The Rolling Stones

I have always these great books to read about the great depression and the American plutocracy but I would rather spend my Sunday night venting my spleen here.

I first got acqainted with the Rolling Stones in 1976, when I was 13 years old. It was at my late dad's 46th birthday party in Johannesburg. Route 66 blew me away - the raw aggressive energy and attitude. Ever since I have been a devout fan, and their music is always a reference point. For example Wild Horses when I was down and out in the last 70s and couldn't sleep always haunts me. In the last three decades they have produced some great adult-oriented rock, but gradually became too commercialised. KR falling out of his tree in Polynesia was perhaps an old man/bad boy stunt too far, but I still think they are a national treasure for us Brits...."

Here are my top twenty favourite Stones songs, and quite a lot of the great ones are omitted which doesn't mean I don't love them. I can't include "Sympathy" because it is sacriligous but the twin guitar solos on Get Yer Ya Ya's Out is one of their most inspired moments.

In reverse order:

20) Now Look What You Done (1965)
http://www.youtube.com/watch?v=AmKMvzHJWQ8
19) All Over Now (1965)
http://www.youtube.com/watch?v=m3YnRQOXLWo
18) Carol (1964), or live on GYYYO, 1970)
http://www.youtube.com/watch?v=EKbV6fuPWcw
17) Let's Spend the Night Together (1966)
http://www.youtube.com/watch?v=OqQ9FCVmPaI
16) Paint it Black (1967)
http://www.youtube.com/watch?v=Q9DDpmyPZZA
15) Midnight Rambler (1969, live on GYYYO)
http://www.youtube.com/watch?v=rGHNduAA_3c
14) Happy (1972) - Check this...classic M&K:
http://www.youtube.com/watch?v=VSyNUAzPofI
13) Bitch (1971) - all Keith on guitar
http://www.youtube.com/watch?v=TkxqIw17IC0
12) Sway (1971) - sublime guitar solo by Mick Taylorn at the end
http://www.youtube.com/watch?v=b4iQDfpFxW8
11) Stray Cat Blues (1968) - studio and live (GYYYO)
http://www.youtube.com/watch?v=R5frrDY9Tys
10) Miss You (1978) - an absolutely brilliant parodied song,  never tire of:
http://www.youtube.com/watch?v=59mopJYLaoc
9) If You Can't Rock Me (1974) - quintessential
http://www.youtube.com/watch?v=mH0eL08AAl4&feature=related
8) Fool to Cry (1976) - when  I'm sad and miss my daughter Josie it makes me think of her
http://www.youtube.com/watch?v=w6yHoWgHRnw
7) Sweet Virginia (1972) - a wonderfully chaotic and languid sing a long (best listened to whilst intoxicated)
http://www.youtube.com/watch?v=sa3uNiUCrp0
6) Can't You Hear Me Knocking? (1971) - the first two minutes are the RS at their very best
http://www.youtube.com/watch?v=3fa4HUiFJ6c
5) Wild Horses (1971) - so haunting and beautiful - see above
http://www.youtube.com/watch?v=UFLJFl7ws_0
4) Route 66 (1964) - see above
http://www.youtube.com/watch?v=Okv_4T5Ho3Q
3) Doo Doo Doo (Heartbreaker) (1973) - refer previous blog
http://www.youtube.com/watch?v=Acr5TriuQMw
2) Honky Tonk Women (1969) -
http://www.youtube.com/watch?v=CQnYBE-wekg
1) Gimme Shelter (1969) - this haunting song always inspires and moves me in my most melancholy moments. Sit back and enjoy this live Mick taylor virtuoso, it is inspired:
http://www.youtube.com/watch?v=btyhKUvAaZU

Anyway here's to the Stones the greatest rock'n'roll band of all time. Only the Beatles - the greatest pop band of all time-  had more great songs (Rolling Stone magasine concurs). How many great songs did LedZep and U2 have in comparison? A small fraction is the answer.

The best chardonnay in the - new - world?

When I first started drinking wines in the mid/late 1980s I cut my teeth on Aussie chardonnays, then as I discovered the concepts of finesse and balance I turned my attention to white burgundies. Those were the days long before "premox" arrived (approx. 1995). Winding forward to the late 1990s I remember a vertical tasting of the legendary Leeuwin Estate "Art Series" Chardonnay (from Margaret River, Western Australia), which were so ageworthy and impressive - especially the 1986 and 1987. Since the the estate lost its way, we (my friend) and I got sucked in to buying lots of the overoaked and not particularly ageworthy 1995. Leeuwins now are too alcoholic and too oak. Too fat.

