Caracal Daily | September 20

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Happy Friday.

Here’s today’s Caracal Daily:

*** Globalization + Geopolitics ***

Yoav Gallant, Israel’s defence minister, said his country has entered a ‘new phase’ of war and will focus more resources fighting Hezbollah in Lebanon. 

Israel steps up airstrikes against Hezbollah targets in Lebanon: WSJ reports the attack came as the militant group's leader said two days of pager and walkie-talkie explosions amounted to a declaration of war.

Hezbollah leader says device attacks are an ‘act of war,’ as Israeli warplanes fly over Beirut: WP reports in his first remarks since thousands of electronic devices exploded across Lebanon, Hasan Nasrallah said that Hezbollah suffered “a major blow,” but that his forces would not stop attacking Israel while the war in Gaza continued.

Israel’s northern gambit: Netanyahu shifts war focus to Hizbollah: Exploding devices and air strikes suggest strategy is to force Lebanese militants to rethink military support for Gaza. FT

Unanswered questions sparked by Hezbollah’s exploding pagers Politico

Pagers attack brings to life long-feared supply chain threat: Everyday electronics rigged to explode reflect the near-impossibility of securing modern, globalized electronics supply chains. WP

+ @qatarairways: Effective immediately: Following the directive received from the Directorate General of Civil Aviation of the Republic of Lebanon, all passengers flying from Beirut Rafic Harirl International Airport (BEY) are prohibited from carrying pagers and walkie-talkies on board flights. The ban applies to both checked and carry-on luggage, as well as cargo, and will be enforced until further notice.

Don’t fool yourself about the exploding pagers: Your phone is not a bomb. Ian Bogost

Volodymyr Zelensky said he has ‘fully prepared’ a plan to end the war in Ukraine. He will present it to Joe Biden at a UN meeting in New York next week. 

Volodymyr Zelensky plans to visit both New York and Washington next week for high-level meetings in his push to shore up Western support for his country’s war efforts against Russia.

Germany plans to deliver a package of weapons worth €1.4bn to Ukraine by the end of the year.

It’s time to let Ukraine join NATO Boris Johnson

Putin is under pressure to call up more troops for war of attrition: The Russian leader earlier this year rebuffed Defense Ministry officials who had tried to convince him they needed more soldiers. WSJ

Hungary says EU not doing enough to end Russian gas dependence: Reuters reports Csaba Marosvari, Hungary's deputy state secretary for energy security, told attendees at the Gastech conference in Houston that smaller, landlocked states, including Hungary, need more funding to cut reliance on Russian gas.

41.7% of South Koreans have favorable view of Japan, most ever in poll: Nikkei reports the rise is attributed to J-pop, President Yoon's rapprochement policies.

North Korea says it tested 'super-large' warhead missile: Nikkei reports Pyongyang says its military has trialed a new ballistic missile that is capable of carrying a 4.5-metric-ton warhead. It was also said to have tested a "strategic" cruise missile.

Kim Jong Un will have his October surprise: The North Korean dictator has a message for Kamala Harris and Donald Trump, and for the world. It may already be in the mail. Andreas Kluth

US and allies seize control of massive Chinese tech spying network: FBI director hails successful action but calls it “just one round in a much longer fight.” WP

The Chinese government is pushing back on a US probe of whether China is helping its neighbor Russia dodge a US ban on Russian uranium imports, saying Beijing has always opposed "illegal unilateral sanctions."

China’s AI firms are cleverly innovating around chip bans: Tweaks to software blunt the shortage of powerful hardware. Economist

Scientists again link covid pandemic origin to Wuhan market animals: Genetic evidence from a new report suggests the coronavirus pandemic most likely spilled over from animals in the Wuhan market. WP

Jamie Dimon says an ‘evil axis’ of countries are his top concern for the next 100 years Fortune

Asia has no hegemon: But US-Chinese bipolarity is good for America and the region Susannah Patton + Hervé Lemahieu

Inside the underwater arms race to build the best submarines: The US, China, and Russia are competing to develop the quietest and most capable vessels, using the melting seas around Norway as a proving ground. The Times

The Bank of England has held interest rates at 5%.

Keir Starmer accepted free tickets to see Taylor Swift and seats in a hospitality box at Arsenal because it is ‘part of the job’, Business Secretary Jonathan Reynolds has said. 

Bloomberg: Apple gets EU warning to open up iPhone operating system

+ EU announces efforts to pull Apple into compliance with rules

+ Apple previously said it would hold back future tech from EU

Meta to European Union: Your tech rules threaten to squelch the AI boom: Facebook parent, other companies warn in open letter that the bloc’s regulations risk hampering innovation and economic growth. WSJ

Mark Zuckerberg says Europe needs more consistent AI regulation—and even his privacy nemesis agrees Fortune

War of words between Serbia and Kosovo intensifies as EU talks stall: Politico reports Serbian President Vučić says he has “no relationship” to Kosovo leaders as EU-led talks fail to produce results.

