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FirstFT: US senators step up pressure on Apple

This article is a local version of our FirstFT newsletter. Subscribe to our Asia, Europe/Africa or Americas version to receive it straight to your inbox every weekday morning.

Good morning. US senators have asked the intelligence community to look into the threat a potential deal between Apple and Chinese chip maker Yangtze Memory Technologies Co poses to national security as political pressure on the iPhone maker mounts over the deal.

Mark Warner, Democratic Senate Intelligence Committee Chairman, and Republican Vice Chairman Marco Rubio wrote to Director of National Intelligence Avril Haynes asking for a reconsideration just days after the Financial Times reported that Apple was considering buying chips memory from YMTC for the new iPhone. fourteen.

“We are writing to express our extreme concern over the possibility that Apple Inc will soon purchase 3D Nand memory chips from Yangtze Memory Technologies Co,” the senators said. “Such a decision would introduce significant privacy and security vulnerabilities in the global digital supply chain that Apple is helping shape, given YMTC’s extensive but often opaque ties to the Chinese Communist Party.”

Apple recently told the FT that it is “evaluating” the YMTC source for some iPhones in China. The American technology company declined to comment yesterday on Haynes’ letter, which was also signed by Senate Democratic Majority Leader Chuck Schumer and Texas Republican John Cornyn.

Thank you for all the answers to yesterday’s question about raising the Federal Reserve’s interest rate. Please keep sending them in so I can feature them in a future issue of FirstFT Americas. Here’s the rest of the day’s news – Gordon

1. Tax Cuts by the British Chancellor in the growth budget In his first financial report as Chancellor, Kwasi Kwarteng lowered the UK’s top tax rate as part of a package to boost economic growth. The cost of borrowing for the UK government soared after the announcement and the pound fell to a new 37-year low against the dollar. This is an evolving story. For updates go to our live blog.

Kwasi Kwarteng presents his mini-budget

Kwasi Kwarteng presents his mini-budget © Parliament TV

2. Hong Kong lifts quarantine measures Hong Kong must end its strict hotel quarantine measures for incoming travelers that have been in place for two and a half years and undermined the city’s status as a financial hub. John Lee, the city’s chief executive, said the quarantine requirement would be lifted from Monday, but travelers would be tested and monitored for three days after landing.

3. Sergey Lavrov trades barbs with Western officials at the UN Security Council Russia’s foreign minister spoke out yesterday against Western powers at the UN Security Council, defending an invasion of Ukraine after his US counterpart said Moscow had “destroyed” international norms. Meanwhile, hawkish EU states such as Poland and the Baltic states are pushing for tougher sanctions against Moscow in response to Vladimir Putin’s escalation of tensions this week.

  • “Everyone will be grabbed from the street”: The Financial Times spoke to people who have been drafted into the Russian army, fearing they will soon be drafted or their close relatives are at risk of being drafted into the military.

4. Boeing to pay $200 million fine for misleading investors about 737 Max The aerospace manufacturer and its former chief executive Dennis Muilenburg have agreed to pay millions of dollars to settle allegations by the US Securities and Exchange Commission of misleading investors in connection with two fatal 737 Max aircraft crashes.

5. Death toll rises to 26 as Iran cracks down on protests The death toll in protests in Iran following the death of 22-year-old Mahsa Amini has risen to 26, according to AP, citing Iranian state television. Amini died a week ago after being arrested by vice police for allegedly violating an Islamic dress code. countries. The US Treasury Department yesterday sanctioned the vice police, saying they were responsible for Amini’s death.

Have you been following the news this week? Take our quiz.

Days ahead

US manufacturing and services US manufacturing and service sector activity data is expected to remain relatively weak, according to S&P Global. The Manufacturing Purchasing Managers’ Index is forecast to fall to 51.1 in September from a final reading of 51.5 in August. Readings above 50 mean the sector is expanding. S&P Global Services Fast PMI is expected to rise to 45 in September from 43.7 last month.

Retail sales in Canada Further clues about the domestic economy and the health of the Canadian consumer should be provided in the latest retail sales data. Sales are expected to fall in July for the first time in seven months, with economists polled by Refinitiv forecasting a 2% month-on-month drop.

Federal Reserve The US Federal Reserve Board will review the real economic impact of its decisions at its latest “Fed Listens” meeting. The event will bring together a variety of stakeholders to share how the Covid-19 pandemic has changed the economy and what challenges lie ahead as the country transitions to a post-pandemic economy.

Referenda in Russian-occupied Ukraine Voting in what NATO has condemned as “bogus referendums” is starting in four eastern and southern regions of Ukraine. Moscow-controlled areas of the Donetsk and Luhansk People’s Republics, as well as Kherson and parts of Zaporizhzhya regions, will vote on whether they join Russia in a hastily orchestrated vote starting today and ending on Tuesday.

General elections in Italy Potential Italian Prime Minister Giorgia Meloni vowed to restore Italians’ “pride” and ensure five years of strong government in a rare joint speech last night with her right-wing partners ahead of Sunday’s general election. Subscribers can sign up for a virtual briefing on Tuesday with FT journalists following the election results.

Join the Financial Times in partnership with Ignites and FundFire on September 28-29 at our Future of Asset Management North America Summit in Westin Times Square and online. Connect and connect with leading North American wealth and asset management firms including Oaktree Capital Management, Russell Investments, JPMorgan and more to learn about the strategies that will differentiate tomorrow’s wealth managers. Book your pass today.

What else do we read

Why business leaders shouldn’t become cult figures We are fascinated by corporate leadership. But does this obsession come at the expense of corporate governance, ensuring control of any individual’s power, and differing opinions at the board table? Adored leaders risk getting bogged down in money, fame, and power.

Montage of Mark Zuckerberg, Elon Musk and Jeff Bezos

Andrew Edgecliff-Johnson: Structures are needed to prevent CEOs from believing in sycophants or staying too long © FT montage/Dreamstime/AFP/Getty Images

How JPMorgan’s plan to destroy credit cards split the bank JPMorgan is developing a new challenge for credit cards. But the pay-by-bank project has divided powerful interest groups within the bank, forcing CEO Jamie Dimon to dictate to his quarreling executives.

How much money will actually make you happy? We all have fantasies about how much we need to be satisfied, but it doesn’t have to be a fortune. The real problem is that if you become a multi-billionaire, it will change your relationship with everyone else. Tim Harford considers how much everyone really needs.

Why Trade Can’t Buy Peace In recent decades, politicians and business leaders have almost come to the consensus that the world is the natural state of the developed world and that globalization is not subject to geopolitical risks. But as the war in Ukraine and tensions over Taiwan have shown, writes John Plender, they were wrong.

Five things the tech bubble did right As tech entrepreneur Paul Graham wrote after the first dot-com crash, stock market investors were right about the direction of the move, even if they were wrong about the speed of the move. John Thornhill revisits the idea as investors scour the wreckage of specialty acquisition companies.

Books

The six titles nominated for the FT’s 2022 Business Book of the Year award address “some of the most complex and important issues facing global capitalism,” said Rula Khalaf, FT Editor and Jury Chair. See which titles made the shortlist.

shattered times – Documenting business and economic changes between Covid and conflict. Sign here

Asset Management Subscribe here for the inside story behind the driving forces behind a multi-trillion dollar industry.

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