CIAO from Puglia, where the second day of the G7 summit is underway. It follows an action-packed Day 1, culminating with sky-divers carrying the flags of each G7 country descending from the clouds, before leaders (sans U.S. President Joe Biden, according to reports) were whisked away to the nearby Swabian Castle of Brindisi for dinner. NO SUCH THING AS A DULL DAY IN ITALIAN POLITICS: At least things remained civilized at the lux Borgo Egnazia resort where the summit is taking place — a brawl erupted in the Italian parliament on Wednesday just before things kicked off here in Puglia, with one lawmaker ending up in hospital. TRAVEL UPDATE: On Thursday we told you it was a five-hour return trip between the media center and the summit location. We were wrong — it’s nine hours. A dedicated group of journalists arrived back just before sunset last night, having left at 11.30 a.m. for a 4.30 p.m. interview. WHAT'S ON THE MENU: Only the finest for the G7, who are being treated to sumptuous meals courtesy of Michelin-starred chef Massimo Bottura, from a menu titled "Come to Italy with me." Thankfully, British Prime Minister Rishi Sunak’s intermittent fasting regime only kicks in Sunday night, so he’ll be able to partake in such dishes as "The crispy part of a lasagna" and the "OOPS I dropped my lemon tart." Italian daily La Repubblica has more details. WHAT'S ON THE AGENDA: Back to the more substantial issues on the menu. Today, it's migration, artificial intelligence and the G7’s relationship with the wider world (full preview below), before guests are treated to a concert by renowned Italian tenor Andrea Bocelli tonight. NOTABLE NO-SHOW: Saudi Crown Prince Mohammed bin Salman won't be enjoying the dulcet tones of "Time to Say Goodbye." He's skipping the G7, citing commitments around Hajj, the annual Islamic pilgrimage to Mecca, which begins today. TACKLING AI PAPAL BLESSINGS: Having missed the COP28 climate talks in Dubai last December due to ill health, Pope Francis is traveling across the country from Saint Peter’s Square to Bari. He'll participate in today's session on AI and hold a series of bilaterals, including with U.S. President Joe Biden, French President Emmanuel Macron and Ukrainian President Volodymyr Zelenskyy. Playing God: Generative Artificial Intelligence may not seem obvious territory for the Vatican, but the Catholic Church has taken an active interest in the rapidly developing field, publishing a non-binding set of principles, known as the Rome Call for AI Ethics in 2020, backed by the likes of Microsoft and IBM. Pope in the hood: Francis of course has personal experience of the perils of AI — who can forget the (fake) photo of the pontiff rockin a full-length white puffer coat that went viral last year, sparking a global debate about the challenges of AI? G7 role: The papal address is expected to focus on the ethics of artificial intelligence. The rapidly developing technology has increasingly become part of the G7’s remit, with leaders signing up to the Hiroshima AI Process last year and digital ministers agreeing in March to work together to find ways for firms in each country to adopt AI. What to expect today: POLITICO’s Gian Volpicelli was hot off the press Thursday with news that the G7 is poised to create a label for companies committed to safely developing artificial intelligence tools — a key focus for Italy as it seeks to encourage businesses to harness the power of AI. The group also aims to use AI to help broader development goals, particularly in Africa, POLITICO's Mark Scott and Gian write. UKRAINE BREAKTHROUGH FROZEN ASSETS DEAL: After months of deliberations, the G7 agreed a deal to use the profits generated by frozen Russian assets to help Ukraine, Barbara Moens, Gregorio Sorgi and Clea Caulcutt report. The United States has agreed to underwrite the risk associated with the $50 billion loan, with the finer details being kicked back to the EU level for discussion. What it means: It's a political breakthrough after months of division between Europe and the United States about the legality of using Russian assets to help Ukraine. It also gives a badly needed cash line to Kyiv as another crunch looms. Zelenskyy's security wins: The Ukrainian president can also boast two bilateral deals signed at the G7: a 10-year security agreement with the U.S. which will ensure help will keep flowing even in the event of a personnel change in the White House, and a multi-billion dollar, 10-year package for Ukraine courtesy of Japan. Just don't mention Trump: At a press conference last night with Biden, Zelenskyy said it was a "historic day," adding "I am grateful to America, to all Americans." But he wouldn't get dragged into speculation about the return of Donald Trump, or indeed a changing of the guard in any G7 country. "No matter whom the nation chooses ... if the people are with us, any leader will be with us in this struggle for freedom," he said. BUSINESS CONTINGENT: While the G7 is primarily a political forum, there's a smattering of business folks in town. Among those attending Thursday's Global Infrastructure and Investment event — the U.S.-backed initiative which focuses on infrastructure projects in developing economies — were: Larry Fink of BlackRock, Microsoft boss Satya Nadella, CEO of SACE Alessandra Ricci, ENI chief Claudio Descalzi, ENEL boss Flavio Cattaneo and Dario Scannapieco, CEO of Cassa Depositi e Prestiti. TROUBLE ON THE HOME FRONT DOMESTIC WOES: As flagged in Thursday’s Global Playbook, a contingent of G7 leaders have their minds elsewhere as they face electoral headaches at home, with Joe Biden, Emmanuel Macron and Rishi Sunak all in the throes of election campaigns. But they’re not the only ones. ARGENTINIANS TAKE TO THE STREETS: Argentina's President Javier Milei is today due to hold a series of bilaterals on the G7 sidelines, including with IMF chief Kristalina Georgieva, as protests against his reforms engulf Buenos Aires. Authorities deployed tear gas and water cannon to disperse demonstrators who took to the streets after Argentina's senate voted for the first set of austerity measures proposed by the libertarian leader. MIDDLE EAST ALARM: Worry about spillover from the Israel-Hamas war was also high on minds Thursday, with U.S. officials sounding the alarm about tensions with Hezbollah at the Lebanese-Israeli border ahead of a session on the Middle East. “We are very concerned about the escalation on the blue line between Israel and Lebanon,” a senior administration official said Thursday, adding that over the past two weeks, "we've seen the major escalation." EU TOP JOBS LATEST: As expected, the body language between European Commission chief Ursula von der Leyen and European Council President Charles Michel was pretty awkward as both found themselves at the same end of the table at the opening G7 session on Thursday morning. Things can only get worse: Barbara Moens and Jacopo Barigazzi scoop that Michel has come up with a new plan to thwart von der Leyen’s plan for a second term at the helm of the Commission. Although the post is hers for the taking, Michel is suggesting alternatives to EU leaders. His pick: Greek Prime Minister Kyriakos Mitsotakis (in combination with Danish Prime Minister Mette Frederiksen as European Council president). Never mind that Mitsotakis has repeatedly ruled out seeking a job in Brussels. EVEN MORE AWKWARD: Canadian Prime Minister Justin Trudeau will come face to face with Indian Prime Minister Narendra Modi today for the first time since the arrest of Indian nationals over last year's killing of Canadian citizen Hardeep Singh Nijjar. Trudeau has accused the Indian government of involvement in the assassination. India is not happy. PUGLIA NOTES WEATHER: 26C/78F and sunny. YIKES: While the G7-plus are ensconced in luxury at the exclusive Borgo Egnazia resort, authorities impounded a rundown cruise ship where thousands of police officers assigned to cover security for the summit were being housed. They moved in after reports of unsanitary conditions, with officers moved to local hotels. HOW THE OTHER HALF LIVE: Our Paris reporter Clea Caulcutt described the scene at the Borgo Egnazia on Thursday, where waiters wafted in and out of rooms with a dizzying array of delicacies, including fine apricot sablé cookies, crushed tomato bruschetta and succulent fresh fruit. The muted décor dripped of luxury and excess — including an ornate construction made of golf clubs astride an antique fireplace. Sadly, the hotel’s Turkish baths were closed. FAMILY PHOTO: Italian PM Giorgia Meloni, the G7 host, and EU Commission chief von der Leyen arrived in matching blush-pink jackets, adding a dash of color to the family photo. Yet again, a top international gathering is dominated by men, with Meloni and von der Leyen — arguably the two most-powerful figures in Europe at the moment — the only two women in the nine-person line-up. MERCH ALERT: It’s not all drudgery for the hundreds of journalists covering the summit. On arrival, reporters were presented with a branded G7 ITALIA laptop case containing that classic Italian combination: a bottle of local extra virgin olive oil and a stylish pouch for computer cables. A complimentary wireless charger has also come in handy, given the erratic Wi-Fi coverage at the venue. Burrata heaven: Eager to promote the culinary delights of southeast Italy, the hosts treated journalists to an array of local produce at the press center, including live stracciatella-making sessions and a wide range of olive oils and balsamic vinegars. Free wine tasting was also on offer — permitted per the Mediterranean diet, we were assured. AGENDA — 9:30 a.m. Session 4: Migration — 11:30 a.m. Session 5: Indo-Pacific and Economic Security — 1:30 p.m. Pope Francis arrives — 2 p.m. Session 6: Artificial Intelligence, Energy, Africa- Mediterranean — 6:45 p.m. Closing session and signing of communiqué THANKS TO: Clea Caulcutt and Barbara Moens. Global Playbook couldn't happen without Global Playbook editor Zoya Sheftalovich. | 
