ITK Daily | March 1
Happy Wednesday.
Here’s today’s ITK Daily.
To be ITK, know this:
Inside the deal: How Boris Johnson’s departure paved the way for a grand Brexit bargain: An ‘unholy trinity’ of UK civil servants ensconced in a Brussels basement thrashed out EU agreement. Politico
+ It was clear when Boris Johnson was forced from Downing Street that British politics had changed forever.
+ Johnson’s departure from Downing Street, on September 6, triggered an immediate mood shift in London toward the EU — and some much-needed optimism within the bloc about future cross-Channel relations.
+ The upcoming 25th anniversary of the Belfast/Good Friday peace agreement on April 10 heaped further pressure on the U.K. negotiators, amid interest from US President Joe Biden in visiting Europe to mark the occasion.
Inside the secret talks that broke Brexit deadlock on Northern Ireland: EU recognized Sunak’s willingness to plunge into detail of potential solutions after the confrontation of Johnson years. FT
+ One cabinet minister told the FT: “This could all have been done months ago, but it was him.”
Rishi Sunak holds his breath as he awaits MPs’ verdict on Brexit deal: Politico reports the British prime minister hopes to get his deal on trade rules in Northern Ireland through the UK parliament next week.
Blame, Brexit and the great tomato shortage of 2023 Sam Leith
+ The tomato shortage is what the young folk call ‘relatable content’, and those empty tomato shelves are a political Rorschach blot.
+ You see in them whatever you want to see.
+ It makes it ever more difficult for politicians. Everything is so complicated and so little, especially in terms of global trade, is really under their control.
+ We have been spoilt, no question, by globalisation and the march of technology.
+ You could say, then, that no tomatoes may not be the government’s fault: but they are sure as hell its problem.
UK’s first female Commons speaker Betty Boothroyd dies aged 93: Boothroyd became the Commons’ first-ever female speaker in 1992. Politico
What Europe’s economy needs now: The US Inflation Reduction Act should be seen as a wake-up call for Europe. As the European Investment Bank Group holds its first-ever EIB Group Forum in Luxembourg this week, policymakers can start to deliver what the European economy needs most: smart, targeted investments. Werner Hoyer
French assembly driven to brink as politicians overindulge in alcohol: The Irish Times reports alcohol-fuelled debates on pension reform prompt study on alcohol consumption.
+ “Some of them order champagne from 11 am,” a woman deputy from President Emmanuel Macron’s Renaissance coalition told Le Journal du Dimanche (JDD). “Some start on rum at 4 pm. At the beginning of the debate [on pension reform], I saw a deputy so drunk that he had to be pulled up from the floor by waiters.”
Ex-Obama campaigner voted head of Italy’s Democratic Party AP
How Kaja Kallas rose to become one of Europe's leading voices: Estonian Prime Minister Kaja Kallas warned early on about the dangers presented by Vladimir Putin. She has raised the profile of her small country in other ways too. Der Spiegel
Berlusconi blames Zelenskyy for war in Ukraine: Politico reports: ‘All he had to do was to stop attacking the two autonomous republics of the Donbas and this would not have happened,’ ex-PM said.
Absolute victory over Russia isn’t possible Fiona Hill
War in the Middle East is closer than you think: Russia isn’t parked, Iran isn’t pacified, and both are coordinating strategies with China. Walter Russell Mead
Hundreds massacred in Ethiopia even as peace deal was being reached: Soldiers from neighboring Eritrea went house to house killing villagers in Ethiopia’s Tigray region, witnesses say. WP
US commandos advise Somalis in fight against Qaeda branch: A campaign in the Horn of Africa is now the most active element in the “forever wars” the United States has waged since the Sept. 11, 2001, attacks. NYT
Reuters: Macron says French bases in Africa to be co-run with host nations
Emmanuel Macron signals humble new era for France in Africa: President hopes to reset relations with French-speaking countries on his visit to the continent in the face of growing Chinese and Russian power. The Times
How America plans to break China’s grip on African minerals: A new contest between the US and China is underway. Economist
Event of note: Crafting the future of cultural diplomacy in the digital age on March 3 @ 9:30 am ET. More here.
Reuters: Canada’s Justin Trudeau denies report that his party was warned to drop candidate over China ties
Was there foreign interference in the 2021 election? What a new report says Global News
China’s election interference could devour Trudeau and his party: Until recently, the Liberals have adopted an oddly benign stance toward Beijing. It now seems highly possible that there was a domestic political imperative. John Ivison
CSIS is worried about China interfering in our elections, even if the government isn’t Andrew Coyne
MEM: Brazil allows two Iranian warships to dock in Rio despite US pressure
Bloomberg: Lula government sets April deadline for Bolsonaro to return to Brazil
Mexico is flashing warning signals to Washington: Time was when the US overlooked an undemocratic neighbor who ensured stability and stayed onside. But the Biden administration ignores President López Obrador’s attack on his country’s electoral watchdog at its peril. Eduardo Porter
The Trump vs. DeSantis proxy battle shapes up with dueling CPAC vs. Club for Growth events: Politico reports the conservative ecosystem is engaged in a battle for the future of the party, with Trump as a main divide.
Reuters: Florida Governor DeSantis ends 'corporate kingdom' of Walt Disney World
+ Gov. Glenn Youngkin (R-VA) will speak at the Heritage Foundation’s 50th-anniversary reception on April 20 at George Washington’s Mount Vernon.
McCarthy turns to ‘five families’ to keep peace among GOP rivals BGov
US aims to chart new course for chip industry: $53 billion plan, a mix of subsidies and conditions, will be a test of US industrial policy. WSJ
+ CHIPS Act recipients must provide child care, said Commerce Secretary Gina Raimondo.
+ Those seeking $150 million or more must guarantee affordable, high-quality child care for plant workers.
+ Companies also need to share part of any unanticipated profits with the US.
+ Preference for funding will go to companies that promise not to buy back stock.
Recommended by LinkedIn
+ “Rube Goldberg-ing new mandates into an expensive and misguided industrial policy is no way to make social policy.” -- Eric Boehm
Chipmakers receiving US federal funds barred from expanding in China for 10 years: Commerce department imposes new rules on beneficiaries of $39bn program. FT
Biden is betting on government aid to change corporate behavior: The administration says the conditions it has attached to $40 billion in new subsidies will help US semiconductor makers compete globally. Some economists disagree. NYT
Lobbyists to Biden: Unless you want to cede to China, relax microchip rules: Microchip industry lobbyists are urging Washington to exclude new projects from the federal environmental reviews attached to huge federal subsidies. Politico
Biden to tap Julie Su as next Labor secretary: Politico reports the current deputy Labor secretary will be nominated to replace Marty Walsh, according to two people familiar with the matter.
PACs poised to supercharge California Senate campaign: Politico reports the wide-open field of Democrats could unleash millions in outside spending.
Vice Media names co-chief executives to replace Nancy Dubuc: The leadership change comes as Vice Media’s investors seek a buyer for the company. NYT
Axel Springer to cut jobs, warns AI could replace journalism: The German media giant Axel Springer is cutting jobs at its brands Bild and Welt, while warning that journalists are at risk of being made obsolete by artificial intelligence. DW
Is the globalization of content a good thing? Lon Harris
Barnes & Noble is stealing the indie shop playbook, and it’s working: James Daunt launched his first indie bookshop in London 33 years ago. The Barnes & Noble CEO is now bringing the lessons he learned to the biggest bookseller in America. FC
+ This year, Barnes & Noble will open 30 new locations on top of the company’s existing 600.
+ Daunt has applied the lessons he’s learned over three decades as an indie bookseller to these corporate bookstore giants.
+ He empowers booksellers at each location to curate books based on their own quirky, idiosyncratic tastes.
+ It’s a strategy that leads to more engaged workers and more interesting stores, Daunt says.
+ And importantly, it’s one that Amazon has been unable to replicate, given how poorly its brick-and-mortar stores have performed.
+ Daunt also believed that independent bookstores offered a fundamentally different experience than their larger counterparts because they reflected the unique personality of their booksellers as well as the particular tastes of a community.
+ “The general principle is whatever you choose to do, do it well. If you haven’t got the space to do it well, don’t do it at all.”
+ Since Daunt joined Barnes & Noble as CEO, he’s been on a mission to change the company’s model towards more curation.
+ “Forget about trying to have every book. Instead, focus on particular subjects and curate the very best.”
+ Amazon relies on algorithms, rather than tastemakers, to sell books.
+ "Yes, Amazon does steal sales, but it also expands the overall market. For us, it means that we don’t have to sell boring books anymore, like technical manuals on how to wire electrical systems in your house. If you need to get that book from Amazon, that’s fine by me.”
Close ally of FTX founder Sam Bankman-Fried pleads guilty to fraud: WSJ reports Nishad Singh is the third person in the founder’s inner circle agreeing to cooperate with federal prosecutors.
Economist: Investors are going nuts for ChatGPT-ish artificial intelligence
Reuters: Tesla plant gets green light in northern Mexico
Reuters: Tesla plant investment in Mexico worth more than $5 bln, official says
Strategic planning should be a strategic exercise Graham Kenny
+ Strategy is about creating a system whereby a company’s stakeholders interact to create a sustainable advantage for the company.
+ Strategic planning is how the company designs that system, which is very different from an operational action plan in that it is never a static to-do list but constantly evolves as strategy makers acquire more insights into how their system of stakeholders can create value.
How Chinese companies are reinventing management: They prioritize autonomy at scale, internal digital platforms, and a clear project focus. HBR
+ China’s companies have long been acclaimed for their manufacturing prowess and, more recently, for their pragmatic approach to innovation. Now it’s time to recognize how they are reinventing the role of management through an approach the authors call “digitally enhanced directed autonomy,” or DEDA.
+ This article describes the three core features of the DEDA approach: granting employees autonomy at scale, supporting them with digital platforms, and setting clear, bounded business objectives. It offers examples of how companies are using those features and draws lessons for Western companies.
It’s time to rethink the idea of the “indigenous”: Many groups who identify as Indigenous don’t claim to be first peoples; many who did come first don’t claim to be Indigenous. Can the concept escape its colonial past? Manvir Singh
Cate Blanchett’s #TárNation is Hollywood’s hottest new cult: Lydia Tár may not be real, but Cate Blanchett is—and the award-winning actor’s fans have become shockingly intense with their love since the release of her latest Oscar contender. Daily Beast
+ “Tárt” is one of many terms that have been coined by the internet (Tárt, Tárfluencer, Tárnation) since the film’s release last fall, encompassing the uniquely dedicated fanbase following both the character (and the actor) like sheep to a shepherd
+ There are T-shirts in honor of the character. Friendships are put to the test when someone claims that the film didn’t work for them. And on top of it all, Lydia has become her own self-aware entity.
+ “When I first heard about Tár, I went to google to check who Lydia Tár was, and I was shocked to learn she did not exist.”
THR: Damian Lewis returning to Showtime’s ‘Billions’ for season 7
Mitchell Rales, a co-founder of Danaher, gave $1.9 billion to his Glenstone Foundation, one of the largest-ever gifts to the arts.
NCAA issues first NIL ruling, with Cavinder twins at the center of it: While the actual punishment might not seem severe, the organization sends a message that it will be clamping down on NIL violations and brazen boosters. SI
Son Heung-min: The rise of Asia’s biggest football star Nikkei
+ "I'm not sure if we will see another Asian player like him in the coming 100 years," said Shin Moon-sun, a football commentator and sports data professor at South Korea's Myongji University. He said Son's skills at controlling the ball while sprinting have helped him to stand out in the Premier League, as has his ability to shoot from the right and left.
The baseball clock is good Will Leitch
+ Baseball isn’t the way it was when you were a kid because nothing is the way it was when you were a kid. Allowing it to break free from those constraints — to stop being a morality play or a paean to a supposedly more innocent time, to let it simply be a sport — is perhaps the best way to save it. We all grew up. Maybe it’s time to let baseball do the same.
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Founder + Chief Communications Strategist @ Caracal
Caracal produces ITK Daily.
Geopolitics is disrupting every business and industry.
Caracal is here to help.
Caracal is a geopolitical business communications firm specializing in global business issues at the intersection of globalization, disruption, and politics.
Caracal believes that to be a world-class geopolitical business communicator, you need global street smarts coupled with holistic, high-frequency, and high-low communications.