Caracal Daily | June 18

Caracal Daily | June 18

Project Fear, Silicon Valley, McDonald’s, Lorne Michaels, USA Swimming, plus 1,000 more actionable insights.


Caracal Daily is geopolitical business news + intelligence for comms pros.

Geopolitics is disrupting every business and industry. Caracal is here to help.

Always Be Communicating.


Happy Tuesday.

Here’s today’s Caracal Daily:

*** Globalization + Geopolitics ***

Diplomacy: A weakened G7: More than 50 years after its creation, the club no longer reflects the global balance of power. The mid-June meeting in Italy assembled a weakened group of national leaders, with the exception of Italian Prime Minister Giorgia Meloni. Le Monde - Editorial

Scotland’s independence warriors could be the UK election’s biggest losers: Model suggests the once-dominant Scottish National Party could lose 64.6 percent of the total seats it won in 2019 — an even higher share than the dire night projected for the Conservatives. Politico

Betrayal on Britain’s south coast: Politico reports voters say they feel let down by Conservatives on immigration, public services and the supposed benefits of Brexit.

Generation X: The middle-aged voters politics forgot: Why are the Conservatives heading for electoral disaster? They obsessed over boomers and millennials and neglected us 45 to 58-year-olds, says Professor Bobby Duffy. The Times

The Times: Vote for Reform risks ‘generation under labour’, warns Sunak

Tory election ads are all attack, no Rishi Sunak: Politico reports the Tory digital campaigners have decided offense is the best form of defense as they continue to languish in the polls.

Go for Keir Starmer’s jugular to rescue campaign, Rishi Sunak urged: The Times reports ministers want PM to go on the offensive on three fronts — Starmer’s support for Corbyn, backing for a second EU referendum and career as a human rights lawyer

Project Fear Keir: Rishi Sunak’s last roll of the dice: The Conservatives are raising the spectre of a Labour ‘supermajority’. But is David Cameron a help or a hindrance? The Times

Bloomberg: AI could transform UK’s public finances as Labour touts gains

+ Think tanks say AI could help inefficient public services

+ Labour says UK well-positioned to benefit from the technology


More than 20 countries will meet NATO spending targets, Stoltenberg says: Politico reports the announcement comes as Republicans accuse European members of not paying their fair share into the alliance.

Russia's military presence in Sudan boosts Africa strategy: Sudan and Russia have reportedly agreed to establish a Russian navy base near Port Sudan, on the Red Sea. The West does not appear to have a response to this move. DW

The Russian spies next door: Posing as Argentine immigrants in Slovenia, the quiet married couple were in fact part of Putin’s aggressive effort to seed the West with ‘illegal’ intelligence operatives, say authorities. WSJ

Russia to hold espionage trial of US reporter Gershkovich behind closed doors: Politico reports the journalist has been detained in Russia for more than a year on charges of spying for the CIA.

Reuters: Russia in contact with US over possible Gershkovich swap, Kremlin says

Bloomberg: Russia leads adversaries looking to sway 2024 election, US warns

+ Malign operatives focus on generative artificial intelligence

+ China is taking a more cautious approach, officials say


P​utin is to visit North Korea, a sign of deepening military ties: NYT reports needing munitions to fight in Ukraine, the Russian president plans to return to North Korea this week for the first time in nearly a quarter-century.

Russia's Vladimir Putin to visit North Korea and Vietnam: Nikkei reports the president's trip to start on Tuesday and finish on Thursday.

Chinese Premier Li Qiang says ties with Australia are back on track: Nikkei reports the meeting with Prime Minister Albanese in Canberra comes as economic ties warm.

Between a rock and a hard place in the South China Sea: A remote outpost of the Philippines in the South China Sea is on the front line of potential geopolitical conflict. Timothy McLaughlin

China’s housing market woes deepen despite stimulus: WSJ reports home prices declined at a faster pace in May in major cities, while other data show a mixed picture for the world’s second-largest economy.

Netanyahu disbands his inner war cabinet: Reuters reports Israeli Prime Minister Benjamin Netanyahu has dissolved the six-member war cabinet, an Israeli official said on Monday, in a widely expected move that came after the departure from government of the centrist former general Benny Gantz.

Politico: Israel-Hezbollah war ‘more likely’ as tensions flare

Houthis use sea drones to attack vessels as US aims to secure Red Sea: WSJ reports analysts say it appears to be the first time the group has successfully used such a device.

Is the unthinkable about to happen in France? Benjamin Hart

Jean-Luc Mélenchon: The French left’s divisive standard-bearer: Leader has purged senior colleagues even as leftwing parties try to build a united front for parliamentary elections. FT

Macron, who triggered this dissolution to trap the parties, has trapped himself: By accelerating the political realignment, the dissolution of the Assemblée Nationale is also bringing back the right-left divide Emmanuel Macron had sought to erase. Solenn de Royer

From France to America, the far right is on the march: Attitudes to democracy and the rule of law will define the distinctions in politics. Gideon Rachman

IMF warns of ‘profound concerns’ over rising inequality from AI: Fund says governments should do more to protect their economies in face of massive potential labour disruptions. FT

***  US Politics + Elections ***

The 2024 ‘deciders’: Who are they, and what makes them tick? Six in 10 key state voters turn out sporadically or are not firmly committed, Post-Schar poll finds. WP

New polling shows the real fallout from the Trump conviction: A new Politico Magazine/Ipsos poll shows that Trump’s criminal conviction hurts him with independents.

Biden’s secret weapon against Trump: Older voters: WSJ reports Republicans have carried seniors in every presidential election since 2000. Polls show this year could be different.

The Biden campaign announced a major new $50 million June ad push, centered on a new spot slamming Trump over his conviction in the New York hush money case. “Character Matters,” which calls Trump “a convicted criminal who’s only out for himself,” also tags him for the recent findings in civil court that Trump was liable for sexual abuse and business fraud. Watch the ad - click here.

Thursday: Biden arrives at Camp David for debate prep.

Trump world seems worried: Either that, or they’re betting their base doesn’t care about the truth. Tom Nichols

Why Trump is finding new friends in Silicon Valley: A small but vocal group of tech entrepreneurs are embracing Donald Trump’s bombastic approach. Politico

Electric vehicles emerge as flashpoint in 2024 election: Vulnerable Senate Democrats distance themselves from Biden policies as Trump tells EVs to “rot.” WP

Surgeon general calls for social media warning labels: WP reports heavy social media use poses mental health risks to kids and teens, Vivek H. Murthy wrote in a New York Times essay.

Reuters: Appeals court to hear challenges to potential US TikTok ban on Sept. 16

Governor, lawmakers are already planning big revisions to Colorado’s first-in-the nation artificial intelligence law:
The Colorado Sun reports Jared Polis, Attorney General Phil Weiser, and a top Democratic lawmaker agree that Senate Bill 205 needs “additional clarity” and “improvements.” The proclamation follows a letter signed by 200 prominent technology executives and venture capitalists.

Maryland governor to pardon 175,000 marijuana convictions in sweeping order: WP reports the blanket pardon by Gov. Wes Moore is among the country’s most far reaching and will forgive decades of low-level marijuana possession charges for an estimated 100,000 people.

*** Disruption + Innovation ***

Japan’s chip equipment maker Disco catches AI fever: WSJ reports the maker of equipment for semiconductor manufacturing occupies important role in chip supply chain.

Bloomberg: Microsoft’s Japan chief sees country accelerating its use of AI

+ Software maker has grown into leader in pushing AI to masses

+ Beyond data centers, company sees untapped potential in Japan


Microsoft is planning to invest $7.16 billion to develop new data centers in Spain's northeast Aragon region, making a third major cloud computing hub in Europe. The company recently announced a 2.1 billion euro investment in data centers in Madrid. 

How AI is revolutionizing drug development: In high-tech labs, workers are generating data to train AI algorithms to design better medicine, faster. But the transformation is just getting underway. NYT

Google DeepMind shifts from research lab to AI product factory: Bloomberg reports the company combined its two AI labs to develop commercial services, a move that could undermine its long-running strength in foundational research.

Cannes Lions looks to laughter as ad industry feels threat of AI: New humour category highlights ‘human connection’ in a sector beset by a crisis in creativity. FT

McDonald’s will stop testing AI to take drive-thru orders, for now: The Verge reports the company is looking for other partners for AI chatbot-based ordering.

The internet isn’t getting more toxic. It just feels that way: Being rude to one another online is “an inherent part of our behavior.” Bloomberg

Downtown Chicago is being threatened by a real estate crisis: Le Monde reports with many offices deserted due to remote working, the Midwestern metropolis has seen its vacancy rate soar to 16.2%, while the national average is 13.8%.

*** Culture ***

Ridley Scott’s latest release? Villa holidays at his Provençal estate: The filmmaker is opening up his French retreat to guests — while George Lucas and Guy Ritchie are also branching into hospitality. FT

The business of being Lorne Michaels: For 50 years, Michaels has managed both the weekly circus of producing “Saturday Night Live” and the broader task of keeping it relevant. How does he do it? DealBook

*** Sport ***

College athletes should think twice before asking to be employees: College sports need reforming, but making athletes employees isn’t the answer. Sally Jenkins

The bizarre scientific experiment that helped Bryson DeChambeau win the US Open: The 30-year-old American dunks his golf balls in saltwater to test their balance. It’s part of what makes him the sport’s mad scientist. WSJ

France’s soccer team tackles a new opponent: The far right: As France contends with the rise of the National Rally, Les Bleus are using the European Championship as a platform against Marine Le Pen’s party. WSJ

The world’s biggest swim meet is happening inside an NFL stadium: WSJ reports for the first time ever, USA Swimming is hosting its Olympic team qualification meet inside an NFL stadium in front of what it hopes will be a record-setting crowd.


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal 

GET Caracal DAILY BY EMAIL | SUBSCRIBE HERE