ITK Daily | December 13

Happy Tuesday.

Here’s today’s ITK Daily.

To be ITK, know this:

Japan to buy Tomahawk missiles in defense buildup amid fears of war WP

+ The missile buy would boost Japan’s long-range strike capability and mark a stunning break with a long tradition of eschewing offensive weapons.

+ Japan will move forward on the Tomahawk decision as a part of the rollout of its new national security and defense strategies this month, along with a major hike in Japan’s defense budget.

+ “Japan wanted to limit its defense spending and try not to acquire second-strike capability. But the situation surrounding us does not permit us to do that,” said Ichiro Fujisaki, former Japanese ambassador to the US.

Japan to upgrade cyber defense, allowing preemptive measures: A revised National Security Strategy to open doors for a proactive response. Nikkei

+ The move is expected to be a turning point for Japan's cyber defense, which is limited due to the interpretation of the country's constitution and laws relating to the use of force, as well as privacy concerns.

+ The National Security Strategy is being revised for the first time since it was established in December 2013 to respond to a changing geopolitical landscape, most notably a more assertive China and rising tensions surrounding a possible Taiwan crisis.

Japan ruling parties call China 'challenge' in defense strategy: Nikkei reports upgraded documents to seek 'counterstrike capability' in a shift in postwar approach.

JT: Kishida's plan to fund higher defense spending faces backlash

+ Amid escalating geopolitical tensions, the government now faces the question of how to fund the extra outlay

Kyodo: Symbol meaning "war" picked as kanji of 2022 amid international conflicts

+ The kanji for "sen," meaning war or battle, was picked as the single most representative Chinese character corresponding to the social mood in Japan this year, a Kyoto-based organization said Monday.

Bloomberg: Japan to join US effort to tighten chip exports to China

+ Japan, the Netherlands sought to act in concert on new rules

+ Curbs will affect chipmaking gear firms ASML, Tokyo Electron

G7 in Japan: The next G7 Summit will take place in Hiroshima on May 19-21, 2023.

Taiwan bans TikTok from public sector devices.

+ TikTok listed as a 'harmful product against national information security'

AUS + PNG: Australian Prime Minister Anthony Albanese will travel to Papua New Guinea in the new year to strengthen defense and security ties.

Indian and Chinese forces clash on border, Indian army says: WSJ reports the border skirmish is the first since a deadly confrontation in 2020 that has chilled ties between the rivals.

Can India build a military strong enough to deter China? Violent clashes in Ladakh in 2020 were a wake-up call for New Delhi. But some say India is still not doing or spending enough as tensions rise. FT

Gearing up for a third term, meet Modi 3.0 GZero

China maps out plans to put astronauts on the Moon and on Mars: Chinese officials at a desert rocket base described plans for their new space station and for reusable rockets, as well as travel beyond near-Earth orbit. NYT

Bloomberg: Saudi Arabia says $50 billion investments agreed with China

What Xi Jinping’s Saudi Arabia visit means for the Middle East Atlantic Council

Qatar scandal: What just happened at the European Parliament? Politico

+ European Parliament vice president Eva Kaili and three others were charged with corruption over a Qatari influence campaign. Prosecutors said ‘bags of cash’ were found in Kailli’s flat, and €600,000 was seized in total when six arrests were made in Brussels on Friday.

+ Three others, including former MEP Pier Antonio Panzeri, were also charged in the investigation into alleged illicit lobbying by the World Cup host.

+ The charges raise fresh questions about corruption and influence-peddling in EU institutions, putting current and former officials under scrutiny and likely leading to calls for an overhaul of institutional oversight.

What is the Qatar corruption scandal that has rocked the European Parliament? WP

+ The charges raise fresh questions about corruption and influence-peddling in EU institutions, putting current and former officials under scrutiny and likely leading to calls for an overhaul of institutional oversight.

European Parliament corruption scandal: The fall of Eva Kaili, Greek Socialist MEP: The vice president of the European Parliament had her assets frozen on Monday after she was arrested on corruption charges over her alleged involvement in a graft scandal linked to Qatar. Le Monde

Bloomberg: Putin skips annual news conference as his war in Ukraine falters

+ Putin drops December meeting for the first time in a decade

+ Putin also hasn’t held an annual call-in with Russians this year

Europe wants more people to take the train: In France, this means better slow trains, not just more TGVs. Economist

Reuters: France strains to avert power cuts as cold snap tests Europe's energy resolve

+ France typically generates more than 70% of its electricity from its fleet of 56 nuclear reactors - along with 15% of Europe's total power through exports.

Eric Ciotti, new leader of French conservatives, faces 'herculean' challenges: The newly-elected leader of the conservative Les Républicains will look for ways to bring his declining party back to the forefront. Le Monde

The Times: Scots back independence for fourth poll in row

+ According to the survey, 47 percent would vote in favor of Scottish independence in another referendum, an increase of four points from the survey in October. 

+ Support for the Union has fallen by three points to 42 percent.

James Cleverly launches UK ‘patient diplomacy’ as counter to Russia and China: FT reports the UK foreign secretary looks to build ties with fast-growing countries such as Brazil, Kenya, South Africa, and Indonesia. FT

World Cup: Lionel Messi mania diverts Argentina from its economic problems: FT reports the team’s success offers an ‘illusion of greatness’ to South American nation.

US-Africa Leaders Summit Brings 50 African Voices to Washington VOA

+ A spokesperson for the National Security Council told VOA that all 50 invited delegations – from 49 countries plus the African Union – "have confirmed their participation" but did not say at what level of government.

+ Five countries were not invited. Burkina Faso, Mali, Guinea, and Sudan were excluded because the African Union has suspended them over unconstitutional government changes, and the US has no diplomatic relations with the pariah state of Eritrea.

AFP: US commits $55 billion to Africa over the next three years

+ "Working closely with Congress, the US will commit $55 billion to Africa over the course of the next three years across a wide range of sectors to tackle the core challenges of our time." -- White House National Security Advisor Jake Sullivan

+ @RobbieGramer: Biden is expected to announce he will visit sub-Saharan Africa in the near future at the upcoming U.S.-Africa leaders summit, current and former officials confirm to me

Treasury Secretary Janet Yellen interview with 60 Minutes: The treasury secretary tells Norah O’Donnell how she thinks the economy will fare in the coming year and what her department is doing to end the war in Ukraine. YouTube

Karen Bass was sworn in as LA’s first female mayor on Sunday in a ceremony featuring appearances from Vice President Kamala Harris, Stevie Wonder, and the poet Amanda Gorman.

Trump who? GOP senators rave over a potential Tim Scott presidential run. The South Carolina senator isn't committing to a White House bid yet, but his colleagues think he'd have a shot in a possibly tough field. Politico

Bloomberg: DeSantis ignores Trump, touts Florida victory at donors event

Elon Musk is ruining Trump’s presidential campaign: Twitter ’s chief executive has stolen the ex-president’s media mojo by becoming the ubiquitous troll-in-chief who always owns the libs. Joshua Green

Americans are cutting back on holiday spending, a Harris poll shows. About 60% of respondents plan to buy fewer gifts as inflation hits.

US to announce nuclear-fusion energy breakthrough: Energy Department expected to reveal major advance in an effort to harness energy source that powers the Sun. WSJ

+ Researchers working with lasers at Lawrence Livermore National Laboratory are expected to say they made a major advance that could lead to future energy sources.

+ Net energy gain indicates technology could provide an abundant zero-carbon alternative to fossil fuels

Mercedes-Benz Vans will invest more than 1 billion euros ($1.05 billion) to build its first electric-only vans plant in Jawor, Poland.

Rivian  burned nearly $1.4 billion in cash during the third quarter.

Few things are more expensive than building a car company. Possibly a vineyard.

US finalizes $2.5 billion loan to General Motors , LG battery joint venture: Reuters reports the low-cost loan will help to pay for three new lithium-ion battery cell manufacturing facilities.

+ The loan will help finance the construction of new lithium-ion manufacturing facilities in Ohio, Tennessee, and Michigan, supporting 6,000 construction jobs and 5,100 operations jobs at the three plants.

Global Great Lakes - The future of the global economy is the Great Lakes.

Auto lobby slams Swiss plan to curb electric cars in power crunch: Reuters reports the Swiss car importers lobby hit back on Monday at the government's proposal to limit the use of electric vehicles in any power crunch, saying the mere suggestion could prompt consumers to opt for autos that burn fossil fuels.

Volkswagen Group  is considering whether to pull its Skoda brand out of China.

Microsoft is buying a 4% stake in the London Stock Exchange Group.

The Times: Microsoft buys stake worth £1.5bn in London Stock Exchange in 10-year cloud deal

Robots set their sights on a new job - sewing blue jeans Reuters

+ Finding a way to cut out handwork in China and Bangladesh would allow more clothing manufacturing to move back to Western consumer markets, including the United States.

SHEIN , the Singapore-based online fashion retailer, is looking to expand its business to allow other apparel merchants to sell their products on its platform.

Cows on boats: Rotterdam’s urban farm experiment: Two Dutch entrepreneurs say floating farms will help secure cities’ food supply. Politico

A giant drill near a Hamptons beach marks offshore wind’s arrival in the US: Construction to link Long Island with turbines 35 miles off its coast is a long-awaited milestone for the industry and clean energy. Green

These algorithms are hunting for an EV battery mother lode: AI trained on reams of geological data can indicate where to dig in search of metals crucial to electric cars and other green technology. Wired

+ As the world fitfully begins to shift from fossil fuels to greener alternatives, there’s an intensifying global scramble to find the vast quantities of cobalt, lithium, and other metals required to build all the electric car batteries, solar panels, and wind turbines we’re going to need. 

+ But finding new mineral deposits has always been difficult and expensive, and it’s only getting more so.

+ Miners generally say only 1 in 100 exploratory boreholes turns up anything. 

Investors withdraw record levels of coins from crypto exchanges: FT reports traders rush for exits alarmed at the safety of their assets after FTX filed for bankruptcy.

AM...

Sam Bankman-Fried says he will testify remotely at today's congressional hearing.

+ To skip testifying in person before Congress because he's 'quite overbooked'

PM...

+ @elwasson: BREAKING: Sam Bankman-Fried arrested in the Bahamas @TheTerminal

Decentralization comes at you fast.

SCMP: Chinese police arrest 63 people for laundering US$1.7 billion via cryptocurrency

+ The gang collected illicit funds from online pyramid schemes, fraud, and gambling and converted the proceeds into Tether, a stablecoin pegged to the US dollar

+ Despite Beijing’s ban on trading and mining of cryptocurrencies, China recorded more than US$220 billion in total crypto transactions between June 2021 and July 2022

Now that FTX is toast, is Binance too big to fail? Kevin T. Dugan

Bitcoin price on Dec 11th, 2017 = $17,150

Bitcoin price on Dec 11th, 2022 = $17,150

The therapeutic potential of psychedelics: The development of psychedelics as medicines faces several challenges. Science

A one-of-a-kind Grand Seiko sold for $478,800 at the Phillips New York auction, the highest price ever paid at auction for a watch from the Japanese brand.

The woman who made online dating into a "science": Almost 20 years ago, Helen Fisher helped revolutionize dating. She has no regrets. Kaitlyn Tiffany

Football won’t save France or Britain from decline Gavin Mortimer

Chinese brands spend $1.4bn on World Cup ads, sponsorships: Nikkei reports Wanda, Hisense Group pitch the globe as China tops spending for the soccer tourney.

Ken Niumatalolo deserved better than what he got from Navy John Feinstein

Enjoy the ride + plan accordingly.

-Marc 

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