Caracal Daily | August 26

Caracal Daily | August 26

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

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Always Be Communicating.

Happy Monday.

Here’s today’s Caracal Daily:

*** Globalization + Geopolitics ***

Zelensky’s invasion of Russia sends a message to Moscow—and Washington: WSJ reports Ukraine’s audacious move across the border is an effort to show the world that the country is still in the fight.

Thursday: The 75th anniversary of the Soviet Union testing it first atomic bomb. The same day is also the international day against nuclear tests.

Bloomberg: Mideast on edge after Israel bombs Lebanon to thwart attack

Israel, Hezbollah signal de-escalation after predawn bombardments: WSJ reports casualties are limited after strikes by 100 Israeli jets and hundreds of Hezbollah rockets, though dangers remain.

Israel and Hizbullah play with fire: Economist reports they both attempt escalating attacks that fall short of all-out war.

Israel, Hezbollah exchange heaviest strikes in months, in a dramatic but contained escalation: WP reports the dramatic but contained escalation overnight Sunday stopped short of all-out war, with Hezbollah and Israel both signaling restraint.

After attacks, Israel and Hezbollah swiftly move to talk of containment: NYT reports Hezbollah’s retaliation for the killing of a senior commander appeared to be over before it began. But analysts said tensions could escalate further.

In Beijing’s quest for control of the South China Sea, a new flashpoint emerges: WSJ reports China is showing a growing willingness to escalate in the David-and-Goliath fight with the Philippines over control of the vital trade route.

Top private equity firms put brakes on China dealmaking: FT reports activity dries up amid Beijing’s listings crackdown and planned US investment curbs.

Is Xi Jinping an AI doomer? China’s elite is split over artificial intelligence. Economist

What if China invades? For Taiwan, a TV show raises tough questions. Some think the drama, “Zero Day,” helps Taiwan confront an increasingly plausible scenario. Others say the show is alarmist and a tool of the government. NYT

The inside story of the secret backchannel between the US and China: Top officials Jake Sullivan and Wang Yi met quietly to stabilize relations in ‘cloak and dagger’ summits around the world. FT

Ishiba Shigeru, a former defense minister, joined the race to succeed Kishida Fumio as Japan’s prime minister.

Bloomberg: South Korea sees US by its side regardless of who is in White House

+ Vice unification minister says elite defections have climbed

+ Kim Soo Kyung says North faces ‘critical damage’ after floods

Indonesia-US military drills: Super Garuda Shield, the joint military exercises led by Indonesia and the United States, will open on Monday. 

Monday: Pacific island leaders meet: The Pacific Islands Forum (PIF) Leaders Meeting starts in Tonga with more than 1,000 attendees expected for the week-long event, including heads of the 18 PIF members, the body's 21 dialogue partners, and regional and international organizations. 

Sunday: Indonesia-Africa Forum: Indonesian president Joko Widodo and leaders from nearly 30 African nations gather in Bali for the 2nd Indonesia-Africa Forum.

WP: Telegram founder Pavel Durov detained in France

Telegram founder Pavel Durov arrested in France: The Times reports the chief executive of the encrypted messaging app reportedly detained at an airport near Paris over alleged failure to stop criminal activity on the platform.

Telegram CEO Pavel Durov arrested in France in world-first case: The founder of the messaging service was arrested on Saturday evening at Le Bourget airport outside of Paris. He is the subject of an investigation for the lack of moderation on his platform. Le Monde

Telegram becomes free speech flashpoint after founder’s arrest: NYT reports Pavel Durov, the founder of the app, which has more than 900 million users, was taken into custody by the French authorities.

Russian lawmakers hit back at arrest of Telegram chief Pavel Durov in France: FT reports the billionaire detained at Paris airport for failing to adequately moderate criminal activity on his messaging platform.

German prosecutor says Islamic State terrorist link is suspected in festival stabbings: NYT reports the police say they have arrested a man they believe killed three people and wounded eight others at a festival in the town of Solingen, in western Germany.

Italy opens manslaughter probe into Lynch superyacht sinking: FT reports prosecutors say Bayesian went down stern-first after ‘rapid, sudden’ storm struck.

‘Watch out, Kwasi, you’re about to be sacked,’ a friend warned: Kwasi Kwarteng saw himself as Liz Truss’s ‘Kevlar body armour’. But as Anthony Seldon reveals in his new book, she was unable to use him to shield herself from the fall-out of their disastrous mini-budget. The Times

Warnings AI tools used by government on UK public are ‘racist and biased’: Transparency campaigners welcome government move to publish details of system algorithms. Guardian

‘Whatever happens in the sauna stays in the sauna’: Diplomacy, conducted in the nude: The Finnish Embassy offers one of the hottest invitations in Washington: a chance to discuss serious topics in a sauna. NYT

Pope Francis' words on literature, which go against the Church's tradition of censorship, are revolutionary: Published on August 4, the 'Letter of His Holiness Pope Francis on the Role of Literature in Formation' is 'a major event for all lovers of literature,' according to William Marx, professor at the Collège de France. Amandine Clavaud

Guggenheim rises in the desert as Abu Dhabi morphs into expat hub: Emirate is attempting to draw wealthy foreigners to invest and work. Bloomberg

India bans mortar boards and graduation gowns as ‘relics of the Raj’: The Times reports Narendra Modi’s government wants to erase all traces of India’s ‘colonial legacy’ but critics say it should focus on present-day issues such as violence against women.

Mpox surveillance must be improved to tackle Africa surge, expert warns: FT reports infectious disease professor Dimie Ogoina says cases are probably being under-reported.

Meghan Markle and Prince Harry were in Colombia. Does anyone care? In mid-August, the Duke and Duchess of Sussex were invited to spend four days in Colombia. Between crowds and various social events, it was a visit with high (royal) added value. Marc Beaugé 

Javier Milei is splurging on the army: Many Argentines are asking why. Economist

To whom it may concern: America and Europe need each other Wolfgang Ischinger

Tuesday: Two-day Intelligence and National Security Summit is held just outside Washington DC. Speakers include FBI deputy director Paul Abbate and the CIA deputy director David S Cohen.

The global power of Big Agriculture’s lobbying: Behind the public image of farming lies a vast industry adept at securing subsidies and exemptions from environmental measures. FT

***  US Politics + Elections ***

WSJ: Trump steps up campaigning to counter Harris’s momentum

How JD Vance found his way to the Catholic Church: In his 30s, the Republican vice-presidential nominee read works on theology, mysticism, and political and moral philosophy. And he discovered his faith. NYT

Robert Kennedy Jr drops long-shot bid for the presidency and backs Donald Trump: FT reports the scion of storied US Democratic dynasty claims the party conspired to halt his White House run.

WP: Harris’s campaign has raised $540 million since launch, Democrats say

Behind Harris’s new mantra: ‘The Opportunity Economy’: The phrase is inoffensive, is open to interpretation and incorporates a Republican buzzword. WSJ

Kamala Harris developed a resolutely optimistic vision of America, far removed from the apocalyptic view presented by Trump: The Democratic candidate presented the image of a calmer America during her speech at the Chicago convention, portraying herself as a resolute moderate, seeking above all to unite voters, according to the specialist on the US. Laurence Nardon

Kamala Harris is running on vibes: Delegates at the DNC can’t agree whether she is moderate or progressive. They’re just relieved she’s not Biden. Economist

Kamala Harris says America, not China, will win 21st century: Nomination speech recalls Indian mother, jabs Trump for cozying up to Kim Jong Un. Nikkei

*** Disruption + Innovation ***

NASA turns to Elon Musk’s SpaceX to bring stuck astronauts back to Earth: FT reports the US space agency will not use Boeing spacecraft that ferried crew to the International Space Station.

Bloomberg: New Boeing CEO faces hard choices after NASA snubs Starliner for SpaceX

SpaceX’s risky next mission: The first private spacewalk: WSJ reports two commercial astronauts are slated to conduct a short walk out of the Crew Dragon vehicle.

Tuesday: Scheduled launch of Polaris Dawn mission from Kennedy Space Center in Florida on board a Falcon 9 rocket.

Podcasts used to be ad-light oases. Not anymore. Some hosts and industry executives worry ad creep will hurt the medium for both listeners and marketers. WSJ

There are a bazillion possible starbucks orders — and it’s killing the company Bill Saporito

Walmart Mexico accelerates digital overhaul of retail giant under new boss: Country’s largest supermarket chain facing increased ecommerce competition. FT

How AI is remaking Milan’s ice cream scene and driving a gelato boom: New technology is helping ice cream innovators turn the traditional industry on its head. The Times

High five: British technology companies set the pace in AI: The Times is profiling some of the UK’s most promising AI firms, exploring how they might revolutionise industries. Today, the creative sector. The Times

The future of the AI-enhanced classroom: New technology is poised to change the way students are taught and learn. FT - Editorial

Nvidia, a titan of microchips facing the first doubts about AI: The Californian company, which dominates the market, is facing questions from investors wondering whether it is profitable enough, and competition from its own clients including Google, Amazon, Microsoft, and Tesla. Le Monde

Apple explores robotics in search of life beyond the iPhone Bloomberg

Wednesday: Alibaba listing in Hong Kong.

Start-up incubator Y Combinator backs its first weapons firm: Investment in maker of ‘low-cost cruise missiles’ a sign of Silicon Valley’s shifting stance towards the arms industry. FT

*** Culture ***

WP: Burning Man isn’t sold out — and the die-hards are thrilled

The loneliness of the digital nomad. This isn’t the escape you think it will be. Fred Skulthorp

Toronto is worthy of your luxurious weekend getaways Penta

*** Sport ***

This soccer club’s American owners are either geniuses or fools: The US investors that own London team Chelsea FC have applied a new financial approach to European soccer. The result, however, is bizarre. WSJ

Why the world is teeming with so many new sports leagues: Interest from fans and investors has led to a surge. But is it a winning strategy? Economist

One with the waves: The spirituality of 'soul surfers': Becoming one with 'Mother Ocean' until you reach a state of 'contentment': In his column, journalist Marc Bonomelli analyzes the beliefs of 'soul surfers,' wave aficionados who find a spiritual dimension within their practice. Marc Bonomelli

Today: The US Open tennis starts.

Wednesday: Opening ceremony of Paris Paralympics.

Saturday: Deadline for football governing body FIFA to decide on Palestinian proposal to suspend Israel from international football events.


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal