Caracal Daily | August 20

Caracal Daily is geopolitical business news + intelligence for comms pros.

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Always Be Communicating.

Happy Tuesday.

Here’s today’s Caracal Daily:

*** Globalization + Geopolitics ***

Politico: Blinken: ‘Probably the best, maybe the last’ chance to save Gaza hostages

+ “It is time for it to get done,” says top U.S. diplomat as he arrives in Israel.

WP: Hamas claims Tel Aviv attack as Blinken promotes cease-fire in Israel

AP: Civilians flee Pokrovsk as Russia’s army bears down on the key eastern Ukraine city

Reuters: Russian forces capture town of Zalizne in Ukraine's east, defence ministry says

The mysterious middle-men helping Russia’s war machine: Sanctions are as watertight as a sieve. Economist

India's Modi to visit Kyiv: DW reports Indian Prime Minister Narendra Modi will visit Ukraine after an invitation from President Volodymyr Zelenskyy. Meanwhile, Ukraine has successfully warded off drone attacks launched by Russia.

Lithuania begins construction of German military base: DW reports the NATO-country site is situated near Lithuania's border with Russian ally Belarus. It will be the first permanent foreign military deployment of German troops since World War II.

The China hangover is here Michael Beckley

US, China agree to work more closely in times of financial stress: Nikkei reports the fifth Financial Working Group meeting concluded as trade tensions rise.

China + Vietnam have signed 14 agreements which include cooperation on cross-border railways and crocodile imports.

AP: Chinese and Philippine ships collide again in disputed waters, and the countries are trading blame

Chinese and Philippine ships collide at Sabina Shoal, a new flash point: WP reports the incident, the first time in decades that Beijing and Manila have clashed over the Sabina Shoal, may derail efforts to lower tensions in the South China Sea.

AP: Philippines says China was `dramatically’ alarmed over US missile system deployed to its north

AP: US and South Korea begin military drills aimed at strengthening their defense against North Korea

South and North Korea brace for Harris or Trump as next US leader: Nikkei reports Yoon and Kim deepen their own alliances while keeping door open to dialogue.

South Koreans hit the brakes on EVs after battery fires: DW repprts sveral electric vehicle fires in South Korea have dented sales as buyers worry about potential battery hazards. Carmakers are responding by cutting prices and trying to allay consumers' safety concerns.

Thailand's latest Shinawatra PM walks the same economic, political tightrope: Paetongtarn takes office with growth the key issue as father Thaksin calls party shots. Nikkei

Power, oil, and a $450m painting - insiders on the rise of Saudi's Crown Prince BBC

World’s most expensive painting to form the centerpiece of ‘Saudi Louvre’: Mohammed bin Salman intends to build a gallery in Riyadh to display Salvator Mundi, attributed to Leonardo da Vinci, and the most costly artwork ever sold at auction. The Times

We can’t let EU’s anti-AI rules drag us down too: Hastily drafted in response to ChatGPT, these curbs will stunt tech in its infancy — and have a harmful effect here. Rohan Silva

Kim Dotcom vows to continue legal fight against extradition Bloomberg

+ “I love New Zealand. I’m not leaving,” Dotcom posted on X after the news was reported late last week. He told his followers not to worry because he had a plan, without providing any details.

AFP: Nicaragua outlaws 1,500 NGOs, including religious charities

The Pentagon is planning a drone ‘hellscape’ to defend Taiwan: The US Defense Department’s grand strategy for protecting Taiwan from a massive Chinese military offensive involves flooding the zone with thousands of drones. Wired

The world can’t escape from a US economy that has lost its anchor: Financial markets are right to be jumpy ahead of November’s election. Chris Giles

***  US Politics + Elections ***

AP: US intelligence officials say Iran is to blame for hacks targeting Trump, Biden-Harris campaigns

Biden heads to Chicago for a hero’s goodbye: The president thought he’d be closing out the convention. Instead, Democrats are celebrating his departure. Politico

Many voters in this swing county are sour on the economy. Here’s what they’re saying. In financially struggling Saginaw County, Mich., the election promises uneasy choices for some. WSJ

How Democrats reversed the script on the GOP: Now it’s Harris’ party that’s showing a sense of unity, purpose, and relentless focus on winning. Politico

Kamala Harris has the momentum. Now comes the real test: The Democratic candidate has overtaken Donald Trump in the polls and managed to rattle him, but the coming weeks will bring bigger hurdles. FT

Harris’s candidacy boosts a Democrat’s slim chances on Long Island: Representative Nick LaLota is questioning John Avlon’s local bona fides as they battle over who is more authentically of Long Island. NYT

Democrats unveil convention platform with familiar themes: The party is calling for tax increases on corporations and the rich while also focusing on working families, infrastructure, climate change, and abortion rights. Politico

FT: Harris backs plan to raise US corporate tax rate to 28%

Trump tries to clarify that he and Vance ‘are extremely normal people’: Rolling Stone reports the former president can't seem to get over Democrats calling him and his running mate "weird."

LAT: Trump campaign airs grievances as Democratic convention begins

WP: Trump portrays Harris as foreign, echoing past attacks on Democrats of color

AP: Trump will campaign across the country this week as he struggles to adjust to Harris

Donald Trump has posted a series of AI-generated images on his Truth Social account, falsely claiming that Taylor Swift has endorsed him for president, Variety reports.

Trump’s AI fakes of Harris and Swift aren’t meant to fool you: These aren’t credible deepfakes. They’re provocative memes. Will Oremus

CNBC: Trump says he would offer Tesla CEO Elon Musk a Cabinet slot, but might end EV tax credit

Mayoral candidate vows to let VIC, an AI bot, run Wyoming’s capital city WP

Pressure to ban mobile phones in America’s schools intensifies: Restrictions on the use of devices have been shown to improve students’ performance. Patti Waldmeir

How to deal with mobile phones at school: New York City and Los Angeles plan to ban phones in their districts, but finding ways to implement and enforce the policies may prove tricky. Bloomberg

*** Disruption + Innovation ***

FT and Schroders Business Book of the Year 2024 — the longlist: Tales of Trump’s finances, AI advances, and Amazon’s dominance join the chosen titles. FT

Canadian group targets 7-Eleven owner in Japan’s biggest foreign takeover approach: FT reports Seven & i shares jump 22% after ‘friendly’ proposal from convenience store rival Couche-Tard.

Bloomberg: 7-Eleven billionaire heirs would see big payday from takeover

+ Descendants of Masatoshi Ito own $3.1 billion stake in firm

+ Bid may face opposition given importance of 7-Eleven in Japan

Estée Lauder issues gloomy outlook as chief Fabrizio Freda announces retirement: FT reports the departure of CEO after 15-year tenure comes as owner of Clinique and MAC brands continues turnaround.

Bloomberg: Uber-backed e-scooter startup Lime enters Japan after Korea exit

+ Lime testing Japan’s growing market dominated by Tokyo’s Luup

+ San Francisco startup starting with tiny fleet of 200 scooters

Reuters: Hard-pressed Kenyan drivers defy Uber's algorithm, set their own fares 

How Walmart became an advertising powerhouse: A high-margin and fast-growing ad business is changing the chain’s relationship with brands. FT

Two astronauts are stuck in space - how will they pass time (and survive) until 2025? The two astronauts were only meant to be in space for eight days, but now they might not return until 2025. Do they have enough supplies for such a stint, how are they coping mentally, and what is day-to-day life like up there? Sky News

Tinned fish is swimming against the tide: Once a staple of wartime diets, it is now a social-media phenomenon. Economist

AMD signs $4.9bn deal to challenge Nvidia’s AI infrastructure lead: FT reports the California group hopes acquisition of ZT Systems will accelerate adoption of its data centre chips.

AMD deal shows AI chip business isn’t just about chips: WSJ reports the acquisition of ZT Systems brings needed hardware expertise, while divestiture plans should spare AMD a margin hit.

Artificial intelligence is losing hype: For some, that is proof the tech will in time succeed. Are they right? Economist

Start-up failures rise 60% as founders face hangover from boom years: Private company shutdowns jump compared with last year despite AI funding frenzy, threatening millions of jobs at VC-backed firms. FT

*** Culture ***

Who's afraid of Stephanie Jones? How Tom Brady's publicist became one of the most polarizing names in celebrity PR. BI

Bloomberg: Indiana Jones's iconic felt fedora fetches $630,000 at auction

RIP: Phil Donahue

*** Sport ***

What NFL players really think about sports gambling: Good for the league. Not so good for you. Bloomberg


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal