North Korea hosts Vladimir Putin, Pope Francis warns about AI dangers and Taylor Swift's economic lift
June 2024
Hello and welcome!👋
We’re officially halfway through 2024. The calendar for the ‘Year of Elections’ was already jam-packed but then June threw a couple of spanners in the works. See: surprise parliamentary vote in France, an attempted coup in Bolivia, political wrangling by Narendra Modi, and an eyebrow raising US presidential debate.
This edition looks at the consequences of Putin’s renewed bromance with Kim Jong Un, why the Pope is alarmed by AI developments, and how Taylor Swift is emerging as an economic force.
As always, your likes, comments and feedback are appreciated.
NORTH KOREA’S PROVOCATIONS
Vladimir Putin received the red carpet treatment (and a hug!) from Kim Jong Un when he landed in Pyongyang on 19 June. The two-day trip was the Russian president’s first visit to North Korea in 24 years.
While images of the pair smiling and hanging out went viral, Putin and Kim strengthened their ties with a defence pact. The agreement provides “for mutual assistance in the event of aggression against one of the parties,” said Putin. Furthermore, the Kremlin reserves “the right to supply weapons to other regions of the world.”
The idea of Moscow arming the hermit kingdom is worrying for many governments - notably South Korea, Japan and the US. Despite decades of sanctions and limited resources, North Korea has managed to build a formidable nuclear arsenal, as this mini-documentary by Bloomberg explains.
Separately, Kim has been taunting his southern neighbours with balloons - some filled with rubbish. The move is believed to be in retaliation to South Korean activists flying over anti-North Korea propaganda leaflets. On 26 June, these balloons disrupted operations at Incheon international airport for about three hours.
THE VATICAN’S VIEWS ON AI
The Pope knows that generative AI can turn you into a funny meme. Remember the seemingly real photo of Francis sporting a puffy Balenciaga jacket?
But that sort of digital manipulation is relatively harmless compared to what artificial intelligence can do. In fact, the Vatican has strong opinions on the current iteration of AI tools, which is why the Pope went to Puglia, Italy, to address the G7 summit.
The gathering of world leaders is not a forum where any pontiff has spoken before, however, Francis wanted to draw attention to the Catholic Church’s concerns about the technology’s rapid development.
The Pope told politicians to maintain guardrails on AI and to focus on ethics. “We would condemn humanity to a future without hope if we took away people’s ability to make decisions about themselves and their lives, by dooming them to depend on the choices of machines,” he said.
Francis linked AI to the military domain as well, calling for responsible frameworks and a ban on “lethal autonomous weapons”.
SWIFTONOMICS
Taylor Swift has brought her record-breaking “Eras Tour” to Europe to much acclaim. Besides wowing tens of thousands of fans in cities like Madrid, Stockholm, Paris and Edinburgh, the pop superstar is also boosting local economies and creating a multiplier effect.
Business analysts took note of Taylor’s monetary powers when she traversed the US last year. She even caught the attention of Philadelphia’s Federal Reserve, which commented on the “influx of guests” for her tour. Now, “Swiftonomics” is being felt across the Atlantic.
Taylor’s concerts attract scores of people, including hundreds of out-of-towners. The result is increased spending on flights, hotels, public transport, restaurants and souvenirs. Case in point: When my friends and I went to her Lisbon gig, we spoke to several Americans who had travelled to Portugal specifically because the tickets were cheaper and they wanted to add on a holiday experience.
For financial firms, discussing the “T. Swift lift” is great for SEO and media buzz. TD Securities published research connecting the singer-songwriter to the Bank of England’s summer interest rate decision. Lo and behold, its strategists were quoted in articles and invited to speak on TV.
Thanks for reading! Take care and stay curious, Sara x