Caracal Daily | August 29

Caracal Daily | August 29

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 Thursday.

Here’s today’s Caracal Daily:

*** Globalization + Geopolitics ***

Reuters: Ukraine's Zelenskiy to present plan to Biden to end war with Russia

In Kyiv, Zelensky presents Ukrainian offensive in Kursk as 'victory plan': Le Monde reports in a rare appearance before the press, the Ukrainian president, in a position of strength, justified the incursion of his armed forces into Russian territory in order to push Moscow to negotiate.

WP: Russia claims slain Reuters security adviser was a British spy

WSJ: Israel launches large-scale raids in West Bank

The US Navy has positioned about 18 warships including two aircraft carriers in and around the Middle East as it seeks to deter Iran and its proxies from conducting attacks that could evolve into all-out war with Israel.

After six years in China, our bureau chief says farewell: He leaves a country that is increasingly unwilling to accept foreign scrutiny. Economist

Analysis: Elders stay faithful to Deng, topple 'reformer Xi Jinping': Summer rebellion forces Xinhua to delete a commentary that rewrote party history. Nikkei

Chinese officials struggle to build ties with Donald Trump’s campaign: FT reports hostility to Beijing in Washington hinders attempt to establish relations ahead of US presidential election.

WP: China, US agree to a leader call in top White House aide’s Beijing visit

China and US discuss plans for 'leader-level call' in coming weeks: Nikkei reports Wang Yi and Jake Sullivan hammer each side's positions on Taiwan, South China Sea.

Joe Biden and Xi Jinping to speak by phone amid effort to boost US-China relations: FT reports top foreign policy officials from both countries are holding talks in Beijing.

AP: US military open to escorting Philippine ships in South China Sea

Britain’s unusual stance on Chinese electric vehicles: Unlike America or Europe, Britain is welcoming the cheap cars—for now. Economist

Italians fight for the right to feast on the beach: For those who feel priced out of expensive, privatized seaside clubs in Italy, elaborate lunch spreads feel like the last bastion of good spirits. NYT

Oil baron confronts skepticism over his $1.5 billion railroad to Banff: Adam Waterous is on a quest to relieve car congestion in the mountain paradise of Banff National Park, but conservationists are dubious about his plans. Bloomberg

US tech is holding back some AI products from Europe: Meta and Apple are not launching key AI products on the continent, citing the regulatory atmosphere. But we’ve seen this move before. Bloomberg

A fake spy, Russian oil and $1 million funneled to Democrats: Former business partner claims Gaurav Srivastava scammed millions by posing as a CIA operative; a photo op with Biden. WSJ

***  US Politics + Elections ***

The American dream feels out of reach for most: A Wall Street Journal poll shows people want a home, a family and a comfortable retirement, but say those goals are tough to achieve even with hard work. WSJ

This is the most important vibelection of your lifetime: What matters more to voters, digital trading cards or clean gutters? Actual policy positions aren’t yet making much of an impact. Jessica Karl

Harris’s ad-war message: Trump is pro-billionaire, she worked at McDonald’s: NYT reports the ads, focused on cutting costs, are meant to win over voters who believe Donald Trump would be better on the economy. They also signal a shift in tone from President Biden.

Kamala Harris’s tax increases and cuts take shape: WSJ reports taxes would go up for high-income households, most Americans’ taxes would be unchanged or lower and many parents would get new breaks.

Democrats are chasing a high-risk, high-reward strategy in Georgia: Politico reports if Democrats want to win the state again, they have to improve their margins, particularly among Black and working-class voters.

Democrats are already buzzing about a Merrick Garland successor: Here’s what Kamala Harris needs in an attorney general. Politico

Far from presidential battlegrounds, blue states could decide Congress: New York and California have become unlikely focal points in the fight for control of the House, as Democrats toil to appeal to wary voters in districts won by President Biden. NYT

Bloomberg: Lara Trump says GOP to pour money into ‘must-win’ Pennsylvania

Trump reposts crude sexual remark about Harris on Truth Social: NYT reports though the former president has a history of making crass insults about opponents, the reposts signal his willingness to continue to shatter longstanding political norms.

Elon Musk, eyeing edge for Trump, hires Republican political adviser: NYT reports Chris Young, most recently a senior political official at PhRMA, the trade association of the pharmaceutical industry that does some grass-roots organizing, is joining Mr. Musk’s team, according to three people briefed on the move. They spoke on condition of anonymity because it was not public.

+ “We’ve turned Congress into a ‘green room’ for Fox News and MSNBC, instead of being the key institution of government.” -- Former Rep. Mike Gallagher (R-WI), quoted by the Washington Post, on why he left Congress.

California legislature approves bill proposing sweeping AI restrictions: Gov. Gavin Newsom must now decide whether to sign into law the fiercely debated legislation. NYT

Controversial AI safety bill passes California Assembly Bloomberg

+ Bill now heads back to state Senate, then to governor’s desk

+ National figures from Musk to Pelosi have weighed in

+ @Scott_Wiener: SB 1047 — our AI safety bill — just passed off the Assembly floor. I’m proud of the diverse coalition behind this bill — a coalition that deeply believes in both innovation & safety. AI has so much promise to make the world a better place. It’s exciting. Thank you, colleagues.

*** Disruption + Innovation ***

Telegram founder charged with wide range of crimes in France: NYT reports Pavel Durov, who was arrested near Paris over the weekend as part of a broad investigation into criminal activity on the platform, was also barred from leaving the country.

Can tech executives be held responsible for what happens on their platforms? The indictment of Pavel Durov, Telegram’s founder, as part of an investigation into illicit activities on the messaging app set off worries about the personal liability of tech executives. NYT

Telegram’s loudest defender: The global crypto industry: NYT reports when the messaging app’s founder, Pavel Durov, was arrested, he received a flood of support from a multitrillion-dollar industry that relies on it.

Arizona deal latest sign of booming demand for sites to power AI: WSJ reports Tract’s $136 million purchase of a 2,100-acre site near Phoenix represents the next big thing in land speculation: finding sites to power a new wave of data centers.

AI's race for US energy butts up against Bitcoin mining Reuters

OpenAI in talks for funding round valuing it above $100 billion: WSJ reports Thrive Capital and Microsoft are among the investors putting several billion dollars into the ChatGPT maker.

Exodus at OpenAI: Nearly half of AGI safety staffers have left, says former researcher: Nearly half the OpenAI staff that once focused on the long-term risks of superpowerful AI have left the company in the past several months, according to Daniel Kokotajlo, a former OpenAI governance researcher. Fortune

OpenAI is reportedly close to releasing a new AI product — codenamed Strawberry — that produces fewer hallucinations and is better at reasoning through tough problems.

Meta is accused of “bullying” the open-source community: It hopes its models will set the standard for open-source artificial intelligence. Economist

Klarna aims to halve workforce with AI-driven gains: FT reports the chief executive of buy now, pay later group heralds benefits of the technology as it narrows quarterly loss.

Google has a new AI feature that will summarize conversations and take notes for you in Google Meet. The feature started rolling out to some Workplace customers yesterday.

Elon Musk’s Grok is a risky experiment in AI content moderation: Bloomberg reports the unfettered image generation tool on X is a test case for safe AI.

WP: Nvidia results show AI boom continues despite recent bubble fears

Nvidia posts strong quarter, offers bullish outlook: WSJ reports the AI chip giant's results indicated persistent momentum in the AI boom, though gross margins narrowed due partly to production issues with its next-generation chips. Its stock fell nearly 7% in after-hours trading.

Partying with the Nvidia superfans: It’s so wealthy — and popular — that people threw a party just to watch a quarterly earnings report. Kevin T. Dugan

What could stop the Nvidia frenzy? Two contradictions could stymie the AI chipmaker-in-chief. Economist

Robots are starting (good) fires in California: BurnBot’s tank-like robot helps manage wildfire risk by conducting controlled burns with no open flames, minimal smoke and much less manpower. Bloomberg

WSJ: Yelp sues Google, alleging abuse of position to dominate local search

WSJ: Berkshire Hathaway tops $1 trillion market capitalization

SpaceX has postponed its attempt to launch an expedition featuring an all-civilian crew that is aiming to carry out the first-ever spacewalk by private citizens.

Ford changes DEI policies as conservative pressure campaign grows: FT reports the carmaker says it has ‘taken a fresh look’ at diversity practices to ensure they drive business results.

Profits at BYD, China’s biggest carmaker, rose by 24% year on year during the first half of 2024. Higher electric-vehicle sales boosted revenues

JD Power cuts EV sales forecast in US: Bloomberg reports automotive researcher JD Power said Wednesday that battery-powered models will account for just 9% of sales in the US this year, down from its previous forecast of 12.4%.

*** Culture ***

The patriotic wisdom of Bill Murray’s silly speech in ‘Stripes’: We’re still a nation of loyal, sometimes lovable mutts ‘whose forefathers were kicked out of every decent country in the world.’ WSJ

Live free or dial: New Hampshire fights to keep lone area code: Only a small number of states have just one, and “it’s definitely a point of pride.” WSJ

The Cut: Cosmopolitan hires a new editor-in-chief from Highsnobiety

*** Sport ***

The Athletic: As US Open bakes in hot New York weather, ice bags are the hottest accessory


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal