Riding an evening train out of Kyiv late last week, I got the feeling I wasn’t headed towards a specific destination, but simply moving away from something – most likely the bombs and dive-bombing drones, the blackouts and waterless days that had come to define life in the Ukrainian capital.
This got me thinking of Turkey’s political scene and where it might be headed, as inflation continues to hit record highs with a potentially game-changing election looming next spring. Last week, days after the Turkish Republic kicked off its 100th year, the governing AKP marked two decades in power.
“The longer a democratic regime survives, the less likely it is to collapse,” Michael McFaul, a former US ambassador to Russia, wrote in a 2009 book. “The longer an autocracy survives, the more likely it will collapse.”
For much of its history, Turkey’s leaders have seemed to mock this assertion by balancing on the line separating these labels. The country’s founder, Mustafa Kemal Ataturk, is a figure whose legacy seems to grow more impressive and more problematic with each passing year.
He is firmly established as a singular moderniser in the Middle East, bringing a relatively stable democracy and a dash of secularism to a region that has seen little of either over the past century. Ataturk also compares favourably to European leaders of his era.
Consider that last week marked the centennial of Benito Mussolini’s march on Rome, soon after which he became Italy’s leader and forged a fascist totalitarian state. Inspired by the Italian success, Adolf Hitler launched his famed Munich Beer Hall Putsch the next year. That coup failed, but it made his name and by the end of the next decade, the two were plotting to conquer all of Europe – and nearly did just that.
Turkish society is probably too polarised to achieve a lasting consensus anytime soon
That Ataturk achieved all he did in Turkey in this same period places him among the handful of great 20th-century leaders. Thursday marks his 84th death anniversary, which will again offer Turks the opportunity to express their abiding pride and admiration in their own inimitable way.
Some months after I moved to Turkey, back in 2013, I was walking along the Bosporus near the fairytale edifice of Dolmabahce Palace when passing cars began rolling to a stop, one after another. Pedestrians also froze as the drivers opened their doors, stepped out of their vehicles and stood stock still. I paused and looked around, dumbfounded and unsettled. Had there been an alien invasion, or a major nuclear attack? Was this the most well co-ordinated flash mob of all time? Then I recalled reading about this annual commemoration.
A few put their hands over their hearts, but most of the Turks observing this moment of silent remembrance on that Istanbul avenue during morning rush-hour kept their arms at their sides and stood still for a full minute before, all at once, continuing on with their day. It felt like something out of the Twilight Zone, or a more innocent age, and remains to this day the most stirring show of national respect I’ve ever witnessed.
Yet, Ataturk was no saint. Some charge him with failing to halt or curb the Armenian genocide, and in a recent column I wondered if he viewed Arabs as inferior. His 15-year reign is widely seen as a period of autocratic rule. When Turkey held elections a dozen years after the state’s founding, only one party, Ataturk’s CHP, was on the ballot.
Many of his policy decisions – doing away with the Arabic script, banning the fez, ending the caliphate, restricting Islamic observances – were made by fiat. And it’s easy to draw a line from Ataturk’s crackdown on Islamic influence on public life to the birth and subsequent dominance of the AKP.
The Muslim Brotherhood was founded in Egypt in 1928 partially in response to the end of the caliphate. The National Vision party of Necmettin Erbakan, essentially a Turkish chapter of the Brotherhood, mentored the AKP’s founders, who in turn nurtured the grievances of conservative Turks marginalised by Kemalism.
In creating his secular democracy, Ataturk believed he had to align with the military and put Islam in a box; a few generations later, this led to blowback in the form of the AKP. Are Turks now set to chart a new path?
Turkey watchers generally saw the AKP’s emergence and ending of military tutelage as marking a post-Kemalist period. In recent years, there’s been much talk of a post-post-Kemalist era, with Turks moving away from AKP conservatism and strongman politics and towards something else.
Perhaps we’ll start to see a synthesis, as the competing ideologies cross-pollinate. Last month, Kemal Kilicdaroglu – the head of Ataturk’s old party, the main opposition CHP, and the likeliest challenger to President Recep Tayyip Erdogan – suggested a new law enshrining women’s right to wear the headscarf in public.
Alternatively, the coming decades in Turkey might echo the Democrat-Republican pendulum swings the US presidency has seen since the early 1990s. Turkish society is probably too polarised to achieve a lasting consensus anytime soon. Success might simply be a string of somewhat free and fair elections, relative stability and a degree of political pluralism.
Seeking stability myself, I settled on Budapest as my first port of call after leaving Ukraine. After a late-night arrival I awoke to dark smoke, charred debris, bombed-out vehicles and fire-damaged buildings. As fate would have it, Kate Winslet and a vast crew were shooting a major Hollywood film about a heroic Second World War photojournalist just outside my window.
Someday soon, Turks might also learn that going someplace new doesn’t always change the scenery as much as one might hope.
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
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Richard Flanagan
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Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal
1.5 stars
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Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)
TV: BeIN Sports
Gothia Cup 2025
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1,942 teams
116 pitches
76 nations
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2 Kuwaiti teams
THE%20SPECS
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WHAT IS A BLACK HOLE?
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