ITK Daily | April 3
Biden + Xi, Border, EVs, Beyoncé, Caitlin Clark + Angel Reese, plus 1,000 more actionable insights.
ITK Daily is geopolitical business news + intelligence for comms pros.
Always Be Communicating.
Happy Wednesday.
Here’s today’s ITK Daily:
*** Ross Rant ***
Dropping this week...
Always Be Communicating. The Manifesto.
Secure your advance copy by sending an email to marc@carcal.global.
*** Globalization + Geopolitics ***
AP: Biden and Xi discuss Taiwan, AI, and fentanyl in a push to return to regular leader talks
+ The call was carefully orchestrated; both countries issued statements calling it “candid and constructive” and said they discussed AI, military cooperation, climate change, and efforts to fight drug trafficking, among other subjects.
Biden reiterates US concerns over TikTok ownership to Xi Jinping: AFP reports President Joe Biden told his counterpart Xi Jinping on Tuesday that the United States wants a change of ownership of TikTok, as Congress debates banning the blockbuster app unless it separates from its Chinese owners.
Biden speaks with Xi on Taiwan and AI: DW reports the leaders of the US and China have had their first conversation since November. Meanwhile, US Secretary of State Antony Blinken and Treasury Secretary Janet Yellen are expected to visit China in the coming weeks.
Biden talks to Xi about conflicts, from Ukraine to the Pacific: NYT reports President Biden aimed to keep relations stable in a call with Xi Jinping of China, but also raised concerns over Beijing’s activities around Taiwan, the South China Sea, and Russia.
WSJ: Biden warns Xi on aiding Russia’s war in Ukraine
Nikkei: Biden and Xi discuss TikTok, South China Sea, and de-risking in call
+ 105-minute phone exchange comes ahead of first US-Japan-Philippine trilateral
Biden’s agenda for call with Xi included election meddling, cyberattacks: Politico reports Biden’s sixth call with China’s leader kicks off a flurry of high-level diplomatic outreach meant to steady ties during the US presidential election campaign.
Treasury Secretary Janet Yellen will this week travel to China for the second time in nine months, aiming to press her counterparts on a build-up of industrial overcapacity.
Xi, Biden and the $10 trillion cost of war over Taiwan: Taiwan’s election highlights the potential for a conflict that would decimate the global economy. Bloomberg
China bans ‘former good friend’ from talking about Hong Kong: Radio Free Asia reports Stephen Roach says he was prohibited from raising worries about the city’s future at a high-level forum.
Bloomberg: US asks South Korea to toughen up export controls on China chips
+ Biden officials want Seoul to adopt similar tech curbs as US
+ Washington is pushing for a deal before the G7 summit in June
North Korea missile test hints at greater menace to US bases: NYT reports the test, analysts said, may have involved a new intermediate-range hypersonic missile that is faster to launch and more difficult to intercept.
Philippines preparing for ‘worst case scenario’ in South China Sea: The Independent reports National Security Council emphasises need to exhaust ‘all diplomatic measures’ to resolve escalating tensions.
NHK: Japan, US, Philippines likely to agree to boost economic security ties
+ Japanese Prime Minister Kishida Fumio is set to visit the US next week for talks with President Joe Biden.
+ Kishida and Biden will meet Philippine President Ferdinand Marcos Jr., who will be visiting Washington. It will be the first summit between the three leaders.
Nikkei: US, Japan to agree on subsidy rules on chips, batteries with China in mind
+ Allies pursue common standards to safeguard supply chains, including for decarbonization.
Bonsai trees and a royal birthday: Japan’s imperial family dips a careful toe in world of Instagram: Meme-worthy content appears in short supply, at least initially, as world’s oldest royal family embarks on its social media journey. Guardian
Japan fights fake whisky with new labeling rules: The Times reports Japanese malts are among the most prized and expensive in the world. Yet their regulation has long been extremely loose.
As Singapore basks in Taylor Swift afterglow, Indonesia fears missing out: Few big artists visit Jakarta, forcing audiences to take their money abroad. Nikkei
AFP: Zelensky lowers army conscription age from 27 to 25
Drones strike deep in Russia, as Ukraine extends its weapons range: NYT reports Ukrainian media and analysts, and Russian officials, said Ukraine had carried out the attack some 700 miles from the land it controls. Ukraine’s military and intelligence forces declined to comment.
Ukraine’s arms industry is growing, but is it growing fast enough? Kyiv is aiming to build its own weapons to bring the fight to Russia. But it will take time Ukraine might not have. NYT
Trump-proofing weapons for Ukraine: Allies consider moving arms group into NATO: Politico reports officials are expected to discuss gradually moving the organization — called the Ukraine Defense Contact Group — into the alliance’s control.
FT: NATO plans $100bn ‘Trump-proof’ fund for Ukraine
+ Proposed five-year military aid package would shield Kyiv from ‘winds of political change’
Bloomberg: NATO proposes $100 billion, five-year fund to aid Ukraine
+ Proposal still needs approval from the alliance’s 32 members
+ NATO also proposing to coordinate weapons aid to Kyiv
Estonia’s Kaja Kallas backs Mark Rutte for NATO top job: Politico reports the Dutch PM wins high-profile endorsement.
WSJ: Israel-Iran conflict threatens to spill into open warfare
Strike in Damascus is an escalation in Israel’s undeclared war with Iran: NYT reports Tehran promises major retaliation, and the danger of a miscalculation is ever-present. But neither side wants a major shooting war, given the stakes.
France’s war on woke, from the salons to the cinemas: Opposition to identity politics isn’t confined to the cultural right. Politico
US, UK announce partnership to safety test AI models: Time reports two AI safety testing bodies will develop a common approach to AI safety testing that involves using the same methods and underlying infrastructure, according to a news release. The bodies will look to exchange employees and share information with each other “in accordance with national laws and regulations, and contracts.” The release also stated that the institutes intend to perform a joint testing exercise on an AI model available to the public.
Prime Minister Rishi Sunak embarks on a post-Easter media blitz with one month to go until the local elections.
Conservatives set to lose half of contested seats: The national polls mean Tory losses are inevitable, but will Labour or Independents be the main beneficiaries? Rallings + Thrasher
Senegal's new president urges 'more solidarity' in Africa: Le Monde reports Bassirou Diomaye Faye, the country's youngest president was sworn in on Tuesday after sweeping to a first-round victory on a pledge of radical reform 10 days after he was released from prison.
Bloomberg: As drones change warfare in Africa, civilians pay the price
+ African militaries opt for combat drones, cheaper than jets
+ Popularity spiked after the Ukraine war, which demonstrated the use
‘Ignoramus.’ ‘Fascist.’ ‘Small-Penises Club.’ Latin diplomacy devolves into schoolyard taunts: Region’s presidents really really don’t like each other, judging from the vitriol flowing on social media. WSJ
Peru’s president threatened by Rolex watch scandal: FT reports Dina Boluarte reshuffles ministers in face of probe into illicit enrichment.
AFP: More than 50,000 people flee Haiti capital due to rampant gang violence
How to start winning the information war Joseph I. Lieberman + Gordon J. Humphrey
*** US Politics + Elections ***
The border feud will be a deciding factor on the 2024 ballot: How the surge in border crossings bolstered Trump, put Biden on the defensive, and exposed an outdated immigration system that no one likes. Bloomberg
The Trump machine: The former president’s dash for campaign cash: Although ahead in most of the polls, the Republican is at a huge financial disadvantage to Joe Biden. He now needs the party’s traditional donors. FT
Former Rep. Tulsi Gabbard (D-HI) told ABC News that she turned down Robert F. Kennedy, Jr,’s offer to be his running mate.
Johnson outlines plan for Ukraine aid; House could act within weeks: NYT reports the GOP speaker’s proposed conditions for sending a fresh infusion of military assistance to Kyiv are the strongest sign to date that he plans to defy critics in his own party and push through the aid package.
Half of senior staffers in Congress are so fed up that they may quit: WP reports Capitol Hill aides worry that lawmakers have increased their bombast so much that it makes it harder to do their jobs.
Pot producers climb as recreational cannabis to go on Florida ballot: Reuters reports US-listed shares of pot producers rise premarket on Tuesday after the Florida Supreme Court on Monday allowed voters to decide on the fate of recreational use of marijuana in the state through a referendum on the November ballot.
US manufacturing on the mend; rising raw material prices pose obstacle: Reuters reports US manufacturing grew for the first time in 1-1/2 years in March as production rebounded sharply and new orders increased, but employment at factories remained subdued amid "sizable layoff activity" and prices for inputs pushed higher.
Granholm eyes talks with Big Tech on AI power needs: Axios reports the Biden administration wants to "accelerate" its conversations with big technology companies on how to generate more electricity — including with nuclear power — to meet their massive demand for artificial intelligence computing.
Ro Khanna wants to be the future of the Democratic party: Khanna, a congressman who represents Silicon Valley, sees himself as a bridge between America’s faded industrial might and its digital future. The Atlantic
Liz Shuler wants AI to reinvigorate the labor movement: The head of one of America’s most storied labor organizations sees changing technology as a great risk — and great opportunity. Politico
Big Tech has a new favorite lobbyist: You: Millions of ordinary Americans have become unwitting foot soldiers in political influence campaigns by companies like Google and TikTok. WSJ
Why I believe in industrial policy — done right Marco Rubio
What's your number? Americans now say they need $1.5 million to retire.
*** Disruption + Innovation ***
The AI industry is steaming toward a legal iceberg: Legal scholars, lawmakers, and at least one Supreme Court justice agree that companies will be liable for the things their AIs say and do—and that the lawsuits are just beginning. Christopher Mims
An AI researcher takes on election deepfakes: Oren Etzioni was once an optimist about artificial intelligence. Now, his nonprofit, TrueMedia, is offering tools for fighting AI-manipulated content. NYT
Did OpenAI’s GPT-4 really pass the bar exam? The large language model’s claims of a top 10% score may have been relative to test-takers who had already failed the exam at least once, according to an MIT researcher. FC
OpenAI previews new audio tool that can read text, mimic voices: Bloomberg reports the startup has decided not to release the feature more broadly due to safety concerns.
OpenAI unveils AI technology that recreates human voices: NYT reports the start-up is sharing the technology, Voice Engine, with a small group of early testers as it tries to understand the potential dangers.
Amazon offers free credits for startups to use AI models, including Anthropic: Reuters reports Amazon Web Service (AWS) has expanded its free credits program for startups to cover the costs of using major AI models, the company told Reuters in an interview, as it looks to boost the market share of its AI platform Bedrock.
How an iPhone powered by Google’s Gemini AI might work: Supercharged Siri. AI image editing. Smart “snapshots” of your day. We asked some experts to forecast how Apple might use Google’s Gemini platform to enable new AI-powered applications in iOS. Wired
Perplexity will start selling ads, after saying it wouldn't follow that business model.
Walmart has built a generative AI chatbot for internal use that answers common HR questions, including “Do I have dental insurance?”
Abercrombie & Fitch has turned to generative AI to brainstorm ideas for clothing designs and to write blurbs for its website and app.
Ben & Jerry’s put cameras that use AI into the freezers at grocery stores to alert the company and its distributors when a location was running low on a particular ice cream flavor.
Microsoft faulted for ‘cascade’ of failures in Chinese hack: WP reports the independent Cyber Safety Review Board’s forthcoming report knocks the tech giant for shoddy cybersecurity practices, lax corporate culture and a deliberate lack of transparency.
Bloomberg: Hailo raises $120 million to design more efficient AI chips
4: According to the International Energy Agency, the electricity used by data centers, cryptocurrency, and artificial intelligence represented nearly 2% of global energy use in 2022. If current trends continue, that number could double to 4% by 2026.
Bloomberg: Commerce startup Flip raises $144 million to challenge TikTok
Elon Musk has a porn problem: In addition to really bad Tesla sales numbers, Elon, Inc. looks at the strange sexual content currently flooding the billionaire’s social network. Bloomberg
Brazil's Pix payments are killing cash. Are credit cards next? Reuters reports in just three years, Brazil's hugely popular Pix payment system has become the country's favorite way to pay, replacing cash and wire transfers in many cases and now threatening the dominance of credit cards in the booming e-commerce sector.
Mars Express has completed 25,000 Martian orbits.
Shell says landmark climate ruling obstructs fight against climate change: Reuters reports in a landmark ruling that shocked the energy sector, a lower Dutch court in 2021 ordered Shell to reduce its planet warming carbon emissions by 45% by 2030 from 2019 levels.
GE completes three-way split, breaking off from its storied past: Reuters reports General Electric on Tuesday completed its breakup into three companies, marking the end of an era for the industrial conglomerate pioneer that was once a symbol of American business power.
Will GE do better as three companies than as one? How to dismantle an industrial icon. Economist
WSJ: Tesla’s quarterly deliveries fall for first time since 2020
The big worry for carmakers: What if the EV slowdown is not a blip? Expansion of production is far outstripping demand, raising fears of a misallocation of capital. Peter Campbell
EV rise helps BYD overtake Geely to become China’s car king: The country’s rapid embrace of electric cars left Geely scrambling for second place. Bloomberg
European airlines cut back Asia routes as Gulf carriers offer cheaper flights: FT reports Lufthansa and Air France-KLM say they cannot compete with state-backed Middle East airlines that have lower costs.
*** Culture ***
The Nobel winner who liked to collaborate with his adversaries Cass Sunstein
Klaus Mäkelä, 28-year-old Finnish conductor, to lead Chicago Symphony: NYT reports he will be the youngest music director in the orchestra’s 133-year history, and one of the youngest ever to lead a top American ensemble.
Beyoncé’s ode to Levi’s is the best thing that could have happened to the jean maker: FC reports amid a transitional time for Levi Strauss & Co., a permanent shout-out from one of the greatest pop stars of all time is a best-of-all-possible-worlds scenario.
*** Sport ***
Caitlin Clark and Angel Reese got everyone watching. Better buckle up. Candace Buckner
Enjoy the ride + plan accordingly.
-Marc
ITK Daily | April 3
