THE MUSTS

How geopolitical forces are reshaping global Investments

This week Bloomberg released an enthralling article about how we might be watching the end of an era of globalization. Western multinationals that for years have avoided geopolitics in favor of pursuing profits in less mature markets are increasingly investing their capital in like-minded nations  — a sign that companies are making geopolitical bets.

The main reason is the reorganization of the world into rival but interconnected blocs based on Russia's invasion of Ukraine and the decline of foreign direct investment in countries that did not condemn Russia's invasion.

This transition could lead, however, to a fragmented global economy, potentially reducing global output by up to 7%. While the new economic order is porous, with continued trade between blocs, it raises concerns about inflation, reduced innovation, and increased global inequality.

What else is on?

• The 78th UN General Assembly began in New York this week: With Brazil opening the sequence of speeches, Brazilian President Lula focused on inequality with criticism of neoliberalism. Claiming that 40% of global wealth is in the hands of 10 people, he advocated taxing the rich. Without mentioning Russia, the president said that "unilateral sanctions cause great harm to the population of the countries affected" as well.

  • Ukraine: Calling for attention from international leaders, Ukrainian President Volodimir Zelensky resorted to the danger of a Third World War, accusing Russia of "nuclear blackmail" and genocide.

• Imigration issues in Europe: The Italian island Lampedusa of 6.000 inhabitants received more than 8.000 migrants in less than 48 hours. The island is often a stopping point for migrants crossing North Africa to enter Europe. The mayor of Lampedusa stated that the migration crisis had reached a "point of no return" and the island declared a local state of emergency.

• Democrafic crisis in Japan: Representing yet another worrying milestone in Japan's demographic crisis, the government announced a new figure: 1 in 10 Japanese are now over the age of 80.

  The proportion of elderly people, those over 65, has also reached a record high, comprising 29% of the population. By 2040, this figure is expected to reach 35%, further impacting on the shrinking workforce and the need to fund pensions and healthcare.

Historical strike: UAW autoworkers vs. the Big 3

The United Auto Workers (UAW) represents 146,000 workers in total and this is the first ever strike including workers from the Big Three US automakers (Ford Motors, General Motors and Stellantis).

The strategy involves a partial work stoppage affecting three plants employing only 12,700 workers. The idea here is to make the production line impossible by not supplying specific parts while ensuring the strike could go on for the maximum amount of time possible.

The strike aims to secure substantial raises and improved benefits for workers, reversing concessions made during the automakers' financial crises. The demands are a reduction in the weekly working day from 40 hours to 32 hours, cost of living adjustments, improvements in pensions for retirees and a 40% increase in wages.

The CEO of Ford Motors, Jim Farley, has said that such a large increase in wages would bankrupt the company. The figure, however, represents the average salary increase of the CEOs of the 3 companies (Ford Motors, General Motors and Stellantis) over the last 4 years. The workers, on the other hand, only got a 6% increase.

Trouble for Biden: Damaging Biden's re-election campaign, the shutdown comes at a time when the president is trying to convince voters that the country's economy is on the mend.

Musk is the winner: Tesla’s CEO was already enjoying a major cost advantage over his competitors thanks to more streamlined production processes and lower wages for his nonunionized workforce. Now that UAW employees are on strike and likely to see increased wages no matter how this labor dispute ends, Tesla’s edge in that area will only grow.

Personal Opinion: In a nation that lacks pro-worker labor laws, it appears that unions are increasingly recognizing their influence in the U.S. With the ongoing screenwriters' strike impacting production chains throughout Hollywood and now this current strike, it is evident that workers are growing weary of receiving minimal wage increases (which often fail to keep pace with inflation), while senior-level management reaps substantial profits as mentioned above.

If we examine the global landscape, it is particularly noteworthy that this coincides with Australian billionaire Tim Gurner's statement in the same week. Gurner contended that young individuals struggle to purchase homes due to excessive spending on avocado toast and suggested that inducing economic hardship would diminish workers arrongancy. "We must emphasize that individuals are employed by their employers, not the reverse.” - Are we sure about that?

What else is on?

• There’s always a first time: TikTok has been fined almost €370 million by European Union regulators For failing to protect children's data. The EU claims that the social network violated the bloc's privacy law.

• Mickey is changing directions: Disney plans to Invest $60 Billion in Theme Parks, Cruises Over Next Decade. After losing over half of its value since 2021, Disney stocks are trading at its lowest in almost 10 years. With the media and entertainment business still struggling, Disney+ still not being profitable, the company is planning to bet in high return investments expanding its parks and cruise line capacities.

• Iphone 15 & inflation: Apple launches Iphone 15 and contrary to expectations, the iPhone is the most affordable iPhone since 2007. In 2022 apple generated the most money from iPhones - US$ 200 billion. This corresponds to around 50% of the revenue generated by the company in the period. 

The Future of the Internet: Antitrust Google trial starts in Washigton

The DOJ’s (Department of Justice) lawsuit against Google started last week claiming the company has become the most-used search engine not because of a superior product, but because it illegally uses its money to box out its competitors.

During the biggest antitrust trial's in decades, the DOJ emphasized the significance of the case, stating that it concerns the future of the internet and whether Google's search engine will ever face genuine competition. They intend to demonstrate that Google has willfully maintained this illegal monopoly since as far back as 2010.

The trial will include testimonies from top executives of tech giants like Google, Apple, Microsoft, and Samsung, who will debate whether Google's dominance benefits or harms the internet. It revolves around revenue-sharing agreements worth billions of dollars between Google and companies like Apple, which make Google the default search engine on web browsers and mobile devices.

This comes after the DOJ emerged victorious 2-0 against AT&T in 1974 and Microsoft in 1998, altering the tech landscape and allowing new players to emerge.

Live long enough to become the villain: Ironically, Microsoft’s loss paved the way for then-startup Google to rise. In the search engine market today, there’s Google (90% market share), and then there’s everyone else. The DOJ believes Google’s “illegal” deals with Apple, Samsung and others let it maintain its dominance by reducing competition.

Other tech giants like Apple and Amazon are looking closely to the trial — since both are also being investigated for monopolistic practices.

What else is on?

Everything you must know about the Fashion Weeks (to be continued…)

That time of the year. Fashion weeks in New York, London, Milan and Paris are still happening, but here at the most important intakes so far:

This season showcases a clear vision for post-pandemic dressing, with designers emphasizing lightness, hybrid looks, and genderless suiting.

The New York Fashion Week highlighted a diverse range of designers, from titans to upstarts, offering camouflage-inspired clothing that nods to various identities. New York Men's Day's 10th installment presented genderless collections, signaling the determination of designers to overcome challenges in the fashion industry.

- Anna Sorokin (a.k.a. Delvey- from the netflix show Inventing Anna) hosted an unconventional rooftop fashion show while under house arrest, attracting attention from the fashion world.

- Ralph Lauren's show return to NY for the first time in 5 years continuing to embrace a proven formula of familiarity and desirable guest appearances.

- Peter Do's debut collection for Helmut Lang paid homage to the label's 1990s minimalism, but some critics felt it didn't redefine the brand.

- Finally, the return of the Victoria's Secret Fashion Show took a different approach, showcasing a feature-length film with a focus on female empowerment, but received mixed reviews from critics.

What else is on?

• Why launching in September? It is not by coincidence that Tanamesa is being launched today. The month marks the most important issue of all fashion magazines. That being said, opinions may differ on its current relevance.

• Katy Perry sells her music catalogue rights for U$ 255 million. The catalogue was sold to Litmus Music. The deal includes Perry’s stakes in master recordings and publishing rights for the five albums she released between 2008 and 2020: “One of the Boys,” “Teenage Dream”, “Prism,” “Witness” and “Smile.” Universal Music Group continues to own the masters to those albums.

• Oppenheimer becomes the highest grossing biography ever. The movie surpassed Bohemian Rhapsody with an estimated total of U$ 903 million dollars. It is also the biggest Nolan film of all time.

(Events) (Milan): In today's society where everything is permissible and within everyone's reach, where everyone can show themselves and everyone can watch, how permissible is it for an actor to expose his body, his supposed intimacy and his supposed sexuality in the service of dramaturgy? Actor or prostitute? Exhibitionism or total concession to character creation?

I invite you all to watch this social experiment that will include a real time discussion with actors and the audience. The performance will also provide a brief history of nudity and sexuality in entertainment. You can buy the tickets right here.

This event is for adults aged 18 or older.

Silence Between Songs by Madison Beer: Although Beer’s sound has been frustratingly non distinct in her first decade in the music industry, we have something of a signature sound for much of “Silence Between Songs”, a clear nod to Tame Impala’s psych-rock as well as swooning 60’s pop channeling her passion for Lana Del Rey and Kevin Parker.

For those that enjoy Ariana Grande, Lana del Rey and Julia Michaels (Rating: 7/10)

Troppo noi by Various Artists: “hmmm che buona sta tzatziki….” After last year's summer hit “Motivo Per Cui Bere” by Camilla Quarta featuring her best friend, where she sings about the hardships of her life in the international city of Mannheim, the duo joins forces with an A-list team of artists to make an iconic comeback in this unapologetic anthem that embodies the essence of youthful rebellion, giving nothing less than a chart-topping banger for the summer.

For those that enjoy Il Pagante, Black Eyed Peas, MY$$ Keta, and Kesha (Rating: 9/10)

If Leonardo Da Vinci was a professional procrastinator, as he assumed in his own journals, does that mean that you can be also a genious?

Procrastinating can be a vice for your productivity, but it can be a virtue for your creativity. In the TED “Surprising Habits of Original Thinkers” professor Adam Grant at Wharton Business School goes deep into understanding how original people think with the surprising discovery that most original people - those who not only have new ideas but take action to champion them, drive creativity and change in the world - are non-conformists with their own unique formula for success and could very likely be called procrastinators.

He’ll show how to harness the power of self-motivation by questioning your ideas and embrancing the exhilarating fear of failure. Plus, the drops some wisdom on the importance of cultivating bad ideas to uncover those precious ones.

Want more?

• The growing influence of effective altruism: Is it a good idea to consolidate decision making about the future to a small group of technocrats? This article debates the issues of philontrophy through multimillion-dollar foundations.

• Hotness epidemic: We are not only getting older, we are also getting hotter. Health experts have long concern themselves with lifespan and healthspan. Now, let’s deep dive in our “hotspam” - the length of time during a person is still hot.

• Spotless Giraffe: Keeping the ball rolling for Tanamesa’s brand, check out the only spotless giraffe in the world!

• For Archicture Lovers: Gisele Bündchen's new $9.1 million industrial-chic property in a Miami suburb has a tennis court and an equestrian rink.

• The Passport Index: Explore the passports of the world and see which ones give their holders the most mobility.

• Bi Love: Could bissexuality be a form of emancipation? (Italian).

• Sports: This is the cutest skater you will see today - guaranteed.

Hi!!

I'm thrilled to introduce the inaugural edition of this incredibly special project. I can’t believe this is finally happening and thank you so much for having subscribed. Did you find something interesting?

It's been months of diving into different platforms, crafting diverse logos, dissecting color palettes, and immersing myself in countless newsletters to grasp the essence of what I wanted to bring here. And now, I am proud to say that this is the final result.

But no.

Consider this the first glimpse into what has the potential to become something. Let's label it as the debut MVP (Minimal Viable Product, for those not inclined towards business jargon). You see, I've always sought perfection across many areas of my life. However, when embarking on projects like this one chasing after perfection tends to result in stagnation.

Waiting for the flawless logo, the impeccable name, or the picture-perfect layout could easily entangle me in a never-ending loop of contemplation, like a mental carrousel going in and endless circle. Therefore, I've chosen to momentarily set aside my pursuit of perfection and simply put something out there. Something I can take pride in—a stepping stone.

Firstly, because I can. This is my newsletter, and I envision Tanamesa as an open space for me to express my thoughts uninhibitedly. Secondly, you should expect changes. Perhaps the colors might morph next week, or I'll introduce an additional section. The evolution of Tanamesa is an ongoing narrative, one you're invited to participate in. Whether it's by responding to this email with suggestions, providing constructive insights, or even reaching out via my social channels, your involvement is fundamental.

If you find yourself between the lucky ones that received this first edition, it's because I value your presence and your standpoint. So, dive in, relish the content, and stay tuned for what's next.

XoXo,

Micael Balioni.