Caracal Daily | May 3
Emmanuel Macron, Veeps, Paramount, Snoafer, NBA, plus 1,000 more actionable insights.
Caracal Daily is geopolitical business news + intelligence for comms pros.
Always Be Communicating.
Happy Friday.
Here’s today’s Caracal Daily:
*** Globalization + Geopolitics ***
WP: Biden calls ally Japan ‘xenophobic’ like China, Russia, at campaign event
+ President Biden said the two countries, along with Russia and China, “don’t want immigrants.” A spokesman said he was not trying to insult other nations.
Japan’s Kishida unveils a framework for global regulation of generative AI AP
+ “Generative AI has the potential to be a vital tool to further enrich the world.” But “we must also confront the dark side of AI, such as the risk of disinformation.”
Japan eyes high-level talks on US nuclear umbrella: defense minister: Nikkei reports the new framework would elevate discussion on American extended deterrence.
US Navy to identify which Indo-Pacific shipyards it can use in wartime: Nikkei reports up to six repair availabilities requested in countries like Japan, South Korea, and India.
What TikTok and Tesla tell us about pragmatism in the US and China: Both Washington and Beijing juggle security fears with commercial interests and political influence in their policy positions. John Thornhill
The exodus of China’s wealthy to Japan: Frustrations with Beijing’s autocratic political system and the economic slowdown have driven some people to leave China and settle in Japan. WSJ
WP: China to launch world-first mission to retrieve samples from far side of moon
WP: US officials wary of Chinese plans for floating nuclear plants
US official urges China, Russia to declare only humans, not AI, control nuclear weapons: State Department arms control official Paul Dean told an online briefing that Washington had made a "clear and strong commitment" that humans had total control over nuclear weapons, adding that France and Britain had done the same. Reuters
Russia has also become a lot more important to China: Image of dependence on Beijing overlooks role of geoeconomic strategy. Philipp Ivanov
Gazprom plunges to worst loss in decades as sales to Europe collapse: FT reports the energy giant suffers fallout from Ukraine war as Europe weans itself off Russian supplies.
Russia’s gas business will never recover from the war in Ukraine: Hopes of a Chinese rescue look increasingly vain. Economist
US accuses Russia of using chemical weapons in Ukraine: WP reports the State Department said Russia had used chloropicrin, a poison gas widely used during World War I, against Ukrainian forces, an act that would violate a global ban signed by Moscow.
How Ukraine broke Russia’s grip in the Black Sea: Attacks on Moscow’s warships have helped to establish an export corridor that could boost Kyiv’s war effort. FT
As Ukraine loses ground, Baltic countries ask: Are we next? Estonia’s border city of Narva, singled out by Putin as historically Russian land, is among potential targets for destabilization. WSJ
WP: Macron says Europe should prepare to defend Ukraine with troops
A region in mortal danger: Emmanuel Macron’s urgent message for Europe: The French president issues a dark and prophetic warning. Economist
Italy’s far-right leader Matteo Salvini fights for political survival: League head called ‘an egoist’ as party activists revolt and defect ahead of EU elections. FT
Births in Germany fall to lowest for a decade: FT reports declining rate will put downward pressure on labour force and economic growth, experts warn.
John Swinney, a Scottish National Party veteran, announced his intention to run in an upcoming party leadership contest, the winner of which will become Scotland’s first minister.
The wider lessons of Scotland’s political turmoil: Humza Yousaf’s resignation is the latest in a string of setbacks. Economist
Can investment from TSMC, Infineon, and others revive Europe's chip dreams? Skeptics say more government subsidies, skilled workers and end customers are needed. Nikkei
Bloomberg: Turkey confirms all trade halt with Israel over war in Gaza
+ Move expands earlier restriction on exports to Israel
+ Trade between the two countries was worth $6.8 billion in 2023
WP: Hamas says it will send delegation to Cairo to continue cease-fire talks
Reuters: Gaza needs minimum 16 years to rebuild lost homes, UN says
Fortune: How the oil earnings of Saudi Aramco, the world’s most profitable company, are helping the Saudi monarchy shake up the global economic order
How South Africa has changed 30 years after apartheid: Poverty is rife and inequality still starkly racial. Economist
*** US Politics + Elections ***
Inside RFK Jr.’s chaotic White House bid: Aides describe a cultlike environment in which dysfunction reigns and top aides focus on elevating their own profiles. WSJ
WP: Biden calls for peace following protests, arrests on US campuses
+“There’s the right to protest, but not the right to cause chaos”
After Ukraine funding win, Biden shifts his messaging strategy: Politico reports foreign policy hands want the administration to keep pressing the case for supporting Ukraine. But election considerations are creeping in, fast.
Joe Biden is practising some Clintonian politics: But he needs to do more than crack down on “junk fees” to woo swing voters. Economist
WP: Biden, Democrats push hard to put North Carolina in play
Trump keeps warning us about his second term. Are you listening? In a wide-ranging interview with Time, the former president shared his plans to reshape the country if he’s elected this fall. Eugene Robinson
Bloomberg: Trump auditions VP picks before wealthy donors in Palm Beach
+ Vance, Rubio, Burgum, and Scott among leading contenders
+ Trump says he will likely announce running mate in July
Judge grills US and Google on antitrust claims: WP reports Judge Amit Mehta tried poking holes in the closing arguments of a landmark monopoly case as he weighed a ruling that could reshape tech.
Meet the woman who showed President Biden ChatGPT—and helped set the course for AI: Arati Prabhakar has the ear of the US president and a massive mission: help manage AI, revive the semiconductor industry, and pull off a cancer moonshot. Wired
‘Splintered’ AI regulations could harm pursuit of advancements, understanding of where the guardrails lie Fortune
Spot the deepfake: The AI tools undermining our own eyes and ears: Affordable and accessible generative AI tools have led to a rise in false video, images, and audio on social media. Can you spot the difference? Politico
The dos and don’ts of campaigning with AI WP
*** Disruption + Innovation ***
Fortune: AI boom still running hot as SK Hynix says its already sold majority of its 2025 allotment of high-bandwidth memory chips
CoreWeave, an Nvidia-backed AI cloud-computing start-up, nearly tripled its valuation to $19 billion in a new fund-raising round.
Qualcomm jumps as AI sparks rebound in Chinese smartphone market: Reuters reports Qualcomm shares rose 4% in premarket trading on Thursday after the smartphone-focused chipmaker signaled an AI-fueled rebound in demand, especially in China, after a two-year slump.
Apple sales fall on sluggish iPhone, China businesses: WSJ reports Apple revenue fell 4%, the fifth decline in six quarters, amid new competition from phone rivals in China. It authorized $110 billion in share buybacks and forecast a return to revenue growth this quarter.
WP: Apple at a crossroads: Quarterly profit falls slightly, but Cook is ‘bullish’ about generative AI
Apple is behind in AI and killed its self-driving car project. What’s next? Quarterly profit fell slightly at Apple, but CEO Tim Cook said the company is “bullish” about generative AI. WP
+ @spectatorindex: BREAKING: Apple announces $110 billion share buyback, the biggest in history.
Microsoft, Google, and Meta bet on fake data to build AI models: Bloomberg reports top artificial intelligence companies are experimenting with a different approach to meet their insatiable need for data.
The AI-generated population is here, and they’re ready to work: AI that can predict how specific humans will look, act and feel could do the jobs of fashion models, focus group members and clinical trial participants. WSJ
AI-voiced audiobooks top 40,000 titles on Audible: Bloomberg reports while authors appreciate the new revenue stream, audiobook listeners are complaining about the influx of new material.
Will GM regret kicking Apple CarPlay off the dashboard? The uneasy relationship between Detroit and Cupertino is on display in a flawed rollout of GM’s new software. Bloomberg
WP: UnitedHealth CEO apologizes for hack that ‘could cover a substantial portion’ of Americans
Tech - Ones to watch: These are the startup founders, Big Tech managers, low-key investors—and even a bureaucrat— who could play a bigger role than you realize in shaping tech’s future. Bloomberg
Peloton CEO Barry McCarthy has stepped down, the company said on Thursday as it decided to cut 15% of its workforce to tackle a post-pandemic slump in demand for its connected fitness equipment.
Sony, Apollo make $26 billion all-cash bid for Paramount: WSJ reports Sony Pictures and Apollo Global Management have submitted an all-cash $26 billion offer for Paramount Global, marking the second time the private-equity firm has come in with a bid for the entertainment giant.
Fortune: Celebrity members club Soho House has lost money for nearly 30 years. Now its CEO is under mounting pressure to turn $22 cocktails into profits
*** Culture ***
It’s not a sneaker. It’s not a loafer. It’s a ‘snoafer.’ WSJ reports New Balance’s 1906L isn’t coming out until August, but it’s already been memed into oblivion.
These new managerial cities are the true winners of remote work, and more! WP
*** Sport ***
Bloomberg: NBA targets $76 billion windfall in Nnew TV rights deal
Vintage performance: What’s behind NBA stars’ wine obsession? LeBron James and JJ Redick’s podcast contains in-depth basketball analysis – and plenty of oenophilia. They’re not the only ones around the league. Guardian
WP: RFK Stadium officially set to be demolished
The Times: Hamilton: I’d love Newey to join me at fast-improving Ferrari
Enjoy the ride + plan accordingly.
-Marc
Caracal Daily | May 3
