Caracal Daily | June 25
China, Camp David, Music + AI, ‘The Bear,’ Tour de France, 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:
*** Ross Rant ***
AI rides the "hype cycle"
Parmy Olson, a Bloomberg Opinion columnist covering technology, is out with a must-read post.
Her column says recent surveys indicate a cooling of enthusiasm for AI in the business world.
Concerns about accuracy, expenses, and data protection have led many companies to scale back their adoption of cutting-edge AI solutions.
Lucidworks reports that the percentage of global firms planning to boost AI spending in the coming year has dropped from 93% to 63%. In the US, AI adoption remains low, with only 5% of companies utilizing the technology, according to Census Bureau data.
This trend aligns with the "trough of disillusionment" phase in Gartner's Hype Cycle, suggesting a period of reassessment following initial excitement.
Full post - click here.
*** Globalization + Geopolitics ***
The EU charged Apple with violating Europe's new digital competition laws.
US closer to curbing investments in China's AI, tech sector: Reuters reports the United States on Friday issued draft rules for banning or requiring notification of certain investments in artificial intelligence and other technology sectors in China that could threaten US national security.
US ‘on schedule’ in race with China to land people on moon, NASA chief says: WP reports China recently landed an uncrewed spacecraft on the moon for the fourth time, but NASA’s Bill Nelson says the US will return astronauts there within a few years.
China is pressing its partners in the Global South to publicly support “reunification” with Taiwan, a phrase favored by Beijing, analysts said.
China may be the Ukraine war’s big winner: Putin’s invasion of Ukraine has given Xi Jinping a way to stir trouble for the West and make Moscow dependent on Beijing. Michael Schuman
Ukraine’s naval drones turn the tide in the battle of the Black Sea: WSJ reports unmanned vessels developed in the fight against Russia are part of a revolution in modern warfare.
Reuters: Zelenskiy orders purge of state guard after assassination plots
Russia is punching back at NATO in the shadows: The US urges its alliance partners to expose and blunt the Kremlin’s strategy of surreptitious attacks. David Ignatius
Nigel Farage’s claim that NATO provoked Russia is naive and dangerous: It is also a wilful misreading of history. Economist
UK’s AI ambitions at risk from poor mobile network, says Vodafone boss: The Times reports Margherita Della Valle says Britain will be less quick to take advantage of the technology than its rivals.
AFP: Macron says both far-right, hard-left policies could lead to ‘civil war’ ahead of snap polls
Le Monde: French elections: Macron rules out resigning whatever the result
France could trigger the next euro crisis: Runaway budget deficits and confrontation with Brussels and Berlin is a formula for trouble. Gideon Rachman
The Pope’s right-hand man is reshaping the church, becoming a target: Most Catholics have little sense of the liberal archbishop behind the Vatican’s pronouncements. But critics of the Pope see Víctor Manuel Fernández as Enemy No. 2. WP
Filipino food: The Philippine government is making a concerted effort to boost its cuisine on the world stage.
AI companies are racing to produce chatbots that can talk in India’s many languages: Hindi is the most common of India’s 22 officially recognized languages, but there are thousands of other tongues and dialects, presenting a challenge for large-language models. Google, Microsoft, and others are increasingly offering Indian AI voice assistants — Google’s Gemini launched in nine Indian languages last week, while Microsoft’s Copilot is available in 12.
AP: India boosts defense ties with Bangladesh as it tries to become a counterweight to China
DW: North Korea resumes sending trash-filled ballons south
Iran votes: Iranians head to the polls this Friday, and all six candidates have been wooing youthful voters.
Javier Milei has turned Argentina into a libertarian laboratory: But the biggest economic test is yet to come. Economist
US military looks for West Africa 'Plan B' after Niger ousting: Reuters Air Force General CQ Brown, chairman of the Joint Chiefs of Staff, told reporters before landing in Botswana on Monday for a gathering of African chiefs of defense that he was going to speak with several partners in the region.
Julian Assange to plead guilty in US espionage case: WSJ reports the WikiLeaks founder is set to enter a plea in Saipan and be sentenced to time served, after fighting a yearslong battle to avoid trial.
US 'War on Drugs' campaign a 'clear failure' — UN: DW reports independent expert Tlaleng Mofokeng called on states to shift attention to harm reduction. She said the change should focus on people's right to health, rather than the policies initiated by US President Richard Nixon.
Fueled by climate change, extreme wildfires have doubled in 20 years: WP reports a new study analyzing satellite data focused on extreme wildfires, which have severe consequences for humans and the planet.
*** US Politics + Elections ***
Bloomberg: Biden enters debate seeking to quell mounting attacks over age
Inside Biden’s Camp David debate prep: President Biden’s aides are working to position him as a campaign-season fighter who can counterpunch on the fly and combat voters’ concerns about his age. NYT
I played Trump for Hillary’s debate prep. This is what Biden must do: Philippe Reines says CNN’s rules on muting microphones will benefit the president on Thursday — but it could yet be a shouting match between two angry men. The Times
How America’s presidential debates are changing this year: Will the Trump-Biden showdowns be an institution’s last gasp, or a new start? Economist
Biden-Trump debate: Where they stand on China and Taiwan: Candidates clash on how much clarity there should be on defending the island. Nikkei
What Obama is whispering to Biden: The presidents’ plan to save their legacy from Trump. Gabriel Debenedetti
How Jeff Yass became one of the most influential billionaires in the 2024 election: The libertarian who turned Susquehanna into one of Wall Street’s most powerful trading firms is enmeshed with TikTok—and betting on Trump. Bloomberg
Ukraine hasn’t been a political liability for Republicans: WP reports none of the 101 Republicans who voted for the aid funding lost their primaries, despite some challengers making it a campaign issue.
The battle for New York: Two years ago, Republicans retook the House in Washington by surprising their opponents in the Empire State. Are Democrats prepared to win back the territory? WP
AP: Democrats wrestle with whether to attend Netanyahu’s address to Congress as many plan to boycott
+ Netanyahu scheduled to address US lawmakers on July 24
John Fetterman's war: Is the Pennsylvania senator trolling the left or offering a way forward for Democrats? Benjamin Wallace-Wells
Are manufacturing jobs really that good? The nostalgia of politicians is misplaced. Economist
*** Disruption + Innovation ***
Still trying to sound smart about AI? The boss is, too: Many executives talk a visionary game about AI’s promise—while trying to learn exactly what it can do. WSJ
+ 87% of firms surveyed by Bain & Co have a genAI program.
Generative AI is still a solution in search of a problem: Axios reports the gigantic and costly industry Silicon Valley is building around generative AI is still struggling to explain the technology's utility.
+ The most common rationale is a kind of circular reasoning: Everyone's going to be using these tools, the argument goes, so you might as well get ahead of the parade.
+ "I consistently sort of wander up to the AI, ask it a question, find myself somewhat impressed or unimpressed at the answer. But it doesn't stick for me. It is not a sticky habit ... it's not really clear how to make AI part of your life." -- Ezra Klein
Is artificial intelligence making big tech too big? Previous scares have been overblown. This one might not be. Economist
Music labels take on AI startups with new lawsuits: Universal, Sony, and Warner allege that the two companies generate sound-a-likes of popular recordings using copyrighted works. WSJ
Google is turning into a libel machine: Another reason not to trust the search engine in the generative-AI era. Matteo Wong
Before smartphones, an army of real people helped you find stuff on Google: Not too long ago, services like GOOG-411, 118 118 and AQA used actual humans to answer questions with witty responses and encyclopedic knowledge. Today’s search engines could learn something. Wired
Snapchat has introduced an on-device AI model that enables users to create custom AR lenses from text prompts.
Reuters: Amazon mulls $5 to $10 monthly price tag for unprofitable Alexa service, AI revamp
Mashable: OpenAI's GPT-5 pushed back to late 2025, but promises PhD-level abilities
Apple rejected overtures by Meta to integrate the social networking company’s AI chatbot into the iPhone months ago, according to people with knowledge of the matter.
ByteDance is working with US chip designer Broadcom on developing an advanced AI processor.
TikTok in denial as US ‘ban’ approaches: Semafor reports from the advertising conference in Cannes last week, TikTok occupied its customary, lavish space in the back of the Carlton — a space that felt infinitely distant from the heated Washington conversation over the future of the Chinese-owned social app.
+ Blake Chandlee, the president of global business solutions at ByteDance, spoke about TikTok for nearly 45 minutes without mentioning the fact that President Joe Biden had signed a law in April threatening to ban it. It came up only when he was asked about it point blank.
Blaze at South Korea lithium battery plant kills 22 workers: Reuters reports the fire and a series of explosions ripped through the factory run by primary battery manufacturer Aricell in Hwaseong, an industrial cluster southwest of the capital Seoul.
SpaceX has added ~$100M and 21,000+ jobs to the economy in South Texas.
NASA is being sued by a Florida family after space debris hit their house.
NASA is indefinitely delaying the return of Starliner.
US prosecutors recommend Justice Dept. criminally charge Boeing: Reuters US prosecutors are recommending to senior Justice Department officials that criminal charges be brought against Boeing, opens new tab after finding the planemaker violated a settlement related to two fatal crashes.
Traffic to traditional news outlets in the US is collapsing and it’s not just them – only 22% of people globally now rely on publisher websites as their main source of news, down 10 percentage points since 2018.
Novo Nordisk, the Danish pharmaceutical company behind weight-loss drugs Wegovy and Ozempic, said it would invest $4.1bn in a new facility in North Carolina.
Reuters: Fast-fashion retailer Shein filed for London listing in early June, sources say
How to fix fast fashion: Could consumer demand help drive down the cost of producing goods in America? Rana Foroohar
*** Culture ***
Why do we love ‘The Bear’ so much? The grit, the merch, the biceps. Charting the cultural phenomenon that sparked new interest in the people behind the scenes at restaurants — or at least, in their stuff. NYT
Building blocks are laid for Detroit’s architectural renaissance: GM and Ford hope to revive the city’s pride through projects centred on two iconic sites. Patti Waldmeir
*** Sport ***
The World Surf League is under way in Rio de Janeiro.
In cricket news: Team USA crashed out of the T20 Cricket World Cup on Sunday with a 10-wicket loss to defending champion England, ending the Americans' Cinderella run in their first-ever World Cup appearance.
Saturday: Tour de France begins.
AFP: Paris organisers unable to confirm Olympic swimming events for Seine – with one month to go
Stephen A. Smith is the face of ESPN. How much is that worth? The opinionated “First Take” co-host has been offered $18 million a year to stay, a sign of his growing importance to the network. WSJ
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
ITK Daily | June 25
