ITK Daily | April 22
Military Spending, Opening Statements, Selfridges, A Tribe Called Quest, Nelly Korda, 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 ***
Global military spending soars to new record highs: DW reports the global defense budget saw its largest yearly increase in 14 years in 2023, according to the think tank SIPRI. Russia's war in Ukraine, the China-Taiwan crisis, and other global conflicts played a significant role.
US aid is lifeline for Ukraine’s struggle to hold off defeat: WSJ reports ammunition and arms will be rushed to Kyiv’s forces on the funding bill’s approval, potentially helping them stave off a Russian onslaught at the last possible moment.
Zelensky urges US to send weapons quickly ahead of Russian offensive: WP reports the Ukrainian leader praised the House of Representatives for passing a long-debated aid package and urged the Senate to act so weapons reach front-line forces ‘as soon as possible.’
Bloomberg: US aid gives Kyiv respite but battlefield shift remains far off
+ Aid is expected to reach front line in a matter of weeks
+ Six-month stalling of aid in Congress has strained Kyiv forces
Europe struggles to strengthen Ukraine's air defense system: Le Monde reports countries across Europe are reluctant to part with their most advanced defense systems. In Luxembourg on Monday, foreign ministers are due to try to step up their support.
Greece and Spain under pressure to provide Ukraine with air defence systems: FT reports EU leaders urge Athens and Madrid to donate shipment as Kyiv’s need is greater than theirs.
Finland long believed it could tame Russia. Now Moscow is enemy No. 1. WSJ reports from Russian military districts to cyberattacks, Finland is facing new threats from its neighbor. ‘The new normal in living with Russia.’
Russia could push Turkey into lasting political and military antagonism with the rest of NATO: Ankara continues to position itself halfway between Russia and NATO. However, adjustments could pacify and strengthen essential ties with the Western world. Marc Pierini
Turkey's Erdogan makes rare visit to Iraq: DW reports Recep Tayyip Erdogan last visited in 2011 and is now seeking cooperation in Turkey's fight against Kurdish militants, while Iraq looks to secure a greater share of water from the Euphrates and Tigris rivers.
AP: Iran’s supreme leader tacitly acknowledges that Tehran hit little in its attack on Israel
Israel planned bigger attack on Iran, but scaled it back to avoid war: NYT reports the strike on Iran on Friday was originally intended to be much broader in scope, but after intense pressure from allies, Israeli leaders agreed to ratchet it down.
AP: Israeli military intelligence chief resigns over his role in failing to prevent Oct. 7 attack
WP: Biden denounces antisemitism on college campuses amid Columbia protests
Bloomberg: TikTok vows legal battle as the US presses for app’s sale or ban
Bloomberg: Raimondo says Huawei’s chip breakthrough is years behind US tech
+ Huawei unveiled smartphone powered by homegrown chip
+ US urging its allies to heighten export controls on China
As Washington keeps China at arm’s length, California offers a giant panda hug: WSJ reports in a contentious election year, most US politicians are distancing themselves from China. But California’s are embracing it, including through panda diplomacy.
US, Philippines kick off combat drills amid China tension: DW reports the joint drills include simulations of US and Filipino troops recapturing islands as Manila and Beijing contest maritime territory in the South China Sea.
East Asia military spending up 6.2% as China tensions mount, report shows: Nikkei reports Japan marks biggest rise since 1972; data comes amid rush of regional talks, drills.
Xi Jinping tightens grip on China’s military with new information warfare unit: FT reports Beijing launches restructuring of armed forces as it challenges US dominance in Pacific.
The Maldives’ pro-China ruling party swept the country’s parliamentary elections: Preliminary results suggest that the People’s National Congress won 66 seats, enough to secure a super-majority in the 93-seat parliament.
Three suspected spies for China detained in Germany: WSJ reports the dismantling of an alleged military-technology spy cell underlines the limits of Berlin’s efforts to re-engage with Beijing to boost its stagnating economy.
+ Germany's Federal Prosecutor has said three German citizens were arrested for alleged involvement in providing Chinese secret service with information on state-of-the-art machine parts for ship engines.
A billion Indians are about to vote. Many think they already know the result. The world’s largest democracy began voting in an election that is widely expected to secure a third term for Prime Minister Narendra Modi and his ruling party. WSJ
Deepfakes of Bollywood stars spark worries of AI meddling in India election: Reuters reports in fake videos that have gone viral online, two of India's A-lister Bollywood actors are seen criticizing Prime Minister Narendra Modi and asking people to vote for the opposition Congress party in the country's ongoing general election.
Is South Korea’s economic miracle over? Decades of growth are tapering off as the country struggles to reform its model and reduce its dependence on manufacturing. FT
Billions in dirty money flies under the radar at world’s busiest airports: The Heathrow-to-Dubai flights have two big money-laundering features: One airport doesn’t scan outbound luggage for cash and the other welcomes sacks of it. WSJ
Starmer teams up with sports stars to promote patriotism and PE: The Times reports the Labour leader is due to tell his shadow cabinet that team games and national pride are a ‘force for good’ in England’s schools.
Liz Truss is coming for America Tanya Gold
The unlikely new bike lanes gracing the Scottish capital: Edinburgh’s new cycle tracks took a decade to install, but their mere existence shows that bicycle infrastructure can happen anywhere. Bloomberg
The far right wants to take over Europe, and she’s leading the way David Broder
How a massive hack of psychotherapy records revealed a nation’s secrets: Aleksanteri Kivimäki was a hacker wunderkind with a mean streak. Now he’s on trial for the largest crime in Finland’s history. Bloomberg
Europe is falling behind in generative AI, with the US light-years ahead. But the race is just getting started Fortune
Catastrophic repercussion of West retreat from the Sahel: The departure of American troops from Niger, demanded by the ruling military junta, confirms a major trend toward the eviction of Westerners, orchestrated by Russia, which is taking their place in the Sahel. Le Monde - Editorial
Reuters: Brazil's Bolsonaro rallies supporters in Rio
US seeks alliance with Abu Dhabi on artificial intelligence: Biden administration brokers talks between Microsoft, OpenAI, Google, and the UAE, as Washington seeks edge over China. FT
Terry Anderson, journalist held hostage for almost seven years, dies at 76: WP reports he became one of America’s longest-held hostages after he was snatched from a street in war-torn Beirut.
*** US Politics + Elections ***
Opening statements in Trump’s criminal trial to begin Monday: NYT reports prosecutors for the Manhattan district attorney’s office will go first, giving a preview of the evidence and seeking to persuade and charm the 12 jurors.
+ Former National Enquirer publisher David Pecker is set to testify first for the prosecution at Donald Trump’s Manhattan trial this week.
Politico: Prosecutors say Trump’s hush money was ‘election interference.’ Will jurors — and voters — believe it?
Trump’s trial is the reality show he never wanted: The former president faces weeks of challenging witnesses and tawdry stories. Timothy L. O'Brien
WP: How Trump has become angrier and more isolated on Truth Social
Joe Biden’s energy policies are fuelling Donald Trump’s campaign in Pennsylvania: A pause on new liquefied natural gas projects has angered the shale gas industry in a critical election swing state. FT
US Commerce chief goes prime time defending industrial policy: Bloomberg reports on Sunday, Raimondo was called a rising star in Democratic politics on a segment of the CBS News “60 Minutes” program, in which reporter Lesley Stahl asked how she justifies the pursuit of “social industrial policy” after it’s been shown that private enterprises allocate resources better than the government.
As Meta flees politics, campaigns rely on new tricks to reach voters: WP reports with waves of layoffs and policy shifts are forcing campaigns to change tactics, potentially transforming the 2024 election.
There’s no longer anything funny about DC’s humor dinners: As a speechwriter, I loved writing jokes for events where politicians were able to sit down together in an atmosphere of laughter and self-deprecation. But those days are gone. Politico
Spurred by teen girls, states move to ban deepfake nudes: Legislators in two dozen states are working on bills, or have passed laws, to combat AI-generated sexually explicit images of minors. NYT
United Auto Workers union achieves historic breakthrough: Le Monde reports employees at a Volkswagen plant in Tennessee have successfully voted to unionize, marking the first such instance in the southern states where non-American automakers have set up shop in large numbers. Mercedes, Toyota, and Hyundai sites may follow suit.
Chinese-Americans are pushing San Francisco toward the political center: WSJ reports many are turning against the left over issues like anti-Asian crime and education policy.
*** Disruption + Innovation ***
Buzzword of the week: ‘openwashing’: DealBook reports there’s a big debate in the tech world over whether artificial intelligence models should be “open source.” Elon Musk’s lawsuit against OpenAI and its chief executive, Sam Altman, centers on claims the company diverged from its mission of openness and has become a de facto unit of Microsoft. The Biden administration is investigating the risks and benefits of open source models.
+ While proponents of open source AI say it’s more equitable and safer, and detractors say transparency makes AI more likely to be abused, neither side agrees on what “open source” AI actually means.
Reid Hoffman, 'mystical atheist' and artificial intelligence guru: The LinkedIn co-founder calls on Europe to take a stronger stance in the AI race pitting the United States against China, and denounces Elon Musk's libertarian drift. Le Monde
Microsoft is set to host top executives from South Korea’s leading technology firms next month to strengthen its AI partnerships. The high-level meeting, dubbed the MS CEO Summit 2024, will be held on 14 May 2024 and feature Microsoft’s founder Bill Gates and Chairman and CEO Satya Nadella.
What is screen time doing to children? Demands grow to restrict young people’s access to phones and social media. Economist
Commodity traders bet on big data and AI: FT reports the sector pushes to harness latest tech tools as competition from hedge funds intensifies.
Fortune: There’s an early winner in the race to feed AI’s infrastructure demands: Private equity
Sam Altman invests in energy startup focused on AI data centers: WSJ reprts the OpenAI CEO is betting that a new twist on solar power and energy storage can handle the facilities’ ravenous appetite for electricity.
SoftBank to spend $960m to boost computing power for generative AI: Nikkei reports the Japanese telecom company hopes Nvidia chips help develop top models.
These 150-foot-high sails could help solve shipping’s climate problem: WP reports harnessing the power of wind could both reduce emissions from cargo ships and extend the life of these vessels.
Nike reverses course as innovation stalls and rivals gain ground: Shoe giant stumbled as CEO John Donahoe pulled away from retailers and relied on old hits. Now it says it’s refocusing on cutting-edge footwear for athletes. WSJ
Adidas found its next Samba. Watch out, Nike. The company is following its well-worn playbook. But it shouldn’t become over-reliant on one signature style. Andrea Felsted
Marketer behind the Stanley Cup frenzy returns to Crocs: Terence Reilly rejoins the company to run its homely Heydude brand of shoes after turning the Stanley water bottle into an improbable viral sensation. WSJ
Middle East and Chinese investors hover around Selfridges: Thailand’s Central Group is looking for ways to take greater control of the department store chain amid a financial meltdown engulfing its Austrian co-owner, Signa. The Times
He loves speed, hates bureaucracy, and told Ferrari: Go faster: A tech executive with a new management strategy took the wheel of the luxury carmaker. Then it was off to the races. WSJ
Bloomberg: Tesla’s price cuts trigger new round in China EV price war
+ Li Auto cuts prices across range, offers rebates to owners
+ Tesla’s China market share has shrunk as local rivals rise
Bloomberg: Tesla recalls almost 3,900 Cybertrucks to fix faulty pedals
+ Pedals can dislodge, cause truck to unintentionally accelerate
+ Recall gives first glimpse of how many pickups Tesla has sold
Fortune: Longtime Tesla bull hits panic button on robo-taxis vs. Model 2: ‘It would be a disaster of epic proportions’
Elon Musk’s robotaxi dreams plunge Tesla into chaos: The stock is sliding, a cheaper electric car is prioritized, and the CEO is riling the workforce with his biggest layoffs yet. Bloomberg
VinFast share plunge hits China's VW-backed battery partner Gotion: Nikkei reports the Vietnamese carmaker chief vows to work with China despite geopolitical friction.
Chinese flying taxi sector claims global lead thanks to regulatory support: FT reports Shanghai’s AutoFlight wins approval for unmanned aircraft in nascent market forecast to be worth $1.5tn a year by 2040.
China's flying cars ready for liftoff with EV technology: Nikkei reports XPeng, EHang and others leverage know-how in batteries.
New York Stock Exchange tests views on round-the-clock trading: FT reports the poll comes as US regulators review Steve Cohen-backed proposal for a 24/7 exchange.
Reversing the real-estate doom loop is possible. Just look at Detroit. Detroit’s business-district transformation offers lessons to other cities struggling to revive their empty downtowns. WSJ
*** Culture ***
They fled Venezuela — and transformed DC’s food delivery scene WP
Cher, Dave Matthews Band, and A Tribe Called Quest join Rock Hall of Fame: NYT reports Mary J. Blige and Ozzy Osbourne were also voted in, but Sinead O’Connor, who died last year at 56, did not make the cut.
Artists are all-in on vinyl. See how records are made in 2024. WP
*** Sport ***
AI is shaking up how sports like rugby, soccer, and cricket are played—and could mint big money for sports clubs Fortune
Premier League is envy of world – government must not put that at risk: Football Governance Bill could give the new regulator unprecedented power and reduce the appeal of our sport, in which the UK is a ‘superpower.’ The Times
Like a clown car with the brakes off – not even final may save Ten Hag: Winning the chaotic way – even against Man City in the FA Cup final in May – simply will not do for a man as methodical as Sir Jim Ratcliffe at Man United. The Times
Akebono was the first foreign-born grand champion of sumo: Economist the wrestler who shocked and changed Japan died in early April, aged 54.
The golfer who can’t stop winning: Nelly Korda is outdoing even a red-hot Scottie Scheffler with five consecutive wins on the LPGA Tour—including the season’s first major. WSJ
How Nike won the battle for Caitlin Clark: Some of the world’s biggest shoe brands made a run at the Iowa superstar. The swoosh prevailed by offering an Olympic-sized deal. WSJ
Enjoy the ride + plan accordingly.
-Marc
ITK Daily | April 22
