ITK Daily | February 26
Ukrainian Troops, Gretchen Whitmer, Rivian, Music Microculture, NFL, plus 1,000 more actionable insights.
ITK Daily is geopolitical business news + intelligence for comms pros.
Always Be Communicating.
Happy Monday.
Here’s today’s ITK Daily:
*** Globalization + Geopolitics ***
WSJ: Zelensky says 31,000 Ukrainian troops killed in 2 years of war
After two years of war, Ukrainian civilians are in a state of 'permanent anxiety': The impact of the conflict on the mental health of Ukrainians concerns all generations. But the problem is largely underestimated or even neglected across the country. Le Monde
Visual analysis: Ukraine’s war of survival enters third year: How Russia’s full-scale invasion is bearing on each nation’s military, economy, and politics. FT
Global News: Poland wants allies to keep taking Ukraine war seriously, Canada ambassador says
Today: Hungary's National Assembly votes to ratify Sweden’s bid to join NATO, with the vote expected to pass.
Sunday: The 100th anniversary of the Ottoman Empire ending.
Israel's army proposes an evacuation plan for civilians in Gaza: Le Monde reports Prime Minister Benjamin Netanyahu said a ground invasion of the Palestinian territory's southern city Rafah was necessary for "total victory."
Israel’s Netanyahu won’t agree to hostage deal until Hamas backs down on demands: WSJ reports the two sides have been looking for a deal to release some of the hostages still remaining after the Oct. 7 attacks.
Man in military uniform sets himself on fire outside DC’s Israeli Embassy: WP reports an Air Force spokeswoman confirmed that “an active duty airman was involved in today’s incident."
WP: US hopes cease-fire agreement in Gaza can be reached in ‘coming days’
WP: As Lebanon teeters on the edge, a war with Israel would be catastrophic
Japan takes Taiwan's helping hand on long road to chip revival: Reuters reports that Japan turned to TSMC for help on an industry it once dominated reflects the Taiwan chipmaker's dominant position in the foundry business and Tokyo's heightened concern over China's growing prowess in a wide swathe of technology.
China’s quant clampdown risks damaging fragile markets for years: A sudden crackdown has sparked a frenzy as quant funds suffer losses. Bloomberg
CNBC: China de-linking talk is overdone and it’s still key to the global economy, Asian Development Bank says
+ China is still the leading trading partner for many countries, and the narrative it being delinked from the global economy is overdone, says the ADB.
+ China’s trade with its major partners fell in 2023 — its annual exports dipped for the first time in seven years.
+ Although there have been parts of overall trade with China that have declined, the country’s engagement and importance in the global value chain has not diminished, said ADB’s chief economist.
Malaysia’s prime minister decries ‘China-phobia’ among US and western allies: Anwar Ibrahim says rivalry squeezes smaller countries as he courts investment for semiconductor supply chain. FT
In South Korea, a doctors' strike creates chaos in hospitals: Le Monde reports doctors and interns are protesting against the relaxing of the strict entry requirements to medical school in an aging country suffering from a shortage of personnel. The government has had to open military hospitals to civilians.
WSJ: German business sentiment brightens slightly, despite signs of recession
Between heckles and clashes, Macron spends 13 hours trying to maintain peace at France's big agriculture fair: Le Monde reports keeping his distance from the angry farmers protesting at the Salon de l'Agriculture in Paris, the French president spent a long day meeting producers and talking with unions as he defended the government's response to the farming community's demands.
James Cleverly: Deepfakes pose ‘perfect’ threat to next election: The home secretary warned that malign actors will use the technology to hijacking elections. The Times
US struggles for influence in West Africa as military juntas rise WP
In EV revolution, resource-rich Global South hopes to turn cash-rich: Bolivia and Indonesia tell Global North to give them a place on the value chain. Nikkei
Indonesia to wipe out global nickel rivals, warns French miner Eramet chief: FT reports South-east Asian country’s low-cost production of metal vital to electric cars has made traditional suppliers uncompetitive, says Christel Bories
Tens of thousands of Bolsonaro supporters protest to defend Brazil's former president against investigations: Le Monde reports: "What I seek is pacification, it is erasing the past," Bolsonaro said in a speech in Sao Paulo on Sunday, and he denied that he and his supporters attempted a coup when rioters assaulted government buildings in 2023.
Canada is facing ‘irrelevance’ on world stage, ex-defence chief warns: Global News reports retired general Rick Hillier, Canada’s former chief of defence staff, says he believes the country risks facing “irrelevance” in an unstable geopolitical world.
+ In an interview on The West Block, host Mercedes Stephenson asked Hillier what he thought Canada’s biggest national security risk is: “Our irrelevance. The fact that nobody even bothers to phone us if they’re talking about doing something as a group of Three Eyes or a group of Five Eyes or things of that nature,” Hillier said.
