, Sean Parker – famous for establish- “it’s that nobody is going to hang the same art on the wall as their ing file-sharing service Napster and parents. This new generation of 40-45 year olds, whose parents investing in Facebook – became a were buying Hirsts, don’t want to copy that. These buyers are fan, and asked Choe to decorate worldly and savvy, and want to do something new. A generational the walls of Facebook’s office. He shift is happening. People are look- was offered $60,000 for his servic- “Nobody ing for something that is theirs. This es, but chose, instead, to take shares is art that belongs to us, our time, in the company – he is now worth, is going to our era. Street art grew up in the late by stock-estimates, roughly $260 hang the ’70s, early ’80s – just like the buyers.” million. Barack Obama is also the same art Maezawa is not only focused on owner of a portrait Choe designed modern art, however. He also owns of him – a street artist hanging in on the wall work by Pablo Picasso, Alberto the White House, in the best way. Giacometti and Jeff Koons, to name This is the great, contemporary as their 57 parents. A just three. He plans to loan out his issue of art – the point of collision art to galleries, until the moment between the street and the gal- generational he has enough to launch his own, lery, the public wall and the private shift occurs” in Chiba, Japan. “The uncertain- viewing space. Money, after all, con- ty of the world and the economy tinues to run its mouth: everything is reflected in the art market,” said has its price, no matter how

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anti-this or contra-that its original intention. But it’s not all bad, or even, necessarily bad. “What’s really funny, the way I look at it, is seeing these pieces being sold and thinking – oh, that’s my foot- print on the back of the canvas,” says Lazarides. “Some of these pieces have been in the boot of my car or under my desk. But these days, no one is getting picked up and rinsed out by galleries any more – there’s a lot of trust for our artists.”

“I am opposed to things being ripped off a street and put in a gallery. It’s created for the enjoyment of the population”

And, yet, there are grey areas. Banksy, for example, is not clean of the process he is criti- quing. In 2014, after the Folkestone Triennial, his piece Art Bruff, displaying a woman with headphones staring at a plinth, was carved out of the wall it was set on, shipped to America and sold for, reportedly, street art to happen pretty much anywhere – all that happens is $500,000. A local Folkestone chari- that, there’s nothing to lose. They have a totally different mind- ty, Creative Foundation, fought back set to the original generation. Where’s the rebellion?” (Banksy didn’t want to be involved) Banksy, of course, has precedent for selling his pieces to the through legal channels and, eventu- highest bidder. In 2008, his Keep It Spotless piece, a defaced ally, reclaimed the piece. This set a Damien Hirst painting, was sold by Sotheby’s for just under precedent – that pieces painted onto $2 million; Simple Intelligence Testing went, at the same time, for walls should remain at the original $1.3 million; Vandalised Phone Box, a sawed in half phone box locale. After all, while the artwork originally located in Soho Square, London, went for $605,000. could be traded, the choice of can- “These artists are incredibly creative,” says Lazarides. “What vas opens up a variety of legal and they make for the gallery was completely different than what ethical questions about ownership. they were doing for the street. They understood that they had This is, one assumes, the point of to do something different. And it shows. Banksy, Haring – what street art. But the strange silence these people were doing was a passion. These guys were going of the artists while the legal dispute out on the street and working. They weren’t going out with any was ongoing spoke volumes. idea except making stuff on the street.” “I’m vehemently opposed to In September of this year, controversy visited Banksy again, things being ripped off the street when his Haight Street Rat piece was removed from its original and put into a gallery,” says location, the outside wall of a bed and breakfast in San Francisco, Lazarides. “It was put there by the and moved to the Sierra Arts Gallery in Reno. What made this artist for the enjoyment of the whole controversial was the extra presence of a red line drawn by the 58 population, not to enrich one or two artist alongside the original piece, accompanied by the words people. Let’s be honest: if you take “Here is where I draw the line.” This seemed, to most consum- art from the street, you’ve stolen it. ers, to be a critique of gallery, consumer culture and, yet, the Taking the art away just makes the piece was moved by collector Brian Grief. Grief insisted at the city poorer. I also have issues with opening reception that he was not going to sell the piece but had cities, like Melbourne, which allow also failed to donate it to the San Francisco Museum of Modern

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– where lives are lived in and out of the digital/analogue simultaneously, where most communication occurs through a phone with the world blocked out in headphones – urban art erupts through that divide, and combines the two. French artist JR is a perfect example. Any viewer of the 2016 Olympic Games in Rio would have noticed from the hun- dreds of panoramic shots of Guanabara Bay a huge print of an athlete swimming – this was the genre, existence bending work of JR. “I’m tag- ging faces of persons,” he says. “They are the ones responsible for their image. When the people react to the project, it becomes their project.” JR’s work sells for tens of thousands and has garnered numerous fans, from sportsmen to political figures. As Banksy made a statement on the apartheid with the Walled-Off Hotel and Museum in Bethlehem, JR covers cities in portraits of Israelis and Palestinians staring at each in Face 2 Face; he has worked alongside activists to cover Russian Embassies with their portraits, and AIDS sufferers the same in townships throughout Johannesburg. “Image is part of the healing process,” he has said. His most recent work – a huge photo of a young boy pasted across the US-Mexico border – made inter- Art. “I want it to stay close to home,” Greif said. Grief’s interest national news. “These artists, of in Banksy was sparked during 2010 – when Banksy visited San course, are so good at manag- Francisco and left his stereotypical mark on the city. The 2017 ing their careers,” says Lazarides. film, Saving Banksy, documents a variety of people’s desire to “I gave JR his first show in his save his work from the city’s seemingly relentless desire to remove early 20s and now he’s doing huge or paint over the pieces – Grief, of course, received a fair amount things. Deliberately.” of criticism for removing Haight Street Rat, but insists he will not Nowadays, street art has arrived sell it for profit. How, precisely, he went about taking the painting – and it’s not going anywhere. From from the wall is documented by the Save the Banksy foundation, the public to the private space, into which Grief put $40,000 of his own money. these once forgotten voices of the Replicas, then, become the thing. High quality prints trad- people are now the most influen- ed for reasonable costs. Legitimacy is earned through certain tial and important artists in the signs or marks of proof these came from the original artist. The contemporary world. “I’m amazed print runs are limited and are predicted to skyrocket in price by how worldwide this is,” says and value. The nature of prints makes the artwork appealing Lazarides. “The Middle East is a – the ability for a street artist to be inspired by a particular cur- huge market. You can see street art rent issue, create their work in a public space and then have everywhere – in houses, hotels, even them available to purchase from galleries pretty much over- on the street. These artists bring the night is deeply alluring. There’s an instantaneity to print that same creativity and energy for their other forms of replication cannot provide. But there is a serious gallery work to what they do on the issue with quality control. Stik recently had to stop the sale of street – it’s amazing.” Listening to 59 700 eggs printed with one of his images without his authority. Lazarides speak with such passion Sometimes, the democratisation of art causes accidental rifts: it and love for street art’s rise to com- is often impossible to know whether the artist intends for a piece mercial strength, it’s impossible not to be sold or to be seen only publicly. to get excited: street art may have There is a real audacity to urban art that appeals to the started on the pavement, but it’s at younger collector. In a world of dissolving, infirm boundaries its peak in the gallery.

PF_112017.P54-59_Feature_StreetArt.indd 59 10/22/17 3:08 PM VANITY FAREWELL

Vanity Fair redefined the celebrity magazine. Lauren Razavi looks back at 25 years of Graydon Carter’s reign

PF_112017.P60-66_Feature_GraydonCarter.indd 60 10/22/17 4:05 PM During the early ’80s, Vanity Fair was hopelessly out of touch with popular American culture

fter 25 years as editor-in-chief of Vanity Fair, Graydon Carter announced in September that he would be stepping down from the role. Under Carter’s watch, the magazine evolved fromA a sedate society rag to a media juggernaut with editions all across the globe. Today, the publication enjoys notoriety and respect in equal wanted to be a stylish and upmarket publication, measure. But for a long time, Vanity Fair was but was hopelessly out of touch with popular cul- nothing more than a costly flop, struggling for its ture. Readers were baffled by the inclusion of survival as part of the competitive media land- highbrow personalities like poet Elizabeth Bishop scape. As the magazine finds itself on the cusp of and author John Irving, to the exclusion of fig- a new era, we explore some key moments in its ures like Boy George. When Tina Brown – who tumultuous history. would later go on to create online magazine The Condé Nast initially launched Vanity Fair Daily Beast – took over in 1984, she described the in 1913 as a companion to Vogue. At the height magazine as “pretentious, humourless. It wasn’t of America’s Great Depression 23 years later, too clever, it was just dull”. the company decided to consolidate Vanity Fair It was Tina Brown who began transitioning and Vogue into a single magazine in an attempt Vanity Fair to today’s incarnation of the title. She to combat falling sales. It seemed as though the brought on photographers like Annie Leibovitz increasingly impoverished citizens of the US no and began to focus on household-name celebrities longer had time for the light-hearted glamour as well as creative luminaries. During her premier- that filled Vanity Fair’s pages; articles like ‘How To ship, Vanity Fair’s covers went from tame pictures Marry A Millionaire’ lost their appeal quickly in of Ronald and Nancy Reagan to stark, intriguing an age where former millionaires were beginning portraits of the hottest stars. One cover gained to declare bankruptcy in their droves. particular notoriety for featuring a pregnant, half- It would be nearly half a century before Vanity naked Demi Moore, fresh from her starring role in Fair was revived, and the revival efforts were a Ghost. The cover would become typical of Vanity disaster from the start. The first editor, Richard Fair’s candid celebrity coverage. Locke, had never worked on a magazine before. After years of obscurity, Vanity Fair was final- Locke’s Vanity Fair was plagued by delays, which ly coming into its own. But Tina Brown had only led to the loss of a gossip column by none other ever seen Vanity Fair as a stepping stone to some- than Truman Capote. The notorious best-selling thing bigger. Following her departure in 1992, author would later recall: “I didn’t hear from Mr the magazine finally gained the spark it needed Locke for weeks, and then one day this messen- to reach its full potential. The catalyst? A man ger boy shows up at my apartment with my copy, named Graydon Carter. and there are red pencil marks everywhere! You Carter knew a lot about failure. As an adoles- can’t rewrite a stylist. So I just sent it over to cent, he failed to graduate from the University of Esquire.” It wasn’t long before rival publications Ottawa, and then doubled down by falling a few like The New York Times were speculating that credits short of a business degree from Carleton Locke wouldn’t last long – and indeed, he was University. His first journalistic venture, The replaced after just three issues. Canadian Review, was well received, but ultimately Even in the glitz and glam of the ’80s, Vanity folded in 1978 with over $100,000 in unpaid debts. Fair remained a sober blot on the shelves of After that, Carter had to start getting more serious newsagents and supermarkets. The magazine about his work and his career.

PF_112017.P60-66_Feature_GraydonCarter.indd 61 10/22/17 4:05 PM From the moment we first welcomed patients to our London hospital in 1840, to the opening of our clinics here in Dubai and Abu Dhabi, one thing has remained consistent, and that is the importance of caring for our patients and their families, not just medically, but with kindness and respect. Find out more about how we can help you.

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Vanity Fair Carter finally took cess in the US. Spy were known for throwing the media world by wild parties, at one point inviting their whole became storm when he teamed subscriber list to descend upon New York’s The a never up with Kurt Andersen Tunnel Club. Through these activities, Carter ending party to found Spy, a satirical and Andersen marked Spy out as a rebel spirit magazine that had New that sought to dismantle the status quo. straight from York elites cowering for the pages of cover. The publication till, it’s clear that Carter had learned The Great took the kind of risks from his failures. Instead of trying to no other magazine at appeal to a national audience and hav- Gatsby the time could han- ing to adjust the price per copy as a dle, poking fun at even result, Carter applied a simple formula. the highest echelons of SSpy was a magazine about New Yorkers, therefore he New York’s high society. focused on the New York subscriber base. The mag- As one writer for New York Magazine put it: “Which azine retailed at $2.50, a happy medium between of us hasn’t thought to himself before doing some- Vogue and Vanity Fair, which sold for $3.50 and thing wrong, ‘How would this look in Spy?’” $2.00 respectively. The price was affordable, but not Spy was much more than a gossip magazine; it so cheap that the magazine sunk to tabloid status. A was the face of rebellion in an industry that had perfect fit for the New Yorker about town. been resting on its laurels for decades. Carter In July 1992, Carter accepted the role as edi- knew from experience that quaint, friendly little tor of Vanity Fair and set about infusing the magazines – like his own attempt, The Canadian magazine with the same edginess that had made Review – were destined for failure. With Spy, he Spy such a sensation. Still, his vision of the maga- 63 knew he needed to create something different. zine wasn’t a complete overhaul: he soldiered on Carter and Andersen were meticulous in posi- with the successes of the previous generations of tioning themselves as outsiders. They took offices VF’s covers almost always Vanity Fair in mind, and sought to revitalise the in SoHo at the Puck Building – deliberately cho- focus on Hollywood publication for a modern audience. sen for its history as the offices of Puck Magazine, Under Carter’s stewardship, Vanity Fair became one of the first satirical magazines to find suc- a never ending party straight from the pages of

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The Great Gatsby. He famously compares finalis- ing the layout of the magazine to creating a seating plan for an imaginary dinner party – a little satire here, a hard hitting celebrity tell-all there. If Carter designed Spy to be an industry bad boy, he turned Vanity Fair into a stunning debutante. Nothing was too ostentatious for a Vanity Fair party under Carter’s rule. Parties featured such delights as topi- ary shaped like Oscar statuettes, and guests were Carter positioned the magazine with a mix of hard-hitting journalism and celebrity coverage

frequently given lavish gifts, such as cigarette light- ers engraved with the Vanity Fair logo. Vanity Fair had become the luxurious society magazine Condé Nast had always wanted it to be, but with its own unique, enticing and mischievous twists. Gone were the days of flattery and pandering to the celebrities. Carter wasn’t interested in a vapid publicity machine, but he didn’t want Vanity Fair to become a satire rag like Spy either. Instead, he devised a potent mix of hard-hitting journalism and celebrity coverage. Carter focused on scoring celebrity exclusives but never shied away from portraying those same celebrities as human beings, with virtues and flaws in abundance. And alongside articles that covered topics like designer John Galliano’s addiction were pages dedicated to the crisis of growing income inequality among the Graydon Carter and Kennedy family in every issue of Vanity Fair pub- everyday people of America. Anna Carter arrive at the lished between 2003 and 2011. Certainly, Carter Perhaps the most famous of Carter’s success- Vanity Fair Oscar Party had used publications to explore his own fascinations es at Vanity Fair was the unveiling of the Watergate before – the best received being his frequent take- ‘Deep Throat’ source, three decades after the downs of Donald Trump, long before his election as scandal itself shook American politics to the core. US president – but most of the Kennedys were no In 2005, Vanity Fair broke their big reveal with the longer even alive over those years. headline ‘I’m the guy they called Deep Throat’. More damningly, Vanity Fair has faced accu- The article was a deeply personal portrait of the sations of misrepresenting the factual content of source, W Mark Felt, as an ageing grandfather stories to attract attention. The magazine described living in anonymity in his daughter’s converted a sadistic ‘game’ used as part of the casting process garage. The article was, of course, a sensation. for Angelina Jolie’s latest film, First They Killed My Even 30 years after Watergate, the mystery of the Father. Allegedly, the actress deliberately sought out 64 ‘Deep Throat’ source resonated with the collective Cambodian children who had experienced great consciousness of Americans everywhere. hardship and had them ‘steal’ a small amount of But it wasn’t all plain sailing. The irreverence that money and then justify their actions. However, it had been lovable in Spy became an unforgivable became clear that in reality, this game was nothing faux-pas when utilised at Vanity Fair. Critics pointed more than an improvisational exercise. Vanity Fair out that there had been at least one article about the had made headlines commenting on Jolie’s

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CMY

K VANITY FAREWELL

Carter himself emphasises that the essential ingredients of the stories haven’t changed in the digital era, just the mode of consumption. In his words: “People are consuming more voracious- ly than ever.” It’s certainly true that in the age of the internet, Carter’s particular brand of celebrity lampooning is more relatable than ever. For example, after long-time target Donald Trump tweeted that Vanity Fair was “way down, big trou- ble. Dead”, the magazine gained almost 80,000 new subscribers overnight, and millions more readers tuned in online. The modern Vanity Fair is everything Condé Nast dreamed it would be back in 1913, and a large part of that is thanks to Graydon Carter. So what’s next for Graydon Carter? Well, he’s expanded his empire to include a whole cohort of different projects over the years, so he’s unlikely to find himself bored post-Vanity Fair. One such project is his pair of successful Manhattan restaurants. Carter co-owns both the Waverly Inn and the Monkey Bar, two highly exclusive eateries that specifically cater to celebri- alleged cruelty, but at the cost of the magazine’s Carter’s much ty clientele. Carter likes to run his restaurants just journalistic integrity. Still, Graydon stood by the hyped Greenwich like he runs his magazines: with precision and a article, perhaps knowing that it was only a blip in an Village restaurant, killer seating plan. He jokes that one of his greatest The Waverly Inn otherwise almost spotless record. achievements was the invention of the double-sid- In a world where print media is continually fall- ed place card, because it means you’ll never have to ing out of style, Vanity Fair has managed to retain its ask the name of the person sitting across from you. allure. There are five different international editions Carter has also made splashes in New York’s of the magazine, and it enjoys a total circulation of illustrious theatrical scene, most recently as the over 1.2 million – outselling other American heav- producer of I’ll Eat You Last, a play about talent yweight titles such as The New Yorker and Forbes. Carter likes agent Sue Mengers, legendary for her wit and Vanity Fair has been publishing articles online since to run his brutal honesty. True to form, Carter managed to 2006, and recently launched an online edition on hook Bette Midler as the star of the show, and it the iOS App Store. Carter also helped Vanity Fair restaurants debuted to rave reviews. There are rumours that join the viral video trend with a new channel, ‘VF just like Carter’s ‘third act’ might even take the form of Hive’, on streaming site Cheddar, dedicated to he runs his another journalistic venture. He’s already been bringing the magazine’s content to a medium that pitching stories to publications like The New resonates with millennial audiences. magazines: Yorker, where his longtime friend David Remnick with is the editor. Although, he jokes, he feels like he lenty of magazines have been throw- precision might get responses like ‘How do you spell your ing ideas at the internet to see what name again, Graydon?’ sticks. Time Inc, for example, has and a killer Whatever Carter’s plans for the future, we’re already attempted to define its place seating plan unlikely to hear something concrete anytime soon. on the bandwagon of new media sto- For one thing, Carter has to transition in the new Prytelling with a video channel of adorable animals editor of Vanity Fair – an appointment that has 66 called Paws & Claws – a notable departure from yet to be finalised. For his own projects, Carter is their usual journalistic fare. Vanity Fair, however, remaining uncharacteristically tight-lipped. His rea- has ensured that their online coverage offers the soning? “It’s best to fail quietly at the beginning of same mix of biting celebrity coverage and seri- something than to make grand pronouncements.” ous news articles that have made the magazine so But then again, isn’t failure how the great successful in print. Vanity Fair got started in the first place?

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+971 800 IMKAN makersdistrict.ae UNEASY STREET Jesse Onslow Norton examines why the rich feel more anxious than ever before

PF_112017.P68-72_Feature_AnxietyOfRich.indd 68 10/22/17 6:15 PM It appears that super-rich billionaires such as Warren Buffett, Bill Gates and Mark Zuckerberg who pledge money are inspiring other high net worth individuals (HNWIs) to do the same. According to a 2016 survey of 1,345 US house- holds with a net worth of more than $1 million, carried out by Bank of America, 91 per cent of HNWI donate to charity each year, giving an average of $25,509. Thirty-nine per cent of respondents said that they were motivated by experiencing personal satisfaction, enjoyment or fulfilment. The study also found that 50 per cent of those surveyed had volunteered in the last 12 months, with 63 per few weeks before Christmas in 2016, Irish- cent citing the personal gain they got out of it as the American businessman Chuck Feeney reason for offering their time and services. granted a $7 million donation to Cornell Rachel Sherman is the author of Uneasy Street: University in Upstate New York, the insti- The Anxieties of Affluence, an examination of the tution he’d graduated from back in 1956. struggles faced by New York’s liberal elite. She After building a fortune in duty free and believes that the charitable behaviour of HNWIs luxuryA retail, the cheque Feeney wrote brought the amount he in the US could be the result of them wanting to has donated over the last 35 years to $8 billion, leaving him disassociate themselves with the fact that they’re with only $2 million to his name. The 86-year-old, who is wealthy, especially as the country continues to famous for having said “nobody can wear two pairs of shoes have increasingly public discussions about, and at one time”, aspires to go broke in his lifetime – he once told visible displays of, inequality. According to Census The New York Times that he hopes the last cheque he writes Bureau data released in September, inequality is bounces. He now lives a quiet life with his wife in a modest, persisting, despite household incomes climbing rented apartment in San Francisco. and poverty reductions. The case of Chuck Feeney is unusual, but it highlights an “I think in the context of US society there is uneasiness that some have with the amassing of money. He’s not the argument that they [HNWIs] are trying to get alone in these endeavours either – others have chosen to give past this discomfort and legitimise their wealth away nearly all their fortune. In 2010, the late Welsh business- by interpreting themselves as morally worthy of man Albert Gubay, founder of health club chain Total Fitness, privilege,” says Sherman. “That means showing made headlines when he gave away all but $13.1 million of what themselves to be hard workers, that they’re reason- was then a $628.9 million fortune to charitable trusts. He opted able consumers. So they’re not ostentatious and instead to live as frugally as possible until his death in 2016. over the top; they give back to society in different ways, primarily through charitable contributions and some of them through volunteering.” Chuck Feeney gave away $8 billion For her book, Sherman spent time interview- ing fifty affluent New Yorkers, a mix of hedge fund of his fortune. He said he hoped financiers and corporate lawyers, professors and the last cheque he wrote bounced artists, and stay-at-home mothers. She examined their lifestyle choices and explored their understanding of privilege.

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Rachel Sherman

“The people I interviewed were rela- The rich tively liberal New York elite. I found that affluent and wealthy people were more often uncomfortable with their privilege than downplay I’d expected them to be,” says Sherman. their “They were uncomfortable talking about it and they don’t like identifying them- financial selves as affluent.” status to It’s not an uncommon feeling. Wealth friends Sherman also discovered this from discussions with her inter- comes packed with plenty of intense viewees. Though her subjects weren’t willing to be open about emotions, or so found a 2014 global sur- and family their income status or wealth, she says they would still com- vey conducted by independent financial pare themselves to other people, be it friends, neighbours or advisory organisation the deVere Group. colleagues. They would also downplay their own financial sta- Sixty-one per cent of 1,125 clients with tus and often see themselves as poorer than they actually were. more than £1 million ($1.3 million) in investable She adds: “It’s not so much that they’re hiding it from the assets, living across the UK, the US, the United world, because they do live in expensive homes and they most- Arab Emirates, Hong Kong and South Africa, ly send their kids to private schools. But there’s a way in which said that their finances were a sore topic of con- they don’t want to talk about it, almost that they don’t want to versation, even among family members and close admit it to themselves.” friends. The results suggested that when attend- One of the major reasons that HNWIs aren’t willing to be ing dinner parties, HNWIs would even prefer to frank about their bank balances has to do with media portray- 70 debate the oft-argument-starting subjects of poli- als, particularly those in reality TV shows like American show tics and religion over discussing how they like to The Real Housewives of New York or UK series Made in Chelsea, spend their money. where the cast are seen flashing their credit cards and splash- It seems like there’s no correlation between ing out on Chloé bags and Gucci sunglasses. This type of show how much money an individual earns, or has indulges the public in a one-dimensional view of what it’s like invested, and how open they are about it. to be wealthy.

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Some of the cast of the hit show Billions

consumption habits of the wealthy that has become an object of fascination,” Sherman explains. “That contributes to an image of rich people as being over the top. So, when the people who I talked to said they would never want to be on one of those shows, it told me that they were really distancing themselves from those kinds of images of the wealthy.” Along with reality shows, dramas have also created an illusion of how the rich live. Take the Donations or volunteering offset Showtime series Billions as an example. It was created to take a stab at Wall Street, where people the grubby image that can come dream of being successful, and its notorious ruth- with having a lot of money less streak leaves those who are unsuccessful in tears. Billions’ central character is hedge fund manager Bobby Axelrod, played by Damian Lewis, who spends $63 million on a beachside property “We now have a lot of reality TV that is really focused on the in the Hamptons simply because he can. lifestyles of the rich and famous. This presents many people with Characters like Bobby Axelrod, portrayed as views of inaccessible and unattainable lifestyles,” says Sherman. incredibly successful at the same time as being The public are drawn to reality TV because it offers them an self-indulgent and narcissistic, prompt a high escape from reality and the mundanity of day-to-day life. A life of percentage of HNWIs – including those Sherman wealth that viewers aspire to is often more within reach for the 45 spoke to – donate to charitable causes or volun- 71 to 60 minutes that it’s shown on-screen for, because those putting teer. It’s a way of offsetting the grubby image and their lives on display appear to be regular people. What’s being connotations that come with having a certain shown is actually a glamorized and distorted representation of amount of money. what it means to be wealthy: shallow, entitled and obnoxious. “As well as bad portrayals of the wealthy, the “The media promotes a certain kind of fascination with media gives us images of good wealthy people. wealthy people and especially with their consumption. It’s the Though the ones that come to mind are typi-

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cally male entrepreneurs,” Sherman says. “These are businessmen who are often coded positive- ly because they are, in the case of say Bill Gates, giving away vast amounts of money. In the case of someone like Buffett, it’s been noted that he has this very modest lifestyle given the fortune he has.” Like any minority, the wealthy often strive for conformity and struggle to reconcile their social status with their self-perception. Philanthropy and charitable donations are one symptom of this uneasiness with their affluence, but often these activities necessitate even more unwelcome conversations about money. When it comes to relationships married couples often find that wealth impacts their outlook and perspective differently and changes the home dynamic. “Those I interviewed who are stay-at-home mothers often have to negotiate a lot with their male Bill Gates and Warren Buffett partners, who are bringing in the money,” she says. “The men think that they’re more entitled to decide what to do with the money and are often critical of es to ensure that their home is a good environment in which to their wives, even going as far as supervising spend- bring up a family. Not only might this help to keep divorce rates ing or trying to control them in other ways.” down, but it can help HNWIs address the anxieties they have While some couples do split the responsi- about raising their children into a life of luxury. bility of bringing money into the household, Reflecting on her interviews, Sherman says that those she women who are stay-at-home mothers and spoke to who had children were keen to stress that it is impor- whose partners are the primary breadwinners tant they are raised not to be entitled. aren’t necessarily failing to contribute financial- “They want their children to understand that their lifestyle ly out of choice. But regardless of the reasons is not the same as most children, but then they also want their for the situation they are in, they children to feel like they are normal. They want to manage their can feel anxious and conflicted consumption habits and make sure they have some of work ethic about the lack of money they bring “They that’ll help get them a paid job when they’re in high school and to the table. It’s no surprise then want their college,” Sherman adds. “This matters because it contributes to that Sherman heard stories about children to the public conversation around wealth and inequality.” women wanting to make reno- With a report published in May showing that money can vations to their properties as an understand buy happiness – but only up to a point – strong family bonds extension of their role in bringing their lifestyle could also be key to keeping a smile on your face in the long- up the children, with the hope of is different term. The study was published by Gallup and was the result trying to make themselves a place of analysing 350,000 interviews to determine how income that can be called home. but that they affects daily emotions. For residents in the New York metropoli- “Even their husbands saw them are normal” tan area, happiness was $105,000, while it came out at a more as a net drain on the family finances, modest $54,000 in Washington, DC. rather than seeing that they’re actual- From what Sherman heard, she believes some wealthy ly doing all of this labour that makes people are recognising that the pursuit of fortune isn’t the our lifestyle possible, makes our home possible and American dream it was once made out to be. They’re becoming helps our kids grow up and so on,” Sherman says. more aware of their privilege – hence the giving back and volun- Divorce rates across the US are falling and are teering – and believe that speaking about it and struggling with 72 at their lowest for 35 years, according to annu- their wealth internally makes them morally better people than al data released in November 2016 by Bowling those who don’t think about it at all. Green State’s National Centre for Family and However, the $64,000 question is not so much whether these Marriage Research. Still, women knowing their HNWIs are good or bad people, but what the consequences are place in a relationship and having a role to play is for everybody when it comes to the distribution of wealth – and important, even if it means keeping up appearanc- whether the public conversation can ever change this.

PF_112017.P68-72_Feature_AnxietyOfRich.indd 72 10/22/17 6:16 PM Emirates v1 fin.pdf 1 12.10.2017 14:25:17

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Tropic

splendour 75 A brave architectural collision of old and new converge in Singapore’s most unique luxury hotel

PF_112017.P74-77_Living_Opener&Hotel.indd 75 10/22/17 5:14 PM LIVING / HOTEL

WHERE TO STAY CAPELLA SINGAPORE

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PRICE Villas from $720 per night

capellasingapore.com hat do you get when you cross an enormous  Norman Foster-designed SIN brutalist pavilion with a colonial-eraW army barracks and throw in a 30-acre tropical estate on a man-made island in the South China Sea? The mind boggles. Yet the astoundingly elegant Capella Singapore is a masterclass in an architectural wonder, boldly combining the inimitable work of cutting-edge design studio Foster + Partners with a sentimental nod to Singapore’s colonial heritage that offers the most spacious 76 77 accommodation in Singapore. The 112 guest rooms comprise 15 suites and 38 private villas including two Colonial Manors and five Contemporary Manors large enough to host a family with an entourage in tow.

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The villas all have private pools and are kitted out with Bose sound systems and Pratesi linens, and private assistants are on call 24 hours a day. FROM THE Long-term guests have the option CONCIERGE to stay at The Club Residences where, perhaps unsurprisingly, some have remained for years, no doubt charmed by the lifestyle benefits of living in a Gardens by the rainforest with cascading pools and a Bay is a 101-hectare roaming bevy of peafowl; where your nature park in the front garden becomes a conceptual city that showcases horticulture and art space to showcase gravity-defying garden artistry sculptures by French artist Bernar Venet. through a collection And while Sentosa Island has become of climate-controlled SEE constructions, a lifestyle landing-place in Southeast Asia including a Cloud – with its manicured beaches, rainforest Forest, a Supertree walks and popular leisure destinations Grove and a Flower such as Universal Studios Singapore Dome, which is encased within and Resorts Word Sentosa – its urban the largest glass serenity is in a class of its own. greenhouse in the world.

Designed by Hong Kong’s famed Andre Fu, Cassia is an award- winning Cantonese restaurant that tops EAT the list of fine dining establishments in Singapore and is located at Capella Singapore on Sentosa Island.

Universal Studios Singapore is one of the island’s most popular family destinations, having received more than PLAY 25 million visitors since it opened in 2010. VIP tours and Priority Access passes can be arranged through the park’s 76 concierge services. 77

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NOVEMBER LIVING / INVESTMENT ISSUE 143

The Regency Desk A classic piece of furniture that is well worth investing in

1 2 Check for flaws. Even Understand the market. Furniture styles come in a small flaw can have a and out of fashion, so be aware of how fashionable huge negative outcome (or otherwise) that piece is. You may have to wait 30 on the worth of a piece. years for it to come back into favour.

3 Buy what moves you. Don’t be afraid in trusting your gut. If you buy something you love and it doesn’t appreciate as expected, well, at least you are living with a piece of furniture you like.

PB 79 ntique furniture, when bought at the right time, can prove a very lucrative investment. If we look at the Antique Furniture Price Index, it has risen from 100 in 1968 to over 2,000, a rise of more than 20 times its original value. Beware though that collecting antiques can be expensive: it’s not unusual for selling expenses to hover around the 30 per cent mark, a reflection of the unique nature of much of the antiques being sold. That applies to the Regency Desk, whichA is currently popular among collectors. Regency pieces are known for their Roman and Greek decorative elements and many had Chinese and Japanese themes. Built to last and with a sense of design flair, these desks will brighten up any home office.

PF_112017.P79_Living_Investmentpiece.indd 79 10/22/17 3:55 PM LIVING / STYLE What to pack ...for winter weather in Hamburg and beyond

Average temp 5°c

Chance of rain: 40% HAMBURG NOVEMBER

C C C C ° ° ° ° 3 7 6 7

ALSO WEAR IN... Stockholm Milan Paris London

WHAT TO SEE

THE CHILEHAUS offices and warehouses built to The Chilehaus is possibly Hamburg’s cater for Hamburg’s booming trade most beautiful building, and it’s the and manufacturing industries that highlight of the Konterhaus district. exploded at the end of the 19th Built in 1924, it’s a stunning example century. These days, the whole 80 81 of the Brick Expressionism form area has been revitalised and it’s of architecture that was popular the perfect place to spend a long in Germany. The whole district is afternoon, browsing the shops, fascinating: beautifully designed galleries and cafes.

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ACCESSORIES 1

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Luis Morais glass bead, enamelled gold and diamond wrap bracelet $887 mrporter.com 3

Movado sapphire synergy chronograph watch $2,469 neimanmarcus.com 80 81

1. Tom Ford double-breasted shearling coat $16,133, mrporter.com 2. Fear Of God skinny-fit zip-detailed panelled selvedge denim jeans $1,139, matchesfashion.com 3. Aquascutum charlton polo knit $199, harveynichols.com 4. Berluti brunico venezia leather hiking boot $2,829, neimanmarcus.com

PF_112017.P80-83_Living_Style.indd 81 10/22/17 3:57 PM LIVING / STYLE What to pack ...for winter weather in Johannesburg and beyond

Average temp 26°c

Chance of rain: 22% NOVEMBER JOHANNESBURG

C C C C 20 ° 19 ° 24 ° 21 °

ALSO WEAR IN... Melbourne Christchurch Buenos Aires Perth

WHAT TO SEE

THE APARTHEID MUSEUM very meaningful experience, and A fascinating look at the history it’s a must-see if you are visiting of apartheid in South Africa, the the city and well worth the 8km museum has become a tourist journey out of the city. The building favourite since it opened in 2001. itself is stark and impressive, 82 83 It uses various media to tell the and the litany of large-scale stories of the people affected, and photographs brings home the it explains how the system worked tragedy of apartheid. This is one of in practice. It’s a chilling, although the best museums in Africa.

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1. Max Mara hooded cashmere and shearling coat $4,891, net-a-porter.com 2. Valentino ivory silk crepe shirt $2,588, harveynichols.com 3. Erdem perry embellished floral-embroidered tulle gown $4,922, matchesfashion.com 4. Jimmy chooKarima crystal 100mm sandal gray $2,635, neimanmarcus.com

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PF_112017.P80-83_Living_Style.indd 83 10/22/17 3:58 PM LIVING / FOOD

Seoul food James Brennan talks to two of South Korea’s hottest chefs and explores the increasingly popular world of Korean food

f you thought Psy’s Gangnam Style distinctly modern European slant. The was South Korea’s greatest cultural restaurant currently stands at No 15 on export, think again. Despite almost Asia’s 50 Best Restaurants list, and was three billion YouTube hits, there’s named best restaurant in Korea in 2016. Ionly so much lasting impact a frenetic Meanwhile, at his Jungsik restaurants music video of a man in a tuxedo in Seoul and New York City, Jungsik Yim doing a horse dance can have. Korean is credited with the invention of ‘New food, on the other hand, is massively Hansik’, or what he calls an ‘upgrade’ on trend. It looks good, it tastes good of traditional Korean food, using and it does you good. And it’s in a cutting-edge western techniques and neighbourhood near you. ingredients. Dishes such as bibimbap The Chinese have a word for the with raw sea urchin, or crisply charred phenomenon. Hallyu, or the Korean octopus with tangy tomatoes are helping Wave. It describes the rapid spread of to redefine the possibilities of Korean Korean culture, music, fashion and cuisine. Jungsik’s Seoul restaurant has entertainment around the world. Since one Michelin star, but his Manhattan the late ’90s, K-pop and K-dramas have restaurant has two. That might say been all the rage in Asia. But just as something about the enthusiasm with Chinese food became a go-to cuisine in which Korean food is being embraced in most western countries, a new breed of the West, and particularly in New York. chef is doing the same for Korean food. Between Fifth and Sixth Avenues Mingoo Kang and Jungsik Yim around West 32nd Street is an energetic are two of them. Mingoo’s Mingles cultural enclave known locally as restaurant in the hip Cheongdam-dong Koreatown. It’s a flourishing hotspot area of Gangnam in Seoul pushes the for Korean businesses, bars, spas, boundaries of Korean food with a karaoke clubs and restaurants dispensing everything from fried chicken wings to Mingoo Kang bibimbap. Cho Dang Gol offers Korean comfort food in the form of stews and soups that will ward off the worst of a Manhattan winter, while Kang Ho Dong

SEOUL , SOUTH KOREA Baekjeong is a barbecue joint popular with the likes of Anthony Bourdain and  David Chang of Momofuku fame. ICN Further afield, in Hell’s Kitchen, is Danji, a small Korean restaurant-cum- 84 85 bar modelled on a Japanese izakaya. It belongs to ex-medical student and classically trained chef Hooni Kim, whose yearning for high-quality authentic Korean food in New York drove him to take matters into his

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84 85

Luigi Taglienti

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Mingles

The Korean national dish, kimchi, is renowned for its superfood status, thanks to the enzymes and nutrients created in the fermentation process

own steady hands. The result is a small some chlorine-washed bird. But it’s not just kimchi that results (some might say cosy) eatery where “My philosophy in cooking Korean from fermentation in Korean cooking. guests budge up together on stools at food is stressing the importance of Mingles chef Mingoo Kang explains: bar-style tables. For Hooni, it’s all part natural ingredients,” says Hooni, “I think the recent increased interest of the wide appeal of Korean food. who also owns Hanjan, a similarly in fermented foods is from the desire “I think the eating culture and mindful Midtown restaurant. “At both to explore and study new flavours. Our customs of Korean cuisine are very my restaurants we use meat with no fermentation processes involve various social in nature,” he says. “We like to hormones or antibiotics, and use as kinds of vegetables. The Korean mother share food with both close friends and much local and organic produce as sauce, jang, comes in two types, ganjang new friends alike in a table setting. possible. Chemicals such as MSG, (liquid) and doenjang (paste), which are Whether it’s a tableside barbecue or the pesticides and preservatives, I believe, made from fermenting soybeans.” multitude of banchans [small dishes], are harmful to our bodies, so they have “We use jang for most Korean dishes Korean eating culture is all about eating no place in my kitchen.” at Mingles. I try to apply jang sauce to with other people. All over the world, Korean food is already pretty healthy. western cooking methods or to desserts these days, eating is becoming more and The Korean national dish kimchi is instead of using in regular Korean ways. more social rather than just sustenance, renowned for its superfood status, At the moment, I am developing desserts so that’s one of the reasons Korean thanks to the enzymes and nutrients with various fermented ingredients.” cuisine is attractive to many.” created in the fermentation process. The After working with Martín Berasategui At Danji, classic Korean dishes are dish can take many forms, with napa in San Sebastian, and at Nobu in the given a contemporary North American cabbage and spring onions, to cucumber Bahamas, Kang returned to Seoul with 86 87 twist with creations such as bulgogi and radish, but the key benefits are the a very international outlook on Korean beef sliders and kimchi poutine. You same. It’s low in calories, full of fibre, food. His signature dish of ravioli in can also call in for a K.F.C. (Korean and packed with vitamins, amino acids Korean anchovy broth takes inspiration fire chicken wings), but be firmly and antioxidants that are believed to from the xiaolongbao steamed buns found assured that you are eating D’Artagnan boost the immune system, promote in Chinese cuisine. “I always like to mix free-range organic chicken, and not digestion and reduce cholesterol. things up,” he says. “If the presentation

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rather looks like traditional Korean, visuality. Music videos and movies are The sensual richness of Korean I’d like to create flavours which are not very polished in Korea. Also, the way we popular culture is perfectly suited to a expected as Korean, and vice versa.” tell stories via music or movies is very world that thrives on constant stimulus. Mingoo recently cooked at a distinct in our culture, and it is fortunate And as long as Korean cuisine remains collaborative Korean dinner at the that style is catching on.” adaptable to all the many cultures that Gramercy Tavern in New York, an event embrace it, perhaps the more it will attended by Hooni Kim and many more evolve and surprise us. of NYC’s Korean cognoscenti. Such “I think both Mingoo and Jungsik gatherings are further testament to the have such distinct styles and visions of far-reaching appeal of Korean food, what Korean food means to them that which according to Kim is due to a rather than cooking Korean food, they growing global interest in Korean pop are cooking ‘their’ food,” says Kim. “I culture. “Thanks to K-pop music and cook more traditional Korean food than popular Korean movies and TV dramas, they do, but each dish on my menu has a I think Korea has now taken the lead creative flair or personal touch that makes in Asian entertainment,” he says. “I my traditional Korean food ‘personal’ remember 20 years ago, it was Chinese- also. I think every chef in any cuisine Hong Kong movies by Wong Kar Wai should approach cooking this way.” and Ang Lee that represented Asian The colourful story of Korean cuisine entertainment, but these days I see many has many chapters to go, but whether the more Korean movies in the cinemas.” setting is Seoul or New York, the leading “One of the reasons is because protagonists are equally captivating in Koreans put so much emphasis in their own way.

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Basquiat: Boom For Real The New York legend remembered

ean-Michel Basquiat is one of Basquiat’s work took on issues such for more than $110,000,000. This modern art’s biggest names, a as poverty, racism and the nature of exhibition in the Barbican showcases 88 89 man who revolutionised New the self, while he utilised everything more than 100 works from private York’s art scene in the 1980s. from drawing, painting, text and spray collections and museums. It features a HeJ worked with icons of the time such paint to express himself. In the years rare film of the man at work, archive as Blondie, Keith Haring and Andy since his death, his paintings have sold material and photography, and is a Warhol, and his star has only burned for tens of millions of dollars, and last must for any fans of his work. brighter since his death in 1987. year, one of his untitled works sold Barbican; barbican.org.uk

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Clockwise from top left: Various art works, photographs and screenings of Jean-Michel Basquiat’s work, spanning more than a decade. Artworks: © The Estate of Jean-Michel Basquiat. Licensed by Artestar

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Hit Refresh By Satya Nadella

here was an audible gasp and more after becoming CEO, I decided that we than a smattering of chuckles in needed to get Office everywhere, including the auditorium when I reached iOS and Android. We had these versions in into my suit jacket and pulled out the works for some time, just waiting for the Tan iPhone. No one in recent memory had right moment to launch. I wanted to declare, seen a Microsoft CEO showing off an Apple both internally and externally, that the product. Especially not at a competitor’s strategy would be to centre our innovation sales conference. “This is a pretty unique agenda around users’ needs and not simply iPhone,” I told attendees at Salesforce’s their device. We announced that we would annual marketing event as the crowd bring Office to iOS in March 2014, two quieted down. Salesforce both competes and months into my new role. partners with Microsoft in online services. “I Soon Apple sent a cryptic note to our like to call it the iPhone Pro because it’s got Office team asking for an engineer to sign all the Microsoft software and applications a nondisclosure agreement and come to on it.” On the giant screen behind me, a Cupertino for a meeting. This is standard close-up of the phone appeared. operating procedure in our One by one, the app icons “Seeing secretive industry where flashed into view – iPhone intellectual property must be versions of Microsoft classics me demo guarded. After a few meetings such as Outlook, Skype, Word, Microsoft it became clear that what Apple Excel and PowerPoint, as well wanted was for Microsoft to as newer mobile applications classics such work with them to optimise such as Dynamics, OneNote, as Outlook, Office 365 for their new iPad OneDrive and Sway. Word and Pro. Apple told us that they Seeing me demo Microsoft felt there was a new openness software on an iPhone designed Excel on an at Microsoft. They trusted us and built by Apple, one of iPhone was and wanted us to be a part of our toughest longest-standing their launch event. There was competitors, was surprising surprising and passionate debate internally and even refreshing. Microsoft refreshing” about whether this was a good versus Apple has been such idea. Some product-line leaders a prominent and even contentious rivalry within Microsoft about partnering with that people forget we’ve been building their competitor; I definitely heard some software for the Mac since 1982. Today one resistance behind closed doors. Partnering of my top priorities is to make sure that our is too often seen as a zero-sum game – billion customers, no matter which phone whatever is gained by one participant is or platform they use, have their needs met lost by another. I don’t see it that way. so that we continue to grow. To do that, When done right, partnering grows the pie sometimes we have to bury the hatchet with for everyone – for customers yes, but also old rivals, pursue surprising new partnerships for each of the partners. Ultimately the and revive long-standing relationships. Over consensus was that this partnership with 90 PB the years we’ve developed the maturity to Apple would help to ensure Office’s value become more obsessed with customer needs, was available to everyone, and Apple was From Hit Refresh by Satya thereby learning to exist and compete. committed to make its iOS really show Nadella © 2017. Reprinted A few years back Apple had a concept they off the great things Office can do, which courtesy of Harper, an imprint felt would benefit from a renewed partnership would further solidify Microsoft as the top of HarperCollins Publishers with our capabilities and culture. Shortly developer for Apple.

PF_112017.P90_Living_Column.indd 90 10/22/17 4:18 PM WHERE DREAMS LIVE AND EMOTIONS ARE BORN

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