02 August 2024

Daily Newsletter

Intel to Lay Off 15K Employees, Cut $10B in Costs

The Facts

  • Pat Gelsinger, chief executive officer of Intel, announced on Thursday that the US chipmaking giant is laying off 15% of its staff — or about 15K employees — by year-end to reduce costs in 2025.

  • In a memo to employees, Gelsinger said that the company — which is "yet to fully benefit from powerful trends, like AI" — aims to save $10B by next year as it required a massive restructuring after posting $1.6B losses in Q2 this year.


The Spin

Narrative A

Intel's layoff plan is undoubtedly painful, but that will save the company $10B by next year. This is necessary to recalibrate Intel's course for the future and protect employment at the company as a whole. The chipmaker remains committed and focused on innovation and AI. Such streamlining is a long time coming and will ensure it continues to lead the technology sector.

Narrative B

Intel is grappling with declining revenues and profits amid the rise of companies like Nvidia in the AI chip market. It plans to pivot towards developing a foundry business to produce chips for other companies, but this strategy requires massive investment. Laying off thousands of employees alone may not be enough to turn Intel's fortunes around.

Nerd narrative

There's a 59% chance that any Chinese semiconductor foundry will have 20% or more global semiconductor market share before 2033, according to the Metaculus prediction community.

See sources

US: Illegal Border Crossings Lowest Since 2020

The Facts

  • According to CBS News, data from the government reveals that illegal border crossings in the US have declined for the fifth straight month, with apprehensions falling from 250K in December to just 56K in July — the lowest level since September 2020.

  • This comes as the Biden administration issued an executive order on June 5 that enacted stricter rules for granting asylum claims.


The Spin

Democratic narrative

According to the most recent immigration data, the Biden administration has taken critical steps to address the challenges at the southern border and reduce the high level of illegal immigration. If the effective measures at the border are sustained, the temporary asylum restriction might be lifted in the near future as Biden balances the need to protect the US' border with looking out for vulnerable asylum seekers.

Republican narrative

While on the surface, these numbers may seem promising, America is currently experiencing the most severe border crisis in its history. Biden reversed almost every immigration program of the previous government without establishing viable alternatives. His executive order was nothing more than a last-minute facade to boost the Democratic Party's appeal ahead of November.

Nerd narrative

There's a 50% chance that the rate of immigration enforcement in the US in 2024 as a percentage of removals to encounters will be at least 6.75, according to the Metaculus prediction community.

See sources

Olympics: Italian Boxer Quits Against Opponent Who Failed Gender Test

The Facts

  • Italian boxer Angela Carini abandoned her Olympic bout after 46 seconds on Thursday, allegedly due to severe pain in her nose from two punches by Algeria's Imane Khelif. A tearful Carini could be heard telling "Non è giusto" ("It's not fair") to her corner.

  • Previously, Rome had expressed concerns over rules that allowed her opponent to compete in Paris despite failing the International Boxing Association's (IBA) gender-eligibility tests and being disqualified from the 2023 World Boxing Championships.


The Spin

Right narrative

Originally meant to be a celebration of excellence, the Olympics have turned into a horror show as non-biological women have been allowed to fight biological women. This case may inevitably be a bit more complicated than those of transgender athletes, but Khelif must be banned due to an unfair advantage that risks the safety of her opponents.

Left narrative

Anti-trans activists were quick to attack Khelif, a cisgender woman taking part in the women's welterweight boxing competition at the Paris Olympics, paying little attention to the fact that she had competed at Tokyo 2020 without any commotion. Yes, she has a genetic advantage over her rivals — just like most world-class athletes.

See sources

Global Stocks Slump Amid Release of US Data

The Facts

  • Global stock markets tanked overnight Thursday into Friday following the release of a US manufacturing survey and jobs report — both of which fell below market estimates.

  • According to a Thursday report from the Institute for Supply Management, US manufacturing — which makes up 10.3% of the economy — hit an eight-month low, with the Purchasing Managers' Index dipping to 46.8 from 48.5 in June. Any measure below 50 suggests a contraction in the market.


The Spin

Narrative A

Recent declines in the US stock market were an indication of a potential shift and the coming end of its boom. High interest rates have hurt debt-heavy companies and smaller businesses are facing declining revenues. Political and economic uncertainties do not create optimism. Most US stocks have not reflected the economy's once-exceptional economic growth for a while.

Narrative B

A correction was only waiting to happen after the US market's bull run. Stock market crashes don't happen often, and the current situation doesn't suggest an imminent crash of a major kind. Investors should focus on maintaining diversification, balancing portfolios, and sticking to long-term plans, as history shows that market dips often present valuable buying opportunities.

Nerd narrative

There is a 50% chance the US unemployment rate will be 8.33% after the next market crash happens, according to the Metaculus prediction community.

See sources

Don Lemon Sues Elon Musk and X Over Canceled Show

The Facts

  • Former CNN host Don Lemon on Thursday sued Elon Musk and his social media platform X (formerly Twitter) after a $1.5M one-year deal to host a talk show on the billionaire's platform was revoked.

  • After Lemon was fired from CNN over controversial comments about then-Republican presidential candidate Nikki Haley in April last year, Musk reached out to him to launch a new show on X.


The Spin

Left narrative

Musk and X sought Lemon to revitalize the platform after dozens of advertisers pulled out over its content moderation policies. Musk must compensate and pay for damages after unfairly terminating the multi-million-dollar partnership deal.

Right narrative

During negotiations, Lemon sought out numerous benefits, and Musk had generously agreed to pay him several financial perks. Could he really be so surprised that the deal was canceled once he went after the man paying his bills?

Nerd narrative

There's a 1% chance that X will declare bankruptcy in 2024, according to the Metaculus prediction community.

See sources

US Says Venezuela's Opposition Candidate Won Presidential Election

The Facts

  • The US Department of State said in a statement on Thursday that opposition candidate Edmundo González Urrutia won Venezuela's disputed presidential election, prompting a strong response from Caracas the next day.

  • The declaration is reminiscent of the US recognition of former opposition leader and head of the National Assembly Juan Guaidó as the legitimate interim president of Venezuela in 2019, following the 2018 presidential election.


The Spin

Pro-establishment narrative

This mockery of an election has shown that all efforts to ensure a peaceful democratic transition for Venezuela were in vain because Maduro never really intended to carry out free and fair elections — let alone to leave power. The US has already recognized González as the rightful winner, so now the rest of the world's democracies must follow suit.

Establishment-critical narrative

Available results are statistically irreversible and have already been audited 16 times, so it's clear that the US is pushing for a coup in Venezuela. Declaring González the winner only shows its willingness to justify armed action to topple President-elect Nicolás Maduro and appoint a puppet to run the oil-rich country in disregard of the will of Venezuelans.

Nerd narrative

There's a 56% chance that the US will sanction Venezuelan oil again by 2030, according to the Metaculus prediction community.

See sources

Sudan: Global Food Monitor Declares Famine in Darfur

The Facts

  • According to a report published by the Famine Review Committee of the Integrated Food Security Phase Classification on Thursday, the 15-month-long war in Sudan has caused famine in parts of Sudan’s North Darfur region — especially the Zamzam camp for displaced people.

  • The report posits that North Darfur is experiencing the fifth phase of food insecurity or “the worst form of hunger,” indicating famine, in which at least one in five people or households have an extreme lack of food and face starvation.


The Spin

Pro-establishment narrative

It's more important than ever to protect Sudan from collapsing entirely. With millions who fled horrific violence going hungry for months, a repeat genocide is underway in the war-torn country. This is a people-made crisis, and it can be resolved if the guns are silenced and agencies are empowered to deliver relief to people forced to leave their homes. The country not only needs urgent funding, but the gravity of the situation on the ground demands safe and unimpeded humanitarian access.

Establishment-critical narrative

Sudan's Darfur region was once dubbed the nation's breadbasket as it contributed over half of the country's total cereal production. Despite conflict, displacement, and humanitarian access constraints, it shouldn't be facing famine. The US-backed secession of what's now called South Sudan — to gain control of its oil — has turned Sudan upside down, causing the harrowing conditions in Darfur. The UN's warning will be brushed aside as the Western elites have no desire to fix the mess they've created.

Nerd narrative

There's a 50% chance that the estimated number of internally displaced persons in Sudan at the end of December 2024 will be at least 13.8M, according to the Metaculus prediction community.

See sources

Schumer Proposes 'No Kings Act' Following SCOTUS Immunity Ruling

The Facts

  • US Senate Majority Leader Chuck Schumer (D-N.Y.) proposed on Thursday a bill called the "No Kings Act," which would reassert that presidents have no prosecutorial immunity for criminal acts and reverse a precedent established by the Supreme Court last month.

  • SCOTUS ruled in Trump v. United States that all presidents have "absolute immunity from criminal prosecution for actions within his conclusive and preclusive constitutional authority" and "at least presumptive immunity" for official acts but "no immunity for unofficial acts."


The Spin

Democratic narrative

The SCOTUS ruling was not based on legal precedent or thoughtful debate between conservative and liberal justices but rather an explicit attempt to shield future far-right presidents. Given the court's super-majority of pro-Trump justices, coupled with its current status of lifetime terms and lack of an ethics code, the only way to reign in their power and that of their friends in government is to codify a new law banning such ludicrous legal theories.

Republican narrative

The Democrats are projecting their nefarious goals with respect to SCOTUS onto the Republican Party. The court's ruling was a very mild one that simply asserted the right of presidents — and not just Trump, but all presidents from either party — to govern without fear of being prosecuted by their opponents after leaving office. The Democrats don't want to reform the court—they want to completely redesign it.

Nerd narrative

There is an 8% chance that there will be any change to the composition of the Supreme Court in 2024, according to the Metaculus prediction community.

See sources

Kamala Harris Clinches Democratic Presidential Nomination

The Facts

  • US Vice Pres. Kamala Harris passed the threshold needed to win the Democratic party's presidential nomination on Friday, becoming the first woman of color to lead a major-party ticket and the first Democratic nominee from a western state.

  • Harris needed to secure votes from 2,350 delegates and crossed the threshold just a day after online voting began. The vote is open through Monday, when her nomination will become official. Since the official nomination vote is being held remotely, a ceremonial roll call will be held at the Democratic convention in Chicago on Aug. 19.


The Spin

Republican narrative

American democracy is at a dangerous crossroad. Harris' route to the top of the ticket is extraordinary, and a sham. She received zero presidential primary votes and never submitted herself to sit-down interviews or campaigning since becoming the Democrats' de facto nominee. The speed at which Democrats moved to coronate her indicates that Harris became the 2024 Democratic presidential nominee because of a de facto coup led by Democratic Party kingpins and donors.

Democratic narrative

Harris' ascent marks a milestone for a nation long riven by racial and gender issues. The prospect of seeing a woman of color defeat Trump has re-energized the Democratic Party's hopes of retaining the White House. Democrats should seize this moment, take advantage of her tremendous grassroots support, prepare a solid counteroffensive, and harness the enthusiasm for Harris into a three-month plan to turn the page on the Trump era.

Nerd narrative

There's a 10% chance that Kamala Harris will be president before inauguration day 2025, according to the Metaculus prediction community.

See sources

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