Weekend Box #128: Google Goes Nuclear, De La Rue Sale & more

Editor's Note

Welcome to The Weekend Box, Audley’s round-up of interesting or obscure political, business, and cultural news from around the world.

At the end of every busy week in Westminster, ministerial private offices ask their departments to submit papers to the ‘weekend box’ for Ministers and Secretaries of State to catch up with over the weekend. Similarly, we would like to send you into the weekend with a few stories to catch up with at your leisure.

So, let’s delve inside The Weekend Box.

Gone Fission

Earlier this week, Google announced a deal with Kairos Power, a California based start-up, to develop small modular reactors (SMRs).

?The landmark agreement makes Google the first major tech company to commit to using next-generation nuclear reactors to meet its rapidly growing energy needs, driven primarily by its enormously energy-intensive?AI data centres.

?SMRs, which are smaller, cheaper, and faster to build than traditional nuclear reactors, offer the potential for a reliable, 24/7 carbon-free energy source. Kairos Power is developing the reactors with an aim for them to be operational by 2030.

?Kairos’ reactors will use molten fluoride salt?as a coolant, a safer and more efficient alternative to traditional water-cooled reactors. For Kairos – whose innovative SMR design was approved by the US Nuclear Regulatory Commission last year – the interest of Big Tech will represent an enormous boost.

?As Microsoft and Amazon make similar moves, Big Tech could prompt the rapid scaling of SMRs in the US. This brings a potential public policy controversy, as the country’s strategy for energy generation may no longer be the sole preserve of decision makers in government.

?And these projects are not risk-free. As of today, no SMR has operated for commercial use in the US, and the nuclear industry has a history of cost overruns and delays. If successful, the partnership could mark a major advancement in the US nuclear renaissance and help Google secure its position as a leader in clean energy innovation.

?Meanwhile, in South Wales, Last Energy, an American company, plans to build four ‘micro’ nuclear?power stations, aiming to provide reliable, private-financed power to industrial customers by 2027. As with the US, nuclear energy will need to play a critical part of the UK’s transition away from fossil fuels. Mini-nukes may be the answer.

Image credit: Anthony Quintano. License.

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Canada and India In Diplomatic Row

Canada and India engaged in a full-scale?diplomatic spat this week, after Canadian PM Justin Trudeau accused India of conspiring in ‘criminal’ acts and expelled six diplomats, including India’s High Commissioner.

Trudeau named Sanjay Kumar Verma as a “person of interest” along with the other diplomats over the killing of Hardeep Singh Nijjar, a Sikh separatist and Canadian citizen, near Vancouver last year. Canadian police had gathered what the Foreign Ministry called “ample, clear and concrete evidence” of them being involved in a murder plot, for which four Indian citizens were arrested and charged in May. In response, India issued a furious dismissal of the “preposterous imputations”?outlined by Canada and expelled six Canadian diplomats, including charge d’affairs Stewart Wheeler.

The row has been brewing since soon after the murder of Nijjar, an activist for the pro-Khalistan movement seeking a separate Sikh state in India, after Trudeau mentioned suspicion about Indian state involvement in September. This prompted a belligerent response from Indian PM Narenda Modi and Canada withdrew 41 of its diplomatic staff from India after Modi rescinded their diplomatic protection.

There are around 770,000 Sikhs in Canada, the largest concentration of Sikhs outside India. Canada regards political activism such as Nijjar’s as exercising the right to free speech under the law, while Modi’s government accuses Canada and other countries like the UK of allowing such activists to plot terrorism. Modi has also accused Trudeau of playing politics with the case, seeking the votes of Canada’s Sikhs as he faces an election with dismal approval ratings – in a recent IPSOS poll, 28% thought he deserves re-election.

Yet Canada and its Five Eyes allies point to other acts of violence and intimidation against their citizens thought to be sponsored by India and call for Modi’s government to cooperate with the legal case.

Image credit: Mattias Nutt. License.?

Bold Korea Move

In a remarkable story from Kyiv this week, North Korean soldiers are allegedly supporting Russian troops on the ground in Ukraine. Officials, including President?Volodymyr Zelensky, have said that in addition to providing large shipments of artillery shells and ballistic missiles to Russia, North Korea has been sending military engineers and soldiers to fight alongside Russian troops.

According to reports, North Koreans were among the dead after a Ukrainian missile strike on Russian-occupied territory near Donetsk last week. These claims have been supported by South Korea, with Defence Minister Kim Yong-hyun telling MPs that it was “highly likely” that North Korean officers had been deployed to fight alongside Russians and several had died in the attack.

