Caracal Daily | July 23
Caracal Daily | July 23
Caracal Daily is geopolitical business news + intelligence for comms pros.
Geopolitics is disrupting every business and industry. Caracal is here to help.
Always Be Communicating.
Happy Friday.
Here’s today’s Caracal Daily:
*** Ross Rant ***
Talking Markets: "I think we can make a US-UK trade agreement happen"
I did a London-based financial pod, Talking Markets, a few weeks back.
I shared some insights on US-UK commercial relations and topics impacting both nations at the intersection of commerce and politics.
Also, I mentioned "US-UK Yes" and the prospects of making a US-UK trade deal a reality.
Here is a snapshot of the conversation - click here.
*** Globalization + Geopolitics ***
WP: Netanyahu goes to Washington in the shadow of Middle East disaster
AFP: Netanyahu's US visit reminder of 'ingrained' US support of Israel
+ Hours before flying to Washington, Binyamin Netanyahu, Israel’s prime minister, said that Israel will remain “America’s indispensable and strong ally in the Middle East”, regardless of who is elected in November.
Bloomberg: Nippon Steel hires Pompeo to help clinch purchase of US Steel
+ Trump’s former Secretary of State will be Nippon Steel adviser
+ Trump and Vance have joined Biden in criticizing US Steel deal
Biden's exit from race throws US-Japan alliance into uncertainty: Nikkei reports months of lame-duck presidency could amplify China, Russia risks.
Is this a new era of warrior Japan? The country is spending more on its armed forces. But not everyone is on board. FT
NHK: Taiwan holds air-raid evacuation drills and large-scale military exercises
China's expanding Arctic ambitions challenge the US and NATO Newsweek
AP: China and the Philippines announce deal aimed at stopping clashes at fiercely disputed shoal
Nvidia is working on a new AI chip for China that's compatible with US export controls and could ship in 2025, according to sources.
China is the West’s corporate R&D lab. Can it remain so? Foreign firms want Chinese boffins. America and China may have other plans. Economist
China misses plenum chance to steady economy before US election: Beijing risks losing grip as property market woes, consumer slump threaten stability. Paul Cavey
The US Space Force is working to create new ground-based jammers by the end of the year to counter Chinese and Russian satellite capabilities.
Ukrainian naval drone attacks force Russian fleet out of Crimea: Le Monde reports to escape these increasingly capable drones, Moscow's navy has begun a strategic withdrawal to Abkhazia, a separatist Georgian territory.
Isolated Germany fears a second Trump term: The possibility that a new administration could weaken security guarantees and increase tariffs on US imports is causing angst in Berlin. FT
The Germany-shaped void at Europe’s heart: Olaf Scholz’s government is punching below its weight in Brussels. Economist
France's left still struggles to find a candidate for prime minister: Le Monde reports the left-wing Nouveau Front Populaire alliance leaders met again over the weekend. While previously suggested candidates, who have since backed down, were key to discussions, three new names were floated.
Santorini suffers from too many tourists: Fortune reports the Greek island of Santorini can’t afford “one single bed more” for accommodation, its mayor complains, as tourist hotspots push back against having too many visitors.
Europol warns of rise in AI child abuse imagery: AFP reports AI makes it more difficult to identify real-life victims and perpetrators, the agency said. It also warned of using so-called "deepfake" technology to mimic real people.
Microsoft blames EU rules for allowing world’s biggest IT outage to happen: The Telegraph reports that the European Commission deal prevented software giant from making security changes that would have blocked CrowdStrike update, claims tech giant.
+ Microsoft cannot block access to the Windows kernel because of a 2009 agreement with the European Commission meant it was unable to make security changes that would have blocked the CrowdStrike update that triggered widespread travel and healthcare chaos on Friday.
+ A Microsoft spokesman said it cannot legally wall off its operating system in the same way Apple does because of an understanding it reached with the European Commission following a complaint. In 2009, Microsoft agreed it would give makers of security software the same level of access to Windows that Microsoft gets.
+ Microsoft said in a blog post Saturday that 8.5 million Windows machines were hit, or less than 1% of its global footprint. That number was enough to bring down the operations of major businesses across industries including healthcare, media, and restaurants.
Europe’s rushed attempt to set the rules for AI: The EU says its pioneering legislation will protect humans from AI’s dangers. Critics say it is undercooked and will stifle innovation. FT
*** US Politics + Elections ***
WP: Lawmakers grill Secret Service director amid calls for her resignation
Trump assassination attempt: Secret Service admits 'most significant failure in decades': Le Monde reports testifying about the July 13 shooting aimed at former president Donald Trump, Secret Service Director Kimberly Cheatle acknowledged it as an 'operational failure,' and took 'full responsibility,' amid calls to resign.
