G20, G7, D-Day, Millennials, Drone-brella, YouTube, Björn Borg
Marc Ross Daily
June 6, 2018
Curation and commentary from Marc A. Ross
Reporting from Alexandria, Virginia
Marc Ross Daily = Business News at the Intersection of Global Politics + Policy + Profits
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TOP FIVE
✔️ In G20, 41% of GDP controlled by populists vs 4% in 2007
✔️ Can any G7 leaders corral Trump?
✔️ Today: 74th anniversary of D-Day
✔️ Companies to pour $2.5 trillion into buybacks and dividends this year
✔️ Why startups keep choosing human names
ROSS RANT
ZTE built to spy and bribe - the focus of commercial dispute in Texas
According to court documents filed in the Texas, ZTE, the Chinese telecommunications company bidding for major contracts in Australia, and at the center of Donald Trump’s trade war with Beijing, was established partly as a front for military intelligence and has been linked to corruption in 18 countries.
The new claims form part of an ongoing commercial litigation alleging that ZTE bribed Liberian officials, to unseat a US company which had won the right to upgrade the West African country’s telecommunications networks.
Contained in the Summary of Claims are allegations ZTE was formed partly with the aim of spying for Beijing.
“China's Ministry of Aerospace founded ZTE as a front to send officers abroad under non-diplomatic covers such as scientists, businessmen, and executives for the purpose of collecting intelligence,” the documents filed in the 191st District Court of Dallas reveal.
The corporate governance and origins of China's telecom companies expose them up to nasty headlines, investigations, commercial disputes, and secrets.
China's biggest business need to decide - are they a Chinese company or global company - they can't be both.
US-China technology and data war - political fear or business reality?
The dominance of US semiconductor technology in Chinese phones makes for great angst in Beijing. It reveals Americans firms are generations ahead in semiconductor and other technologies - we are talking 20 to 30 years. In assembly factories across China, the critical parts that go into phones, tablets, routers, vehicles, even airplanes, are often imports from advanced economies like the United States.
The Chinese government has ambitious plans to end this dependence.
“Techno-nationalism has a long and stellar history in China,” said Damien Ma, fellow and associate director of Paulson Institute think tank in Chicago. “During Mao’s time, they always wanted to have some semblance of technological self-sufficiency. And I don’t think that in itself is surprising or odd. Many countries want it.”
Many Trump administration officials call these Chinese plans “frightening” and a direct national security threat and a sound reason to impose tariffs on Chinese products. Some American academics and politicians fear China will soon enjoy global domination of many high-tech sectors at the expense of many Western industrial economies.
Does this matter?
Will it happen?
Do you think America's biggest and best businesses are sitting still and not moving forward?
Also, do you think China can execute?
Business plans and business talk mean little if you can't execute, ship, and scale.
GEOECONOMICS
Bloomberg: In G20, 41% of GDP controlled by populists vs 4% in 2007
Trade war fears largely exaggerated, says expert https://s.nikkei.com/2sLbWKh
Professor Richard Baldwin of the Graduate Institute in Geneva has argued that some parts of Asia face a greater challenge than other regions as the world enters its third phase of globalization.
Can any G7 leaders corral Trump? https://bloom.bg/2Hq0ol2
Save the date: The UK government has set June 12 as the date the EU withdrawal bill comes back to the House of Commons for one marathon session. The Commons will try to overturn all 15 amendments inserted by the House of Lords. It will be a showdown between different factions of Tory lawmakers as they vote on measures aimed at keeping the UK in the on single market and customs union.
The Times: Labour bids for ‘softest’ Brexit deal in new shift
UK: Benjamin Netanyahu arrives in Britain to meet Theresa May.
Bloomberg: Mexican peso falls to lowest in a year as NAFTA seen delayed
Mexico says it is fighting back as US tariffs hit: NYT reports, Mexico said it would impose tariffs on cheese, whiskey and other American goods in response to steel and aluminum levies. The move further strains relations as the US, Canada, and Mexico try to rewrite their free trade agreement.
Putin invites Kim to Russia in September: Nikkei reports, Russia's government has invited Kim Jong Un to make an official visit this September in what appears to be a move by President Vladimir Putin to ensure that Moscow is not overshadowed by the North Korean leader's upcoming summit with U.S. President Donald Trump.
Putin moves to capitalize on Europe’s fury with Trump: NYT reports, Russia’s goals of shedding European sanctions and regaining respectability suddenly seem in reach as the U.S. treats its allies as trade rivals.
Italy splits with allies and demands end to Russia sanctions: The Times reports, Italy’s new populist government has broken ranks with its allies in western Europe by calling for an end to sanctions on Russia. Giuseppe Conte, the prime minister, used his debut speech to parliament to call for a fresh approach to relations with President Putin.
FT: White House presses US airlines to resist Beijing over Taiwan
LeBron is a player... in US-China trade thanks to NBA deals: Bloomberg reports, while LeBron James and Stephen Curry are battling on the basketball court in the NBA finals, they’re also on the frontcourt of the US-China trade tussle. That’s because American licensing activities in China have been increasing, and deals by the National Basketball Association and other sports, entertainment and software groups have helped fuel a trade surplus -- in services, at least -- between the US and China.
Today: Japanese PM Shinzo Abe meets with Trump at the White House
AMERICAN POLITICS
Congress unlikely to meet deadline for 2018 NAFTA renegotiation, lawmaker says: The US won’t have time to renegotiate NAFTA with Canada and Mexico this year, Senate Majority Whip John Cornyn has said, Bloomberg reports. Cornyn said it looked like they “are kicking it over to 2019” because Congress won’t have time to vote on a deal before the legislative session ends.
WP - Editorial: It’s time for Congress to take back trade: The executive branch threatens vital economic and political relationships, requiring a legislative check. Article I, Section 8 clearly assigns the legislative branch the power to “lay and collect . . . duties,” and “to regulate commerce with foreign nations.” It’s time for Capitol Hill to take it back.
WSJ: California Democrats on track to advance in key races for House control
LAT: It's Newsom vs. Cox in November as Villaraigosa tumbles in governor's race
FT: Schultz gives up coffee to test presidential waters
Bloomberg: Schultz has Trump-topping wealth to fund a run for the White House
Washington state AG Bob Ferguson is suing Alphabet Inc.'s Google and Facebook for allegedly failing to provide adequate information about who is purchasing election advertisements on their platforms.
ENTERPRISE
Companies to pour $2.5 trillion into buybacks and dividends this year: Cash-rich companies will invest $2.5 trillion this year in share buybacks, dividends and mergers and acquisitions activity, CNBC reports.
Bloomberg: Apple announces slew of new anti-addiction iPhone controls
- Time limits will switch some apps off, based on user settings
- Parents will now be able to limit kids usage of certain apps
GM aims to launch 10 new-energy vehicle models in China between 2016 and 2020. From 2021 through 2023, GM will double the number of new-energy vehicles available in the domestic market.
Tesla revealed it is working with China to build electric cars and battery packs in Shanghai - its second "gigafactory."
Facebook gave data access to Chinese firm flagged by US intelligence: NYT reports, Facebook has data-sharing partnerships with at least four Chinese electronics companies, including a manufacturing giant that has a close relationship with China’s government, the social media company said on Tuesday. The agreements, which date to at least 2010, gave private access to some user data to Huawei, a telecommunications equipment company that has been flagged by American intelligence officials as a national security threat, as well as to Lenovo, Oppo and TCL.
TRENDS
Why millennials are world’s most powerful consumers https://on.ft.com/2sOJs2C
Why startups keep choosing human names: Marcus, Oscar, Casper—it seems as if every new company is named after someone’s roommate, or even their cat. There’s a reason for that. https://bloom.bg/2Hqphgl
“A short first name changes everything—as it’s unexpected, less concerned with sounding corporate and serious and is inherently more human,” said Steve Manning, the founder of a Sausalito, California-based naming agency that, of course, goes by one name: Igor.
AFP: Japan 'drone-brella' promises hands-free sun cover
CULTURE
Today: 74th anniversary of D-Day
RIP: Kate Spade dies in apparent suicide
LAT: Warner Bros.' 'Ocean's 8' is expected to unseat 'Solo' at the box office this weekend
OTD: In 1962 the Beatles first met their future producer George Martin at an Abbey Road audition.
SPORT
Own goal: The inside story of how the USMNT missed the 2018 World Cup: The Ringer reports, in October, the United States failed to qualify for the World Cup for the first time in more than 30 years. A loss to Trinidad and Tobago sealed their fate, but according to players, coaches, commentators, and executives across American soccer, the disaster doesn’t come down to just one unfortunate result. No, it was the culmination of nearly a decade of mismanagement that broke the team’s spirit and condemned them to failure. http://bit.ly/2sIff59
TLDR: Culture. Culture. Culture.
NBA Finals: Game 3 tonight @ 9:00 pm ET
HBD: Björn Borg, tennis player, five-time Wimbledon champion, 62
To celebrate - make time to watch Borg vs McEnroe https://imdb.to/2HnTVqE