>>> Weekend Papers Summary

Weekend Papers Summary

FINANCIAL TIMES
-American employers created 150,000 new jobs last month — fewer than forecast and barely half of September’s revised figure of 297,000. Many economists had expected a total of 180,000 new posts for October. The numbers helped boost stocks as well as US Treasuries, as investors bet that the slowdown in the labor market made it more likely that the Federal Reserve will not raise rates further in the coming months.
-Flatbread loaves have become a critical commodity in Gaza, where almost everyone is facing hunger after a month of siege. The bakery must cater for thousands of displaced people from northern Gaza and former customers of other bakeries forced to close by war, even as its own staff contend with the devastation around them.
-Hezbollah leader Hasan Nasrallah gave a fiery speech, threatening and criticizing both Israel and the US. But, he fell short of declaring all-out war. Hezbollah has been conspicuously silent since the war began. Lebanese officials familiar with Hezbollah’s thinking told the FT that his group had come under intense diplomatic pressure to keep its response proportional to avoid a spillover conflict. They said Nasrallah “understood” that Lebanon was in no position to withstand a war, and was not interested in an aggressive escalation.
-Andrew Charlton, a former Qantas executive and managing director of consultancy Aviation Advocacy, said Australians used to be proud of Qantas. “If you take that loyalty for granted?.?.?.?that starts to chip away. The seemingly ceaseless scandals and service lapses mean that now, Qantas has even lost Australia,” said Charlton.
-Russia launched dozens of aerial attacks at targets across Ukraine, amid growing concerns in Kiev that western support could dry up. Ukrainian officials said the strikes included 40 drones as well as missiles that targeted 10 regions, including the city of Lviv near the Polish border, which had not been hit since September. More than half of the drones were shot down, said President Volodymyr Zelensky.
-Central banks’ interest rate policy may have shifted toward a freeze or even cuts. The ECB has chosen a freeze, as have the US Federal Reserve, the Bank of Canada, and the Bank of England, joining central banks in countries ranging from Czech Republic to New Zealand. Central banks in some emerging markets including Brazil and Poland are engaged in outright cuts. The halt in the rate-rising cycle has prompted optimism among bond market investors that leading economies are close to vanquishing the inflationary upsurge.
-The Chinese communist Party has banned officials from pouring their savings into domestic Chinese private equity funds, according to state media this week. The ban officially aims to tackle the myriad corruption risks that accompany cadres indirectly taking shares in companies.
-Despite the rush of patriotism in Israel following the October 7 attacks, even those on the right are furious with Prime Minister Netanyahu. The anger is palpable in the narrow lanes of Machane Yehuda, a big covered market in downtown Jerusalem that has long been a Likud stronghold: bibi is finished.
-Giorgia Meloni’s government has proposed constitutional changes to allow for the direct election of Italy’s prime minister in order to strengthening the office of Prime Minister’s role and ensuring that future coalitions last longer.
“We have done what we pledged to do, giving Italy the historic opportunity of a simple revolution,” Meloni said in a press conference, calling her proposal “the mother of all the reforms”.
-AP Moller-Maersk plans to axe at least 10,000 jobs as the container shipping industry’s pandemic-driven boom gives way to weaker demand during the economic downturn.
-Republican lawmakers’ election of Mike Johnson as speaker of the US House of Representatives will drive the Party further away from Democrats on the issue of climate change, deepening divisions that are likely to be among the most prominent of the 2024 election.

NEW YORK TIMES
-Israeli Prime Minister Netanyahu appears to rebuff Blinken’s request for ‘humanitarian pauses.’After a meeting with Secretary of State Antony Blinken, Prime Minister Benjamin Netanyahu said any cease-fire would hinge on the release of hostages. 
-In a worldwide war of words, Russia, China and Iran Back Hamas. Officials and researchers say the deluge of online propaganda and disinformation is larger than anything seen before.
-Israel used 2,000 pound bombs during an airstrike in a dense area north of Gaza City, a Times analysis shows.
-Hamas put wounded fighters on departure lists, delaying efforts to evacuate foreigners, a US official said.
-Trump has been temporarily released from a gag order. A panel of a federal appeals court lifted the order for at least two weeks, freeing Donald Trump to say what he wants about prosecutors and witnesses. 
-Donald Trump’s lawyers repeatedly criticized a judge’s clerk, overshadowing Eric Trump’s testimony.
-Donald Trump used misleading and recycled claims to talk about energy and jobs at a Houston rally.
-Jurors in Trump defamation trial to go unnamed for their own protection. A judge in the case filed by the writer E. Jean Carroll said that Donald Trump had not abided by gag orders in other cases, and that could lead to harassment.
-Shootings in Maine: President Biden has traveled a grim path through American communities grieving in the wake of mass shootings. On Friday, he added another to the list.
-Libraries across Europe appear to be facing attacks from cybercriminals. At Britain’s national library, an “incident” is sending scholars back to an analog age.
-China and Australia are trying to reconcile. Both sides have been cautious in the run-up to Prime Minister Anthony Albanese’s trip to Beijing, avoiding terms like “reset” in favor of “stabilization.”

NY POST
-Mark Zuckerberg suffered a torn ACL while training for an upcoming mixed martial arts competition, revealing Friday he’s undergone surgery and is on the road to recovery. “Tore my ACL sparring and just got out of surgery to replace it,” the Meta CEO shared on Instagram, along with a slew of photos from his hospital bed. “Grateful for the doctors and team taking care of me. I was training for a competitive MMA fight early next year, but now that’s delayed a bit.
-Attempts by Hamas to smuggle wounded terrorists out of the Palestinian territory have delayed ongoing efforts to get foreign nationals, including Americans, out of the Gaza Strip, the Biden administration revealed on Friday. 
“Hamas was not allowing anybody to leave,” a senior Biden administration official said during a call with reporters. “And then they said that they would allow foreign nationals to leave, subject to a number of wounded Palestinians being allowed to leave, as well, which of course is not objectionable.
-Elon Musk teased the release of his artificial intelligence startup xAI’s first tool on Friday. Musk, who has expressed concern about AI in the past, revealed that his firm will “release its first AI to a select group” beginning Saturday. “In some important respects, it is the best that currently exists,” Musk said without elaborating on who would test the tool or its purported capabilities.
Laurent Chekroun​
Equity Sales
Makor Securities London Ltd. | Makor Group
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CoinCodex : Toncoin (TON) Blockchain Breaks Record for World’s Fastest Network,

Toncoin (TON) Blockchain Breaks Record for World’s Fastest Network, Beating Solana, Polygon, Visa, and MasterCard

Key highlights:

  • TON has set a new record as the world’s fastest network accredited by blockchain security firm Certik
  • TON surpasses renowned blockchains and payment systems including Solana, Polygon, Visa, and MasterCard with 104,715 transactions per second
  • TON is trading at $ 2.24, halfway to its all-time high of $ 4.91 from December 2021
Telegram Open Network (TON) has become the buzz of the blockchain space a few hours after it achieved a new world record for the fastest blockchain with most TPS.
Following this event, TON had taken to Twitter to announce its new title as the "Fastest Blockchain in the World".