However, the scale of the operation is less clear. Initial analysis had pointed to a small deployment of specialist teams supporting launcher systems for KN-23 missiles, but reports this week suggest a much larger operation. Politico estimates there are some 3,000 North Koreans being gathered to fight in Ukraine in the ‘Buryat Battalion’, while The Kyiv Independent reports that North Korea has already sent a mammoth 10,000 soldiers to Russia.

The rationale seems clear; for Putin, North Korean troops bolster resources as Moscow struggles to further mobilise citizens amid growing unease about the length and cost of the war. For Kim, the War in Ukraine represents a rare opportunity to test new weapons and the military’s preparedness for modern warfare.

The reports demonstrate a further tightening of ties between Moscow and Pyongyang, following the mutual defence pact signed this summer. President Zelensky called the partnership a “coalition of criminals”, while the Kremlin dismissed reports as “another fake news.” A clearer picture will likely emerge over the coming weeks, but for now, this development will surely add to the concerns of Ukraine’s key Western backers.

Image credit: Office of the President of the Russian Federation. License.

De La Rue The Day

De La Rue, the?Basingstoke-based printing and authentication company, was once one of Britain’s most successful businesses. Founded over 200 years ago, it evolved from an arm of Thomas de la Rue’s straw hat-making business to become the world's largest commercial printer of banknotes and a reliable member of the FTSE 100. Such was its success that in 2011, it rejected a 935p-a-share bid from a French digital security company.

Since then, an obvious decline in the demand for banknotes along with the loss of important contracts and allegations of corruption, led to a series of profit warnings.

Today the company is worth only c.￡200m with a share price of 105p – and that includes a 20p leap this week following the sale of its ‘authentication’ arm to America’s Crane NXT for ￡300 million cash.

This deal will pay off some of the company’s debts and plug what is reported to be a ￡78 million shortfall in its staff pension scheme. Beyond the 6,500 current and former employees owed pensions from De La Rue, the real winner here is activist investor Richard Bernstein at Crystal Amber. In 2023, Bernstein ousted Kevin?Loosemore as chairman and replaced him with seasoned NED, Clive Whiley. At the same time, Bernstein increased his stake from c.10% to c.15%.

Whiley is credited with orchestrating the sale which, while it doesn’t take De La Rue entirely to safety, gives it a much better outlook than this time a week ago. Speculation continues as to whether the company will be able to focus on banknote printing and restore itself to a prime spot in the British business hall of fame, or if it’s now ripe for further break-up or takeover bid.

Image credit: Bank of England. License.?

Upgrades For Paw Patrol

The?MoD this week announced that British army dogs are receiving a ￡3 million kit upgrade to support them on the frontline. The new equipment includes blast-proof boots, and custom-made “doggles” — goggles that shield their eyes from flying debris and dust, ensuring they can safely search for explosives or trapped individuals in hazardous environments. Their sensitive ears will also be protected with ear defenders, designed to minimize damage from loud noises like gunfire and explosions.

There are more than 500 dogs across the army, RAF and in military policing, and these upgrades are critical for their safety and efficiency. The new equipment deal is part of a five-year MoD contract deal with Surrey-based Von Wolf K9 animal kit firm. The enhanced gear has been specifically tailored to meet the demands of these highly skilled dogs, who are trained to detect?IEDs, locate casualties, and protect personnel. The protective boots, for instance, not only shield their paws but also prevent burns from hot surfaces, whilst revamped harnesses are also being introduced, equipped with buckles and D-rings to securely attach dogs to soldiers parachuting onto targets or fast-roping from helicopters.

With this new equipment, military dogs will be better prepared than ever to perform their duties on the front line. For centuries, animals have played a crucial role in armed forces worldwide, serving as loyal companions, protectors, and essential assets in detecting explosives, conducting search-and-rescue missions, and supporting military operations in ways that technology alone cannot replace. As a Ministry of Defence spokesperson noted, “Dogs are the armed forces' best friend and have invaluable roles in combat, from mine-clearing to sniffing out danger, to help keep people safe," and this new investment demonstrates just how deeply valued they are.

Image credit: Dominic King. License.

And that's it for this week. I hope you found something of interest that you might want to delve into further. If so, please get in touch at [email protected]

For now, that’s The Weekend Box officially closed.?

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