I don't have much experience with Victorian chardonnays like Giaconda but Yattarna 'white grange' has never really done it for me. New Zealand? Neudorf and Kumeu mate's vineyard perhaps. South Africa? Rustenberg Five Soldiers is good but not that great and hamilton Russell is a meursault plaigarist, which falls short.

No; the best new world chardonnay is American. Cutting to the chase it is perhaps (apparently) between Marcassin (never tried), Kongsgaard (never tried) and Mark Aubert (tried thrice). The Auberts are impressive - the ones I have had from 2005 and 2007- Ritchie and Lauren - are exotic with a trademark cloudiness, but would probably win blind tastings with some of the best white burgs. But it is a colossal heavyweight tipping the scales at 15.3% alcohol.

My vote for the best new world chardonnay in the world is the one I drank tonight. It is Ceritas Porter Bass 2007. My notes:

Laser sharp and high-toned nose of sea shells exotic fruits citrus, marzipan, citrus and slate. On the palate it coats the mouth with exotic fruits, apples, figs and citrus zestiness, with hazelnuts. It has a long languid and delicious finish. It opens out beautifully. This wine has quite a bit of power but within a high-toned and immaculate frame. It becomes more and more complex with air. is this America's answer to Coche Dury? It would be interesting to try them side by side.

Finally I like Porter Bass because it sounds like "Parker Bowles"

http://www.youtube.com/watch?v=b22foyWvuUU

Taking a walk on the wild side with barolo and barbaresco

My good friend Jacques organised a dinner at Kittle House in Chappaqua New York State on 15th November with the theme of ‘barolo/barbaresco from the 20th century.’ The chef designed a special menu for us and it worked brilliantly.

Flight 1 (king salmon and mustard greens)

1971 Ceretto "Montefico" Barbaresco

You could tell this was healthy by the pure maroon translucent colour, and the nose and palate were even better; a nuanced wine with floral notes, cherry, tar and earth, a smooth mid palate and a lingering finish. Brilliant mature barbaresco *****

1971 Pio Cesare Barolo

Completely shot, replaced by…

1978 Pio Cesare Barolo Riserva

This was a bigger wine with a darker colour and had a delicatessen nose of cured meats and bacon and slight pruniness. It opened up well and was a solid wine with burly tannins, but not particularly elegant. Still, most enjoyable. ****

1974 Produttori del Barbaresco "Moccagatta" Barbaresco

The lack of any discernible nose on pouring suggested this might be flawed, but it settled down and began to open with hints of barnyard, tobacco and brett. Food absolutely transformed this wine which was otherwise tough to drink on its own. *** on its own **** with food.

Flight 2 (great duck breast, with farro, black radishes, cherry sauce)

1990 Aldo Conterno Barolo Bussia Soprana

Much younger colour, cherry with dollops of somewhat confected fruit, round and delicious – divided opinions between those who thought it needed more time and those who thought it had crested. I thought it was a delicious wine for quaffing but not profound; the 1996 is much better. ****

1979 Cappellano Barolo

Nice pure orangey colour and exciting nose of herbs, earth and citrus zest. On the palate it was lean but not thin, serious and structured, fine poise and equilibrium, long languid finish. A wine from the master. *****

1982 Ceretto "Bricco Rocche Brunate" Barolo

This had a cloudy brown colour but wasn’t flawed. Very extrovert nose and a lot going on with gamey/live animal nuances, it opened and improved. Excellent mature Barolo. *****

Flight 3 (Venison with coriander, with butternut squash puree, Brussels sprouts, and "huckleberry port jus")

1998 Giacosa Falletto Barbaresco

Low key sensuous and sexual, silky and diaphanous, this is slowly cranking up and will be a beauty in ten years. Wine of the flight. ***(**)

1998 Giacosa Barbaresco (normale)

Good ingredients but marred by Brett, which became increasingly hard to ignore and blighted the drinking experience. **(*)

1999 Giacosa "Santo Stefano" Barbaresco
This had quite a lot of VA which didn’t really blow off. Underneath is a profound wine – an iron fist in a velvet glove, which still won’t be ready to drink in 2020. **(***)

Flight 4 (short ribs with polenta and spinach)

1999 Bussia Soprana Barolo

The name of the grower was nowhere to be found – no mention of Conterno anywhere and the label was very different. Quite young and oaky, but will turn into a nice wine when it grows up. ***(*)

1996 Giuseppe Mascarello "Bricco" Barolo

This is a brooding wine showing very little right now, but will probably has a lot of potential. **(***?)

1997 Sandrone "Cannubi" Barolo

An overtly modern style; tasted blind it would be impossible to tell which country, which hemisphere, which grape; I would have guessed it is Ornellaia. Ostensibly very different from any other wine last night; ripe, slutty and low in acidity; silky and seamless; easy and fun to drink but not particularly cerebral. Not in the same league as the 1996. ***

As usual we voted for our top three wines, three points for our favourite, two for the second and one for our third. This was the result:

Ceretto Montefico 16
Cappellano 10
Giacosa Rabaja 4
Ceretto Bricco Rocche 3
Giacosa Santo Stefano 2

I think this voting was an accurate reflection of the relative merits of the wines. I could think of worse ways to sopend a Monday night, thanks to Jacques Levy and Dale Williams in particular, who's write up I used as a template for my notes.

Ten myths in the financial markets debunked

Myth #1: The Fed is not printing money

Perhaps this should come under the heading ‘lie’ rather than ‘myth.’ Retreating behind a fog of semantics – ‘quantitative easing’ (QE) and ‘large scale asset purchases’ - Fed Chairman Ben Bernanke, like his counterpart Mervyn King at the Bank of England, has denied that the QE essentially amounts to money printing, but he is being economical with the truth. In QE, the central bank purchases financial assets – usually government bonds - from the private sector by creating new money.  If the purchase is from a bank the central bank merely credits the reserve account of the bank in question. If it is from a non-bank the central bank credits the account of the seller’s bank, which in turn credits the deposit account of the seller. Money has been created out of nothing. It is an electronic transaction and while it is not physically printing bank notes, it amounts to the same thing.  Asset purchases from banks increase the monetary base, while asset purchases from non-banks increase both the monetary base and broad money. The most dangerous type of QE is that which appears directly linked to financing large budget deficits. The Bank of England’s ‘QE1’ took out a whole year’s gilt issuance and was associated with an apparently inexplicably high inflation rate for the last year and Mervyn King’s repeated assurances that this was a temporary phenomenon related to sterling and VAT began to ring hollow. The Fed’s QE2 is also effectively taking out the whole supply of bond issuance and is arguably a more dangerous iteration of QE1, which was as much about addressing dysfunction in individual markets (‘credit easing’) as pumping up the money supply.  When the central bank finances government borrowing, and the long run solvency of that government is in question (as it is in the US and the UK), then this is a very slippery slope. If the US economy does not respond to QE2, and if unemployment starts to rise again, the Fed will lobby for a ‘money financed tax cut’ – a terrifying proposition whereby the Fed will print money to finance a large tax cut – this is as close as you can get to a ‘helicopter drop.’

Myth#2: We are in a depression-like environment similar to the 1930s

While the ‘Great Recession’ of 2008/09 was the most severe in post-war times comparisons with the 1930s are a bad analogy propagated by discredited economists trying to peddle spurious books masquerading as academic research on depression economics. It is almost as disingenuous as comparing Saddam Hussein to Adolf Hitler. In the Great Depression US GDP fell by 27%, while in the Great Recession it fell by 4%.  Real GDP has recovered to with 1% of its previous peak, while nominal GDP is already 1.7% above its previous peak. It would be more accurate to say that we have emerged slowly from a balance sheet recession and that deleveraging of private and public balance sheets will remain a headwind for some time, while monetary policy remains extremely accommodative.

Myth#3: Deflation is a bigger threat than inflation

Policymakers and politicians alike are terrified of deflation and have over-stated the risks. Policymakers because they fear they may lose control of real interest rates and politicians because deflation effectively represents a tax cut, rather than a (stealth) tax increase (inflation). Deflation is often a wonderful thing, which empowers the consumer by boosting real incomes and hence boosts economic growth. For example the glut of fine wine on the market has driven down prices of some Bordeaux and burgundy. Do I wait for prices to fall further? Hell, no. The term ‘deflationary boom’ is not an oxymoron. It also rewards savers and those who have behaved responsibly, while it tends to hurt those who have behaved recklessly. A generation of US intervention has rewarded reckless lending and borrowing and has ratcheted up moral hazard after each and every bail out, raising the stakes even higher every time. The risks are very much skewed to inflation being the end game because the Fed does not acknowledge let alone recognize that it is the problem. The Fed is a myopic institution guilty of the worst kind of group think: it is focused on core inflation, the most backward of lagging indicators, and it now has a very low tolerance of even trend like growth given its mandate for maximum employment. It is totally oblivious to the unintended consequences of its actions. Core inflation today is a reflection of how bad the economy was two years ago. Meanwhile asset bubbles are emerging all over the place, commodity prices are on a tear and precious metals prices have almost gone vertical. Bernanke wants to get the inflation rate up by 1% point to 2% point by printing money – how’s he going to do that? That’s like trying to cook an egg with a blow torch.

Myth#4: Gold is a bubble

This is a myth propagated by those who never owned it or have tried to short it and had their arses handed to them. Usually these are people with a poor grasp of economic history, and who don’t understand the profound implications of the changing monetary landscape. Gold was a terrible investment in the 1980s and 1990s because central banks adopted ‘fight inflation first’ monetary policies with high real interest rates. Now they are fighting the phantom threat of deflation with negative real interest rates. In an environment of still high inflation and hence very high nominal interest rates gold was a cripplingly expensive asset to own. The credibility of inflation targeting regimes in the 1990s – more by accident and good luck than anything else – also did gold no favours. Then UK Chancellor of the Exchequer Gordon Brown sold 400 tons of gold almost at the lows, a howler which has cost the UK tax payer about $15bn (10 billion pounds).   The behavior of the gold price is a rational response to central bankers’ attempts to debase fiat money by printing ever greater quantities of it – and billion dollar bailouts have become trillion dollar bailouts – why not quadrillion dollar bailouts?  Arguably Volcker gave our fiat money a stay of execution in 1979, but maybe we could be getting close to the end game. When the fiat money panic happens it will just arrive out of the blue regardless of the macroeconomic backdrop. It will be analogous to a flock of birds: one flies off an dthen an instant later the whole flock follows. Gold generally hasn’t outperformed the rest of the commodity complex, but if and when it does this will set alarm bells ringing. As would official tirades against holding gold, or worse still outright bans on holding it.

Myth#5: The US Treasury market is not a bubble

Deflationists argue that treasuries are good value here, and if the US is going down the Japan route then they are. But the market is already pricing in a bleak scenario, arguably with 2-3% nominal growth that would hardly be acceptable in Washington. So policymakers would not just sit idly by and allow unemployment to rise – they would do something – and probably something pretty radical like a money financed tax cut discussed above. It is important to understand that while the Fed may not be able to boost real growth for long it can boost nominal growth and inflation. The UK’s experience with a more unadulterated QE than the Fed’s is that it tends to have a larger impact on inflation that real growth

Myth#6: The ECB is clueless

This is an accusation you here over this side of the pond in America, even in private from Fed insiders who argue that the ECB ‘just doesn’t get it.’ The reality is that it is not the ECB who are clueless it is their accusers…and in particular those ignoramuses who argue that the ECB should do more do boost growth in the euro area in general and in the periphery in particular. In fact the ECB has done an incredible job in managing the euro area business to cycle and meet its inflation mandate of ‘close to but slightly below 2%.’ Since the inception of the euro inflation has averaged 1.9%. The ECB has a single mandate – for inflation - and is hardly responsible for Europe’s fiscal and structural policy failings. In addition, the Fed and the ECB have an almost diametrically opposed view of the virtues of quantitative easing and an entirely different philosophical approach (reflecting their respective nemesis of depression/deflation and hyperinflation.) ECB policymakers are privately aghast at what they regard as US policymakers’ impatience, particularly because growth is rarely vigorous coming out of a balance sheet recession and there is nothing monetary policy can do about it. Excessive policy activism just creates uncertainty and instability. Moreover the ECB pins the blame for the recent recession on overly lax (US) monetary policy which fuelled credit booms and created asset bubbles followed by inevitable busts and deleveraging. Therefore further monetary policy activism will just stoke up more asset bubbles in the future. I must say I would agree with these sentiments. It is the Fed which is clueless not the ECB.

Myth#7: The euro is viable

The euro is unlikely to survive in its current form indefinitely because it was built on shaky foundations. Entry into the euro was determined by political, rather than economic, considerations; there was insufficient sustained nominal and real convergence, and there was insufficient ‘political union.’ Around the time of the euro’s launch many wise heads warned that the single currency would not be viable without political union, and the EC’s federalist ambitions really reached the high water mark in 1992 with the signing of the Maastricht Treaty, and have since receded.  Within EMU, countries have too much discretion over fiscal, structural and regulatory policies, and the enforcement mechanism – the stability and growth pact (SGP) – is toothless and lacks credibility – there was no political will to implement sanctions. There was too much focus on fiscal policy variables and not enough on structural issues. For example in the early EMU years Germany embarked on a Draconian cost cutting program to regain competitiveness while at the same time very low interest rates fuelled protracted housing booms in countries like Spain and Ireland, which led to destabilizing structural imbalances – external deficits and inflation. The response to the 2010 sovereign debt crisis has been multi-pronged: multi-lateral support package for Greece, introduction of the European Financial Stability Fund (EFSF), aggressive fiscal consolidation in the ‘PIGS’ and proposals to reform and strengthening of the SGP. These are all welcome steps but are unlikely to be sufficient. The proposals to strengthen the SGP are too woolly and vague, and there is absolutely no appetite for a US-style transfer union. Debt dynamics are very problematic for the PIGS because there is no devaluation safety valve in their currencies are overvalued (reflected in huge current account deficits and low FDI coverage). Aggressive fiscal tightening will additional crimp nominal GDP growth, the denominator of debt/GDP and nominal GDP growth rates are about flat. Greece is in a hopeless position: debt to GDP will stabilize at 150% at best, where it is estimated that Greece needs to run a primary surplus of at least 6% of GDP (only 3% planned, and Turkey had to run a 6% primary surplus for many years with much lower debt). Moreover Greece has no merchandise export base…imports are 3-4 times exports and so cannot support this level of debt. In 2012 Europe will have to choose between voluntary/involuntary debt restructuring or permanently large transfers to Greece (which will cause resentment). Given the dim prospects for political union/economic government the euro is unlikely to survive in its current form and the breakdown is likely to be very traumatic. We could end up with ‘euro-mark’ II a more stable currency comprised of northern European countries. The notion of a euro-mark for the north and ‘esperanto’ for the south is unlikely to be workable.

Myth#8: Property bubble will cause China to collapse

China has a frothy property market which the authorities are struggling to control with various measures. Is it a bubble that is about to burst with widespread systemic implications, which could cause China to implode? Hardly; this is just Anglo-Saxon wishful thinking. First of all the Chinese authorities have the resources to deal with the fall-out from the bursting of any ‘bubble’ – over $2.5 trillion of reserves and  a strong fiscal position – while the banking system is in good shape: loan to deposit ratio is under 70% and NPLs are just 1.2% compared to around 20% a decade ago. Moreover China is hardly unique in the region and arguably China is less afflicted than some other countries like India, Hong Kong and Singapore. Of course property bubbles are much more of a problem in the major cities than in aggregate; but it is worse in New Delhi, Hong Kong and Singapore than it is in Shanghai. At the aggregate level there is no bubble. In the last five years property prices Nationwide have risen by around 80% while disposable incomes have risen by around 65% - hardly a disastrous collapse in affordability. Moreover mortgage debt is very low (12% of household deposits), and the mortgage market has only been in existence for 12 years. Property has proven to be an attractive investment relative to equities and cash, and typically properties are acquired without being rented out. As elsewhere in the region the underlying reason is low/negative real interest rates, which are not going to disappear any time soon.  The key to understanding the China growth story is the relentless migration from the rural areas to the cities, which has much further to go. Just over 100 million have migrated in the last 20 years and there are 300 million more to go over the next 15 years. Given that urban workers produce 4-5 times as much as rural workers these relentless flow will keep trend growth elevated at least in the high single digits for the foreseeable future. Those focusing on the alleged property bubble really are barking up the wrong tree.

Myth#9: Property bubble will cause Australia to collapse

It is the same story in Australia where high house price income ratios have led to dire warnings of an imminent collapse in house prices with US-style implications for the Australian economy. As in China these Jeremiahs are missing the big picture and barking up the wrong tree. Whereas in China the most important growth driver is urbanization in Australia it is the semi-permanent increase in the terms-of-trade which isn’t going to reverse very much unless China collapses, which it isn’t. The terms-of-trade is a massive tail wine for the Australian economy. Even if the terms-of-trade stays where it is it will provide a big tailwind for many years to come. As a result household income growth is running at an annual rate of about 8% and property prices have falt-lined for about a year now. The RBA will be happy if CPI inflation averages 3.5% over the next 10 years, and the AUD will probably reach $1.20 a year from now, but as always run a trailing stop given that the Aussie banks are highly dependent on foreign funding (which will dry up in extreme risk aversion).

Myth#10: Hungary is a basket case

When it comes to lazy analysis Hungary has to take the cake. Perhaps influenced by ‘loose cannon’ remarks by Hungarian officials some so called analysts continue to treat Hungary as a Greek-style basket case including the ratings agencies. If they had bothered to look at the data they would have seen that Hungary has had a nearly 10% of GDP fiscal adjustment, taking the cyclically adjusted primary balance from -7% to +2.5% over the last four years, and its current account has moved from a 7% of GDP deficit to a 1% of GDP surplus. Greece could only dream of doing this. The Greeks don’t produce anything, whereas the Hungarians have a high powered dynamic FDI-driven, super-competitive export sector; e.g. Audi engine plants using workers who are nearly as productive as their German counterparts for a fraction of the wages. In essence markets are assuming that Hungary quickly reverts to its old habits under Fidesz…like the fat guy who loses 100 pounds then puts it straight back on again. Hungarian PM Orban is not interested in frittering away the hard won fiscal consolidation achieved by his opponents. And when the chips are down the Hungarians are more like the Latvians than the Greeks. The Latvians who have been occupied by a hostile power in most of their history accepted 35% wage cuts. The Soviet invasion of Hungary in 1956 has not been forgotten and the Hungarians are hardy souls who know how to hunker down in a crisis. While the future for the PIGs in the e-z is bleak, the prognosis for Hungary is extremely bright.

Ordering off the list at Kittle House Chappaqua

Our company had its third anniversary celebration dinner to celebrate the fact that it had survived three years of financial market turbulence, so we booked the private room downstairs at Kittle House (Bill Clinton's local) next to the 60k wine (10-15m dollar) wine cellar (sort of like a boy's own - everything you could have if money were no object with the flagship between a Methuselah of 1988 DRC Romanee Conti (one of four signed in pencil by AdV, value $100k). Every time I have been to KH it has been BYO, so for the first time we ordered off the list (6k wines). And a good list it is too with quite a few 'bargains' (some even have -ve mark-ups relative to market value). I chose the French wines and my two colleagues chose the American ones, while the other five chatted amongst themselves.

I chose Jean-Noel Gagnard Chassagne Montrachet Les Caillerets 1993, listed for a modest $85. I chose it because it is pre-pox and I think 1993 is an under-rated vintage. My colleague chose a Hanzell Sebella Chardonnay 2007 (I didn’t see what it cost). The JNG was all over the place initially - a rude awakening - and had plenty of VA and frankly tasted a bit tired - it had a good clear colour, however. The Hanzell was lighter but more viscous, concentrated and powerful, with impressive mineral, pear drop and peach stone aromas, with the power of a drag racer. When my colleague dismissed the JNG as being badly oxidised I protested and then a funny thing happened. The JNG started to come to life, the VA blew off and it became a delightful, vibrant, complex and fully mature wine, in a perfect place. The Hanzell meanwhile became hard work after the first few sips. It was a bit unbalanced and lacked sufficient acidic backbone to counter the brute force of the wood and sweet fruit.

On the list was some Dujac Morey Saint Denis. I love, but can rarely, afford Dujac. I nearly chose the straight 1997 for $100 (they also had the 1998 and 1997 at the same price but 1997 red burgs are in a good place right now) but chose instead the 1998 MSD 1er Cru for $145. Ethereal red burgundy nose soared from the glass, notes of rotted garbage/cabbage, minerals, iron, smoke and undergrowth. On the palate light-medium bodied, diaphanous strawberry notes. Delicious finish, gorgeous wine.

Then we had two clarets I was keen to try: Leoville Barton 2001 ($125) and Ducru Beaucalliou 2002 ($100). It is often a bit of a come down drinking claret after an ethereal red burgundy, but right out of the gate these two wines were special. Classy. The Barton had a very complex nose of graphite, leather, earth, clay and berries. The palate was silky smooth, the tannins were very much in evidence but they were smooth and polished. This wine had an austerity which lent it authority and gravitas. A very pure, fine and classic wine. The Ducru had an even more alluring nose, and a silky, seamless palate, with even more refined and less obtrusive tannins. It had a purple rim but this was drinking beautifully; it was like a silk scarf and so much better to drink now than the 03. But matched against the Barton it played second fiddle. The Ducru was too forward – not something one associates with this estate – and had less stuffing and substance than the Barton. It was a tad too easy for my liking. If these two wines were a first date, the Ducru would remove her under garments without your requesting, while the Barton would play a little bit harder to get.

The last two wines I frankly didn’t care for. The first was an Araujo Eisele Vineyard Syrah (didn’t see the vintage or the price). It was very thick, brooding and powerful, staining the side of the glass…I could see that this might be worth revisiting in ten years but it gave very little pleasure now. The second one was even more pointless. It was a 2000 Turley Petit Syrah Rattlesnake Ridge ($140), and it was also glass stainingly viscous. It was as nasty as the name suggested; it had lashings of alcohol and white pepper but that was about it. I only drank it to be polite, while my colleagues were raving about it.

Wine of the night? Chateau Leoville Barton 2001. Buy it. I did. You won't regret it.

Grand Cru red burg eclipses Bordeaux first growths at the Ledbury, October 27

My friend Jeremy kindly arranged dinner with a few of my London-based financial market friends at the now famous Ledbury restaurant in Notting Hill, recently voted London's best restaurant - the food was perfectly complementary to the wines and discreetly 'played a blinder'

With canapés...

Krug Grand Cuvee NV

This had been stored for 15 years (by the tumble drier? Next to the boiler?) and despite an alluring yeasty brioche and marmite nose tasted a bit tired and flaccid. Shame **

With roast scallops, broccoli, natural yoghurt, Falmouth Bay prawns cooked in vadouvan

Molitor Haus Klosterberg Zeltinger Sonnenuhr Spatlese 1997

I couldn’t pronounce this so I referred to it as ‘molitov cocktail’ – nose of dirty diesel, but wonderfully soufflé-light, elegant and lifted on the palate, frizzy, lemon meringue. Levitating. Marvellous *****

Joseph Drouhin Beaune Clos De Mouches (blanc) 2005

Tasted clumsy in comparison, thick and viscous with good purity, some pinot gris added in to lend some finesse, a youngster...should be marvellous when (if) it grows up ***(**)

With roast sea bass with cepes, oxtail and rosemary

Nicolas Potel Clos De la Roche 1997

Captivating earthy nose with infused cherries on the palate and a fabulous texture and intensity, with poise and a long finish; moving into its second/tertiary phase. Red burgundy at its best and my wotn ecplising a strong line up from the Gironde estuary *****(*)

With loin and shoulder of lamb with Jerusalem artichokes, winter savory and sunflower seeds

Chateau Haut Brion 1997

Trademark earthiness/scorched earth but not at all extroverted, opaque at the centre, maroon at the rim, medium bodied on the palate and a cool satisfying finish; such class in a glass ... drink this while waiting for your 98s to mature ****(*)

Chateau Mouton Rothschild 1993

This one had a somewhat controversial label. A more attenuated nose of tobacco leather and berries, on the palate somewhat more austere and angular; some would complain that this is too lean; I would disagree and think it has fabulous class and breeding – also purple-rimmed suggesting still youthful; cool languid and classy like the HB ****(*)

Pichon Lalande 1989

A perfectly stored bottle, this too tasted young and on the upslope. More generous and fatter on the mid palate than the first growths, it began to open but only slowly, and had quite a pronounced green/asparagus note on the finish which will not be to everyone’s liking. I like this wine a lot but on the night I preferred the two FGs ****(*)

With brown sugar tart with muscat grapes and stem ginger ice cream

Justino Henrique Verdelho Madiera 1954

Silty brown – brown sugar, figs, raisins, nutty &tangy, bonfire and Christmas cake...quite a treat...not tasted anything quite like it, went down a treat with dessert ****?