TON Achieves 104,715 TPS During GWR Public Performance Test

TON has joined the list of prominent networks in the blockchain landscape. The network has achieved remarkable success in its attempt to set a new world record for transaction speed.
On October 31st, the network embarked on a public test where it processed about 42 million transactions at an unimaginable speed of 104,715 transactions per second (TPS).
With this significant achievement, TON has outperformed leading and popular blockchains like Bitcoin, Ethereum, Solana, and many others. As such, the blockchain has emerged as the fastest and most scalable network among them all, successfully holding its own against other low-cost and efficient crypto networks.


WWD : As M&A Activity in Italy’s Supply Chain Continues, Eurmoda Group Buys Macu

As M&A Activity in Italy’s Supply Chain Continues, Eurmoda Group Buys Macuz

A leader in the country in the production and supply of accessories for high-end fashion brands, Eurmoda has acquired 100 percent of Macuz, a storied Florentine company active in the production of top-quality metal accessories.

MILAN – The wave of consolidation in Italy’s supply chain continues.

Eurmoda Group, which produces and supplies accessories for high-end fashion brands, has acquired 100 percent of Macuz Srl, a storied Florentine company active in the production of top-quality metal accessories.

Through this acquisition, Eurmoda aims to reach sales of 100 million euros in two years. It currently reports sales of 50 million euros, while Macuz has revenues of between 25 and 30 million euros.

Established in Italy’s Veneto region in 1986, Eurmoda was founded with the aim to synergistically combine the expertise of companies producing high fashion accessories with mechanical and technological skills derived from eyewear in the Belluno district and goldsmithing in the Vicenza district.

In October 2019, private equity firm Mindful Capital Partners took control of Eurmoda, creating the holding company Margot SpA, with the aim to build a platform of excellence in the sector throughout Italy.

Since then, the company has acquired Alce Srl in Valsamoggia, near Bologna, and ABC Morini Srl in Scandicci, near Florence.

In January, the holding company of Margot and ABC Morini will merge into Eurmoda.

“Macuz represents one of the best expressions of Italian know-how in the field of fashion excellence,” said Marco Vecellio, chief executive officer of Eurmoda. “A reality that has been one of the pioneers in the development of Italy’s manufacturing sector in the luxury industry. We are really happy to be able to combine our skills, reinforcing a leadership based on uncompromising quality and a solid entrepreneurial culture based on sustainability and enhancement of the territory.”

Founded in Florence in 1952 by Marcello and Alma Macuz, Macuz is recognized for its high-quality craftsmanship and connection to the territory and will allow Eurmoda to expand its customer base and further strengthen its technologies, skills and plants through a vertical service and a fully integrated supply chain. The Macuz family will reinvest in the group and remain actively involved in the operational management of the companies.

“[CEO] Auro Macuz’s talent and entrepreneurial foresight have made the company a true jewel in its sector in Italy, with a history of growth that has lasted more than 70 years,” said Andrea Tuccio, managing partner of Mindful Capital Partners. “The quality of its products, recognized by the biggest international fashion houses, is the result of a corporate culture constantly striving for excellence in all components of the value chain, in which people, their passion and skills, occupy a central place. We are really proud to have accompanied Eurmoda in this operation, creating a group capable of playing a leading role for Made in Italy in a fast-growing market.”

The production hub will continue to grow, “investing in people, focusing in particular on female participation at all seniority levels, and on sustainability, for instance through the use of continuous recycling systems, photovoltaic panels, and solutions for air purification and heat recovery,” said Eurmoda and Mindful Capital Partners in a joint statement.


“I am sure that the coming together of Eurmoda’s and MCP’s expertise will ensure the continuation of a sustainable growth path that has never stopped, and that has led us to become one of the most appreciated players in the world of accessories for high fashion brands,” said Auro Macuz.

Small and medium-size companies make up the majority of Italy’s 62,000 fashion firms, according to Confindustria Moda. They form the backbone of Made in Italy production, a supply chain that works with the best luxury brands in the world. Entrepreneurs have realized it has become essential to protect this pipeline, which is expected to drive more consolidation, more M&A activity, more nuanced partnerships and more efforts to map out common goals.

For example, in 2021, the Ermenegildo Zegna Group and Prada Group joined forces to acquire a majority stake in Filati Biagioli Modesto SpA, which specializes in cashmere and precious yarn production. In June, the companies teamed up again, buying a 15 percent stake each in knitwear and fine yarns specialist Luigi Fedeli e Figlio Srl. Both Zegna and Prada have over the years invested in building their pipelines and supply chains, as well as their own manufacturing plants in Italy.


In May, in the first such deal for Chanel and Brunello Cucinelli, the companies partnered on an acquisition of a 24.5 percent stake each in Italian cashmere manufacturer Cariaggi Lanificio SpA. This was a development in a deal that was signed last year by Cariaggi and Cucinelli, the latter’s first such merger and acquisition. At that time, Cucinelli revealed he was buying a 43 percent stake in Cariaggi, his longtime cashmere supplier. While Chanel over the years has bought stakes in 40 suppliers, 15 of which are based in Italy, this is the first time it partnered with another established fashion brand.

Gruppo Florence has grown over the past three years to control around 24 companies, from knitwear and informal outerwear manufacturers to footwear specialists, reaching sales of 600 million euros — and there are no signs it plans to stop here. The founding families of these companies have agreed to reinvest minority stakes in the holding.


In April, investment holding San Quirico SpA acquired a 75 percent stake in MinervaHub, emerging as a leading aggregator of small and medium-size makers of components for luxury brands, from chains and metal details to galvanic treatments and hand embroideries.

