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Caracal Insider Daily | January 10, 2017

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Middle East, Davos, Detroit, Ottawa, Alabama, Italy

Caracal Insider Daily
January 10, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia

Caracal Insider = Global Business News at the Intersection of Politics + Policy + Profits

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TOP FIVE

✔️ Pence plans to visit the Middle East from January 19-23

✔️ Trump plans to attend the World Economic Forum in Davos

✔️ Canada takes ‘Hug-an-American’ approach to saving NAFTA

✔️ Ford CEO Jim Hackett on the future of car ownership and driving

✔️ Formula E partners with Swiss technology giant ABB
 

GEOECONOMICS

Pence's Middle East tour: Pence plans to visit the Middle East from January 19-23, with stops in Egypt, Israel, and Jordan. 

UK's PM May to meet finance bosses to discuss Brexit: Reuters reports, Britain's Prime Minister Theresa May will meet executives from major finance companies on Thursday to give them a clearer idea of what Britain's divorce from the European Union will mean for the industry, two sources familiar with the matter said.

Macron calls for big data strategy across Europe: FT reports, a larger market needed to compete with US and China, says French president.

Macron urges European unity to face rising China: AFP reports, French President Emmanuel Macron pleaded on Wednesday for European unity in the face of China's growing economic power as he wrapped up a visit to Beijing with several business deals. Macron, who has become the leading voice of the European Union, endorsed President Xi Jinping's massive $1 trillion program to revive ancient Silk Road trading routes during his three-day trip. But the French leader also warned Europeans to stay on guard to protect strategic sectors as China makes inroads through the project, known in Beijing as One Belt One Road, which seeks to build rail, maritime and road links from Asia to Europe and Africa.

Macron as the new leader of the free world - here's the case for this call

1. Brexit has galvanized greater security cooperation on the continent

2. Germany is focused inward as it struggles to form a new government

2. Trump’s “America First” foreign policy has opened up a leadership void internationally


Dollar diplomacy: China orders 184 Airbus A320 planes

Betting on the City: Spain’s Alantra Partners SA is considering moving its headquarters from Madrid to London in a bet the UK capital will remain the center of European business and finance even after Brexit.

We are seeing what happens when the US pulls 'back': Spiegel reports, in an interview, German Foreign Minister Sigmar Gabriel urges Germany to pay greater attention to the future of the EU. He warns that there are no vacuums in international politics and that when the U.S. withdraws, Russia or China step in. 

107: Germany’s ruling parties have been unable to form a coalition for 107 days, the longest period the country has gone without a government since its reunification in 1990.

Puigdemont seeks to lead Catalonia via Skype: FT reports, separatists agree to try to re-elect fugitive as a regional leader.

Czech government set to lose a confidence vote, but Babis' party likely to retain power: Reuters reports, Czech Prime Minister Andrej Babis, battling allegations he illegally tapped European Union subsidies a decade ago, looked certain to lose a parliamentary confidence vote on Wednesday.

From king to kingmaker? Berlusconi’s baffling resurrection: AFP reports, despite a tax fraud conviction, a ban from public office and a long history of scandals, the 81-year-old tycoon is preparing for March's elections and navigating Italy’s labyrinthine politics like no other.

NYT: Trump plans to attend the World Economic Forum in Davos

WP: White House confirms Trump to attend Davos gathering, synonymous with wealth and power


Trump to attend Davos global gathering, the first US president to do so in nearly 20 years: WP reports, the Switzerland forum has long attracted some of the world’s wealthiest financiers, but it is also seen as a posh gathering of the economic elite. The event comes as President Trump faces crucial decisions about his international economic agenda.

@kaylatausche: CNBC confirms Pres. Trump will attend the World Economic Forum in Davos - an event once described by JPM CEO Jamie Dimon thusly: "Where billionaires tell millionaires what the middle class feels."

@marcaross: Trump on the campaign trail = Detroit is more important than Davos | Trump with a bruised ego = Davos is more important than Detroit

@marcaross: Who says globalism isn't cool?!?


