Weekly Update

29 April - 5 May 2023

Another busy week. First Republic has replaced SVB as the second-largest ever U.S. bank failure, and PacWest is struggling too. The Fed raised interest rates by 25 bps, triggering additional concerns of further financial system issues. U.S. Treasury Secretary warns that the U.S. could default on its debt as early as June. Someone (maybe Russia in a false-flag operation) attacked the Kremlin with drones. Russia has tried to provoke the U.S. into a shooting war in Syria. The UN’s nuclear watchdog found explosives in a Russian-occupied nuclear power plant. The defense primes continue to secure larger and larger contracts from the DoD. But in good news, Czechia has joined the Artemis Accords.

• News Round Up

• Lighter Side

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Weekly News Round Up

• U.S. Treasury Secretary Yellen said US could default as early as June 1 (NYT)

• First Republic became the second-largest ever U.S. bank failure (BBG)

• U.S. manufacturing entered its longest contractionary streak since 2009 (FT)

• U.S. job openings fell for third-straight month to a two year low (RT)

• Chinese IPOs raised over five times more than U.S. IPOs this year (FT)

• The U.S. Federal Reserve raised rates by 25 bps, may soon pause monetary tightening (FT)

• Regional bank stocks sank, led by PacWest’s 60% drop following a report that it was weighing strategic options including a sale (BBG)

• U.S. private funds face more disclosures under new SEC rule (FT)

• UK plans to loosen IPO rules amid drop in new listings (BBG)

Military

Europe, Russia, the Arctic, NATO, and the war in Ukraine

• Drones may have attacked the Kremlin, or it may have been a false-flag (MT)

• Ukrainian drones strike Crimean oil depots, as the country tries to displace Russian occupiers (MT)

• EU nations quarrel over how to spend money for Ukraine (DN)

• In deepening row, Wagner boss threatens to withdraw forces from Bakhmut (BBC)

China, Korea, and Asia

• U.S. Senate working on a bill that will restrict advanced tech and investments from China (DN)

• U.S. Navy P-8 flies over Taiwan, China scrambles jets (USNI)

• U.S.S. George Washington to return to Japan in 2024 (S&S)

• U.S. Military tracking another mysterious balloon (NBC)

• … but assesses it’s not from China (MT)

• POTUS touts “ironclad” relationship with Philippines amid China tensions (AP)

• Japan scrambles jets over suspected Chinese drone (RT)

• Philippine Coast Guard and Chinese warship nearly collide (USNI)

• U.S. to install 360-degree missile defense system on Guam (S&S)

• Taiwan seeks deeper security exchanges with U.S. (MT)

• China updates conscription laws with eye on space and cyberspace (TH)

Middle East and Africa

• Russia trying to provoke U.S. planes in Syria into a dogfight: U.S. General (AFT)

• U.S. evacuates citizens from Sudan amid fighting (MT)

• Turkish intelligence service kills ISIS chief in Syria (CBS)

• Iran seizes Panama-flagged oil tanker, second seizure in as many weeks (AP)

• Russian missile damaged U.S. MQ-9 drone over Syria (ASF)

• Israel seized Binance crypto accounts to thwart Islamic State and Islamist Hamas group (RT)

U.S. Defense modernization and innovation

• U.S. Army fielding wearables to track, improve soldier fitness and performance (AT)

• U.S. Army helicopters to get next-generation engines, but not for another two years (DN)

• U.S. Air Force seems to reverse position on ARRW hypersonics program (BD)

• U.S. Coast Guard using all-remote teams of volunteers for cybersecurity (FT)

• U.S. Marines and Pentagon at odds over request for 31 amphibious ships (DN)

• U.S. Marines will use XQ-58 Valkyrie as Electronic Warfare support to F-35 (TWZ)

U.S. Defense Industry News

• Lockheed Martin captures $7.8 billon modification to F-35 contract (RT)

• Defense industry: supply chains finally improving post-COVID (DN)

• Anduril unveils swarm control software (C4ISR)

• JetZero partners with Northrop Grumman to design blended-wing body tanker for U.S. Air Force (ASF)

• State Department approves sale of anti-ship missiles to Latvia (RT)

• State Department approves sale of sonar systems to Australia (RT)

• Raytheon, Lockheed compete for satellite ground system contract (C4ISR)

• Lockheed-Raytheon joint venture to benefit from $7.2 billion purchase of javelin anti-tank missiles (S&S)

Foreign Defense Industry News

• More foreign partners will participate in U.S. Aviation demonstration (DN)

• Poland upgrades short-range air defenses at $3.1 billion cost (DN)

• UK, Germany working together on new armor-piercing ammunition (DN)

• Turkey’s Baykar unveils cruise missile to be launched from drones (DN)

• German Rheinmetall settles lawsuit over IP related to Leopard-2 tanks (RT)

• Turkey dubs 5th gen fighter “KAAN,” sees other aviation milestones (BD)

• U.K. orders 11 SAAB Giraffe 1X air surveillance radars (BD)

• Russia wants to double wartime missile production capacity (MT)

• Rheinmetall pitches drone mothership concept (C4ISR)

• Lithuania to purchase 120 Infantry Fighting Vehicles, $3.4 billion of ammunition over next decade (DN)

Space

• Vast, hidden oceans found on four of Uranus’ moons (ST)

• Czechia signs Artemis Accords (Space)

• How 3 space agencies are collaborating on next-gen missile warning (C4ISR)

• SpaceX launches triple-core Falcon Heavy from Florida (FlT)

• Airbus unveils artificial gravity space station design (SA)

• U.S. report outlines China’s efforts towards space dominance (MT)

• Lockheed Martin to reorganize its space business (SN)

• U.S. lawmakers question if the new National Security Space Launch program is truly fair to new entrants (SN)

• European space companies launch bid for secure satellite network (C4ISR)

• Environmental groups sue US over SpaceX launch license for Texas (RT)

Nuclear Power & Weapons

• Explosives found in Ukrainian nuclear facility (NW)

• Westinghouse launching a small modular reactor (CNBC)

• Russian officials call for nuclear attack against Ukraine (MoT)

• U.S. Intelligence suggests such attacks are “very unlikely” (RT)

• France, Japan sign nuclear partnership deal (RT)

• Avalanche Energy, a Seattle, WA-based nuclear fusion startup, raised $40 million in a Series A funding round led by Lowercarbon Capital, with participation from Founders Fund and Toyota Ventures. (FinSMEs)

Artificial Intelligence, Robotics, Energy, and other cool tech

• ‘Godfather of AI' Geoffrey Hinton resigned from Google amid fears of danger (NYT)

• OpenAI, the company behind ChatGPT, raised $300M+ from Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global at a ~$28B valuation (TC)

• Avaada Group, an Indian renewable energy, energy storage, and solar PV manufacturing firm, raised $1.07B in funding from Brookfield Renewable, Global Power Synergy, and more (PRN)

• Joby Aviation, an all-electric aircraft startup, received a $180M equity investment from Baillie Gifford in a secondary offering (TC)

• Ashton Kutcher’s Sound Ventures raised $243M to invest in AI startups (BBG)

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Lighter Side

Carina Nebula North

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Keep building!

Andrew