The remaining 25 percent stake remains in the hands of one of the sellers, Xenon Private Equity, with other coinvestors that include president Matteo Marzotto. MinervaHub reports sales of more than 170 million euros, has a portfolio of more than 1,000 clients, of which are 20 among the main luxury brands, and 700-plus employees. In July, it took control of 100 percent of New and Best H.F. Srl, known for its expertise in high-end leather goods, shoes, ready-to-wear and accessories, and surface finishings.

>>> Sempra Energy beats by $0.07, misses on revs; guides FY23 EPS above consensu

Sempra Energy beats by $0.07, misses on revs; guides FY23 EPS above consensus; reaffirms FY24 EPS guidance (72.08)
  • Reports Q3 (Sep) earnings of $1.08 per share, $0.07 better than the FactSet Consensus of $1.01; revenues fell 7.8% year/year to $3.33 bln vs the $3.68 bln FactSet Consensus.
  • Co issues upside guidance for FY23, sees EPS of at or above high end of $4.30-4.60 vs. $4.50 FactSet Consensus.
  • Co reaffirms guidance for FY24, sees EPS of $4.55-4.90 vs. $4.78 FactSet Consensus.
  • At Sempra Texas, Oncor Electric Delivery Company LLC (Oncor) continues to build out one of the largest pure-play transmission and distribution platforms in America to meet the state's growth in residential, commercial and industrial sectors. Premise growth in Oncor's service territory is estimated to be 2%, approximately double the national average. The Electric Reliability Council of Texas set 10 peak demand records this summer and the Oncor team safely maintained grid reliability while investing in the expansion and modernization of its growing energy networks.
  • Expecting 10% to 20% increase above current five-year $40 billion capital plan.

FT : Société Générale weighed down by French retail banking woes

Société Générale weighed down by French retail banking woes
Resilience at investment bank provides one bright spot for chief executive

A lacklustre performance from its retail bank dragged on Société Générale’s revenues in the third quarter, highlighting the challenges facing new chief executive Slawomir Krupa as he tries to reset the fortunes of France’s third-largest lender.

A more resilient showing in SocGen’s investment bank compared with several European peers offset some of the pain, providing one bright spot for Krupa as he attempts a reboot after years of restructurings.

The group’s overall revenue was down 6.2 per cent to €6.2bn in the quarter, falling short of the €6.3bn forecast by analysts. Net profit beat expectations, coming in at €295mn compared with the €168mn predicted. But that was a drop of nearly 80 per cent from a year earlier after a series of charges it had previously flagged, including on deferred tax assets.

Shares in SocGen were up 1.5 per cent by mid-morning on Friday. The company also reported an improved capital position.

SocGen’s retail business was the major drag. French banks have yet to profit to the same degree as their European peers from rising interest rates, due in part to a so-called usury rate that controls how quickly they can pass on those increases to borrowers.

In addition, the payouts they have to make on some regulated savings accounts have risen, squeezing net interest income.

SocGen also said it had been hit after two-year hedges against low interest rates backfired when rates began to rise more rapidly than expected in 2022. The impact peaked in the third quarter with the hedges due to reach maturity by early next year, it said.

Krupa said the bank had “obviously taken lessons from what happened” and would integrate more radical scenarios in its planning in future.

“A very big banker [at SocGen] once told me ‘it’s easy to do banking when you look in the rear-view mirror’. Decisions are taken in a certain context,” he said.

Net interest income in SocGen’s French retail bank dropped 27 per cent in the quarter from a year earlier, when stripping out the impact of two regulated savings accounts. Net interest income in the French division is expected to fall more than 20 per cent for 2023 as a whole, the company said.

The bank said the outlook would improve in 2024 when net interest income would be “at a higher level or equal to the 2022 amount”.

Krupa, a SocGen veteran who previously ran the investment bank, took the reins in May after Frédéric Oudéa’s 15-year stint in the top job. Krupa’s first strategy update in September, in which he cut the group’s profitability targets and forecast muted revenue growth for the next three years, sent shares down more than 10 per cent.

“Revenue momentum is as weak as [SocGen]’s update at the capital markets day suggested,” Anke Reingen, analyst at RBC Capital Markets, said in a note on Friday.

In recent years, SocGen has tried to rein in risk taking at the investment bank and reshape the unit after it was hit by losses in its core equities business during the Covid-19 pandemic.

In the third quarter of 2023, overall revenues in SocGen’s investment bank dipped 0.4 per cent from a year earlier, outshining many rivals. It outperformed France’s BNP Paribas and Deutsche Bank in fixed income trading, reporting a 4.6 per cent revenue drop for that division.

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • DOCN +20.9%, SQ +16.5%, UDMY +14.6%, IAS +13.8%, TRUP +12.7%, SPT +12.5%, DH +12%, IPHA +10.8%, ALHC +9.3%, EXPE +8.9%, PODD +8.8%, FET +8.7%, DKNG +7.9%, FLR +7.7%, CYTK +7.5%, PRLB +7%, BURL +6.1%, BL +6.1%, CRBG +5.9%, DVAX +5.8%, PRTA +5.5%, HASI +5.3%, FIGS +5.3%, FNKO +5.3%, CODI +4.9%, RLAY +4.9%, PARA +4.8%, YELP +4.5%, GDYN +4.4%, PRDO +4.4%, FIVN +3.9%, CELH +3.7%, RMAX +3.7%, CLDX +3.7%, ACAD +3.7%, ENV +3.5%, QLYS +3.5%, LYV +3.1%, TSLX +3.1%, HURN +2.5%, FRT +2.5%, MG +2.1%, HCAT +2%, CPK +2%, BAND +2%, CHUY +2%, OLED +1.9%, RDFN +1.6%, MBLY +1.5%, ALTR +1.5%, SNDX +1.4%, PD +1.3%, MCW +1.3%, EOG +1.3%, CUBE +1.3%, STLA +1.1%, LOCO +1%, MNST +1%, EVH +1%
  • Gapping down:
    • BILL -34.9%, FTNT -23.9%, FOXF -17.1%, AGL -16%, BOOM -14.3%, FND -14%, PCTY -8.6%, STEM -8.5%, TEAM -7.7%, ACCO -6.6%, PEN -5.7%, HLIO -5.4%, NET -5.3%, KURA -5%, BAP -4.7%, OPEN -4.5%, BECN -4.5%, COIN -4.2%, MCY -4.1%, BOOT -4%, KTOS -3.9%, PLYA -3.9%, PANW -3.8%, ABCL -3.4%, SWKS -3.4%, BKNG -3.4%, VIAV -3.3%, MCHP -3.3%, AAPL -3.1%, WW -2.9%, SYK -2.8%, SG -2.8%, HSIC -2.6%, CRWD -2.6%, MP -2.5%, APPN -2.2%, RKT -2.2%, CVNA -2.2%, BBIO -2%, SWN -2%, OUT -1.9%, SPXC -1.9%, SEM -1.9%, TXG -1.8%, IRTC -1.8%, OHI -1.7%, KWR -1.6%, ICFI -1.5%, MERC -1.5%, BOX -1.4%, RY -1%, SLCA -1%

FT : Western countries clash with Saudi over UN climate fund

Western countries clash with Saudi over UN climate fund
Kingdom resists efforts to broaden base of donors for poorer countries coping with consequences of environmental fallout

Western countries have clashed with Saudi Arabia over the role the kingdom should play in helping to kick-start a UN fund to help poorer countries deal with the loss and damage of climate change.

A last-ditch attempt to agree on the operation of a fund is scheduled over the next two days in Abu Dhabi. There has been wrangling over where it will be based and who should contribute to it ahead of the UN COP28 summit in Dubai.

The decision to create the fund was an important outcome of the COP27 summit in Egypt last year, when leaders of developing countries secured support for “particularly vulnerable” nations.

A failure to establish the fund since then is regarded by many of those nations as setting up COP28 for failure when it convenes on November 30.

COP28 president-designate Sultan al-Jaber said the meetings “must deliver clear, clean, and strong” outcomes. “Billions of people, lives and livelihoods who are vulnerable to the impacts of climate change, depend upon the successful delivery of these recommendations,” he said.

But deep divisions have developed over the structure and which countries should be donors. The US and EU asked Saudi Arabia to be among those to contribute to ensure that the fund has as wide a donor base as possible.

“If you can pay millions to have [the footballer] Cristiano Ronaldo, then you can pay into the fund,” said one western official, reflecting the testy nature of the negotiations following four rounds of meetings.

The US has proposed that the fund receives capital from a broad range of sources, including philanthropies, and that the pool of eligible donor countries is not restricted by metrics such as income per capita, and should be open to any willing donors.

At the same time, the group of developing nations known as the G77 plus China, have called for developed countries to kick-start the fund, or for contributions to be based on metrics such as income per capita or historical emissions, while also welcoming philanthropic donors.

In separate preparatory meetings for COP28 this week, the Saudi delegation said there had been historical “failures on obligations and gaps in action”, referring to the prosperity enjoyed by western nations during the industrial era.

“This is also where we expect those who have clear obligations to own up to them and not attempt to pass on the baton to other countries or entities outside the process,” it said.

Saudi Arabia ranks among the world’s 20 biggest economies and is one of the largest oil and gas producers, but it also counts as a developing nation based on a UN framework that dates back to 1992.

An official close to the negotiations said that western countries had “questioned” the position of relatively wealthy countries such as Saudi Arabia which have so far been shielded by the developing nation status.

Rob Jetten, climate minister of the Netherlands, told the Financial Times that the fund was “paramount to bridge the gap” between nations “with capacity to contribute and those that lack capacity to cope”.

“This means three things: we need to look at which countries have the capacity to contribute today; we need to look out of the box at new sources of financing by opening the fund for other stakeholders . . . such as the private sector. And we need to prioritise access to the fund for [those] less resilient and able to cope with the effects of climate change.”

Negotiators are also debating how to specifically allocate funds among climate-vulnerable countries. The US has proposed a mechanism to protect funds for smaller nations to prevent a “first-come first-served” situation, where large disasters in big countries could deplete it.

The last round of talks to get the fund up and running held two weeks ago foundered on disagreements over whether the World Bank should have a role in hosting it, with its poor experience with bureaucracy being cited.

Developing nations said the US had insisted the fund was based at the World Bank, where it is the largest shareholder. A US official denied the characterisation, saying it was open to establishing a new fund “from scratch”.

This week, two people involved in the discussions said the issue was no longer the biggest stumbling block, after a potential compromise had emerged that would see the Washington-based institution host the fund under an independent board.

>>> Europe : Brokers Upgrades & Downgrades - 3rd of November 2023 V2(+)

>>> Up
* Airbnb Raised to Buy at Phillip Secs; PT $157
* Andritz Raised to Overweight at JPMorgan; PT 60 euros
* Anglo American Raised to Outperform at Oddo BHF; PT 2,550 pence (+)
* Chr. Hansen Raised to Overweight at Barclays; PT 555 kroner
* Cordiant Digital Infrastructure/Fund Raised to Buy at Jefferies
* Fortum Raised to Buy at SEB Equities; PT 14.50 euros
* Hexagon Raised to Buy at Nordea; PT 124 kronor
* ISS Raised to Hold at Jefferies; PT 105 kroner
* Kering Raised to Buy at Deutsche Bank; PT 540 euros
* Moderna Raised to Hold at HSBC; PT $69
* Novozymes Raised to Overweight at Barclays; PT 364 kroner
* Relais Group Raised to Buy at Inderes; PT 15.50 euros
* Scatec Raised to Hold at DNB Markets; PT 62 kroner
* Smith & Nephew Raised to Overweight at JPMorgan; PT 1,248 pence
* Uber Raised to Overweight at KeyBanc; PT $60

>>> Down
* Accor Cut to Equal-Weight at Barclays; PT 33 euros
* BCP Cut to Neutral at Oddo BHF; PT 40 euro cents
* BCP Cut to Neutral at Oddo BHF; PT 40 euro cents (+)
* Estee Lauder Cut to Hold at Berenberg; PT $118
* Integrated Wind Solutions Cut to Neutral at SpareBank (+)

>>> Initiation
* Amazon Rated New Buy at William O'Neil
* Auto Trader Reinstated Buy at Panmure Gordon; PT 695 pence
* Richemont Reinstated Buy at Investec; PT 130.60 Swiss francs
* Yubico Rated New Buy at SEB Equities; PT 128 kronor

>>> Call
* Citi’s Manthey Says European Stocks’ Implied Volatility Is Low (+)
* JPMorgan Strategists Say Earnings Weakness Due to Commodities

FT : The scandalous, scarcely believable journey of the little Kandinsky

The scandalous, scarcely believable journey of the little Kandinsky
Stolen twice. Re-sold around the world. The dramatic afterlife of a master’s postcard-sized painting

Housed in a 19th-century listed mansion that stretches skyward into spires, the Grisebach auction house gives off the disquieting charm of a German fairytale castle. Outside runs Fasanenstrasse, a leafy street of galleries and skincare boutiques in one of Berlin’s chicest corners. On December 1 2022, Marcin Król, the Polish consul in Berlin, climbed the steps to the building for the evening sale beginning at 6pm. A number of impressive modern artworks were on offer, including a sought-after self-portrait in oil by Max Beckmann. But it was Lot No 31, “Untitled”, a little pink Wassily Kandinsky watercolour from 1928, that had Król’s attention that evening.

Król was not at Grisebach as a buyer. Earlier that day he had sent the auction house a message demanding it stop the sale of the Kandinsky. In the hours since, representatives at Grisebach had reviewed the legal status of the artwork and its right to be sold by Inga Maren Otto, a German billionaire and philanthropist. Their decision was clear. They would proceed.

At 4.40pm, Król took to Twitter, quoting the message he’d sent to Grisebach. “Withdraw[ing] the painting from the auction,” he wrote, “[was] the only correct and moral action in this situation . . . The provenance/history of the painting stated [in the catalogue] is clear . . . the painting has ownership markings indicating its origin from the National Museum in Warsaw. [It has been registered] from the Polish side in Interpol’s database of stolen works of art.” He finished the thread with an update: “The auction house has not yet stopped selling the work. As of 4.50pm.”

Król watched on a TV screen in the corner of an anteroom as the auction began. Lot No 31 eventually appeared on the screen. Flattened by the glowing pixels, the original aqueous colours took on neon tones. There was a faint scribble underneath in Kandinsky’s handwriting. After a flurry of bids, more than doubling the upper reserve price, the hammer came down.


Afterwards, Król posted a photo to Twitter with a solemn summary of what he had witnessed. It read like both the beginning and the end of an art-crime story: “Grisebach sold Kandinsky’s watercolour [“Untitled”] for €310,000. The painting was stolen in 1984 from the National Museum in Warsaw.” Then the Berlin police showed up at the auction house, in response to a report of a stolen artwork being sold on the premises. Król’s message that day was, said Grisebach in a statement issued after the event, the first they’d learnt of the theft.

I heard about the auction of the Kandinsky watercolour some weeks later. I was intrigued by this little work on paper, the size of which is hard to gauge when viewed online. A cluster of geometric shapes and coloured washes not much bigger than a postcard, it’s not a famous piece and was never supposed to be. The personalised dedication at the bottom provides a clue as to its original, more intimate context.

Through Król’s media offensive, I began to imagine the painting in its previous lives. A valued artwork can do this; move through history like a time traveller who has seen it all, changing hands, changing walls, changing in value, picking up a few marks and scuffs, but remaining, on the surface, itself. It’s easy to forget that many of the works of art we see today have somehow weathered revolutions, wars and genocide. During and after the second world war, art collections dispersed like breadcrumbs in the mouths of sparrows. Since that time, art dealers and auction houses have continued to sell these works, right up to the present day, with values soaring.

As I began to trace the Kandinsky’s journey, I discovered the story had deeper roots than even Król had imagined. The watercolour wasn’t stolen once but twice. Having survived the Nazi party’s confiscations of modern art in the 1930s, it languished in a depot in occupied Poland before travelling back and forth across the world via private and public sales as the lines between black market and art market blurred postwar. As the trail grew more convoluted, my questions multiplied. How was it possible, I wondered, that a piece of art that we know was once stolen from a major European museum could now be sold, perfectly legally, by an important German auction house? And who, in the chain of ownership spanning nearly a century, is the rightful owner of Lot No 31?

In his Dessau studio in 1928, Wassily Kandinsky sat before a small sheet of thick paper. He drew in ink, a balance of precisely placed interlocking semicircles, triangles and floating circles, with a more irregular snakelike mark through the centre. Then he dragged his paintbrush across some watercolour pans, applying the colours to the interior of the shapes in blues, yellows and reds, and washing the surround in pink. The watery paint pooled in different areas, variegating the intensity of the colour where it settled. Then it dried, locking the painting into position. At the bottom, in pencil, the artist wrote: “Meinem lieben Otto Ralfs, herzlichsten Glückwunsch, Kandinsky I IV 28” [“To my dear Otto Ralfs, Happy Birthday, Kandinsky, 1 April 28”]. It was a gift, made for his friend and patron on the occasion of his 36th birthday.

Kandinsky’s studio was in a row of identical semi-detached houses located in a pine forest at the edge of town, where artist-professors lived and worked. This was the vision of Walter Gropius, founder of the influential modernist art and design school the Bauhaus, who designed the Dessau “Masters’ Houses” in 1925 to fit his concept of gesamtkunstwerk, or total artwork. Kandinsky lived at No 6, next door to the Swiss-German artist Paul Klee. The day I visited earlier this summer, the sunny weather was heating the pines, filling the air with the same calm, sweet smell that Kandinsky, then in his late fifties, and the younger Klee would have breathed as they sat drinking tea together in the garden.

Inside, the thick, shiny paint was fresh from recent restoration work, distracting the senses from conjuring their presence. The artists’ studios, the largest rooms in their carefully designed houses, shared a wall. From the front, an enormous horizontal window frames the central focus of the house, the parallel studios in which they worked, taught and held salons: Kandinsky on the left, Klee on the right.

Otto Ralfs and his wife Käte bought their first works by Klee when they visited the Bauhaus in Weimar in September 1923. After that, their lives changed completely. The couple didn’t have a lot of money. He worked as an insurance salesman and owned a shop in his hometown, Braunschweig, in northern Germany. She was a paediatric nurse. But they were among the first people to see the value in the art being produced at the Bauhaus. At one point, they had the largest collection of Klees, and the second-largest collection of Kandinskys after Solomon R Guggenheim.


The Ralfses met Kandinsky not long after he arrived from Russia and was living in the attic apartment of another family, with his second wife, Nina Andreevskaya. “They had just three cups, and the vodka was going around in a water glass,” said Käte Ralfs, in an unpublished interview with the art historian Peg Weiss in the 1980s. Otto and Kandinsky agreed on an exchange: Ralfs would send him glasses and pots from his household-goods shop, and Kandinsky would send him artworks. The Ralfses’ collection kept growing. Later, the German artist Kurt Schwitters wrote them a letter: “I hear you are trading art for pots. My wife urgently needs a few . . . ”

“They were the typical modern Weimar-era couple,” said Nina Zimmer, great-grandniece of Käte and Otto and director of the Klee Museum, in Bern. “They had great parties and they used to swap clothes. Käte would wear a suit and Otto a dress and stockings.” Rudolf Zwirner, the German art dealer, remembers this too. “Ralfs always invited people to his modest apartment in Braunschweig’s Schuntersiedlung on Sundays to show his works on paper . . . [He] received people in women’s clothing, but no one took offence. For me it was the first encounter with a transvestite,” he wrote in a 2019 autobiography.

By 1931, the German economy was in crisis and Otto Ralfs was broke, forcing him to sell a few pieces from his collection. Provenance data shows clearly that any works leaving the Ralfs collection legally did so at around this time. Two years later, Otto and Käte looked on as Adolf Hitler stood in front of a large National Socialist demonstration outside the front of the Braunschweig Palace. Before long, the Nazis were confiscating tens of thousands of modern works of art that they considered “degenerate”, among them works by Kandinsky and Klee. Both artists left Germany when the Bauhaus was closed in 1933. The Ralfses were not immediately targeted but had started to look for a safe storage location for their collection. But in their dining room, they left three large Kandinskys hanging, including the important 1910 painting “Composition I”. They only moved them down into their air-raid shelter after the second world war began.

Otto Ralfs spent the war as a lieutenant stationed in Katowice, part of occupied Poland, but for most of his time headed a maintenance unit near the Eastern Front. When he returned on leave to Braunschweig, he and Käte packed up the largest part of their collection into five heavy boxes and organised its transportation to a depot in Katowice. In October 1944, she was visiting him in Katowice when Britain carried out “Operation Hurricane” on Braunschweig, a devastating air raid that destroyed 90 per cent of the medieval city centre, along with much of the Ralfses’ house and the art still stored in the basement. Otto’s famous guest book miraculously survived, along with a few artworks that were stored in a different part of the house.

It isn’t entirely clear what happened to the art kept in the Ralfses’ depot. The Red Army reached Katowice in January 1945 but, before any of the artworks could be confiscated by either the Soviet troops or the soon-to-be founded communist Polish state, the collection had vanished. “The entire warehouse had somehow seeped away into the population” was how Käte put it more than three decades later.

The watercolour by Kandinsky, stored in one of these boxes in a folder along with other works on paper, was just one small sheet among hundreds of artworks by artists including Klee, Otto Dix and Edvard Munch taken from the Katowice depot. The Ralfses would spend the rest of their lives trying to retrieve them.

Dorota Folga-Januszewska was a curator at the National Museum in Warsaw in 1982. In early summer, she and Irena Jakimowicz, then curator of modern prints and drawings, heard that a few modern pieces by famous western artists had appeared on the market. This was unusual at the time, but the museums had first dibs on the pieces, so they visited the state-owned Desa gallery in Krakow to view them. Lying in a vitrine were four works by Paul Klee and two by Wassily Kandinsky, an untitled drypoint from 1928 and the little pink watercolour, both with dedications to Otto Ralfs.

On a video call, Folga-Januszewska, now a professor at the Academy of Fine Arts in Warsaw, told me she looked into the provenance of the pieces. Her investigations confirmed the obvious: the collection had once belonged to the Ralfses. Folga-Januszewska had heard rumours about where the artworks had come from but the official line was that they had been confiscated by the Nazi party and sold during the time of German occupation. In other words, they were not looted by Poles, nor requisitioned by the Polish state, but bought legitimately at the time. Folga-Januszewska and Jakimowicz submitted their purchase request for the works. The Kandinsky watercolour was bought for 500,000 zlotys (about £11,480 today).

Protests against the state were rife in Poland during this period, with widespread support for the strikes and demonstrations organised by the Solidarność (Solidarity) movement. The National Museum staff in Warsaw were also deeply engaged in Solidarity’s actions, said Folga-Januszewska, organising exhibitions to demonstrate opposition to the communist regime. In late 1982, the museum’s famous director Stanisław Lorentz was ousted after 50 years in the job, on account of his support for the protests. The Ministry of Culture and National Heritage replaced him with Juliusz Bursze, a paintings conservator and head of conservation at the National Museum.

In spring 1984, Folga-Januszewska installed the exhibition Concepts of Space in Contemporary Art at the National Museum. Included in the show, in the section of abstract works aptly titled “The Abandoning of Objects”, was the 1928 watercolour by Kandinsky, two other works by him and three pieces by Paul Klee, which had also belonged to the Ralfses’ collection stored in the Katowice depot.

The official line was that the art was sold during the German occupation

In an essay in the exhibition catalogue, the curator’s words seem to perfectly describe Kandinsky sitting in his studio in 1928, manifesting his philosophy in abstract form: “Every artist bent over a sheet of paper, over a surface on which an image is to be created, answers anew the same question: how is the three-dimensional space of objects and the four-dimensional space-time of events rendered on a two-dimensional surface? Depicting the world on a surface, the artist transforms multi-dimensionality into two-dimensionality, which gives evidence of the individuality of his intellect and sensitivity.”

Folga-Januszewska left to go on holiday after the opening. When she returned, the Kandinsky watercolour was gone. “The atmosphere was strange,” she said. “As a curator, I wanted to know what had happened, but nobody wanted to talk about it. The Militia didn’t want to hear any questions, nor Juliusz Bursze.” According to the Polish Ministry of Culture, the theft took place on June 14 1984 and was reported to the police on the same day. “It felt to me like an organised event,” said Folga-Januszewska. “It was widely known that the secret police in Poland were smuggling goods back and forth across the border to make money.”

The black market for looted artworks in Poland after the war was enormous, said Nawojka Cieślińska-Lobkowicz, an art historian, critic and provenance expert on looted Polish and Jewish art and libraries. “Many people were leaving Poland in the 1980s. You have to understand the time, then you can see why an art historian, for example, might take a piece of art across the border and sell it in the west. Anyone could have taken the Kandinsky watercolour from the exhibition. It could have been someone who wanted to emigrate,” she said.

The Polish police closed the case on September 24 1984. By December of the same year, the three-dimensional object that was Kandinsky’s watercolour had travelled through space and time across the Iron Curtain to Sotheby’s in London.


As I mapped the journey of the little Kandinsky, a set of imagined characters began to form in my mind, each stealing the artwork from Warsaw and travelling with it, unframed, across one of the most heavily secured borders in history. It is an easy object to smuggle. It slots into a book, in a pocket, in a suitcase. It slips out of sight. Did the same person who stole it take it across the border? Were they in a car? Sometimes it’s a woman, sometimes a man. Sometimes it’s a Polish official, sometimes a secret service informer, sometimes an art historian or a person trying to emigrate. Perhaps it travelled directly to London or maybe it went via Munich.

On December 5 1984, the Kandinsky watercolour was sold at a public auction at Sotheby’s in Bond Street for £34,100. The catalogue from the auction is littered with curious errors. It misspells “Otto Ralff” as a previous owner. It locates him incorrectly in Munich. And it omits any mention of the National Museum of Warsaw or the presence of the museum’s stamp, which was on the back of the artwork. Missing, too, is any mention of the seller, as though the artwork had come through some direct channel from Ralfs. Sotheby’s has a record of the seller’s identity but declined to share it on grounds of client confidentiality when I asked, some 40 years after the sale. In a statement, it said: “Sotheby’s was instrumental in helping establish the Art Loss Register in 1990 and we check all property offered for sale against all available records of lost or stolen art.” It added that the catalogue for the 1984 sale of the Kandinsky, which was not registered as stolen at the time, “did not imply direct provenance from Otto Ralfs”. It was “not able to speculate as to whether the stamp was visible at that time”, as staff from that period no longer work at the auction house.

Charles Hind is chief curator and curator of drawings at the Royal Institute of British Architects. A cataloguer in the British watercolours department at Sotheby’s in the 1980s, he described to me the likely scenario for acceptance of an artwork such as this one. “Whoever the vendor was, maybe they came to the front desk,” he said, “and they must have come up with a story that was convincing but not important enough to merit inclusion in the catalogue. Something like, ‘Oh my mother bought it at a London gallery in the ’50s.’ That was common — and sometimes perfectly true.”

Back then, before the rise of postwar restitution claims in the 1990s and the 1998 Washington Conference Principles on Nazi-Confiscated Art, thorough and accurate provenance research was not so heavily obligated. “It was used to establish the history of an object,” said Hind. “It could add value and be used as a marketing tool, and it could demonstrate that the object had not been hawked around the open market. What the market loved — and still loves — were materials fresh to the market, and provenance was a useful way of proving that.”

Even today, the rules around provenance research for the selling of art are hazy, as the sale of the Kandinsky last year at Grisebach shows. In Germany, since the 2016 Cultural Property Protection Act, auction houses have been legally obliged to carry out thorough provenance research as part of their commercial operation, particularly where the artwork is suspected to have been taken from its owners due to Nazi persecution, between 1933 and 1945. The gaps in the provenance of the Kandinsky watercolour listed in the Grisebach catalogue suggest that, without knowing the facts, this could have been a possibility. But although Grisebach has 40 experts for this purpose, the data published in the auction catalogue for the Kandinsky watercolour was incorrect. It was based on inaccurate data published in the 1994 catalogue raisonné, the definitive list of an artist’s works.


Wassily Kandinsky at work in his studio, c 1936 © Süddeutsche Zeitung Photo / Alamy
As Hind pointed out, the Sotheby’s staff in 1984 had no such resource at their disposal: “The fact that [they] misread the collector’s name suggests that they didn’t devote a lot of time to it, [but] then again, there were hardly any places you could go at the time to check this. If something was established as stolen, we immediately withdrew it.” In its statement, Sotheby’s said: “Although it is now routine practice to photograph both front and back of works consigned for sale, this was not the case in the 1980s.”

In Hind’s department, the policy was always to open the frame and check the back of the artwork. “If they had, quite possibly alarm bells should have rung. But even if they had seen the stamp, there was no information available at the time about the theft, and relationships across the Iron Curtain in 1984 were very difficult,” he said.

A database of stolen art did exist at that time. And, in November 1985, just under a year after the sale at Sotheby’s, the National Museum in Warsaw contacted the International Foundation of Art Research (IFAR), which duly published a theft alert on the Kandinsky watercolour. In it, the IFAR stated that the museum was aware of the sale at Sotheby’s but had not yet contacted the auction house. It is unclear why this never happened.

The buyer took the watercolour to New York. Whoever it was, the title was not passed on to them at the point of purchase. “In English law, a thief cannot pass on good title,” said Emily Gould, assistant director of the Institute of Art and Law. Despite this, without a claim from the original owners (which, in England, should be made within six years of the sale), buying and selling of the Kandinsky continued through the art market. With every passing year, the ownership of the new buyers starts to gain in legitimacy in various jurisdictions. “Limitation periods [which vary in different territories] are one of the biggest hurdles for claimants for works that were looted during the second world war,” said Gould.

In the 1970s, the art market became a booming global network. Over the next few decades, works were increasingly seen as financial assets, with the prices paid for artists like Kandinsky rising accordingly. In 1931, his oil painting “Deepened Impulse” was listed for sale at 4,000 reichsmarks (£15,800 today) by Otto Ralfs during the collector’s period of insolvency. After Diego Rivera, the Mexican artist, decided he couldn’t afford it, it was bought in the same year by Salomón Hale, a Polish collector living in Mexico. Between 2010 and 2019, the painting was sold three times, finally for almost £6.1mn.


At the end of August this year I called an art dealer in Munich. Galerie Thomas, which specialises in modern and expressionist art, is located in the heart of the city, right next to one of Germany’s biggest museums of modern art, the Pinakothek der Moderne. In 1988, it became the next brief stop for the Kandinsky watercolour, which had travelled through London and New York. Like everyone else, the gallery was reluctant to name names. “It was a New York dealer, with a good eye and good works . . . now deceased,” said Silke Thomas, the daughter of the gallery’s founder. Galerie Thomas exhibited the watercolour in a show of miniature artworks. The watercolour was on the front cover of the matchbox-sized catalogue. “It was such a gem we didn’t have it for long,” she said.

Thomas did not appear to see why anything about the sale of an artwork like this should be problematic. “We buy artworks and sell them on,” she explained. In German civil law, good title can be acquired by the buyer even if the seller does not own the work, unless the buyer is negligently ignoring their suspicion that the seller does not legally own it. In addition, there is no legal obligation to investigate the title of the seller. I asked if there was proof that the work was bought by the previous owner, and by Galerie Thomas, in good faith. She said the fact that it had been sold by Sotheby’s was effectively a guarantee. In Germany, auction houses are legally accorded an “auction privilege” by which rightful ownership, or “title”, is automatically conferred from seller to buyer if a sale takes place in a public auction. This law does not apply in the UK.

