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Culture chat — In the age of AI, what counts as art?

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This is an audio transcript of the Life and Art from FT Weekend podcast episode: In the age of AI, what counts as art?

Lilah Raptopoulos
Welcome to Life & Art from FT Weekend. I’m Lilah Raptopoulos. My colleague John Thornhill recently saw a movie that he really liked that wasn’t made by humans. It was auto-generated by a machine so that it’s never shown the same way twice. The film is called Eno and it takes 500 hours of footage shot over the lifetime of the artist Brian Eno. Humans were involved, of course. They shot the original footage. Human editors cut that footage into scenes, but after the initial edit, an algorithm was set loose that combines those scenes into new orders every time you press play. It plays with the ideas of memory and truth. Here’s a clip of an unreleased Eno recording that’s in the film called All I Remember.

[AUDIO CLIP FROM ALL I REMEMBER PLAYING]

Lilah Raptopoulos
Brian Eno has always been experimental. He’s worked with musicians like David Bowie. He pioneered the genre of ambient music, and John is very interested in experimentation. He’s our innovation editor and he writes a lot about new technologies and generative AI. He wrote about this film in his recent column, and when I read it, it felt really like finally a tangible example of the kinds of things that might be to come. So for anyone who’s also a little worried about how generative AI might affect art and culture in the future, John has kindly joined us today to talk through it. John Hi. Welcome to the show.

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John Thornhill
Hi, Lilah.

Lilah Raptopoulos
Thanks for being here. OK, so why don’t we start with this film? The filmmaker said you saw one of 52 quintillion possible versions. Is that right?

John Thornhill
Yeah, That’s quite a lot, isn’t it?

Lilah Raptopoulos
It seems like a lot. I don’t even know what that number means.

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John Thornhill
And they said it would make quite a boxset if you were to compile it all together.

Lilah Raptopoulos
Can you tell me what that actually looks like? You know, I feel like we’re used to following one narrative that a filmmaker decided on before we were ever involved. And this sounds like chaos, honestly. Yeah. How would you explain it?

John Thornhill
Well, as you were saying, Eno himself is an incredibly kind of creative, quirky individual. And he didn’t want a kind of standard biopic. So Gary Hustwit and Brendan Dawes, who are the people behind it Eno went to him and said, well, how about we throw all of the archival footage into a hopper and then write software that would extract different scenes and pull out themes and ideas and make connections and almost have a kind of kaleidoscopic view of Eno’s creative life.

And every single version, the 52 quintillion possible versions of it, would pull out different aspects of his life and his creativity. And that clearly appealed to Eno and so he gave his blessing for this film to go ahead. And what I think is extraordinary about it is that although it does differ every time you see it, there is a kind of curious, intuitive logic that kind of threads it all together. And so it does make sense. It’s not just kind of a random assembly of scenes from Eno’s life.

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Lilah Raptopoulos
Can you tell me about that? What was the experience of watching it like? You said, that it was, it had some jagged juxtapositions, but that it did have a clear narrative arc.

John Thornhill
Yeah. Brendan Dawes in particular who kind of wrote the software for this. And they did want to give it some loose structure. So they had an introductory scene and they had a concluding scene. And because that had to kind of bookend the film, as it were. And then they had human editors who edited a hundred scenes from different and really important parts of his opus, as it were, which they wanted to have as kind of standalone elements of the film. But then the software was really very much kind of picking out different associations, connections between different aspects of his career and so on.

One particular film, it might go very heavily on his association with David Bowie. On another one, it might focus on Roxy music. On another. It might go completely differently into his thinking about creative art and so on. So I think that’s really what was fascinating about it. You knew that all of these connections and ideas were being meshed together in a way that they had never been meshed together before. And to my mind anyway, that made it really quite fun and interesting.

Lilah Raptopoulos
Yeah, I can imagine. John, how are critics reacting to this movie? I imagine it’s a hard thing to write a review of.

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John Thornhill
Yes, for sure. I mean, I read a lot of the reviews of the film and what was fascinating is that they all seemed to undergo something of an existential crisis in them reviewing the film because they knew that the film that they saw was not going to be seen by anybody else. And so the reviews tended to focus on the nature of the project itself and the technology that was used and the kind of structure of it and the intent of the producers and so on, rather than the content of the film itself. And I think that’s fascinating from a kind of an artistic perspective because that’s part of the value of art in one sense, is that it provokes conversations.

To some extent Eno does that brilliantly, I think, because everyone can have a very legitimately different opinion about the art that they went to see, but it also loses something to the extent that if you go and see a great work of art, a Mona Lisa or you read Middlemarch or whatever. You can have legitimate differences of opinion based on the same thing that you’re experiencing or reading. In this case, you’re arguing about something different. So I think that does raise a kind of whole new question about the nature of art as well. And is it something that we collectively agree is art and there’s the defined and clear definition of what it is, or is it permanently kind of fluctuating it?

[MUSIC PLAYING]

Lilah Raptopoulos
John, one of the things that I really loved about your piece is this point that you made, that the film reminds us that there really isn’t one singular truth when it comes to how we tell the story about our lives. You know, like a traditional documentary tells a story in one way, but we tell our own stories in all these different ways. There’s the story that we tell on LinkedIn. There’s the story that we tell out at a bar or on a date. There’s the story that others tell about us, and they’re all different, but they can all be true. Can you say more about that?

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John Thornhill
Well, it certainly plays very much into the debate, I think, about generative AI at the moment, and we have these extraordinary models like ChatGPT and so on, which we’re all now using. And one of the big features of that, which many people consider a bug, is that they hallucinate. They just make stuff up. And we’ve obviously had cases of lawyers going to court with kind of GPT-generated briefings which contain completely fictitious legal cases, which the judges in those cases don’t take too kindly to.

But what struck me about the Eno film, which is, I have to stress, not generated by generative AI, it was a kind of proprietary software that Brendan Dawes wrote, therefore, what the material in it is true, you know, it was recorded. It happened. It was taken from real life. It wasn’t inventing anything. But it did show this extraordinary kind of kaleidoscopic aspects of people’s lives. And I’m sure that we all have this situation, that we have false memories ourselves, and we can think that things happened to us in our lives, that we think that we said this on a particular occasion. And in fact, when you actually go through someone’s archive, the material is all truthful to the extent that any artistic material is truthful and it is creating linkages between genuine footage.

And so I think in that sense, it struck me that this film is truthful because it’s kaleidoscopic. It’s showing very many different aspects of Eno that even he might not have thought about. And that is quite a contrast to some of the generative AI models and films that are being created of that which are really inventing stuff in somewhat crazy and fairly random ways.

Lilah Raptopoulos
Right. OK. So you’re saying that the, you know, film isn’t generative AI itself, but it still could help inform what’s possible in the future with generative AI?

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John Thornhill
So I think the difference is that the Eno film very much had a kind of guiding human brain. And there was a film director who was saying, I want to make a film. These are the constraints that we’re going to impose on it. This is the material we’re going to use, and these are the prompts that we’re going to give it in a way and set of directions, that these are the scenes that we think are important, have to be incorporated in one way or the other. And so there was a kind of human framing for that.

What you get with generative AI models is often completely random in the sense that there is no human guiding framework for that. And the best way, I think, to think of a lot of these generative AI models is that they’re almost super, super sophisticated, kind of autocomplete functions. They are trained on the probability of one word following another to the nth degree. And therefore, they are quite predictive in that sense. But there is no guiding principle or human steerage, as it were. And so I think that’s when you see AI films, they can be quite inspired in their own way, but there is far more kind of randomness built into the process.

[THE RUN-THROUGH TRAILER PLAYING]

Lilah Raptopoulos
So, so far, this all feels pretty harmless and interesting, but there’s a lot of anxiety around the risks of AI, and I wonder if that applies here, like how we go from cute experimental film to like, you know, the robots are in charge. I read a piece recently in The New York Times about, you know, what will happen if AI gets trained on AI, that there’s, you know, all this content being generated now by AI, and then the models are training based on this inhuman interpretation of that content, which can sometimes be wrong. And then another model gets trained on that and trained on that. And suddenly there can be a world in which, like everything that gets interpreted, just starts to become gibberish.

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John Thornhill
Yes. That’s a big concern, I think of some AI researchers now that the creation of what they call synthetic data can be incredibly useful in helping to train some of these models. So, for example, the AlphaGo program, I got very good at playing the game Go because it played thousands of games against itself and it created synthetic data which it then trained on to become better. But you can create synthetic data which poisons the well, as it were, and it is cannot be fully relied upon. And there’s been some very interesting research coming out saying that this could lead to model collapse.

I’m not enough of a technological expert to know how serious this is to be taken, but it’s certainly something that is being talked about quite openly now. But as you say, the ability of our models to generate synthetic data can be useful, but can also actually jeopardise the whole reliability of the models themselves.

Lilah Raptopoulos
Yeah. I’m trying to envision an example of a way that, you know, if these generative AI models were more sophisticated and used to create content with more freedom than the Eno film’s algorithm allowed, what would be possible? I mean, like, would it be things like, you know, it could build a film based on another guy that exists in the world named Brian Eno. Or it could build a film that shows different versions of the film to different races or ethnicities or I’m just kind of trying to . . . 

John Thornhill
We’re just freewheeling a bit, I mean, I guess we’re . . . 

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Lilah Raptopoulos
Freewheel, yeah, I think . . . 

John Thornhill
Where this could end up is that . . . 

Lilah Raptopoulos
Yeah.

John Thornhill
 . . . generative AI could write Eno-style music. It could create wholly new music, taking his back catalogue, as it were, and all the artists that he has worked with and then come up with music as though it was produced by Eno and which nobody has ever heard before. Similarly, you could invent an entire script and generative AI could put words into Eno’s mouth. It could analyse everything he has ever said in his life that has been recorded and then come up with Eno-like statements. And then you could actually create an avatar that looks almost identical to Eno. And so you could invent a whole film that was completely fictitious, that had no truth in it at all in that sense, but was really very plausible. It would look like Eno, it would sound like Eno, his music would sound like Eno, he’d speak like Eno. And yet he was directly generating none of it.

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Lilah Raptopoulos
Right. OK. Yeah, that’s helpful. Those are some of those questions that I think that we have gotten pretty good at asking. Like, I find myself a bit more vigilant about misinformation than I ever was. You know, sometimes I’m watching a clip online and I think that looks suspicious. Maybe it’s fake. Maybe it’s been manipulative. I don’t think I ever would have asked that 15 years ago. I feel like there’s maybe other questions we should be asking ourselves now. Like kind of more sophisticated ones that I don’t know yet. What should we be asking ourselves? You know, knowing what you know about this?

John Thornhill
Well, I think we’re definitely moving into a world where it will be almost impossible to identify what art has been created by humans and what is being created by a machine. And instinctively, we have an incredible kind of visceral reaction against that. At the FT Weekend Festival in London a few years ago, we had the audience listen to a Bach chorale that was genuine one that Bach himself wrote, and one that was generated by a computer. And the audience split, I think, 52-48 per cent. They did recognise the genuine Bach. But people were horrified. The people who wrote, the 48 per cent who didn’t recognise the genuine artefact as it were, felt horrified that they had somehow been cheated. But really, I mean, is that the right reaction? If the music gives you the same emotional response, whether it’s created by a human or a machine in that sense, doesn’t really matter, does it?

Lilah Raptopoulos
Well, yeah. I can sort of understand why they’re horrified. Gosh. OK. But you seem to be kind of excited about this, which is interesting. Why?

John Thornhill
I mean, I think it’s very interesting in the realm of art in particular, isn’t it, where deception is, in a way, part of the artistic process. You know, that clearly doesn’t apply. You really don’t want your kind of bank to go in for deception in a similar way. So there are kind of hard guardrails that you want to reinforce amongst kind of daily life.

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But in the field of art, I think it’s really quite exciting and possibly inspirational that you can get machines to create artefacts in a way that they’ve never been created before. And we’re talking, well, I’ve just been talking about mimicking human art. But, you know, it will be possible, I think, increasingly for machines to come up with new ways of conceptualising images or words or text or music, which really would be a spur to human creativity.

Lilah Raptopoulos
Yeah, interesting. So it’s like the danger that this could be in other realms could actually be a feature or a positive in the art realm.

John Thornhill
I think it’s also interesting people in the artistic well, to the extent that I interact with them, tend to be excited by the technology and the possibilities of the technology rather than being scared by it, as it’s now increasingly common in other fields, I think. And of course Hollywood actors and script writers have legitimate concerns and they will go out and protest and strike about the indiscriminate use of AI. But I’m also struck by how many artists are now embracing it and trying to use it in very creative ways, which I think is quite exciting.

[MUSIC PLAYING]

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Lilah Raptopoulos
So it seems to me like this idea of AI-generated art is challenging what we think of art as based on who or what it’s made by. Right? Like if it’s made by a machine, is it art? It’s a big question. And then the Eno film is kind of challenging our experience of art because everybody’s watching a different version, right? So, like, we aren’t even talking about the same piece of art when we’re talking about this film. So this conversation, maybe part of why I’m finding it hard to ask you about it is kind of pushing it two boundaries at the same time in terms of how we think of art.

John Thornhill
Yes, for sure. I think that does raise a kind of whole new question about the nature of art as well. And is it something that we collectively agree is art and there’s a defined and clear definition of what it is? Or is it permanently kind of fluctuating? And one of the most fascinating things about this Eno film was that they, at the Venice Film Festival, I think, they played the film rather than being constrained by 90 minutes, they put it on a continuous loop, as it were. And I think if I’m right and it played for about 160 hours nonstop, because you could do that with the software, it could just take out all of this material and surface it in different ways. And it was obviously running through the night when there was no one in the cinema to see it. I think there’s something wonderful about the idea of a kind of film being shown, which no one is watching. And it’s a bit like the debate about if a tree falls in the forest and no one hears it, has it happened? So I think the whole nature of art in that sense is rather fluid.

Lilah Raptopoulos
Absolutely. And that is the beauty of it and the difficulty of it all in one. John, this has been so interesting, so thought provoking. Thanks for coming on the show.

John Thornhill
My pleasure. Thanks, Lilah.

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[MUSIC PLAYING]

Lilah Raptopoulos
That’s the show. Thank you for listening to Life and Art from FT Weekend. We’ve linked to John’s piece about the Brian Eno film in the show notes that we’ve also included some other interesting links about AI there, which the FT has, of course, been covering a lot. Also on the show, notes are places to find me on email and on Instagram. I’m @LilahRap and I love chatting with you online about culture.

I’m Lilah Raptopoulos and here’s our incredible team. Katya Kumkova is our senior producer. Lulu Smyth is our producer. We had help this week from Persis Love. Our sound engineers are Breen Turner and Sam Giovinco with original music by Metaphor Music. Topher Forhecz is our executive producer and our global head of audio is Cheryl Brumley. Have a wonderful week and we’ll find each other again on Friday.

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John Lewis chief executive to step down to clear way for chair Jason Tarry

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The chief executive of John Lewis is stepping down after two years in the job, leaving new chair Jason Tarry as the sole leader of the group.

Nish Kankiwala will become a non-executive director advising the board by March next year, the company said on Monday. He joined the John Lewis Partnership as a non-executive director in 2021 but was subsequently asked to become its first ever chief executive in March last year, in a role created by previous chair Dame Sharon White.

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He helped to run the department store business John Lewis and supermarket chain Waitrose during a challenging period when both struggled with increasing competition in the high street and online, high inflation and the fallout from shop closures during the pandemic.

The partnership has sought to diversify, saying it wanted to make almost half of its profits from non-retail activities such as property rentals but, more recently under Kankiwala it has prioritised retail as part of a longer-term revival plan.

This year, it posted its first full-year profit after three consecutive years of losses, and no staff bonuses. At its most recent half-year results in September, the group reported a narrowing of losses and a slight increase in half-year sales, and said that it expected “a significant uplift in profits for this full year”.

Jason Tarry is shown smiling, wearing a dark sweater over a blue checkered shirt
Chair Jason Tarry will be in charge of the executive team © John Lewis Partnership

Tesco veteran Tarry started as chair in September, replacing White. The standalone role of chief executive will not be replaced.

Tarry will be in charge of the executive team, which includes John Lewis boss Peter Ruis and Waitrose head James Bailey, as well as the partnership board.

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Kankiwala said he was delighted to have led the partnership “during this time of pivotal change”. He cited improvements in cash flow — which has allowed the business to make investments such as opening more branches of Waitrose — as one of his achievements.

Tarry said Kankiwala “has been instrumental in accelerating the transformation of the partnership”.

The chair role, which is enshrined in the partnership’s constitution, has widened over the years from activities such as representing the interests of employees and promoting the business, to a more hands-on position running the business.

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Family favourite restaurant chain SAVED from administration but dozens of sites still at risk – see the full list

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Family favourite restaurant chain SAVED from administration but dozens of sites still at risk - see the full list

A FAMILY favourite restaurant chain has been saved from administration after a major buyout.

Hostmore, the UK owner and operator of TGI Fridays, has been sold just weeks after the struggling restaurant business went under.

Fans of the American-style restaurant chain will be relieved

1

Fans of the American-style restaurant chain will be relievedCredit: Alamy

Breal Capital and Calveton, which jointly owns the posh restaurant business D&D London, have acquired the chain.

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The rescue deal saves 51 of the chain’s 87 sites and at least 2,000 of its more than 3,000-strong workforce.

Buyers have no obligation to purchase the entirety of a bust chain.

TGI says that it is hopeful that it “may be able to secure further locations” following discussions with the landlords.

However, 36 TGI restaurants and over 1,000 staff members remain at risk for the time being.

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Julie McEwan, chief executive of TGI Fridays UK, said: “TGI Fridays is a much-loved brand with a rich heritage.

“The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole.

“We look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests.”

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RESTAURANTS SAVED

THE rescue deal has saved 51 of TGI’s 87 sites. These are located in:

  • Aberdeen Beach
  • Aberdeen Union Square
  • Ashton-Under-Lyne
  • Basildon
  • Birmingham NEC
  • Bluewater
  • Bolton
  • Bournemouth
  • Braehead
  • Braintree
  • Castleford
  • Cheadle
  • Cheshire Oaks
  • Coventry
  • Crawley
  • Cribbs Causeway
  • Doncaster
  • Edinburgh
  • Fareham
  • Glasgow Buchanan Street
  • Glasgow Fort
  • High Wycombe
  • Junction 27
  • Lakeside
  • Lakeside Quay
  • Leicester Square
  • Liverpool One
  • Meadowhall
  • Metrocentre
  • Milton Keynes
  • Milton Keynes Stadium
  • Norwich
  • Nottingham
  • Reading
  • Rushden Lakes
  • Sheffield
  • Silverburn
  • Southampton
  • St Davids
  • Staines
  • Stevenage
  • Stoke on Trent
  • London Stratford
  • Teesside
  • Telford
  • London The O2
  • Trafford Centre
  • Walsall
  • Watford Central
  • Wembley
  • Leeds White Rose

A spokesperson for the new owners said: “We are delighted to be working with such an enthusiastic and committed Management Team to both modernise the business and capitalise on the heritage of this iconic Brand.”

The American-inspired restaurant chain continues to operate all sites as usual today.

TGI Fridays cutomers baffled as location abruptly closes for good – they saw note on door & beer being loaded onto truck

TGI Fridays plunged into administration on September 18, putting all 87 locations at risk.

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When a company enters administration, all control is passed to an appointed administrator – who has to be a licensed insolvency practitioner.

Their goal is to leverage the company’s assets and business to repay creditors.

In TGI’s case, all 87 restaurants were put up for sale.

Hostmore said that it was not expecting to “recover any meaningful value” from the sale of sites.

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Since its debut in Birmingham in 1986, TGI Fridays quickly expanded nationwide, winning over diners with its casual American bistro-style experience.

Serving staff were known as Dub Dubs, and taught the art of entertaining their customers with jokes, banter, and other gimmicks like juggling and magic tricks, all performed with impeccable table craft and cheeriness.

A decade ago, the chain was acquired by a private equity firm, which rebranded it by removing all punctuation, resulting in the name being changed from T.G.I Friday’s to TGI Fridays.

In 2021, the company was spun off into Hostmore, a listed entity. The restaurants were briefly rebranded as ‘Fridays,’ but marketing chiefs quickly reverted to the original name after realising that customers still referred to it as ‘TGI’s.’

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Recently, the chain’s fortunes have waned, with Hostmore reporting that UK sales have dropped by more than 10% this year compared to last year.

TGI Fridays’ biggest market is the US, where it operates 128 restaurants, including franchised sites.

It also operates more than 270 restaurants in countries around the world.

RESTAURANTS AT RISK

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Exactly 36 TGI restaurants have not been bought as part of the rescue deal. These are located in

  • Barnsley
  • Birmingham Hagley Road
  • Bracknell
  • Brighton Marina
  • Cabot Circus
  • Cardiff Newport Road
  • Cardiff St David’s
  • Chelmsford
  • Cheltenham
  • Croydon
  • Derby
  • Durham
  • Enfield
  • Fort Kinnaird
  • Gateshead
  • Gloucester Quays
  • Halifax
  • Jersey
  • Leeds Junction 27
  • Leeds Wellington Bridge Street
  • Leicester
  • Lincoln
  • Liverpool Speke
  • Manchester Royal Exchange
  • Newcastle Eldon Square
  • Newport Friars Walk
  • Northampton
  • Prestwich
  • Romford
  • Sale
  • Solihull
  • Trinity Leeds
  • Watford North
  • West Quay

HOSPITALITY WOES

The hospitality sector has struggled to bounce back after the pandemic, facing challenges including soaring energy billsinflation and staff shortages.

In January 2023, Byron Burger fell into administration with owners saying it would result in the loss of over 200 jobs.

The Restaurant Group (TRG), which owned Frankie & Benny’s, Chiquito and Wagamama, shut dozens of sites in the same year.

It then went on to sell its Frankie & Bennys and Chiquito brands to Cafe Rouge owner The Big Table group in September 2023.

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Italian restaurant chain Prezzo also closed dozens of sites last year.

In April 2024, Tasty, the owners of Italian restaurant Wildwood and Dim T, a pan-Asian restaurant, announced plans to exit around 20 loss-making restaurants after a “challenging” start to the year.

In the same month, Whitbread revealed plans to slash its chain of branded restaurants across the UK.

Pub giant Stonegate has also raised fears about its survival as it races to plug its debts.

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Britain’s “rudest restaurant” went bust in September after its parent company, Viral Ventures UK, reportedly racked up more than £400,000 worth of debt.

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TGI Fridays rescue deal saves over 2,000 UK jobs

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TGI Fridays rescue deal saves over 2,000 UK jobs

Nearly 2,400 jobs at TGI Fridays’ UK business have been saved after the American-themed restaurant chain secured a rescue deal.

Breal Capital and Calveton have agreed to buy the chain whose UK owner fell into administration last month.

However, more than 1,000 TGI Fridays UK staff will be made redundant as only 51 of the 87 restaurants are being bought under the deal.

The administrators, Teneo, said the other restaurants have been closed with immediate effect.

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Newport launches £250m third European logistics fund

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Newport launches £250m third European logistics fund

Spec development north of London and a project in Malaga, Spain will be first projects for third fund in Newport’s series.

The post Newport launches £250m third European logistics fund appeared first on Property Week.

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Fade the Chinese market euphoria?

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Ajay Rajadhyaksha is global chair of research at Barclays.

Chinese equity markets are on fire. The major indices have now rallied an astonishing 30-35 per cent in just three weeks. The shift from the doom and gloom this summer couldn’t be starker.

Local brokerages are working overtime as Chinese households rush to open stock trading accounts. Trading systems are jammed. Appaloosa’s David Tepper, one of the most successful investors of all time, went on TV to declare that when it came to Chinese equities, he was willing to break his own risk limits.

Nor is he being particularly discriminating. When Tepper was asked what he was buying, he replied:

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‘Everything . . . everything — ETFs, we do futures . . . everything. Everything. This is incredible stuff for that place, OK, so it’s everything.

After years of doom and gloom, animal spirits are finally back in China’s equity markets. Surely, surely, it’s only a matter of time before animal spirits also lift up China’s economy? Well — colour us sceptical, at least for now.

The stock market rally is understandable. In mid-September, China’s central bank slashed interest rates and reserve requirement ratios for the banking system. More importantly for equities, the People’s Bank of China set up a lending facility to allow firms to buy stocks with borrowed money, and hinted at a standalone “stock stabilisation fund”.

