ITK Daily | October 26

AUKUS, Israel, LinkedIn, EVs, Michigan Wolverines, plus 1,000 more actionable insights.

ITK Daily is geopolitical business intelligence for communications pros.?

Happy Thursday.

Here’s today’s ITK Daily.

To be ITK, know this:?

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The geopolitics of AUKUS + business implications

AUKUS is a big bet.

This is a big bet that places energy, resources, technology, and the attention of Australia, the United Kingdom, and the United States firmly in the Indo-Pacific for multiple generations.

The geopolitical business implications of AUKUS are three-fold:

1) The AUKUS alliance will further stabilize the friendship between the United States, Australia, and the United Kingdom, securing this trilateral relationship for generations.

2) AUKUS will be a lasting feature of British foreign policy and the clearest example of what the tilt to the Pacific and the talk of ‘global Britain’ actually means. Between the launch of the magnificent HMS Queen Elizabeth (R08) and this deal, the United Kingdom is sending a strong signal to its reversion as a proper global seapower.

3) For Washington, Canberra is becoming more critical than London daily. Businesses should look for continued commercial opportunities in Australia and the Indo-Pacific region.

Full post - click here.

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AP: Biden calls Australia ‘an anchor to peace and prosperity’ during state visit from Albanese

AUKUS will ‘get done’ despite jitters in Congress, Biden tells Albanese at White House meeting: Guardian reports getting approval for nuclear submarine plan through legislature a question of ‘not if, but when.’

Meeting between Biden, Australian PM Albanese puts focus back on China: While war in Middle East draws attention, Australia and US share goal of countering China’s influence in Asia and beyond. WSJ

On the agenda for Australia’s state visit: China, trade, and a US Marine Band: President Biden will welcome Anthony Albanese, the prime minister of Australia, for meetings and a state dinner in Washington. NYT

State dinner guests include Leguizamo, Perlman, and some B-52s: Here’s the list of who got invited to the White House’s dinner Wednesday honoring Australian Prime Minister Anthony Albanese. WP

Hamas fighters trained in Iran before Oct. 7 attacks: WSJ reports that roughly 500 Palestinian militants got specialized combat instruction at Iranian facilities as recently as September.

BBC: Netanyahu says Israel preparing for Gaza ground invasion but won't say when

+ Israel has agreed to delay an expected invasion of Gaza for now so that the United States can rush missile defenses to the region to protect US troops there, the Wall Street Journal reported, citing US and Israeli officials.

UK’s Sunak urges humanitarian ‘pauses’ in Israel-Hamas war: Politico reports the comments come after US Secretary of State Anthony Blinken says ‘humanitarian pauses must be considered’ to allow aid into Gaza.

Bloomberg: Israel is losing support as fury grows over its strikes on Gaza

+ Macron warns against ‘massive’ Gaza ground attack

AFP: France to send navy ship to support Gaza hospitals, Macron says on Egypt visit

The three steps on America’s ladder of military escalation: Could America be dragged back into another Middle East war? Economist

Israel-Hamas war: 'Putin is rubbing his hands: The Russian president will look to take advantage of the crisis in the Middle East as it diverts attention from the war in Ukraine and fuels resentment against the 'collective West.' Europeans are alarmed by this danger. Sylvie Kauffmann

Why is India boosting its diplomatic workforce? India is planning to restructure its foreign service and increase the number of entry-level officers. But will the South Asian nation approach the recruitment drive in the most effective way possible? DW

Japan's top court says trans sterilization requirement unconstitutional: BBC reports the 2004 law said people could only change their gender if they have no reproductive capacity. Wednesday's ruling came after a transgender woman filed a petition challenging the law.

Curious case of Xi Jinping’s vanishing ministers The Times

Xi Jinping steps up his attempt to rescue China’s economy: The president unleashes stimulus, appoints a finance minister and visits the central bank. Economist

CNBC: Why China’s 1 trillion yuan debt plan isn’t necessarily such a big deal

+ Chinese authorities late Tuesday announced one of the biggest changes to the national budget in years, along with the issuance of 1 trillion yuan in ($137 billion) in government bonds.

+ State media made it clear that whopping amount would focus on reconstruction of areas hit hard by natural disasters — such as this summer’s historic floods.

+ “We believe the economic impact of this RMB1.0trn in additional [central government bonds] should not be overstated, especially in the near term,” Nomura’s Chief China Economist Ting Lu said in a note.

Joe Biden’s unsung shift on China: The upside to dialogue between Washington and Beijing should never be overlooked. Edward Luce

CNBC: California Gov. Gavin Newsom meets with China’s Xi Jinping to partner on climate agenda

Bloomberg: Huawei smartphone chip that alarmed US was made by ASML machine

South China Sea: Beijing, Manila on collision course: DW reports ties between China and the Philippines have deteriorated sharply since Philippine President Ferdinand Marcos Jr. praised their "friendship" in early 2023. Now, new winds are blowing from Manila.

Are we right to fear China? Despite dire warnings about autocracy and human rights, expert voices urge greater understanding of this ever-more powerful player. FT

Ukraine bracing for another winter of Russian attacks targeting energy grid, Zelenskyy says: CBC reports Russian strategy hopes to erode country's resistance by denying civilians heating.

The Russians returning home from self-imposed exile: FT reports more than 800,000 people fled Russia after last year’s invasion of Ukraine. Now, some have changed their minds.

Meet the Labour think tank guiding Keir Starmer’s path to power Politico

Bloomberg: Spain’s Sanchez agrees to cut workweek to 37.5 hours in deal with far left

Slovakia forms coalition government with pro-Russia party: DW reports new Slovak Prime Minister Robert Fico had promised to end military aid for Ukraine in his electoral campaign. He is in coalition with the pro-Russia and far-right Slovak National Party (SNS) and the left-wing Hlas-SD.

Women will vote at a Vatican meeting for the first time: Some women participating in a conference on sensitive church issues said they feel heartened by the discussions taking place, though change may remain slow. NYT

Renewed clashes in eastern DR Congo: DW reports that after months of fragile calm in eastern Congo, fighting has resumed near the borders with Rwanda and Uganda. Experts say the unresolved conflict puts the entire Great Lakes Region at risk.

Bloomberg: House finally finds new Speaker in Trump ally Mike Johnson

After weeks of chaos, US House finally elects new Speaker: CBC reports Mike Johnson's win ends the cycle of Republican infighting since Kevin McCarthy's ouster — for now.

Ford reaches tentative labor deal with UAW: WSJ reports the proposed agreement to potentially end the six-week strike contains a 25% pay bump for assembly line workers. If approved, it marks the union’s biggest contract gains in decades.

CNBC: Credit card users paid $130 billion in fees, interest in 2022, federal watchdog says

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ITK Events | Executive Education + Networking

Oct 31 - America responds to the 21st-century global economy (Virtual)

Nov 7 - US-Russia relations - Putin and five US Presidents (Virtual)

Dec 7 - ITK LON | School + Salon Dinner (Live in London, UK)

Jan 11 - ITK WAS | School + Salon Dinner (Live in Washington, DC)

Book your spot @ www.caracal.global/events

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CNBC: GM, Honda scrap plans to co-develop ‘affordable’ sub-$30,000 EVs

DFP: Honda, General Motors end partnership to develop affordable EVs together

Toyota chairman says people are finally seeing reality on EVs: Akio Toyoda said the electric-vehicle industry was coming to recognize that there isn’t a single answer to reducing carbon emissions. WSJ

Tesla dashes hopes for affordable Cybertruck amid Elon Musk’s big affordability push: FT reports initial indications suggest Tesla will go to market without the rear-wheel-drive base version initially tipped to start with a $39,900 price tag.

Chasing big mergers, oil executives dismiss peak oil concerns: Exxon Mobil and Chevron are spending tens of billions of dollars buying oil and gas assets, betting that the International Energy Agency’s predictions of declining oil demand are wrong. NYT

How Clare V. went from a small California startup to a global fashion brand: The luxury bag brand is expanding internationally thanks to a partnership with Monoprix, the Target of France. FC

LinkedIn influencers are a thing now—and brands like Intel and Hootsuite are courting them: Although the influencer community is still relatively small on LinkedIn, brands that partner with them say they make it easier to cut through the noise. FC

San Francisco’s AI boom may herald a new dawn: Whereas tech giants including Facebook, Salesforce, and LinkedIn reduced their presence in the city during the pandemic, buzzy start-ups are moving in. WP

Can Sam Bankman-Fried argue his way out of trouble? After days of prosecution evidence, including testimony from erstwhile colleagues and friends, some legal experts think the former FTX boss will now have to take the stand. FT

Fortune: Coca-Cola CEO says company has outmaneuvered Ozempic because it’s been preparing for a low-calorie future for years

There’s a $1.4 trillion suck on productivity that has nothing to do with remote work, says a think tank economist Fortune

Confessions of a middle-class founder: During the boom times, I launched a start-up so I could become rich. Years later, I’m still looking for my exit. Anonymous

The NBA is back and expanding its global reach. Here’s how CNBC

Tahiti campaigners say 'non' to Paris Olympics surf tower AFP

Tour de France 2024 to follow 'dazzling' route from Florence to French Riviera: AFP reports the new route is set to include 3,492 km of road, two Alpine crossings, a time trial finish from Monaco, and the highest starting altitude of any Tour de France.

Tour de France route steers clear of Olympics, and Paris: The 2024 Summer Games have pushed the iconic bike race out of its traditional finish in Paris. The Tour will instead end in Nice, in the south of France. NYT

LIV Golf is not going away. Neither are questions about its future The Athletic

WP: NCAA probe of Michigan’s alleged sign-stealing began after firm obtained evidence from school computers

Much ado about the Michigan Wolverines: Jim Harbaugh has another undefeated team chasing a national title. Allegations about against-the-rules spying threaten a storybook season. Jason Gay

Michigan’s Connor Stalions texted that he ‘stole opponent signals’ from TV—and had a vision for the Wolverines: In a lengthy text exchange from 2021, Stalions boasted of sign-stealing and close relations with the Wolverines’ ‘whole staff.’ He said he envisioned leading Michigan football one day and to prepare was creating a hundreds-page-long document he called ‘the Michigan Manifesto.’ SI

Enjoy the ride + plan accordingly.

-Marc?

Marc A. Ross | Chief Communications Strategist @ Caracal