Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
Elon Musk, CEO of SpaceX, Tesla, and owner of X, looks on during the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, on May 6, 2024.
Hard Numbers: Tesla’s Grok infusion, New Jersey wants AI jobs, Visa’s fraud-busting, In-Cohere-nt strategy
5 billion: Elon Musk wants the Tesla board of directors to invest $5 billion in xAI, his artificial intelligence startup that built the Grok chatbot. Tesla’s self-driving ambitions depend on artificial intelligence, but this move also represents Musk’s ambition to further intermingle his many businesses. Grok lives entirely within X, formerly Twitter, and is available to paying subscribers.
500 million: The Garden State is making a half-billion dollar bet to become a hub for AI. New Jersey Gov. Phil Murphy signed a law on June 25 that allocates $500 million in tax credits for artificial intelligence companies and data centers willing to come to the state. It’s part of Murphy’s ongoing “AI Moonshot” to bring more AI jobs to the state.
40 billion: Visa says that artificial intelligence and machine learning helped it double its fraud detection in a year. Between October 2022 and September 2023, the payments company prevented $40 billion in fraud, double what they prevented the year prior. While AI can certainly help fraudsters trick people into handing over their credit card details or other sensitive information, it can also help financial services companies monitor and prevent irregular activity.
500 million: The AI startup Cohere, which makes enterprise AI tools, raised $500 million last week based on a $5.5 billion valuation. But the next day, it laid off 20 employees — about 5% of the company. The company called the decision “necessary” to ensure it remains “highly competitive and at the forefront of the industry.”
Members of parliament hold placards after the result of the vote on the first motion of no-confidence against the French government at the National Assembly in Paris, France, March 20, 2023.
What We’re Watching: Slim win for Macron, protests in South Africa, Trump’s legal woes, Colombia peace collapsing?
Macron’s narrow escape
It came down to the wire, but Emmanuel Macron’s government narrowly survived a no-confidence vote in France’s National Assembly on Monday, with 278 voting to topple the government, nine votes shy of the threshold needed to pass.
Quick recap: The motion was triggered after Macron used a constitutional provision last week -- bypassing a vote in the lower house -- to pass a controversial pension reform despite weeks of protests (more on that here).
Not only do 70% of French adults abhor Macron’s plan to raise the retirement age to 64 from 62 by 2030 – which he says is necessary to plug the growing debt hole – but the French electorate, which has long had a libertarian streak, is also furious that the government used what it says is an anti-democratic loophole to pass the measure.
Macron’s troubles are only just beginning. Hundreds were arrested in Paris over the weekend and on Monday as anti-government protests turned violent and smelly. Unions have called for nationwide demonstrations and strikes in a bid to pressure the government to roll back the measures (which will never happen).
Prime Minister Élizabeth Borne will likely take the fall and resign. Still, Macron, already unpopular before this debacle, will emerge a diminished political figure. After previously saying he understood that people were “tired of reforms which come from above,” it will be very hard for the ideological chameleon to regain the trust of vast swathes of the population.
South Africa’s day of demonstrations
Amid rolling blackouts and a slumping economy, the Marxist-linked Economic Freedom Fighters Party called for a national day of protests Monday, putting law enforcement on high alert.
The EFF, the country’s third-largest party led by longtime leader Julius Malema, is largely backed by poor Black South Africans, many of whom live in townships, as well as younger voters who feel they haven't benefited from the ruling African National Congress Party’s tenure in the post-apartheid era. Indeed, around one-third of South Africans are out of work and the economy is slated to grow by just 0.3% in 2023, down from 2.5% in 2022.
President Cyril Ramaphosa mobilized more than 3,000 troops nationwide in anticipation of mass protests. But turnout was lower than expected, prompting Malema to claim that the government was blocking buses transporting protesters.
The EFF “will still claim the wall-to-wall media coverage around the protests as a victory,” says Ziyanda Sturrman, a South Africa expert at Eurasia Group.
None of this is good news for Ramaphosa, who, after a series of political scandals, looks set to lose his parliamentary majority in next year’s general election. Still, Stuurman notes that if the ANC falls just below the 50% threshold, several small parties have already put their hands up to join an ANC-led coalition.
Trump vs. prosecutors
Former US President Donald Trump faces possible legal challenges on multiple fronts. The state of New York could charge him with fraud for alleged hush money payments to a porn star. The Justice Department could charge him with many suspected crimes related to efforts to overthrow the result of the 2020 election as well as the misuse of hundreds of classified documents recovered by the FBI from his Florida home. Prosecutors in Georgia could charge him with election fraud as part of his alleged effort to overturn that state’s 2020 election result.
If Trump is indicted, he’ll likely present himself for charges, while also calling for protests. He would then be released on bond pending trial, and it’s unlikely that any trial in any of these potential cases would take place in 2023.
Trump would continue his campaign for the Republican presidential nomination. There’s nothing in the US Constitution to prevent him from being elected president. His fate would remain with voters. If elected, his presidency would begin in court. In theory, a president could pardon himself for federal crimes. That would have to be tested. But no president can pardon state-level crimes, like those he might be charged with in New York and Georgia. In short, prosecutors and Trump may be about to steer American politics into uncharted waters.
Colombia: Is Petro’s “total peace” going to pieces?
Colombia’s President Gustavo Petro took office last year pledging to reach a negotiated “total peace” with the country’s various armed and criminal groups. But on Monday that strategy took a big hit when he was forced to suspend a three-month-old ceasefire with the fearsome Clan del Golfo (Gulf Clan), the Andean region’s most powerful narco-trafficking outfit. The Clan had allegedly attacked an aqueduct and opened fire on police officers.
The move puts Petro in a tough spot — ramping up military action risks escalating a conflict he was elected in part to end peacefully. But allowing cartels to run riot isn’t an option either.
The setback comes amid a broader season of discontent for Petro: a corruption investigation of his son, the departure of several key coalition ministers, and an approval rating that is net-negative barely six months since he took office.
Petro, a former guerilla who is the country’s first left-wing president, has made an effort to build bridges across the political spectrum so far. But his critics worry that if the going gets tougher, he might resort to a more populist style that could be explosive in a country as polarized as Colombia.
Electoral campaign posters are seen ahead of Nigeria's Presidential elections, in Yola, Nigeria, February 23, 2023.
What We're Watching: Nigerians vote, Biden's World Bank pick
Nigeria's presidential election head-scratcher
Nigerians go to the polls Saturday to vote in what is being billed as the most open presidential election in Africa's most populous country since democracy was restored in 1999. That's mostly thanks to buzz about Peter Obi, a third-party candidate who's leading most polls ahead of both Bola Ahmed Tinubu, the ruling party's pick, and opposition candidate Atiku Abubakar. With almost half the electorate undecided, Obi faces tough odds. First, to win outright, he must get the most votes nationwide and at least 25% in at least two-thirds of Nigeria's 36 states – but he doesn’t have strong party machinery to turn out voters. Second, if no candidate meets both conditions, the election goes to a runoff between the most-voted for candidate and — here's where it gets complicated — the one who placed second in the highest number of states. Also, keep an eye out for the rollout of machines to verify biometric voter ID to curb fraud. If the devices malfunction or are not widely deployed, expect many Nigerians to consider the election anything but free and fair.
Interested in the Nigerian election? Listen to Amaka Anku, head of Eurasia Group’s Africa practice, on this GZERO podcast in collaboration with The Center for Global Development podcast.
Biden picks ex-credit card exec to lead World Bank
President Joe Biden will nominate former Mastercard CEO Ajay Banga to replace the outgoing David Malpass as president of the World Bank. (The institution is traditionally led by a US citizen picked by the White House, while a European heads the International Monetary Fund, its sister org.) The selection of Banga is somewhat puzzling since he lacks a specific or public-sector background in climate change. The Biden administration wants the World Bank to focus on the issue, and Banga’s nomination comes just months after Malpass got in a political firestorm over his views on climate science. (He later denied being a climate denier on GZERO World.) Still, Banga has experience managing a multinational corporation and prioritized the climate at Mastercard. Perhaps Biden thinks he can run the World Bank more like, well, a bank, to mobilize private-sector climate finance — cash to help mainly developing nations do things like transition to more green energy.
Hong Kong pro-democracy media tycoon Jimmy Lai charged with fraud
HONG KONG (AFP) - Hong Kong media tycoon Jimmy Lai appeared in court on Thursday (Dec 3) charged with fraud, the latest in a string of prosecutions brought against high profile Beijing critics and democracy campaigners.
Indian doctor bought $128k 'Aladdin's lamp' after genie ruse
NEW DELHI • Two men who allegedly duped a doctor into buying an "Aladdin's lamp" for 7 million rupees (S$128,000) - and even conjured up a fake genie - have been arrested in India, an official said yesterday.
Indian doctor duped into buying 'Aladdin's lamp' after genie show
Laeek Khan paid 7 million rupees (S$128,000) for the so-called "Aladdin's lamp".
Najib seeks to strike out 1MDB audit charges after amendment
KUALA LUMPUR (BLOOMBERG) - Malaysian former leader Najib Razak applied to strike out accusations of tampering with an audit report on troubled state fund 1MDB after prosecutors amended the charges.
Wirecard's missing US$2.1 billion didn't enter Philippine financial system, central bank says
MANILA (REUTERS) - None of the US$2.1 billion (S$2.93 billion) missing from scandal-hit German payments firm Wirecard appears to have entered the Philippine financial system, the central bank said on Sunday (June 21).