Internal discontent is brewing at the Atlantic Council over the Washington think tank’s decision to honor Italian Prime Minister Giorgia Meloni at an upcoming gala in New York and invite controversial tech mogul Elon Musk to introduce her.

Elon Musk’s X circumvents court-ordered block in Brazil: Guardian reports the social media platform routes internet traffic outside of Brazil using a communications network update.

The current major US expansion in LNG exporting terminals and infrastructure will require an additional 400 vessels that can carry the supercooled gas to foreign buyers, according to a presentation at Gastech by Emily McClain, vice president of North America gas markets at research company Rystad Energy.

The US military’s true advantage against any adversary: It’s the NCOs who set the US military apart from the rest of the world. Garrett M. Graff

UN advisory body makes seven recommendations for governing AI: Reuters reports an artificial-intelligence advisory body at the United Nations on Thursday released its final report proposing seven recommendations to address AI-related risks and gaps in governance. The UN last year created a 39-member advisory body to address issues in the international governance of AI. The recommendations will be discussed during a UN summit held in September.

AI development is being hijacked by Big Tech and rich nations, UN report warns Fortune

***  US Politics + Elections ***

Pennsylvania has become the most important battleground in America’s presidential election: Economist reports buckets of money, vicious advertising, and consultants galore have left the race for the state a virtual tie.

The Harris-Walz campaign is seemingly hiding from the press. The Dem ticket has participated in only 7 interviews or press conferences, compared to Trump-Vance's 70 during the same time frame.

Donald Trump said he will visit Springfield, the Ohio city where he claimed Haitian immigrants are eating cats and dogs, ‘in the next two weeks.’

Trump acts as if he has time to waste: He attacks Harris but can’t bring himself to focus on anything of consequence. Karl Rove

How Opus Dei conquered DC: A new book shows just how much sway the mysterious right-wing Catholic group has — and might have over Trump’s next term. Nina Burleigh

Mark Robinson, the Republican candidate for governor in North Carolina, vowed to stay in the race shortly before CNN published a report detailing offensive comments allegedly made by Robinson in online porn forums. 

Email address belonging to Mark Robinson found on Ashley Madison: Politico reports an adviser to the North Carolina Republican confirmed the email address belongs to him.

There are more than 120 AI bills in Congress right now: US policymakers have an ‘everything everywhere all at once’ approach to regulating artificial intelligence, with bills that are as varied as the definitions of AI itself. Scott J Mulligan

Bloomberg: Gensler says AI risks heartbreak like Scarlett Johansson’s ‘Her’

+ SEC chair says too many brokers may rely on same models

+ Watchdog touts competition from new rules on stock pricing

More people are flocking to TikTok for news, per a Pew Research study. 52% of users say they regularly get news there, up from 43% last year and 22% in 2020.

Sales of existing homes in the US fell in August to a 10-month low on persistent affordability challenges ahead of a recent decline in mortgage rates.

California Governor’s desk overflows with AI bills as state leads the charge on regulation Fortune

*** Disruption + Innovation ***

Edelman’s 2024 AI landscape report: Generative AI is transforming marketing and communications – enterprises and professionals alike must either adapt or get left behind. Edelman 

Generative AI is transforming Silicon Valley: The technology is forcing America’s disrupters-in-chief to think differently. Economist

Tech Jjobs have dried up—and aren’t coming back soon: Employment for software engineers has cooled as resources shift toward developing artificial intelligence. WSJ

YouTube is expanding shopping efforts in Asia in a deal with Shopee.

YouTube announced new generative AI tools for creators at its Made On YouTube event. 

Apple Intelligence (the company's genAI tools) will also be available in English (India), English (Singapore), German, Italian, Korean, Portuguese, Vietnamese, and "others."

CNBC: China’s Alibaba launches over 100 new open-source AI models, releases text-to-video generation tool

+ Alibaba on Thursday released more than 100 open-source artificial intelligence models and boosted the capabilities of its proprietary technology.

+ The Hangzhou-headquartered firm is looking to increase competition with domestic rivals such as Baidu and Huawei, as well as US titans like Microsoft and OpenAI.

+ Alibaba also launched a new text-to-video tool based on its AI models. This allows users to input a prompt and the AI will create a video based on it, similar to OpenAI’s Sora.

OpenAI has hired former Coursera Inc. executive Leah Belsky to be its first general manager of education, leading the artificial intelligence startup’s efforts to bring its products to more schools and classrooms.

LinkedIn plans to use your data to train its AI. Here’s how to stop it: Updates to LinkedIn’s user agreement will automatically opt users into sharing their data with its AI. Follow these steps to opt out. FC

CNBC: Amazon introduces Amelia, an AI assistant for third-party sellers

+ Amelia is an artificial intelligence tool designed to help third-party sellers quickly resolve issues with their accounts and fetch sales and inventory data.

+ Amazon said it’s launching the product in beta for select U.S. sellers, before introducing it more broadly later this year.

+ It’s the latest generative AI tool from Amazon, which is using the technology across its retail portfolio.

Amazon raised the pay of its warehouse workers.

AI hiring platform Mercor backed by Dorsey, Peter Thiel in $30 mln fundraise: Reuters reports the Series A funding round was led by venture capital firm Benchmark's Victor Lazarte and Bill Gurley, and also saw participation from Quora CEO Adam D'Angelo and former Treasury Secretary Larry Summers, both of whom are OpenAI board members.

AI wants to be free or at least very, very cheap. John Herrman

The breakthrough AI needs: A race is on to push artificial intelligence beyond today’s limits. Economist

AI has returned chipmaking to the heart of computer technology: And the technological challenges are bigger than the political ones, argues Shailesh Chitnis. Economist

Companies carry more liability for AI than they realize: Axios reports companies that make use of generative AI — whether they know it or not — could be taking on more legal liability than they realize. The legal discussion around genAI has largely focused on the liability of the companies developing the technology rather than those who use it. The 100-page article, published in NYU's Journal of Legislation and Public Policy, provides a detailed overview of the legal landscape in both the US and around the world in terms of existing and emerging law. Access the NYU article here.

China's foldable phones herald conquest of OLED screen market: Nikkei reports Samsung and LG see sales share sink as Beijing pushes supply chain localization.

Hackers extorted a record $75 million payment in a February cyberattack on drug distributor Cencora.

SpaceX signed a contract with United Airlines to add Starlink internet connectivity to ~2,500 airplanes. 

Nike CEO John Donahoe stepping down: WSJ reports Nike said John Donahoe will retire as chief executive and from the board. Elliott Hill, who retired from the sneaker maker in 2020, will succeed him.

Netflix and thrill: The hunt for the next Squid Game in Southeast Asia: As Amazon and Disney step back, Netflix invests in “locally authentic” content to grab subscribers in the region. ROW

China sees investment rush in bendable solar panels: Nikkei reports perovskite startups look to conquer emerging market with huge new plants.

FT: Mercedes-Benz lowers full-year outlook on ‘deterioration’ in Chinese economy

Plunging electric car sales add to EU manufacturers’ gloom: The Times reports sales of battery electric models have collapsed by 44% as carmakers mothball plants and consider closures.

Toyota, Honda to set capex and R&D spending records amid EV pivot: Nikkei reports Japan automakers to boost total capital expenditures by 20% this fiscal year.

Breakthrough Volvo lidar safety system expected to be on 2025 EX90 SUV: DFP reports drivers of the 2025 Volvo EX90 electric SUV should never again be surprised by a vehicle, pedestrian or cyclist emerging suddenly in front of them. That’s thanks to a first of its kind long-range sensor the automaker is expected to activate in 2025.

India's NTPC Green Energy filed draft papers for a 100 billion rupees ($1.19 billion) initial public offering on Wednesday, as it looks to cash in on the country's renewables expansion plans and a red-hot equities market.

Modern apologies Seth Godin

Want to achieve a big goal? You need to leverage dopamine: Dopamine is a natural result of accomplishment. And you can harness it for sustained success if you understand how it works, says this expert. FC

*** Culture ***

5 takeaways from the Tragically Hip's revealing new docuseries: This 4-part documentary gives fans a comprehensive look at the Canadian band's history. CBC

‘SNL’ turns 50. Now what? Lorne Michaels, Colin Jost, and Michael Che on election insanity, succession plans, and trying to make America funny again: The 'Weekend Update' anchors and the show’s legendary producer reveal how they'll skewer the craziest presidential contest in American history, why Republicans are less sensitive than Democrats and why Lorne walked back his retirement (again). THR

What, me? Retire? Just because I’m 80? Older workers are sticking around, and that is no bad thing. Pilita Clark

The 10 best hotels in North America, according to the Michelin Guide: In its first-ever full list, 412 hotels in the US, Mexico, and Canada earned “keys” much like its market-making restaurant stars. Bloomberg

*** Sport ***

‘American Sports Story: Aaron Hernandez’ review: Ryan Murphy’s risky FX series explores sexuality and head injuries: Josh Andrés Rivera stars as the troubled real-life sports figure destined to become the poster child for concussions and unspeakable crime. The Wrap

This billionaire bought a copy of the Declaration of Independence. A baseball team might be his wildest purchase yet. David Rubenstein built a storied career as an investor and philanthropist. None of it compares to being the rookie owner of the Baltimore Orioles. Jason Gay

Major boost to Wimbledon expansion plans: The Times reports the All England Club’s proposal to build 39 tennis courts and a new show court on Wimbledon Park has been recommended for planning permission despite local opposition.


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal