Auction houses in China are pushing further into the Modern and Impressionist Markets, the South China Morning Post reports, part of an attempt at beating a sales slump that has plagued the market in recent months.  “Selling Impressionist and modern art will be great business for us, as the artworks are traditionally very highly priced,” says Hu Yanyan, president of China Guardian Auctions and China Guardian (HK) Auctions. (more…)

A recent 13D filing from Mark McGwire’s Marcato Capital in the past week states that the hedge fund now holds stocks in three Sotheby’s funds amounting to about 9.5%, equivalent to Daniel Loeb’s Third Point, and requests that the company release previously withheld information around the company’s recent dealings.  “The redacted material goes to the very heart of the parties’ dispute in this litigation – the conduct and competence of Sotheby’s board of directors in adopting a poison pill,” Marcato states in its filing. (more…)

As Sotheby’s prepares a new round of auctions in the upcoming weeks, the company has announced a series of increases in its sales percentages.  Buyers at upcoming auctions will now pay 25 percent on the first $200,000 of a work’s hammer price, 20 percent on the value between $200,000 and $3 million, and 12 percent on any amount remaining above $3 million, up from the previous upper threshold of $2 million.  “This will improve Sotheby’s revenue, strengthen the company’s profit margins,” says current CEO Bill Ruprecht. (more…)

The New York Times notes the increased willingness by auction houses to guarantee sales on their highest price lots, a practice that had fallen out of practice since the financial crisis of 2008.  But some critics note that the growing practice is actually a result of stiff competition and minuscule profit margins.  “They are trying to fix eroding margins by getting more of the upside from the guarantee,” said Michael Plummer, a partner at Artvest.

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The LA Times reviews the departure of both Christie’s and Sotheby’s CEO’s this year, and investigating the motivations behind each’s departure.  “I think it makes dramatic copy to characterize boardroom confrontations,” says William Ruprecht, the soon to depart Sotheby’s head.  “The fact is, the board and I have had extremely civilized conversations. Dan has been respectful to me and only respectful. It has been an orderly and thoughtful process.” (more…)

The New York Times profiles the increased efforts by Christie’s to build its online sales platform, including a new focus on online only auctions.  “The main objective here is the acquisition of new clients,” said Steven P. Murphy, Christie’s Chief Executive. “We’re building our online business the old-fashioned way, brick by brick.” (more…)

A Bloomberg article investigates the lack of transparency in online auctions. The impetus for the report is a recent Paddle8 online auction, which featured 20 works of money-themed art, including a piece by Andy Warhol. After the auction was over and  65 percent of the lots were left unsold, Paddle8 pulled the estimates and bids from the website, opening up the possibility to put the artworks into another auction with no record of their failure to sell. This opacity has become common as more websites and auction houses engage in online auctions, a possible indication that these progressive methods are less than successful. (more…)

Art Basel Hong Kong Director Magnus Renfrew is reportedly leaving his post with the growing art fair to join Bonhams Auction House in the role of deputy chairman, Asia and director of fine arts, Asia.  “Renfrew will be responsible for defining the strategy for Bonhams in Asia relating to the fine arts and will oversee the established departments of classical, Modern and contemporary art in Asia,” Bonhams stated in a press release. (more…)

As Sotheby’s and Christie’s prepare for the upcoming sales in London this week, the Financial Times has published a profile on the two houses, tracing their competitive rivalry for market dominance, and their divergent tactics regarding private sales, online auctions, and increasing buyers premiums.  Says Sotheby’s President Bill Ruprecht: “We are betting our future on the fact that wealth will continue to be created and there will continue to be an economic elite, and that works of art will be relevant to them all over the world.” (more…)

Christie’s has been granted a license to operate without government oversight in mainland China, becoming the first independent auction house in the country.  The agreement comes in the wake of a reported dip in auction sales for the country last year, and some suspect the move comes as a way to introduce higher standards of authentication to the proceedings of auctions in mainland China.  “In recent years we have seen phenomenal developments take place in the global art market, particularly in China, where the market has grown at an unprecedented rate,” said Christie’s CEO Steven P. Murphy. “Today’s announcement further solidifies Christie’s position and commitment in a market which possesses a strong heritage and deep appreciation of art.” (more…)

TEFAF is currently in talks with Sotheby’s and Beijing GeHua Group (China’s state-owned development company) over a new art fair in China.  “TEFAF Beijing 2014” would place a new edition of the world’s largest art and antiques fair  in the world’s second-largest art market.  “We feel now is the time to further develop our presence in China, one of the most important art markets,” said TEFAF Executive Ben Janssens. “Tefaf is committed to contributing to the further growth of the market for European art in China.” (more…)

Following a turbulent year of art sales and auctions, which saw a 7% reduction in worldwide sales, the United States is once again the leader for art sales globally, according to art economist Claire McAndrew.  Presenting her findings this week at TEFAF Maastricht, McAndrew underlined the current instability of the global economy, and the resultant reliance on safe art investments and blue chip artists. (more…)

Pablo Picasso’s much-loved painting, Child with Dove (1901), is likely to leave the UK for good this year.  The work recently changed hands, and the anonymous new owner is free to take the work abroad once its current loan ends in May.  “With arts cuts the way they are, it’s going to be increasingly difficult. (The Picasso) is, of course, a catastrophic loss. (But) it’s about being realistic: work is going to leave.”  Said Alan Yentob, creative director at the BBC. (more…)

Attentive curators for the Metropolitan Museum of Art made quite a find at this past January’s Old Masters Week auctions, buying an authentic sketch by Jacques-Louis David for $840.  The drawing, closely resembling David’s The Death of Socrates, was attributed to an anonymous artist, but the hawk-eyed curators took notice immediately.  “The drawing style is typical of David. It was obvious we had to have it.”  Said Met drawings curator George Goldner. (more…)

Following in the wake of Christie’s premium increases last week, Sotheby’s auction house has announced that it will increase its buyer’s premiums to 25 percent for the first $100,000 spent; 20 percent for $100,000 to $1.9 million and 12 percent on all exceeding prices.  The increase makes Christie’s a less expensive shopping option, and comes days after the news that Sotheby’s sales incomes have declined since last year. (more…)

26 Years after his death, the art market for American painter Jean-Michel Basquiat is at an all-time high, with the artist’s works totaling over $161 million in sales last year.  According to online art database ArtNet’s index generation system, his remarkable growth puts him in the top 10 artists by volume sold in 2012, and gives his work a sell through rate of 85%. (more…)

Christie’s announced this week that it will be increasing its buyer’s premium for the first time since 2008.  The increase changes the percentages and value cutoffs for each premium amount to 25% for the first $75,000, 20% on any sale between $75,001 and $1.5 million, and 12% for any sale over that amount.  There has been no response in price increases from the other auction houses, but a spokesman for Sotheby’s was quoted as saying the company was: “studying the matter and haven’t taken any decisions.” (more…)

China is currently considering legislation that would guarantee artists royalty payments anytime their art is resold at auction.  These rights to a percentage of an artist’s resale price, referred to as “droit de suite” rights, are part of a new copyright law proposal that would bring China closer to European copyright standards, and is already causing fierce debate in the Chinese art market.  “Droit de suite may stifle the development of the market,” wrote Ji Tao, an auction industry expert at China Culture Daily, but: “From the point of view of the artists and authors, droit de suite is a good thing, because every transaction means gains.” (more…)

Total sales at China’s largest auctions houses more than halved last year, showing major instability in what was by some reports the world’s largest art market.  The slowdown in sales may not augur well for the global market, which has looked to China to mask reduced buying in the Western hemisphere.  “Certain factors, including political uncertainty, did see buyers press the pause button.” says Steven Murphy, the chief executive of Christie’s.  (more…)

While fine arts auctions in New York State generate total sales of $8 billion annually, many dealers and market analysts are calling foul on auction practices intended to drive up the price of works with little to no supervision of the market.  “The art world feels like the private equity market of the ’80s and the hedge funds of the ’90s,” says James R. Hedges IV, a New York collector and financier. “It’s got practically no oversight or regulation.”

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Phillips, formerly known as Phillips de Pury & Co., having announced the departure of chairman Simon de Pury, and the subsequent reversion to its original name prepares to expand its London and New York operations.  “We’ll be making some dramatic changes that will increase our visibility.” Said chief executive officer Michael McGinnis. (more…)

The Francis Bacon triptych Three Studies for a Self-Portrait is expected to sell for $24 million at auction next month.  The work will join paintings by Gerhard Richter and Jean-Michel Basquiat in a 56-lot auction by Sotheby’s with a minimum valuation of $101 million, based on hammer prices. (more…)