Why is Trump going to Davos? Does he want to make his case again for "America First" before the world's elite or is this more wag the dog to placate his domestic base. I think it is the later. I can't see Trump saying anything different from his speech at the APEC CEO Summit last November. Also, going to a posh Swiss resort town and telling Bally wearing plutocrats they stink will play well in Macomb County.

Canada takes ‘Hug-an-American’ approach to saving NAFTA: WSJ reports, Ottawa is betting friends in business and state governments across the US will see the damage tearing up Nafta could do to supply chains and growth—and pressure the Trump administration to leave the trade pact alone.

Smart. For foreign governments and international business to succeed in this "America First" political climate, it is essential engagement and advocacy takes place beyond the Beltway.

India moved to relax restrictions on foreign investment in retail, airlines, and other industries. The new rule allows foreign airlines to buy up to 49 percent of Air India.

In China, facial recognition is sharp end of a drive for total surveillance: WP reports, facial recognition is the new hot tech topic in China. Banks, airports, hotels and even public toilets are all trying to verify people’s identities by analyzing their faces. But the police and security state have been the most enthusiastic about embracing this new technology. 

WSJ: With US aid cut, Pakistan drifts closer to China

In North Korea, hackers mine cryptocurrency abroad
: WSJ reports, a cybersecurity researcher has found malware that mines a type of cryptocurrency and routes the bounty to a North Korean university, showing how hackers in North Korea are targeting new assets as sanctions force Pyongyang to pursue alternative income streams. 

AMERICAN POLITICS

NYT: DACA program must stay in placef for now, judge says

DOH Dem conditions: Ed Royce becomes the 47th incumbent member not to seek re-election and the 32nd Republican.

‘Mitt-ism’ vs. ‘Trumpism’: Romney’s return to national stage flares GOP divide: WP reports, Mitt Romney’s probable bid for a Senate seat from Utah has prompted a sharp debate among Republicans over whether traditional political figures are still welcome as leaders of a party dominated by President Trump.

GOP anxious with Trump on trade: The Hill reports, Republican senators from farm states are stepping up pressure on President Trump ahead of a key round of trade negotiations scheduled later this month. These GOP lawmakers are growing increasingly worried that a break with trading partners could reverberate in the 2018 midterm elections. 

Trade and immigration test top business croup’s ties to Trump: Bloomberg reports, The US Chamber of Commerce found common cause in 2017 with President Donald Trump on tax cuts and regulatory rollbacks. This year the powerful conservative business group could part ways with the White House on two key issues: trade and immigration. On Wednesday, Thomas Donohue, the chamber’s president, is to deliver his annual address on American business, using it as a 2017 victory lap and as a call to strengthen growth.

Many Conservatives refer to the organization as the US Chamber of Compromise.

The decline of anti-Trumpism
NYT - David Brooks

"There’s a hierarchy of excellence in every sphere. There’s a huge difference between William F. Buckley and Sean Hannity, between the reporters at this newspaper and a rumor-spreader. Part of this struggle is to maintain those distinctions, not to contribute to their evisceration."

Bannon is out at Breitbart: For Bannon, he was never going to be more powerful and more successful outside the White House than inside. Once he turned in his hard pass he became like a thousand other political operatives in DC - looking for the next campaign, in need of benefactors, and tossed to the side because he doesn't have a job that ensures access and influence. Also, this is a great reminder of the constant of American politics - when you are staff, you are staff.

ENTERPRISE

Google is going all out in promoting its voice-powered Google Assistant at the annual Consumer Electronics Show in Las Vegas, including massive ads sporting the words "Hey Google."

Do you have a VA? Google, Amazon, and Samsung are adding their virtual assistants to ever more devices, including refrigerators.

Alexa gets behind the wheel: Amazon has introduced Alexa Onboard technology, which lets users access the voice assistant through their car's infotainment system.

Google Pay launched: It is a consolidation of all Google payment products, including Android Pay and Google Wallet.

The subliminal trick Netflix uses to get you to watch its movies and shows: You get a preview/trailer image that Netflix's algorithm thinks will entice you to watch, but the key is that the picture could change tomorrow as the system "learns" more about you and subscribers like you. For any given show, there might be a dozen possible images loaded, which are ranked according to "context."

GoPro hires JP Morgan to explore a sale.

Supercharger and a milkshake: Elon Musk says one of Tesla's Los Angeles-area Supercharger stations (near the 405) will feature a drive-in movie screen and a "rock restaurant" with waitresses and waiters serving on roller skates.

Motor Dixie: Toyota and Mazda are said to have picked Alabama for a $1.6 billion plant they plan to build.

WSJ: Jamie Dimon of JPMorgan: I 'regret' calling Bitcoin a fraud

Under Armour could be the next Reebok: WSJ reports, Under Armour, facing falling sales and a stock-price rout, could be heading down the path of struggling sportswear brand Reebok. “The Under Armour brand remains at risk,” said Sam Poser, an analyst at Susquehanna International, in a research note Tuesday downgrading his outlook on the stock. “Given poor brand distribution decisions, we believe [Under Armour] risks are becoming more like Reebok than Nike.”

TRENDS

Gene Munster on 3 reasons Amazon will buy Target this yearhttps://goo.gl/7nLBrE

1. Offline sales will always be a big part of retail
2. They both pursue affluent consumers
3. Brick and mortar will get more advanced


Economics and the human instinct for storytelling
Chicago Booth Review

"Why do economists miss the stories behind many of our economic fluctuations? One reason is that economists have a toolkit, and the narrative hasn’t traditionally been in it. We view narrative as somebody else’s territory. We do simultaneous equations. We teach general equilibrium theory. That’s fine, but by the time we finish teaching those, we’re tired." 

Ford CEO Jim Hackett on the future of car ownership and driving: Fast Company reports, new CEO Jim Hackett is propelling the 115-year-old company into the future while respecting its celebrated past. https://goo.gl/V5d1Cd

The world’s best female poker player joins the world’s biggest hedge fund: Bloomberg reports, Vanessa Selbst, the most successful woman ever in tournament poker, is working at Bridgewater Associates to learn another big-money grind: hedge funds. Selbst, who won $11.9 million in prizes over 12 years in the card game, joined the world’s largest hedge fund, according to a person with knowledge of the matter.

CULTURE

‘The Shape of Water’ by Guillermo del Toro received 12 BAFTA nominations.

Wonderful movie - probably the movie of the year. 

SPORT

Brady behind the scenes and away from his team: NYT reports, Tom Brady gave a filmmaker unusual access to his private life. It is unclear how much Bill Belichick and the Patriots know about the project.

CNN: Formula E partners with Swiss technology giant ABB to 'write the future'

“ABB FIA Formula E Championship” brings pioneering technology leader ABB as title sponsor to the world’s first fully electric international FIA motorsport series.

Caracal Business Insider | November 22, 2017

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Mnangagwa, Putin, Merkel, US Navy, Detroit, Shiffrin

Caracal Business Insider | Daily
November 22, 2017
Curation and commentary from Marc A. Ross

Caracal Business Insider: Politics + Policy + Profits

Reporting from Alexandria, Virginia


GEOECONOMICS

NYT: Robert Mugabe resigns as Zimbabwe’s president, ending 37-year rule

Coup in Zimbabwe: A win-win for China – for now: Asia Times reports, did Beijing give the go-ahead to remove Zimbabwe President Robert Mugabe? Nobody is saying. But it is suspicious that Zimbabwe’s army chief General Chiwenga visited China a few days before he moved against Mugabe. Presumably, nobody in Beijing told him ‘no.’ 

Zimbabwe's Mnangagwa to return to the country after Mugabe's resignation: Reuters reports, Zimbabwe's Emmerson Mnangagwa is set to return to the country on Wednesday and should be sworn in as president following the resignation of Robert Mugabe after nearly four decades in power, a senior ruling party official said.

EU and UK aim to strike divorce deal within 3 weeks: FT reports, negotiators aim for the week of December 4 as Theresa May moves to settle the bill.

@HandelsblattGE: Landing the European Banking Authority was an important victory for Paris in its rivalry with Frankfurt to become the European Union’s financial center when Britain leaves the bloc.

Germany + Westminister + Brexit: Theresa May is being urged by Tories to exploit Angela Merkel's political weakness and suspend plans to offer billions of pounds more to the European Union.

A weakened Merkel may spell trouble for all of Europe: NYT reports, the failure of Chancellor Angela Merkel of Germany to form a coalition government is a blow to hopes for a strong Franco-German engine to drive European Union reform.

@voxdotcom: Angela Merkel could:

1. Run a minority government.
2. Try to cajole the parties back to the table to create a majority government.
3. Stand back and wait for the president to call for a new round of elections.


Putin to announce presidential bid December 15: The Kremlin plans to launch Vladimir Putin's campaign for a fourth term in late December so the President can avoid questions on the topic at his annual press conference on December 14. 

Syria's Assad travels to Russia, meets with Putin: AP reports, Russia is about to end its military operation in Syria that tipped the scales in the devastating war in favor of government forces, said President Vladimir Putin.

Trump administration blasts Mexico, Canada on NAFTA progress: WSJ reports, USTR Robert Lighthizer issued a downbeat assessment Tuesday of efforts to rewrite Nafta, decrying ‘a lack of headway’ and criticizing Canada and Mexico for refusing to ‘seriously engage’ on controversial U.S. proposals aimed at cutting the US trade deficit.

Canada warns US that NAFTA auto changes would backfire on America: Globe and Mail reports, representatives in Mexico City say Trump administration’s NAFTA rules-of-origin proposals would be self-defeating and cost Americans jobs.

Nikkei: Xi Jinping breaks taboo and enters the Forbidden City

"Chinese leader may still be commander-in-chief in 2035 when he would be 82."

GB Times: China invests in more than 20 overseas railway projects

AMERICAN POLITICS

US Navy plane crashes into the sea near Japan: WSJ reports, a US Navy aircraft carrying 11 crew and passengers crashed into the sea south of Japan‘s main islands on Wednesday. The Navy provided no details on casualties, but Japan’s defense minister said eight people had been rescued.

8 people found after Navy plane carrying 11 crashes into the Pacific: WP reports, the C-2 aircraft, which had 11 crew and passengers on board, had been traveling to the USS Ronald Reagan aircraft carrier, which is currently in the Philippine Sea on exercises with Japan’s Maritime Self-Defense Force. Japanese Defense Minister Itsunori Onodera said eight people had been recovered from the C-2 aircraft, although it was not clear whether they were found alive.

Sweeping plan would overturn equal access to the Internet: NYT reports, the Federal Communications Commission plans to scrap net neutrality rules requiring broadband providers to give consumers equal access to all content on the internet.

Trump administration plans to scrap net neutrality: FT reports, a proposal to end Obama-era rules is a victory for cable and telecom companies.

Reuters: Trump says AT&T plan to buy Time Warner 'not a good deal'

Playbook reports, many outlets town are working on stories about sexual harassment by members of Congress on the Hill.

Mueller probes Jared Kushner’s contacts with foreign leaders: WSJ reports, Special Counsel Robert Mueller’s investigators are asking questions about White House adviser Jared Kushner’s interactions with foreign leaders during the presidential transition and what role he may have played in firing ex-FBI Director James Comey.

Pence PAC steers funds to dozens of GOP candidates: WSJ reports, VP Pence will dip into his new political-action committee to help Republicans keep control of Congress and statehouses, contributing more than $200,000 to candidates in dozens of races across the country, his office said.

