Friday☕️

11 Aug 2023 — 4 min read

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Saudi-Israel Deal:

The U.S. and Saudi Arabia are in advanced talks about a deal for Saudi Arabia to officially recognize Israel. Historically, Saudi Arabia, like many of its neighbors, has not recognized Israel and has stood as a prominent supporter of Palestinian statehood.
Saudi Arabia seeks U.S. security guarantees, assistance in initiating a nuclear energy program, and specific concessions from Israel concerning Palestine. Conversely, Israel is seeking security commitments from the U.S. and has opposing views towards Saudi Arabia's nuclear ambitions.

Chinese Tech Investments:

The Biden administration issued an executive order limiting U.S. private equity and venture capital investments in Chinese tech. This move emphasizes the growing concerns about China, especially in tech sectors such as semiconductors, quantum computing, and AI, due to potential U.S. national security threats.
The directive is slated to be effective next year. U.S. investments in China have been declining, driven by a mix of a slowing Chinese economy and geopolitical tensions. In 2022, U.S. investments in China dropped to an eight-year low, a trend noted by PitchBook data into the current year.
Elena McGovern, of private equity advisory firm Capstone, mentioned that their clients had already been reducing their Chinese engagements. This executive order represents the first time the U.S. government is directing outbound U.S. capital and investment decisions, marking a new chapter.
There's bipartisan concern about U.S. funds flowing to China. Recently, a House committee expressed worries about U.S. venture firms investing in Chinese tech startups. Furthermore, in July, renowned venture capital firm Sequoia Capital announced a restructure of its international operations, spotlighting its influential Sequoia China unit led by Neil Shen.

Virgin Galactic Flight:

Yesterday, Virgin Galactic successfully completed its first flight with private astronaut customers, almost 20 years after ticket sales began. This flight, termed Galactic 02, was Virgin Galactic's second commercial trip, following the June 29 research journey for the Italian Air Force.
While the earlier mission focused on research, Galactic 02 catered to space tourists, the primary clientele for Virgin Galactic since they began ticket sales in 2005 at $200,000. The current ticket price stands at $450,000.

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