September 18, 2023

empowering you with insights and information from the edge of today’s headlines

Business

Trade Corridor: Last week’s G-20 was historic for many reasons, and unfortunately, in the US most of the play seemed to focus on the fact that both Russia’s Putin and China’s Xi were absent from the summit. One major announcement came as a counter to China’s belt and road initiative: the Partnership for Global Infrastructure and Investment. The new trade corridor could speed up trade between India and Europe by 40%, and help to normalize relations between the Gulf states and Israel. The project is expected to include rail, shipping lines and an energy infrastructure, although funding (estimated at $600BN) and production plans have yet to be determined. European commission president Ursual von der Leyen described the initiative as a “green and digital bridge across continents and civilizations.” One other notable change to the G20 was the admission of the African Union as a permanent member, giving it the same status as the EU.

Tourists go Narcos: The “murder capital” of the world is being besieged by tourists, and the locals are none too pleased. Medellín, Colombia became a popular destination for remote workers during the pandemic because of its affordability (for foreigners), its history (from Pablo Escobar and the Netflix series Narcos), its public infrastructure,  and the city itself (culture, environment and temperate climate). Unfortunately, like most destinations for remote workers, when tourists or highly paid foreigners move in en masse, the locals get priced out. In one popular neighborhood, rents jumped 80% in the first four months of 2023. Now you can see signs that read “No Gringos” and “No Digital Nomads.” Soon we may see that the city learns a lesson from NYC and effectively bans Airbnb and short term rentals, but for now practice your Spanish and book your plane ticket quickly.

What Stays in Vegas: Vegas has been on a digital lockdown of sorts after a ransomware attack took down the MGM Casino chain. (Caesars Entertainment was also reportedly part of a recent cyberattack, but they paid the $15M ransom so the casino remained up and running.) Guests of MGM were locked out of their rooms (digital key cards and check-in), couldn’t play slots and couldn’t cash in their winnings. The hack is costing the company roughly $8M per day. The hackers claim to have been able to gain entry to the system through a 10-minute phone call with an employee, and have stolen over 6TB of data. Ransomware-as-a-service comes for the service capital of the US, or maybe it’s the ransom capital of the US?

Cash Bail: Illinois will become the first state in the US to abolish cash bail on Monday, as the Pretrial Fairness Act comes into effect. The law allows prosecutors and judges to determine whether an offender requires pretrial detention due to public safety and not their pocket book. Critics of the new law are concerned about an increase in crime (if offenders are released) and a lack of funding for police departments charged with finding “offenders on the run.” While studies have shown that when cash bail is removed, it has a negligible impact on crime. Unfortunately, cash bail is big business in the US: Reuters reported in 2021 that the for-profit bail industry brought insurers $15 billion in revenue a year. In 2020, NY enacted bail reform eliminating cash bail for misdemeanors and non-violent felonies; however, due to public and political backlash, the law has been rollbacked three times, changing the list of qualified offenses and expanding pre-arraignment detention. So much for the unnecessary use of incarceration.

Technology

AI and Climate Change: One of the biggest concerns surrounding cryptocurrencies was its excessive use of computing power, and thus its overall harm to the environment. As a result, a new form of validation was created that greatly reduced its electricity usage. Unfortunately, with the advent of AI we have a new environmental concern: global water consumption. AI uses a tremendous amount of computing power and needs water to keep the data centers cool. For instance, “Microsoft disclosed that its global water consumption spiked 34% from 2021 to 2022 (to nearly 1.7 billion gallons, or more than 2,500 Olympic-sized swimming pools)” tied to its AI research. Google reported a 20% growth in water use in the same period. A research team at the University of California estimates that ChatGPT eats up a 16 oz water bottle of water every time we ask a series of 5-50 prompts. Microsoft built its supercomputers for OpenAI in Iowa, so it doesn’t need as much water when the outside temperature is cold, but the water usage is still much higher than residents were used to.

AI Use Case: The IRS got a long awaited funding boost with the Inflation Reduction Act, and it is putting it to good use with AI. The agency will be using the technology to investigate tax evasion by large hedge funds, private equity groups, real estate investors and complex partnerships with assets over $10BN. Since these partnerships often have the most complex filings and loopholes, the artificial intelligence will be needed as the agency is short staffed and under the chopping block from legislators. The hope is that since the funding is being used to tackle the most wealthy and complex, that the politicians will back off, although we suspect that this will only make the lobbyists more aggressive.

Charging Economy: If you have an electric car, you often have to find an errand to run around your charging while you wait the 30 minutes to several hours that it takes to “refill” your car. Now Tesla wants to make that waiting experience a little more experiential with a dining and drive-in movie theater concept at a supercharging station in West Hollywood. The retro-inspired structure is meant to be reminiscent of “Grease meets the Jetsons” and the movies will be 30 minutes long, to be timed to the supercharging of Teslas. While Elon Musk promised that the station would be open later this year, he often has a strange concept around time, and time will tell if the Teslarati prefer charging while shopping at Whole Foods or a mini-movie.

Culture

What a Match-Up: In the NFL’s ever ending quest to attract younger viewers, ESPN is taking true advantage of its Disney ownership. The October 1 game between the Jacksonville Jaguars and the Atlanta Falcons will be simulcast as Toy Story Funday Football on Disney+. While the game will be played in real time in London, the adapted animated version will come to life in Andy’s room, complete with the familiar faces of Woody and Buzz Lightyear “participating from the sidelines.” The alternate telecast even has its own version of an animated half-time show with Duke Caboom and his motorcycle. Because the players wear so much embedded technology, Pixar is able to instantaneously transform the action, although we wonder how they will deal with the inevitable injury or on-air cardiac arrest.

Strike in Solidarity: With the WGA and SAG strikes continuing, some of the more famous (and bored) celebrities have been auctioning off their services in an effort to support their peers. The Union Solidarity Coalition has some really amusing choices if you have the time, money and inclination: Natasha Lyonne will help you solve the NYT Crossword Puzzle, Take a Pottery Class with Busy Phillips, or a Get a Dog Watercolor Portrait by John Lithgow. The creative auctions have gotten so extreme that, of course, the internet decided to make up a few celebrity experiences of their own: including Dakota Johnson locking you in a Coffee Shop.

Driving While Black: The Detroit Auto Show kicked off last week ahead of the UAW strike, and the Courageous Conversation Global Foundation released a short film describing the prototype car that makes it “fully equipped to survive being racially profiled.” The car, named, Driving While Black, has, among other features, “transparent doors ‘to eliminate reasonable suspicion,’ a steering wheel ‘that keeps hands visible at all times’ and no trunk or glovebox, to remove the need for searches.” The goal of the project is to challenge the viewer to see the racism around them, and to make “routine traffic stops routine” for people of color.

Writing on the Wall:  Johnson & Johnson is getting rid of its iconic logo, and moving toward a Gen Z-ified sans serif, simple wordmark. The script logo of J&J had been in use since 1887, but unfortunately, many American children don’t learn script in school, so they can’t read it??

Echoes of Eternity: You may have been stuck in the TikTok rabbit hole this week about the Roman Empire, and if not, here is the gist: apparently, the straight, male mind thinks of the the Roman Empire often, “like, all the time.” Men were shocked to learn that women didn’t have a special mindspace for the era, but the gladiator (and Roman from Succession) memes continued in earnest. Personally, we’ll reserve thinking of Rome when we’re planning our European vacation or while watching Russel Crowe.

Calling all Baristas: Are you a barista in the mood for a European vacation? Get ready to apply for the first of its kind residency at the world’s first coffee hotel: Rotterdam’s Man Met Bril Koffie (or Man with Coffee Glasses). The hotel will be offering a salary and a place to stay, as long as you pull a few shifts while you learn the art of coffee from your fellow baristas from around the world.

Trucker Vibes: We are a little late to this collaboration, but it made us smile nonetheless: Madewell Men x Ford. The collection is inspired by the rugged look of the 1970s Ford Bronco and leans heavily into Madewell’s denim collection. The seven piece collection is made to feel like an off-road trip with the top down in Baja California.

Italian Blooms: Prada’s new Fall/Winter campaign is called “In Conversation with a Flower” and to kick of the new collection, the Italian brand will be handing out exclusive Prada-branded seed packs at selected flower kiosks. (We assume that means flower shops?) We certainly have no green thumb, but we would covet the flower pot and resulting bloom if someone would care to nurture it for us.

— Lauren Eve Cantor

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