Sudan conflict, BlackRock, Columbian Oil, and more!

Good Morning- In a recent newsletter, we announced the launch of Threads, Meta's Twitter competitor. There were speculations about it being the "Twitter Killer," but its performance has not indicated that. Since a promising start, the app lost half of its users. However, CEO Mark Zuckerberg views this drop as normal and is optimistic about improving retention through new features. Investors were pleased with Meta's revenue growth forecast. Zuckerberg predicts that metaverse technology will see widespread use in the 2030s. Meta also released an AI model called Llama 2, which garnered significant interest from developers. The possibility of a "cage match" with Elon Musk remains uncertain.

Global Insights

2023 Sudan Conflict

The war between the Sudanese army and the paramilitary Rapid Support Forces (RSF) has been going on for three months. Despite over half the country in need of aid, the hostilities have not stopped. The conflict began in mid-April due to a power struggle between army chief Abdel Fattah al-Burhan and RSF commander Mohamed Hamdan "Hemedti" Dagalo. Since then, the crisis in Sudan has worsened.

In the capital city, Khartoum, entire neighborhoods have been destroyed and abandoned as more than a million residents have fled. In the western region of Darfur, the fighting has taken on an ethnic dimension, causing clashes between Arab and non-Arab communities.

The war has resulted in 2.2 million people being displaced from their homes, including 528,000 seeking refuge in neighboring countries. The United Nations estimates that 25 million people in Sudan are in need of humanitarian assistance. Reports from the Armed Conflict Location and Event Data Project suggest that the death toll has exceeded 2,000 people, but the actual number is believed to be much higher.

On April 15 it the conflict began with chaotic scenes in Khartoum as armored vehicles from both forces were seen in the streets, with heavy artillery fire and fighter jets in the skies. The death toll rose, and hospitals struggled to cope with the fighting.

The conflict also spread to other parts of Sudan, including Merowe, a city in the north with gold mines, a military airport, and an important reservoir on the Nile River. However, the worst violence was witnessed in Darfur, where Arab and non-Arab communities have long fought over limited water and land resources. Civilians have been indiscriminately killed, hospitals ransacked, and entire neighborhoods burned. The conflict has reversed hopes for democracy that emerged after President Omar al-Bashir was removed in 2019. Two years later, the two generals now leading the warring forces orchestrated a coup, ending a power-sharing agreement between the military and civilian leaders meant to lead to elections. Disagreements over integrating the RSF into the regular army led to rifts.

The conflict has drawn international concern, with countries like Russia, the United States, and regional powers seeking influence in Sudan. Efforts to broker a lasting ceasefire between the army and the RSF have not been successful, despite talks initiated by Saudi Arabia and the US in Jeddah. Both sides attended the talks and expressed commitment to protecting civilians, but ceasefires were repeatedly broken, and the army suspended its participation in the talks on May 31.

Both the army and the RSF view the conflict as a critical and life-or-death struggle, which means they are determined to fight until the very end. As a result, there are no indications that the fighting will come to an end in the near future.

Blackrock capitals political influence

Introducing BlackRock Inc., a major capital investment management corporation that offers financial advice and helps companies invest and manage risks to protect their money. With almost $10 trillion in assets, BlackRock holds more wealth than most countries' entire economies, except for the United States and China. It is a significant shareholder in various industries, including oil and gas, technology, retail, big banks, healthcare, and weapons manufacturing. Due to its massive influence, BlackRock is recognized as one of the most powerful corporate entities worldwide, impacting various aspects of our daily lives.

In the political arena, BlackRock's political action committee (PAC) was actively involved in US political campaigns in 2022. Their contributions to congressional candidates and parties hit a record $647,000, marking a 38% increase from the previous election cycle. Over half of these funds have been allocated to Democratic candidates. The company's political engagement has drawn attention and scrutiny, especially in relation to environmental, social, and governance (ESG) goals.

States like Missouri and Louisiana have withdrawn more than $1 billion in public money from BlackRock's funds

As Congress is closely divided between the two parties, BlackRock has evenly distributed its political contributions. Executives, including CEO Larry Fink, have also contributed to individual campaigns, reflecting the company's engagement across the political spectrum.

It's interesting to note that former BlackRock executives now hold prominent roles in President Joe Biden's cabinet, including Brian Deese, Adewale "Wally" Adeyemo, and Michael Pyle, showcasing the company's impact in the political landscape.

BlackRock's involvement in politics and its significant financial presence continue to be topics of interest and discussion, with potential implications for the global economy and public policy.

Illegal oil bust in Columbia

Colombian police have successfully seized property and bank accounts worth 1.3 trillion pesos, equivalent to $329 million, which were proceeds from the sale and export of stolen crude oil. This operation followed seven investigations conducted by the national police and Interpol since 2016, targeting four criminal organizations involved in oil theft and smuggling.

These criminal groups managed to export around 975,000 barrels of crude oil between 2020 and 2021. The stolen oil is often refined into bootleg fuel known as "pategrillo," which is used in illegal activities like making cocaine or powering machinery in illegal mining operations. This oil is mainly stored & hidden in the jungle.

The theft of crude oil is a widespread problem in Colombia, with thousands of barrels stolen daily. The National Liberation Army (ELN), a rebel group, is known to be involved in hydrocarbon theft and attacks against oil pipelines, further aggerating the issue.

In this recent operation, the police seized houses, apartments, boats, vehicles, and four refineries. They also froze 17 bank accounts, both in Colombia and internationally, totaling 20.3 billion pesos (around $5.14 million). The criminal groups involved in the thefts would mix the stolen oil with legally-purchased crude and use front companies to export it.

Colombia's state-owned oil company, Ecopetrol, was one of the main victims of this scheme, incurring losses of 60 billion pesos. The company has been working with the government and security forces to address illegal operations and has removed thousands of illegal valves from its transportation systems.

The stolen crude came from the Cano Limon-Covenas pipeline, located near the border with Venezuela. Some of it was mixed with light Venezuelan crude before being exported through the same pipeline. This operation aims to curb the illegal activities that have been causing financial losses and environmental harm.

Trending

Russian & Chinese officials visit North Korea

Chinese and Russian officials visited North Korea for a military parade, where they looked at North Korea's new nuclear-capable missiles and attack drones. This parade celebrated the end of the Korean War. The presence of these officials with North Korea's banned weapons caused concern as it goes against UN sanctions. The countries' support for North Korea raises questions about enforcing these sanctions. The parade also displayed new surveillance drones that could be used in a war.

Chinese suspected on giving military aid to Russia

Recent U.S. intelligence suggests China may be helping Russia bypass Western sanctions and providing military technology for use in Ukraine. The report mentions that China is sending dual-use equipment to Russia, which could have both civilian and military applications, despite international sanctions. China's increased trade with Russia in its own currency and their use of domestic payment systems are also noted. The report raises concerns about China's role in the situation and its potential impact on Ukraine and international relations.

White House not pardoning Hunter Biden

During a Thursday briefing, White House spokeswoman Karine Jean-Pierre stated that President Joe Biden has no intention of pardoning his son Hunter, who is currently facing charges related to unpaid taxes on over $1.5 million in income from 2017 and 2018. When asked if a pardon was a possibility, the response was a firm "No." Hunter is also suspected of a money laundering scheme by selling personal art made by himself, with sales from certain art pieces reaching 1.3M and another reaching 500k.

Venezuela paying people to tweet

In Venezuela, there are individuals, like Rafael (not his real name) have recently come forward, who are paid by the government to tweet propaganda in support of the ruling party. These "digital troops" share hashtags provided by the government to promote a pro-government narrative on social media platforms, especially Twitter. The aim is to drown out opposing voices and influence public perception online. The government uses the Sistema Patria app to monitor and pay these propagandists based on their Twitter activity. While some do it for the financial incentives, others feel pressured due to economic hardships. Critics see this as an attempt to suppress free speech and manipulate online information.

Off the beaten path

Paris is bringing back swimming in the River Seine after 100 year ban

With the Olympics just a year away, Paris is putting the finishing touches on a historic clean-up project that will allow swimmers and divers to return to the once-polluted River Seine. For a century, swimming in the river was prohibited due to its filthy water, but thanks to a successful €1.4 billion regeneration effort, city swimming is set to become one of the major legacies of the Games.

The Seine will host three Olympic and Paralympic events - triathlon, marathon swimming, and Para-triathlon - right in the heart of central Paris. Moreover, by 2025, the city plans to create three open-air swimming areas accessible from the quayside, giving residents and visitors the opportunity to enjoy the river's waters.

Pierre Rabadan, the deputy Paris mayor in charge of the Olympics, believes that when people witness athletes swimming in the Seine without health problems, they will gain confidence in using the river for themselves. This revitalization of the river comes after decades of decline in water quality due to industrial sewage and a growing population.

One of the major challenges in improving the river's health has been the 19th-Century "single system" drainage infrastructure, which mixes household waste water with street runoff during heavy rains. This excess water, containing pollutants, used to flow directly into the Seine. To address this issue, a massive underground reservoir is being constructed to store the runoff during heavy rainfall, preventing it from polluting the river. This project is expected to significantly improve water quality and allow the Seine to be officially classified as clean.

The river's transformation is a testament to the ongoing efforts to restore aquatic life in the area. In the 1960s, only three species of fish were recorded in the city, but today there are between 30 and 35 species present. Fish, mollusks, aquatic insects, sponges, and crayfish have all made a comeback in the cleaner waters of the Seine.

Looking ahead, the city is eager to showcase the revitalized river during the Olympics, with a flotilla of boats carrying athletes in a spectacular opening ceremony. Furthermore, after the Games, Paris plans to offer residents and visitors the opportunity to swim in designated areas along the Seine, enhancing the city's appeal and offering a recreational and enjoyable activity for all to experience.

Fast Facts

• Italy has stopped issuing birth certificates of kids born to lesbian couples & are removing the names of non-biological mothers to old birth certificates

• After vanishing during a hiking trip near Switzerland's renowned Matterhorn mountain in 1986, the body of a German mountain climber has finally been found and recovered.

• South Africa is the worlds 2nd largest producer of fruit

• Mexico’s real name is The United States of Mexico

• William Hitler, the half-nephew of Adolf Hitler, served in the United States Navy against his uncle during World War II. William changed his surname to “Stuart-Houston” after leaving the Navy

Quote of the week

If you're going through hell, keep going.

-Winston Churchill