The undoing of Joe Biden: Three weeks of Democratic party agony that humbled the most powerful man in the world. FT
Joe Biden bows to Democrats who wanted him out, upending US politics: Passing the baton to Kamala Harris is a $96 million bet that she can energize the campaign in the shortest presidential race in history. Bloomberg
FT: Pelosi backs Harris as Democratic grandees fall into line
Bloomberg: Harris cements Democratic support as 2024 election is reset
+ Democrats have now raised over $100 million via ActBlue since the day Joe Biden dropped out of the race for president and endorsed Vice President Kamala Harris.
How Kamala Harris’s awkward moments became internet gold: Progressive social media users are making clips of Harris go viral, potentially boosting her profile with younger voters. WP
Why are people mixing Kamala Harris’s laugh into pop songs? Bethy Squires
Harris allies trying to recruit Obama hand David Plouffe for top campaign role: Politico reports the outreach comes as the campaign, which is being built on the fly, attempts to assemble A-list talent.
The new Kamala Harris presidential campaign branding came together within hours: After President Biden dropped out of the 2024 race, the campaign’s design team got to work on a new branding universe for Harris. FC
2024 US election: Republicans pushed to rethink campaign strategy after Biden's withdrawal: With the US president's exit from the race, Donald Trump loses his most suitable Democratic opponent. Le Monde
Here’s where Kamala Harris stands on Big Tech, AI, and the climate fight: One of her signature issues was curtailing the distribution of pornography on social media, particularly “revenge porn.” FC
Can Kamala Harris win Silicon Valley? Fortune
In Silicon Valley, where Trump made inroads, Democrats are now invigorated: Elon Musk, Marc Andreessen and others have endorsed Donald J. Trump. But President Biden’s withdrawal has re-energized Democrats across the tech industry and may blunt that momentum. NYT
Has Silicon Valley gone MAGA? Some of America’s wealthiest tech investors have come out for Trump. But most Big Tech leaders are staying silent, for now. FT
How Biden’s AI policies pushed some Silicon Valley bigwigs toward Trump: Trump has promised VCs and AI companies a hands-off approach to AI regulation. FC
Big Tech's phony Trumpism: Why Marc Andreessen is wrong to support Trump, according to Marc Andreessen. BI
Microsoft, OpenAI push back on Republican AI strategy: Politico reports executives from Microsoft and OpenAI pushed for regulatory “rules of the road” on Friday. The two spoke as the Republican Party seems poised to undo Biden’s artificial intelligence executive order and take a light touch to restrictions on AI should former President Donald Trump be elected again.
+ “We do think we need some rules of the road. And also would prefer not to have this regulated at the state level. Fifty states regulating this will make business impossible." -- Teresa Hutson @ Microsoft
US to phase out federal usage of single-use plastics by 2035: Le Monde reports the World Wildlife Fund has warned that unless governments reach an ambitious agreement with legally binding rules, global plastic pollution is set to triple by 2040.
*** Disruption + Innovation ***
Japanese carmakers ‘very scared’ by China’s rapid EV development: Chief of Sony-Honda’s joint venture says Japan needs to shake up its conservative corporate culture. FT
Boeing received orders for up to 70 airplanes at the Farnborough International Airshow.
French TV group Canal+ to list in London as part of Vivendi break-up: FT reports French billionaire Vincent Bolloré to split up Vivendi to boost valuations of its individual businesses.
WP: Microsoft’s global sprawl comes under fire after historic outage
AI start-up Cohere raises $500mn as it seeks to take on OpenAI: FT reports funding round values Canadian group launched by Google alumni at $5.5bn.
An AI mafia is forming before our eyes: Here’s the definitive map: Ex-employees at places like OpenAI and Microsoft have gone on to form some of the most promising upstarts in the AI sector. FC
The first wave of AI innovation is over. Here’s what comes next: Businesses themselves, not closed-source AI companies, need ownership and control of their proprietary models. FC
The data that powers AI is disappearing fast: New research from the Data Provenance Initiative has found a dramatic drop in content made available to the collections used to build artificial intelligence. NYT
Elon Musk says Tesla to use humanoid robots next year: WSJ reports the CEO said the electric-vehicle maker would use the robots internally first before producing them for other companies.
*** Culture ***
Ghana's architectural heritage Design233
We asked: “How do you price your wine list?” Punch
*** Sport ***
How America’s fastest swimmers use math to win gold Quanta Mag
WP: LeBron James will be a US flag bearer in Opening Ceremonies
Friday: The 2024 Summer Olympics opening ceremony will take place. The event officially gets underway at 1:30 pm ET, and an enhanced encore will be broadcast on NBC at 7:30 pm ET.
Macron says France is 'ready' to host Paris Olympics: Le Monde reports: 'We are ready and we will be ready throughout the Games,' the French president said during a visit to the Olympic Village, four days before the opening ceremony is set to take place on the Seine.
WP: TNT matches Amazon in NBA media rights deal, setting up legal battle
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal