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WSJ : U.S. Army Plans to Power Bases With Tiny Nuclear Reactors

U.S. Army Plans to Power Bases With Tiny Nuclear Reactors
The Janus Program fulfills a Trump order to start powering military installations with state-of-the-art nuclear technology

  • The U.S. Army launched the Janus Program to install microreactors on domestic bases by 2028, addressing strained power grids.
  • The small nuclear reactors, generating under 20 megawatts, will ensure continuous power for critical base operations and weapons systems.
  • Commercial companies will own and operate the reactors, with Army and Energy Department support.

The U.S. military is making one of its most significant pushes yet into modern nuclear power with a program to put small reactors on Army bases across much of the country where strained power grids can’t keep up with rising energy demands.

The Army on Tuesday unveiled the Janus Program, which aims to supply bases by 2028 with microreactors—tiny reactors generating less than 20 megawatts of electricity, generally enough to power a small town. That is a fraction of the energy output that larger modern reactors can produce, but the microreactors are small enough to move on a containership or aircraft.

The reactors will help keep weapons powered and maintain critical base operations when other energy sources go down because of bad weather, cyberattacks or other grid disruptions, the Army said.

“What resilience means to us is that we have power, no matter what, 24-7,” said Jeff Waksman, principal deputy assistant secretary of the Army.

The reactors will be owned and operated by commercial companies, although the Army and Energy Department will help with technical aspects and uranium fuel supply. The Army is in the process of selecting nine bases for the initial phase of the program, and by next year will choose the commercial vendors to build two microreactors apiece for each base, Waksman said.

Interest from the Army is a promising opportunity for nuclear-power startups that have raised billions of dollars for projects including small reactors, uranium enrichment and new fuel technologies but in many cases are years away from completing a product.

“The race today is to actually develop the capability. We are all trying to figure out who can turn these things on,” said Isaiah Taylor, chief executive and founder of Valar Atomics, a microreactor startup. His two-year-old company, which has built one microreactor, plans to bid on the Janus contract.

Janus builds on more than six years of efforts by the Army and the Defense Innovation Unit, the arm of the Pentagon that works with technology startups, to acquire small and easily transportable nuclear reactors for bases in the U.S. and military operations overseas. The program is intended in part to better prepare the U.S. for potential war with China in the Pacific or conflict in the Arctic, Army officials said, which would bring major transportation and logistical challenges for supplies—including power.

Bases in Texas and California have lost power in snowstorms, and others rely on aging public utility grids and fossil fuels for backup. Solar and wind power are intermittent replacements. Meanwhile, many of the Army’s newer weapons, including drones and counterdrone and radar systems, require more energy, a Defense Department official said.

The nation’s energy needs are soaring, driven in part by Big Tech’s quest to build power-hungry data centers to develop artificial intelligence. China’s own energy advancements have framed the race for nuclear power as a national security imperative.

President Trump signed an executive order in May calling on the federal government to deploy modern nuclear reactors for national-security purposes, and asking the secretary of the Army to start using reactors on military bases by September 2028.

The Army didn’t provide a clear cost estimate for Janus, but said that some of the money would be pulled from the Defense Innovation Unit budget.

The Air Force is similarly scouting for microreactors to provide power on its bases, with eight nuclear power companies in the running to provide that technology.

WSJ : Oracle Co-CEOs Defend Massive Data-Center Expansion, Plan to Offer AI Ecos

Oracle Co-CEOs Defend Massive Data-Center Expansion, Plan to Offer AI Ecosystem
Freshly appointed dual chief executives Clay Magouyrk and Mike Sicilia push back on concerns over Oracle’s margins as investors examine AI bubble

Oracle’s new co-CEOs defend major data-center investments, say they aim to provide bundled services for businesses.
Oracle needs to prove that it can provide compute for AI inference as well as AI training.
Investors are concerned about Oracle’s reliance on OpenAI and potential low margins on AI chip rentals, despite projected profitability.

Oracle’s new dual chief executives defended the company’s massive new investment in data centers, saying it will offer computing firepower and a suite of bundled services that will make artificial intelligence useful for businesses.

“We’re really in a unique situation to deliver what we call applied AI,” said Mike Sicilia, the former president of Oracle Industries who was appointed as a CEO of the company last month. That includes infrastructure, analytics and applications, he said in an interview.

Clay Magouyrk, former president of Oracle’s cloud infrastructure business, was also appointed as a CEO. They take over just as concerns about an AI bubble are spreading quickly.

Oracle shares soared by more than 40% last month after the cloud company revealed that it had added $317 billion in future contract revenue during its latest quarter that ended in Aug. 31. Much of that new revenue came from a five-year, $300 billion deal with OpenAI, The Wall Street Journal reported.

Investors and tech analysts in the last month have expressed concerns about the extent to which the new build-out depends on OpenAI, which won’t generate a profit until 2029, according to the ChatGPT maker’s chief executive, Sam Altman. Credit-ratings firm Moody’s last month highlighted risks to Oracle’s balance sheet due to how much its future AI data centers rely on OpenAI.

