Oligarch, Censorship, Cryptocurrency, Cannabis, CVS
Caracal Business Insider | Daily
December 4, 2017
Curation and commentary from Marc A. Ross
Caracal Business Insider: Your one-stop shop for Global Business News at the Intersection of Politics + Policy + Profits.
Reporting from New York, New York
GEOECONOMICS
Russia's long cyber game: The digital attack that brought Estonia to a standstill 10 years ago was the first shot in a cyberwar that has been raging between Moscow and the west ever since. https://goo.gl/xV2Xjn
Who’s an oligarch? Rich Russians fret over US sanctions label https://goo.gl/KUZc5i
China defends state control over the internet at technology forum: FT reports, the man who has helped shape President Xi Jinping’s policies has told the World Internet Conference — whose audience this past weekend included Tim Cook of Apple and Sundar Pichai of Google — that China had a right to regulate its own internet.
Apple, Google CEOs bring star power as China promotes censorship: Bloomberg reports, Apple Inc.’s Tim Cook and Google’s Sundar Pichai made their first appearances at China’s World Internet Conference, bringing star power to a gathering the Chinese government uses to promote its strategy of tight controls online. Apple’s chief executive officer gave a surprise keynote at the opening ceremony on Sunday, calling for future internet and AI technologies to be infused with privacy, security and humanity. The same day, one of China’s most-senior officials called for more aggressive government involvement online to combat terrorism and criminals. Wang Huning, one of seven men on China’s top decision-making body, even called for a global response team to go well beyond its borders.
China limits waste imports: NYT reports, an intense crackdown by Chinese regulators on imported foreign waste destined to be recycled has had an impact on businesses and municipalities around the world.
Maybe China can't take over the world
Bloomberg - Christopher Balding OpEd
"Some of its greatest advances depend heavily on local conditions."
In South Korea, the virtual currency boom hits home: NYT reports, around the world, ordinary people, with no prior experience in virtual currencies, have been lured into the virtual currency markets in recent weeks by the soaring prices of Bitcoin and its competitors.
Venezuela to create a cryptocurrency amid bolivar's free fall: Bloomberg reports, on his Sunday television show, Maduro announced the nation would create its own “petrocurrency,” backed by reserves in oil, gas, gold and diamonds. It will enable Venezuela “to advance in monetary sovereignty, carry out its financial transactions to overcome the financial blockade,” Maduro said.
"The 21st century has arrived!"
Trudeau in China: Trade will be high on the agenda this week as Canadian Prime Minister Justin Trudeau visits China in a bid to boost business ties with the world's second-largest economy.
Canada could make billions from legal pot: CNN Money reports, Canada's Cannabis Act was introduced in the Canadian Senate Tuesday, its last legislative stop. The bill enjoys wide public support and the backing of Prime Minister Justin Trudeau. According to recent estimates from Marijuana Business Daily, an industry publication, annual sales for Canada's recreational marijuana market could range between $2.3 billion and $4.5 billion by 2021.
"Canada faces one last hurdle to becoming the first G7 nation to legalize recreational marijuana."
Theresa May fails to strike Brexit border deal with Irish government: Guardian reports, the lack of agreement threatens to put back progression of Brexit negotiations to the second phase, ahead of crunch meeting between PM and Jean-Claude Juncker
Second referendum: Bloomberg reports, fifty percent of UK voters think there should be a second referendum on the final Brexit deal, a poll by Survation for the Mail on Sunday showed.
Copy-paste trade deals: The UK government wants to copy about 40 trade accords and turn them into bilateral agreements so international commerce won’t be disrupted after the split.
AMERICAN POLITICS
Passage of Senate tax bill puts R&D tax credit in doubt: WSJ reports, an unintended consequence of late decision to keep the corporate alternative minimum tax could be the loss of some tax breaks; companies push back.
Trump emboldened: Buoyed by Senate passage of his tax overhaul proposal, Trump told donors in New York on Saturday that he'll be “unbeatable” in 2020.
GOP pushes to avoid a government shutdown, but the path is tricky: NYT reports, a two-week stopgap measure would provide more time to negotiate, but obstacles loom on both sides of the aisle as lawmakers push their own priorities.
NYT: Alabama's disdain for Democrats looms over its Senate race
Yes, Donald Trump, you said that
NYT - Billy Bush OpEd
"Of course he said it"
Suspended: ABC News has suspended investigative journalist Brian Ross for a month because of an error in his reporting about Trump.
Driverless car bill hits Senate speed bump: The Hill reports, the measure was set up under a fast-track process with the hopes of getting it over the finish line this year, but multiple senators are blocking the legislation from moving forward.
Politico Playbook power list: 18 to watch in 2018 https://goo.gl/G5MzPS
ENTERPRISE
CVS Health Corp. is going to buy health insurer Aetna Inc. for about $67.5 billion.
Facebook has opened its new London office, stating it would add 800 more jobs in the UK capital next year.
GooBook: WPP's GroupM expects Google and Facebook to account for 84% of global digital investment in 2017.
Australia to probe Facebook, Google over media disruption: Reuters reports, Australia’s competition regulator said on Monday it would investigate whether U.S. online giants Facebook and Alphabet Inc’s Google had disrupted the news media to the detriment of publishers and consumers.
Walt Disney Co. has "reengaged" in talks with 21st Century Fox about buying some of its assets.
WSJ: Bitcoin is the world’s hottest currency, but no one’s using it
$100 trillion will happen: The total value of companies listed on the world's stock markets as of Friday's close was $98,750,067,000,000 -- within touching distance of $100 trillion for the first time.
TRENDS
Why a Gen-X CEO hired a Millennial to help him keep a learning mindset https://goo.gl/jvvdnn
Legal marijuana: According to investment firm Cowen & Co., the legal US cannabis market is expected to reach $50 billion in annual sales by 2026.
CULTURE
Call Me by Your Name has been chosen as best picture by the Los Angeles Film Critics Association.
Caracal Business Insider | December 1, 2017
Working Visit, Russian Jets, Rex Tillerson, Nokia, General Motors, World Cup 2018
Caracal Business Insider | Daily
December 1, 2017
Curation and commentary from Marc A. Ross
Caracal Business Insider: Politics + Policy + Profits
Reporting from Alexandria, Virginia
GEOECONOMICS
NYT: Trump's tweets manage a rare feat: Uniting Britain, in outrage
Trump’s 'working visit' to UK dropped as tensions with Theresa May grow over president's far-Right retweets: The Telegraph reports, Trump had been penciled in for a ‘working visit’ in the first month of 2018 to formally open America’s new London embassy.
President Trump is now a troll
WP - Anne Applebaum
“The British people overwhelmingly reject the prejudiced rhetoric of the far-right, which is the antithesis of the values that this country represents,” said the prime minister, Theresa May. When the president responded by attacking May, dozens of others — members of Parliament, the mayor of London, the archbishop of Canterbury — denounced him. One MP said Trump was “racist, incompetent or unthinking — or all three.”
Brexit arrives early in Frankfurt property market: FT reports, big rise in demand for office space as financial businesses firm up relocation plans
OPEC curbs: OPEC members agreed in principle to keep limiting their output through the end of 2018, providing assurance for an oil industry still struggling through a fragile recovery.
British military to test space-based intelligence gathering: Defense News reports, the British military is to test the ability of constellations of low-Earth orbit satellites to provide tactical intelligence gathering.
Need a gun? US defense companies sold $41.93 billion worth of weapons to foreign partners and allies in fiscal 2017, an almost 20 percent increase over 2016 figures.
Russian MPs to vote on banning US media from parliament: AFP reports, Russian lawmakers will vote next week on measures banning all US media from the lower house of parliament, a deputy said Friday, in response to the US Congress stripping state channel RT of its credentials.
Russian jets in Egypt: Moscow and Cairo signed a preliminary agreement to allow Russian military jets to use its airspace and bases.
Leaving Tel Aviv? The Trump administration is considering a plan to formally recognize Jerusalem as the capital of Israel.
Beijing foots bill for Canadian senators, MPs to visit China: Globe and Mail reports, since 2006, parliamentarians have taken 36 trips to China sponsored by arms of the Chinese government or business groups seeking closer ties and trade with the one-party state, according to travel records
US, China hold quiet military talks amid North Korea tensions: AP reports, US and Chinese generals engaged in an unusual set of security talks on Wednesday, just hours after North Korea’s most powerful missile test yet, focused on how the mighty American and Chinese militaries might communicate in a crisis.
FT: US-China economic dialogue programme has ‘stalled’, Treasury official says
“China is not moving in a market-oriented direction so for now the CED is also stalled”
Jerry Brown’s China ace card: NYT reports, China’s push to become a major player in electric cars is already shaking up the global auto industry. California’s governor is hoping it will also give the state an advantage in its continuing showdown with Detroit over battery-powered vehicles. CA Gov. Jerry Brown said on Wednesday evening at an event in San Francisco that China’s electric-car effort would help California withstand demands from American automakers that the state ease back on its effort to put more clean-burning vehicles on the road. https://goo.gl/5Hpahr
China’s tech giants have a second job: Helping Beijing spy on its people: WSJ reports, Tencent and Alibaba are among the firms that assist authorities in hunting down criminal suspects, silencing dissent and creating surveillance cities. Their efforts are part a state campaign to build one of the world’s most ambitious surveillance systems.
さようなら: Japanese Emperor Akihito will abdicate on April 30, 2019, which will end his three-decade reign by passing the throne to his son.
Each nation to fight for itself in 2018: In Asia, US faces challenges, not only from China but also India and Japan.
Nikkei - Ian Bremmer
Australia powers up the world’s biggest battery — courtesy of Elon Musk: NYT reports, the battery is the size of an American football field. It is capable of powering 30,000 homes, and its rapid deployment reflects the union of a blackout-prone state and a flashy entrepreneur, Elon Musk, the founder of Tesla Motors, who pledged to complete its construction in 100 days or do it for free.
AMERICAN POLITICS
White House plans Tillerson ouster from State Department, to be replaced by Pompeo, within weeks: The Trump administration has devised a plan that would replace Secretary of State Rex Tillerson with CIA Director Mike Pompeo, the NYT reports. Arkansas Sen. Tom Cotton, a Republican and staunch Trump ally, would reportedly replace Pompeo at the CIA.
WSJ: Tillerson, Cohn could leave White House in wave of senior departures
Trump urged GOP leaders to help end Russian inquiry: NYT reports, Trump asked at least three lawmakers last summer if they would put a quick end to the investigation into Russian election meddling, according to several people.
Senate delays vote on GOP tax plan over deficit worries: WSJ reports, Senate Republicans hit a stumbling block in their efforts to overhaul the tax code, forcing them to contemplate rewriting parts of their $1.4 trillion tax-cut plan and push back the vote to as early as Friday.
FT: Republicans’ tax reform drive hit by deficit projections
NYT: Republican tax bill hits snag over deficit concerns
On Thursday, the Joint Committee on Taxation said the measure would add $1 trillion to budget deficits over 10 years.
GE’s successful effort to change GOP tax bill shows lobbying clout: WSJ reports, scores of companies are racing to influence the final form of congressional plan to reshape the nation’s tax laws.
WSJ: For multinationals, the tax bill’s good likely outweighs the bad
ENTERPRISE
Nokia is in talks to acquire Juniper Networks - the deal values Juniper at $16 billion.
WSJ: NASDAQ Plans to Launch Bitcoin Futures in 2018
BOF: Dior, Hermès and Louis Vuitton are 2017's most buzzed-about designers on Instagram
@TheRegister: Badass alert: 1 in 5 Brits don't give a damn about webpage crypto-miners
CVS is closer to a $66 billion-plus agreement to buy Aetna.
WSJ: GM aims for self-driving taxi fleet by 2019
General Motors aims for self-driving taxis by 2019: FT reports, GM is the first carmaker planning to use technology at scale expects profit on rides at $1 a mile.
FT: Uber legal chief warns staff not to spy on rivals
TRENDS
Keeping pace with the changing Chinese consumer: In this month’s BOF China Edit, as Chinese consumer confidence reaches a 10-year high, some trends are worth watching for fashion and beauty brands. https://goo.gl/7d1ivX
Hermès Birkin auctioned for a record US$383,522 in Hong Kong: SCMP reports, world's most expensive handbag ever sold at auction is now this matte white Niloticus crocodile Himalaya Birkin 30, which was auctioned for HK$2.98 million at Christie’s today.
CULTURE
MIT Technology Review's guide to this year’s best holiday gifts https://goo.gl/sxpVfV
The NYT's 10 best books of 2017 https://goo.gl/FZn4dG
The FT's best history books of 2017 https://goo.gl/nUHEvz
The FT's best political books of 2017 https://goo.gl/ycu45V
'Thriller': How Michael Jackson and Quincy Jones made the bestselling album of all time: Rolling Stone reports, maybe it was a sign when the speakers in the studio burst into flames. It was late October 1982, and a full battalion of musicians and technicians were working around the clock at Westlake Recording Studios in Los Angeles, putting the finishing touches on Michael Jackson's highly anticipated follow-up to 1979's "Off the Wall," which had established him as a solo superstar. https://goo.gl/P2UZtc
SPORT
Ice Guardians: Exploring one of the most controversial and provocative positions in the history of sport, ‘Ice Guardians’ journeys into the lives of those who perform what is undoubtedly the toughest job within the National Hockey League today, the enforcer. Watch the trailer here: https://goo.gl/kiU7MD
World Cup 2018 draw will begin at 10:00 am ET - the American and Italian teams can sleep in.
Caracal Business Insider | November 29, 2017
North Korea, NAFTA, WeWork, Jimmy Fallon, Matt Lauer, Clemson
Caracal Business Insider | Daily
November 28, 2017
Curation and commentary from Marc A. Ross
Caracal Business Insider: Politics + Policy + Profits
Reporting from Alexandria, Virginia
ROSS RANT
The Three Es and what your organization can learn from WeWork's acquisition of Meetup
As you think about your 2018 marketing efforts, take a page from the WeWork merger of Meetup playbook.
Yesterday it was announced WeWork intends to buy Meetup for the sole purpose of getting more people to interact with WeWork via education, experience, and entertainment (The Three Es) - all in an effort to see the WeWork brand as a clubhouse for entrepreneurs and enthusiasts.
The big idea going forward = every retail, service, and consumer goods company with an office, conference room, store or open warehouse should learn from this - getting people to interact with your brand involves The Three Es coupled with off-hour engagement and maximizing your assets.
GEOECONOMICS
WSJ: North Korea missile launch shows ability to reach DC
NYT: North Korea tests a ballistic missile, in defiance of Trump
Nikkei: North Korea says new ICBM puts the entire US instriking distance
The first missile test in more than two months reaches the highest altitude yet.
The dangers of de-globalization: Watch G-Zero World with Ian Bremmer and global economist and author Dambisa Moyo. https://goo.gl/EnV95X
The pendulum of power swings back towards the state: Three reasons to expect a shift in the balance between governments and markets.
Economist - Zanny Minton Beddoes
Bitcoin crossed the $10,000 mark for the first time in its nine-year history.
Outrage in Beijing: Bloomberg reports, a pair of controversies in the Chinese capital — the mass eviction of migrant workers and allegations of widespread abuse at local kindergartens — have exposed the challenges facing President Xi Jinping as he works to improve the country’s quality of life while strengthening one-party rule.
Trump opens new front in trade battle with China: FT reports, US initiates first anti-dumping probe against major partner since 1985.
Trump gives Xi first taste of trade acrimony ahead: Pete Sweeney of Reuters writes, unimpressed with progress on North Korea and market opening, the White House has moved aggressively to target aluminium dumping. This is just an opening salvo in what looks set to be an acrimonious renegotiation of the world’s most important trade relationship.
China has a plan to rule the world
WP - David Ignatius
"China’s rise has been so rapid yet gentle in tone that it’s easy to miss how fast Beijing has expanded its ability to project power. The mesmerizing go-slow style of the pre-Xi years, summarized in the Chinese slogan “hide and bide,” has been replaced by what U.S. analysts now see as an open power play."
Belt and Road now leads to every Central, Eastern European nation: Caixin reports, China signs agreements with Estonia, Slovenia, Lithuania, and pledges billions in loans.
AFP: China warns of retaliation after fresh US trade probe
Five things to know about China’s new-energy vehicle policies: Caixin reports, subsidies are out, quotas are in as market becomes increasingly competitive. https://goo.gl/m6wtwi
Beijing evicts migrants onto cold streets, sparking outcry: AFP reports, dozen police swept through the pitch-black frigid hallways of tenement buildings in a ramshackle neighborhood of northern Beijing, posting eviction notices on every door with heavy thumps of their fists.
UK bows to EU demands on Brexit bill: FT reports, Britain agrees to total liabilities worth €100bn but will aim to pay less than half.
Britain to pay EU bills for decades: The Times reports, the UK government bowed to demands from Brussels to meet its long-term financial liabilities to the bloc.
It now costs the average Londoner 14.5 times their annual salary to purchase a home.
AMERICAN POLITICS
NYT: Tax bill clears Senate panel as support widens among GOP
Trump's erratic deal-making style leaves both parties' lawmakers distrustful: LAT reports, Trump, the self-professed deal-maker, once again has dealt a setback to a bipartisan legislative deal — this time with potentially significant consequences: the threat of a government shutdown.
Inside the White House, Michael Flynn pushed a proposal from a company he said he had advised: WP reports, the then-national security adviser asked his staff to turn a memo from a former business associate into a proposal for the president. Flynn’s advocacy for the project surprised some administration officials and raised concerns that he had a conflict of interest.
Detroit likes NAFTA: Executives from GM, Fiat Chrysler, and Ford urged VP Pence on Monday to tap the brakes on proposed changes to NAFTA that they say could add thousands of dollars to car costs in the United States.
WP: CNN disinvites itself from annual White House holiday party for press
ENTERPRISE
ESPN's big bet on fantasy: Axios reports, ESPN Fantasy sports app is driving a massive chunk of the network's digital traffic, and Disney executives are looking to replicate that success for other networks.
Nikkei: Lenovo sells off more real estate as core business struggles
iHeartRadio launches podcast network targeting Middle America: Axios reports, iHeartRadio's top country music radio host Bobby Bones is launching the Nashville Podcast Network, a podcast network built to lure Middle Americans into podcasts.
NYT: WeWork to buy Meetup, the service for bringing hobbyists together
@cnntech: @Airbnb users will be able to split the cost of a listing with up to 16 people.
SpaceX raised $100 million in new venture capital funding.
Wells Fargo faces fresh wrath over auto, mortgage operations: WSJ reports, a federal regulator has advised Wells Fargo’s board that it is weighing a formal enforcement action against the bank over improprieties in its auto insurance and mortgage operations.
Goldman Sachs warns that the highest valuations since 1900 mean pain is ahead https://goo.gl/rRPnUG
Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement.
Reuters: Uber's third-quarter net loss widens to $1.46 billion
TRENDS
Double-clicking on the Chinese consumer: A McKinsey reports suggests rising post-90s generation is emerging as a strong engine of consumption, in one of four important new trends in the Chinese consumer landscape. https://goo.gl/jbJXuB
The Instagram beauty shop: L2 reports, with the holidays around the corner, J.Crew is taking extra measures to ensure shoppers have an Instagrammable season. https://goo.gl/8xCML9
The city of Chicago is suing Uber for failing to disclose the 2016 data breach.
So long, new sedan: New research from KPMG suggests that shared autonomous vehicles could more than half the number of car purchases made in America by 2030. https://goo.gl/omASaS
Robots and employment: McKinsey Global Institute says as many as 375 million workers around the world will need to find new occupations or lose their livelihood to automation by 2030.
CULTURE
@TODAYshow: Matt Lauer has been terminated from NBC News. On Monday night, we received a detailed complaint from a colleague about inappropriate sexual behavior in the workplace by Matt Lauer. As a result, we’ve decided to terminate his employment.
Rolling Stone: 50 best albums of 2017 https://goo.gl/NH1dbL
Grammy Nominations 2018: Jay-Z and Kendrick Lamar lead the way https://goo.gl/qvGvNi
Jay-Z received eight nominations for his album “4:44”
Standford Politics: How Peter Thiel and the Stanford Review built a Silicon Valley empire https://goo.gl/NZkc1E
A sharp decline for Jimmy Fallon’s ‘Tonight Show’: NYT reports, the latest ratings show that viewers are tuning out NBC’s fun-and-games approach and flocking to the politically engaged Stephen Colbert and Jimmy Kimmel.
SPORT
NFL ratings: After 11 weeks, the National Football League's 2017-18 season's average TV ratings are down 6 percent, to 14.7 million viewers, when compared to the same time last year.
@AP_Top25: New college football playoff rankings:
1. Clemson
2. Auburn
3. Oklahoma
4. Wisconsin
Ex-Ohio State great widens lawsuit over commercial image use: AP reports, a former Ohio State and NFL star is asking a judge to let him expand a class-action lawsuit over allegations that marketing campaigns for dozens of big-time colleges and universities improperly used the images of thousands of current and former football players. Those athletes should be compensated, according to the proposed update of a lawsuit by ex-linebacker turned broadcaster Chris Spielman.