Life aboard a nuclear submarine as the US responds to threats around the globe: How the Navy prowls today’s uncertain seas—and prepares for possible superpower conflict tomorrow. Vanity Fair
Friday: The 70th anniversary of the first hydrogen bomb test on Bikini Atoll in the Marshall Islands.
The global trade system is in desperate need of an overhaul: Our understanding of comparative advantage is confused and damaging. Rana Foroohar
*** US Politics + Elections ***
Will ‘micro-influencers’ sway tight US election races? Political campaign groups spend millions on social media users with small followings to target messages better. FT
Trump Tightens Hold on GOP, Crowding Out Even Popular Rivals: WSJ reports the former president's 20-point victory over Nikki Haley in South Carolina's primary shows the inability of any Republican leader to rally support against him as he moves to the brink of securing the presidential nomination.
WP: Koch network ends financial support for Nikki Haley’s presidential bid
WP: Thune, No. 2 Senate Republican, endorses Trump
Gretchen Whitmer’s biggest electoral test: Can she deliver Michigan for Biden? The Michigan governor, who has taken a prominent role in the president’s campaign, is popular in her state. But as the Democratic coalition frays, some wonder if that will be enough. NYT
The old man and the scene: The readout from the Cafe Milano crowd about Biden’s age and vanity. Tara Palmeri
Bloomberg: US shutdown risk remains with spending deal elusive, Schumer says
+ Top Senate Democrat says House Republicans need more time
+ First batch of federal agencies would shut down on March 2
First Amendment fight pits red states against Big Tech at Supreme Court: The cases, set for argument Monday, are among the biggest of many constitutional battles at the court over free speech this term. WSJ
*** Disruption + Innovation ***
Today: MWC Barcelona, the world’s largest event for the mobile telecommunications industry, begins.
Honor launched what it says is the industry's first "intent-base" interface that can anticipate users' needs on its flagship smartphones and PCs in a push to capture the AI boom and grow its overseas market.
+ AI-enabled intent-based recognition tech can help analyze and make sense of messages and photos and understand the intention of users based on their on-device daily usage behaviors, according to the company.
CNBC: Huawei spin-off Honor shows off tech to control a car with your eyes and chatbot based on Meta’s AI
+ Honor on Sunday showed off technology that allows a user to control a car just by using their eyes.
+ Honor demonstrated eye-tracking technology in the Magic 6 Pro as it launched the device into international markets at Mobile World Congress in Barcelona.
+ In a video about the feature, Honor showed how a person could stare at one of the commands and the car would carry out the function such as moving the car forward.
CNBC: Smartphone giants like Samsung are going to talk up ‘AI phones’ this year — here’s what that means
+ Artificial intelligence phones: these are the buzzwords you’ll likely hear this year, as smartphone players look to jump on the AI hype to boost sales of their devices after a difficult stretch of time.
+ Analysts who spoke to CNBC broadly agree on a few things — that these devices will have more advanced chips to run AI, and that those AI apps will run on-device rather than in the cloud.
+ Device makers including Samsung are going to talk up their AI features this year at Mobile World Congress in Barcelona.
AI boom sparks concern over Big Tech’s water consumption: FT reports Microsoft, Google, and Meta are using more water to cool down data centers that power artificial intelligence products.
AI is exploding data center energy use. A Google-created technique may help: Data center operators are shifting computing power to locations where the cleanest electrons are, in an effort to reduce tech’s carbon footprint. Bloomberg
The EU’s AI Act and how companies can achieve compliance: The EU’s forthcoming AI Act imposes requirements on companies designing and/or using AI in the European Union, and backs it up with stiff penalties. Companies need to analyze where they might fail to be compliant and then operationalize or implement the requisite steps to close the gaps in a way that reflects internal alignment. For most companies, that won’t be easy. The article lays out what boards, C-suites, and managers need to do to make this process work and ensure their companies will be compliant when regulation comes into force. HBR
GPT-4 developer tool can hack websites without human help: The developer version of OpenAI’s leading large language model can be repurposed as an AI hacking agent, researchers have found. That could make it far easier for anyone to launch certain cyberattacks online. New Scientist
Apple faces UK investor revolt over rogue AI threat: Legal & General and Abrdn call for transparency amid fake news, privacy and discrimination fears, as well as implications for copyright and employment. The Times
Mark Zuckerberg is poised for a packed week in Asia, with stops in Japan, South Korea, and India to work on artificial intelligence services and forge ties with business and government leaders in the region.
Bloomberg: Meta’s Zuckerberg seeks out of lawsuits blaming him for Instagram addiction
+ Meta CEO has been personally sued in two dozen cases across US
+ He argues he can’t be held liable just because he’s the boss
Tyler Perry puts $800M studio expansion on hold after seeing OpenAI’s Sora: “Jobs are going to be lost”: THR reports the actor, filmmaker and studio owner is raising the alarm about the impact of the tech, saying, "I feel like everybody in the industry is running a hundred miles an hour to try and catch up, to try and put in guardrails."
AI promises a huge transformation, but do not ignore the fallout: Artificial intelligence has enormous potential to address many long-term problems, but the inevitable losers will not go quietly.
Simon French
Can a tech giant be woke? Microsoft, once again a juggernaut thanks to artificial intelligence, wants to be seen as an ethical employer. Is there a catch? NYT
AI’s unlikely benefactor: Blackstone’s 77-Year-old CEO Steve Schwarzman: The private-equity billionaire has donated more than half a billion dollars for AI education and research. WSJ
Jeff Bezos and Nvidia join OpenAI and Microsoft in backing a humanoid robot unicorn valued at $2 billion, sources say: Fortune reports the startup Figure AI Inc. — also backed by OpenAI and Microsoft Corp. — is raising about $675 million in a funding round that carries a pre-money valuation of roughly $2 billion, said the people, who asked not to be identified because the matter is private. Through his firm Explore Investments LLC, Bezos has committed $100 million. Microsoft is investing $95 million, while Nvidia and an Amazon.com Inc.-affiliated fund are each providing $50 million.
Brick-laying robots: Dutch startup Monumental landed a $25 million tranche for its robotic carts and arms that help lay bricks for construction.
How a shifting AI chip market will shape Nvidia’s future: WSJ reports customers’ needs are evolving as the artificial intelligence industry transitions, presenting an opportunity for Nvidia and its rivals.
TSMC opens first chip plant in Japan for Sony and Renesas: Nikkei reports Prime Minister Kishida announces support for company's second plant in Kumamoto.
You say Bitcoin is digital gold? Maybe it’s digital pearls: Almost every previously disruptive technology has ended up being disrupted. Bitcoin could be too. Jason Zweig
Alcoa has agreed to an all-stock deal to acquire Australia’s Alumina, valuing its equity at some $2.20 billion.
Today: The 2024 Geneva International Motor Show opens, running until the weekend.
CNBC: Xiaomi bets big on its new electric vehicle — targets 20 million premium users
+ Xiaomi is putting a premium price on its first electric car because it already has about 20 million users in that segment, Group President Weibing Lu told CNBC.
+ The company has generally been known for more affordably priced products. That’s raised doubts about whether it can sell an electric car – promoted as a rival to Porsche – in a market where even established giant BYD is slashing prices.
+ An important part of Xiaomi’s strategy is its operating system for connecting the car with the smartphones and home appliances the company already sells.
Bloomberg: BYD unveils $233,450 EV supercar to rival Ferrari, Lamborghini
EV startups struggled to build cars. Now they struggle to sell them. Lucid and Rivian are more exposed to cooling demand than their legacy rivals, which can lean on gas-powered vehicles to support electric investments. WSJ
Rivan layoffs: Rivian is laying off 10% of its salaried workforce in a bid to cut costs in an increasingly tough market for electric vehicles, putting even more pressure on its future, more affordable EV called the R2.
Cake sale: The future of bankrupt electric motorbike startup Cake is still uncertain, but the majority of its U.S. inventory is going to a man in Florida.
Bloomberg: Uber to back Nigerian startup Moove in up to $100 million round
+ Funding round could push Moove’s market value to $750 million
+ Moove provides financing to drivers to buy new vehicles
Nielsen released its January report on viewing usage across linear TV and streaming, which revealed that YouTube is once again the overall top streaming service in the US, with 8.6% of viewing on television screens. Netflix, meanwhile, saw 7.9% of TV usage.
*** Culture ***
WP: ‘Oppenheimer,’ ‘The Bear’ win at the 30th SAG Awards
We now live in a music microculture, even when it comes to Taylor Swift Global News
Cycling, a cheap and effective medicine: A study has shown that cycling is a good way to prevent chronic diseases and lower premature mortality, with substantial savings for health insurance institutions and the community. Le Monde
Fewer trips, fewer planes: business travelers rethink old habits: COVID, costs, and climate issues are forcing companies to cut back on work excursions. FT
*** Sport ***
It now costs a quarter of a billion dollars to field an NFL team: WSJ reports the NFL’s salary cap has taken an unprecedented leap, to $255.4 million for the upcoming season, a figure that will likely produce a windfall for this year’s free-agent class.
America gets Messi fever: Is Argentine player the turning point for US soccer? Lionel Messi has proven to be a major draw for Inter Miami and the US professional soccer league MLS. The Americans are pinning all their hopes on the superstar footballer, but he is getting older, and a recent summer tour turned out to be a disaster. Der Spiegel
Spring training at Coachella: Can MLS cash in on its preseason? AEG, the entertainment giant, is trying to organize large-scale training camps marketed to fans, as other sports have done. Will it work? NYT
Are the Lebrun brothers making table tennis popular again? Emerging as sports sensations and new media darlings, the French table tennis duo is contributing to the noticeable, albeit modest, resurgence of French table tennis. Le Monde
Saturday: The 2024 Formula 1 season begins with the Bahrain Grand Prix.
Enjoy the ride + plan accordingly.
-Marc
ITK Daily | February 26