Bordeaux from the 1970s

These are tasting notes from an event we held in Fabio Piccolo Fiore, New York City on October 17th

Flight one
La Lagune 1970 – fully mature,complex perfumed nose, smooth, languid, immensely satisfying, mellow, unobtrusive *****+
La Lagune 1978 – similar even more attenuated perfumed nose, slightly leaner and tauter on the palate, some cherries *****
Giscours 1970 – dumb initially this opened up beautifully, fabulous berried margaux fruit, full bodied – fantastic!******
Giscours 1975 – burly and tannic still some berry fruit lingering very enjoyable ***
A very strong flight to start. My wotf was the 70 Giscours. Likewise the group’s.

Flight two
Canon 1971 – shy and restrained but just beautiful wine caressing and sensusous *****
Figeac 1975 - corked
Trotanoy 1978 – By comparison, extrovert and sexy without being pornographic, lush plummy and exotic ******
Pavie 1979 – fabulously stinky lavatorial nose, all over the place but such a lot of fun to drink. Lively. ***
Trot was wotf for both myself and the group – this flight was brilliant fun even though I nearly cried when we found the Figeac was corked

Flight three
Pichon Lalande 1957 – Mark took the wrong bottle out - he meant to take the 1970 - the table generlly liked what for most of us was our first 57. Fresh and quite youthful, but also dull and unexciting. Behind its flightmates. ***
Pichon Lalande 1978 – this was an interesting an even contest with the 79. Last night it took its time to open…it has a bit more weight the 79 but otherwise v similar. *****
Pichon Lalande 1979 – slightly sharper and leaner like the 78 herby and complex. Both are a delight. *****
Evenly split – the group had the 57 5/4/4…for me the 78 shaded the 79 but both are fabulous

Flight four
Palmer 1970 – this never really got going, nothing overtly wrong with it, perhaps not well stored…it was lethargic but with some telltale Palmer aromatics ***
Palmer 1975 – a little bit tauter with a stern tannic framework this was very good, dark fruits, not elegant. We drank this flight without food and it was tough. ****
Palmer 1978 – Fantastic Palmer, young vibrant, complex; incredibly youthful. Many people’s wotn. ******
Palmer 1979 – in my opinion every bit as good as the 1978, very bright lively and youthful ******
Group winner was 1978, I had 78 and 79 tied

Flight five
Mouton 1975 – not a great bottle inside or out, it was all over the place. I have had a lot better 75 Moutons, stinky with a lot of brett and VA *
Latour 1975 – structured and tannic, nothing wrong with it but the fruit is buried somewhere ***
Latour 1979 – had an odd curried nose to it, otherwise fairly austere and lacking in fruit **
First growths but the weakest flight so far

Flight six
Haut Brion 1978 – pushes the envelope of funkiness, scorched earth, a great pleasure, a great bottle – I can still taste it now ******
Domaine de Chevalier 1978 – also classic graves, and only a head behind the HB *****
La Tour Haut Brion 1979 – a very solid wine, just lacking a bit of zest compared to the other two but very Graves-y ****

Flight seven
Montrose 1970 – a brute, tannic burly, barnyardy, rustic **
Montrose 1978 – more fruit, balance and a nice horsiness to this ***
Grand Puy Lacoste 1970 – this was on its last legs *

Flight eight
Yquem 1970 – a very great wine by any standards, thick and viscous with ethereal tangerine fruit ******
Filhot 1970 – pleasant enough but shows why Yquem is so revered ***
Gilette Crème De Tete 1978 – what a treat to finish off! Not as lush or as sweet as Yquem but really unique funky and pleasurable *****

When wines are this old you only have great bottles – my favourite wines last night were Yquem, Giscours 70, the two La Lagunes, the Trotanoy, 78 and 79 Palmer and the Haut Brion. Truly great bottles.

For the groupt the 1978 Palmer was WOTN, with '57 Pichon Lalande and 78 Haut Brion in close fight for second, followed by '78 Trot and 70 Giscours. Both La Lagunes, the Canon, Pavie, 78 Pichon Lalande, all Palmers, DDC, LTHB, and 78 Montrose got at least one vote.