Neither Thomas nor Ralph Melcher, the gallery’s provenance researcher who was sitting in on our call, said they knew about the IFAR’s 1985 stolen-art alert. “Nobody was aware the work was stolen,” Thomas said. “Not Sotheby’s, not the dealer, not us, not Vivian Barnett, who wrote the catalogue raisonné. It’s not clear that it was stolen. It went through public auction.” I asked if they had seen the stamp by the National Museum in Warsaw on the back of the watercolour. Thomas said that they didn’t have any record of the stamp in their archived notes, so they probably didn’t notice it. “Everyone was doing as good a job as they could with what they had at the time,” she said.

The last owner of the little Kandinsky is known publicly. The billionaire Inga Maren Otto bought it from Galerie Thomas in 1988. She is the widow of Werner Otto, an entrepreneur who founded a mail-order empire in postwar Germany. Otto kept it in her collection for the next 34 years, until last year. In that time, the artwork’s legal status underwent its final transformation. Through the mere passing of time, the slate was wiped clean. Despite the historical, mass-scale plundering of cultural-heritage objects in and outside of its borders, in German law after 10 years the owner of a moveable item acquires the property if it was owned in good faith. The statute of limitations for claims for restitution of property is 30 years. By the time Otto consigned the work to Grisebach in 2022, she owned it fair and square.

Otto Ralf’s art collection was never far from his mind. “I think about it every day,” he wrote in a letter to the art dealer Ferdinand Möller in 1946. In 1955, Otto died in a car crash, which Käte survived. Afterwards, she continued trying to retrieve their stolen artworks, at one point hiring an art detective to whom she offered a 50 per cent finder’s fee to recover the collection. It was no use. She got stomach ulcers and tried to let go, but every now and then, she saw her artworks appear in galleries and auction houses in Germany, Switzerland and the Netherlands. “Die trauernde Braut” (“Mourning Bride”) by Otto Dix turned up at Galerie Nierendorf in Berlin, but when Käte Ralfs tried to confront the owner, he refused to tell her where he’d got it from. It was sold at Sotheby’s in 2008 for $62,500, with no mention in the provenance that it had once belonged to Otto and Käte Ralfs and came from the depot in Katowice, despite it being published on the German Lost Art Database, which has been publicly available since 2007.

Sotheby’s said the catalogue raisonné for Dix’s works features a series of six watercolours of grieving or mourning widows. “Only one of the six works has the specific title “Die trauernde Braut”, the work Sotheby’s sold in 2008, but, as you can see, the six watercolours are all variations on the same theme. Based on the fact the works are a series and incredibly similar in appearance, and that there is no image [on the German Lost Art Database] of the Dix registered as a loss to Otto and Käte Ralfs, Sotheby’s cannot identify the work we sold in 2008 as the same work registered with the German Lost Art Foundation.”

Käte had no money to push aggressively with lawsuits and, at the time, it was unclear what was legally possible. Even if she could have sued the dealers and auction houses selling her artworks, so much evidence had been destroyed in the Braunschweig bombings. Sometimes she caught a glimpse of the works still in Poland, where, it seemed, the majority of the collection hid. In the early 1950s, two Polish professors based in Krakow, Kazimierz Wojtanowicz and Włodzimierz Hodys, tried to sell works by Paul Klee from the Katowice depot in Germany. Klee died in 1940, so they contacted his son Felix for an appraisal of the works. They told him there was a box of Klees sold “under the table” and they had bought some with dedications to Otto Ralfs for themselves. Felix Klee informed Käte Ralfs, but when she contacted the professors, they denied owning the works.

The list of artworks belonging to the Ralfses’ collection — both those that stayed in Braunschweig and those transported and stored in the depot — is almost impossible to track down, but it was made available to me from the family archive. Many of the works on this list are also named on the German Lost Art Database website. In the case of Kandinsky, who died in 1944 near Paris, his untitled works, such as the pink watercolour, are listed as “a folder of watercolours and drawings”. Klee, who gave titles to his works and created small print-runs of his prints, is much easier to trace.

On May 30 2019, Grisebach sold a Klee drawing from 1927, “Two Souls Up”, at a public auction. The artwork, previously acquired in the mid to late 1950s by a collector in Basel, is listed in the Lost Art Database as belonging to Otto and Käte Ralfs. It is also on the private list of looted artworks that were housed in the depot. Diandra Donecker, director at Grisebach, informed me that the auction house “does not consider the Ralfs’ provenance in itself to be problematic or to hinder trade. The mere entry of a search report for a work of art in Lost Art Database in no way renders a work of art unsellable. It is the circumstances in detail, which must be precisely examined and evaluated by an art dealer, that then determine the further course of action in accordance with the law.” The law is on their side.

Today, artworks from the Katowice depot can be seen in countless private and museum collections across the world, including the Stedelijk Museum in Amsterdam, The Metropolitan Museum of Art in New York, the Los Angeles County Museum of Art and the Kunstmuseum in Basel. The National Museum in Warsaw still owns nine works from the Otto and Käte Ralfs collection, including a pen drawing by Klee, dedicated to Käte Ralfs on her birthday in July 1928. Many other artworks on the depot list are lost entirely for now.

In the aftermath of the Kandinsky watercolour auction at Grisebach, the auction house reassessed what seemed to be its legal certainty about the transaction. It announced it would suspend processing the sale “to obtain a binding clarification”. Since then, the buyer, who remains anonymous, has pulled out. Grisebach did not respond to requests for comment.

The legal clarification is ongoing and, since there is no court hearing registered, this is happening behind closed doors, like almost all art-market disputes. What has come to light is that the Polish Ministry of Culture and National Heritage is not involved in this clarification process. In a statement it said: “[D]espite EU and international obligations, to date the results of the investigation of [the] German authorities dealing with the case of the stolen Kandinsky watercolour have not been made available to [us].” It restated its position regarding the artwork’s legal status. With the ownership stamp still on the back, it said, “no civilised law can legalise such theft”.

Käte Ralfs died in 1995. The Ralfses’ heirs continue to live with remnants of the lost art and the evidence, built up over decades, of the family’s efforts to retrieve it. Artworks still pop up at auction, always several anonymous buyers and sellers removed from the looted collection. In the chain of provenance, a gap exists. For the Ralfses and family, that gap is profound. Artworks, for collectors like them, are personal, taken in as part of the family and remembered, long after the statutes of limitations are up. They can’t let go. And why should they?