Inside Daily Brief

For August 05, 2023

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Today's issue features Saudi Arabia hosting Ukraine peace talks, leading battery minerals M&A deals, the Chinese embassy criticizing Moscow, and more.

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Saudi Arabia has initiated a summit in Jeddah involving around 40 countries to discuss principles for ending the war in Ukraine, notably excluding Russia. Ukrainian President Volodymyr Zelenskyy has expressed optimism about the diverse representation at the talks, emphasizing the global impact of the conflict on food security.

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The summit includes nations affected by the surge in food prices due to the war.
- Russia previously suspended its participation in a U.N.-brokered grain deal, affecting global food security.
Zelenskyy hopes the summit will lead to a "peace summit" in the autumn to endorse principles based on Kyiv's 10-point peace formula.
- Ukraine's peace formula includes respect for its territorial integrity and withdrawing Russian troops from annexed territories.
The summit allows Ukraine to engage with neutral countries, including India, Brazil, and China.
China, a close ally of Russia but a neutral party in the conflict, is participating in the talks, raising hopes for endorsement of Zelenskyy's peace plan.
Saudi Arabia, the world's largest crude oil exporter with ties to Russia and Ukraine, positions itself as a potential mediator in the conflict.

Zoom Out:

Last week, Putin finalized meetings in St. Petersburg with African leaders about their own proposed plan. In March, Beijing facilitated restoring relations between Saudi Arabia and its main regional rival, Iran.

What the numbers say: Between 2022 and June 2023, the most notable M&A transaction in the battery minerals sector was China's Ganfeng Lithium Group's purchase of Lithea, announced in July 2022 with a deal value of ~$962M. Intriguingly, just two months after this acquisition, Ganfeng Lithium became a target for acquisition by an unidentified buyer for $189B.

Relevance: The cost of lithium has increased almost tenfold since 2020. Amid rising tensions following Russia's invasion of Ukraine and growing strains between the West and China, there's heightened anxiety regarding access to essential minerals. China has established a commanding presence in many vital minerals essential for the energy shift, such as cobalt, lithium, and rare earth metals.

Impact: Earlier this year, the Kingdom of Morocco's government announced that Chinese battery maker Gotion High-Tech Co. had an initial agreement to establish Africa's first EV battery plant with a yearly capacity of 100 gigawatts, necessitating a ~$6.5B investment. Once completed, the Gotion plant in Morocco could rival a third of the capacity of the leading battery producer, Contemporary Amperex Technology Co Ltd, and outpace the entire U.S.'s current capacity.

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Five Chinese citizens were denied entry into Russia, leading to the Chinese embassy in Moscow criticizing Russia's "brutal and excessive law enforcement." The incident, which involved the cancellation of tourist visas and a four-hour interrogation, has been described as damaging to the rights and interests of Chinese citizens.

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The incident occurred on July 29, with the Chinese citizens being "repeatedly" questioned for up to 4 hours.
The embassy stated that the event is inconsistent with the friendly Sino-Russian relations and the trend of increasingly close exchanges between the two countries.
The Russian side has been asked to investigate the incident, take active measures to eliminate its negative impact, and ensure such incidents do not reoccur.
Just two days before Russia invaded Ukraine on Feb. 24, 2022, Beijing committed to a "no-limits partnership" with Moscow.
Despite the incident, China remains one of the Kremlin's top allies and has not condemned the invasion.

Zoom Out:

In 2019, Chinese leader Xi Jinping described Putin as his "best friend."

NASA has successfully reestablished contact with Voyager 2, lost in space due to a misdirected antenna, using a high-powered "interstellar shout." The command was transmitted across 12.3 billion miles, restoring communication after two weeks of silence.

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Voyager 2, launched nearly 46 years ago, lost contact in July when a command accidentally shifted its antenna 2 degrees off Earth.
NASA's Deep Space Network detected a faint "heartbeat" signal from the spacecraft, confirming its operation.
NASA's large dish in Canberra, Australia, sent the command to reorient the spacecraft.
The round-trip communication took approximately 18.5 hours each way.
Voyager 2 has resumed returning science and telemetry data and remains on its expected trajectory.

Zoom Out:

Voyager 1, launched shortly after its counterpart Voyager 2, was the pioneer in crossing the boundary of our solar system.

Niger's new military junta has reportedly sought assistance from Wagner, the Russian mercenary group, as a deadline from the West African economic bloc ECOWAS approaches for releasing the country's ousted president. The junta faces potential military intervention if it fails to comply.

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The request for Wagner's help was made during a visit by coup leader Gen. Salifou Mody to Mali.
ECOWAS has set a Sunday deadline for the release and reinstatement of democratically elected President Mohamed Bazoum.
- Defense chiefs from ECOWAS members finalized an intervention plan on Friday.
Niger, seen as the West's last reliable counterterrorism partner in the region, has been turning toward Russia as coups become more common.
Wagner operates in several African countries, including Mali, where it has been accused of human rights abuses.
France's foreign affairs ministry has described Wagner as a "recipe for chaos."

Zoom Out:

Wagner's founder, Yevgeny V. Prigozhin, has praised the coup in Niger and offered Wagner's services to the new leaders.

Over 1 million people have been displaced in China's Hebei province due to severe flooding caused by remnants of Typhoon Doksuri. This storm has resulted in Beijing's heaviest rainfall in 140 years, marking a significant test for the region's capacity to handle extreme weather.

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The flooding has affected over 2.2 million people across 883 towns and townships in 98 county-level regions of Hebei.
- More than 960,000 are displaced from flood storage and detention basin areas.
Authorities have released over 1 billion cubic meters of floodwater into flood control zones, which include residential areas, farmland, lakes, and wetlands.
Hebei has mobilized materials worth 150M yuan (~ $21M) to assist with rescue and relief efforts.
Over 300 professional emergency rescue teams and 6,913 people have participated in the rescue work in Zhuozhou, one of the worst-affected areas in Hebei.
The cost of properties damaged due to the release of water in flood control areas will be compensated at 70% under national rules.

QUICK HITS

The AWS Cookbook — packed with practical insights and hands-on examples — is a must-have for your cloud toolkit.*
Prosecutors of the Jan. 6 case requested a protective order, citing former President Trump's consistent pattern of targeting those involved in his legal proceedings.
Japan's relentless attacking strategy in the Women's World Cup has led them to the quarterfinals against either Sweden or the U.S., following a decisive 3-1 victory over Norway.
Former Pakistani PM Imran Khan was sentenced to three years in prison for illegally selling state gifts and hiding assets, likely ending his political future.
Mitchel Weiser and Bonnie Bickwit, two teenagers who hitchhiked to the historic 1973 Summer Jam at Watkins Glen, disappeared and remain missing 50 years later, leaving their families and friends in continued search of answers.
Following a lethal storm in China's Hebei province, officials caution that water levels may take months to subside in certain regions.
After five schools in the Pac-12 Conference announced their departures to the Big Ten or Big 12, on top of three previous defections, options seem limited for the four schools left: Stanford, Cal, Oregon State, and Washington State.
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