Caracal Daily | May 29
Ukraine, Freakout, Mistral AI, The American Worker, Carlo Ancelotti, plus 1,000 more actionable insights.
Caracal Daily is geopolitical business news + intelligence for comms pros.
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Happy Tuesday.
Here’s today’s Caracal Daily:
*** Globalization + Geopolitics ***
Macron permits Ukraine to use French missiles to strike inside Russia: WSJ reports the French leader said Ukrainian forces could only use French Scalp missiles to target military sites within Russia that fire on Ukraine.
Macron: Ukraine should be allowed to 'neutralize' Russian military bases: Le Monde reports on a state visit to Germany, the French president stressed that 'we should not allow them to touch other targets in Russia, and obviously civilian capacities.'
WP: Georgia passes Russian-style ‘foreign agent’ law in victory for Moscow
Georgian parliament overrides presidential veto of the divisive 'foreign influence' bill: Le Monde reports the legislature, controlled by the ruling Georgian Dream party, dismissed President Salome Zourabichvili's veto of the legislation that she and other critics say will restrict media freedom and obstruct Georgia's chances of joining the EU.
Netherlands’ hard-right coalition chooses former spy chief as PM: WP reports for the Netherlands, a new government will mark the end of Mark Rutte’s long tenure as prime minister and a sharp shift to the right.
Germany poised for stagnation with ageing population, warns IMF: The Times reports the International Monetary Fund says the eurozone’s largest economy faces a slowdown in growth due to its baby boomers retiring and immigration subsiding.
The Tories’ disastrous misunderstanding of America: On trade, the right of British politics couldn’t see that the US is a foreign land. Janan Ganesh
London moves to revive its reputation as a financial hub: As fears have grown that the city is losing its attractiveness for publicly traded businesses, Britain’s government is making changes to bring them back. NYT
A tiny Mediterranean island wants a piece of the global AI frenzy: Malta is betting artificial intelligence can solve many of its biggest societal challenges and, perhaps, finally establish the island as a tech hub. Bloomberg
Inside India’s election: How Modi has turned the digital state to his advantage: Rivals have cried foul as the prime minister’s party uses vast amounts of data to gain a critical edge. The Times
Taiwan opposition passes contentious bill to empower legislature: Nikkei reports Taiwan's opposition parties on Tuesday forced through a contentious bill to enhance the powers of the legislature, setting the stage for a high-stakes confrontation with President Lai Ching-te's government, protesters and potentially the courts.
+ Constitutional crisis looms as KMT and TPP draw rebuke from lawyers
NHK: Hong Kong arrests 6 over Facebook posts on Tiananmen Square vigils
Xi Jinping calls for quality jobs for youth instead of ‘bitterness’: FT reports the Chinese president prioritises employment creation a year after he told the young to toughen up and embrace hardship.
Is China building a strategic foothold in Cambodia? DW reports joint military drills this month suggest the ties between China and Cambodia are growing stronger. Experts argue Beijing will use Cambodia as a conduit to further its strategic interests in the South China Sea.
How China uses Russia as a wrecking ball: China stands back, as Russia threatens to paralyse the UN Security Council. Economist
Japanese businesses are trapped between America and China: Could geopolitics kill off an incipient corporate revival? Economist
The dark side of Paul Kagame, the Rwandan autocrat who fascinates the West: 'Rwanda Classified.' The president has transformed a country battered by the 1994 genocide. But at what price? Amid repression, surveillance and influence, Rwandans will be voting on July 15 in a presidential election that is a foregone conclusion, with opponents sidelined. Le Monde
Why this is South Africa’s most important election since 1994: It may force the country’s indecisive leader to make a fateful choice. Economist
Could US-Saudi 'mega deal' spark Middle East nuclear race? One part of a predicted, closer US-Saudi relationship is particularly controversial. Experts fear Saudi Arabia may use a civilian nuclear energy program, which the US will help with, to develop their own atomic bombs. DW
The mounting strains on global shipping: Pirate attacks, Middle East instability and drought are causing disruption and congestion at the world’s ports. FT
*** US Politics + Elections ***
WP: DNC prepares to nominate Biden via ‘virtual roll call’ before convention
Bloomberg: Democrats will nominate Biden virtually so he can get on Ohio’s ballot
Dems in full-blown ‘freakout’ over Biden: One adviser to major Democratic donors keeps a running list of reasons Biden could lose. Politico
Joe Biden: Rebuilder of the US economy or dangerous spendthrift? With his social, protectionist and reindustrialization measures, the Democratic president has shaken up the American economy. Arnaud Leparmentier
Marco Rubio wants to be Trump’s vice president. He doesn’t want to audition. NYT reports the last time the Florida senator lived in Donald J. Trump’s orbit he was mocked and defeated. As he returns, he’s trying to do it on his terms.
Skyrocketing rents and home prices may be pivotal in the presidential election: WP reports rising housing costs hold implications for this year’s presidential election, especially in battleground states where rents and home prices are skyrocketing.
Debunking misinformation failed. Welcome to ‘pre-bunking’: Election officials around the world are adopting “prebunking” campaigns, as AI and other threats jeopardize voting. WP
Big Oil and the Chamber plan to defend Biden’s climate law from Trump: Politico reports the US Chamber of Commerce and the American Petroleum Institute have said they’d go to bat for the Inflation Reduction Act. Or at least the provisions they like.
Washington pushes for new AI rules protecting artists as Hollywood backlash mounts: Yahoo reports Senators are pushing to introduce a bill as early as June that would set rules governing the use of artificial intelligence in the music and movie industries, an effort that coincides with new AI tensions roiling Hollywood.
+ The NO FAKES Act — which stands for Nurture Originals, Foster Art, and Keep Entertainment Safe — is a bipartisan proposal that would stop individuals or companies from using AI to produce an unauthorized digital replica of their likeness or their voice.
Harvard University announced it will no longer weigh in on public matters that don’t impact the Ivy League school’s core function, a shift that follows a historic period of turmoil at the storied university.
*** Disruption + Innovation ***
Hyatt doubles down on Japan with line of luxury ryokans: The US hotel giant and partner Kiraku are creating a brand of small, rarefied and traditional Japanese inns adapted for the international traveler. Bloomberg
The cult of Costco: How one of America’s biggest retailers methodically turns casual shoppers into fanatics Fortune
Target’s chief food, essentials, and beauty officer says pace of trends is getting faster: The Minneapolis-based retailer plans to introduce up to 2,000 new food and beverage items this year. FC
$6.6bn: The amount of money that Americans spent on deodorant in 2023, more than any other rich country.
Hollywood had the worst Memorial Day weekend box office performance in decades.
Thai gas station chain PTG focuses on cafes amid EV shift: Nikkei reports major Thai gas station operator PTG Energy is retooling operations with the anticipated spread of electric vehicles, increasing coffee shops under its umbrella fivefold over the next three years and boosting the ratio of non-oil businesses in gross profit to 50%.
Toyota said it will continue research and development of gasoline-powered engines despite the gradual shift of the global auto market to electric vehicles.
South Korea finds high levels of toxic chemicals in Shein products: TST reports children’s products sold by Chinese-founded online shopping giant Shein contained toxic substances in amounts hundreds of times above acceptable levels, the government of South Korea’s capital Seoul said on May 28.
WSJ: Hess shareholders approve $53 billion Chevron merger
WSJ: T-Mobile to buy most of US Cellular in $4.4 billion deal
What happened to our ad-free TV? Ads are here, there — almost everywhere — on streaming services now. NYT
Nvidia surges for a third day, adding some $470 billion to its market cap.
SoftBank plans to invest $9 billion per year into artificial intelligence.
Bloomberg: Ex-OpenAI director says board learned of ChatGPT launch on Twitter
+ Helen Toner spoke about Sam Altman’s firing in a new podcast
+ Toner has called for more regulation around AI safety
Jan Leike, the former co-head of an OpenAI safety team focused on long-term risks, is joining its artificial intelligence rival Anthropic, Leike said in a post on X Tuesday.
OpenAI forms new committee to evaluate safety, security: WSJ reports the move comes after the ChatGPT creator was involved in a legal standoff with Scarlett Johansson over the release of a new female voice assistant.
Bloomberg: OpenAI creates oversight board featuring Sam Altman after dissolving safety team
+ Committee with directors, execs has 90 days to report to board
+ Move follows team exits, criticism from former board members
OpenAI begins training next AI model as it battles safety concerns: Executive appears to backtrack on start-up’s vision of building ‘superintelligence’ after exits from ‘superalignment’ team. FT
OpenAI starts training a new AI model while forming a safety committee: Amid turmoil, the company also announced it is forming a new committee to evaluate the safety and security of its artificial intelligence products. WP
Mistral AI, France’s startup darling, takes aim at the US market: The company’s first US manager says businesses are looking for alternatives to Big Tech. Bloomberg
Reuters: Klarna using GenAI to cut marketing costs by $10 mln annually
AI washing is real. This is how to see through deceptive claims: Similar to greenwashing—false marketing around a product or practice’s environmental benefits—AI washing has solutions that aren’t trustworthy to capitalize on the imperative need for adoption. FC
Top FTX executive sentenced to 7½ years in prison: NYT reports Ryan Salame, the head of FTX’s subsidiary in the Bahamas, was the first of Sam Bankman-Fried’s deputies to be sentenced since the crypto exchange collapsed in November 2022.
*** Culture ***
A New York-style High Line is coming to Tokyo: A post-war mentality that prioritized cars in urban planning is making way for more pedestrian-friendly thinking in Japan’s capital. Bloomberg
The loneliness of the American worker: More meetings and faceless chats. Fewer work friends. How the modern workday is fueling an epidemic of isolation. WSJ
‘Atlas’ review: AI shrugged: Jennifer Lopez stars in a sci-fi action thriller that wonders whether artificial intelligence is really all that bad. NYT
*** Sport ***
Carlo Ancelotti: Secrets of Champions League’s mastermind coach: Real Madrid’s unflappable Italian manager reveals lessons from Zinédine Zidane, his humble roots and how he survives in modern football without a clear style. The Times
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
Caracal Daily | May 29
