Marinate the beef in one cup of the red wine, while you cook the bacon.
Heat a Dutch oven on low heat and cook the bacon until it's crispy. Remove the bacon.
Preheat the oven to 325 degrees.
Drain the beef and pat it dry. Season the cubes with a quarter teaspoon each of the salt and pepper. Dredge the beef in the flour and cook six pieces at a time in the bacon fat. Brown the meat on all sides, on medium heat. Add a tablespoon of olive oil, if the bacon grease gets absorbed. Remove the cooked meat to a plate.
When all the meat is browned, and removed to a plate, add the diced onion, carrots, garlic, bay leaf, and thyme. Cook for five minutes.
Add the beef and bacon back to the pot, along with a cup and a half of the red wine, the brandy, and the chicken stock. Bring it to a simmer, and then cover tightly and bake for two and a half hours, or until the meat is very tender.
Meanwhile, melt the butter in a large skillet. Cook the pearl onions for ten minutes on medium heat. Then add the mushrooms, and a half teaspoon of the salt and a quarter teaspoon on the pepper. Cook for thirty minutes or until the liquid has evaporated. Set aside until the beef is done.
Remove the beef from the oven, and add the mushrooms and pearl onions. Remove the bay leaf and serve.