Marc Ross Daily: Tariffs, South China Sea, Coca-Cola, Go-Jek, NJ Devils, SpaceX

Tariffs, South China Sea, Coca-Cola, Go-Jek, NJ Devils, SpaceX

Marc Ross Daily
September 18, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia 

Marc Ross Daily  = Business News at the Intersection of Globalization, Disruption, and Politics

What's a Caracal?https://goo.gl/wDfPU6

Subscribe here: https://goo.gl/bSQKwA

TOP FIVE

✔️ Trump announces new tariffs on Chinese imports

✔️ Japan admits to South China Sea naval exercises

✔️ 'Support my Brexit deal or face no deal'

✔️ Coca-Cola is eyeing the cannabis market

✔️  Go-Jek aims to raise $2bn in fresh funding

GEOECONOMICS

Trump announces new tariffs on Chinese imports: WSJ reports, Trump said he will impose new tariffs on about $200 billion in Chinese goods and threatened to add hundreds of billions more to pressure Beijing to change its commercial practices, escalating trade tensions between the world’s two largest economies.

NYT: Trump hits China with tariffs on $200 billion in goods, escalating trade war

The fresh round of tariffs comes on top of $50 billion worth of Chinese products already taxed earlier this year.

Trump said the tariffs, which will hit everyday consumer products including electronics, food, tools, and housewares, will go into effect on Sept. 24.

FT: Trump imposes tariffs on $200bn of Chinese goods

Duties start at 10% and will increase to 25% next year if no deal is reached.

Bloomberg: China convenes tariff response meeting after Trump's $200 billion hit

FT: Japan admits to South China Sea naval exercises 

Tokyo’s acknowledgment could irritate Beijing despite warming relations.

For Japan’s aging military, the future is a gray area: WSJ reports, like the rest of Japan, the country’s military is getting older—and a shortage of young recruits has raised concerns among defense planners about maintaining the strength of its forces.

FT: Deal or no deal? Theresa May’s moment of truth on Brexit

EU leaders believe an agreement with the prime minister is possible but worry it will not be ratified in the UK.

'Support my Brexit deal or face no deal', says UK's May: AFP reports, British Prime Minister Theresa May has warned rebels in her party that unless they support her potential Brexit deal with the EU they will face an ugly no-deal split.

Reuters: Canada's Freeland returning to Washington for NAFTA talks as time runs short 


AMERICAN POLITICS

SCOTUS: The Senate Judiciary Committee will hold a hearing next week with Judge Brett Kavanaugh and the woman who has accused him of sexual assault.

Election 2018: 49 days away

Trump says tariffs will save American factories. History shows otherwise. NYT reports, after the United States imposed tariffs on Chinese tires in 2009, Chinese companies started building plants in the United States.

WSJ: Apple avoids tariffs on smartwatches, earbuds

Lobbying matters.

Jon Healey: Psst, President Trump! The Chinese aren't paying for the tariffs you're imposing. We are. https://lat.ms/2D5CIW9

FT: US port weighs cost of Trump’s trade war

Businesses at Baltimore hub fear impact of tariff battle with China on their livelihoods.

Ex-Trump adviser Flynn could be sentenced as soon as Nov 28: filing: Reuters reports, Trump's former National Security Adviser Michael Flynn, who pleaded guilty to lying to the FBI, could be sentenced as soon as Nov. 28, according to a joint court filing by prosecutors from Special Counsel Robert Mueller's office and defense lawyers on Monday.

Today: Trump hosts Polish President Andrzej Duda at the White House.

LAT: Trump's plan to create 'space force' would cost $13 billion over five years, Air Force says in first official estimate

AFP: Ex-NYmayor Bloomberg once again mulling White House bid 

ENTERPRISE

Facebook posted an ad for a human rights policy director; responsibilities include "coordinate and advise Facebook teams working on human rights, conflict prevention, peace-building, and related projects."

BI: The evidence is piling up that Amazon will choose Washington, DC, for its HQ2

Coca-Cola is eyeing the cannabis market: Bloomberg reports, Coca-Cola says it’s monitoring the nascent industry and is interested in drinks infused with CBD -- the non-psychoactive ingredient in marijuana that treats pain but doesn’t get you high. The Atlanta-based soft drinks maker is in talks with Canadian marijuana producer Aurora Cannabis to develop the beverages.

@JavierBlas: Is marijuana about to become another soft #commodities market à la coffee, sugar and cocoa? Demand is increasing, supply chain logistics would become more challenging, and companies would need soon price risk management futures and options?

SpaceX announces first lunar tourist for 2023 mission: WSJ reports, SpaceX’s first paying passenger will be Japanese billionaire Yusaku Maezawa, who is to blast off from earth in 2023, circle the moon and return, Elon Musk announced Monday. 

FT: Go-Jek aims to raise $2bn in fresh funding

Indonesia ride-hailing unicorn plans expansion into south-east Asia. 

TRENDS + BUZZ

The death of the cell phone call: Nearly half of all calls will be spam by 2019.

Bring your bot to work day: A new report says that by 2025, more than half of work tasks will be handled by robots, according to the World Economic Forum.

Want to eat here? First buy a multimillion-dollar condo: WSJ reports, luxury-apartment developers hire celebrity chefs and build residents-only restaurants and cocktail bars to attract foodies.

SPORT

Chargers try new media strategy in battle for L.A.: LAT reports, “It’s a long-term play for us; it won’t happen in one season or one year or even two or three,” Pollack said. “It’s setting the foundation, having the right people and the right brands and the right relationships to bring Chargers football and the Spanos family story, and all that we are, deeper into the L.A. market.” Pollack is well positioned to nurture the plan. He is a director on the L.A. Sports Council, on the board of advisors for the L.A. Sports and Entertainment Commission and on the executive committee for the USC Marshall Sports Business Institute.

Today = Champions League = Group Stage Matches

Barcelona v PSV Eindhoven @ 12:55 pm ET
Inter Milan v Tottenham @ 12:55 pm ET
Liverpool v PSG @ 3:00 pm ET

Bloomberg: NJ Devils expect $5 million this year in sports betting deals 

Marc Ross Daily: New Tariffs, Japan, Sadiq Khan, Two Buck Chuck, Sandra Oh, Larry Page

New Tariffs, Japan, Sadiq Khan, Two Buck Chuck, Sandra Oh, Larry Page

Marc Ross Daily
September 17, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia 

Marc Ross Daily  = Business News at the Intersection of Globalization, Disruption, and Politics

What's a Caracal?https://goo.gl/wDfPU6

Subscribe here: https://goo.gl/bSQKwA

TOP FIVE

✔️ Trump to announce new tariffs on $200 billion in Chinese imports

✔️ Japan = 20% now 70 or older

✔️ London Mayor Sadiq Khan calls for a second Brexit vote

✔️ Kavanaugh nomination in turmoil 

✔️ Where in the world is Larry Page?

ROSS RANT

Stress is caused by the things you don't do.
 

GEOECONOMICS

WSJ: Trump to announce new tariffs on $200 billion in Chinese imports

"Trump's decision—to go into effect within weeks—is designed to give the US more leverage in discussions with China over allegations that Beijing coerces American firms into handing over valuable technology to Chinese partners."

US, China ramp up trade threats, imperiling negotiation efforts: WSJ reports, Trump’s economic conflict with China is set to escalate this week, as the administration plans to unveil fresh tariffs on $200 billion in Chinese products entering the U.S. and Beijing debates new ways to retaliate.

Nikkei: China weighs skipping trade talks after US tariff threat

As trade war mounts, China’s Wall Street allies lose clout: NYT reports, Beijing long turned to big banks to help get its way in Washington, but the old back channels have proven ineffective when it comes to new trade tensions.

China plans to ask the World Trade Organization to impose sanctions on the United States for failing to comply with a ruling regarding its dumping duties, according to an agenda for the Sept. 21 meeting.

FT: Super typhoon leaves 64 dead in Philippines

Nikkei: Japan crosses new aging milestone, with 20% now 70 or older

Abe signals shift in priorities to easing labor shortages.

Korea talks lay the groundwork for second Trump-Kim summit: FT reports, Seoul tries to smooth tensions as denuclearization of North hits impasse.

Nikkei: Thailand to double airport capacity, surpassing Singapore's Changi

Airport high-speed railway could draw China-Japan investment, says minister.

Thomas Wright: The return to great-power rivalry was inevitable: With neo-authoritarianism on the rise, the old assumptions undergirding a common set of Western values just won’t do.

AFP: London Mayor Sadiq Khan calls for second Brexit vote

Brexit dilemmas top agenda at EU’s Salzburg summit: WSJ reports, European Union leaders will hold their first serious discussions on Brexit since March at a summit in Austria on Thursday as both the U.K. and the rest of the bloc step up preparations to reduce major economic disruptions if a deal isn’t reached.

Boost for May as EU backs Irish border plan: The Times reports, European Union is secretly preparing to accept a frictionless Irish border after Brexit in a move that raises the prospect of Theresa May striking a deal by the end of the year. In a concession to British concerns, EU negotiators want to use technological solutions to minimize customs checks.

High-tech solution raises deal chances.

Wolfgang Münchau: EU citizens in Britain should prepare for worst: If there is a hard Brexit, the status of Europeans in the UK will be uncertain.

Deutsche plans to shift more assets from London: FT reports, Blow to City as bank bows to ECB pressure and eyes moving 75% of its balance sheet

FT: Argentina to set out austerity budget

Allies of President Macri confident of support for measures to cut the deficit. 

AMERICAN POLITICS

Florence flooding threatens to last for days: WSJ reports, Florence doused the Carolinas for a third day with unrelenting rain that unleashed widespread flooding Sunday, and officials in the region warned residents that the menace would persist for days.

'Worst is yet to come' from Florence's drenching rains: Reuters reports, Florence kept dumping rain on North Carolina and officials warned residents that "the worst is yet to come" from a storm that has already killed at least eight people, as rivers inland were likely to flood.

The economy is humming, but Trump is tweeting. Republicans are worried: NYT reports, as Democrats enter the fall midterm campaign with palpable confidence about reclaiming the House and perhaps even the Senate, tensions are rising between the White House and congressional Republicans over who is to blame for political difficulties facing the party, with President Trump's advisers pointing to the high number of G.O.P. retirements and lawmakers placing the blame squarely on the president's divisive style. 

"This is very much a referendum on the president" -- Representative Tom Cole (R-OK)

House Election 2018: 

57% of strong Trump supporters believe it's unlikely Democrats win the House.

FiveThirtyEight website gives Democrats an 83.1% chance of winning control over the House.

Kavanaugh accuser comes forward over alleged assault: WSJ reports, a woman who has accused Supreme Court nominee Brett Kavanaugh of sexual assault when they were teenagers went public with her name, injecting immediate uncertainty into Republicans’ push to quickly confirm the next high-court justice.

NYT: Kavanaugh nomination in turmoil as accuser says he groped her decades ago

SCOTUS: The Senate Judiciary Committee's planned September 20 vote on Kavanaugh's nomination is expected to go on.

The Senate is in session this week, but the House is not.

Senate Majority Leader Mitch McConnell (R-KY) is planning to keep the chamber in session for much of October.

LAT: A lot has changed in America's heartland. One Iowa town drew the line at its movie theater https://lat.ms/2OwFzJj

Immigration. Technology. Trump.

Webster City — population about 7,700 — is a miniaturist portrait of a changing nation.

Bloomberg: Dimon Rules out a run in 2020, regrets ‘machismo’ in Trump snub

Big Tech: Representatives from six major online companies, including AT&T Inc. and Google, have been invited to testify before the Senate Commerce Committee on Sept. 26 about their consumer data privacy practices. The hearing is called "Examining Safeguards for Consumer Data Privacy."

ENTERPRISE

Where in the world is Larry Page? Bloomberg reports, while Alphabet faces existential challenges, its co-founder is exercising his right to be forgotten.

The Hustle: The inglorious rise of Two Buck Chuck: The tale of two men, one wine brand, and the economic revolution of an entire industry. http://bit.ly/2Oo0u0S

WSJ: Time Magazine sold to Salesforce founder Marc Benioff for $190 million

Taxify rides motorbikes to lead over Uber in Africa: WSJ reports, Estonian startup Taxify has outpaced Uber in six African countries: Both are now tapping motorbikes, a popular mode of transportation for hire in the region.

Native Deodorant, an online-only brand, will go on sale in Target.

Walmart finally makes it to the Big Apple: WSJ reports, for years, the giant retailer faced political resistance in New York City, but now it has a foothold through its e-commerce site, Jet.com, which is starting a new push.

NYT: Mary Meeker, the ‘queen of the internet,’ is leaving Kleiner Perkins to start her own fund

FT: Coca-Cola to tap Costa’s coffee supply chain

Shift to bricks-and-mortar retail not a priority after Costa deal.

Netflix looks to walk away from today's Emmy awards with more trophies than HBO, potentially toppling the cable network from its perch for the first time in 17 years.

AFP: JPMorgan Chase chief: banking system healthy 10 years after meltdown

Bloomberg: Henri Bendel,123-year-old luxury retailer, closes the doors 

TRENDS + BUZZ

How to stay fit forever: 25 tips to keep moving when life gets in the way http://bit.ly/2Oso9NQ

FT & McKinsey business book of the year award: The shortlist https://on.ft.com/2Ou0Cfe

Future of capitalism, from universal basic income to India’s rise, dominates annual prize.

A Trump effect at journalism schools? Colleges see a surge in admissions. WP reports, at the University of Maryland, an estimated 130 freshmen are entering the journalism college this fall, up 50 percent compared with the previous year.

CULTURE

Today: The Primetime Emmy awards ceremony will be held in Los Angeles

LAT: Emmys preview: Will Sandra Oh make history? What comedy series takes over for "Veep"? How many more Emmys could "Saturday Night Live" possibly win? 

HBD: Bryan Singer, film director, The Usual Suspects (1995), Bohemian Rhapsody (October 2018), 53

SPORT

An ex-owner of the Dodgers takes another swing in Marseille: NYT reports, Frank McCourt’s ownership of the Los Angeles Dodgers is not remembered fondly, but he is hoping the lessons he took from that experience help with his new team, Olympique de Marseille.

FT: Ronaldo: Why Juventus gambled €100m on a future payday https://on.ft.com/2OrVc4p

“It was the first time that the commercial side and the sporting side of Juventus came together in assessing the costs and benefits [of a signing],” says Mr Agnelli, a scion of the billionaire family that has owned the club for 95 years. “The opportunity of Ronaldo was thoroughly assessed . . . and it made sense, both on and off the pitch.”

AP: Scott Dixon adds fifth IndyCar championship to resume 

Not all champions win a championship

“recognize certain traits that seem to be in every champion: passion, commitment, confidence, pride in performance, high standards of excellence, relentlessness, perseverance, and the ability to perform in adverse circumstances.” ― Nick Saban

As the football season in America formerly kicks-off, many fans, coaches, and pundits will be talking about winning championships when in reality only a handful of teams have a chance to secure the top trophy.

Going back to 1998 in the NFL, only twelve teams have won the Super Bowl, and five of those teams won multiple championships.

It is even worse in college football where 130 schools compete in the first division. Consider in the last twenty years the national championship has gone to only twelve schools, with five schools claiming multiple national championships.

Across the pond in England and Wales, only six clubs have won the Premier League since its inception in 1992. 

See the pattern?

Lots of football games played, but only a handful of champions.

Most of the teams playing this weekend have no chance of winning a championship and frankly are already eliminated from hoisting the silverware.

Yes, the Detroit Lions or the Miami Dolphins could win the next Super Bowl, but it is highly unlikely.

And sure, across decades of contests, a team like Leicester City FC (the club won the 2015–16 Premier League with preseason odds of 5000 to 1) will win a major title, but it is more of a magical carpet-ride fluke than a pattern.

So why do thousands of football players suit-up, put on the pads, tie-up the cleats knowing that won't win a championship?

It is more important for them to be a champion than to win a championship.

As the famed golden-headed Fighting Irish of Notre Dame enter their football stadium in South Bend, they are reminded to "play like a champion today."

They are reminded not to win a championship, but to play like a champion.

Steven Pressfield calls this mindset turning pro - or moving from amateur to professional. Moving from the gratification of winning a championship to the satisfaction of being an intentional and consistent champion.

When we decide to play like a champion and be a pro we find our real power and focus.

Winning a championship is impacted by numerous factors, events, situations, and outcomes, that we cannot fully control.

Being a champion and a pro consistently is something we can fully control.

Being a champion and a pro allows us to become who we always were intended to be.

Make the mind-shift this week to embrace professionalism and to live out as a champion.

Lose yourself in your work and in the moment. 

Be a champion. 

-Marc A. Ross | Caracal Founder + TLC