A central bank willing to buy equities is a powerful thing. It’s the one entity in a modern economy that doesn’t issue debt. All a central bank has to say is “let there be money” and lo, there will be money. It doesn’t need to mark holdings to market. And it cannot be margin called. Little wonder that Chinese stocks, as beaten down as they were, took off after such a strong statement of political will from the government.

Line chart of CSI 300 index (in RMB) showing Chinese stonks to the moon

But the stock rally will eventually lose steam unless the underlying economy picks up. And here China still has a problem. The economy has disappointed enormously for several quarters, and nowhere is this more apparent than in the all-important real estate sector.

For decades, getting on the property ladder was the key to wealth creation. You bought one apartment and after a few years, you bought another if you could. Rental yields were low, but that didn’t matter because everyone knew that home prices would keep rising.

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Real estate construction fed a bunch of other industries — buy an apartment, buy an automobile. A new suburb would be built, which would lead to investment in transportation arteries, the electricity grid, and a host of other infrastructure spending.

And the numbers were astronomical. That well-known statistic about how China poured more concrete in two years than the US did across the 20th century? Well, it’s true. More to the point, over the past decade, China built multiples more housing flooring space on average per year than the United States did. Per capita.

All of that came to a crashing halt a couple of years ago. Since then, home prices have fallen, eroding trillions of dollars in household wealth. Tens of millions of housing units lie empty across the country, even though the authorities have repeatedly cut mortgage rates and down payment ratios, including a couple of weeks ago.

Youth unemployment has risen to record highs, to the point where China briefly stopped publishing that statistic. While the West has battled inflation, China has struggled with deflation. Consumers have pulled back on spending and have saved even more feverishly than usual. Credit growth has slowed to a crawl, as has domestic demand. There are worrying signs of wage deflation.

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Exports and the manufacturing sector — the one success story of recent years — face a huge headwind if the US imposes harsh tariffs after the November 5 election. Even the non-US world is pushing back on China’s exports, especially in the auto sector. There is an eventual demographic time-bomb ticking as well but China’s immediate problem is that animal spirits have disappeared from its economy.

The policy prescription seems well-understood. A number of prominent Chinese economists have called for China to do Rmb10tn of new fiscal stimulus to get the economy moving — but of a different sort than the past.

Previous rounds of stimulus involved heavy investment in manufacturing, and left China with massive overcapacity in many industries and a mountain of debt.

The goal this time is to give money to Chinese consumers, encourage them to spend, and jolt the domestic economy into action. It is an approach that Chinese policymakers have historically resisted. That’s why it is encouraging that for the first time, the government is planning cash handouts, rich cities like Shanghai and Ningbo are handing out consumption vouchers, etc etc.

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But for all the excitement of recent days, China has so far announced just Rmb2tn of extra gross issuance of debt. At current exchange rates, that’s less than $300bn. That’s really not much for a $18tn economy.

And it’s minuscule compared to previous rounds of Chinese stimulus, which China has usually done through both fiscal (central and state government spending) and quasi-fiscal channels (banks pressed into “national service” to lend massive amounts to companies, local government vehicles, investment funds, households, etc).

In the 2009-10 and 2015-16 rounds, China’s overall deficit (once quasi-fiscal efforts were factored in) was 15-20 per cent of GDP. That was absolutely massive. The 1-1.5 per cent of GDP so far announced is a drop in the bucket, especially compared to the scale of the problems. That has left China as a system — households, corporates, local and state governments, and the central government — heavily indebted, and understandably reluctant to reopen the credit spigots.

On the other hand, the country has done policy U-turns before. China had perhaps the harshest Covid lockdown policies in place by 2022, while the rest of the world had largely reopened. And then in November 2022, the government did a complete about-turn and opened China up. Perhaps its fiscal approach will change similarly.

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There are already media reports of another $142bn in new capital for the banking system, which would be a positive step if it actually occurs. Investors expect several trillion renminbi more in new stimulus to be announced soon.

And this isn’t about a return to the glory days of commodity supercycles and 8-10 per cent growth rates. The goal of stimulus now should just be to put a floor under growth and prevent it from falling below the 5 per cent target.

But the clock’s a-ticking. Like the football player in Jerry Maguire, markets need China to “show me the money!” Ideally in the next few weeks, with all eyes on the October Politburo meeting.

It’s hard not to be cynical. China’s National Development Commission has announced a press conference on Oct 8 to discuss “a package of incremental policies”, and the word “incremental” doesn’t exactly instil confidence. Even if China does announce Rmn10tn in new spending (a massive lift from what it has done so far), this stimulus would still be far smaller (as a share of GDP) than in past rounds.

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Chinese equities are famously momentum-driven, and even after the latest rally the Shanghai Comp is still a well below the highs of 2015 despite China being a much larger economy than a decade ago. So the latest rally might well continue for a while, even if policy underwhelms.

But expectations have built up a lot in recent days. If the government fails to get the economy moving yet again, that will disappoint a lot of people, and the rally will be remembered as just another brief spell of market euphoria rather than the start of a sustained China rebound.

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The ‘unique’ Greek island where locals holiday – that’s fighting to stay unpopular

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The 'unique' Greek island where locals holiday - that's fighting to stay unpopular

A LITTLE Greek island has rejected a huge tourism expansion – as locals want it to stay underdeveloped.

The island of Skyros is unlikely to be known by most Brits, being a much smaller holiday destination.

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But new proposals recently sought to include new marinas and cruise ship docks, as well as more hotels.

However, the island’s mayor Kyriakos Antonopoulos confirmed that the local council had rejected the major plans.

He said, according to local media: “We’d rather stay ‘undeveloped’ than lose what makes Skyros unique.”

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The largest of the Sporades Islands, just 3,000 people live on the island.

The majority of tourists who visit are Greek, so don’t expect to see many other Brits around.

It also plays a part in two of the famous Greek tales – not only did Theseus (who killed the minotaur) die on Skyros, but it was also where Achilles is said to have departed from to go to Troy.

The capital town of Chora is where most of the cafes and restaurants are, with popular local dishes including pasta with lobster.

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The best souvenir to take home? One of the many ceramics, with the island known in Greece for their pottery.

It is also home to one of the rarest horse breeds in the world, the Skyrian horses.

You won’t find them in the wild, but tourists can visit Mouries Farm to see them.

Little Greek island Symi has hidden beaches and more as new UK flights start this summer

Otherwise the island has two main seaside resorts – Molos and Magazia.

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Molos beach is one of the most popular, with a huge stretch of sand and clear waters for swimming in.

It has a number of beach bars as well as umbrellas and loungers available to rent.

While it gets busy in the summer, some tourists have said they had the beach “practically to themselves” on TripAdvisor even in June.

There is also Agalipa beach with pink rocks and soft sand, although you can only get there by 30 minute hike or boat.

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If you want to find some of the secret sea caves with bright blue waters such as Diatripti or Pentekali cave, you will have to hop on a boat.

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Don’t expect huge resort chains on the island, but instead there are locally-run hotels and B&Bs.

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One of the most popular is the four-star Skiros Palace, right by the beach, or Ammos Hotel, also four stars with just 21 rooms.

The best way to get to Skyros is to fly, with flights from Athens taking around 40 minutes.

Otherwise there are also ferries, which depart from Evia island and take around an hour and a half.

Despite tourists overlooking Evia, it is the second biggest island of Greece – here’s why you should visit.

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We’ve found some other quieter islands in Greece to explore next summer too.

Other lesser-known Greek islands to visit

There are more than 6,000 islands in Greece to visit – here are some that are off the beaten track.

Andros

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A green, lesser-known island in the Cyclades with dense vegetation, high mountains, and deep gorges. It’s a popular destination for sailing holidays. 

Telendos

A small island that’s essentially a mountain rising out of the sea. It’s accessible by a 10-minute boat ride from Kalymnos. Telendos is known for its lack of roads and cars.

Lesbos

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An island associated with the ancient poet Safona and the origin of the term ‘lesbian’. It’s also known for its monuments and picturesque landscapes.

Karpathos has been named one of the most underrated places to visit by Tome Out, raving about the “near-deserted beaches home to monk seals”.

If you really want to do the more popular islands, here is how to do Mykonos and Santorini in one holiday.

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