Happy Friday.
Here’s today’s ITK Daily.
To be ITK, know this:
Welcome to the 70s: On this episode of Brigadoon Radio, Gerald Ashley and I discuss the year end and the year ahead with a focus on inflation, union strikes in the UK, the Federal Reserve, a resurgence of infrastructure and manufacturing, the end of FTX, the trench warfare of Ukraine, developments in Turkey, the Germany coup plot, the fusion breakthrough, Japan a country to watch, no 2023 Taiwan invasion, supply chains and friend-shoring, and what they are reading and watching. YouTube or Spotify.
US widens ban on military and surveillance tech sales to China: WP reports the Commerce Department added 36 entities to a US export blacklist, including one of China’s largest chipmakers.
China thinks 50 years ahead. Can the US? A new House committee might set policy on security, diplomacy, trade, and cooperation — but only if it avoids partisanship. James Stavridis
+ Can Mike Gallagher take on Beijing?
The fevered anti-China attitude in Washington is going to backfire: America has embarked on a difficult challenge: reversing decades of technological integration with China without damaging the US economy or antagonizing allies. Unfortunately, the US is going too far. Jon Bateman
A professor who challenges the Washington Consensus on China: Jessica Chen Weiss argues that Biden Administration policy contributes to an “action-reaction spiral.” New Yorker
Nikkei: US to send officials to Taiwan for 2 years starting next fall
+ Fellowship program aims to lay the groundwork for addressing Chinese challenges
How to avoid another world war Henry Kissinger
+ The US National Archives released a new trove of files related to the 1963 assassination of President John F. Kennedy.
Biden aims to inject new energy into US relations with African nations: With the United States lagging behind China in influence on the continent, the president pledged investments in key areas for development. NYT
+ Biden announced plans for a presidential trip next year to sub-Saharan Africa as part of the final day of a summit in Washington that his administration is hosting for leaders from the continent.
+ Biden also formally voiced his support for the African Union to become a permanent member of the Group of 20 nations
+ The last French troops deployed in the Central African Republic left on Thursday following a chill in relations caused by closer ties between Bangui and Moscow
Russia’s influence campaign in Africa targets a US ally: Moscow has stepped up its efforts to boost support across the resource-rich continent, including in Uganda. WSJ
Biden has the economy back on track: His policies have helped the country weather a global economic storm and invest for the long term. Janet Yellen
House passes bill that could pave the way for Puerto Rican statehood: NYT reports the legislation has little chance of becoming law in the short term, but its passage in a bipartisan vote reflects a perception by the House that Puerto Rico’s status as a colonial territory is untenable.
In Congress, Republicans confront divisions posing long-term threats: Clashes over government spending and party leadership underscored looming challenges in the GOP as it prepares to take control of the House in January. WP
McCarthy's ongoing speaker battle paralyzes House: The GOP leader confirmed he's postponing key committee contests, delaying the conference's ability to prepare bills, call hearings or even pay staff. Politico
Peter Thiel brands US midterms a ‘depressing disaster’ for Republicans: FT reports the billionaire venture capitalist plowed more than $30mn into backing GOP candidates.
Kyrsten Sinema files paperwork for 2024 Senate candidacy as independent: WSJ reports centrist Arizona senator switched her registration from Democrat last week.
DeSantis builds his conservative resume as Trump flounders: DeSantis has repeatedly said he doesn’t pay attention to polls, but his efforts keep resonating with Republican voters. Politico
Donald Trump aims to regroup after rocky first month of 2024 campaign: WSJ reports the ex-President plans to focus on smaller, policy-focused events in the next few months.
Jill Biden makes a tidal shift from her thoughts on another run at the White House: CNN reports that First Lady Jill Biden, despite being so worn out from a recent circuit of White House events that she lost her voice, is now seriously looking ahead to her husband running for reelection in 2024. That’s a tidal shift from her position just three months ago.
Democrats mull alternative to South Carolina amid divisions over first-in-nation primary: The Hill reports the informal talks among strategists, former campaign advisers, activists, and those close to state parties are largely centering around three states — Georgia, Nevada, and North Carolina — as possible alternatives to kick off the 2024 nominating contest, with proponents citing their racial diversity and general election importance as upsides.
US planning to give Ukraine smart-bomb kits: WP reports the Joint Direct Attack Munition kits incorporate global positioning devices for precision and can be bolted onto various weapons and aircraft.
The US plans to more than double the number of Ukrainian troops it trains in Germany: NYT reports the Pentagon is expanding the training that the US military provides to Ukrainian troops, with plans to more than double the number of forces it instructs at a base in Germany, according to two US officials.
+ The expanded training, which officials said President Biden had approved this week, would enable American instructors to train a Ukrainian battalion — about 600 to 800 troops — each month, beginning early next year, the officials said.
