ITK Daily | May 12

Global Street Smarts.

Happy Friday.

Here’s today’s ITK Daily.

To be ITK, know this:?

SCMP: Japan PM Kishida’s Africa tour lays groundwork for G7 summit, as China and Russia concerns loom large

+ Getting the African countries to take active measures against Russia will be difficult if they are not offered strong incentives in exchange, one analyst notes.

+ While the impact of Kishida’s tour is ‘marginal, it can still send ‘a message of solidarity’ that it intends to take the continent’s concerns seriously.

The G7 struggles to find unity over China’s economic bullying: This month’s summit will show the rich democracies’ club displays a range of attitudes about how to tackle coercion.?Alan Beattie

+ If the war in Ukraine and the US-China conflict mean the global economy is all about geopolitics now, the G7’s time has surely come.?

+ Vladimir Putin’s aggression has caused the G7 to band together with other rich democracies including the rest of the EU, Australia and so on and label themselves the “like-minded countries”

+ The US wants a vigilante posse, not a victim support group. It’s easy to assert the principle of countries banding together to resist economic coercion. It’s going to be rather harder to get political consensus around how to do it.

G7 seeks to bolster Russia sanctions as China and India fill gap: Nikkei reports financial restrictions to accelerate shift away from the dollar.

Germany sets stage for G7 clash with push to endorse gas: FT reports Berlin at odds with UK and France over support for public investment in fossil fuel despite climate impact.

Japan’s artificial intelligence strategy council holds 1st meeting with aim to create rules for AI use: Yomiuri Shimbun reports the government held the first meeting of its artificial intelligence strategy council on Thursday to discuss the direction of policy related to AI.

Prime Minister Kishida wants Japan to take lead in generative AI regulation: NHK reports Prime Minister Kishida Fumio says Japan, as this year's Group of Seven chair, must take a leadership role in setting global rules for generative artificial intelligence.

Don’t isolate China, Brussels tells EU capitals: Get ready for the Taiwan crisis to blow up but don’t make China ‘more foreign,’ EU document recommends.?Politico

+ The EU’s high command is calling on European governments to keep talking to China amid deepening tensions between Washington and Beijing.

+ The European Union’s diplomatic arm wants member countries to “be prepared” for a potentially critical escalation in the crisis over Taiwan, warning that a military conflict would upend the vital supply of microchips to Europe.?

Japan, South Korea, US radar link to reduce missile blind spots: Nikkei reports the plan to pave the way for faster, more accurate response to North Korean launches.

Caught in China-US rivalry, South Korea is tempted by military nuclear capacity: At the end of April, South Korea and the United States signed the Washington Declaration on nuclear weapons. But Seoul remains concerned about the threat posed by its northern neighbor.?Le Monde

Chinese chipmaker plans listing after clearing US export controls: FT reports ChangXin Memory Technologies to raise funds for production expansion following assurance on American equipment supplies.

US and China hold talks on global security in effort to defuse tensions: FT reports US national security adviser Jake Sullivan meets China’s top diplomat Wang Yi in Vienna.

US sanctions on China defense chief loom over chance for talks: Nikkei reports that Beijing seeks rollback; Washington says still open to dialogue.

The fall of empires preys on Xi Jinping’s mind: As economic growth slows, so will the president’s anxiety.?Economist

+ Since (Xi) took power more than a decade ago, he has often mused on the inconstancy of national greatness and threats to the party’s rule. History clearly haunts him.

SCMP: Xi Jinping signals fresh drive to move state institutions out of Beijing

+ During a tour of Xiongan New Area, the Chinese leader calls for greater efforts to move government, academic and financial headquarters out of the capital.

+ Xi is accompanied by a number of senior officials in a probable sign that the relocation process will be speeded up.

Turkish presidential candidate ?nce quits race days before vote: FT reports withdrawal set to boost opposition leader’s chances of unseating President Recep Tayyip Erdo?an.

Turkey’s choice could not be starker: more cruelty under Erdo?an, or the return of justice and hope: The country could finally tear off the straitjacket it has worn for years. But its president is a tiger caught by the tail – what will he do if he loses??Ece Temelkuran

Erdogan's defeat in the Turkish presidential election is secretly hoped for in Paris, Berlin, and Washington: The geopolitical ramifications of a change in power in Ankara, long considered unrealistic, are now being taken seriously by Western countries.?Philippe Ricard?

Even if Erdogan is defeated, Turkey is still up for grabs?Soner Cagaptay

Reuters: Ukraine's Zelenskiy expected to meet pope on Saturday -sources

Reuters: Spanish PM will ask Biden to listen to China, Brazil on Ukraine

How Russia’s rich get their luxuries now: NYT reports more than a year into Vladimir Putin’s invasion, the web of global trade has adjusted to Western sanctions, with a network of middlemen sending cars, electronics, and more to Russia.

Russian plot to oust Moldova’s president ‘being run from Britain’: A former police chief living in London denies leading Putin’s proxy effort to install a pro-Kremlin government.?The Times

The Times: South Africa accused of arming Russian military in Ukraine

US accuses South Africa of supplying arms to Russia: FT reports the claim worsens foreign policy crisis for Cyril Ramaphosa’s government over ties to Kremlin.

UK confirms it’s delivered long-range missiles to Ukraine: Politico reports UK defense secretary says the move is a ‘calibrated and proportionate response to Russia’s escalations.’

UK Conservatives head right for the exit?Matthew d'Ancona

+ After 13 years governing the United Kingdom, the Conservative Party is bracing for eviction from office. On May 4, it was pummeled in local elections across England, losing more than 1,050 council seats and securing a pitiful 26 percent of the popular vote.

+ The general election must be held by Jan. 28, 2025, at the latest and will almost certainly take place next year.

BOE: The Bank of England raised interest rates to their highest levels since 2008, from 4.25% to 4.5%.

Italy to hold talks with China about exiting Belt and Road Initiative: Prime Minister Giorgia Meloni says ‘debate is open’ on whether to leave Xi Jinping’s foreign investment program.?FT

+ Italian officials say Meloni’s government would ideally like to find a way to extricate itself from the BRI — without provoking Beijing’s wrath, or being subjected to punishing retaliation.

+ “Given the state of relations between the US and China, we cannot remain an ally of the US and at the same time remain in the BRI,” said Stefano Stefanini, Italy’s former ambassador to NATO. “We have to try to negotiate a peaceful — or [the] least damaging possible — exit with the Chinese.”

Italy’s Meloni likes one French idea: Its presidency: Italian leader looks to make controversial — and long-touted — changes to the country’s constitution.?Politico

+ This week, Meloni set out her plans to give more powers to the head of government, potentially transforming the traditionally weak leader into a power broker directly elected by voters.

+ Italian prime ministers are appointed by the president after national elections and can be dismissed by parliament at any moment, according to the country’s constitution.

+ Meloni’s favored option is to adopt a so-called semi-presidential system that would turn the president of the republic from a politically neutral and ceremonial figurehead into an executive leader directly elected by citizens every five years.?

Europe first: Macron hits the gas in transatlantic subsidy race with EU carmaking cash: French president takes a first concrete step in countering Biden’s ‘Buy American’ green subsidies.?Politico

+?France, home to major carmakers like Renault and Stellantis, will tailor its existing measures that encourage green vehicle purchases to specifically reward European manufacturers by the end of this year, the president said, calling on the rest of the European Union to take similar action.

+ "We will be the first European country to reform the criteria for the allocation of the car bonus," Macron said in a speech at the Elysée Palace during an event on re-industrialization, where EU Internal Market Commissioner Thierry Breton also took the floor. "It's a small revolution that we want to bring to the European level," Macron said.

Bloomberg: Macron gets boost as France extends lead in investment ranking

+ EY survey shows France beat UK, Germany in attracting projects.

+ Macron seeks to reboot economic agenda after pensions debacle.

Quebec government rejects Trudeau's immigration plan, fears decline of French: CBC reports Quebec MNAs say the federal plan is incompatible with the protection of French.

Venezuela brain drain enriches Panama and other neighbors: In Panama, the expats have started more than 5,500 businesses and are contributing more than $200 million a year in taxes and fees.?Bloomberg

+ Migration experts estimate some 2 million Venezuelans with advanced degrees now live outside their country.?

+ At least 7 million Venezuelans live outside their homeland, the largest concentration in neighboring Colombia.

Reuters: Mexico cooperating with US to avoid chaos at border as Title 42 ends

Bloomberg: Mexico sent guard to south border before migration change

+ Ending US pandemic migration policy expected to impact arrival.

+ Migrants from Venezuela, Ecuador, Haiti, and Honduras in Mexico.

The second phase of the Biden presidency?David Brooks

Hollywood mogul pledges ‘all the resources’ Joe Biden needs to win in 2024: FT reports Jeffrey Katzenberg bats away concerns over president’s age after poll showing a big lead for Trump.

CNN leadership under fire after ‘disastrous’ Trump town hall: WP reports chief executive Chris Licht praised host Kaitlin Collins and defended inviting Donald Trump and a Republican audience for the live town hall event.

CNN brings Donald Trump back: What a disaster. But maybe he can be defeated in a big, needed brawl for the GOP nomination.?Peggy Noonan

+ "Well, that was a disaster, a politically historic one. It situated Donald Trump as the central figure of the 2024 presidential cycle, certainly more compelling than the incumbent or the other competitors. It will have an impact on the campaign’s trajectory."

+ "When it was over I thought, of CNN: Once again they’ve made Trump real."

+ "You’re tickled by his boldness, his fearlessness, and when the lie drives the media and the stuffed shirts mad, you’re delighted."

+ "He’s subverting the elites and the corrupt power structures they’ve erected. And the great thing is you’re in on the joke, on the mischief. You get to take part."

+ "In a big lonely country that has power. I suspect he knows this."

Bloomberg: Elon Musk says he’s stepping down as Twitter’s CEO

NBCUniversal’s Linda Yaccarino is in talks to become Twitter CEO: WSJ reports Yaccarino is chairman of global advertising and partnerships at NBCU. Twitter owner Elon Musk said earlier he had picked a new chief executive without naming the person.

CEO of ChatGPT maker OpenAI to testify to Congress: Sam Altman, the OpenAI chief, will appear for the first time as AI scrutiny soars in Washington.?WP

How Google is looking to stay ahead in artificial intelligence: Under pressure, the tech giant announced new integrations of artificial intelligence tools into its search engine and various other services, indicating a shift in the company's strategy.?Le Monde

The companies trying to make live shopping a thing in the US: The market for selling goods in real time online is relatively small, but a number of start-ups and big tech names are betting American consumers will catch on.?NYT

+ The United States’ nascent live shopping market is estimated to bring in $32 billion in sales this year, according to the retail consulting firm Coresight Research.

+ Alongside Poshmark, QVC’s parent company Qurate recently started Sune, a live shopping app targeting Gen Z. Last year, Walmart, YouTube and eBay added or expanded their live shopping features.

+ “We believe shopping is not just about transaction. It’s about experience,” said Liyia Wu, chief executive and founder of the live shopping start-up ShopShops. Live shopping can simulate “an offline shopping experience online,” she added.

Amazon falls behind Walmart in battle for India's online shoppers: Controversial $16 billion Flipkart deal gives Walmart an e-commerce edge.?Nikkei

+ Walmart's Flipkart controlled 48% of the Indian online retail market last year, while Amazon had 26%

Kia aims to sell 1m custom electric delivery trucks, taxis in 2030: Nikkei reports the South Korean automaker sees an opening in the market where major companies lag.

Why Johnny Depp and Saudi Arabia are new BFFs: By backing Cannes Film Festival opener 'Jeanne du Barry' and courting its mercurial star, the Gulf nation is continuing its post-Khashoggi push for legitimacy in the global film community. So far, it’s working.?THR

Johnny Depp joins LIV...

Striking writers find their villain: Netflix: Fear of protests prompted the streaming giant to shift an anticipated presentation for advertisers to a virtual event and a top executive to skip an honorary gala.?NYT

+ The streaming giant has emerged as an avatar for the writers’ complaints.

+ The writers, who are represented by affiliated branches of the Writers Guild of America, have said that the streaming era has eroded their working conditions and stagnated their wages despite the explosion of television production in recent years, for much of which Netflix has been responsible.

+ In Los Angeles, Netflix’s Sunset Boulevard headquarters have become a focal point for striking writers.

+ “I shared my Netflix password. It’s ‘PAY ME’!”

Requiem for MTV News: MTV News is now officially gone. The outlet’s most legendary host, Kurt Loder, reflects on what was once “a freshly hatched, 24/7 fun factory” where “everything seemed possible.”?TDB

How MTV broke news for a generation: MTV News bridged a gap between news and pop culture without talking down to its young audience. As it prepares to shut down, Kurt Loder, Tabitha Soren, Sway Calloway, and others reflect on its legacy.?NYT

+ Boxers or briefs?

Enjoy the ride + plan accordingly.

-Marc?

Marc A. Ross | Chief Communications Strategist @ Caracal

Caracal produces ITK Daily.

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