Caracal Daily | September 6
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 ***
US, Britain, EU to sign first international AI treaty: The first legally binding international AI treaty will be open for signing on Thursday by the countries that negotiated it, including European Union members, the United States and Britain, the Council of Europe human rights organisation said. Reuters
Australia proposes mandatory guardrails for AI TechRepublic
Bad information is a grave threat to China’s economy: The country risks making some of the mistakes the Soviet Union did. Economist
China ends international adoptions: WSJ reports Beijing is closing down a process that saw tens of thousands of Chinese-born children join families in the US and other countries since the 1990s.
The Chinese are going big on hydrogen in Spain: Chinese electrolyser manufacturer Hygreen Energy said it and its partners will invest more than 2 billion euros ($2.21 billion) in green hydrogen projects in the southern Spanish region of Andalusia.
CBS News: US says Russia funded media company that paid right-wing influencers millions for videos
Russia used a fake investor to dupe influencers, US says: Bloomberg reports according to US authorities, Eduard Grigoriann’s perspective was Russian and Grigoriann himself a fake, part of an elaborate scheme by the Russian government to use US influencers to spread propaganda and deepen divisions in American society.
Former 2016 Trump campaign adviser is charged over working for sanctioned Russian TV: AP reports indictments announced Thursday by the Department of Justice allege that Dimitri Simes and his wife received over $1 million dollars and a personal car and driver in exchange for work they did for Russia’s Channel One since June 2022. The network was sanctioned by the US in 2022 over Russia’s invasion of Ukraine.
Senate panel to question US semiconductor firms on Russian weapons: Reuters reports The US Senate Permanent Subcommittee on Investigations said on Thursday it will hold a hearing with four companies on the use of American-manufactured semiconductors in Russian weapons deployed in the war in Ukraine.
Racing the clock to document ISIS genocide of Iraq’s Yazidis: NYT reports for years, a UN team has painstakingly exhumed mass graves, but now the Iraqi government is ordering it to leave. Many sites remain unexamined.
Bloomberg: Colombia faces food, fuel shortages as truckers block roads
+ Supplies of jet fuel start to run low at some airports
+ Truckers protest for third day after diesel prices increased
A make-or-break moment for Mexico: In America’s biggest trading partner the rule of law and democracy are under attack. Economist
The United States has remained the largest exporter of liquefied natural gas so far in 2024, but a steep drop in selling prices and a sharp swing in export volumes to key markets is likely testing exporter appetite to stay on top.
How swing state politics are sinking a global steel deal: As the Biden administration nears a decision to block the proposed acquisition of US Steel, the debate over national and economic security is being dwarfed by presidential politics. NYT
*** US Politics + Elections ***
ABC News: Hunter Biden pleads guilty to all counts in federal tax case
Liz Cheney endorses Kamala Harris for President.
Harris leads Trump in four of seven swing states, Times poll says: Survey taken by YouGov after Democratic convention suggests the vice-president may be on course to win the electoral college.
Harris or Trump? Allan Lichtman, the prophet of presidential elections, is ready to call the race. NYT
Kamala Harris is considering showing up in New York during this year’s UN General Assembly.
Donald Trump pledges to slash the corporate tax rate to 15%.
FT: Trump touts economic plan to slash prices and taps Musk to help
Trump goes full revisionist on the economy: Conditions are better now than under the former president, who is recycling the ideas that didn’t work the first time around. Robert Burgess
US airlines’ rewards schemes under investigation: The Biden administration has launched a probe into the loyalty programs run by the four largest US airlines aimed at making sure customers do not fall foul of potential “unfair” or “anti-competitive” practices.
ABC News: FBI raids homes of 2 top deputies for NYC Mayor Adams, NYPD commissioner subpoenaed: Sources
Reuters: Snap sued by New Mexico over failure to protect children from sexual exploitation
States are busy with new legislation regulating AI, protecting consumer privacy and promoting kids' safety online.
*** Disruption + Innovation ***
The 100 most influential people in AI 2024 Time
Anthropic announced an enterprise version of its Claude chatbot.
Bloomberg: OpenAI hits 1 million paid users for business versions of ChatGPT
OpenAI considers pricier subscriptions to its Chatbot AI, The Information reports.
