Caracal Daily | May 28
China, Democrats, xAI, Anora, Bill Walton, plus 1,000 more actionable insights.
Caracal Daily is geopolitical business news + intelligence for comms pros.
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Happy Monday.
Here’s today’s Caracal Daily:
*** Globalization + Geopolitics ***
FT: Israel faces wave of condemnation over strike on Rafah camp
World leaders ‘outraged’ by deadly Israeli strike on Rafah tent camp: WP reports at least 45 people were killed, the Gaza Health Ministry said. The IDF said two Hamas officials were killed, and the incident was under investigation.
Israel, Egypt try to keep Gaza war from escalating: WSJ reports an Israeli airstrike in Rafah killed 35 civilians, Palestinian authorities said, and a cross-border clash left an Egyptian officer dead.
Nikkei: North Korea fails in attempt to launch spy satellite
Nikkei: China launches $47bn chip fund to counter US restrictions
Bloomberg: China creates $47.5 billion chip fund to back Nation’s firms
+ State-owned banks, firms among major shareholders of the fund
+ China tries to buy tech breakthroughs with heavy investment
Reuters: China's premier hails 'new beginning' with US-allied South Korea, Japan
China hails ‘new beginning’ at summit with Japan and South Korea: FT reports Beijing, Seoul, and Tokyo agree to revive talks on free trade deal.
China, Japan, and South Korea hold regional summit overshadowed by US: In the first trilateral meeting since 2019, the neighbors sought common ground in trade and cultural exchange while tiptoeing around thorny security issues. NYT
+ The leaders of Japan, China and South Korea have adopted a joint declaration that includes their pledge to continue positive efforts for the political settlement of the Korean Peninsula issue.
China courts US’ top Asian allies on trade, but will it succeed? Despite Beijing's calls to avoid protectionism, the three countries didn’t reach any concrete initiatives. WSJ
Taiwan president calls on US lawmakers for help to strengthen defences: FT reports request follows Chinese military exercises days after new leader’s inauguration.
US lawmakers ignore China’s warning, meet with Taiwan’s new leader: WP reports the meeting by a bipartisan delegation from Washington occurred as China heightens demands for the United States to back away from support for the island democracy.
Leading Asia in an age of tension: Premiers urged to skirt US-China duel: Anwar, Srettha, Mahathir weigh in on Myanmar, Taiwan, and more at Future of Asia forum. Nikkei
Reuters: Papua New Guinea landslide buried more than 2,000 people, government says
Papua New Guinea struggles to find the estimated 670 killed in landslide: WP reports the International Organization for Migration said emergency responders have little hope of finding survivors after Friday’s disaster.
Is America giving Narendra Modi an easy ride? The West is struggling to balance interests and values in India. Economist
Rishi Sunak’s election call makes no sense, but is good news: Whether an act of political genius or lunacy, Britons should welcome it. Economist
UK Conservatives want mandatory national service. Gen Z is ready with the memes. WP reports: “If you can fix your parents’ iPad, then you can fix an Apache helicopter,” said one TikTok.
Rishi Sunak: I won’t leave UK if I lose election: The Times reports the prime minister denied claims by Lord Goldsmith that he would leave for California, promising to stay as an MP until the end of the next parliament.
Bloomberg: Starmer and Sunak trade jibes as rivals zone in on target voters
+ UK Labour leader says party can be trusted on economy, defense
+ Sunak’s Tories face squeeze from Reform UK, Liberal Democrats
Labour wins backing of 120 business leaders: The Times reports in a boost to Sir Keir Starmer as executives call for change after a decade of economic ‘stagnation.’
Bidenism is gasping in America. It’s having a moment in Britain. Britain’s Labour Party has drawn some inspiration from Biden’s 2020 presidential campaign. They should be careful not to take that too far. Politico
Le Pen to Meloni: Let’s team up and form EU Parliament’s No. 2 group: Politico reports the far right is projected to perform well in next week’s EU election, but is politically fragmented.
Macron calls the rise of far-right parties an 'ill wind' for Europe: AFP reports France’s President Emmanuel Macron on Monday raised the alarm over the “ill wind” of the rise of the far right in European politics, during a state visit to Germany ahead of key EU elections.
Macron makes case for European unity in Dresden speech: DW reports Emmanuel Macron earlier visited the Holocaust memorial in Berlin, where he paid his respects to the 6 million Jews murdered by the Nazis. Macron also bestowed honors on two prominent Nazi hunters.
Bloomberg: France’s Macron renews calls to ‘buy European’ on Germany visit
+ French president gives speech in Dresden during three-day trip
+ Macron calls for a doubling of European public investment
We must strengthen European sovereignty: The EU needs more single market, innovation and investment to secure a common future. Emmanuel Macron + Olaf Scholz
Poland presents plan to fortify border to Russia, Belarus: DW reports defense officials in Poland have shared details on a plan to strengthen the country's eastern border. The movement of Russian diplomats in Poland will also be restricted due to accusations of spying and nefarious acts.
Spain pledged €1bn ($1.1bn) in military aid to Ukraine.
Russia is flooding Europe with disinformation. The US elections are next. With European parliamentary elections coming in June, Moscow has jumped into action. Lee Hockstader
Russia challenges America's dominance in space: Le Monde reports the war in Ukraine has rekindled competition between the two space powers, with Moscow's hostile actions multiplying in recent months.
Guyana’s president welcomes Chevron’s bid to buy into $150bn oil project: FT reports the US company faces tight shareholder vote on whether its takeover offer for consortium partner Hess will be approved.
Brazil has overtaken Belgium as the largest export market for Chinese new energy vehicles, industry data showed, as Chinese carmakers increase sales to non-European markets amid European Union's anti-subsidy probe into Chinese electric vehicles.
Brazilcore: The 'high art' of favela fashion: DW reports the Brazilian flag served as an emblem of Jair Bolsonaro's far-right populist politics. But now designers like Abacaxi are reclaiming it for all Brazilians and celebrating the style of the favelas at the same time.
Argentina's Milei US-bound to meet tech bosses: AFP reports Argentine President Javier Milei heads for the United States Monday for the fourth time since taking office in December, meeting tech giants as he seeks to "reposition" his economically troubled country, the government said.
Jet-setting Argentine President Javier Milei courts top US tech CEOs: FT reports Apple and OpenAI chiefs join those meeting libertarian leader but instability has deterred investment.
Claudia Sheinbaum is likely to be Mexico’s next president. Who is she? During the campaign, Claudia Sheinbaum has tethered herself to the policies of her popular mentor, President Andrés Manuel López Obrador. How would her presidency differ from his? WP
Mexico’s next president can reset relations with the United States: She will have much work to do on drug-trafficking, security, migration, and trade. Economist
If you think Biden has troubles, just look at Trudeau: The Canadian prime minister's grim poll numbers stoke speculation about his future. Politico
America is getting ready for space warfare: Pentagon officials are opening up about potential threats as China’s presence in orbit grows and Russia shows interest in gear that can destroy satellites. WSJ
Biden doesn’t want you buying an EV from China. Here’s why. The president wants to shift America’s car fleet toward electric vehicles, but not at the expense of American jobs or national security. NYT
America breaks global rules as it defends the free world: Washington should dial down its claim to be protecting an international order that is clearly in decline. Gideon Rachman
*** US Politics + Elections ***
Chase Oliver nominated as Libertarian presidential candidate: WP reports the nomination came after seven rounds of voting over a long, contentious day as factions of the party feuded over the process and party leadership positions.
Anxious Democrats want Biden to show more empathy on the economy: The president often touts strong jobs numbers, even as voters care far more about inflation. WSJ
52%: The proportion of America’s net worth owned by baby boomers, who make up only 20% of the population.
Commerce-backed deal with Emirati AI giant sets off alarm bells in Congress: Politico reports some lawmakers fear an unusual deal to wrest an Emirati tech champion away from Beijing could instead leak cutting-edge AI technology to China.
*** Disruption + Innovation ***
AI is driving ‘the next industrial revolution.’ Wall Street is cashing in. Far beyond the tech sector, investors are finding winners in old-school pick-and-shovel stocks. WSJ
OpenAI's Johansson gaffe pushes voice cloning into spotlight: OpenAI was forced to apologize to actor Scarlett Johansson last week for using her voice –- or something very similar –- on its latest chatbot, throwing the spotlight on to voice-cloning tech. AFP
WSJ: Elon Musk’s xAI raises $6 billion in latest fundraising round
Reuters: Elon Musk's xAI valued at $24 bln after fresh funding
Amazon in talks with Italy to invest billions of euros in cloud plan, sources say: Reuters reports AWS is in talks with Italy to invest billions of euros in the expansion of its data centre business in the country as part of the tech giant's effort to boost its cloud offer in Europe, four people familiar with the matter said.
The media bosses fighting back against AI — and the ones cutting deals: As OpenAI and other tech firms make advances, the media industry is split between pushing back and making deals. WP
AI firms mustn’t govern themselves, say ex-members of OpenAI’s board: For humanity’s sake, regulation is needed to tame market forces, argue Helen Toner and Tasha McCauley. Economist
The Benetton family is readying plans to address mounting losses at its eponymous clothing retailer, including parting ways with CEO Massimo Renon after four years, two people close to the group said on Monday.
*** Culture ***
‘Anora’ wins Palme d’Or award at Cannes — and more festival highlights: An American film director was the toast of the French film festival, while “All We Imagine as Light” and “Emilia Peréz” also nabbed prizes. WP
*** Sport ***
RIP: Bill Walton
Shine on, ride on Bill Walton: A basketball legend dies at age 71—leaving behind a legacy as a beloved cyclist, too. Jason Gay
WP: In possible farewell, Rafael Nadal loses in French Open’s first round
AI will transform sports betting. It will also increase the risks. Artificial intelligence is set to revolutionize wagering. Problem gambling will rise, too. WSJ - Editorial
My first Monaco trip showed me it must stay on calendar – but race needs change: Lack of overtaking opportunities has led to criticism but the narrow, twisting circuit and its swanky backdrop are simply too unique to lose — it is F1’s crown jewel. Molly Hudson
Spanish court orders FIFA, UEFA to halt opposition to Super League: Reuters reports a Spanish judge orders soccer ruling bodies FIFA and UEFA to halt their opposition to a parallel European competition known as the European Super League.
How football reached breaking point: ‘This workload is not sustainable’ The Athletic
Five of the best books on climbing mountains: The books and a documentary that capture the pull of the peaks. Economist
The NCAA has a $15 billion problem. Private equity can help. It isn’t a risk-free option, but it will assist the organization in paying the past, current, and future athletes it owes a lot of money to now. Adam Minter
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
