Ukrainian Drones Struck Russian Air Base

Monday, June 2nd, 2025

World Events — An Astonishing Raid Deep Inside Russia 

The Economists

Shortly after noon on June 1, 2025, Ukraine launched its most ambitious operation on Russian soil to date, deploying swarms of small quadcopter drones from trucks hidden near airfields across Russia—including in Irkutsk, Murmansk, Ryazan, and Ivanovo provinces, some as far as 4,000km from Ukraine. The operation, codenamed “Spider Web” by Ukraine’s security service (SBU), targeted four major airbases and reportedly damaged or destroyed at least 41 Russian aircraft, including strategic bombers (Tu-95, Tu-22M3) and a rare A-50 early-warning plane, delivering one of the heaviest blows to Russia’s air force since the war began. The drones, smuggled inside wooden cabins and launched after the roofs were remotely opened, relied on Russian mobile networks for control and video relay, and were operated by teams that had infiltrated deep into Russian territory, with the mission reportedly 18 months in the making. Ukrainian President Zelenskyy hailed the attack as historic, noting that it degraded Russia’s ability to launch missile strikes against Ukraine and showcased the reach and sophistication of Ukraine’s deep-strike capabilities, while Western militaries watched closely, recognizing the vulnerability of concentrated air assets to such innovative tactics. 

Tech — The Rise of YouTube to Dominate Media

Bloomberg

YouTube has rapidly transformed from a platform known mainly for short, user-generated videos into a dominant force in living room entertainment, rivaling traditional TV networks and streaming giants in both viewership and revenue. By partnering with TV manufacturers, enhancing the TV app experience, and introducing features like pause ads and a live-TV service with major channels, YouTube has made itself the go-to TV service for all age groups in the US, with people now spending more time watching YouTube on their televisions than on phones or computers. Creators like Alan Chikin Chow and Dhar Mann have found massive success producing sitcom-length, scripted series tailored to YouTube’s young audience, while the platform’s ad sales have more than doubled in five years, outpacing all four major US broadcast networks combined. Despite lower production budgets compared to Hollywood, YouTube’s top creators are drawing millions of viewers and significant investment, signaling a shift in media power as advertisers and audiences increasingly favor digital-first content—so much so that YouTube is projected to soon surpass Disney’s media business in total revenue, cementing its status as the “new king of all media”.

Business — Moet Hennessy’s Crisis

FT

Moët Hennessy, the drinks division of LVMH known for brands like Dom Pérignon and Hennessy, has faced a dramatic reversal in fortunes, shifting from generating €1 billion in cash in 2019 to burning through €1.5 billion in 2024 due to a combination of aggressive price hikes, underperforming acquisitions, and a costly push into direct-to-consumer retailing. The global downturn in luxury alcohol sales exposed the risks of these strategies, with prices across the portfolio rising by more than a third since 2019 and retailers beginning to resist further increases, while sales volumes and profit margins fell sharply. Leadership changes followed, with Jean-Jacques Guiony taking over as CEO and Alexandre Arnault as deputy CEO in early 2025, tasked with restructuring the business, reviewing recent acquisitions, and slashing about 1,200 jobs—over 10% of the workforce—as part of a cost-cutting drive. The new management is now focused on scaling back unprofitable ventures, particularly in direct-to-consumer and private sales, and reassessing the group’s expanded portfolio, as the division’s recovery is expected to be slow amid ongoing global headwinds.

Society — China’s Property Market Is Recovering 

The Economists

After years of turmoil, signs are emerging that China’s long and painful property crisis may finally be easing, with a recent $38 million luxury mansion auction in Shanghai sparking hope that the end of the nightmare is near. While the broader economy remains under pressure from an ongoing trade war with the US, China’s private sector is showing resilience, and the property market is stabilizing, especially in top-tier cities like Shanghai, where inventory overhangs are shrinking and luxury homes are being snapped up quickly. Although new home sales by value are still falling, the rate of decline has slowed dramatically compared to previous years, and government interventions—such as interest rate cuts, subsidies, and local authorities buying up excess housing—are helping to restore confidence. However, the recovery is uneven: while wealthy cities are seeing prices stabilize or even rise, smaller cities continue to struggle with oversupply and steep discounts. Overall, while the worst appears to be over for China’s property sector in its richest urban centers, sustained government support will be crucial to ensure that the recovery spreads beyond just high-end neighborhoods and benefits the broader population.

The Daily Spark 

Home prices are falling in London, see chart above. 

Song Recommendation — i’m too pretty for this (Claire Roskinkranz)

Quote of the Day 

“This is teh way the world ends, not with a bang, but a whimper.” - T.S. Eliot