Finance is a really odd section for me to have. I don’t come from a finance background, I have no interest in fin-tech. Yet it makes its appearance here on this blog.
When thinking about this category, I decided to reflect on why its here. It’s usually where curated content sits, rather than my own ideas.
The reality of life in the west is that everything has become financialised. As I write this as people think about web 3.0, they are thinking about payment systems first and working about utility later. This implies that the open web we know won’t be part of the metaverse in terms of ideas or ethos.
Instead of economic growth consumer spending depends on different ways of creating credit. Its no accident that delayed payments finance company Klarna is the biggest thing in European e-commerce at the time of writing this page.
Back when I started writing we were heading into the financial crisis of 2008, the knock on effects of that could still be felt a dozen years later and was a contributing factor to Brexit and Trump victories. The ‘occupy’ movement was catalysed by the financial crisis and then turned into something else. For instance it became a pro-democracy movement in Hong Kong.
We had the implosion of financial brands like Lehman Brothers and the Royal Bank of Scotland. This created a lack of trust in business, the media and the government. We are still seeing that play out today, from cryptocurrency to conspiracy theories and a lack of trust by the public in experts.
RUSI put together a great presentation on the nature of illicit finance from the perspective of terrorism and terrorist states including Russia and the People’s Republic of China. The foundations of illicit finance seems to be the offshore financial structures that were build up by the United Kingdom in the post-war period to capture the EuroDollar market.
In some ways this lecture on Illicit finance felt very familiar. It is exactly the same structures that John Le Carre outlined in his post-cold war novel Single and Single. The nature of illicit finance was also covered in Michael Oswald’s documentary The Spider’s Web – Britain’s Second Empire. This linkage was not lost on the audience attending the talk.
The concerns about illicit finance now are because these structures are being used to attack democracies at their core and buy influence for hostile states such as Russia and China. It is like the west is slowly awakening from a slumber as its enemies try to slit their throat.
Riding the slow train in China | The Economist – As Mr Xi enters his second decade as supreme leader, his sternly paternalist version of Communist Party rule seeks to draw ever more legitimacy from the provision of customer-friendly public services, supplied via modern infrastructure. In the case of China’s railways, at least, that promise of order and efficiency has been kept.
Wintershall’s empty bank accounts expose plight of western companies still in Russia | Financial Times – “We helped create a very powerful and dangerous Russia without being cognisant of the risk,” he said, while acknowledging that the country had done its best to remedy this in the past 12 months. And he said BASF risked repeating its Russian mistake in China. “What I’m really surprised about, and almost upsets me, is that while this is all happening . . . BASF decides to invest €10bn in China,” he said, referring to a planned chemicals complex that will be the company’s largest ever foreign investment. “That’s the most upsetting part,” he said. “That we don’t learn from it.” – this quote from Thomas Schweppe of 7Square nails the problem neatly
Finance
Thousands of offshore companies with UK property still not stating real owners | Tax havens | The Guardian – wealthy businessmen, Gulf royalty and states such as China have legally bought up billions of pounds of mostly London property, often via jurisdictions such as the British Virgin Islands (BVI) and the Channel Islands. Stephen Abbott Pugh, head of technology for Open Ownership, a non-governmental organisation focused on beneficial ownership transparency, said the fact that so many of the offshore companies are declared as owned by other companies or trusts means “the public still aren’t able to easily discover the people behind those companies in many cases”. “With access to many European beneficial ownership registers being shut off following a 2022 court ruling, the Register of Overseas Entities shows how useful public data is for tracking how offshore money is used to buy assets,”
Health
The 1964 House Report on how smoking affected the health of Americans went around the world. Sales dropped 30 percent in a week, and then picked up back to normal after existing smokers addiction kicked in.
How Microsoft’s Stumbles Led to Its OpenAI Alliance — The Information – For more than a decade, Microsoft Research, the company’s in-house research group, has touted artificial intelligence breakthroughs such as translating speech to text and software that could understand human language or recognize objects in images. But the company’s effort to commercialize its AI research moved at more of a crawl – this was at the centre of Microsoft’s innovation narrative for the best part of two decades. It’s embarrassing
Inside the secret Facebook groups where women review men | Dazed – then there’s the whole other side of ‘Are We Dating The Same Guy’, which is a lot more ethically ambiguous. Is it ever OK to publicly share someone’s photos and private conversations without their consent? Or in other words, to ‘doxx’? There’s a clear power differential, but if genders were reversed and guys were exposing females to strangers on the internet, it’s unlikely we’d see the group in such a positive light. “If a boy posted me and people were writing ‘red flag’ in the comments, I would genuinely be quite hurt,” says Tara, 20. She notes how, sometimes, users make particularly unfair remarks: for example, they’ll lambast a date for having “shit chat”, or “[talking] like a 60-year-old dad”.
Getting Personal With State Propaganda – China Media Project – Nanchang Aviation University (南昌航空大学), located in China’s southern Jiangxi province, announced that it had launched the “Jiangxi International Communication Research Center” (江西国际传播研究中心) in cooperation with the China Media Group, the state media conglomerate formed in 2018 directly under the CCP’s Central Propaganda Department. According to coverage by China Education Daily, a newspaper directly under the Ministry of Education, the new center is an experiment in combining central CCP media and universities (央媒+高校) to carry out international communication by using the “overseas student resources” (留学生资源) of the university.
The Patagonia vest recession was a phrase that I first heard touted by Scott Galloway to encapsulate the economy in 2022. In most recessions, the first sectors to go under are construction, retailing and manufacturing – blue and pink collar working class people suffer the blunt of lay-offs and site closures due to recession.
The kind of vest thought of when one talks about a Patagonia vest recession. It is called a Better Sweater vest and was popular with media firms, technology companies and investment banks as employee schwag.
recession, in economics, a downward trend in the business cycle characterized by a decline in production and employment, which in turn causes the incomes and spending of households to decline.
A recession generally isn’t felt uniformly across the economy. It doesn’t affect all households. In the past, the middle class might be affected but not as severely affected as working class people. My Dad had managed to move off the shop floor and into an office job in the shipyard as a planner. He was made redundant because he worked in heavy industry and he was in a minority compared to the thousands of other blue collar workers let go.
Not all businesses experience actual declines in income, for instance accountancy firms, business consultancies and change management firms may find a high demand for their services. However, there is a general expectation about the future being less certain during a recession. This causes businesses to delay making large purchases or investments and possibly look to reduce costs to conserve cash.
In recessions, the output decline can be traced to a reduction in purchases of durable household goods such as computers and washing machines by consumers. This drives a corresponding decline in corporate purchases of machinery and other equipment.
If the companies aren’t already running ‘just-in-time’ there reduction in additions of goods to stocks or inventories. Where ‘just-in-time’ is in place, the client reduces their forecast demand to their supply chain driving a similar effect. The greatest effect is likely on inventory; businesses stop adding to their existing inventories and become more willing to draw on them to fill production orders. Inventory declines thus have a double impact on production volume as it filters through the supply chain like a Mexican wave.
So what happened?
But the Patagonia vest recession was different. A number of things happened:
Technology stocks and start-ups had been swept up in a decade of irrational exuberance in terms of business values
Funding suddenly declined for startups. This was partly due to interest rates and a realisation that crypto-currencies weren’t worth what many investors had assumed. This led to a raft of redundancies
Crypto companies started falling one after the other. Prominent exchange FTX and related investment fund Alameda Research go under with allegations of fraud. Their rival Binance is ensnared in legal issues too
Cloud software firms suddenly find that their pay-as-you-go model can result in sharp cash flow declines which affect their profits
Big technology companies had staffed up to meet the COVID-19 related demand, found themselves with an employee overhang. This particularly affected e-tailing and cloud services business. They cut back on staff as they release poor financial results. BUT, the amount of people cut as a percentage was still below the proportion of head count Microsoft would have let go back when it practiced stack ranking. The mainstream media focus on the big numbers rather than the small overall proportion of lay-offs. Secondly those getting made redundant are finding it a reasonable market to get work outside the technology sector
Activist investors object to what they consider to be more indulgent projects like Meta’s deep investment in the future metaverse, which is a very long term bet
Meanwhile, services and manufacturing industry kept ramping up to meet supply-chain related challenges and meet latent demand. But had problems getting staff. You have restaurants that open up limited hours due to their problems hiring. Manufacturing businesses have been hoarding staff, because they know how hard it is for them to recruit
Inflation in the US is starting to come under control as supply chains started to balance out
Of course, all of this doesn’t mean that the Patagonia vest recession won’t bleed on to Main Street, but at the start it looked very different.
The Patagonia vest boom prior to the Patagonia vest recession
To the general public, awareness of the Patagonia vest as an emblematic garment of class came from the press photos taken at the Sun Valley conference hosted by private investment firm Allen & Co. which built up a bit of a reputation in terms of ‘speed dating’ for mergers and acquisitions deals. Media titans like the Murdoch family met Silicon Valley CEOs and Jeff Bezos of Amazon. Telecommunications was represented primarily through the cable TV company executives who attended.
