ITK Daily | April 14

Happy Friday.

Here’s today’s ITK Daily.

To be ITK, know this:?

ITK Radio | Aaron Kwittken

On this episode of ITK Radio, a conversation with Aaron Kwittken.

Aaron is currently the Founder + CEO @ PRophet.

PRophet (prprophet.ai) is the first-ever generative and predictive AI SaaS platform designed by and for the PR community. The platform uses AI to help modern PR professionals become more performative, productive, and predictive by generating, analyzing, and testing content that predicts earned media interest and sentiment.?

Listen or watch?here.

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Why the US didn’t notice leaked documents circulating on social media: Current and former officials say there’s no one agency responsible for tracking classified document leaks.?Politico

+ A trove of leaked Pentagon documents were circulating online for months without being discovered by the US government — raising questions about how the administration missed them.

+ “This is not your typical leak where it goes to the media or to a foreign power,” the former US intelligence official said. “It’s going to make it a bit of a challenge for the FBI to try to figure out what’s going on here.”

Are you not entertained? Macron comments spark global backlash — again: The French president’s talk of strategic autonomy has brought uncomfortable attention to Paris’ record of aid for Ukraine.?Politico

Is the French President's vision for Europe realistic??Emmanuel Macron's comments on Taiwan caused a stir. They also drew attention to EU strategic autonomy, a pet project he has promoted for years. But how realistic is it??DW

+ Macron's model of economic sovereignty is based on the five pillars of competitiveness, industrial policy, protection of markets, reciprocity in trade relations, and cooperation.

+ Macron seems to be trying to position France as a great power by attempting to position Europe as one — and then pretending France's interests are the same as Europe's.

+ Emmanuel Macron, it seems, may also be aware that he might not get his way when it comes to strategic autonomy. He concluded his speech in The Hague with the words, "I am a dreamer."

Europe divided over Macron's remarks on Taiwan: Le Monde reports on a state visit to the Netherlands, the French president tried to placate the Europeans after his controversial comments on Taiwan, China, and the United States. But the fragile unity built between the EU-27 since Russia's invasion of Ukraine has been shaken.

Turmoil over Macron’s Taiwan remarks exposes EU divisions on China: FT reports the French president seeks to reassure allies that Paris is not changing course after Beijing trip.

Europe, US must stand together, says UK chancellor in wake of Macron’s China comments: Politico reports Jeremy Hunt says US and European unity defending democracy is ‘the big lesson of the last 100 years.’

China will keep rolling out the red carpet for France and other European countries it sees as useful Westerners: Xi and Putin are seeking to build a post-Western world order together, writes China expert Alice Ekman who believes Macron's recent visit to China highlighted major differences in Europe over the way for the EU to emerge as a global "third pole."?Alice Ekman

+ The defense of national interests in the strict sense is legitimate but insufficient if it does not take into account the profound divergences of political interests and ideological rivalries that now polarize the world.

In China, Germany's Baerbock says EU on same page as Macron: Germany's Annalena Baerbock is the latest top European politician to visit China after landing in Tianjin. She backed Emmanuel Macron's controversial comments on the EU and China.?DW

Germany-China: Struggling to shake off Beijing dependencies: The economies of China and Germany have become hugely intertwined. The dilemma: how to reposition Germany in the emerging geopolitical tensions with Beijing.?DW

+ For Germany, China is the world's most important trading partner. That's followed by the United States, which has been catching up slightly in recent years. In terms of imports from the Asian powerhouse, one can rightly say Germany is dependent on China. That's the dilemma facing German Foreign Minister Annalena Baerbock on her current visit to China, where she will sound out opportunities for future cooperation while also trying to reduce Germany's overreliance on Beijing.

Germany's niche companies are a model for life after globalization: Mid-sized companies are reducing their dependence on China, dominating their industries, and creating a roadmap to succeed in a new world economy.?Adrian Wooldridge

+ Germany was the West’s biggest winner from the past 30 years of globalization. Russia provided cheap energy. Emerging markets provided cheap labor. Everyone who was anyone wanted to own a Mercedes or a BMW or an Audi. And the cherry on the Black Forest cake: The United States picked up the bill for defense while the Germans devoted all their energies to making money.

+ Globalization brought psychic benefits, too. Germany’s two previous irruptions onto the world stage — in 1914 and 1939 — had occurred in the name of nationalism and militarism. The new age of globalization allowed Germany to showcase its ability to work across borders in the name of universal prosperity.

+?Germany only had 28 companies in the Fortune 500 in 2020 compared with China’s 134, America’s 130, Japan’s 62 and France’s 40.

+ It has more than a thousand companies that rank in the top three in their respective markets.

+ These companies are “hidden” in three senses: They dominate tiny global niches, they prefer to keep themselves to themselves and they are usually located in small towns.

+ It’s not clear exactly what the new age of globalization will entail — deglobalization, regionalization, trade wars or, perhaps most likely, a confusing mixture of more globalization in some areas and less in others — but, as our three examples illustrate, Germany’s hidden champions have three qualities that stand them in good stead for the storms to come.

EU seeks quick critical minerals deal with US: official: AFP reports the European Union is willing to proceed "as fast as possible" on a critical minerals deal with the United States, a top bloc official said Thursday, as both sides work to end a spat over Washington's ambitious green incentive plan.

Germany is on the brink of legalizing cannabis: Le Monde reports although the bill drawn up by the German coalition has been watered down, it does allow for the establishment of clubs that will be legally able to grow cannabis and supply it to their own members. This reform was criticized by the opposition and the police union.

WP: Biden, the American president, seems awfully at home in Ireland

Why do American presidents play up their Irishness??Joe Biden is the latest in a long line to visit the old country.?Economist

+ For a small, militarily neutral country, Ireland punches well above its weight when it comes to coveted visits by serving American presidents.

+ Eight have gone since John F. Kennedy became the first to do so in 1963.?

+ One hundred percent Irish by blood, and the first Roman Catholic to occupy the Oval Office, Kennedy inspired an almost religious devotion during his visit.

Throughout France, demonstrators await the decision of the Constitutional Council: 'If we didn't believe in it anymore, we wouldn't be here': On the twelfth day of pension reform protests on Thursday, the turnout had again dropped. Demonstrators had turned their hopes towards the Constitutional Council, which is due to render its decision on the constitutionality of the reform on Friday.?Le Monde

LVMH’s Paris headquarters stormed by protesters: WSJ reports the nationwide protest movement against President Emmanuel Macron’s pension overhaul morphed into a populist rebuke of France’s establishment.

North Korea missile eludes radar, posing challenge for Japan defense: Nikkei reports varying altitude, launch, and fuel type complicate tracking efforts.

ADB readies $15bn in climate financing for emerging Asia: president: The Asian Development Bank will provide an additional $15 billion in funding for emerging markets to tackle climate change under a new, faster lending model, President Masatsugu Asakawa told Nikkei.

How China changed the game for countries in default: The fragile process for dealing with insolvent economies is now at risk of unraveling completely owing to a powerful and unpredictable force in sovereign debt.?FT

+ The IMF thinks more than 60 countries are in debt distress or in danger of becoming so.

+ Some experts say Beijing’s lending spree to developing countries and refusal to play by western-established rules represents the single greatest impediment to government debt workouts and threatens to leave some countries in debt limbo for years.

+ Yu Jie, a senior research fellow on China at think-tank Chatham House, believes Beijing’s stance “is less about economic rationalities and more about geopolitical competition.”

Burkina Faso declares a general mobilization in the face of increasing jihadist attacks: Le Monde reports Captain Ibrahim Traore, Burkina's transitional president, has set a goal of recapturing 40 percent of the country's territory, which is controlled by jihadists affiliated with Al-Qaeda and the Islamic State group.

Italy’s growing interest in the Arctic?Dr. Tiziana Melchiorre

New name for Thule Air Base in Greenland: High North News reports Thule Air Base, the Department of Defense’s northernmost installation, has been renamed Pituffik Space Base. The renaming recognizes Greenlandic cultural heritage and better reflects its role in the US Space Force.?

What de-collarization? The dollar rules the world: Dollar hegemony is beneficial for the US, its government, and most of its citizens — and is likely to last for the foreseeable future.?Tyler Cowen

+ By one estimate, the dollar is a part of 88% of all international transactions.?

+ The euro at 31% is only a modest competitor (since a transaction may involve two currencies, the total may exceed 100%).?

+ The euro, unlike the dollar, will never be tied to a single national government, and the European Union does not come close to the military might of the US.

+ The yuan is estimated at only 7% of that total of international transactions, and China seems unwilling to open up its capital markets, as that could lead to rapid capital outflows and possibly a financial crisis.

+ Economics can sometimes be complicated or hard to explain. When it comes the US dollar, it is neither. The dollar will retain its focal role, which is good for the US, and the reasons are simple and intuitive.

Brazil’s Lula calls for end to dollar trade dominance: FT reports the leftist president lends his voice to Beijing’s efforts to boost renminbi’s role in global commerce.

Brazil's Lula lands in China for state visit: DW reports the Brazilian president has arrived in China ahead of a high-level meeting with Xi Jinping on Friday. Lula plans to rebuild the relations that were damaged under his predecessor.?

Chile moves to a 40-hour work week: 'There's more to life than work': Le Monde reports the measure, resurrected by President Gabriel Boric, was unanimously approved by the Senate and by a large majority in the lower house.

‘A third option’: Haley-Scott rivalry intensifies in GOP presidential race: The Iowa split screen featuring the two South Carolinians amounted to the opening round of a frenetic competition within the 2024 primary.?WP

Ron DeSantis, down in polls and taking flak from Donald Trump, looks to rebound: WSJ reports Florida governor and allies work to sharpen message in a first TV ad and early primary states.

How much is an early presidential primary worth? Georgia hopes $1 billion: NBC News reports the battleground state has a chance to leapfrog Iowa in Democrats' primary calendar, but it needs GOP support. Advocates hope economics can bridge the political divide.

‘It’s a beautiful state, but it’s environmentally fragile’: Why New Mexico is considering a ‘green amendment’: It’s one of 15 states considering measures that would make the right to clean air, water, and soil a constitutional amendment.?FC

+ Green amendments, which establish in state constitutions the fundamental right to clean air, water, and soil and other environmental priorities—including a stable climate—are making slow but steady progress around the country.?

+ New Mexico is among 15 states where such measures have been considered this year, and although the green amendment didn’t advance out of a legislative committee, Sedillo Lopez said she’ll reintroduce it in the future.?

The Verge: NPR becomes first major news organization to leave Twitter

Apple in talks with suppliers to make MacBooks in Thailand: Nikkei reports the US tech giant turning out Apple Watch in Southeast Asian country.

Far North Fiber one step closer to pan-Arctic connectivity: Far North Fiber’s plans call for a 15,000 km system that would connect Japan to both Finland and Ireland via the fabled Northwest Passage. Along the way, it would offer connectivity to Arctic destinations in Alaska, Canada, and Greenland.?High North News

+ Far North Fiber’s plans call for a 15,000 km system that would connect Japan to both Finland and Ireland via the fabled Northwest Passage.?

+ Along the way it would offer connectivity to Arctic destinations in Alaska, Canada, and Greenland.

+ It is estimated that the approx.15,000 km long submarine cable system will be operational by the end of 2026. The project has received funding from the EU's Connecting Europe Facility (CEF Digital).

We must slow down the race to God-like AI: I’ve invested in more than 50 artificial intelligence start-ups. What I’ve seen worries me.?Ian Hogarth

+ The writer of this essay is an investor and co-author of the annual “State of AI” report.

+ There are limits to this “intelligence”, of course. As the veteran MIT roboticist Rodney Brooks recently said, it’s important not to mistake “performance for competence.”

FTX?has recovered more than $7.3 billion in assets.

HBO’s run as a mass-market streaming brand comes to a merciful end?Bloomberg

+ HBO can once again stand for what HBO does best, making innovative un-TV, pushing new cultural boundaries, wowing critics and racking up Emmy awards — without having to be all things to all people. That’s a job much better suited for a service named Max.

End of the gas-engine Camaro opens a new door for muscle cars: NYT reports GM is ending production of the classic American sports car, but executives say an electric version is likely. Corvette is already planning one.

A classic American car is having an identity crisis: Ford’s electric Mustang, the Mach-E, is attracting an unusual bunch of drivers—including me.?Katherine J. Wu

Your email does not constitute my emergency?Adam Grant

+ For most of human history, being responsive meant paying attention to the needs of a small group of people in your immediate vicinity: family, friends, neighbors, colleagues.?

+ Now there’s no limit to the number of people who can barge into your inbox, ping you by text, and slide into your DMs. Digital overload cries out for us to redefine what it means to be responsive. The true test of a relationship isn’t the speed of the reply. It’s the quality of attention you receive.

Cannes Film Festival: Here are the films competing this year: The 76th edition of the Cannes Film Festival will feature new work by Wes Anderson, Martin Scorsese, and Steve McQueen.?Le Monde

+ Wes Anderson's Asteroid City will alone bring a cavalcade of stars to the red carpet, including Tom Hanks, Margot Robbie and Scarlett Johansson. It is competing among 19 films for the top prize Palme d'Or when the festival returns to the Cote d'Azur from May 16 to 27.

In competition:

Asteroid City by Wes Anderson

The Zone of Interest by Jonathan Glazer

May/December by Todd Haynes

Monster by Hirokazu Kore-eda

The Old Oak by Ken Loach

Perfect Days by Wim Wenders

About Dry Grasses by Nuri Bilge Ceylan

Fallen Leaves by Aki Kaurismaki

Il sol dell'avvenire by Nanni Moretti

Four Daughters by Kaouther Ben Hania

Club Zero by Jessica Hausner

Anatomy of a Fall by Justine Triet

La Chimera by Alice Rohrwacher

Shanghai Youth by Wang Bing

Banel et Adama by Ramata-Toulaye Sy

Firebrand by Karim Ainouz

Rapito by Marco Bellocchio

The Pot au Feu by Tran Anh Hung

Last Summer by Catherine Breillat

Time 100: The most influential people of 2023?Time

The wave-conquering, metaverse-crashing life of Kai Lenny: Treated as an outcast in Maui’s cool-kid surf culture, he went on to master nearly every extreme water sport. No wonder the tech elite has a crush on him.?Wired

+ Lenny chased professional opportunity wherever he found it: windsurfing when it was the most popular water sport on earth; stand-up paddleboarding, or SUP, when that replaced windsurfing and briefly became the world’s fastest-growing water sport; kitesurfing when it seemed like the Next Big Thing; and then, of course, big-wave surfing.?

+ Lenny accumulated what has to be the most diverse portfolio of extreme water sport wins: In addition to numerous contest victories in all his disciplines, Lenny was named 2009’s windsurfing rookie of the year and was the 2013 Vice KSP Kiting World Champion, became a world-record holder in the Molokai-to-Oahu prone paddleboarding race, and won eight world titles in SUP, making him the latter sport’s most dominant athlete.

Washington Football Team: Josh Harris reached a deal to buy the Washington Commanders for $6 billion—the largest amount paid for a pro US sports team.

AFP: NFL introduce quarterback-specific helmets

WTA returns to China despite concerns for tennis star Peng Shuai: FT reports the tour cannot confirm player’s safety but says others would ‘pay an extraordinary price’ for staying away.

Enjoy the ride + plan accordingly.

-Marc?

Marc A. Ross | Chief Communications Strategist @ Caracal

Caracal produces ITK Daily.

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