Lunch with the FT: Cai Guo-Qiang

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August 25, 2017

As I walk through Manhattan’s East Village towards the studio of Cai Guo-Qiang, I pass brownstones, hair salons and some guys hanging around speaking Italian. The first sign that I might be nearing the studio is a mirror-box sitting on the sidewalk, underneath the window beds, that doesn’t quite blend in. Then a red door, guarded by a little stone lion and the Chinese character for luck. I’ve come to the right spot.

I’m meeting Cai (pronounced “Tsai”) for lunch at his studio in New York, where the Chinese artist has been based for more than a decade, because I’m told this is where he always eats lunch. He is looking relaxed, wearing a brown T-shirt and close-cropped grey hair, and greets me with a firm handshake that hints at how much time this 59-year-old spends at the gym.

Although you wouldn’t know it from the unmarked door, Cai is one of the most remarkable artists working today. He specialises in gunpowder, and creates firework art on an unparalleled scale — think of a chain of explosions that extends the Great Wall of China by 10km, or a flock of black “birds” appearing in the desert in Doha. In 2008 he launched the giant footsteps that marched over Beijing during the opening ceremony for the Olympics.

More recently, he created a “Sky Ladder” that sent fiery rungs climbing half a kilometre into the clouds. Not all of these projects succeed (“Sky Ladder”, an obsessional quest that was the subject of a documentary film last year, took three attempts.) But they have pushed an old medium in new directions — Cai even makes paintings with gunpowder, to explosive and ethereal effect.

A sweet, oily aroma is wafting across the office, so while Cai finishes a meeting, I wander over to the kitchen to see what’s cooking. One of the cooks points out the day’s dishes: pork ribs made with Coca-Cola, steamed cod, water spinach with garlic, lily bulbs with celery and sausage, green beans and an unusual crêpe made from lotus root, which turns out to be a studio speciality.

My mouth waters as we discuss the food and, as if on cue, an assistant appears to steer me into the main gallery. The room is huge — big enough to hold a dozen of Cai’s giant gunpowder works, which are resting on the floor and leaning against the walls, some more than seven metres long. At a distance the paintings appear as colourful, explosive blooms, so that the bright room feels almost like a garden. In the centre, a table has been laid for two.

Read the full piece here.

Notebook: Big Sur

IMG_4680A deserted coast evokes the 1967 Summer of Love

July 26, 2017

On the most famous stretch of California’s coast there is hardly a soul in sight, even at the height of the tourist season. The central portion of Big Sur, usually overrun at this time of year, is quiet except for the crashing waves and the occasional hooting seal.

After a series of biblically proportioned natural disasters — fires, floods and mudslides — a 35-mile stretch of California’s Highway One has been largely cut off since February, and is now accessible mainly by foot.

I went to see it for myself, hiking in with my bicycle along a steep trail that goes around a washed-out bridge. When I got to the other side it was like stepping back in time. A languid shuttle bus carries tourists and workers to their destinations, along a road that has almost no traffic. (There is one way to drive in, but the road is so treacherous that few attempt it.)

For cyclists, the open highway feels like a dream. There’s no need for reservations at even the most spectacular restaurants — the dining room at Nepenthe, a Big Sur classic, is only half full on a Saturday evening. For local residents, the steep hike to the outside world is a nuisance, but they’ve got used to it.

The slower pace that’s been imposed here restores one of the attributes that once defined Big Sur — isolation. The craggy coast was where people came to get away, a place that didn’t even have a telephone until 1958. After the second world war it became a magnet for beatniks and Bohemians, and during the 1940s, 50s and 60s Big Sur was at the heart of California’s New-Age movement.

Philosophers and humanists like Alan Watts and Abraham Maslow, who both taught in Big Sur, as well as writers Henry Miller and later Jack Kerouac, fuelled its reputation as a countercultural haven. On the wall at Nepenthe is a photo of Miller drinking at its bar. His move here in 1946 helped put Big Sur on the map. Despite the fact that his novels were banned (or perhaps because of that), Miller’s interests in anarchy, sex, and Buddhism helped set the tone for an entire generation — and his fans flocked to Big Sur to find him.

One of these was the journalist Hunter S Thompson, who worked as a security guard on a local estate. Thompson, alcoholic and erratic, was not a great security guard, but he published his first paid magazine feature during this time.

“If half the stories about Big Sur were true the vibrations of all the orgies would have collapsed the entire Santa Lucia mountain range,” Thompson wrote in the piece, which appeared in Rogue in October 1961. “It’s not likely to happen, however, because almost everything you hear about Big Sur is a rumour, legend or an outright lie.”

Read the rest of the column here.

 

Tech World Column

Screenshot 2017-08-29 23.09.39 I write the Tech World column in the FT Magazine roughly once a month.

Why Silicon Valley has embraced the ‘office dog’ (May 12, 2017) Dogs are an antidote to all things digital

Mark Zuckerberg and the perils of livestreaming (Aug 1, 2017) It is impossible to avoid humiliation on social media, even for someone like Mark Zuckerberg

Why Uber has been forced to U-turn (June 20, 2017) The company considers its values a proprietary trade secret.

How Silicon Valley brought haute cuisine to the office canteen (June 8, 2017) The battle for talent has created an arms race for perks — and Michelin starred deserts 

 

 

Uber in China

FT Magazine, June 2016

In Uber’s new offices in Guangzhou, China, occasional screams of delight erupt from the workers at their desks as they spot the office cat, a shy thing that mostly hides under furniture and causes uproar whenever she appears. Her name is Qianwanliang, or “10 million rides”. It’s a rather grand name for such a timid creature but this is Uber, and ambition is inescapable – even for office pets.

ClIfZoiVEAE6w-5Read the full piece here.

Uber: the crisis inside the ‘cult of Travis’

Published: March 19, 2017

Uber photo
For Travis Kalanick, Uber’s chief executive, “stepping on toes” is a good thing. In fact, at a lavish company retreat in Las Vegas two years ago he listed this as one of Uber’s core values — along with slogans such as “always be hustlin’” and “let builders build”.

His hard-nosed attitude has helped propel the ride-hailing business to a global company over the past seven years. With a valuation of $70bn, Uber is bigger and wealthier than any other start-up in Silicon Valley history. Mr Kalanick’s swagger has come to define the company, for better and for worse.

Full story here.

Lex column

From June 2014 to September 2015, I wrote daily commentary for Lex, the FT’s business and finance column, about tech companies. Lex notes have been anonymous for nearly 70 years, but here are a few of my notes.

Amazon: capital questions (Feb 19, 2015)

Abracadabra. Amazon does not make much profit and, perhaps for that reason, likes to focus attention on free cash flow. This metric, which is not a GAAP measure, is usually calculated as operating cash flow less capital expenditure. That came to $1.9bn for Amazon last year.

A big number, with some sleight of hand: it understates Amazon’s investment programme and overstates its cash generation. This is because the company has increased investment by using capital leases to buy assets. Last year $4bn in assets were acquired under capital lease — five times the level of 2012. This is nearly on a par with capex, which stood at $4.8bn last year. Capital leases are like a purchase that is financed by the seller. Amazon says the increase in CLOs is mostly due to technology investment for Amazon Web Services (read: server farms). About $2bn in principal repayments fall due this year. Continue reading on FT.com here

Twitter: imagine all the people (Nov. 13, 2014)

The rules are different inside the tech bubble. Here, for example, is Silicon Valley’s Law of Large Numbers: if a company announces some large numbers that may appear in the future, its stock price rises.

Twitter, a year after its IPO, needed a boost. Its share price was back where it started. Management churn has been high, and profits elusive. So the market was ebullient when the company outlined its plan for growth, with new estimates for the “intermediate term”, or the next five to eight years. Imagine if user numbers doubled, ad load (the ratio of ads to tweets on each users’ screen) quadrupled, and if ads could be viewed by visitors who did not even have Twitter accounts. Then revenues might be $11.4bn (compared with $1.2bn today). High five! Twitter does not call these forecasts. They are “growth opportunities”. That speaks for itself. Continue reading on FT.com here.

China: high and dry

By Leslie Hook

Wang Fuguo, a 63-year-old cotton farmer, does not know when his ancestors began tilling the land in the dusty village of Weijie.

But he is fairly sure he will be the last of his family to do so. “They’ve all fled,” he says, looking out from his gate at the abandoned houses that line the village’s only street.

The reason is simple. “There’s just no water here,” he says. “If you don’t have water you can’t survive.” His household gets running water for one hour every five days, barely enough to feed a tiny patch of aubergines and supply his family and their dozen sheep.

In the face of China’s rapid economic expansion and growing presence on the global stage, it is often forgotten that the country is running out of water. In per capita terms, China’s water resources are just a quarter of the world average. Eight of China’s 28 provinces are as parched as countries in the Middle East such as Jordan and Syria, according to China Water Risk, a consultancy based in Hong Kong.

In the area where Mr Wang lives, Minqin county, a former oasis in Gansu sandwiched between the vast deserts of Inner Mongolia, the problem is particularly severe. Mr Wang’s neighbours are not the only ones who have moved away. More than 10,000 people have left the area and have become shengtai yimin, “ecological migrants”.

Chinese officials identify water scarcity as one of the nation’s most pressing difficulties. The problems are social, political and economic. This year Beijing for the first time issued water quotas to every province, setting targets for annual consumption by 2015.

The water shortage is made even more urgent by China’s rapid urbanisation, as expanding cities have greater water needs. More than 300m people are expected to move into cities between now and 2030.

This transformation comes as the Chinese are becoming far more critical and vocal about the way they are governed. Weibo, a Twitter-like social network, is routinely filled with users sharing information about pollution violations. Some users even dare officials to take a dip in the rivers they are supposed to be in charge of keeping clean. At times the government’s inability to control its waterways has made it the object of public ridicule, such as when more than 16,000 dead pig carcases floated down Shanghai’s main waterway this year.

The economic problems are formidable, with the water shortage threatening to slam a brake on growth. According to a World Bank report in 2007, water problems cost China economic losses of 2.3 per cent of gross domestic product. Executives say that water shortages are already starting to reshape their industries.

“Serious water scarcity is one of the big problems that has slowed down social and economic development in the north,” says Jiang Liping, water specialist at the World Bank in Beijing.

Continue reading on FT.com here.

Tibet: life on the climate front line

Jiang Shenglan is hunting for caterpillar fungus, and it is not going well.

Sitting in a makeshift plastic tent in a high pass on the edge of the Tibetan plateau, the 46-year-old farmer gestures to her muddy trousers, evidence of the days she has spent crawling across mountain slopes, belly to the ground, peering into the grass. The caterpillar fungus she has been seeking is prized in Chinese medicine as an aphrodisiac and sometimes referred to as “Himalayan Viagra”. It’s nearly worth its weight in gold.

But the fungus is getting harder to find. Jiang has searched the grasses of this lonely stretch of the Tibetan plateau every year for more than a decade. She is known as the best fungus hunter in her village. But recently she has been having trouble.

“There’s less and less of it every year,” says Jiang. “If the weather is warm and there isn’t much snowfall, then it can’t grow.” She used to collect 20 or 30 stalks of fungus a day during harvest season. This year, after an unusually dry winter, she’s lucky to find 10.

The caterpillar fungus only grows at high altitudes in certain parts of the Tibetan plateau, where cool temperatures and snows create the right conditions for it to sprout each spring out of the corpses of caterpillar worms that have burrowed underground and died. Scientists say there are several reasons the caterpillar fungus is disappearing, including overharvesting, but Jiang sees only one. “It hardly snowed at all last winter,” she says, as she tends the coal stove inside her tent. “The disappearing caterpillar fungus has to do with climate change.”

Behind her, the mountaintops rise to more than 4,000m – high enough that some fungus hunters from outside the district die every year from altitude sickness. Yet these are only the low foothills of the Tibetan plateau. And the disappearing caterpillar fungus is only the beginning of its problems.

When the Indian tectonic plate collided with Asia some 40 million years ago, the resulting upthrust produced a giant landmass unlike any other. Spanning an area five times the size of Spain, the Tibetan plateau has an average elevation of 4,500m – nearly as high as the top of Mont Blanc – and the same geological forces are still pushing it higher each year.

So much snow and ice is stored on the plateau that scientists often call it the “Third Pole” – a name that highlights its significance to the earth’s climate. And like the North Pole, the Tibetan plateau has been warming much faster than the rest of the world over the past 50 years. Scientists are racing to understand the changes taking place in the region’s lakes, permafrost, ice and weather patterns. Of the 46,000 glaciers on the Tibetan plateau, many are shrinking.

The plateau’s height gives all these changes huge importance. Because the land mass sticks up so far into the earth’s atmosphere, it governs the Asian weather system, brewing the monsoonal rains each summer and steering westerly wind currents all the way from the Mediterranean. Its lakes, glaciers and wetlands act like a huge water tower for all of Asia. One in five people in the world get their water from river systems that are linked to the Tibetan plateau.

Read the rest of the story on FT.com here.

Photo: Algirdas Bakas

Boomtown Mongolia

At first glance Ulan Bator hardly looks like a boom town. The city centre is a charmless confusion of Soviet vanity projects, office buildings and dilapidated apartments, while on the edges of town ghettos of gers (yurts) spread up the mountainside. To a casual observer, the only hints of a mining boom might be the abundance of taverns and the Landcruisers that jam the streets.

But outside the town one Friday night, a crowd of investors shimmying around an outdoor bonfire paints a picture that is in some ways more revealing of Mongolia today. Pop hits pulse through the air and vodka flows unrelentingly as people start to dance to the beat of DJ Zola, who spins out of the back of a truck. The party is one of the pitstops on a tour for fund managers and investors from London, New York, Moscow and Zurich who have come to see the opportunities on offer in Mongolia, one of the hottest destinations for resources investment today.

On one side of the fire, Altai Khangai, the 29-year-old acting chief executive officer of the Mongolian stock exchange – one of the best performing in the world last year – warms up his dance moves. Nearby a vodka-soused banker named Sergey invites me on a resources tour of Siberia, complete with promises of slaughtering a castrated ram. Soon a young mining analyst fresh out of Oxford is entertaining guests by taking running leaps over the flames. “We’re the only private equity house with a bonfire,” croons a slightly tipsy host.

Mongolia is one of the world’s last great mining frontiers, a freak of geology with more than $1,000bn in probable mineral deposits. For millennia those resources went undiscovered while herders roamed the steppe and Genghis Khan led his armies to conquer Asia. It wasn’t until the Soviet era that geologists seriously explored Mongolia’s deposits.

Even hardened mining hands tend to start using superlatives when they talk about Mongolia. Ed Rochette, a former senior vice-president with Ivanhoe Mines who spent his career securing mining licences in far-flung corners including Burma, the Democratic Republic of the Congo, Indonesia and Kazakhstan, says it’s unlike anything he has ever seen. “Two years ago I would have 20 projects come to me, and almost no investors. Today I have 20 investors, and almost no properties,” he says, settling into a booth at a dimly lit bar called Casablanca, popular for its burgers and green-miniskirted waitresses. “I’ve been in Mongolia for 10 years, but this story is just beginning.”

Today’s mining rush was touched off in 2009 with the signing of an investment agreement for the Oyu Tolgoi mine – known as “turquoise hill” because of the greenish rock outcrop that indicated copper. The site has $350bn of probable reserves of copper, gold and silver – more than 50 times Mongolia’s GDP. The negotiations dragged on for years, but when the deal was finally concluded the signal was clear: Mongolia was open for business. The following year foreign direct investment swelled to 30 per cent of GDP.

Continue reading on the FT website here…..