The most important news of the day

• The US Federal Reserve announces decision on the interest rates at 2pm EST / 7pm London time today – check back FT.com For details and feedback. US stocks and bonds rose yesterday after new data showed consumer prices rose in the US 7.1 percent in Novemberdown from 7.7 percent in the previous month and the slowest rate in a year.

• New data also showed today UK inflation slows, falling to 10.7 percent from a 41-year high in October of 11.1 percent. The news will be greeted by BoE policy makers who make their interest rate decision tomorrow.

• Crypto entrepreneur Sam Bankman-Fried has been charged in one of the “The biggest financial fraudIn the history of the United States after that Captured in the Bahamas. investors have Withdraw over $1 billion from Binance Amid fears that the world’s largest cryptocurrency exchange could be dragged into chaos.

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Good evening.

Today we’re reporting on US moves to place more semiconductor manufacturers in China Trade blacklist In the latest escalation of tensions around critical components for a wide range of industrial sectors, from electronics to… the cars.

It comes two months after the US reveal Strict export controls That made it difficult for China to obtain and produce the latest semiconductors, even from British companies such as an arm. Beijing responded this week before raise the dispute with the World Trade Organization.

The political tensions come on the heels of a prolonged semiconductor shortage during the pandemic, which has prompted an intensification of efforts by the United States and Europe To build their own production capacity.

The Joe Biden Chips and Science Act, passed this summer, provides $52 billion in subsidies to US chipmakers in an effort to counter China’s massive investment in its chip sector. Both Biden and Apple chief Tim Cook welcomed the latter Three times the investment in the Arizona facilities of Taiwanese TSMC, the world’s largest contract chip maker and sole manufacturer of chips used in iPhones.

TSMC’s $40 billion is one of the largest foreign direct investments in US history and provides a boost to Apple, which had to shelve plans to use chips from China. Yangtze memory techniques Because of the Washington campaign.

Meanwhile, Chinese companies such as Alibaba, which also relies on TSMC, are having to tweak their chip designs. Reduce processing speeds to avoid US sanctions. They are doing this after spending years, and millions of dollars, creating blueprints for the nation’s next generation of supercomputers, artificial intelligence algorithms, and data centers.

Growing concerns about Chinese interference in Taiwan have further complicated matters. The US and Europe need more onshore production capacity while not economically weakening Taiwan, which, says the US-Taiwan Business Council president, will It offers China one of its primary goals.

Meanwhile, the new US controls will not only hurt China’s chipmakers, but also increase inflationary pressures on many products.

Latest program “Big Read” It puts the current conflict in context. “The stakes are high,” the book says. “Bullshit over chips is a proxy for a broader geopolitical confrontation between an old and a new superpower. But it may also reflect the conviction in the United States that China is catching up too quickly for comfort.”

The Chip War, an account of the decades-long struggle to control microchip technology, won the FT Business Book of the Year award. Could you Read our review here.

Need to know: UK and European economy

The European Commission is pressing for relaxation in the European Union state aid rules For the beginning of 2023 in response to The US Inflation Reduction Act of $369 billion. Commission chairwoman Ursula von der Leyen said she planned to “adjust” state aid rules for “a few years” because the IRA risked “disqualifying the level playing field”.

industrial production in Euro-zone decreased by 2 percent in October compared to September amid higher energy prices and supply chain disruptions. Some energy-intensive manufacturers have had to cut or even stop production in Europe.

our Great read Multiplication details for Russian economy from Western sanctions. Supply chains have been broken leaving many companies scrambling to get products and parts through underground channels.

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Need to know: The global economy

China will Stop counting asymptomatic Covid-19 cases But accelerating vaccinations after testing requirements were drastically reduced and testing facilities closed. Hong Kong I got rid of the Covid tracing app and Travelers are prohibited from visiting bars.

The dispute exists oil exports of the Black Sea ports of Russia Solved. Tankers were forced to disembark near the Bosphorus and Dardanelles after Turkey demanded a new proof of insurance in response to Western sanctions over Russian oil.

Ghana has agreed to a preliminary deal on A $3 billion loan from the International Monetary Fund To help stabilize its finances and bring it closer to an agreement with its creditors. The country’s economy has been hit by the effects of the war in Ukraine and its over-reliance on commodity products such as gold, cocoa, and oil.

Need to know: business

tuiEurope’s largest tourism company has agreed to pay another €730m in Covid-19 aid to the German government as its annual revenues return to levels close to pre-pandemic levels, after survived the “existential crisis”. In another sign of confidence in the future of air travel, United Airlines Apply for 100 Boeing widebody aircraft.

inditex, The global fashion group and owner of the Zara chain, stated that 11 percent increase in quarterly sales But earnings growth is more limited as its costs rise. The company insisted that China remained a “core” market despite Covid restrictions that had seriously affected consumption.

checkout.com, Europe’s most valuable private technology company, It lowered its internal valuation to about $11 billionbecoming the latest high-flying startup forced to respond to technology trend and waning investor sentiment.

Banks, trading companies and brokers are preparing for the largest overhaul of Trade US stocks In nearly two decades with the publication of plans designed for Lower costs for small investors.

UK company fails it is expected that Past the post-financial crisis peak of 2009. In contrast to that time, companies also have to contend with rising interest rates, which makes it more difficult to survive.

world of work

UK private sector wage growth far The numbers outnumbered the public sector In October, it was up 6.9 percent compared to 2.7 percent for the public domain, one of the largest gaps ever. Delphine Strauss examines whether the government claims it You can not afford to increase the public sector actually pay a heap.

Executive salaryHowever, the rally continues, with accusations that leaders can get distracted by employee and consumer concerns. our Moral money forum Discuss what can be done.

As in the United Kingdom, France Struggling to keep it Older workers in the labor market. President Emmanuel Macron is preparing a bill to raise the minimum retirement age to 65 from 62, a proposal very unpopular with unions.

Some good news

New treatment helps kill Bone marrow cancer Successful in 73 percent of patients in two clinical trials, the American Society of Hematology announce. The treatment, called Talquetamab, has been tested in patients with multiple myeloma since 2018 and has been successful in people whose cancer has resisted other approved therapies.

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