Earlier this month, Oracle shares fell as much as 7.1%—though they later rebounded—following a report suggesting that its margins on renting specialized Nvidia chips were razor thin.

Sicilia and Magouyrk are preparing to make their case to investors this week, including on Thursday’s investor day, for how Oracle’s data-center expansion will provide a clear path to profitability.

The ecosystem and inference argument
The idea of selling an ecosystem of AI solutions to large enterprises is the long-term Oracle playbook, said Balaji Abbabatulla, an analyst at market research and IT consulting firm Gartner.

“They’re not going to be able to show clear returns if they don’t go for those large and multibillion-dollar deals,” Abbabatulla said, “and the only way to get there is to go beyond the components, put them together into the solutions.”

That means linking together Oracle’s AI infrastructure capabilities with its applications like enterprise resource planning and human resources software, plus its databases, to sell a package that makes Oracle the tech vendor of choice for large corporate clients.

Questions also remain over where the training of AI models is headed. While most AI infrastructure powers the building of these models, the tide will soon turn to AI inference, or the actual usage of the models where users send prompts and receive outputs from them.

Providing the computing for inference, rather than just AI training, is a durable business, analysts say. But it’s unclear if Oracle can succeed at both.

Magouyrk said Oracle has a huge opportunity to help clients “do their inferencing right alongside their data with the best models.” The company’s new AI Data Platform will allow for that, he said, predicting that customers’ AI usage will increase as much as one thousand times once they start using the platform.

Shawnna DelHierro, CIO of SoundHound AI, said the AI voice company is using Oracle’s cloud infrastructure for both training its AI models and inference. The company, which also uses some of Oracle’s back-office software, handles over one billion queries a month using Oracle’s cloud, DelHierro said. SoundHound initially chose Oracle as a cloud vendor because the company was looking for a “true partner” and a platform that could provide zero latency, she added.

At the moment, most enterprises say they don’t see the immediate benefit of their AI investments even as they continue to spend precious tech dollars on the technology.

Pressured margins and debt
Part of Oracle’s challenge is facing a belief among investors that renting out access to advanced AI chips and building data centers are a low-margin business. That’s especially true for Oracle, which has staked part of its reputation on being a lower-priced cloud competitor.

Magouyrk said margins are “the wrong way to look at the business.” “I understand the economics of each marginal unit and how this works out as it scales,” he said, “and that actually ends up being a very profitable business.”

Derrick Wood, an analyst at TD Cowen, said margins are going to be lower at the beginning of an AI infrastructure build out.

“You have to go build the infrastructure before you can turn on all the revenue meters,” he said. “But as the consumption meters start going on, you start to recoup a lot more of your capital expense and start to see gross margins significantly improve.”

Oracle has also taken on debt to finance its AI infrastructure build-out, selling $18 billion of investment-grade bonds in late September. The question of financing has troubled investors, who are hoping Oracle can explain exactly how much capital it needs for data center projects like its Stargate plan with OpenAI.

Focusing just on debt paints a very scary picture, Magouyrk said, but looking at the combination of new deals, projected revenue and cash flow presents a rosier one.

In terms of new deals, Magouyrk said Oracle strikes many contracts worth hundreds of millions, but they often go unnoticed. Rather than putting all of its eggs in one customer basket—or rather than solely relying on OpenAI as its primary AI customer—Oracle has a more varied business than many realize, he added.

“Pretty much all of the big model providers use our cloud in one form or another, so I can’t be more diversified than the entire market is. You can’t get more than 100% of the Pokémon,” Magouyrk said.

FT : Telecoms operators make €17bn offer for most of Drahi’s Altice France

Telecoms operators make €17bn offer for most of Drahi’s Altice France
Orange, Bouygues and Free propose carving up assets that are led by SFR

French telecoms operators Orange, Bouygues and Free have made a €17bn offer to buy most of billionaire Patrick Drahi’s Altice France, in what could be a landmark deal to consolidate the country’s market.

The non binding offer, made on Tuesday, would involve the three operators purchasing the bulk of SFR, the flagship telecoms business of Altice France, which is controlled by Drahi.

The deal would involve SFR’s consumer business — which includes mobile and fixed line broadband customers — being carved up between Bouygues, Free and Orange.

Bouygues and Free would divide the SFR unit providing services to companies between them.

Other Altice France assets, including SFR’s fixed line network and mobile phone spectrum, would be mostly split between the three operators.

The proposed offer has an enterprise value of €17bn, Orange, Bouygues and Iliad-owned Free said.

The split of the assets by value within the deal would be about 43 per cent in favour of Bouygues, 30 per cent for Free and 27 per cent for Orange, they added. 

The deal — if accepted by Altice France — is expected to face intense regulatory scrutiny because it would reduce the number of mobile network operators in France from four to three and could prompt concerns about whether consumers will be asked to pay more for services.

Altice France did not immediately respond to a request for comment.

Orange, Bouygues and Free said the offer was conditional on the completion of due diligence, in addition to regulatory approval.

Bouygues group chief executive Olivier Roussat said any deal would take at least 18 months to complete, and would likely close in the second half of 2027.

The agreement — if finalised — would put an end to Drahi’s 11 years of ownership of SFR and greatly reduce his role in the French telecoms market.

Any deal became easier after Drahi closed an agreement with creditors earlier this month to reduce Altice France’s debt level from €24bn to €15.5bn.

The offer by Orange, Bouygues and Free does not include Altice France’s controlling stake in XpFibre, a fixed line network that the Financial Times reported last month was the subject of a separate sales process.

Competition authorities in Brussels have been under pressure to permit more mergers of telecoms companies since a report last year about how to improve EU competitiveness by Mario Draghi, the former European Central Bank president.

Draghi’s report recommended allowing consolidation to create stronger businesses that are better placed to invest in network infrastructure.

FT : OpenAI makes five-year business plan to meet $1tn spending pledges

OpenAI makes five-year business plan to meet $1tn spending pledges
New revenue lines, debt partnerships and further fundraising targeted to cover enormous costs

OpenAI is working on new revenue lines, debt partnerships and further fundraising as part of a five-year plan to make good on the more than $1tn in spending it has pledged to create world-leading artificial intelligence.

OpenAI is planning on deals to serve governments and businesses with more bespoke products, creating more income from new shopping tools, and new sales from its video creation service Sora and AI agents, said multiple people familiar with the start-up’s efforts.

These people said it is exploring “creative” plans to raise new debt that can help it build out its AI infrastructure, while considering becoming a supplier of computing resources via its data centre initiative Stargate.

It is also weighing ways to cash in on its intellectual property by developing new AI infrastructure, making forays into online advertising and plans to launch consumer hardware products, including a new AI-powered personal assistant device, with former Apple star designer Jony Ive.

These ambitious plans will need to become reality if OpenAI is to meet its liabilities, as the group has made funding commitments that dwarf its income. In the past month, chief executive Sam Altman has committed to take more than 26 gigawatts of capacity from Oracle, Nvidia, AMD and Broadcom, at a rough cost of well over $1tn over the next decade, according to FT calculations.

The ability to meet these costs is increasingly a concern for the wider economy. Some of the most valuable companies in the US are now reliant on OpenAI to fulfil major contracts and underpin demand, stoking fears of an AI-fuelled financial bubble.

One senior OpenAI executive said “[investors] expect you to have a five-year model”, but added “right now I’d say there’s lots of fuzz on the horizon, and as it gets closer and it’s going to start to take real shape”.

OpenAI books about $13bn in annual recurring revenue, 70 per cent of which comes from consumers using ChatGPT, which costs $20 for a standard subscription, according to people familiar with the company’s finances.

ChatGPT has more than 800mn regular users, but just 5 per cent of those are paying subscribers, a number OpenAI intends to double, the senior executive said. The company has also rolled out cheaper access to users in India, with plans to do the same in the Philippines, Brazil and elsewhere, they said.

It also takes a cut of sales from items purchased through ChatGPT’s new checkout feature and is exploring introducing advertising to its AI products.

Altman last week said he liked Instagram’s approach to personalised advertising: “Maybe there’s something to do there, but, we approach ads with great caution.”

Recent partnerships with AMD and Nvidia include plans to share “technical expertise” in order to improve AI hardware, including chip and data centre design. One executive at the company compared those plans to Jeff Bezos launching cloud computing platform AWS using technical expertise gleaned from running his ecommerce business Amazon.

OpenAI’s operating loss in the first half of the year was about $8bn, even as revenue more than doubled on the year before, said a person with knowledge of the matter.

The company’s partners such as Oracle have taken on the upfront spending on infrastructure, with OpenAI hoping it can grow to meet its obligations to those partners as operational expenditure in future. The approach has been to “leverage other people’s balance sheets” to give OpenAI “time to build the business”, said the senior executive.

Greg Brockman, the company’s president, last week said recent spending commitments would pay for themselves: “If we had 10 [times] more compute [computing power], I don’t know if we’d have 10 [times] more revenue, but I don’t think we would be that far.”

If OpenAI continues its stratospheric growth, executives are also confident they can keep raising money from investors. Alternatively, the start-up could prioritise breaking even, though Altman last week said becoming profitable was “not in my top-10 concerns”.

OpenAI is also anticipating computing costs will fall sharply as a result of competition among suppliers and technical advancements.


The company’s deals with AMD and Nvidia are staggered so OpenAI will pay as new capacity is developed. But 20GW of capacity would require power roughly equivalent to that provided by 20 nuclear reactors, and analysts have questioned whether it is realistic for that demand to be met by a single company.

Two-thirds of the cost of developing new computing power goes towards semiconductors. OpenAI is aiming to stimulate the nascent chip financing market by offering enormous demand, and by forging novel contracts, such as its Nvidia and AMD deals.

Those deals have been criticised for their circularity — the ChatGPT maker is expected to spend much of Nvidia’s investment on the chipmaker’s processors, for instance. But the transactions will help non-investment grade OpenAI raise the debt it requires to realise its infrastructure ambitions, said the senior executive at the start-up.

The signal to the market is “we’re good for the debt”, they added. “We’re working with everyone to come up with creative financing strategies.”

“I don’t view them as drunken sailors going to bars and laying down IOUs everywhere,” said a person who has advised the company on its dealmaking. “It might look and feel that way, but this is actually a strategy backed up by technology, products, business plans and visibility into what is happening.”

FT : Are weight loss drugs killing off the business lunch?

Are weight loss drugs killing off the business lunch?
Appetite suppressing medicines may be an unsavoury problem for restaurateurs as well as diners

At a recent business lunch, one of the guests — who not long ago would have been busy choosing a second glass of wine — pushed their food around the plate fitfully, before eventually admitting defeat. As expense account meals go, it was not one for the ages.

Other City workers and restaurateurs have told the Financial Times about similar experiences, with dining companions and customers choosing only a single course, sometimes just a starter that serves as a main. Some have recounted after-work drinks parties where the main subject of conversation is also responsible for the newly slimmed features of the gossiping City financiers: the rapid rise in popularity of hunger-suppressing weight-loss jabs.

Restaurateurs, already facing the chill of rising labour costs, are now confronted with another problem: diners choosing to eat less food, less often.

Medicines such as Ozempic and Mounjaro, which are available privately in the US, UK and many other countries, help people lose weight by reducing hunger. Nearly 12 per cent of Americans have used them, according to a recent report from Rand. In the UK, clinical research provider Iqvia estimated 1.4mn people had purchased the medication by April. For many users, the drugs have been life changing, enabling them to improve health and fitness.

But by suppressing appetite, the trend brings a new threat to the already endangered art of the business lunch. 

For many financiers, the weekday lunch has been — and remains — a key part of the job, a place to meet new contacts and develop relationships. Most older executives have a story to tell about how their best successes in securing a client or landing a deal have come from long lunches, some of which become even longer evenings.

“The long lunch provides a chance to go deeper into conversations that drive connection and understanding — the ordering of a coffee may be as much about the desire to continue the conversation as it is about the caffeine,” says Julie McKeen, partner and head of media and entertainment at executive search firm Odgers. “One person shuffling one course of a salad around will unbalance that careful calibration.”

Some users of the medicine are happier to talk about it than others in a business environment, which executives say can already cause confusion over the ordering and pacing of a meal.

Sir Nigel Boardman, former M&A partner at law firm Slaughter and May, who has overseen government inquiries including into the now collapsed Greensill, is upfront about using medication.

“I’m completely open about it. It’s a sensible health measure. It’s a bit like a personal trainer. I see Mounjaro in the same light. A lot of people are a bit embarrassed about it, [as if] it’s a sign that they have no self-control, [yet] they boast about having a personal trainer.” 

He adds: “If the consequence is your business lunch is a bit shorter, so be it.” The only impact on his own lunches is that he matches his dining companion, rather than “wolf my food within 30 seconds and leave the other person” to catch up.

Restaurateurs are noticing changes — such as fewer orders for starters and puddings, and more unfinished plates — that they believe are at least partly fuelled by the increased use of weight loss drugs.

But many are optimistic that even if people might want to eat less, their desire to talk and do business in a more social environment outside the office remains.

Will Beckett, co-founder and chief executive of Hawksmoor, the popular British steakhouse, says the rise of weight loss drugs is something restaurateurs have started to consider. “It’s clearly more prevalent but yet people don’t really talk about it,” he says. “We have started to think about offering something that allows people with less appetite to still go out and enjoy being in a restaurant, because you still want to . . . socialise. You still want to eat delicious food.”

Some places have already introduced smaller portion offerings. Heston Blumenthal’s Fat Duck, for example, has introduced a “Mindful Experience” menu, reducing portions and the price of his signature tasting menu. “I’ve sensed for some time that the food landscape was gradually shifting and people were approaching eating in a new way — looking to feel fulfilled rather than feel full,” says Blumenthal. “The rapid rise of weight-loss drugs is, I believe, only going to speed this up.”

Chef Tom Brown is also shifting his menu at The Capital Hotel towards lighter, more flexible dining. Having used Mounjaro himself, he believes diners can adjust their eating to still enjoy lunch. “There’s still some stigma around using these medications. Personally, I’m happy to talk about it, but I suspect that for others, dining out can actually help keep it discreet”.

Kate Nicholls, who represents restaurants as head of industry body UK Hospitality, says there are now “lots of small plates, lots of sharing and reduced alcohol” across the trade.

But she expects a bigger effect from customers dining out socially, as business clients are more likely to “pay and not eat rather than order one between two or not going out at all”.

“Menus are being adjusted but I don’t think it’s going to be the end of [the] business lunch just a change — in the same way we adjusted to shorter lunches and less booze — the purpose remains,” she says.

Some restaurateurs had already seen a decline in the traditional company card-fuelled corporate lunch. David Moore, founder and owner of Michelin-starred Pied à Terre, says the “business lunch [has] been receding” as a proportion of sales over the years. “We see very little [of] the corporate card coming out at lunch time.” His private dining rooms at lunch are busier, however, with people “talking about AI and takeovers” and holding “closing meals” to celebrate deals. 

Plenty of restaurants say they have seen no impact from the weight loss trend, with others arguing that dieting and portion control have been a factor for many diners for decades. Another insider notes the industry has weathered past fads, including the Atkins and 5:2 diets, and flexibility is key to survival. But with the UK government now looking to extend the availability of weight loss drugs, the effect is likely to be felt more widely.

Charlie Gilkes, founder of Inception group, which owns bars such as Mr Fogg’s, says restaurateur friends “have increasingly said they are noticing spend per head dropping due to this Ozempic craze” but he has not yet seen a reduction in drinking.

“On a positive note”, he adds, “there is some data to suggest some people are losing weight and feeling more self confident and more inclined to go dating so our sorts of places may actually benefit as they are popular date venues.”

In the meantime, there might be other short-term boosts: one insurance executive even tells the FT he is planning an “Ozempic party” before starting on the medicine later this year: a last hearty dinner to eat as much steak as he can before laying down his fork.

FT : Chinese fast-fashion retailer takes on Zara and H&M in London and New York

Chinese fast-fashion retailer takes on Zara and H&M in London and New York
Urban Revivo founder highlights readiness to compete against bigger rivals as China’s consumer brands expand their global presence

Chinese fast-fashion retailer Urban Revivo has stepped up ambitious plans to challenge the likes of Zara and H&M by expanding in London in a revived push into international markets.

The retailer is part of a wave of Chinese companies — from Labubu-maker Pop Mart to EV giant BYD — pushing to “chuhai” or “go overseas” as China’s hyper-competitive markets mature and its economic growth slows.

“Our strategy is to use London and New York as the fulcrum of our globalisation to tap into overseas markets,” said Li Guangming, the company’s founder and chair of its parent company Fashion Momentum Group.

“When we started in China, we had no brand recognition. In London and New York, we have zero visibility; we’re starting from scratch.”

Urban Revivo has opened a 30,000 sq ft store in the city’s Westfield mall, and also has new locations in Covent Garden and New York’s Soho district. It previously had an outlet in London in 2018 but it shut soon after as a result of the pandemic.

Li said the company’s strategy was similar to when it opened its Shanghai store in 2008. “If we could develop in Shanghai, we felt expanding into other Chinese markets outside of Shanghai would be much easier,” he said.

Li founded Urban Revivo’s parent company in 2006 because he “liked clothes and wanted to start a clothing brand”. The retailer has expanded across the mainland where it now has about 400 stores. It has opened 23 stores overseas, with the first opening in Singapore in 2016.

In a two-storey store just off Shanghai’s Nanjing Road, one of China’s most famous shopping destinations, Urban Revivo’s racks of clothing, bags and hats evoke the layout and ambience of its larger western competitors.

“We did learn from Zara’s business model,” said Li, in response to a question about comparisons with the Inditex-owned brand, “just like JD.com in China learned from Amazon’s business model, Nio and Li Auto learned from Tesla, and Huawei and Xiaomi learned from Apple.”

But he said Urban Revivo’s products were more “localised” than those made by some foreign rivals, referring to items tailored to particular styles and fits in a given city or region, and added that China’s demanding consumer environment forced the company to adapt.

“In the past the term ‘fast fashion’ was synonymous with poor quality in China,” he said. “So we prioritised quality.”

Urban Revivo, which is privately held, operates on a much smaller scale than major international rivals. The company confirmed it had revenues of Rmb6bn ($840mn) in 2022 but would not disclose more recent figures. It declined to comment on the prospects of a rumoured IPO.

“We had some pressure last year but things have rebounded this year,” said Li.

Urban Revivo has a target of generating Rmb5bn in revenues outside of China by 2030. That would still be a fraction of the €28bn of global sales last year for Zara, which in 2023 expanded its own presence in Westfield Centre to 57,000 sq ft.

Although the company cites its “fair prices” as an advantage, the clothes are more expensive than some online options in China. Plain white T-shirts in the Shanghai store cost Rmb99, while trousers retail at Rmb199.

One shopper visiting from the central city of Zhengzhou said she preferred the clothes to those with a “Taobao feeling”, a reference to the inexpensive clothing options available on the country’s biggest ecommerce platform owned by tech group Alibaba.

Urban Revivo has also increased its mainland presence, with prominent stores in Nanjing in 2023 and Beijing this year.

“Clearly they are reinforcing their presence in the key commercial areas in China, that’s very public for everyone to see,” said one industry veteran on the mainland, who spoke on condition of anonymity.

While its suppliers are all within China, Li said the company could start manufacturing in Turkey, Morocco and Vietnam.

Li acknowledged the “juan”, or excessive competitiveness, of the mainland market, but said its overseas plans were ultimately driven by long-term factors.

“We must expand internationally as soon as possible,” he said. “Opening stores in Europe will force us to internationalise our products . . . that way we can better prepare for consumer changes in 20 or 30 years.”

“I personally don’t think we are going overseas based on short-term economic or social changes in a country,” said Li. “We’re expanding based on a 30- to 50-year trajectory.”

FT : Turkish anti-corruption raids spark fears of politically driven asset grab

Turkish anti-corruption raids spark fears of politically driven asset grab
Hundreds of seized businesses have been transferred to a state investment fund in the past year

A state investment fund has become one of Turkey’s largest business holdings after an anti-corruption drive transferred hundreds of private companies into government hands, raising concerns of a politically-motivated asset grab.

The corporate investigations and raids have rattled leading business figures and spawned multiple theories as to why they are happening — not least because President Recep Tayyip Erdoğan’s ruling Justice and Development party has previously used the State Deposit Guarantee Fund (TMSF) to seize the assets of its political opponents.

“The AKP has long used the TMSF both as a tool to regulate the economy and to channel resources towards companies close to itself, while sidelining those it views as rivals,” said Berk Esen, assistant professor of political science at Istanbul’s Sabancı University.

The government may now be “trying to reshape who controls the economy, to reconfigure Turkey’s corporate structure”, Esen added.

The Can Holding conglomerate, glassmaker and soda ash producer Ciner Group and Istanbul Gold Refinery are among the latest companies caught up in the probes, which have sharply increased the number of businesses held by the TMSF in just 12 months.

The TMSF, which acts as trustee for companies while they are investigated, currently controls 1,056 confiscated businesses, compared with 675 a year ago, according to TMSF figures. The businesses span the full range of Turkey’s economy, from media, finance and energy to the Kasımpaşa football club — Erdoğan’s boyhood team.

The probes and accompanying arrests have unsettled Turkey’s private sector by raising fears about the security of property rights and selective application of the law by courts. That is especially so as Erdoğan is believed to be seeking to extend his hold over Turkey for another presidential term after more than two decades of increasingly autocratic rule.

Turkish businesses are already under pressure from a struggling economy, and the chilling effect of a crackdown on the country’s largest opposition party, which began in March with the arrest of Istanbul mayor Ekrem İmamoğlu on corruption charges. Critics say the charges are politically motivated.

The simplest explanation for the probes and asset seizures, analysts and business leaders say, is that the government wants to boost its standing among voters by showing it is tough on all kinds of corruption. Its aim is to demonstrate that Turkey’s courts are independent and that prosecutors are not singling out the opposition for legal action.

Buttressing this theory is the high-profile detention last week of 19 media celebrities suspected of drug use, which some analysts described as “crackdown theatre” designed to show the government’s resolve to cleanse society of criminality.

The music and television stars were released after drug tests and, to date, no charges have been filed. They included Hadise Açıkgöz, Demet Evgar Babatas and Berrak Tüzünataç.

A darker possibility, analysts said, is that Turkey’s struggling economy has increased the need for Erdoğan’s ruling party to fund patronage networks ahead of the next presidential elections, scheduled for 2028.

“The unspoken fear of the business community . . . is that the probes are not a ‘clean hands’ operation . . . but a full frontal attack on the corporate sector,” said Atilla Yesilada, an Istanbul-based analyst at the consultancy GlobalSource Partners.

The worry is that Erdoğan’s goal is “to route funds either directly to the Treasury via TMSF, or to reshuffle capital from bosses to loyal hands”, Yesilada added. “I am truly frightened to suggest that these busts could continue for years to feed the regime.”

Originally set up in 1983 to protect Turkish bank deposits, the TMSF was given an expanded role after a failed coup attempt against Erdoğan in 2016 that led to a wave of arrests and the purge of tens of thousands of public servants. More than 1,300 companies suspected of being linked to the plot, which Ankara blamed on the late preacher Fethullah Gülen and his followers, were confiscated. The fund was tasked with selling the companies or liquidating their assets.

According to the TMSF, more than 600 of these companies were eventually returned to their original owners following judicial investigations. The rest were sold — sometimes, critics allege, to government allies at favourable prices.

New regulations passed in February strengthened the TMSF’s legal framework, with “strong suspicion” of crimes such as money laundering sufficient for a court to order a company to be placed under TMSF trusteeship.

One of the first large companies seized after the new legislation was fintech unicorn Papara, which prosecutors alleged in May was used as a conduit for illegal gambling and betting.

In the indictment released last week, prosecutors asked the court to consider a 28-year jail sentence for Ahmed Faruk Karslı, founder of the electronic payments company, which has been valued at more than $1bn.

The latest spate of corporate raids began on September 11 when prosecutors ordered the seizure of 121 companies belonging to Can Holding, an owner of major media outlets and schools that began in the tobacco business.

Detention orders were issued for 10 people, including the group’s principal owner Kemal Can, on charges of smuggling, money laundering and tax evasion, based on findings by Turkey’s financial intelligence unit, MASAK.

Among the assets seized was one of the country’s last independent broadcasters, Haberturk Media, which owns news station Haberturk and Bloomberg HT TV that operates in Turkey under a licensing agreement with Bloomberg.

Three weeks later, on September 29, the probe unexpectedly expanded when some of the Turkish assets held by conglomerate Ciner Group were also confiscated on allegations of fraud linked to its sale of Haberturk Media to Can Holding late last year.

Prosecutors said they had “strong suspicions” that the deal was part of money-laundering activities, even though regulators had cleared the transaction only months before. Furthermore Kemal Can said in leaked testimony to the prosecutor’s office that he had carried out the media deal based on “the counsel of senior government officials”.

Ciner Group, which also owns UK-incorporated WE Soda, one of the world’s largest producers of soda ash, a key raw material used in industrial processes such as glass manufacturing, declined to comment. WE Soda is not implicated in the investigation. Representatives of Can Holding were not available for comment. The TMSF did not respond to requests for comment.

In the latest anti-corruption raid, Turkish police last week detained 21 people linked to Istanbul Gold Refinery, on charges of alleged fraud. IGR, which is among Turkey’s five biggest industrial companies, did not respond to requests for comment. The London Bullion Market Association said last week it had initiated an “incident review process” and had requested a formal statement from IGR.

“Nobody seems to know what is going on, but the corruption crackdown raises many issues,” said Wolfango Piccoli of Teneo, a consultancy.

Among them, he said, is the quality of Turkey’s regulators, given that they cleared the Can media deal only for it to be investigated by prosecutors soon after. Another issue is the independence of TMSF trustees, given that they control assets that were valued by the fund at TL328bn ($10bn) at the start of this year.

Whatever the reasons behind the clampdown, the mere fact it has happened gives a signal.

“If I had to speculate, it’s about Erdoğan sending a message,” Piccoli said. “There are no untouchables.”

FT : Gerhard Richter at Fondation Louis Vuitton review: a provocateur who duels

Gerhard Richter at Fondation Louis Vuitton review: a provocateur who duels with everyone
A retrospective in Paris makes for a surprisingly personal journey through history with this purportedly impersonal artist


Most elderly painters wish to die standing at the easel, and some come close. Ninety-seven-year-old Chagall died instantly of a heart attack on leaving the elevator from his studio. Ninety-one-year-old Picasso painted until 3am on a spring Sunday and died hours later. Ninety-three-year-old Frank Auerbach’s models were still sitting for him in the days before his death last November. 

Gerhard Richter, 93, wants none of that. Provocative to the end, in 2017 he announced his oeuvre of paintings complete, and laid down his brush. It’s rare for a painter to do this, and although handling heavy squeegees for his abstractions had become difficult, many great artists, Matisse famously, overcame infirmity and continued. 

Instead, Richter implied that the will to paint is controllable, that painting is a job from which one retires, a cerebral, considered thing. His gesture of withdrawal refuted romantic ideas that a painter compulsively expresses himself, and confirmed the extreme order with which he approached his art.

Similarly curating his early work, Richter destroyed everything before 1962 and declared “Table”, depicting a photograph of a furniture advertisement scrawled over with paint to render it hardly visible, number one in his catalogue raisonné. This aggressive tabula rasa, wiping the slate to start anew, opens Fondation Vuitton’s sweeping, staggering retrospective, and heralds much to come — “in my beginning is my end.”

Richter arrived in Düsseldorf in 1961 after a childhood under Nazism and art school in communist Dresden. He knew two things: first, he would forever distrust systems, ideologies, extreme emotional expression, any claims for a defining image, and second, he had to begin again, as Germany itself had to in 1945, and as painting must to assert itself in a postwar photographic age. 

He succeeded quickly, with the 1960s monochromes based on innocuous family snapshots: distorting photographic sources with smudgy impasto, they questioned, through the grotesquerie of paint, the apparent innocence of those complicit with Nazism among his own relatives. A superb presentation shows how painting an image at one remove — inaugurating a lifetime’s practice — allowed Richter to face history close-up.

Hugely enlarged and with brash thick painterly effects, “Family at the Seaside”, based on a holiday snap of his beaming father-in-law hugging his children as waves rush in, resembles a movie horror still. Richter did not then know that Dr Eufinger — the father of his then wife Ema Eufinger and “an authoritarian whom I really hated at times” — had enthusiastically participated in the Nazi programme of forced sterilisations. That ignorance only emphasises the point that all his German generation felt morally fatherless, aware despite near-ubiquitous silence that their parents had supported Hitler. 

“Family” hangs with “Tante Marianne”, Richter’s vacant-looking teenage aunt cradling the artist as a baby; she was a victim of the Nazi extermination of psychiatric patients. Here and in “Onkel Rudi”, a grinning Wehrmacht officer (“he was very stupid”) killed on the western front, adulated at home, Richter softens outlines, dilutes shadows, flattens surfaces to achieve hazy, pathetic effects, also present in “Horst with Dog”, Richter’s father holding a fluffy pet, the pair sharing flimsy curls, idiotic gazes. One almost pities this hapless clown, a former Nazi without prospects returning from war to find antsy teenage Richter ruling the roost. 

Recognised immediately for their technical brilliance, the tragic tonality of these grey pictures deepens with time. Indeed Richter’s trademark blur — fundamental also to his abstractions — concerns passing time, mists of memory, fleeting perception, as well as his ambivalence about almost everything: “my own relationship to reality . . . has a great deal to do with imprecision, uncertainty, transience, incompleteness . . . I have no programme, no style, no direction . . . I am inconsistent, non-committal, passive; I like the indefinite.”

So, in this largest ever gathering of his work, Richter shape-shifts his way across Fondation Vuitton’s four floors, through ever more daring takes on photo-based realism, innovative abstraction so cool it’s hot, computer-generated minimalism, distorting glass and mirror pieces, random works on paper up to the present (he continues to draw). 

Every now and then, the way differing works feed one another stuns. “Betty” (1988), an arresting realist portrait of the artist’s daughter, concentrates on her twisting shoulder, ornamental floral jacket, blond hairdo, as she turns away to study a grey background — one of her father’s monochromes. 

From the same year as this vision of easy youthfulness, the grisaille group “18 October 1977” unfold as if in slow motion, painted images from murky press shots recording the lives and suicides/murders of three young Baader-Meinhof terrorists found dead that day. 

In turn, these eerily neutral works lead into 1989’s sombre enveloping black-and-white abstract diptychs “January”, “November” and “December”, made as a broken Germany was reuniting in capitalist triumph.   


Tightly curated, the show never palls, taking in German and world events — in “September” (2005), the 9/11 Twin Towers are subsumed in veils of icy blue paint, loss and fear suspended, unresolved — until, when you reach Richter’s final painting, a luscious purple/green “Abstract Painting”, you find you have made a surprisingly personal journey through history with this purportedly impersonal artist. 

Fiercely competitive, Richter duels with everyone, living and dead. The smudgy grey still life “Toilet Paper” (1965) answers Warhol’s commodity culture celebration “Brillo Box” from the year before. A Duchamp parody portraying Richter’s first wife nervously walking downstairs “Ema (Nude on a Staircase)”, and “Annunciation after Titian”, five increasingly abstracted renderings of Venice’s 1535 “Annunciation”, are deliberate failures, dramatising what contemporary painting can no longer be. Meanwhile slick, smooth, garish, monumental abstractions such as “Faust” (1980) — once adorning Deutsche Bank’s Wall Street office — swipe at gaudy pop and the legacy of emotive abstract expressionism.

But Richter is greedy and wants all the tunes. Around 1985, he developed his own distinctive abstract gestural manner, slowly gliding a squeegee across wet paint, building up, scraping, removing layers, balancing precision and chance, to produce iridescent out-of-focus surfaces which beguile the eye: flat and deep, rippling and jagged. They are sumptuous, formally dazzling and extremely expensive (record price £30.3mn) though not, at least to me, moving as de Kooning or Rothko abstractions stir the heart. 

Richter himself was the first to question them — “in one sense, abstract art is absolutely nothing, stupid. In 100 years, maybe people will just think it’s garbage” — but, whether he believed, doubted or both, they are a mighty part of his oeuvre and vitally complement the shades of grey elsewhere. Two dozen glow here: highlights are Fondation Vuitton’s “Forest (3)” (1990), a bleary black screen revealing bright shimmers beyond, and the “Cage” series’ striated acid greens, pale yellows, icy silvers, classical and balanced. 

This is named for minimalist composer John Cage, whose “I have nothing to say and I am saying it” could be an epitaph for much but not all Richter. We would know, without the title, that the harsh scarlet and black surfaces, no light piercing through, in the “Birkenau” quartet (2014) connote something terrible. They are the result of Richter’s repeated aborted attempts to paint the Holocaust, until, returning in the language of abstraction to his early method of blurring photographs, he finally entirely overpainted four little-known images of bodies piled up and women on their way to the gas chambers of Auschwitz — an erasure of an erasure, the unthinkable unpaintable. 


But we are there. The paintings hang opposite mirrors looming as high, and we see ourselves in a tunnel of hell against this abstraction of terror: forced to confront history.

Fortunately, the show doesn’t end there: six “Abstract Paintings”, 2016-17, some splendid rainbow harmonies, others meditations of varied mark-making around a single hue, deep crimson, radiant yellow, bring hope and joy, as if Richter in his swansong abandons himself to elegiac beauty. It is hard to tear yourself away from these last paintings, and must have taken an ascetic’s discipline for the artist to tear himself away from painting them.

October 17-March 2, fondationlouisvuitton.fr