Amazon founder Jeff Bezos decided to buy the Washington Post when he was at Sun Valley. It was also where the Time Warner | AOL merger was cooked up.
Cameras aren’t allowed inside the conference which operates in a Chatham House-style arrangement. So press photographers could only take pictures when people were arriving or leaving the conference centre. Sun Valley sat at the nexus of a media and technology sector boom over almost two decades. The bulk of the media photos showed people walking cropped at the knees or their grotch, which focused readers attention on the tops that they were wearing. And a uniform emerged to the general public. The uniform was the Patagonia vest to deal with the cool early morning and early evenings of Sun Valley. These vests were given out some years by Allen & Co.; but the Patagonia vest has extended itself far beyond Sun Valley.
It became such a cultural touchstone that the Sun Valley conference complete with vests was lampooned in a story arch of Succession.
From working with dot com clients to when I worked at Yahoo!, Silicon Valley fashion was bifurcated in nature. The reality of Silicon Valley couture is that many people wore a t-shirt jeans and layers like hoodies. Footwear would vary somewhere between sneakers and trekking sandals.
But the ‘MBA class’ of professional managers tended to wear collared shirts, ‘smart’ jeans or chinos. They may have worn a sleeveless pullover or fleece vest. Their venture capital counterparts who where probably their MBA class colleagues wore a similar uniform, with a bit more of lean towards Ralph Lauren country club friendly shirts or polo shirts.
Corporate branded wear started with bags. I had my share of corporate branded Timbuk 2 bags. Different engineering projects would have celebratory t-shirts for things like hack days. Eventually we started to see branded corporate wear, from the cringeworthy chambray or scratchy polo shirts issued to booth staff at an exhibition to hoodies and fleeces. I knew engineers who bragged about being dressed almost head to toe (sweatshirt material top, t-shirt, boxers and socks) in schwag that they had picked up for free as an anti-fashion statement.
You can see these dual styles in the TV show Silicon Valley. Coming from a creative agency background, I felt more at home in the hoodie wearing crowd.
Secondly, there was a cargo cult amongst try-hards in the early to mid-2000s there was a move towards turtle necks with Silicon Valley types looking suspiciously like architects as they tried to ape Steve Jobs. There has been a similar buzz has surrounded Allbirds sports shoes
The finance sector had its own transformation. Early dot com era west coast-based tech focused investment bank financiers such as Frank Quattrone mirrored the east coast convention of the tailored business suit, usually in grey with a conservative tie and pocket square. This would be paired with a set of brown shoes, usually loafers. You could buy the look at Armani, Barneys or Brooks Brothers depending on your budget.
The 2008 Great Recession hit the finance centre like a shockwave. There was a need to dress down. A few things drove this:
An Armani suit is an obvious target when you have Occupy Wall Street camped outside your place of work
Wall Street had to modernise and attract new types of talent and competed against tech firms
The need to mirror the look of the hedge funds and technology companies that investment bankers wanted to do business with. They already stood out with their east coast vibe, the outfits communicated that ‘actually we’re just like you’ with varying degrees of success
The look has morphed into a relaxed yet sophisticated uniform that drew on preppyness, or the Ivy League look and the country club vibe evoked by Silicon Valley VCs. This resulted in a grey or navy fleece vest paired with a button-down, chino pants, and maybe even leather sneakers. It fitted in with weekend wear in more high class neighbourhoods and didn’t scream privilege in the same way that traditional Wall Street did.
However this became a power validation all of its own, dubbed the “Midtown Uniform” by many for its popularity throughout Midtown Manhattan as the business casual look rolled across the cultural wallpaper of Wall Street.
Expired?
Patagonia haven’t enjoyed their vests being the punchline of a joke. They are a mission led company that looks to be sustainable and environmentally friendly. They’ve been described as the conscience of the outdoor industry. Patagonia doesn’t want its products sold on Amazon, not because it’s luxurious and exclusive. But because Patagonia believes that Amazon encourages thoughtless consumption and is bad for the environment. Being seen as the uniform of the privileged didn’t go down well. So in April 2019, Patagonia announced that it wouldn’t provided corporate branded clothing to financial institutions or fintech companies, preferring to focus on mission-led environmental businesses instead. Given its iconic status within these sectors, the news was given the kind of coverage that would usually be reserved for an uncharacteristically large drop in the S&P 500 index.
The case against fintech businesses is down to their rapidly expanding energy footprint, which I have covered in depth elsewhere.
While a clear successor to the Patagonia vest hasn’t become apparent yet, there are brands looking to take their crown such as
Cotopaxi – who are environmentally friendly, but also corporate friendly
North Face – have been doing some interesting work in more environmentally friendly materials and already well known in the corporate branding space
SCOTTeVest – famous for being traveller-friendly. It comes with routing for your headphone cables, a plethora of pockets and charging wires. Their CEO called the Patagonia stance PR BS
Grandfathered in
Secondly, Patagonia decided that it wouldn’t leave long term customers in the lurch, which probably means that your favourite investment bank or big tech firm is safe from the customer purge.
According to Corley Kenna, senior director of global communications at Patagonia, customers and the press had inquired as to “whether we’re leaving ‘bros out in the cold.’” Kenna confirmed again that long-term customers would be grandfathered in.
And those left in the economic cold can still enjoy a Patagonia vest recession. I am thankful that it wasn’t called the Carhartt or Chore coat recession signalling a creative class layoff-led recession.
I subscribe to all kinds of weird and wonderful newsletters to get content for these posts, the idea of a Ukraine beta test was inspired by this post on SOFREP: Combat Sandbox: Ukraine’s ‘MacGyver Army’Tests Western Weaponry | SOFREP. SOFREP is written a self-described team of a team of former military, intelligence and special operations professionals. While some of their stories are repeats of tabloid fantasies: UK Apache helicopter gunships for Ukraine, they also provide some smart editorial thinking.
Western military ideas were designed to run against Russian and Chinese campaigns. The Ukraine beta test seems to have failed for Russia’s hybrid warfare concept, when it was executed on a large scale basis. Russia were trying to execute on an idea first outlined by an American theorist Frank Hoffman in his work Conflict in the 21st century: the rise of hybrid wars for a think tank. The Russians themselves call it ‘non-linear warfare‘. After careful preparation, Russia used non-linear warfare to capture Crimea and parts of eastern Ukraine in 2014. On the surface of it, a successful Ukraine beta test for Russia. Yet 7 years later on a larger scale approach Russia failed and is having to go back to older ways of doing things.
Part of the Ukraine beta test works because of the Ukrainians and everything that they have on the line. Part of it was down to better tactics by Ukraine compared to Russia and at least some of which was down to the use of western weapons systems used in an innovative way.
There has since been a Ukraine beta test of western military ideas:
Delta is a system for collecting, processing and displaying information about enemy forces, coordinating defense forces, and providing situational awareness according to NATO standards, developed by the Center for Innovation and Development of Defense Technologies of the Ministry of Defense of Ukraine, founded in 2021 at the base of the A2724 military unit, which, in turn, was created in 2015 from the volunteer group Aerorozvidka.
Delta is used for planning operations and combat missions, coordination with other units, secure exchange of information on the location of enemy forces, etc. In particular, Delta has integrated chatbots developed by the Ministry of Digital Affairs – “eVorog” and the Security Service of Ukraine – “STOP Russian War”.
The system is equipped with modern means of monitoring suspicious activity. From 2021, allied cyber units are constantly scanning the system for vulnerabilities, intrusion attempts, data leaks, and more.
According to the developers, Delta provides a comprehensive understanding of the battle space in real time, integrates information about the enemy from various sensors and sources, including – intelligence, on a digital map, does not require additional settings, and can work on any device – laptop, tablet or even on a mobile phone. Roughly speaking, Delta is such a modern real-time command map and troop control center
It has taken years for western powers to build comparable systems. Delta is powered by a mix of human intelligence, Ukrainian open source intelligence and also includes NATO electronic intelligence and satellite imagery. Integration of NATO for Delta is a Ukraine beta test in itself. NATO will learn from the successes and challenges of Delta. At a tactical level the idea of a Ukraine beta test shows how well weapons systems work under real-world ‘near peer’ war conditions, giving them valuable understanding of what systems are most effective against Russian systems.
The Ukraine beta test shows where the gaps are in NATO systems. For instance the Gepard tank is a short range anti-aircraft system phased out by Germany a decade ago, that has shown the value of similar gun based systems against drones and low flying aircraft as a cost effective method to engage.
All of which makes me wonder why the arms industry aren’t taking the obvious step and ‘donating’ trial systems to the Ukrainian military for a Ukraine beta test to show their mettle and value to western clients? The closest that we’ve seen to this is the GLSDB. The GLSDB is an existing Boeing bomb mated to recycled rocket motors. But the arms industry could do so much more as part of a Ukraine beta test.
China
The politics of China’s Belt and Road workers in Africa – Asia Times – strong empirical evidence that democracies host significantly fewer Chinese workers than autocracies, all other things being equal. The results hold up using a variety of different statistical modeling techniques. In Ghana, a vibrant democracy, we found that both the country’s main political parties faced pressure to ensure that Chinese-built projects delivered local jobs. For example, in the construction of the Bui Dam, the agreement between Sinohydro, the Chinese state-owned behemoth contracted to complete the project, and the Ghanaian government stipulated that a certain proportion of the workforce would be local. In Algeria, on the other hand, Chinese labor has been used to quickly complete projects seen as politically expedient. Algeria is a “hybrid” regime that was ruled by a single man, Abdelaziz Bouteflika, from 1999 to 2019. Even when domestic discontent over Chinese workers prompted measures to limit their presence, the measures were not implemented. Our findings have several important implications. First, host country agency is important. Host governments have the ability to ensure Chinese companies hire locally. Second, projects that hire locally may bring more long-term economic benefits to host countries. This can happen both directly through the jobs that they create, and via knowledge and technology transfers into the wider economy. Our analysis, therefore, suggests that the wider developmental benefits of Chinese-built infrastructure may actually be stronger in democracies than in autocracies
China is flashing red on the skewed consensus indicator | Financial Times – The only strong standout finding is on China, around which a strength of current optimism has no offset. Morgan Stanley didn’t think to even offer one. It’s a Goldilocks scenario with no bears – this doesn’t make sense. Wall Street seems to have an irrational belief in China as a market. For example: China moves to take ‘golden shares’ in Alibaba and Tencent units | Financial Times – expect this is to be about more than censorship. More like military – civil fusion – also likely to have big implications for media engagement on social platforms
Ryanair unsure if softening in UK demand here to stay – “There’s no doubt that the UK economy by any stretch of the imagination, in terms of going into recession or whatever, is different than the other European economies,” – interesting that they are concerned about travel overall rather than thinking about a pivot to them from BA etc
Is this the end of the bachelor pad? – The Face – the bachelor pad has been gobbled up by the economy. Nearly a third of 20 – 34-year-olds in the UK are living at home with their parents. I did feel a bit triggered by the author’s dismissal of stainless steel as a material and good quality furniture like an Eames lounge chair as being emblematic of toxic masculinity. But the economic points are very valid
Mainland rush to return to Hong Kong, Macau post zero-Covid nears 1 million | South China Morning Post – travel demand has been growing since China relaxed its border restrictions in December, with around 998,000 mainland residents applying for travel documents to Hong Kong or Macau, and 353,000 people applying for a new passport – expect Hong Kong fatalities to surge. Hong Kong has an even older population than mainland China. There is a corresponding low vaccination rate amongst them, partly down to vaccine distrust due to often Chinese orchestrated misinformation
Wokeness as prairie fire – by Noah Smith – Noahpinion – Anyway, with all that said, the point of this post is that wokeness’ role in American society is evolving as we move into the early 2020s. In particular, I see three simultaneous trends:
An increasing anti-woke pushback from conservatives
Increasing entrenchment of woke ideas and practices within liberal institutions
A general exhaustion with wokeness among thought leaders and young people
Who Are You Calling a Great Power? – Lawfare – trying to define great power status is difficult in ways that are evident from the mismatched assortment of candidates that emerge in the recent literature. Power varies across issues and domains in ways that are glossed over when international politics is reduced to great power competition. It can be a convenient shorthand, but policymakers should not lose track of the nuances: Who counts as a great power may vary from issue to issue
Saudi Aramco bets on being the last oil major standing | Financial Times – What is often forgotten is how oil is also needed as a feedstock for materials. You want electric batteries they need a plastic based insulator and cables need plastic insulation. Mercedes et al tried soy plastic based cable insulation in the late 1990s and the wiring looms of these cars have had to be remade. All of which will be needed if you want a LiON or hydrogen economy. Then there are seals, bushings, coatings, medicines etc all of which rely on hydrocarbon feedstocks. Oil isn’t just about carbon emissions. Aramco is being prescient about this, Companies like Shell etc are increasingly looking at plastics manufacturing for exactly the same reasons
Lidl, Zara’s owner, H&M and Next ‘paid Bangladesh suppliers less than production cost’ | Retail industry | The Guardian – Lidl, Zara’s owner Inditex, H&M and Next have been accused of paying garment suppliers in Bangladesh during the pandemic less than the cost of production, leaving factories struggling to pay the country’s legal minimum wage. In a survey of 1,000 factories in the country producing clothes for UK retailers, 19% of Lidl’s suppliers made the claim, as did 11% of Inditex’s, 9% of H&M’s and 8% of Next’s. A majority of suppliers of those four brands, and also of Tesco and Aldi, told researchers that almost two years after Covid-19 was declared a global pandemic they were still being paid at the same rate – despite soaring raw material and production costs in the interim
EU draws up plans to stockpile scarce medicines | Financial Times – “a systemic challenge with numerous vulnerabilities”, including overreliance on a few countries for certain products, and the way drugs are regulated and bought. The EU’s Health Emergency and Response Authority (Hera), established in response to the Covid-19 pandemic, could organise joint procurements for several countries to improve supply. Health commissioner Stella Kyriakides outlined the plan in a reply to Greek health minister Thanos Plevris, who had demanded action in a letter to her last week. “There is a shortage in certain branded drugs containing paracetamol, antibiotics and inhalers . . . particularly for children,” Plevris said at a news conference last week where he announced a series of measures that would tackle the shortages. – because China
UK supermarket uses facial recognition tech to track shoppers – Coda Story – In July, civil liberties group Big Brother Watch filed a complaint to the U.K.’s Information Commissioner’s Office against Southern Co-op and Facewatch — the company providing the surveillance system. Joshua Shadbolt, a duty manager at the Copnor Road supermarket, told me that high levels of theft have forced him and his colleagues to hide, for instance, all the cleaning products behind the till. Without the technology, he fears customers would be given free range to steal. Since Covid restrictions were lifted in the U.K. in early 2021 following a third national lockdown, shoplifting has been on the rise. This is likely to have been compounded by a cost-of-living crisis. Still, even if theft has not reached pre-pandemic levels, for Shadbolt, the biometric camera has been an effective and necessary tool in tackling crime. For Big Brother Watch, the camera is a breach of data rights and individual privacy. Every time a customer walks into a shop or business that uses Facewatch’s system, a biometric profile is created. If staff have reasonable grounds to suspect a customer of committing a crime, whether it’s shoplifting or disorderly conduct, they can add the customer to a Facewatch list of “subjects of interest.” Facewatch’s policy notice says that the police also have the power to upload images and data to Facewatch’s system. Anyone uploading the data, which includes a picture of the suspected person’s face, their name and a short summary of what happened, must confirm that they either witnessed the incident or have CCTV footage of it. But the policy does not indicate what the bar for “reasonably suspecting” someone is.
Group B rallying was the stuff of my childhood. Its history was complex. In the 1970s the motorsport governing body FIA was in dispute with formula one team owners. As a result the FIA reformed one of its own committees related to formula one called CSI, in 1978, into the autonomous Fédération Internationale du Sport Automobile (FISA). This came under Jean-Marie Balestre. He was a former journalist and president of the go-karting association.
Reorganisation
Just a few years later, FISA re-organised racing and rallying standards. It replaced groups for unmodified and modified production cars. That was largely a like for like swap. Secondly it combined grand touring (sports cars) with a race circuit only production-derived special builds class into Group B.
Group B allowed really small production runs of really fast cars with only a superficial relationship (if any) to cars that could be sold in a showroom. Regulations had a generous minimum kerb weight and allowed rear wheel drive or four-wheel drive. Audi had just launched its Audi Ur Quattro which showed the potential of four-wheel drive in a normal car package. There was no restrictions on turbo-charged engines ‘boost pressure’ – allowing for small engines in a light car package with immense power.
1984
1984 was a crucial year for Group B, when the format would form its ultimate shape.
For the first few years Audi’s production derived Ur Quattro had won loose surface events and a rear-wheel drive Lancia 037 doing better on tarmac roads. Other manufacturers were bringing cars into the championship as well including Toyota, Porsche and Opel. Peugeot brought the first car that fully took advantage of the regulations. A two seater, four wheel drive, mid-engined car in a space frame. A slew of similar competitors followed the year after, including the Ford RS200. This was the stuff my dreams were made of. My exercise books covered in sketches – side profile designs of vehicles that would be optimised for Group B regulations.
The end
1986 saw a series of fatal accidents that would result in Group B being shut down for safety and PR reasons. This created the illusion of a safer sport, but the reality was that the body count peaked some three years later in 1989, due to the way rallies were organised back then and how South Europeans conducted themselves as spectators – playing chicken in the road, dropping rocks on the road to hinder non local drivers and trying to touch cars as they went by.
This is where Richard Madden (of Game of Thrones) short film comes in capturing the difficulties of a driver managing a Group B car and dealing with trauma.
Who are the rioters who stormed Brazil’s government offices? | Financial Times – many pro-Bolsonaro truckers blocked highways across the country, choking supply chains and at one point forcing the closure of Brazil’s main international airport. These hardline backers are nationalist, socially conservative and often evangelical Christians. They accuse Lula and his Workers’ party of being corrupt and against family values, claiming the left intends to implant socialism in Brazil.
The Nokia Risk | Phenomenal World – Denmark, Israel, South Korea, Sweden, Switzerland, and Taiwan a handful of firms account for a hugely disproportionate share of both profits and R&D spending. The firms which dominate these seven economies have all been extraordinarily successful in the knowledge economy of the past three decades: Samsung Electronics in Korea, Taiwan Semiconductor Manufacturing Co. in Taiwan, Novo Nordisk (pharmaceuticals) in Denmark, and Roche and Novartis (pharmaceuticals) in Switzerland
Dim Future for Hong Kong’s Rural Industries – Varsity – the government tends to avoid underutilised plots controlled by village gentries and land banks of property developers when it tries to resume lands for urban development. – Hong Kong oligarchs still have some pull for the time being
Why Beijing Wants Jimmy Lai Locked Up – The Atlantic – Beijing has weaponized the courts against its longtime adversaries—just as Chinese state media continues to promote Lai as the poster boy of everything nefarious in Hong Kong. For both purposes, Lai has a sufficiently high profile and is convincingly rich enough to have fomented a subversive uprising; and, amid the nationalist atmosphere that prevails in Beijing, Lai also had highly suspect foreign connections that reached close to the center of power in Washington, particularly during the Trump administration. By turning to its old playbook of assigning blame to a hostile force at home backed by support from abroad, the Chinese Communist Party is falling into a trap of its own creation. Given the sentences that Lai is likely to receive for his alleged crimes, Lai could very well be imprisoned for the rest of his life. In looking for a scapegoat, Beijing may find it has created a martyr.
Indonesia
The Liem family and The Salim Group and how crony capitalism busted Indonesia in 1997/8
Innovation
How Silicon Valley was build on the back of defence research
Interesting commentary on materials development and the role that the Apollo space programme played to create a chemical and materials science golden age that had applications in other areas.
Tory MP leads warnings over UK security after Chinese spyware ‘found in Government car’ – “If these SIM cards have been duplicitously installed, then this is CCP espionage. If the SIM cards are operationally standard, then it is a failure of security not to have removed them to protect the data of our Government and sensitive Government sites.” – I wouldn’t be surprise if it was the latter rather than the former
The Long War in Ukraine | Foreign Affairs – Western strategists have sought to preempt a military standoff in two ways. Some, such as the leaders of several Baltic countries, have called for arming Kyiv with more of the heavy weapons it would need to expel Russian forces from all Ukrainian territory; others, including Mark Milley, chairman of the U.S. Joint Chiefs of Staff, have suggested that Ukraine’s political leaders should consider a negotiated solution that falls short of complete victory but would at least end the fighting
Style
Lacoste moves to collective model as Louise Trotter exits | Vogue Business – The British designer joined Lacoste from Joseph, and previously worked at premium high street brands Whistles and Jigsaw. At Lacoste, she applied her creative vision to both Lacoste’s fashion shows and general collections, bringing “real consistency” across its designs, according to the brand. “She has also accompanied the shift initiated by Lacoste towards womenswear, imagining a new wardrobe combining comfort and style,” the statement reads. Lacoste’s last fashion show was in October 2021 for Spring/Summer 2022, for which Trotter drew inspiration from her passion for cycling. Sales reached €2.5 billion in 2022, according to the brand.
Taiwan
Taiwan plans domestic satellite champion to resist any China attack | Financial Times – “Our primary concern . . . is facilitating the societal resilience, to make sure for example that journalists can send videos to . . . international viewers even during a large-scale disaster,” Tang said, adding that the system would also support “telephoning and videoconferencing — think [Ukrainian president Volodymyr] Zelenskyy’s daily addresses.” Starlink, the mobile internet satellite constellation operated by Musk’s SpaceX, has helped Kyiv maintain communications with its forces despite Russian attacks
Technology
I wrote a story for a friend – by Julian Gough – I wrote the End Poem for Minecraft, the most popular video game of all time. I never signed a contract giving Mojang the rights to the End Poem, and so Microsoft (who bought Minecraft from Mojang) also don’t own it. I do. Rather than sue the company or fight with my old friend, who founded the company and has since gone off in the deep end, I am dedicating the poem to the public domain. You’ll find it at the bottom of this post, along with a Creative Commons Public Domain dedication.
I guess before we go into cracking the RSA algorithm, we need to discuss what the RSA algorithm is. The RSA algorithm is the mathematical equation behinds the RSA crypto-system. The RSA in question are Ron Rivest, Adi Shamir and Leonard Adleman who publicly described back in 1977.
Note the distinction about ‘publicly’; it is important because a British boffin Clifford Cooks came up the same solution independently whilst working at GCHQ. But it was only at the end of the 1980s when open internet protocols were being developed that this kind of cryptography really found its use as an underpinning principle of public key cryptography.
RSA is a relatively slow algorithm, so is not commonly used to directly encrypt user data. Instead it is used to transmit shared keys for faster cryptographic methods, which are then used for larger encryption–decryption jobs.
Cracking the RSA algorithm gives access to data like credit card details, login credentials or keys to access a bigger data set. As computing power has improved the size of key used to encrypt using RSA has had to be increased in size. In 1999, 512bit length keys could be cracked using 100s of computers in parallel. 20 years later, this could be done in a third of the time on a single well-specced home computer. The safe size of keys today is estimated to be between 2048 and 4096 bits long
Chinese claims on using quantum computing to cracking the RSA algorithm using 2046 bit length keys
The Chinese team claim the ability for cracking the RSA algorithm at 2046 bit key length, using a quantum computer equivalent to IBM’s Osprey system to calculate the keys. Bruce Schneier’s critique on their paper pokes a lot of holes in their claims.
Chinese military affiliated hackers compromised the ‘seed keys’ used to support RSA Security’s products at the time. if you had known me back then, I had a grey lump with digital display on it that was called SecureID and used to access my work computer.
SecureID tags
SecureID was not only used in corporate environments but government contractor, research and military networks. So stealing the seed keys rendered all of them vulnerable.
PR News | Get Ready for the Gen Z Onslaught –Gen Z “has both the ability and motivation to organize online to reshape corporate and public policy, making life harder for multinationals everywhere and disrupting politics with the click of the button,” according to an essay by Eurasia chairman Cliff Kupchan and president Ian Bremmer. Gen Z grew up as America’s post-Cold War dominance waned and experienced formative historical events such as the 2008 financial crisis, Arab Spring, Brexit, Trump’s election, Black Lives Matter movement, MeToo reckoning, mass shootings in the US, COVID-19 and the Russian invasion of Ukraine. “The result is a generation radicalized by the turbulent nature of its times and the failures of leaders and existing institutions to respond,” wrote Kupchan and Bremmer. “Gen Z has broader expectations, demands and policy impulses than its predecessors, including a marked distrust of institutions and traditional channels of political change and economic achievement.” – This isn’t generational per se but related to not hitting life stages
Lawyers exit Hong Kong as they face campaign of intimidation – Anonymous threats sent by text message and email. GPS tracking devices placed under a car, and Chinese “funeral money” sent to an office. Ambushes by reporters working for state-controlled media. Accusations of disloyalty in the press. These are some of the methods deployed in a campaign of intimidation being waged against lawyers in Hong Kong who take on human rights cases, have criticized a China-imposed national security law or raised alarms about threats to the rule of law. While some of Hong Kong’s leading rights lawyers have been detained in the past two-and-a-half years, many others have become the target of a more insidious effort to cleanse the city of dissent – part of a wider crackdown by the ruling Communist Party on lawyers across China, say activists, legal scholars and diplomats. Michael Vidler, one of the city’s top human rights lawyers, is among them. Vidler left Hong Kong in April, a couple of months after a judge named his law firm six times in a ruling that convicted four pro-democracy protesters on charges of illegal assembly and possession of unauthorized weapons. Vidler interpreted the judgment as “a call to action” on the city’s national security police “to investigate me,” he told Reuters in an interview last month in Europe
Facebook’s hardware ambitions are undercut by its anti-China strategy – The Washington Post – The executives discussed ways to shift components and manufacturing for a planned smartwatch from China so the company could demonstrate to U.S. customs authorities that it merited a Made in Taiwan label — instead of one that says Made in China. They thought a Made in Taiwan label would save the company on tariffs and be a better look politically. But doing so was very difficult because the supply chain for smart electronic devices is in China, the people said, and countries such as Vietnam, Taiwan and India are only starting to develop those capabilities. Company leaders also hoped to obtain a Made in Italy label for its smart glasses, made in partnership with Ray-Ban, but doing so also wasn’t feasible, the people said. Executives also looked, unsuccessfully, for ways to move manufacturing of Oculus to Taiwan.