AI start-up hopes contrast with pullback in hype for listed stocks: Volatility looks like becoming the new reality in the sector on public markets. Richard Waters
Artificial intelligence could hurt oil prices over the next decade by boosting supply by potentially reducing costs via improved logistics and increasing the amount of profitably recoverable resources, according to Goldman Sachs.
The entire PC industry is counting on AI to boost the upgrade cycle and maybe even sway some Mac users over to the Windows camp.
The Internet Archive loses its appeal of a major copyright case: Hachette v. Internet Archive was brought by book publishers objecting to the archive’s digital lending library. Wired
Marketers threaten to cut spending on Elon Musk’s X in record numbers: FT reports the social media site hit by advertising industry concern over brands appearing next to contentious material.
Leaked Disney data reveals financial and strategy secrets: Data trove sheds light on operations, exposes personal data of some staff and customers. WSJ
Bloomberg: Larry Ellison will control Paramount after deal, filing says
SpaceX has pulled employees from Brazil amid Elon Musk’s court battle over X.
Boeing Starliner set to leave space station without its crew: NYT reports the troubled spacecraft is scheduled to undock on Friday for a trip back to Earth while two NASA astronauts will stay in orbit.
How astronauts cope with a surprise months-long stay in space: A weeklong trip to the International Space Station turned into an eight-month saga for marooned astronauts. Bloomberg
How self-driving cars get help from humans hundreds of miles away: In places like San Francisco, Phoenix and Las Vegas, robot taxis are navigating city streets, each without a driver behind the steering wheel. Some don’t even have steering wheels. NYT
What to do about America’s killer cars: The country’s roads are nearly twice as dangerous as the rich-world average. It doesn’t have to be that way. Economist
Lloyd’s of London faces £500m loss over Baltimore bridge collapse: The Times reports the disaster expected to result in the biggest ever marine-related loss for the global insurance industry.
*** Culture ***
Why I’m not tidying up before guests come over: Dispensing with the perfect life pretence of a rushed clear-up makes for better social events, better friendships and a better life. Oliver Burkeman
Losing your job used to be shameful. Now it’s a whole identity: There’s a whole class of “layoff influencers” now, as more people open up — maybe too much — about getting let go. Bloomberg
*** Sport ***
San Marino finally ended a 20-year run without a victory by beating Liechtenstein 1-0 in the UEFA Nations League.
Alex Morgan has officially announced her retirement.
Bloomberg: US women’s soccer ditched draft in a bid to regain top spot
+ European leagues closing gap on National Women’s Soccer League
+ Jessica Berman, Midge Purce speaking at Power Players New York
Pernod Ricard drops PSG sponsorship deal after Marseille fan protests: Le Monde reports the French drinks company, which has long been linked to the southern port city of Marseille, had originally proposed a sponsorship deal with the Paris Saint-Germain football club, rivals of Marseille.
AP: New Jersey offers $400M in tax credits in attempt to lure 76ers from Philly
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
Caracal Daily | September 5
Caracal Daily | September 5
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 ***
How a New York state aide moved in China’s corridors of power: Linda Sun’s insider status is the focus of a US indictment that alleges she acted on orders from Beijing. WSJ
The secrets of an unassuming NY official accused of working for China: Linda Sun, a former deputy chief of staff to Gov. Kathy Hochul, used her growing influence to push the interests of the Chinese government, US prosecutors say. NYT
The Chinese agent inside Albany: A former state aide faces charges of covert efforts on Beijing’s behalf. WSJ - Editorial
China’s new back doors into western markets: In the second part of a series on economic nationalism, we look at where Chinese companies are setting up shop to get around tariffs and barriers. FT
Xi Jinping opened the Forum on China-Africa Co-operation, a triennial shindig in Beijing that attracts nearly every African leader, by pledging financing worth 360bn yuan ($51bn) to the continent over the next three years.
North Korean spies are infiltrating US companies through IT jobs: WSJ reports companies are unknowingly hiring North Koreans for hundreds of low-level jobs, giving isolated Pyongyang access to cash and intellectual property.
Hostage killings and irreconcilable demands complicate cease-fire talks: WP reports frustrated mediators are now putting together what they have described as a “final offer,” but significant concessions on both sides are needed for agreement, said a US official.
ARS Tech: Ukrainian drones now spray 2,500° C thermite streams right into Russian trenches
Putin says Russia ready for talks with Ukraine: Le Monde reports the Russian president said Russia was ready for talks on the basis of an aborted deal between Moscow's and Kyiv's negotiators reached in Istanbul in 2022.
Vladimir Putin’s flagship Arctic gas project struggles to lure customers: FT reports US sanctions appear to be deterring buyers, satellite images and ship-tracking data suggest.
France’s Macron taps former Brexit negotiator as Prime Minister: The appointment of Michel Barnier, a former French foreign minister and EU commissioner, is aimed at ending months of political gridlock.
The Times: Michel Barnier named as French prime minister
+ Macron hopes former Brexit negotiator can end his own political deadlock
Michel Barnier, a man of consensus as prime minister: In the midst of a political crisis, the former European commissioner and member of the right-wing Les Républicains party has been appointed by Emmanuel Macron as prime minister. He will have the delicate task of finding a way through a fractured Assemblée Nationale. Le Monde
UK's Conservatives are choosing a successor to Rishi Sunak: After beginning in front of the group of MPs, the process will conclude with a membership vote, which will help determine the future political direction of the Tories. Le Monde
Why are Remainers so weak in post-Brexit Britain? The European cause is hugely popular. Its proponents are strangely ineffective. Economist
Volkswagen’s plan to close German plants sparks fury: Chief set to renege on a three-decade-old job security deal and close factories in Germany for the first time. FT
$8,700: The maximum daily fine for Brazilians caught using a VPN to circumvent a new ban on X.
As crackdown deepens in Venezuela, Chevron says keep the oil flowing: WSJ reports behind the scenes, Chevron’s message to the White House is that the oil giant needs to stay in Venezuela, even if Nicolás Maduro remains.
Mexico’s Andrés Manuel López Obrador wields ‘superpowers’ in final month: Investors and foreign governments alarmed as president uses near-supermajority to cement ruling party’s power. FT
Canada’s New Democratic Party withdrew its support for the ruling Liberals, raising the prospect of a snap election. NDP’s leader, Jagmeet Singh, said he had “ripped up” his agreement with Justin Trudeau, accusing the prime minister of pandering to “corporate greed.”
WP: Blinken to visit Haiti in a show of US support for new government
WP: Biden preparing to block Nippon Steel purchase of US Steel
+ The share price of US Steel fell by more than 17% following reports that President Joe Biden would block the steelmaker’s takeover by Nippon Stee.
Threat of strike this fall hangs over US ports: WSJ reports officials at the dockworkers’ union will meet next week to discuss walkout plans at ports from Maine to Texas if demands for a 77% wage increase aren’t met.
A ramp-up in nuclear weapons is not always a bad thing: US expansion could play an important role in bringing China and Russia back to the negotiating table. Rose Gottemoeller
This UN General Assembly will feel like a wake, not a rebirth: The upcoming “summit of the future” may instead show that the United Nations, and multilateralism generally, has none. Andreas Kluth
*** US Politics + Elections ***
The problem with empty US campaign promises: Both Harris and Trump seem determined not to be pinned down on policy. Oren Cass
Harris and Trump campaigns agree to debate’s microphone rules: NYT reports the microphones at the candidates’ debate next Tuesday will be muted when it’s not their turn to speak.
The dispute over muted microphones, and what else to know about Trump and Harris’s debate: The debate, hosted by ABC News, is the only one scheduled between the former president and vice president ahead of November’s election. WP
Bloomberg: Trump says his debate strategy is to give Harris room to speak
+ Harris, Trump will face off in presidential debate next week
+ Debate may be only chance for candidates to spar head-to-head
Harris has an advantage over Trump: Being a woman: The vice president is shying away from giving her campaign a “girls versus boys” theme. But data show women can better deliver to voters. Kara S Alaimo
Kamala Harris steps up campaign in make-or-break Pennsylvania: FT reports the vice-president heads to Pittsburgh as polls from swing state put her in dead heat with Donald Trump.
New Hampshire is the latest sign of Donald Trump’s shrinking map: Politico reports as Kamala Harris visited New Hampshire on Wednesday, Donald Trump’s campaign in the state is almost nowhere to be seen.
The Trump campaign unleashes a barrage of negative advertisements: It could well work. Economist
Trump to adopt Elon Musk’s proposal for government efficiency commission: Former president also to reiterate calls for lower corporate tax rate and steep regulation cuts. WSJ
Howard Lutnick emerges as Trump’s No. 1 salesman on Wall Street: Bloombeg reports the pugnacious CEO of Cantor Fitzgerald has placed himself—and his business—at the center of Trump World.
Republicans seize on false theories about immigrant voting: NYT reports activists, party lawyers and state officials are mobilizing behind a crackdown on a supposed scourge of noncitizens’ casting ballots. Voting rights advocates say the effort is spreading misinformation.
At last, election deniers have an app of their own: With 60 days left in the campaign, election denial group True the Vote has rolled out a new app so supporters can share, boost, and report election conspiracies. Wired
Ford, Coors Light, and other brands retreat from a gay-rights index: WSJ reports the Human Rights Campaign used a ranking of companies to advance same-sex benefits. Now an activist is using the index to pressure CEOs.
Robby Starbuck: the activist pushing US companies to ditch their DEI vows: Filmmaker and influencer is having success fighting what he sees as ‘leftwing’ ideology in boardrooms. FT
*** Disruption + Innovation ***
Oprah’s upcoming AI television special sparks outrage among tech critics: AI opponents say Gates, Altman, and others will guide Oprah through an AI "sales pitch." ARS Tech
Sutskever strikes AI gold with billion-dollar backing for superintelligent AI: ARS Tech reports top venture firms back SSI to develop "safe" AI with teams in Palo Alto and Tel Aviv.
Apple needs time to be on its side for AI iPhones: WSJ reports that Wall Street is seeing moderate iPhone sales gains over the next two years, as AI features will roll out slowly.
Few have tried OpenAI’s Google killer. Here’s what they think. WP
Generative AI backlash hits annual writing event, prompting resignations: ARS Tech reports that NaNoWriMo refuses to condemn AI as accessibility tool, faces criticism from writers.
Australian government trial finds AI is much worse than humans at summarizing: Llama2-70B failed to capture "complex context," but updated models might do better. ARS Tech
AI data boom mints Australia’s latest billionaire after $16bn Blackstone deal: FT reports cricket fan Robin Khuda came to country from Bangladesh and built AirTrunk into pan-Asian business.
Nvidia and other investors back applied digital with $160 million in funding: WSJ reports the fresh capital is expected to help the data-center and AI cloud-computing company grow.
New AI standards group wants to make data scraping opt-in: The Dataset Providers Alliance wants to make AI data licensing ethical. ARS Tech
How banning smartphones boosted profits for French restaurant: Owners say the policy is not deterring diners — and is encouraging them to order more food as they continue their conversations. The Times
Volvo abandoned its plan to produce only electric vehicles by 2030. The Swedish carmaker said up to 10% of its vehicles could be “mild hybrids” by that time.
Repairing VW requires huge upheavals: Closing a few factories will help. Economist
Bloomberg: Tiffany to scale back China flagship store as spending dives
+ Tiffany said to downsize 12,000-square foot store in Shanghai
+ Chinese consumers seeking bargains weigh on luxury giants
*** Culture ***
The 2025 best colleges in the US: Princeton, Babson, and Stanford take the top 3 spots: The Wall Street Journal/College Pulse ranking includes 25 new colleges in the top 50 this year. WSJ
The first movie about pop music to nail its mediocrity: This summer’s “Trap,” from M. Night Shyamalan, works hard to turn its fictional star — and her fans — into heroes. NYT
*** Sport ***
Super Bowl Jets! Super Bowl Lions! Could this NFL season deliver an epic shock? Two revived doormats have championship buzz. Plus: new kickoff rules, Chiefs Three-Peat, Eagles in Brazil, and Brady and Belichick Media. Jason Gay
NFL invades soccer-crazed Brazil in push to go global: The league is hosting its first game in South America, where football dominates and the American version is a niche sport. Bloomberg
Billionaire sports family revels in Wall Street money, World Cup, and Taylor Swift: Dan and Clark Hunt control a $6.5 billion empire with a portfolio of teams across the National Football League, Major League Soccer, and the National Basketball Association. Bloomberg
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal