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Forward of a state go to by President Yoon Suk Yeol to Washington as we speak, the White Home has requested South Korea to urge its chipmakers to not enhance gross sales to China ought to Beijing ban Micron from promoting chips, individuals accustomed to the state of affairs mentioned.

China this month launched a nationwide safety evaluate into US-based Micron, certainly one of three dominant gamers within the world Dram reminiscence chip market alongside South Korea’s Samsung Electronics and SK Hynix. US officers and enterprise executives consider that is retaliation for President Joe Biden’s strikes to stop China from acquiring or making superior semiconductors.

It’s unclear whether or not punitive motion can be taken after the probe, however with mainland China and Hong Kong producing 25 per cent of its $30.8bn in income final yr, the stakes are excessive for Micron.

The case has emerged as a litmus check of whether or not Beijing is prepared to take coercive financial measures in opposition to a significant US firm for the primary time. Whereas the US has labored with allies to counter China within the safety space within the Indo-Pacific, that is the primary recognized event that it has requested an ally to enlist its firms to play a task.

Right here’s what else I’m retaining tabs on as we speak:

  • Outcomes: Troubled lenders Credit score Suisse and First Republic Financial institution report, as will The Coca-Cola Firm, Philips and Vivendi.

  • EU assembly: The bloc’s Overseas Affairs Council meets in Luxembourg to debate Russia’s struggle on Ukraine.

  • Financial knowledge: Ifo has its enterprise local weather index for Germany and Rightmove publishes its home value index for the UK.

5 extra prime tales

1. EXCLUSIVE: Santander is in talks to rent a number of of Credit score Suisse’s prime funding bankers in New York, in accordance with individuals accustomed to the matter, because it seeks to capitalise on the Swiss lender’s emergency rescue by UBS. Discover out which bankers the Spanish group has spoken to.

2. Buyers are underestimating how excessive eurozone borrowing prices will rise, the pinnacle of Belgium’s central financial institution instructed the Monetary Occasions. Pierre Wunsch, who sits on the European Central Financial institution’s rate-setting council, mentioned he would comply with halt rate of interest rises provided that wage progress slowed.

3. More durable UK laws on office sexual harassment is ready to be shelved after a flurry of amendments from Conservative friends stymied its progress by means of parliament. Teams that urged ministers to prioritise the long-awaited laws within the wake of the CBI rape allegations have accused the friends of looking for to “wreck” the invoice.

4. Jeff Shell will step down as NBCUniversal chief govt after an “inappropriate relationship” with a feminine colleague, mum or dad firm Comcast mentioned yesterday. A criticism had prompted an investigation led by outdoors counsel into the 19-year veteran of the corporate.

5. US president Joe Biden’s Inflation Discount Act may very well complicate efforts to scale back inflation, critics starting from Financial institution of America to BlackRock’s Larry Fink have warned, although it has sparked an funding growth. Right here’s why the dimensions of the federal handouts is inflicting fear.

The Massive Learn

© FT montage/Bloomberg

The weeks since Silicon Valley Financial institution collapsed on March 10 have introduced an uncomfortable realisation — the issues that provoked the largest financial institution run in historical past had been neither a freak incidence nor an unforeseeable emergency. Forward of the primary official postmortem on its failure, virtually everybody agrees that the disaster had been hiding in plain sight.

We’re additionally studying . . . 

Chart of the day

Expertise companies drove revenue warnings by UK-listed firms within the first quarter to their highest for the interval because the onset of the Covid-19 pandemic in 2020, as financial uncertainty led to delayed and cancelled contracts.

Line chart of number of quarterly profit warnings  showing profit warnings surged in the tech and telecom sector

Take a break from the information

On the Weekend podcast, presenter Lilah Raptopoulos speaks to Pulitzer Prize-winning playwright Suzan-Lori Parks about her new present Performs for the Plague Yr, which asks us to recollect, course of and grieve the pandemic.

Further contributions by Annie Jonas and Emily Goldberg

Asset Administration — Discover out the within story of the movers and shakers behind a multitrillion-dollar trade. Join right here

The Week Forward — Begin each week with a preview of what’s on the agenda. Join right here

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