Caracal Daily | August 1

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Happy Thursday.

Here’s today’s Caracal Daily:

*** Globalization + Geopolitics ***

Reuetrs: Ukraine says it repelled one of Russia's largest drone attacks of war

Volodymyr Zelensky: Giving up Ukrainian territories is 'a very, very difficult' question: In an interview with Le Monde, Ukrainian President Volodymyr Zelensky discusses the possible outcome of the war and calls on China to put pressure on Russia to open the way to negotiations. Le Monde

Killing of Two Israeli enemies puts Middle East on brink of wider war: WSJ reports strikes on Hezbollah in Beirut and Hamas in Tehran have added new risks as diplomats try to head off an escalation.

Two Israeli strikes in Beirut and Tehran reshuffle cards of conflicts with Hamas and Hezbollah: Le Monde reports Hamas leader Ismail Haniyeh was killed in Tehran on Wednesday, in an operation attributed to Israel by Iran. Earlier, Israel had claimed responsibility for a strike in Beirut targeting Fouad Shukur, a Hezbollah commander.

WP: Hamas leader assassinated; Netanyahu says Israel dealt ‘crushing blows’ to Iran-backed groups

Assassinated: The arch-enemies of Israel killed in twin strikes: Abrupt killings of a shadowy Hizbollah leader and Hamas’s political chief have shaken the region. FT

How was Hamas leader killed? The attack on Ismail Haniyeh mapped: Iran has vowed ‘harsh punishment’ for Israel after a rocket strike on Tehran killed the political leader of Hamas and an airstrike on Beirut targeted a Hezbollah commander. The Times

EU and US race to prevent Mideast war after Israeli assassinations: FT reports diplomats hold crisis talks in effort to stop full-blown war in reaction to killing of Hizbollah and Hamas leaders.

The Middle East must step back from the brink: The path to doing that still starts with a ceasefire in Gaza. Economist

US military launches first airstrike in Iraq in months: WP reports the operation south of Baghdad targeted unspecified “combatants” and followed attacks on US forces in recent days, officials said.

Bloomberg: US weighs restrictions on China’s access to AI memory chips

+ SK Hynix and Samsung could be affected by the new US rule

+ China’s AI memory chip capability lags behind global rivals

Nvidia and ASML surge after reports of US export control exemptions: Nikkei reports US tech stocks rally on renewed AI enthusiasm.

China wants to start a national internet ID system: NYT reports the government said the proposal would protect online privacy. Critics said it could further concentrate government control over the internet.

AP: South Korean military intel official arrested for allegedly leaking secrets, reportedly on spies

Japan builds ties in Russia's backyard with Central Asia summit: Nikkei reports Tokyo to offer support for decarbonization and logistics in resource-rich region.

Germany blames China for ‘serious’ cyber attack: FT reports Berlin says Beijing behind 2021 hack on precision mapping agency.

France faces Algeria's wrath after concessions to Morocco over Western Sahara: Le Monde reports Algeria on Tuesday announced the withdrawal of its ambassador to Paris following President Emmanuel Macron's letter to King Mohammed VI, in which he said Morocco's plan was the 'only basis' for resolving the conflict.

EU calls for help with AI: The European Union has kicked off a consultation on rules that will apply to providers of general-purpose AI models under the bloc’s AI Act, its risk-based framework for regulating applications of AI.

***  US Politics + Elections ***

Trump says Harris ‘became a Black person’ as NABJ interview turns hostile, chaotic: WP reports Donald Trump immediately berated a Black reporter who questioned him about his record of offensive comments about Black people.

As JD Vance takes heat, Trump fans rally to his side: GOP base is sticking with the embattled vice-presidential pick, but swing voters are an open question. WSJ

‘Weird’: How an old term for fate became a political slur: Long before the Kamala Harris and JD Vance campaigns traded it as a barb, Shakespeare’s three witches in ‘Macbeth’ played a pivotal role in transforming its meaning. WSJ

‘Weird’ is the most effective insult Democrats have tried. Here’s why. Monica Hesse

Trump is ‘weird,’ Vance is ‘creepy.’ Finally, the Democrats start name-calling. Jessica Bennett

Trump and the politics of Bitcoin: Big Tech libertarians see crypto as a way of blowing up the Fed. Edward Luce

Ken Griffin is spending millions to shape the new face of the Republican Party: The hedge fund billionaire is backing candidates who share his conservative priorities — as the former president steers Republicans toward populism. Bloomberg

How Team Kamala will pick a running mate: There’s a new inner circle at the top of the Democratic Party. Gabriel Debenedetti

A new Economist/YouGov poll finds Kamala Harris leading Donald Trump nationally, 46% to 44%.

The United Automobile Workers endorsed Vice President Kamala Harris.

More than 100 Silicon Valley investors pledge to support Kamala Harris: The group, including Democratic donors such as Reid Hoffman and Vinod Khosla, has been organized under an effort called VCsForKamala. NYT

Larry Sabato’s Crystal Ball on controlling the US House: “The party that wins the presidency probably will end up winning the House majority too, although the margins in the House are so tight that a split outcome is not out of the realm of possibility.”

TC: Copyright Office tells Congress: ‘Urgent need’ to outlaw AI-powered impersonation

How the Kids Online Safety Act was dragged into a political war: The Senate overwhelmingly passed the Kids Online Safety Act on Tuesday, but the legislation faces an uphill battle in the House because of censorship concerns. NYT

Lawmakers want to carve out intimate AI deepfakes from Section 230 immunity: The Intimate Privacy Protection Act would require platforms to have a ‘reasonable process’ to address cyberstalking and digital forgeries. The Verge

Senators introduce long-awaited bill to protect artists from AI deepfakes: Rolling Stone reports the NO FAKES Act would establish protections for when an individual's voice or likeness are used without permission with artificial intelligence.

AI startups ramp up federal lobbying efforts TC

Washington prepares for the ‘Super Bowl of Tax’: Even with control of the White House and Congress up in the air, lawmakers and lobbyists are gearing up for a big debate next year over expiring measures in former President Donald Trump’s tax law. NYT

*** Disruption + Innovation ***

Meta sees AI costs surge as digital ad revenue grows: WSJ reports Meta Platforms said quarterly digital advertising sales increased rapidly even as its investments in artificial intelligence and the metaverse weighed on profits.

Meta sees off fears of AI overspending: The Times reports the social media giant beat Wall Street’s expectations with $39.07 billion revenue.

Gartner released a report suggesting that around a third of generative AI projects in the enterprise will be abandoned after the proof-of-concept phase by year-end 2025. The reasons are many — poor data quality, inadequate risk controls, escalating infrastructure costs and so on.

Microsoft last week previewed its own AI-powered search experience, called Bing generative search.

A CIO canceled a Microsoft AI deal. The reason should worry the entire tech industry. BI

Will AI upend white-collar work? Consider the Hollywood editor. Actors and writers won strict limits on artificial intelligence in last year’s contract negotiations, but editors and artists face a growing challenge. NYT

Power-hungry data centers are gobbling up Texas amid AI boom: A state’s infamously strained electric grid faces a new threat. Bloomberg

How YouTube took over our television screens: The platform first known for viral videos now attracts more viewers on TVs than Netflix, Disney+ or Amazon Prime Video. NYT

WSJ: Delta CEO says CrowdStrike tech outage cost it $500 million

Starbucks vs. The grind: Long lines. Plunging sales. Pissed-off employees. Can the world's largest chain of coffeehouses make coffee fun again? BI

Antarctic temperatures soar 50 degrees above norm in long-lasting heat wave: WP reports this historic warm spell in East Antarctica is an ominous example of the temperature spikes this polar climate could experience more frequently in a warming world.

*** Culture ***

Hollywood’s message to red states: Our movies are for you: After a period of openly using movies to display progressive values, studios seem to be heeding a message from many ticket buyers: Just entertain us. NYT

In the halls of the capitol, lawmakers hunt for a smoke-filled room: Smoking cigars at work, taboo in many places, is a tradition on Capitol Hill. Some Republican lawmakers are fuming after losing their space to light up. WSJ

*** Sport ***

How cricket became sport’s next big thing – Olympics, India, the US and other new markets The Athletic

Sponsors embrace Olympic push into urban sports: Brands see opportunity to engage younger audiences by supporting skateboarding and breakdancing. FT

‘It didn’t taste great.’ Olympic swimming in the Seine finally happens. WSJ reports after years of debate, countless safety tests, $1.5 billion spent and one major event postponed, the most ambitious event of the Paris Olympics came to life when triathletes swam in the river.


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal