ITK Daily is geopolitical business intelligence.
Happy Thursday.
Here’s today’s ITK Daily.
To be ITK, know this:
Biden, Kishida, and Yoon look to ‘institutionalize’ trilateral ties: TJT reports the leaders of Japan, South Korea, and the United States will be looking to “institutionalize” their trilateral ties during a historic summit Friday at the Camp David presidential retreat in Maryland, as they enter what Washington has hailed as “a new era” in their relationship.
Biden orders ban on new investments in China’s sensitive high-tech industries: The new limits, aimed at preventing American help to Beijing as it modernizes its military, escalate a conflict between the world’s two largest economies. NYT
The US is turning away from its biggest scientific partner at a precarious time: US moves to cut research ties with China over security concerns threaten American progress in critical areas, some scientists warn. WSJ
China torpedoes Intel’s bid for Israeli chip maker: WSJ reports Intel scrapped its more-than-$5 billion offer to buy Tower after Chinese regulators failed to approve the deal in time, the latest sign of fallout from the US-China battle over tech.
China's grip on Southeast Asia tightens as US influence wanes: From Vietnam to Indonesia, development aid and 'Asian values' drive Beijing's dominance. Nikkei
China's economic woes mount as trust firm misses payments, home prices fall: Reuters reports missed payments on investment products by a leading Chinese trust firm and a fall in home prices have added to worries that China's deepening property sector crisis is stifling what little momentum the economy has left.
China's growth model under strain, but stimulus faces high hurdles: Nikkei reports real estate slump, local fiscal woes, and weak yuan put Beijing in a bind.
China's economy has a Jordan Peterson problem: Creative punctuation is a lot like cherry-picked data: Eventually, people are going to see through it. Jessica Karl
Bloomberg: China’s defense chief in Belarus as tensions with NATO mount
+ Li Shangfu arrives after a visit to Moscow to strengthen ties
+ Poland, Baltic states intensify border security, citing the threat
Russia raises key interest rate as ruble reaches lowest value since early in Ukraine war: Le Monde reports the Russian ruble slid past 100 against the dollar on August 14, 2023, its lowest level since March 23, 2022.
+ "I think that solution could be for Ukraine to give up territory and get NATO membership in return." -- Stian Jenssen, the chief of staff of the head of NATO. Ukraine called the remarks ‘absolutely unacceptable.’
Niger junta exposes division between France and United States: Washington is taking a softer line than Paris on the coup leaders, notably on the question of military intervention by West African countries. Le Monde
Why ex-French colonies in Africa seem beset by coups: Some former French colonies in Africa are fast gaining notoriety for military coups. Experts blame the worrying trend on high levels of poverty, ineffective civil society and media, as well as excessive French influence. DW
The Times: France has more millionaires than anywhere except US and China
+ Outraged left-wingers claim President Macron has ‘Americanised’ the country
The most powerful people in Britain: The Undecideds: Polling suggests millions of uncertain voters could decide the next UK election. Politico
Poll boost for Keir Starmer as Labour closes in on SNP: The Times reports if the current trend continues, Labour would win 22 seats in Scotland, according to analysis.
Bloomberg: Brazil to cap carbon emissions for large polluting companies
+ Creation of a regulated carbon market to affect 5,000 companies
+ Brazil seeks carbon neutrality by 2050, adviser says
Argentina at a crossroads ahead of fall elections: Voters will get to choose between libertarian, left-wing, and conservative candidates in the October elections. Who will win the race? And what's in store for the country? DW
Argentina’s Milei aims to balance budget within months, adviser says: Radical libertarian wants to avoid mass public sector lay-offs because of economy’s dire state. FT
Bloomberg: Argentina’s Milei vows to pay country’s debt while shuttering the central bank
+ Presidential candidate says the fiscal plan will create financing
+Sovereign bonds have sold off since unexpected result
This politician just won Argentina’s primary. His hair is baffling the world. Javier Milei, who swept a presidential primary over the weekend, rocks a mop that reflects his nonconformist campaign. WSJ
Argentina’s polarized politics are a warning for the US Gabriel Pasquini
There were nearly 62.5 million Latinos in the United States in 2021, accounting for approximately 19% of the total US population.
+ The Bidens will travel to Maui on Monday in the wake of the country’s deadliest wildfire in more than a century
Ron DeSantis is turning into Scott Walker, fast Ed Kilgore
Michigan’s GOP descends into chaos, echoing national dysfunction: WSJ reports the Michigan Republican Party—now dominated by its right flank staunchly aligned with former President Donald Trump—has all but gone broke, and state lawmakers have taken to raising money on their own.
Inside the $220bn American cleantech project boom: One year after the IRA and Chips Act became law, FT research shows who is winning the investment race. FT
Great Lakes gets its first wind farm – but some fear environmental fallout: Icebreaker would be North America’s first ever freshwater offshore wind project – but locals express concerns over wildlife and potential oil leaks. Guardian
A bipartisan push for a new digital cop: DealBook reports Elizabeth Warren (D-MA) and Lindsey Graham (R-SC) plan to introduce the Digital Consumer Protection Commission Act, which they say would restrain tech titans while letting them continue to innovate.
When tackling crypto, the SEC should be wary of overreach: Despite laudable investor protection aims, there are risks to its aggressive approach. Brooke Masters
Coinbase Global said it has secured approval to offer cryptocurrency futures to US retail customers, scoring a major regulatory win even as the crypto exchange battles a lawsuit from the Securities and Exchange Commission (SEC).
Google is preparing for a major AI offensive this fall.
Since the launch of DALLE-2, people are creating an average of 34 million images per day.
AI is setting off a great scramble for data: Feeding ever-larger models is requiring makers to get creative. Economist
AI won’t supercharge the US economy: The technology will probably provide only a small boost to economic growth, but it could still have a significant impact in the long run. Tyler Cowen
CNBC: Vietnamese EV maker VinFast is now worth more than Ford and GM after NASDAQ debut
+ VinFast is currently worth $85 billion after its shares jumped in Tuesday’s market debut.
Mercedes inks first-ever 5G connected car patent deal with Avanci: Nikkei reports Japanese automakers face pressure to sign on early or pay higher licensing fees.
Hyundai Motor Co's India unit will buy General Motors' plant in the country, allowing the US automaker to exit India six years after it stopped sales.
Berkshire Hathaway sold nearly half of its holdings in GM.
Union members are planning to vote on a strike at Detroit Three automakers Ford, General Motors, and Stellantis next week, the United Auto Workers (UAW) said, as it pushes the companies to reach new contract terms by the September 14 deadline.
Rival battery technologies race to dominate electric car market: Two forms of lithium-ion technology are vying to dominate an industry destined to be worth hundreds of billions of dollars. FT
Yes, we have enough materials to power the world with renewable energy: We won’t run out of key ingredients for climate action, but mining comes with social and environmental ramifications. Casey Crownhart
Is David Solomon too big a jerk to run Goldman Sachs? Inside a banking mutiny. Jen Wieczner
Mastercard moves to block cannabis purchases using its debit cards.
What happens to all the stuff we return? Online merchants changed the way we shop—and made “reverse logistics” into a booming new industry. The New Yorker
The life and death of the Amazon brands John Herrman
Business Book of the Year 2023 — the longlist: Chosen titles explore themes including AI breakthroughs and the rise and fall of billionaires. FT
It’s a rap: What are the greatest hip-hop movies? The genre, which turns 50 this month, has led to surprisingly few movies, but the best include a black-and-white comedy and a starry documentary. Guardian
Daft Punk's early masterpieces, crafted in a childhood bedroom: 'Homework,' the Parisian duo's debut album, brought house and techno to the masses and propelled the two Frenchmen into a planetary orbit. Le Monde
Women's World Cup: England’s Lionesses will face Spain in their first ever Women’s World Cup final on Sunday after beating Australia 3-1 today.
Why college football can’t help itself: Conference chaos continues, without regard for geography or the larger picture. Jason Gay
College football is barreling toward a super league, no matter what might be lost Steven Godfrey
Saudi official must testify in probe of PGA deal, senator warns WP
US senator warns top Saudi over refusal to testify on PGA golf deal: Richard Blumenthal to consider ‘other legal methods’ to compel Yasir al-Rumayyan to speak to Senate oversight committee. Guardian
Venus Williams given wildcard to play in New York event: BBC reports two-time champion Venus Williams is set to compete in a record-extending 24th US Open after being handed a wildcard for this month's Grand Slam event.
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
Caracal produces ITK Daily.
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