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
Caracal Daily | August 30
Caracal Daily | August 30
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 Friday.
Here’s today’s Caracal Daily:
*** Globalization + Geopolitics ***
How open trade saved us from a global food crisis: Fears of an international hunger emergency after the Ukraine invasion proved unfounded. Alan Beattie
Reuters: Pope Francis says refusing aid to migrants a 'grave sin'
Inside the frantic US efforts to prevent a wider war in the Middle East: NYT reports officials are desperate to avert a regional war that they fear could pull the United States into the fighting as the region continues to teeter on the brink.
A key Western ally is buckling under Russian pressure: WSJ reports s Georgia’s government draws closer to Moscow, national elections mark a flashpoint for the entire region.
Russia’s military fears for its secrets after Telegram founder’s arrest: WSJ reports the platform has become a critical communications tool for Russian forces during the war in Ukraine.
Pressure on Macron over links to Telegram founder: The Times reports Pavel Durov has been charged with aiding and abetting crimes from child pornography to drug trafficking and money laundering.
Macron defends move to give Telegram's Pavel Durov a French passport: Le Monde reports speaking to reporters during a visit to Serbia on Thursday, the French president said he did not know that Durov would be coming to France.
Tech barons were untouchable. Then France came for Telegram: The prosecution of Pavel Durov reflects a growing divide between Europe and the US on free speech — and freedom from crime. The Times
Telegram founder’s indictment thrusts encryption into the spotlight: The criminal charges against Pavel Durov, Telegram’s founder, raised concerns in Silicon Valley about encryption and the app’s approach to privacy and security. NYT
Pavel Durov and the limits of free speech: Telegram has failed to distinguish between the demands of autocratic regimes and legitimate democratic requests. John Thornhill
US-made F-16 crashed in Ukraine, killing pilot: WSJ reports Kyiv recently received six of the planes to boost its fight against Russia, symbolizing US support.
Violent drug gangs bring mayhem to Western Europe: WSJ reports Dutch drug kingpin Ridouan Taghi was sentenced to life in prison following a deadly crime spree. The EU now considers organized crime a threat to European societies on par with terrorism.
Xi pushes to keep US ties steady through bumpy presidential race: WSJ reports US national-security adviser Jake Sullivan is wrapping up his China visit as the prospect of a Harris presidency has changed Beijing’s calculus.
How Japan ignored climate critics and built a global natural gas empire Bloomberg
Namibia, facing drought, plans to kill elephants for meat: NYT reports the country plans to butcher over 700 wild animals, including 83 elephants, to feed some of the 1.4 million people who are at risk of acute food insecurity.
Could T-shirts be the way to industrialize an African nation? Benin is trying to achieve what few countries on the continent have managed: transform its raw materials into finished goods. FT
Why Ethiopia’s bid for Red Sea access angers Somalia Bloomberg
Dubai sets global standard for ethical use of AI: Guidelines highlight importance of moral considerations in evolving landscape. Hamad Obaid Al Mansoori
Nations building their own AI models add to Nvidia's growing chip demand: Reuters reports nations building artificial intelligence models in their own languages are turning to Nvidia's adding to already booming demand as generative AI takes center stage for businesses and governments.
Elon Musk’s X braced for ban in Brazil amid fight with judge over accounts: FT reports the social media platform faced a deadline to comply with court order or be suspended in the Latin American country.
*** US Politics + Elections ***
Trump and Harris: Talking loud and saying nothing: Voters have plenty of information about these candidates. They know next to nothing about what they’d actually do in office. Bloomberg - Editorial
POTUS poll: A new Quinnipiac poll finds Kamala Harris just ahead of Donald Trump in the presidential race, 49% to 47%.
Harris has taken narrow lead over Trump, WSJ poll finds: WSJ reports voters have largely positive views of Democratic nominee, who gets 48% compared to 47% for Republican Donald Trump.
Harris edges Trump in key states, with Sun Belt now up for grabs: Bloomberg reports the honeymoon for the new Democratic nominee is far from over, as she narrows or reverses Trump’s advantages on key economic issues.
Kamala Harris on CNN: ‘Values have not changed’ on key issues: WSJ reports the presidential nominee and running mate Tim Walz discuss immigration, climate change in television interview
Pressed on shifting positions, Harris says, ‘my values have not changed’: NYT reports Kamala Harris, in a TV interview, sought to highlight the Biden administration’s record while embracing some progressive policies she campaigned on in 2020.
WP: Harris says she will put a Republican in her Cabinet if elected
Kamala Harris takes a different view of the world and America's place in it: The US expert believes the vice president's foreign policy, should she reach the Oval Office, might be a surprise. While she's heir to the Democratic Party's traditional leadership, she's also sensitive to progressives' demands. Célia Belin
Inside Kamala Harris’s LA life: SoulCycle, Hollywood parties, annoyed neighbors: Once an escape from Washington, Los Angeles is now giving the vice president access to powerful Hollywood neighbors and help in the race for the White House. WSJ
Bloomberg: Trump says he’ll announce a plan to make US the ‘crypto capital’
WP: Legendary pop group ABBA wants to be taken off Trump’s rally playlist
JD Vance urges billionaire Peter Thiel to help bankroll Trump campaign: In FT interview, Republican vice-presidential nominee also says Google ought to be broken up.
How Biden’s Senate allies helped push him from the race: President Biden’s allies feared he would drag them down and spoil his own legacy, and played a more assertive role than was previously known. NYT
California AI bill passes State Assembly, pushing AI fight to Newsom: The bill, which seeks to make companies liable if their artificial intelligence harms people, is at the center of a debate over how to regulate the technology. WP
Contentious California AI bill passes legislature, awaits governor's signature Reuters
California’s divisive AI safety bill sets up tough decision for governor Gavin Newsom: State’s attempt to impose a regulatory framework on the fast-emerging technology has split opinion in Silicon Valley. FT
DC policy advisors engage in AI roundtable with DSU faculty: It’s likely that no matter what field you work in, AI is a huge part of the conversation as far as how your business is going to go forward. That’s why two senior advisors from the Center for AI Policy (CAIP) came to Madison to talk with researchers and faculty about how it can be used not only in academia but in government and business as well. Dakota News Now
+ Brian Waldrip, Government Relations Director for the Center of AI Policy, emphasized that the group wanted to learn from experts in South Dakota to address the needs particular to the region.
*** Disruption + Innovation ***
Apple starts making latest iPhones in India, accelerates push beyond China: Nikkei reports the tech giant looks to diversify supply chains as geopolitical uncertainty festers.
NYT: OpenAI in talks for deal that would value company at $100 billion
Apple, Nvidia are in talks to invest in OpenAI: WSJ reports the tech giants would join a multibillion-dollar funding round alongside Microsoft and Thrive Capital.
Apple in talks to invest in OpenAI: The Times reports the investment would be part of a new fundraising that would value the ChatGPT maker at more than $100 billion.
Google’s custom AI chatbots have arrived: The Verge you can create your own Gems — or chatbots — to help you plan gardens, edit your writing, create workout routines, and more.
WSJ: Nvidia can’t escape shadow of AI spending fears
Nvidia faces looming test on use of chips: When AI models go into widespread use in applications for consumers and businesses, demand may change. Richard Waters
With 7-Eleven on buyout menu, Japanese owner Seven & i reaches crossroads: Couche-Tard targets food business, US market; regulatory, antitrust issues weigh. Nikkei
Bloomberg: Lululemon's $98 yoga pants face baggier fashions, more rivals
+ Company’s second-quarter results missed Wall Street estimates
+ Analysts says a guidance cut was ‘baked into’ Lululemon stock
Dollar General warns poorer US consumers are running out of money: FT reports discount retailer says low-income households feel more ‘financially constrained’ than six months ago.
The summer’s most stylish status symbols come from luxury hotels: Branded merchandise is taking off as guests and aspiring guests invest in swag from top properties. Bloomberg
The world’s coffee mostly comes from two countries. That’s a problem Bloomberg
+ Consolidation in Brazil, Vietnam poses risk in warming world
+ Small producers from Cuba to Thailand could be key to future
*** Culture ***
The science of saying no at work: Researchers who put themselves under the microscope made some important discoveries. FT
‘Reagan’ Review: Dennis Quaid’s impeachable presidential portrait: The actor plays the 40th president in director Sean McNamara’s hagiographic film. WSJ
*** Sport ***
How the Paralympics categorize disability to make it fair between athletes: In parasports, each athlete competes under a code that indicates their disability. Medical and sports professionals try to put athletes of similar ability in the same events to make the sporting competition fair − but it's still not an exact science. Le Monde
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal