Taiwan, Italy, Germany, YouTube, Michigan, Centibillionaires, Hermes

MRD July.png

What I am watching Today = March 20, 2019

Taiwan, Italy, Germany, YouTube, Michigan, Centibillionaires, Hermes

TOP FIVE

✔️ Taiwan president to visit US despite Chinese opposition

✔️ YouTube’s struggles to shut down video of the New Zealand shooting

✔️ Can Terry McAuliffe sell himself to leftward-leaning Democrats in 2020?

✔️ Disney-Fox deal is complete

✔️ Barclays unveiled as Women’s Super League sponsor in groundbreaking deal
 

GLOBALIZATION

Taiwan president to visit US despite Chinese opposition: FT reports, Taiwan president Tsai Ing-wen will make a one-day stopover in the US next week in a move that underscores warming ties with the US despite criticism from China. Ms Tsai will travel to Hawaii during a week-long tour of three of Taiwan’s formal diplomatic allies in the Pacific, in a trip aimed at shoring up support in the face of pressure from Beijing which opposes recognition of the government in Taipei.

China to invite European diplomats to Xinjiang in new diplomatic push: Reuters reports, China will invite Beijing-based European diplomats to visit its far western region of Xinjiang, the foreign ministry told Reuters, furthering its outreach to fend off criticism about a de-radicalization program.

CNBC: Trade talks are in final stages, but there is still fear China may walk back concessions

USTR Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing the week of March 25 for high-level talks to try to hammer out a deal.

The US agriculture secretary is suggesting that China could treble its imports of US farm products under a deal.


WSJ: US chip makers fear trap in a trade deal with China

Proposed stepped-up purchases would give Beijing more control, semiconductor industry says.

US-China trade dispute likely to morph into technology war, says the president of the US-China Business Council: Speaking at Shorenstien APARC on March 11, US and Chinese trade negotiators remain engaged in intensive talks, although it is yet to be seen whether and when they can strike a final deal. But even if they are able to reach an agreement, in the confrontation between Washington and Beijing “the trade part is incidental: it’s a technology war, not a trade war,” said Ambassador Craig Allen, president of the US-China Business Council (USCBC).

Adam Minter: China’s electric cars hit some potholes: The government is doing everything it can to spur sales of new-energy vehicles. First, it should stop them from spontaneously combusting. 

European foreign policy: a new realism on China: The European Council will use a summit this week to focus once more on China — and decide whether it is time to get tough again. Mounting concerns over Chinese industrial policy, cybersecurity and trade wars have all combined to put Beijing firmly back on the European agenda. https://on.ft.com/2TXhzoj

Rattled by Beijing’s economic clout, the EU is finally trying to devise a tougher strategy.

Xi says China-Italy pact offers closer ties in strategic sectors: Bloomberg reports, Xi Jinping, brushing aside US and European concerns ahead of his visit to Rome, offered Italy a “global strategic partnership” stretching from building the new Silk Road together to boosting ties in sensitive sectors including telecoms and ports. Writing in daily Corriere della Sera, Xi invoked a “new era” in relations between China and Italy.

Germany to create fund to foil foreign takeovers after China moves: Reuters reports, Germany plans to pass legislation by the end of 2019 to create a state-owned fund that can protect key companies from takeovers by Chinese and other foreign firms, government sources said, in a marked shift from its "hands-off" approach to business.

UK is to start issuing official threat-level warnings for far-right terrorism, just as it does for jihadist and N. Ireland related groups.

UK unemployment rate dipped below 4% for the first time since the 1970s.


British government in chaos over Brexit delay: NYT reports, retreating in the face of a bitterly divided cabinet, Prime Minister Theresa May is now said to be requesting only a short extension in the process.

UK heads for cliff-edge showdown on Brexit: FT reports, May seeks short delay to EU divorce but Juncker warns no extension likely to be granted this week.

The Times: Theresa May pleads for delay to Brexit as EU stands firm

It is 1,000 days since the UK voted to leave the European Union, and the biggest question remains when will the country actually exit the union.

FT: EU hardens stance on Brexit delay as May’s cabinet splits over its demands

Barnier lays down conditions ahead of a summit where PM will seek an extension. 

DISRUPTION

Inside YouTube’s struggles to shut down video of the New Zealand shooting — and the humans who outsmarted its systems: WP reports, Pedro Domingos, a professor of computer science at the University of Washington, said that artificial intelligence is much less sophisticated than many people believe, and Silicon Valley companies often portray their systems as more powerful than they actually are as they compete for business. In fact, even the most advanced artificial intelligence systems still are fooled in ways that a human would easily detect.

Amazing these sites don't add a 30-second, 60-second delay when someone posts live video - I have to believe this will happen soon.

Also, once again, the sunshine of California warps SV computer engineers from seeing the possibility that social media can and will be used for evil.

Farmers Markets: The number of farmers markets in the US rose from 2,000 in 1994 to 8,600 markets in 2019.

POLITICS

Tracking Trump: Trump’s standing across America: On a daily basis, Morning Consult is surveying over 5,000 registered voters across the United States on President Trump. Below is the current data.

Since Trump took office:

His net approval in Michigan has decreased by 23 percentage points.

His net approval in Ohio has decreased by 19 percentage points.
 
His net approval in Pennsylvania has decreased by 17 percentage points.
 
His net approval in Wisconsin has decreased by 20 percentage points.

His net approval in Florida has decreased by 24 percentage points.

85% of GOP primary voters approve of Trump. 14% don't.

76% of GOP primary voters support Trump's nomination. 20% support another candidate.


Joe Biden tells supporters he plans 2020 bid - he'll announce in early April after the end of Q1 reporting.

Politico: World leaders tell Biden: We need you

"At the Munich Security Conference, Biden heard a repeated refrain, according to a conference attendee familiar with the conversations: The world needs you."

Can Terry McAuliffe sell himself to leftward-leaning Democrats in 2020? WP reports, the former Virginia governor once appeared to be well positioned for a White House run as a socially liberal, business-friendly Democrat. But now it’s unclear if there is room for McAuliffe in a party that seems to be pulling leftward.

BTW - The answer is no.

Candidates reach for the ticket to Democratic debates: 65,000 donors: WP reports, the new criteria have proved to be a boon to lesser-known candidates seeking a national stage and could create challenges for more-established politicians seeking to break away from the pack.

COMMERCE

Google hit with a $1.7 billion fine over EU ad blocking: WSJ reports, the European Union fined Alphabet’s Google $1.7 billion for abusing the dominance of its search engine to block competitors in the niche market of selling text ads on the search results that appear on third-party websites. 

Disney closed its acquisition of the major entertainment assets of 21st Century Fox, combining some of Hollywood’s best-known studios, characters, and franchises to better compete against Netflix.

LAT: Disney-Fox deal is complete; CEO Bob Iger's big swing could change media industry

Ban on cashless stores: New Jersey Governor signs law making it the second state to ban cashless shops and restaurants, with some exceptions. The new law takes aim at Amazon Go and others. 

Peloton is being sued for using music without permission in its video fitness classes: The Verge reports, several members of the National Music Publishers Association (NMPA) have collectively filed a lawsuit against fitness startup Peloton today, seeking over $150 million in damages. The complaint, filed by Downtown Music Publishing, Ultra Music, and eight other publishing groups, says that Peloton has been using their musical works for years in its workout videos without proper licensing, resulting in income lost for songwriters.

Bayer shares slide after latest Roundup cancer ruling: Reuters reports, shares in Germany's Bayer's fell more than 12 percent on Wednesday after a second US jury ruled its Roundup weed killer caused cancer.

CULTURE

Centibillionaires: Bill Gates joins Jeff Bezos as the only two members of the $100 Billion Club. Gates’s fortune, now $100 billion on the nose, hasn’t reached such heights since the dot-com boom, when Bezos was only beginning his march up the world’s wealth rankings. The Amazon founder is now worth $145.6 billion.

Bloomberg tracks the fortunes of some 2,800 billionaires. Of those, 145 are worth at least $10 billion, making them decabillionaires. 

Hermes has become the latest fashion industry victim of men’s casual dress: Signaling weakness in its silk business as neckties lose their allure. Revenue from silk and textiles rose 3 percent in 2018, the slowest growth of the French luxury-goods maker’s business units. Chief Executive Officer Axel Dumas said Wednesday the company has been shifting production to adjust to men’s new preferences. “There’s a structural decline” in neckties, Dumas said on a call with reporters. “We have a lot of novelties coming. We’re launching more scarves for men.”

SPORT

ESPN + UFC have orchestrated a knockout deal allowing the world-wide-leader to stream 12 UFC fights per year for the next 7 years.

WSJ: Mike Trout, Los Angeles Angels near record $430 million deal

I've never seen Mike Trout play baseball.

Barclays unveiled as Women’s Super League sponsor in groundbreaking deal: Guardian reports, the Football Association has unveiled Barclays as the first sponsor of the newly professional Women’s Super League in what has been described as a groundbreaking multimillion-pound deal. The Guardian understands it is worth more than £10m over the next three seasons. According to the analytics firm Nielsen, the sponsorship is a record for women’s sport in the UK. First the first time there will be prize money in WSL, with £500,000 divided according to league position each season.

Theresa May, Meatless Mondays, Beto O'Rourke, Joe Biden, Zinedine Zidane

Theresa May, Meatless Mondays, Beto O'Rourke, Joe Biden, Zinedine Zidane

March 12, 2019
Curation and commentary from 
Marc A. Ross

Reporting from Alexandria, Virginia 

TOP FIVE

✔️ Brexit vote looming, Theresa May secures EU help

✔️ New York City school menus go meatless on Mondays

✔️ Registered Republicans like Trump but want a GOP challenger

✔️ Boeing scrambles to contain fallout

✔️ Zinedine Zidane returns to coach Real Madrid
 

GLOBALIZATION

FT: May agrees revised Brexit deal with Juncker

‘Now is the time to come together,’ says PM, hoping new assurances will win over critics.

Theresa May urged MPs last night to unite and back an “improved Brexit deal” after securing changes that she said ensured Britain could not be trapped in the Irish backstop.
 

May secures concessions from EU on Brexit deal: WSJ reports, British Prime Minister Theresa May secured concessions from the European Union over her Brexit divorce deal, in a last-minute push to head off a large-scale defeat when the British Parliament votes on the agreement Tuesday.

Brexit vote looming, Theresa May secures EU help: NYT reports, the British prime minister flew to Strasbourg and won concessions on the “backstop” plan for the Irish border. Whether they are enough remains unclear.

The world's oldest alliance that is still in force: The alliance between England and Portugal was signed in 1373 and last activated in WWII.

Paris okays proposed French-German parliamentary assembly: DW reports, a combined German-French parliamentary assembly that will be able to propose joint but non-binding resolutions has been given the green light by France's National Assembly. Its first sitting is due on March 25 in Paris.

US warns Germany to drop Huawei or lose intel access: WSJ reports, the Trump administration has told Germany it would limit the intelligence it shares if Berlin allows Huawei to build Germany’s 5G mobile-internet infrastructure.

AFP: No date yet for Trump-Xi trade summit: White House

Nikkei: Japan to forgo inviting China's Xi asstate guest in June


Japan will likely ditch plans to invite Xi Jinping as a national guest in June out of consideration for Trump who is scheduled to visit the month before.

Fear of Trump walking on Xi haunts China as trade talks near end: Bloomberg reports, Trump and his aides have for weeks been pushing for Xi to agree to a meeting at Mar-a-Lago to finalize a deal as soon as this month to end a dispute that has cast a shadow over the global economy. Trump himself has said that it’s only when the two leaders meet that the final details can be ironed out. Chinese officials, however, have long been wary of putting Xi in a position where he might be embarrassed by an unpredictable Trump or forced into last-minute concessions.

China’s economy might be nearly a seventh smaller than reported: The Economist reports, a new paper, by Chang-Tai Hsieh of the University of Chicago and three co-authors from the Chinese University of Hong Kong, finds that industrial output and investment have been consistently embellished. As a result, they argue that China overstated real GDP growth by two percentage points on average every year from 2008 to 2016. Over time that adds up: official figures for 2016 would have exaggerated the size of the economy by 16%, or more than $1.5trn.

Mexico: President Andres Manuel Lopez Obrador insisted Monday the Mexican economy is strong as he completed 100 days in office, dismissing critics who warn a climate of uncertainty could weigh on growth.

"Fortunately, our economy is on the march. It's still growing slowly, but there's not the slightest sign of a recession, as our conservative opponents wish and as their economic analysts forecast, in bad faith."

FT: Blackouts raise political heat on Venezuela’s Nicolás Maduro

Washington and Juan Guaidó, opposition leader, blame power cuts on beleaguered leader.

School and work canceled for the third day in Venezuela.


Pompeo accuses Cuba and Russia of propping up Venezuelan ruler: NYT reports, Pompeo’s comments came amid a devastating power outage that has plunged many of Venezuela’s most populous areas into darkness, spoiling food in a nation where little is available.

“When there is no electricity, thank the marvels of modern Cuban-led engineering,” Pompeo said in comments laced with sarcasm. “When there’s no water, thank the excellent hydrologists from Cuba. When there’s no food, thank the Cuban communist overlords.”

India votes: The world’s largest, most complicated democratic exercise: FT reports, this year’s electorate is 900m, around 10% higher than in 2014, and as many as 130m are first-time voters

OTD: In 1930 Gandhi started a 240-mile march to the sea in protest against the British monopoly on the sale of salt.

NATO chief invited to address US Congress amid tensions: AFP reports, House Speaker Nancy Pelosi on Monday extended a rare invitation to the head of NATO to address a joint meeting of Congress in early April to mark the alliance's 70th anniversary.

Washington is scheduled to host a NATO ministerial meeting on April 3 and 4.

Former Vice President Cheney challenges Pence on Trump’s foreign policy: WP reports, at a closed-door retreat hosted by the American Enterprise Institute, Cheney compared the president’s instincts to those of President Barack Obama.

DISRUPTION

New York City school menus go meatless on Mondays: WSJ reports, the NYC mayor says the policy will improve the health of children and the planet; food trade group says the move will limit low-income youngsters’ access to protein.

The nation’s largest school district follows others, such as Los Angeles, in offering only vegetarian dishes on Mondays, saying the move will help the environment by cutting greenhouse gases. 

Women finally get their own World Cup soccer style: NYT reports, for decades, women’s uniforms were just derivations of men’s. Now, taking specific design cues, like ponytail-friendly necklines, comes the good stuff

Nike revealed the new home and away uniforms for 14 out of 24 competing teams, and for the first time since the brand began working with the WWC tournament in 1995, each one of them was made specifically for the women’s teams, not as derivations or extensions of kits made for men.

POLITICS

Impeachment - not for Nancy: House Speaker Nancy Pelosi said she doesn’t support pursuing the impeachment of Trump.

NYT: Impeaching Trump is ‘not worth it,’ Nancy Pelosi says

WP: Nancy Pelosi on impeaching Trump: ‘He’s just not worth it’

In a wide-ranging interview, the country’s most powerful Democrat says Trump is unfit to be president — “ethically,” “intellectually” and “curiosity-wise” — but impeachment would be too divisive.

Once again, a brilliant political move by Nancy Pelosi - he strategy ensures two winning tactics to remove Trump from the White House.


New York attorney general opens investigation of Trump projects: NYT reports, the New York attorney general’s office late on Monday issued subpoenas to Deutsche Bank and Investors Bank for records relating to the financing of four major Trump Organization projects and a failed effort to buy the Buffalo Bills of the National Football League in 2014, according to a person briefed on the subpoenas.

DSM Register: Registered Republicans like Trump but 40 percent want a GOP challenger

Most registered Republicans think Trump is doing a good job, but they are split over whether another GOP candidate should challenge him for their party’s nomination in 2020.

Name the last president of the modern age seeking re-election to have a primary challenger who went onto win the general election?

You can't.

It's never happened.

Now the Dems care about Wisconsin: The Democratic Party has selected Milwaukee to hold its 2020 convention.


Reuters: Beto O'Rourke heading to Iowa, fueling speculation about White House bid

A trip to Iowa on Saturday, where the first votes in the nominating contest will be cast in February, suggests his entry into the race is imminent.

William McGurn: The case for Joe Biden: The former vice president could pose a formidable challenge to Trump—if Democrats let him.

He brings a Democratic ethos that he says was forged in blue-collar Scranton, PA.

Biden’s best hope is to campaign as someone who will restore civility to the White House.

The 2016 election was unusual in that the leading two presidential candidates each had unfavorable ratings north of 50%.


Joshua Spivak: Why Joe Biden would probably win the Democratic primary: If Biden enters the race, his chances of winning the nomination are strong. Most modern presidents retain popularity after they leave office, especially within their own party, and the vice president is often able to translate this popularity into a successful run.

COMMERCE

NYT: Boeing scrambles to contain fallout from deadly Ethiopia crash

Similarities to a recent crash in Indonesia provoked concern among carriers, pilots, flight attendants and passengers.

More than a dozen airlines grounded the 737 Max 8, but the FAA said it did not have enough information to take action.

The Boeing 737 Max 8 jets typically make more than 8,500 flights per week.

The FAA has no plans to ground Boeing’s 737 MAX airliners following the deadly crash in Ethiopia. The FAA said the Boeing 737 Max 8 was airworthy but said it would mandate design changes to the aircraft from Boeing by April. Boeing confirmed the announcement and will deploy a software upgrade across the fleet “in the coming weeks.”


LAT: US airlines express confidence in Boeing’s 737 Max, despite calls for grounding

Barrick Gold, the world’s biggest gold miner, called off its nearly $18 billion offer for rival Newmont Mining after the two agreed to a Nevada joint venture.

Walmart toughens delivery demands for suppliers: WSJ reports, looking to cut inventory while meeting e-commerce demands, the retailer wants more of the goods it orders delivered on time and in full

Anta Sports Products, a minor leaguer outside of China, is buying the Finnish owner of athletic brands such as Wilson for 4.6 billion euros ($5.17 billion), looking to compete with Nike and Adidas in both home and away markets.

Apple invited media to a March 25 event at the Steve Jobs Theater on its campus in Cupertino, California, where it is expected to launch a television and video service.

CULTURE

Captain Marvel, the first Marvel superhero film with a female character in top billing, soared atop North American box offices in its debut weekend, with ticket sales of $153.4 million.

SPORT

LAT: Oakland’s Athletics need a home. They may get one — and provide 6,000 more

The Oakland Athletics have offered to build 3,000 homes near a proposed waterfront ballpark and another 3,000 on the Coliseum site for a city desperately in need of housing.

CBS: Nick Foles signs as Lululemon men’s new elite ambassador

CNN: Zinedine Zidane returns to coach Real Madrid

Champions League - Round of 16: Leg 2 of 2
:

Manchester City vs Schalke 04 @ 4:00 pm ET (Aggregate: 3-2)
Juventus vs Atletico Madrid @ 4:00 pm ET (Aggregate: 0-2)

Bayern vs Liverpool - Wednesday @ 4:00 pm ET (Aggregate: 0-0)
Barcelona vs Lyon - Wednesday @ 4:00 pm ET (Aggregate: 0-0)


Champions League - Quarterfinals - Qualified teams:

Ajax
Porto
Manchester United
Tottenham Hotspur

The draw for the quarter-finals will be held on 15 March 2019.

The first legs will be played on 9 and 10 April, and the second legs will be played on 16 and 17 April 2019.

Leonardo da Vinci, SpaceX, Pennsylvania Democrats, David Beckham

Marc Ross Daily February (1).png

Leonardo da Vinci, SpaceX, Pennsylvania Democrats, David Beckham

Marc Ross Daily
March 4, 2019
Curation and commentary from 
Marc A. Ross

Reporting from Alexandria, Virginia 

Marc Ross Daily  = News + Analysis at the Intersection of Globalization + Disruption + Politics


TOP FIVE

✔️ US, China close in on trade deal

✔️ Venezuela opposition leader Juan Guaidó plans return

✔️ Japan okays research using human cells in animals

✔️ House Democrats to probe claims of Trump obstruction

✔️ Glory Glory Man United? The paradox of profits without trophies
 

GLOBALIZATION

US, China close in on trade deal: WSJ reports, China and the US are close to completing a trade deal, though hurdles remain. Both countries could lift some tariffs imposed last year, and Beijing would agree to ease restrictions on American products.

A formal agreement could be reached at a summit between Trump and Xi, probably around March 27, after Xi finishes a trip to Italy and France.

The two sides continue to negotiate over issues involving Chinese industrial policy the US argues gives Chinese domestic firms an advantage, especially state-owned enterprises.


NYT: US and China near a trade deal to drop tariffs

The Trump administration is close to a trade deal with China that would roll back tariffs on both sides of the Pacific but may do little to achieve the substantive changes to China’s economy that the United States initially set out to win.

The agreement under discussion would expand markets for American financial services firms and farmers, in part by requiring that China buy large amounts of energy and farm goods, like liquid natural gas and soybeans.


Noah Smith: Trump should take aim at China’s joint-venture rule: The partnerships required to do business in the country are a cover for stealing US know-how. 

Huawei executive files suit over Canadian detention: WSJ reports, Meng Wanzhou claims her legal rights were violated when she was detained at Vancouver International Airport in December following an extradition arrest request from the US.

Nikkei: Five things to expect from China's top political meeting: Slowing growth and geopolitical tensions to dominate discussions at the National People's Congress.

China convened on Sunday its once-a-year meeting of the country's two top political bodies to set the nation's direction for the coming year.

The country's foremost political advisory body, the Chinese People's Political Consultative Conference, kicked off the nearly two week-long meeting, preceding the National People's Congress on Tuesday.

Economic slowdown

Trade war with the US
Confidence-building
Reform
Foreign policy

On Tuesday morning, Premier Li Keqiang’s work report will set targets for gross domestic product expansion, the fiscal balance, inflation and other factors. The domestic policy mix will be defined by the three so-called “critical battles,” launched in 2017, against pollution, financial risks, and poverty.

China's legislature will vote next week on a highly-anticipated bill that will bring "a fundamental change" for foreign investors in a move that could help ease US trade tensions.


Nikkei: China hails 2019 as a 'critical year' to realize Xi's goals

Nation's biggest political meetings of the year kicked off on Sunday.

China says it needs a ‘proper increase’ in defense spending: Bloomberg reports, Beijing said it would need to increase its military spending to protect itself.

Mark Helprin: The US is ceding the Pacific to China: While Washington’s focus is elsewhere, Beijing plays the long game—that means preparing for war.

South Korea to seize on world's first full 5G network: Nikkei reports, SK Group and KT lead the pack in new services like holographic streaming.

Philippine Navy looks to join rescue bid for Subic shipyard: Nikkei reports, admiral prefers South Korean or US bidders to preserve strategic facility

NYT: After India loses dogfight, questions arise about its ‘vintage’ military

An aerial clash last week with Pakistan was a rare test for the Indian military — and it left observers a bit dumbfounded.

As America strengthens ties with India to help counter China, critics say its military faces challenges, including aging hardware and low funding.


AFP: Modi and Imran bask after 'good' Kashmir crisis

Venezuela opposition leader Juan Guaidó plans return: WSJ reports, Venezuelan opposition leader Juan Guaidó said he plans to return to Venezuela on Monday in a move that directly confronts President Nicolás Maduro’s authority and could end with Mr. Guaidó in jail.

US considers emergency economic aid for Venezuela: FT reports, financial assistance would be dependent on Nicolás Maduro standing down.

Pressure on Kenny over Facebook lobby claims: The Times reports, Enda Kenny is being pressed to say whether he used Ireland’s presidency of the EU to lobby other member states on behalf of Facebook after “explosive” allegations about his alleged inappropriate relationship with the social media giant emerged over the weekend. 

Brexit bribe? UK PM May unveils $2.1 billion fund for Brexit-backing towns: Reuters reports, British Prime Minister Theresa May will on Monday set out plans for a 1.6 billion pound ($2.11 billion) fund to help to boost economic growth in Brexit-supporting communities with ministers denying it was a bribe to win support for her EU exit deal.

France to set new €500 million digital tax for 30 tech giants: DW reports, France's finance minister will bring forward legislation this week for a 3 percent tax on companies including Google and Facebook. Public anger about tax avoidance by digital giants has prompted the move.

AFP: Macron calls for French reconciliation with Italy

French President Emmanuel Macron has launched a call for reconciliation with Italy following a diplomatic spat between the neighbors that saw Paris briefly recall its ambassador.

Relations between the two countries have fractured due to repeated clashes between centrist Macron and Italy's populist coalition government.

France and Italy to celebrate Leonardo da Vinci's anniversary together: DW reports, France's president has invited his Italian counterpart to celebrate the 500th anniversary of the artist's death. Emmanuel Macron hopes the gesture will help end a diplomatic spat between the neighbors.

Washington restores status of EU mission to US: DW reports, the US has announced a reversal of last year's sudden downgrading of the European Union's diplomatic status. The EU delegation in Washington has been restored to member state from international organization.

DISRUPTION

SpaceX rocket with an unmanned crew capsule blasted off on Saturday for the International Space Station, in a key milestone for Elon Musk’s space company and NASA’s long-delayed goal to resume human spaceflight from US soil later this year.

Japan okays research using human cells in animals: AFP reports, Japan has given the green light to a controversial research process involving implanting animals with human stem cells that could eventually help grow human organs for transplant inside animal hosts.

POLITICS

House Democrats to probe claims of Trump obstruction: FT reports, the Judiciary committee chair says he will seek dozens of documents this week.

WP: House Judiciary chairman says he will launch probe of Trump’s ‘abuse of power’

On Monday the House Judiciary committee will issue demands for documents from more than 60 people and entities. The targets include the president’s son Donald Trump Jr and the chief finance officer of Trump’s business empire, Allen Weisselberg. Other possible targets are John Kelly, Trump’s former chief of staff, and former White House counsel Don McGahn.

Mueller's final report will ignite an epic war over disclosure: Bloomberg reports, there will be a struggle in Congress, on cable TV and social media and probably in the courts over how much must be disclosed from what will begin as a secret report to Attorney General William Barr. There also will be an epic political fight over whether the findings implicate President Donald Trump in wrongdoing that may even merit his impeachment, as some Democrats say, or clear him after a 21-month investigation that he and other Republicans call a “witch hunt.”

Trump’s emergency declaration hits a major roadblock in the Senate: LAT reports, Republican Sen. Rand Paul has reportedly become the fourth senator on his side of the aisle to commit to voting for a Democratic-backed resolution to rescind Trump’s emergency declaration.

OTD: In 1861 Abraham Lincoln was inaugurated as American president for the first time.

WSJ: Trump’s job-approval rating ticks up, along with warning signs

Wall Street Journal/NBC News poll also finds Democratic primary voters looking for a nominee with aggressive policy ideas.

Trump’s job-approval rating, at 46%, is similar to those of Clinton and Obama at this point in their terms.

The poll also found the majority of Democratic primary voters are looking for a nominee with aggressive policy ideas.

Trump’s improved rating to an uptick in support from white men without a college degree.

Trump cumulatively leads a generic Democratic opponent, 46% to 40%, in four Midwestern states he carried in 2016—Indiana, Michigan, Ohio, and Wisconsin—along with Pennsylvania, which borders the Midwest.

Trump trails a generic Democrat, 50% to 39%, in five Sunbelt states Democrats aim to flip in 2020: Arizona, Florida, Georgia, North Carolina, and Texas.


Pennsylvania Democrats wonder how far is too far left: NYT reports, some worry that Democrats’ momentum in the state could screech to a halt if the party’s eventual 2020 nominee strays far left.

Anne-Marie Slaughter: Today’s centrist candidates are not a cross-section of America: Those who espouse a new political middle ground are overwhelmingly affluent white men.

"Any effort to create a sustainable new coalition must reach across gender, race, ethnic, and generational lines. Otherwise “centrist independent” will become code for well-off white people who no longer feel comfortable in the Democratic party."

Death toll tops 20 after tornadoes hit Southeast: Storms swept through swaths of Alabama and Georgia; the most destruction appears to be in Lee County, Ala.

COMMERCE

Vale chief steps down over deadly dam collapse in Brazil: FT reports, Fabio Schvartsman agrees to ‘temporary’ resignation under pressure from prosecutors.

HBO and Turner chiefs depart amid AT&T shake-up of WarnerMedia: FT reports, Richard Plepler and David Levy exits follow final approval for $80bn takeover.

CULTURE

Bloomberg: Spielberg says Netflix and theater films aren't equal for Oscars 

SPORT

Glory Glory Man United? The paradox of profits without trophies: Can one of the world’s most profitable football clubs keep growing if it no longer wins the biggest competitions?https://on.ft.com/2EwqT90

LA Galaxy unveils a statue of David Beckham.

AFP: Neymar hints at joining Real Madrid

Pakistan, Canada, Philippines, Japan, Venezuela, Netherlands

Marc Ross Daily February (1).png

Pakistan, Canada, Philippines, Japan, Venezuela, Netherlands

Marc Ross Daily
March 1, 2019
Curation and commentary from 
Marc A. Ross

Reporting from Alexandria, Virginia 

Marc Ross Daily  = News + Analysis at the Intersection of Globalization + Disruption + Politics


TOP FIVE

✔️ Japan grows nervous about the US

✔️ Russia vows to continue support for Venezuela

✔️ The MBA myth and the cult of the CEO

✔️ This is what peak car looks like

✔️ MA bill would ban tackle football until after seventh grade
 

GLOBALIZATION

WSJ: Pakistan to release captured Indian pilot, easing tensions

Chinese factories
: Factory activity in China has been plummeting thanks to falling export orders. The latest PMI figures suggest activity has now contracted for three straight quarters, and is now at a three-year low. 

US readies final China trade deal as hawks urge caution: Bloomberg reports, debate continues in Washington over whether to push Beijing for more concessions.

Reuters: Trump warns he could abandon China trade deal as advisers tout progress

Huawei’s Meng Wanzhou retreats from public eye in Vancouver
: FT reports, founder’s daughter is under house arrest awaiting an extradition hearing to the US.

Canada seen approving extradition hearing against Huawei executive: Reuters reports, Canada is likely to announce on Friday that an extradition hearing against a Huawei Technologies Co Ltd executive can proceed, legal experts said, worsening already icy relations with Beijing.

MSCI hands Chinese stocks bigger role in global markets: FT reports, the decision by the index provider could send up to $125bn into the Chinese market.

Reuters: Pompeo says world should have eyes wide open about Chinese tech risks

Pompeo pledges to defend Philippine forces in South China Sea
: WSJ reports, the Philippines shelved a planned review of its military alliance with the U.S. in return for a verbal commitment that American forces would defend the country’s vessels in the South China Sea, removing a major irritant between the longstanding partners.

Robert Kaplan: Japan grows nervous about the US: It fears China’s advance, America’s retreat, and South Korea and Taiwan becoming compromised. https://on.wsj.com/2EpHivV

France, Netherlands seek to douse Air France-KLM controversy: DW reports, the French and Dutch finance ministers have met amid tensions over the Netherlands' move to increase its stake in the airline. The share purchase had sparked concerns of a tug of war between the two governments.

Air France-KLM shows Dutch taste for French statism: FT reports, Dutch state stake in airline shows rise of industrial nationalism in EU.

The Times: US aims to include chlorinated chicken in UK trade deal

The United States has indicated that it will push to get food including chlorinated chicken and hormone-fed beef on to British supermarket shelves under a post-Brexit trade agreement.

AFP: Russia vows to continue support for Venezuela, including with aid

NYT: As Huawei’s influence in Canada grows, some fear spying. Others just want fast internet.


Trudeau’s party is behind him for now after bombshell testimony: Bloomberg reports, the Canadian prime minister plowed ahead Thursday after his former attorney general alleged, in explosive testimony aired on national television, that he interfered in the justice system by pressing to end a criminal case against an iconic Quebec construction firm. Speaking to reporters in Montreal, Trudeau insisted again his government had every right to consider the job losses that could result from a guilty verdict for SNC-Lavalin Group Inc.

This Giant Beast That is the Global Economy official trailer: From the director of The Big Short and Vice and executive producer Will Ferrell comes an 8-part globe-spanning exploration of the most compelling topics impacting the global economy. Through the curious mind of host Kal Penn, see firsthand all the surprising ways the economy interconnects and impacts the lives of people all over the planet. Watch here: https://amzn.to/2ElBYcZ

DISRUPTION

Dan Rasmussen + Haonan Li: The MBA myth and the cult of the CEO: Three decades ago, an influential Harvard Business School professor made the argument that CEO pay should be tied to stock performance. Was he horribly wrong? http://bit.ly/2T8iSkG

"What if the “best and brightest” — those executives with the most dazzling CVs and track records — don’t perform any better than less credentialed executives?"

The Times: Polymaths wanted at London Interdisciplinary School, Britain’s first new university in 40 years

LIS is building a new university that prepares students to tackle the most important and complex problems.

For those who want to shape the world, not just fit in.


Dopamine: Beyond the rush of a reward: The neurotransmitter famously provides the thrill we get from a surprise, a phenomenon known as reward prediction error. But growing evidence suggests the chemical also tracks movement, novelty and other neurobiological factors. http://bit.ly/2T79o9i

The NFL is drafting quarterbacks all wrong: No franchise or GM has shown the ability to beat the draft over time, and economists Cade Massey and Richard Thaler have convincingly shown that the league’s lack of consistent draft success is likely due to overconfidence rather than an efficient market. https://53eig.ht/2TbPyKs

Email message I received from Google: "March 1–2 is National Day of Unplugging. So unwind and take a break from the screen. When you return, check out these apps that boost digital wellbeing."

David Welch + Keith Naughton: This is what peak car looks like: The automobile—once both a badge of success and the most convenient conveyance between points A and B—is falling out of favor in cities around the world as ride-hailing and other new transportation options proliferate and concerns over gridlock and pollution spark a reevaluation of privately owned wheels. Auto sales in the U.S., after four record or near-record years, are declining this year, and analysts say they may never again reach those heights. Worldwide, residents are migrating to megacities—expected to be home to two-thirds of the global population by midcentury—where an automobile can be an expensive inconvenience.

POLITICS

Garrett Graff: 5 key takeaways from Michael Cohen's prepared testimony to Congress http://bit.ly/2T5m9kJ

"The Trump Organization was a small family business—and the campaign was run like one. There were few serious executives or players either not named Trump or, in Jared Kushner’s case, married to one—and in terms of the Trump Organization, perhaps the only two meaningful staffers not named Trump, Cohen, and CFO Allen Weisselberg are both cooperating with investigators. It’s never seemed all that believable that Paul Manafort, Don Jr., and Jared Kushner—three central figures who were with him every day, people who were in constant contact with him and in constant competition for his affection and gratitude—would have hosted a meeting a meeting in Trump Tower, the building where the candidate lived and worked, with Russians promising gifts and not mention it either before, during, or after."

Peggy Noonan: Michael Cohen makes history: There’s no precedent for such an attack on the essential nature of an American president. https://on.wsj.com/2EpHnQf

NYT: Trump ordered officials to give Jared Kushner a security clearance

Trump overruled concerns from intelligence officials and the top White House lawyer about giving his son-in-law access to sensitive information, four people briefed on the matter said.

Democrats vow to investigate White House security clearances: FT reports, top lawmakers show concern over report of Trump intervention for son-in-law Jared Kushner.

Holman Jenkins: The media will re-elect Trump: They would rather believe tall tales about Russia than hear what voters said in 2016. https://on.wsj.com/2ElznzQ

LAT: Democrats, facing a big candidate field, ask: Who is most electable over Trump?

Election 2020: Washington Gov. Jay Inslee enters 2020 presidential race

Jay Inslee is a fourth tier candidate.

Election 2020: Crystal Ball Electoral College ratings:

-- Crystal Ball's initial Electoral College ratings reflect a 2020 presidential election that starts as a Toss-up.

-- Crystal Ball starts with 248 electoral votes at least leaning Republican, 244 at least leaning Democratic, and 46 votes in the Toss-up category.

-- The omissions from the initial Toss-up category that readers may find most surprising are Florida and Michigan.

-- Much of the electoral map is easy to allocate far in advance: About 70% of the total electoral votes come from states and districts that have voted for the same party in at least the last five presidential elections.


OTD: In 1872 Yellowstone, America’s first national park, was established to protect 2.2 million acres in Idaho, Montana and Wyoming.

COMMERCE

Walt Disney Co. is in active discussions with AT&T Inc. to acquire the 10 percent stake in Hulu that is currently controlled by WarnerMedia.

AMC Theatres' Stubs A-List program, the subscription service that allows customers to see three movies a week for $19.95 a month, has hit 700,000 subscribers.

Luckin Coffee, which has ambitions to overtake Starbucks in China this year, has tapped three banks including Credit Suisse to work on a US IPO, Reuters reports. The Beijing-based startup, which is targeting a valuation of about $3B, opened over 2,000 cafes last year and aims to launch 2,500 new outlets in 2019. Luckin is said to have chosen New York for the listing, as Hong Kong generally requires IPO applicants to have a track record of three financial years.

Gap said it plans to split itself into two independent publicly traded companies, one unnamed company consisting of the iconic Gap brand and Old Navy.

Tesla said it would begin shutting stores and move to selling vehicles only over the internet.

Tesla cuts price on Model 3 again to $35,000.

Royole displays flexible approach to foldable phones: NIkkei reports, startup takes on Samsung, Huawei with home-grown technology.

HBO Chairman and Chief Executive Richard Plepler is stepping down in the wake of new owner AT&T seeking to put its own stamp on the premium cable channel. 

Come back to Queens: Open letter to Bezos from:

- Ajay Banga
- Ken Chenault
- James Gorman 
- Robin Hayes
- Joey Levin 
- Bill McDermott 
- Robert Rubin 
- Fred Wilson 
(and many more) 

To reverse the decision to pull New York campus. This full-page letter to run today in the NYT. 

See it here:
 https://buff.ly/2Vre1I3

Gov. Andrew M. Cuomo, who was staggered by Amazon’s decision to pull out of its plans to come to New York City, is working intensely behind the scenes to lure the company back, even connecting with Jeff Bezos, Amazon’s founder, to make a personal pitch. 

CULTURE

Back to the water: After "Aquaman" smashed the box office last year with over $1 billion worldwide, a sequel was inevitable. On Wednesday, the studio Warner Bros. set its release date for December 16, 2022.

5 tips to starting a daily creative practicehttps://buff.ly/2sOfxaT 

SPORT

The truth according to Zlatan: ‘I’m not an act,’ the Los Angeles Galaxy’s star striker declares as he begins his second season in Major League Soccer. ‘I am the real deal.’ https://nyti.ms/2EqelQs

He was absolutely not joking when, upon signing with the Galaxy last March, he bought a full-page advertisement in The Los Angeles Times.

“Dear Los Angeles,” it read. “You’re welcome.”


How FC Barcelona are preparing for the future of football: FT reports, science and sport intersect in the Catalan giant’s new ‘innovation hub.’ https://on.ft.com/2Enbyrf

Bryce Harper signs $330 million deal with Phillies.

Ross Rant Flashback: The Nats don't play in baseball town:

"the city is waking up to another Nats season cut short and not matching expectations. In a town full of type A personalities and high school class presidents, victory and success are deemed a birthright."

https://buff.ly/2H6dWpn

Massachusetts bill would ban tackle football until after seventh grade:  NYT reports, the bill, which moved to the Massachusetts Legislature’s Joint Committee on Public Health this week, follows attempts by legislators in five other states who have tried — but failed — to pass similar measures to protect growing brains from traumatic injury. The bipartisan bill, known as No Hits, would impose financial penalties for any school league or other entity that does not comply.


Enjoy the ride + plan accordingly.

-Marc 

Kashmir, Jeremy Corbyn, North Korea, Beto O'Rourke, Illumina, Puma

MRD July.png

Kashmir, Jeremy Corbyn, North Korea, Beto O'Rourke, Illumina, Puma

Marc Ross Daily
February 28, 2019
Curation and commentary from 
Marc A. Ross

Reporting from Alexandria, Virginia 

Marc Ross Daily  = News + Analysis at the Intersection of Globalization + Disruption + Politics


TOP FIVE

✔️ Pakistani military says it shot down 2 Indian warplanes 

✔️ Glastonbury festival bans sale of single-use plastic bottles

✔️ Toledo votes to give Lake Erie personhood status over algae blooms

✔️ FedEx will soon start testing robots that could make same-day deliveries 

✔️ Puma will become official uniform supplier for Manchester City
 

GLOBALIZATION

NYT: Pakistani military says it shot down 2 Indian warplanes 

Guardian: India calls forimmediate return of pilot shot down by Pakistan over Kashmir


CNBC: Pakistan claims it shot down 2 Indian planes, captured pilot

DW: Nuclear fears abound after India-Pakistan military escalation


India's ambassador to France, Vinay Mohan Kwatra, told France 24 on Wednesday that Pakistan is "100 percent responsible for where we are right now", saying there is zero evidence that Islamabad has taken action against terror groups.

Pakistan’s ambassador to France, Moin ul Haque, told France 24 on Wednesday that despite the decision to shoot down two Indian jets in retaliation for air strikes on Pakistani soil, Islamabad is committed “not to escalate" but rather "to defuse the situation". Pakistan's response to what he called an "unfortunate act of aggression" was "clearly part of ourself-defence", he said.


WSJ: US drops threat of 25% tariffs on Chinese goods

US official: Much work remains to reach US-China trade deal
: AP reports, “Much still needs to be done before an agreement can be reached,” US Trade Representative Robert Lighthizer said. “If we can complete this effort, and again I say if, and can reach a satisfactory solution to the issue of enforceability ... we might have an agreement that turns the corner in our economic relationship with China.”

Bloomberg: Trump’s trade czar urges patience on China deal president craves

Senate inquiry finds problems with China-funded Confucius Institute at US campuses
: LAT reports, after an eight-month probe, the Senate’s Permanent Subcommittee on Investigations described systemic problems in the institute’s language programs, saying they lack transparency, threaten academic freedom and give the Chinese government access to the U.S. education system that China does not extend to American programs.

German cyber chief backs ‘no spy’ deal over Huawei: FT reports, remarks suggest Berlin could allow Chinese company to take part in network roll-out.

EU scrambles to stop Russian interference in elections: FT reports, cyber security experts report sudden uptick in state-sponsored hacking activity.

WSJ: Trump, Kim end summit early with no pact

‘I am never afraid to walk away from a deal,’ Trump says

Trump and Kim failed to reach an agreement at a second summit aimed at curbing North Korea’s nuclear-weapons program.


NYT: Trump’s talks with Kim Jong-un collapse over North Korean sanctions

FT: Trump and Kim fail to reach denuclearisation deal 

Hanoi summit abruptly cut short on second day of talks.

LAT: ‘Sometimes you have to walk’: Trump’s summit with Kim Jong Un ends without a deal

FT: Labour party formally backs new referendum on Brexit


Jeremy Corbyn announces shift after his own plan is defeated in parliament

UK Parliament to decide between 'no deal' and delay: DW reports, UK lawmakers have voiced their support for a three-step plan that could allow them to delay the UK's departure from the EU. MPs rejected an alternative plan that had been proposed by the opposition Labour Party.

Martin Wolf: A second Brexit referendum is now essential: If democracy means anything, it means a country’s right to change its mind.

DISRUPTION

Glastonbury festival bans sale of single-use bottles: The Glastonbury festival will ban the sale of single-use plastic bottles this year, it said yesterday. Plastic bottles will not be supplied backstage, in dressing rooms or to production and catering staff, according to its website.

US companies put record number of robots to work in 2018: Reuters reports, US companies installed more robots last year than ever before, as cheaper and more flexible machines put them within reach of businesses of all sizes and in more corners of the economy beyond their traditional foothold in car plants.

Venice imposes entry fee for day-trippers: DW reports, from May, millions of day trippers to Italy's ancient, lagoon city will have to pay an entry fee. The price is set to double in 2020 and be used to keep the ancient islands clean.

There are 25 million visitors to the city of Venice in northern Italy each year. Of these about 14 million stay just for a day, and often bring their own picnics. 

POLITICS

AP: Cohen says Trump behaved 'much like a mobster would do'

NYT: Michael Cohen accuses Trump of expansive pattern of lies and criminality

LAT: Cohen delivers warning to GOP lawmakers now attacking him: Don’t ‘blindly’ follow Trump


CNBC: Michael Cohen: 'I fear' Trump won't peacefully give up the White House if he loses the 2020 election 

WP: The economy expanded 2.9 percent in 2018, beating previous years but missing Trump’s goal


US economy grew 2.6% in the fourth quarter.

Bloomberg: Beto O'Rourke says he's decided on 2020, will announce plans soon  

As Biden weighs 2020 bid, Democrats ask: 'Does he meet the moment?' Reuters reports, former US Vice President Joe Biden said this week he was “very close” to deciding whether to make a 2020 White House bid and will run only if he thinks he can win the Democratic Party’s nomination.

Jonathan Bernstein: How to handicap the 2020 race: Forget polls and fundraising totals. Here’s how to tell who’s really a contender. https://bloom.bg/2T5E2zX

High-profile endorsements are one useful measure.

Another metric to follow is which candidates have signed up campaign professionals with deep ties to the party; a strong candidacy will draw staffers who have worked for a range of same-party candidates, demonstrating a coalition-style campaign.


WP: The popular vote could decide the 2020 presidential election, if these states get their way

Colorado is set to become the latest member of a group of states banding together to bypass the electoral college system.

The National Popular Vote Interstate Compact — which already has 11 states and the District of Columbia on board — would hand the 2020 presidential election to whoever wins the popular vote. But it would only take effect if states representing at least 270 electoral college votes pass the law.


Toledo votes to give Lake Erie personhood status over algae blooms: Guardian reports, this week, more than four years after the devastating algae bloom in 2014 that cut off drinking water for 500,000 people, Toledo voters passed the Lake Erie Bill of Rights, a unique charter amendment that establishes the huge lake as a person and grants it the legal rights that a human being or corporation would have.

New law will allow people of Toledo to act as legal guardians for Lake Erie, and polluters could be sued to pay for cleanup costs.

The final results weren’t even close, as it passed by a 61% to 39% margin.


COMMERCE

Southwest gets FAA OK for flights to Hawaii from California.

Uber + Lyft are planning to give some drivers the chance to take part in their initial public offerings.

FedEx will soon start testing robots that could make same-day deliveries of medicine, pizzas and other items to consumers’ homes.

How Huawei tried to sell itself to Motorola for $7.5bn: 2003 deal between Chinese group and US partner would have changed course of telecoms history. https://on.ft.com/2T7rf04

Huawei racked up a slew of deals to sell 5G equipment at the world's top mobile fair in Spain despite Washington's campaign to convince its allies bar the firm from their next-generation wireless networks.

Weight Watchers calls on Oprah to help sell wellness after abrupt name change to WW left people confused.

OneWeb launches first internet satellites in race with SpaceX.

Illumina's first machines, introduced in 2006, could decode a full human genome for about $300,000. A model released in 2014 can do so for about $1,000 and has made DNA sequencing widespread, helping diagnose diseases and find new drugs. The company’s latest machines could one day bring the cost close to $100.

British Airways announced a multi-billion dollar order for up to 42 Boeing 777 fuel-efficient passenger jets, just two weeks after Airbus said it would no longer make its A380 superjumbo.

CULTURE

WP: ‘Februburied:’ Up to 25 feet of snow has fallen in mountains on the West Coast this February

Rembrandt in the blood: An obsessive aristocrat, rediscovered paintings and an art-world feud: No one had spotted a new painting by the Dutch master for four decades — until the scion of a storied Amsterdam family found two.https://nyti.ms/2T7qpjW

‘Beverly Hills, 90210’ is being revived by Fox — with a twist: LAT reports, members of the original cast of “Beverly Hills, 90210” are returning for a six-episode event series on Fox. Nineteen years after the popular young adult drama wrapped its run, Jason Priestley, Jennie Garth, Ian Ziering, Gabrielle Carteris, Brian Austin Green, and Tori Spelling are reuniting on TV.

SPORT

AP: Johnny Manziel released, barred from other CFL teams

Angels
 owner Arte Moreno says he is interested in buying the two local Fox Sports outlets — FS West and Prime Ticket.

Puma will become the official uniform supplier to reigning English Premier League soccer champions Manchester City.

Puma CEO says the partnership with the team is "the largest deal that we have ever done."