ENTERPRISE

SoftBank plans investments of up to $25 billion in Saudi Arabia over the next three to four years.

Scott Galloway thinks Amazon is now setting its sights on luxury department store Nordstrom.

WSJ: Uber paid hackers $100,000 to hide large 2016 breach

The data breach impacted 57 million accounts last year. 

Bloomberg: Tesla’s burning through nearly half a million dollars every hour

Over the past 12 months, the electric-car maker has been burning money at a clip of about $8,000 a minute (or $480,000 an hour), Bloomberg data show.

Tesla has a market capitalization of $53 billion with Ford Motor Co. worth $48 billion.


Meg Whitman will step down as CEO of Hewlett Packard Enterprise.

State Duma threatens to ban Google ads: Deputy speaker Pyotr Tolstoy says Moscow will consider banning Google from collecting advertising revenue in Russia, in response to the company’s plans to "de-rank" RT and Sputnik in news search results.

Buy a jet or two on Taobao: two Boeing 747-400 freighters were sold on Taobao for 322m yuan ($48 million), reports Beijing Youth Daily. The planes originally belonged to a defunct cargo company, Jade Cargo International. Shenzhen Intermediate People's Court, in charge of handling the firm's bankruptcy, tried to sell them off at six separate private auctions but failed each time.

Francis Crick Institute's £700m building 'too noisy to concentrate': Guardian reports, some of the 1,250 people working at the year-old laboratory say its open plan layout, designed to produce collaboration, makes it hard to focus on work.

TRENDS

Quartz: Big banks’ blockchain specialists are flocking to cryptocurrency firms in search of freedom

How to hire a behavioral scientist https://goo.gl/VJefa1

China's box office has exceeded $7.5 billion for the first time in a calendar year, according to China's State Administration of Press, Publication, Radio, Film, and Television (SAPPRFT).

How Amazon, Apple, Facebook, and Google manipulate our emotions: A TED Talk from Scott Galloway on the combined market capitalization of Amazon, Apple, Facebook, and Google is now equivalent to the GDP of India. How did these four companies come to infiltrate our lives so completely? In a spectacular rant, Scott Galloway shares insights and eye-opening stats about their dominance and motivation -- and what happens when a society prizes shareholder value over everything else. Followed by a Q&A with TED Curator Chris Anderson. https://goo.gl/29wGTE

CULTURE

Detroit: The most exciting city in America?https://nyti.ms/2jHv7UE

Developer has big plans for Ted’s Bulletin, Kramerbooks and life in DC: WP reports, Steve Salis, 34, has a vision to create "ecosystems," all-in-one communities that combine office space, housing, shopping, and dining. https://goo.gl/vzvzjD

SOTD

Adam Ant - Goody Two Shoes https://goo.gl/Zy8ggL

SPORT

Mikaela Shiffrin, the best slalom skier in the world: New Yorker reports, she seems to be a sure bet to win gold at the next Olympics. But so much could still go wrong. 
https://goo.gl/rzGL5e

The odd couple: HG reports, British soccer club Manchester United has been gaining a reputation for lucrative but sometimes bizarre commercial partnerships. The latest involves German family-owned coffee firm Melitta. https://goo.gl/uE7Fru

"As for Manchester United, this is just the latest in a string of similar new commercial partnerships. The club now has 54 of them and they include all kinds of firms willing to get into bed with soccer players, including commercial partners for paint, mattresses, wine, tires, noodles and even Japanese tractors."

How a Scottish goalkeeper ended up coaching in the Chinese Super League https://goo.gl/LsQny4

Champions League today - all matches at 2:45 pm ET

Juventus vs Barcelona
Atlético Madrid vs Roma
Anderlecht vs Bayern München
Basel vs Manchester United
PSG vs Celtic


Teams which have qualified for final 16 spots:

Bayern Munich
Beşiktaş
Manchester City󠁢󠁥󠁮󠁧󠁿
PSG
Real Madrid
Tottenham