AP: Russia: US air defense systems could be targets in Ukraine
War in Ukraine hinges on who gets more rockets and shells first: A combination of the weather and Russian consolidation along defensive lines has slowed advances by either side on Ukraine’s battlefields, but not the conflict’s intensity. Bloomberg
Parliament of loopholes: Why the Qatar scandal was inevitable: The EU’s only directly elected institution has failed to police itself. Politico
EU’s Qatar corruption scandal brings French links under scrutiny: French lawmakers have questioned the country’s lobbying rules in light of the EU scandal. Politico
Germany’s unlearned lessons: Berlin must reduce its dependence not just on Russia but on China, too. Liana Fix + Thorsten Benner
The motley crew that wanted to topple the German government: An obscure German blue blood is reportedly at the center of a strange plan to topple the German government foiled this week by the country's security services. Observers describe the development as a dangerous escalation of the Reichsbürger movement, whose followers want to overthrow Germany's leaders. Der Spiegel
The Tories are under water in coastal towns Ben Cooper
Anadolu Agency: South Korea’s 27th nuclear reactor begins operations
+ President Yoon vows to make country ‘global nuclear energy power’
Two dogs from North Korea become victims of a political squabble: Kim Jong-un, the North Korean leader, gave two pups to South Korea as a symbol of peace. Now the canines are at the center of a political spat between leaders in the South. NYT
Japan needs to rearm wisely: New military investments are welcome, but the money shouldn’t only go to flashy missiles and jet fighters. Bloomberg - Editorial
+ Australian Prime Minister Anthony Albanese said he was open to visiting China in early 2023 during an interview with Sky News on Thursday.
Xi Jinping’s COVID crisis is really an opportunity Minxin Pei
+ Pei is the author of the forthcoming book “Guarding Dictatorship: China’s Surveillance State.”
Argentina’s populist political movement is at its lowest ebb: The country has a mighty football team but a decrepit ruling party. Economist
Argentina exults ahead of World Cup final: 'Victory unites us': The national team's 3-0 victory over Croatia on Tuesday comes as a breath of fresh air in a nation where inflation reached 90% in one year. Le Monde
Anadolu Agency: Brazil’s Lula to make 1st trips as president to Argentina, China, and US in early 2023
+ Brazil to also restore relations with Venezuela as of Jan. 1 and recognize Nicolas Maduro as president
Peru declares state of emergency as protests intensify: FT reports supporters of detained former leader Pedro Castillo stage violent demonstrations in the south.
Nuclear-fusion lab achieves ‘ignition’: what does it mean? Researchers at the US National Ignition Facility created a reaction that made more energy than they put in. Jeff Tollefson + Elizabeth Gibney
The chase for fusion energy: An emerging industry of nuclear-fusion firms promises to have commercial reactors ready in the next decade. Philip Ball
Bloomberg: FTX fiasco fails to mute Congress’s biggest crypto enthusiasts
+ Supporters want some regulation but say tech isn’t at fault
+ Democrats grow more skeptical about crypto’s benefits
Lawmakers grapple with sheer size of FTX’s missing billions: Sen. Sherrod Brown (D-OH) accuses the industry of being ‘easy, too easy’ for corruption. WP
Blockchain is much more than crypto: Regulated financial institutions are well-positioned to harness the revolutionary technology. David Solomon
The FUD behind the crypto collapse: Sam Bankman-Fried and Binance’s Changpeng Zhao were ostensible partners before Zhao helped blow the whistle on Bankman-Fried’s failures. The bad feelings go back for years. Max Chafkin
Hey Silicon Valley, maybe it’s time to dress up, not down: Sam Bankman-Fried’s choices may signal an end to the schlubby mystique. Vanessa Friedman
What if work is making us sick? While employment has become less physically dangerous, it seems to have become more psychologically harmful. Sarah O’Connor
Citi is letting staff work from anywhere for the final two weeks of the year as long as they stay in the country of employment.
Let Twitter devolve into porn: It’s always pleasing to see things become what they deep down are. Virginia Heffernan
Are mushrooms the future of alternative leather? MycoWorks uses mycelium, the substance in the root structure of mushrooms, to make Reishi, which has a look and feel of leather. Big-name companies are very interested. NYT
AmEx hooked big spenders and regained the throne with a pricier platinum card: It boosted points and added new benefits, then raised fees in the middle of a pandemic. The risky strategy worked. Businessweek
Bloomberg: Harvard names first black president as Claudine Gay succeeds Bacow
+ Gay also becomes the second woman to lead the Ivy League school
+ She will succeed Lawrence Bacow, who’s retiring as of July 1
How neuroscience confirms the most ancient myths about music Ted Gioia
Vinyl records are one of the music industry’s biggest comeback stories: According to the RIAA, in the US, mid-year revenues from vinyl albums grew 22% to $570 million, while vinyl’s share of the physical market increased from 68% to 73%.
AFP's best sports pictures 2022 AFP
AFP: Rafael Nadal launches hotel brand with Spain's Melia Group
Red Bull Dual Ascent: The first true multi-pitch climbing contest: Sixteen world-class athletes on eight teams battling to be the fastest up the wall of grueling six pitches at Red Bull Dual Ascent: two exact routes, side-by-side, 180m high, one winning team. Red Bull
AFP: Santos quits as Portugal coach with Mourinho tipped as possible successor
International transfer agent fees exceed £500m in 2022: BBC reports that is a 24.3% increase on 2021's figure but lower than the record of $654.7m (£538.2m) set in 2019. Clubs in England spent the most on such fees - $203.2m (£167m) - while Italy was second with a figure of $88.5m (£72.8m).
+ The NHL’s 32 teams are now worth a record $1.03 billion on average — a 19% increase year-over-year.
Taking back the mountains: Big resorts are crowded, pricey and exclusive. But some skiers and snowboarders are trying to reclaim their sports by building a culture that is more inclusive and sustainable. Here’s how. NYT
Enjoy the ride + plan accordingly.
-Marc
Caracal produces ITK Daily.
Caracal is a geopolitical business communications firm specializing in global business issues at the intersection of globalization, disruption, and politics.
Caracal believes that to be a world-class geopolitical business communicator, you need global street smarts coupled with holistic, high-frequency, and high-low communications.
To receive Caracal ITK Daily by email, subscribe here.
