ZTE

Canada, Trump, Kim, Paris, ZTE, Uber, Netflix, Citi, Brazil

Marc Ross Daily June.png

Canada, Trump, Kim, Paris, ZTE, Uber, Netflix, Citi, Brazil

Marc Ross Daily
June 12, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia

Marc Ross Daily  = Business News at the Intersection of Global Politics + Policy + Profits

Subscribe here
https://goo.gl/bSQKwA

TOP FIVE

✔️ Does your state trade with Canada?

✔️ The G7 fiasco: It's time to isolate Donald Trump

✔️ Trump and Kim leave the denuclearization details for later

✔️ Paris more attractive than London for business investment

✔️ Senators move to sink Trump’s ZTE deal

ROSS RANT

Think populism is slowing down? Check out how Ontario voted

Populism establishes a beachhead in Canada's most prosperous and most important province of Ontario.

To understand what will happen with American politics and upcoming elections, I find exploring elections in other Western democracies to be an essential tool.

Last Thursday night, Doug Ford was elected as the next Premier of Ontario. A new expansion of populism now confronts Canada. Think Trump lands in Ontario.

CBC's Chris Hall wrote, "Doug Ford — the bombastic, blustering and populist former Toronto city councilor — is going to be the next premier of Canada's most populous province. His victory, convincing as it was, came with an exclamation mark. He put an end to 15 straight years of Liberal rule."

Toronto Star columnist Edward Keenan echoed the same scripting "Ford era promises a rocky road ahead for all of us."

He went onto say "the next four years under Premier Doug Ford: constant reasons to wonder about the malice vs. incompetence debate, with a loud portion of Ford’s supporters hoping and cheering for the former option. And many of the rest of us hoping instead for the latter, because perhaps if a problem is caused by incompetence, there is some hope it will be fixed, as those who caused it realize their mistake or grow more competent and capable."

@Richard_Florida tweeted: Ontario went from being a pro-urban province/ state like California or New York to joining the ranks of anti-urban Red states ... 

I don't see the expansion of populism around Great Lakes stopping any time. Until CEOs of multinational corporations, Governors, and Mayors show leadership and engage voters in the Midwest on the value of globalization, this will be the result at the ballot box.

Endless outrage by the coastal elites will do little to change election outcomes.

Cross the Hudson and be in Cleveland.

Cross the Potomac and be in Detroit.

This is the three-part question facing US voters in 2018 and 2020: Do we protect the jobs of the past or invest in the jobs of the future? Do we subsidize the grey hairs or invest in today's 8th graders? Do we want to be part of a global world or not?

Voters today want protection, subsidies, and unilateralism.

Plan accordingly.

GEOECONOMICS

CBC: Trump says Trudeau's 'pushed around' comments will cost Canada 'a lot of money'

Trump says Trudeau "probably didn't know that Air Force One has about 20 televisions'

The G7 fiasco: It's time to isolate Donald Trump: The G7 summit once again made it clear that US President Donald Trump is intent on treating America's allies worse than its enemies. Europe must draw the consequences and seek to isolate Trump on the international stage. 
Der Spiegel - Roland Nelles

East Germans invest and vote differently. Here's why. Data shows that both recent and older history influences how we behave in daily life. https://bloom.bg/2t7PQCf

OTD: In 1991 Boris Yeltsin became the first democratically elected president of Russia.

WSJ: Trump: Kim to start to denuclearization steps

Pact is short on details; President promises to halt military exercises

NYT: Trump and Kim see new chapter for nations after summit

FT: Trump and Kim pledge peace on Korean peninsula

LAT: Trump-Kim Jong Un summit fails to produce disarmament plan

Nikkei: Trump and Kim leave the denuclearization details for later


Bloomberg: Trump gave Kim a summit but left with little to show for it

WP: Trump says US, North Korea are ‘ready to write a new chapter’

US military in Korea says no guidance on cancelling war games:
 Reuters reports, US military forces in Korea have not received any direction to cease joint military drills, a spokesman said on Tuesday, after U.S. President Donald Trump said war games would be ended amid talks with North Korea.

US opens new $255m de facto embassy in Taiwan: FT reports, the US has held a ceremony to mark the opening of its new de facto embassy in Taiwan, in a show of support for the government in Taipei amid mounting Chinese pressure on the self-ruled island. The diplomatic base reflected the “strength” of US-Taiwan ties and would “make possible even greater cooperation for many years to come”, said Marie Royce, assistant secretary of state for educational and cultural affairs, and the highest-ranking US official in attendance on Tuesday.

Friday: June 15 is the deadline for the US to publish the final list of Chinese products subject to $50 billion in tariffs

Aussie-Sino relations: Vast quantities of Australian wine are stuck in Chinese ports as relations between the two countries sour over criticism of Beijing's expanding military and spy network.

Entrance exams in China focus on the thoughts of Xi: Asia Times reports, almost 10 million high school graduates in China sat the nation’s annual college entrance exams earlier this week. The themes and reference materials are always a topic of conversation among parents and the online community. 

It is estimated that around 80% of global trade is part of long supply chains, and around 40% of global trade is within companies. 

BBC: First direct flight from China lands at Edinburgh Airport

Paris more attractive than London for business investment, says consultancy firm EY
: AFP reports, For the first time, Paris is ahead of London as the most attractive European city for businesses to invest in, according to a report by consultancy firm EY. EY convened a panel of 502 international business leaders who concluded that Paris was preferable to London in this respect. This comes as France’s overall attractiveness to investors continued to improve in 2017, for the second year in a row, partly thanks to President Emmanuel Macron’s economic reforms, according to the same report, published on June 11.

Brexit: The best hope for an orderly withdrawal from the European Union lies in all Conservative MPs uniting and backing the government.

MPs debate 15 amendments made by peers to the European Union (Withdrawal) Bill.

In Brexit showdown, British PM May faces challenge over 'meaningful vote': Reuters reports, British Prime Minister Theresa May faces a showdown on Tuesday with lawmakers who want power to force her government to go back to the negotiating table if they reject a Brexit deal, testing her plans for leaving the European Union.

UK should not legislate to control children's use of technology, says culture secretary:Guardian reports, Matt Hancock refuses to rule out law to protect minors online, but would stop short of French measures.

Digital and social media firms should be forced to protect children from addiction, UK experts say: Telegraph reports, Social media and online gaming firms should have a statutory “duty of care” to protect children from mental ill health, abuse and addictive behaviour, a coalition of the country’s leading experts demands today. Data amassed by charities, academics and doctors links children’s use of social media and gaming to a range of serious and lasting harms, many of which build gradually over time and go undetected by parents or teachers.

AMERICAN POLITICS

The $1.4 trillion US ‘surplus’ that Trump’s not talking about: Bloomberg reports, the US has a surplus of $20 billion with China and $1.4 trillion with the rest of the world. That’s not a normal trade balance, of course, where the US registered an annual deficit of more than $330 billion with China and about $550 billion with the world last year, but an "aggregate sales surplus" which measures both direct trade and the sales of multinational companies, according to research by Deutsche Bank AG

Senators move to sink Trump’s ZTE deal: WSJ reports, in a rare rebuke of President Donald Trump, Republican Senate leaders set up a vote for this week that would undo the White House deal to revive Chinese telecommunications company ZTE Corp. Commerce Secretary Wilbur Ross was on Capitol Hill late Monday to lobby against the move. But Democratic and Republican lawmakers said that an agreement had been reached to wrap into the National Defense Authorization Act an amendment that would ban ZTE from buying components from US suppliers.

Politico: The 10 names that matter on China policy: Trump’s skepticism of Asia was a key part of his campaign’s identity. These 10 people are dealing with the reality. https://politi.co/2t1F8Nz

The Atlantic - Reihan Salam: Normalizing trade relations with China was a mistake: Lawmakers wanted to turn a potential enemy into a friend—instead, they squandered their leverage, in ways that shortchanged both nations. https://theatln.tc/2t2Slp0

Lawrence Kudlow, Trump’s top economic adviser, had a very mild heart attack Monday.

@CNBC: Paul Manafort will be arraigned Friday on witness tampering charges levied in the latest indictment from special counsel Robert Mueller.

Today: The Fed starts a two-day meeting with an expected rate hike announcement on Wednesday.

LAT: John Cox says Trump will campaign for him in California governor's race

Romney looks to lead GOP’s establishment wing
: Politico reports, Mitt Romney, is positioning himself to be a force in the Senate — and a potential counterweight to Trump. 

Today: Sen. Mitch McConnell (R-KY) will eclipse former Sen. Bob Dole (R-KS) as the longest-serving Republican leader in Senate history.

Inside Obama’s secret meetings with 2020 contenders: Politico reports, still the reluctant leader of the Democratic Party, Obama has been providing counsel to Bernie Sanders, Elizabeth Warren, and other presidential hopefuls.

ENTERPRISE

Forbes Global 2000: The world's largest public companies http://bit.ly/2y6NFEA

1. ICBC
2. China Construction Bank
3. JP Morgan Chase
4. Berkshire Hathaway
5. Agricultural Bank of China
6. Bank of America
7. Wells Fargo
8. Apple
9. Bank of China
10. Ping An Insurance Group
11. Royal Dutch Shell
12. Toyota Motor
13. ExxonMobil
14. Samsung Electronics
15. AT&T


Grocery chains are being squeezed from all sides: WSJ reports, pressure from rapidly changing consumer tastes, European discounters and Whole Foods will hurt smaller grocery chains most but the big players like Kroger will struggle to grow. 

What Caracal Global thinks: Deck: The Future Of Retail - see it herehttp://bit.ly/2HowjaB

Uber is considering an acquisition of Motivate, the company behind the Ford GoBike.

Today: A judge will decide whether AT&T can buy Time Warner

Citi issues stark warning on automation of bank jobs: FT reports, Citigroup’s investment bank has suggested that it will shed up to half of its 20,000 technology and operations staff in the next five years, as machines supplant humans at a faster pace.

US tech companies return to Taiwan as China ties sour: Nikkei reports, Microsoft, Amazon, and Google seek cutting-edge products for IoT.

AFP: Shoemaker Louboutin wins EU court battle over red soles

TRENDS

World Cup: why millennials will transform football’s greatest event: The way the game is experienced away from the pitch is the latest powerful example of digital disruption. https://on.ft.com/2l4CqTR

"Developing a first-class enterprise—retailer or tech company or football team or symphony orchestra—is all about developing people.” -- Tom Peters

CULTURE

A company built on a bluff: NY Mag reports for almost 25 years, Shane Smith’s plan for Vice was that, by the time the suckers caught on, he’d never be stuck owning the company he co-founded. https://nym.ag/2t0dDnc

A senior manager once joked that the company’s hiring strategy had a “22 Rule”: “Hire 22-year-olds, pay them $22,000, and work them 22 hours a day.”

Inside the binge factory: Netflix is hiring everybody in and out of Hollywood to make more TV shows than any network ever has, and it already knows which ones you’ll like. http://bit.ly/2sWZnMj

HBDs: George HW Bush is 94 yo today and Chick Corea reaches 77 yo.

Former Olympic skier Bode Miller ‘beyond devastated’ after death of 19-month-old daughter: WP reports, “Never in a million years did we think we would experience a pain like this,” Miller said of the death, which occurred by drowning.

SPORT

A German system that has made them the team of the century: The inside story of the model that has become the envy of the football world. http://bit.ly/2sXkM7W

Germany is not flying to Russia to see the sights, "but to win the tournament," said team director Oliver Bierhoff.

Goldman tips Brazil for World Cup after 1 million simulations: Bloomberg reports, so much for the unpredictable nature of the beautiful game. Goldman Sachs Group Inc. reckons Brazil will win its sixth World Cup, basing its forecast on data mining, machine learning, and econometrics. The investment bank is the latest to jump into the excitement before the soccer championship kicks off this week. It used 200,000 statistical models, sifted data on individual players and recent team performance and ran 1 million simulations of the tournament.

The Times: It’s time for Belgium’s golden generation to live up to the hype

Trump letters might be key to bid to host 2026 World Cup
: NYT reports, three previously undisclosed letters from President Trump to FIFA have reassured the organization’s members that all fans and teams would be welcome, regardless of US immigration policy.

2026 World Cup: FIFA members will decide on Wednesday whether to vote for a joint US-Canadian-Mexican bid or whether the World Cup -- which will feature 48 teams for the first time -- will return to Africa for only the second time in 2026.

Foreign-owned football clubs:

China: AC Milan, Inter Milan, Southampton, West Bromwich

India: Blackburn

Pakistan: Fulham

Iran: Everton

Qatar: PSG, Malaga

Russia: Chelsea

UAE: Man City

Singapore: Valencia

USA: Arsenal, Man Utd, Liverpool, Marseille, Roma

ZTE, Facebook, Ralph Lauren, Politico, SoulCycle, Hollywood, Flipkart

Marc Ross Daily June.png

ZTE, Facebook, Ralph Lauren, Politico, SoulCycle, Hollywood, Flipkart

Marc Ross Daily
May 23, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia

Marc Ross Daily  = Business News at the Intersection of Global Politics + Policy + Profits

Subscribe here
https://goo.gl/bSQKwA

TOP FIVE

✔️ EU setting global privacy standards

✔️ Britons dash to become German before Brexit

✔️ Why the US-China trade truce may not last

✔️ 'I’m sorry,' Zuckerberg tells EU Parliament

✔️ Why do Americans stay when their town has no future? 

ROSS RANT

ZTE saga highlights new influence of small US regulatory agency housed in the Commerce Department

The Trump administration has charged the Bureau of Industry and Security (BIS) with determining which new technology should face export restrictions, in what would be the biggest expansion of the agency’s purview since the Cold War. The agency’s broadening role has alarmed some people in the tech industry, who have had few dealings with the obscure agency.

The little-known division of the US Commerce Department is expected to gain new authority to regulate technology exports.

Technology executives are only beginning to assess how they could be affected by new export limits. Historically, the roughly 450-person BIS, with an annual budget of a little more than $100 million, has operated in relative obscurity, overseeing the export of sensitive technologies that have both commercial and military applications—so-called “dual-use” items. The agency, which has offices in Silicon Valley, also enforces sanctions that prohibit exports to countries the US deems as threats, including Syria, Iran and North Korea.

American tech companies have been on edge since the Trump administration in December unveiled his “America First” security plan that calls for protecting emerging US technology from being copied by overseas competitors. The responsibility for carrying out those goals falls largely to BIS. 

The Information has an excellent write-up on the agency and its oversight of ZTE. You can read it here: http://bit.ly/2LjXWjm

GEOECONOMICS

EU setting global privacy standards: Most big internet companies are planning to offer global users most of the protections required by the law, known as GDPR.

AFP: Macron shuns ‘new’ plan, wants more jobs to tackle deprived suburbs

NYT: Macron vowed to make France a ‘start-up nation.’ Is it getting there?


"When President Emmanuel Macron took office, he took pains to include two iPhones in his official portrait, a symbol of his penchant for technology."

Could Britain have an election in 2018? It’s not impossible: Bloomberg reports, could Britain, which had referendums in 2014 and 2016 and elections in 2015 and 2017, have another vote in 2018? Politicians laugh nervously at the idea, but know that deadlock over Brexit makes it possible. The pound fell to its lowest level this year on Monday amid speculation another snap vote could be called after the Sunday Times said some Conservative lawmakers are privately preparing for one.

The Times: Take UK out of customs union as fast as possible, Boris Johnson tells Theresa May

Britons dash to become German before Brexit
: Reuters reports, driven by the prospect of Britain’s withdrawal from the European Union next year, the number of British passport holders who became German citizens jumped by 162 percent last year, Germany’s Federal Statistics Office said on Wednesday.

Germany in the age of Trump: Handelsblatt Global reports, as the foreign ministers of Germany and the US meet in Washington for damage control, a foreign-policy expert ponders what Germany should do now that Donald Trump has canceled the "partnership in leadership."

@dwnews: In Germany, a woman leads the country, but there isn't a single female CEO in any of its top businesses

North Korea: Trump said yesterday that he would cancel a planned summit with North Korean leader Kim Jong-un unless Kim first consented to a list of unspecified conditions.

Why the US-China trade truce may not last: Bloomberg reports, the US and China declared a truce in their trade dispute over the weekend, but that will prove temporary if the world’s two largest economies fail to deliver on their vague commitments to re-balance trade. The truce is “little more than a brief de-escalation of tensions,” said Eswar Prasad, a trade policy professor at Cornell University and former head of the IMF’s China unit. “The fundamental differences on trade and other economic issues remain unresolved.”

$53,987 = Per capita GDP in Shanghai

China said its Foreign Minister Wang Yi would visit Washington today.


US seeks greater scrutiny of China tech investment: FT reports, bipartisan support for bill to enable review of minority stakes in start-ups. A key Senate committee on Tuesday is beginning the process of negotiating the final details of a bill that its authors said would give the Committee on Foreign Investment in the US more powers and increase scrutiny of Chinese investments, particularly in tech companies.

Senators urge Trump to take hard line in dealings with China: Reuters reports, at least 27 of the 100 US senators, both Democrats and President Donald Trump’s fellow Republicans, urged his administration on Tuesday not to soften restrictions on the transfer of US technology to China. “There can be no question that China seeks to surpass the US both economically and militarily and become the world’s foremost superpower, and neither the federal government nor private US companies should aid and abet that effort,” the senators said in a letter, whose signatories included Chuck Schumer, the top Senate Democrat, and John Cornyn, the No. 2 Republican.

You can see the letter here: http://bit.ly/2s0GBUw

US and China cannot escape technology war: Beijing won't relent in a state-led drive that Washington is bound to challenge.
Nikkei - James Crabtree

AMERICAN POLITICS

WSJ: Rare bipartisan deal rolls back postcrisis banking regulation

Steely
: Employment in each of America’s top 10 steel cities has grown slower than the US average—or actually declined—since Trump announced plans to impose tariffs on steel and aluminum imports.

GA-GOV: Stacey Abrams became the first black woman to be a major party’s nominee for governor after she won Georgia’s Democratic primary.

Can Paul Ryan make it through to January as House Speaker? NYT reports, Mr. Ryan pledged to finish out his term when he announced his retirement. But with Republicans in revolt on both his right and his left, he is stuck in the middle, with no clear path forward.

WP: Ryan losing grip on House GOP conference as midterms approach

LAT: California has moved to the left, and Dianne Feinstein is following in her bid for a fifth term

NYT - Andrew Ross Sorkin: An artless negotiation from the president who penned ‘The Art of the Deal’
https://nyti.ms/2x7Hdwy

NYT - Paul Krugman: Why a trade war with China isn’t ‘easy to win’ (slightly wonkish) https://nyti.ms/2LnmBU7

The Times: Trump fundraiser Elliott Broidy ‘lobbied for $1bn in contracts’

"A top fundraiser for President Trump allegedly led a secret effort to diplomatically isolate Qatar as part of a plan to win $1 billion in business contracts from its regional rivals."

A big shoe drops in the Mueller probe, as the Taxi King flips: WP reports, a former business partner of Trump attorney Michael Cohen appears to have gotten a very sweet deal from prosecutors. That should frighten Cohen and Trump.

Evgeny A. Friedman, the business partner of Trump’s personal lawyer Michael Cohen, has agreed to cooperate with prosecutors. 

ENTERPRISE

Hollywood is hoping for a box-office rebound with a slew of summer blockbusters, including “Solo: A Star Wars Story,” “Incredibles 2” and “Jurassic World: Fallen Kingdom.” 

China surpassed North America to become the world's largest movie market during the first quarter of 2018.

@CNBCnow: BREAKING: Comcast says it is in the advanced stages of preparing all-cash bid for Fox assets

Politico is launching a content-sharing partnership with the South China Morning Post.

This is a really, really, big deal.

The Alibaba + Jack Ma + China + Politico partnership is super interesting on many levels - easily could be the biggest cultural and commercial US-China tie-up of significance this year. 

I am keen to see how this plays out and both sides of the Pacific. 


How the ‘world’s most comfortable shoe’ is challenging Nike and Adidas: WSJ reports, driven by word-of-mouth sales and an eco-focus, San Francisco's Allbirds has sold over a million shoes in two years. But can this Silicon Valley success story last?

@marcbain_: Americans aren't buying all-American brand Ralph Lauren so much these days. North America sales dropped 15% for the year

Barclays explores mergers with rival banks: FT reports, private talks with StanChart form part of contingency plans after investor pressure.

Nikkei: Honda to tie up with world's largest battery maker in China

Foxconn to cut back
initial investment in $10 billion Wisconsin plant: Nikkei reports, Foxconn's shift to making diversifying displays for cars, personal computers, tablets, mobile devices, televisions and niche products is a change from its previous plan to churn out large panels, mainly for TVs, at the new plant.

AFP: 'I’m sorry,' Zuckerberg tells EU Parliament

Walmart
's takeover of Indian e-commerce giant Flipkart is moving forward, after SoftBank agreed to sell the U.S. firm its entire 21% stake in Flipkart. 

Starbucks app: More than 23.4 million people will open the Starbucks app to pay for their coffee or tea at least once every six months in 2018, according to eMarketer.

When it comes to marketing, often it is best to make it obvious: The Big Ass Fans brand was originally called the HVLS Fan Company.

Yelp seeks to revive EU antitrust complaint against Google.

TRENDS

How Americans watch television:

- 67% of TV viewers switch to another channel when a commercial advertisement comes on, per Nielsen.

- Sports and news are the two genres users still overwhelmingly watch live.

- There are roughly 500 scripted TV series today, compared to roughly 200 in 2010, according to FX's annual Networks Research report.

- 70.3% of the American population — will regularly use another digital device while watching TV this year.


AI: In a survey of Fortune 500 CEOs this year, a majority of respondents—54%—said AI was “very important” to the future of their companies. That’s up from just 39% last year,

CULTURE

Here's Bill Gates summer reading listhttp://bit.ly/2LlL0Jz

RIP: Philip Roth, a pre-eminent figure of 20th-century literature, died Tuesday night in Manhattan at the age of 85.

Why do Americans stay when their town has no future? Family and community are the only things left in Adams County, Ohio, as the coal-fired power plants abandon ship and the government shrugs. https://bloom.bg/2IKHvuQ

PODCAST

The BOF Podcast Episode 43: How SoulCycle scales community: Chief executive Melanie Whelan discusses how to successfully build a community around an experience and why people are key to maintaining SoulCycle's special culture.  http://bit.ly/2J0OF1m

SPORT

NBA Playoffs:

BOS v CLE - Series tied 2-2 | Game 5 tonight @ 8:30 pm

GSW v HOU - Series tied 2-2 | Game 5 tomorrow @ 9:00 pm

NHL Playoffs:

Capitals v Lightning - Series tied 3-3 | Game 7 tonight @ 8:00 pm

Vegas Golden Knights are prepping for the Stanly Cup finals by enjoying all you can eat buffets on The Strip. 

ZTE saga highlights new influence of small US regulatory agency housed in the Commerce Department

Ross Rant March 2018.png

The Trump administration has charged the Bureau of Industry and Security (BIS) with determining which new technology should face export restrictions, in what would be the biggest expansion of the agency’s purview since the Cold War. The agency’s broadening role has alarmed some people in the tech industry, who have had few dealings with the obscure agency.

The little-known division of the US Commerce Department is expected to gain new authority to regulate technology exports.

Technology executives are only beginning to assess how they could be affected by new export limits. Historically, the roughly 450-person BIS, with an annual budget of a little more than $100 million, has operated in relative obscurity, overseeing the export of sensitive technologies that have both commercial and military applications—so-called “dual-use” items. The agency, which has offices in Silicon Valley, also enforces sanctions that prohibit exports to countries the US deems as threats, including Syria, Iran and North Korea.

American tech companies have been on edge since the Trump administration in December unveiled his “America First” security plan that calls for protecting emerging US technology from being copied by overseas competitors. The responsibility for carrying out those goals falls largely to BIS. 

The Information has an excellent write-up on the agency and its oversight of ZTE. You can read it here: http://bit.ly/2LjXWjm.

-Marc A. Ross

Marc A. Ross specializes in global communications and thought leader management at the intersection of politics, policy, and profits. Working with boardrooms and C-Suite executives from multinational corporations, trade associations, and disruptive startups, Marc helps business leaders navigate globalization, disruption, and American politics.

Ebola, May, Merkel, ZTE, Vegas Knights, Netflix, Interview, Drones

Marc Ross Daily June.png

Ebola, May, Merkel, ZTE, Vegas Knights, Netflix, Interview, Drones

Marc Ross Daily
May 22, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia

Marc Ross Daily  = Business News at the Intersection of Global Politics + Policy + Profits

Subscribe here
https://goo.gl/bSQKwA

TOP FIVE

✔️ Ebola vaccine arrives in Democratic Republic of Congo

✔️ UK Election this September?

✔️ Merkel to seek China as free-trade ally

✔️ Multinationals bow to China’s political sensitivities

✔️ US, China agree on outline to settle ZTE controversy

GEOECONOMICS

Ebola vaccine arrives in Democratic Republic of Congo: WSJ reports, health officials in the Democratic Republic of Congo began administering an experimental Ebola vaccine in the northwestern city of Mbandaka on, as the country battles to contain its ninth outbreak of the hemorrhagic fever.

Paraguay opened its embassy to Israel in Jerusalem Monday, becoming the third country to do so following the United States and Guatemala.

Santiago Times: Chile doesn’t recognize Maduro’s victory in Venezuela, says Piñera

UK Election? Buzz around Westminster is growing that PM May will call for a general election in September to secure more support for her Brexit plans. Such a move would require Parliment approving the decision.

Italy: Italy’s about to be ruled by a populist coalition that features “the high-spending ambitions of the left with the low-tax ambitions of the right,” writes Bloomberg's Clive Crook.

Trump trade threat looms large as Merkel heads to China: Reuters reports, Germany's Angela Merkel faces a delicate diplomatic balancing act when she travels to China this week on a visit clouded by U.S. President Donald Trump's trade threats and his decision to pull out of the Iran nuclear deal.

Bloomberg: Merkel to seek China as free-trade ally on Beijing trip

Reuters: China relieved US trade war is 'on hold'; U.S. business ambivalent

Multinationals bow to China’s political sensitivities
: FT reports, US calls Beijing’s demands ‘Orwellian nonsense’, but global groups are apologizing. The climbdowns by multinationals are part of a string of incidents that demonstrate that global groups are finding themselves in an awkward position as they try to balance the demands of a more assertive China and potential damage to their image in their home markets if they are seen to be conceding to Beijing.

Opinion: Trump is the gift that keeps on giving — to China
Caixin - Kent Harrington

"All bad management, a business guru once remarked, is taught by example. Donald Trump is teaching a master class on how not to serve as America’s chief executive. By abandoning the thoughtful policymaking of his predecessors in favor of a presidency modeled on reality TV, Trump has failed to articulate anything resembling a credible national strategy."

China plans to end all its limits on the number of children families can have as soon as this year.

China’s economic supremo has upper hand in US trade tussle: FT reports, Liu He passes his first big test in negotiations with US by putting trade war on hold.

US, China agree on outline to settle ZTE controversy: WSJ reports, the US and China have agreed on the broad outline of a deal that would save imperiled Chinese telecom giant ZTE, as the two sides move closer to resolving their trade dispute. The details are still being hammered out, the people said. If completed, the Trump administration would remove the ban on US companies selling components and software to ZTE, a penalty that has threatened to put the company out of business. Instead, ZTE would be forced to make big changes in management, board seats and possibly pay significant fines, the people said.

AFP: Donald Trump at center stage in Mexican presidential debate

Today
: The National Press Club will host former Mexican President Vicente Fox.

The Over | Under on Vicente Fox mentioning The Wall is 17. 

AMERICAN POLITICS

Steve Bannon is mad with The Globalists: He is among those displeased by the US-China trade truce. Trump "changed the dynamic regarding China but in one weekend Secretary Mnuchin has given it away," the former presidential adviser told Bloomberg. He suggested Mnuchin's views on trade were out of sync with Trump's populist base.

Chances of China trade win undercut by Trump team infighting: NYT reports, by the time American negotiators wrapped up high-level talks with a visiting Chinese delegation last week, President Trump’s ambitions for a multibillion-dollar trade agreement had, for the time being, shriveled into a blandly worded communiqué without any dollar figures. It was not clear that the talks set a path to success. Ceaseless infighting and jockeying for influence on the White House’s trade team helped deprive Mr. Trump of a quick victory on his most cherished policy agenda, several people involved in the talks said. The deep internal divisions carried over into how officials characterized the agreement and muddied the outlook for the next phase of the negotiations between Washington and Beijing.

Trump’s charm and threats may not be working on China. Here’s why. NYT reports, China has called President Trump’s bluff. Chinese negotiators left Washington this weekend with a significant win: a willingness by the Trump administration to hold off for now on imposing tariffs on up to $150 billion in Chinese imports. China gave up little in return, spurning the administration’s nudges for a concrete commitment to buy more goods from the United States, and avoiding limits on its efforts to build new high-tech Chinese industries. https://nyti.ms/2rXosHi

WP - Catherine Rampell: It’s been amateur hour on China negotiations: The Trump administration is supposed to be negotiating with China. But right now it more often seems to be negotiating with itself. China knows what it wants out of these bilateral negotiations; the White House plainly does not. Trump officials have offered shifting and at times contradictory demands and objectives, further complicated by administration infighting, public turf wars, reversals, retractions and clumsy errors. In short: Over here on Team USA, it’s been amateur hour. https://wapo.st/2rXfiKW

How China acquires ‘the crown jewels’ of US technology: Politico reports, the US fails to adequately police foreign deals for next-generation software that powers the military and American economic strength. A six-month Politico investigation found that the Committee on Foreign Investment in the United States, the main vehicle for protecting American technology from foreign governments, rarely polices the various new avenues Chinese nationals use to secure access to American technology, such as bankruptcy courts or the foreign venture capital firms that bankroll US tech startups. https://politi.co/2IGIOLb

Legal fees: WP reports, the Republican National Committee paid nearly half a million dollars to a law firm that represents former White House communications director Hope Hicks and others in the Russia investigations, according to a new federal filing.

Trump’s tweets include grammatical errors. And some are on purpose: BG reports, The hallmark of President Trump’s Twitter feed is that it sounds like him — grammatical miscues and all. But it’s not always Trump tapping out a Tweet, even when it sounds like his voice. West Wing employees who draft proposed tweets intentionally employ suspect grammar and staccato syntax in order to mimic the president’s style, according to two people familiar with the process.

Twitter bots most likely played a large role in both the 2016 presidential election and the Brexit vote, according to the National Bureau of Economic Research.

Barack and Michelle Obama sign production deal with Netflix: TechCrunch reports, Former U.S. President Barack Obama and Michelle Obama have reached an agreement to produce films and series for the streaming service. Netflix’s official announcement makes it sound like that continues to be what the Obamas have in mind, with Chief Content Officer Ted Sarandos describing them as “uniquely positioned to discover and highlight stories of people who make a difference in their communities and strive to change the world for the better.”

ENTERPRISE

Small brands nibble at Campbell’s business: WSJ reports, as Americans become more adventurous with the grocery cart, food aisles are undergoing a transformation that is forcing big food companies to keep up with $10 bottles of juice and sophisticated-tasting cookies. 

Lyft plans to seek permits to run an electric scooter service in San Francisco.

Facebook breakup? Progressive and pro-consumer groups are calling on the Federal Trade Commission to force the separation of Instagram, Facebook Messenger and WhatsApp from the Facebook mothership.

Thanks, UBER: Investors poured more than $21 billion into the company, which has yet to turn a profit. Uber posted $4.5 billion in losses last year alone, subsidizing rides in an all-out effort to establish a monopoly. 

I for one am happy to have fancy VCs subsidize my transportation needs.

Sony is to spend $1.8 billion on buying EMI Music Publishing.

Adobe is shelling out $1.68 billion on Magento Commerce, maker of tools for operating online stores.

Netflix has 125 million subscribers worldwide.

Larry Culpepper, the badly dressed football fanatic in Dr Pepper commercials, is reportedly not returning this season.  

TRENDS

Boston wants Amazon, but is there room? WSJ reports, the possible arrival of Amazon’s second headquarters in East Boston is triggering both hopes and apprehension in a neighborhood already dealing with fallout from surging costs in a growing city.

Drones are "potentially as disruptive as the internet": From a loyal reader in Cincinnati, Dezeen released a short documentary setting out how drones could revolutionize the way people travel, transform how buildings are designed and built, and radically alter the form cities take. Watch the 18-minute doc here: http://bit.ly/2ICPRZv

For me droids > drones

Financial crisis may have hit ’80s generation the hardest: WSJ reports, Fed research finds wealth levels 34% below what they would be if the last recession hadn't occurred for those born in the '80s.

CULTURE

Guardian: Interview magazine closes, ending a 50-year survey of Manhattan cool

PODCAST

Exchanges at Goldman Sachs: Beyond VR & AR: Get to know Extended Reality (XR):  It’s not a matter of if Extended Reality (XR) will touch all aspects of our lives—it’s a matter of when, says Heather Bellini of Goldman Sachs Research. By 2025, XR is projected to generate over $100 billion in sales, with the consumer and e-commerce sectors being its biggest beneficiaries. The technology carries broad implications for healthcare, education and real estate as well. “Ultimately, this AR/VR/mixed reality movement will change the way we interact with technology forever,” Bellini says. You can listen to the podcast here: http://bit.ly/2rZA23L

SPORT

LAT: It wasn't supposed to happen this way, but the Golden Knights are bound for the Stanley Cup Final

The Knights are better than your hockey team
: 538 reports, the Vegas Golden Knights became just the second-ever expansion team in the post-1960 histories of the NHL, NBA, NFL or MLB to reach the championship in their very first season of existence. The Knights dispatched the Winnipeg Jets after winning four games of their series to the Jets’ one. The 1967-68 St. Louis Blues are the only previous team to pull it off.

Space Needle hockey: The NHL is asking $650 million of an ownership group from Seattle to expand to that city and add a 32nd franchise to the league.

A closer look at the technology inside the 2018 World Cup soccer ball: The Telstar 18 is a high-tech, look-alike cousin of the ball that forever changed soccer. But the biggest innovation of the new model is one you can’t see: Each ball is embedded with an NFC — near-field communication — chip that allows interaction with the ball via a smartphone. https://lat.ms/2IYHjv2

Spain’s La Liga opposes the SoftBank consortium’s proposed expansion of FIFA’s tournaments.

Independent: Next Arsenal manager: Unai Emery set to for job after Mikel Arteta talks stall