Caracal Daily | September 4

Caracal Daily | September 4

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 Wednesday.

Here’s today’s Caracal Daily:

*** Globalization + Geopolitics ***

Ukraine’s foreign minister resigns in largest shake-up since war began: WP reports the reorganization of the administration comes as Russia unleashes a new wave of aerial attacks on cities, including one on Lviv that killed seven overnight.

Ukraine’s Zelensky launches government overhaul for fresh military, diplomatic push: WSJ reports several ministers, including the top diplomat, submitted resignations as part of an overhaul that Zelensky said is designed to improve ties with the West and increase weapons production.

Russia built covert trade channel with India, leaks reveal: Files outline Moscow’s plan to spend rupees from oil sales on sensitive electronics for war effort. FT

US effort to broker Mideast cease-fire gets a new sense of urgency: WSJ reports the execution of an American-Israeli hostage and five others has increased pressure on the White House to get Israel and Hamas to make a deal.

Gazans grapple with prospect of Israeli presence postwar: NYT reports some say they will reluctantly stomach an Israeli military presence if that allows them to go home. Others worry about another long-term occupation.

There’s a ‘cat-astrophe’ brewing on Downing Street: The Chief Mouser to the Cabinet Office has outlasted five prime ministers—and their pets. WSJ

Taiwan’s defence reforms will help stabilise relations with China, says US envoy: FT reports Raymond Greene says Washington would ‘not rule out’ joint weapons development with Taipei.

China retaliated against Canada’s introduction of 100% tariffs on imports of Chinese electric vehicles by announcing an anti-dumping probe into Canadian rapeseed. 

China hosts African leaders to rekindle ‘Belt and Road’ outreach: By feting African leaders and announcing new investment deals and partnerships, Beijing is trying to strengthen its influence in global trade and geopolitics. WP

Former aide to NY governor Kathy Hochul charged with acting as an agent of China: Ex-deputy chief of staff to Kathy Hochul accused of using her position to ‘further interests of the Chinese government.’ FT

+ Linda Sun, a former aide to New York’s governor, was charged with acting as a foreign agent for China. Prosecutors say Ms Sun took money to, among other things, block Taiwanese officials’ access to New York state officials. 

US Steel warns of plant closings if sale collapses: WSJ reports the company said it would likely move its headquarters out of Pittsburgh if Nippon Steel can’t complete its $14.1 billion purchase.

Nippon Steel pledges US Steel would be run by Americans: FT reports the Japanese company lobbies unions and politicians over $14.9bn bid after Kamala Harris insists on local ownership.

Pope Praises Indonesia’s ‘delicate balance’ of unity in diversity: NYT reports speaking in Jakarta, the pontiff said “mutual respect” was the key to harmony in the majority-Muslim country, where a pluralist tradition has been put to the test by extremist groups.

The brutal economics of reaching net zero: Ramping down global emissions is achievable in terms of cost. But until the US and other rich countries assume a war footing, we don’t stand a chance of meeting critical climate goals. Bloomberg

How national security has transformed economic policy: Nationalism is reshaping the global economy. In the first in a series, the FT explores how fears about spying and dual-use technologies have eclipsed free market orthodoxy. FT

***  US Politics + Elections ***

Election 2024: 

+ 2 days until the first state (NC) begins mail voting

+ 6 days until the Harris - Trump debate in Philadelphia on Sep. 10

+ 12 days until early voting starts in PA

+ 27 days until Walz - Vance debate on Oct. 1

+ 61 days until Election Day on Nov. 5

How Democrats made Project 2025 one of their top anti-GOP attacks: The far-right proposal has become a rallying cry for Democrats and prompted Donald Trump and other Republicans to distance themselves from the plan. WP

The GOP is actually better off if Kamala Harris wins: To dominate the country once more, Republicans need to hasten the move to a post-Trump party. Jonathan Martin

Kamala Harris calls in UK Labour strategist for election-winning advice: Deborah Mattinson — a fixture of the UK polling scene — will travel to Washington DC next week to brief the Harris-Walz team. Politico

Kamala Harris makes small business pitch with boost to start-up tax relief: FT reports proposed expansion of deductions follows pressure on US vice-president to detail her economic plans. 

Bloomberg: Goldman sees US GDP hit if Trump wins, boost if Democrats sweep

+ Goldman economists lay out potential post-election effects

+ Tariff policy, immigration measures seen as key elements

The fate of America’s for-profit colleges hinges on the election: The Economist reports Kamala Harris and Donald Trump would claim to be fair—one by cracking down, the other by loosening the reins.

Bloomberg: Intel’s money woes throw Biden team’s chip strategy into turmoil

+ Chipmaker is actively reevaluating global manufacturing plans

+ Intel faces unclear path to biggest award from subsidy program

Texas lawmakers plan in August to unveil sweeping legislation ahead of the 2025 session that would have the Lone Star State join a growing list of states confronting potential threats from the use of artificial intelligence in the absence of congressional action.

All the news about SB 1047, California’s bid to govern AI The Verge

*** Disruption + Innovation ***

How ‘dynamic’ pricing spread from plane tickets to concerts Bloomberg

Bloomberg: Nordstrom family offers to take chain private for $3.8 billion

J.Crew fans, get ready: The catalog is back: WSJ reports the retailer is reintroducing the nostalgic catalog with Demi Moore on the fall cover and hoping to build on its sales momentum.

Bloomberg: Walmart bets on collectible sneakers to grow marketplace service

+ The partnership will have hundreds of listings from StockX

+ Walmart plans to expand further into pre-owned categories

Companies’ AI bets are reaching astronomical heights. Why the C-Suite likes its odds anyway. The costs of adopting artificial intelligence are soaring, but so are some executives’ expectations. Steven Rosenbush

These new AI bots will do just about anything for you: Artificial intelligence-based assistants are here to take orders and book trips; they don’t need any help from humans. WSJ

Bloomberg: Long-time bull bails on ASML, warning AI potential overhyped

+ UBS analysts drop buy rating for first time since 2022

+ ASML shares slump Wednesday amid misgivings over tech hype

Nvidia’s share price slumped by 9.5% on Tuesday as part of a broader decline in American stock markets. The AI chipmaker shed nearly $300bn in market value in the biggest-ever single-day decline for an American firm.

Bloomberg: Nvidia joins $100 million funding for year-old Japan AI startup

+ New Enterprise, Khosla Ventures among those leading this round

+ Sakana AI has grown rapidly since its founding in 2023

Bloomberg: Nvidia, DuckDuckGo back AI search startup You dot com in new round

Bloomberg: Altman infrastructure plan aims to spend tens of billions in US

+ Global plan for AI would start with major push in the US

+ OpenAI’s CEO and deputies have been pitching global investors

Bloomberg: Andreessen Horowitz ditches Miami two years after opening office

Renault readies itself to take on Chinese rivals: Luca de Meo is turning the carmaker around. Economist

Bloomberg: Coffee rises as traders eye stockpiles drop and Brazil’s weather

*** Culture ***

10 must-see films at this year’s Toronto International Film Festival: TIFF is where the Oscar race usually comes into view. Here’s what film lovers are already buzzing about. WP

Where art meets AI: The most beautiful human creations — art, music, poetry — are now in the hands of machines. Is it creative collaboration or an automated takeover. Tom Whipple

*** Sport ***

Stunner at the US Open: A US man will actually play in the men’s final: Frances Tiafoe and Taylor Fritz are set to square off in the semifinals, ensuring an American will play in the men’s championship for the first time since 2006. Jason Gay

The Kansas City Chiefs are aiming for uncharted territory: A Super Bowl Three-peat: The NFL isn’t designed for dynasties. But with a roster built around Patrick Mahomes and Travis Kelce, the Chiefs are on a quest for history. WSJ


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal