Nvidia chief criticises US government chip policy

Good morning and welcome back to FirstFT. Today I’ll be covering:

• Nvidia’s condemnation of US chip export controls

• Plans to open up US retirement funds to private equity

• The “death camp” uncovered by a search group in Mexico

• And why Rome is frustrating Italian Americans

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Good morning. Nvidia’s chief executive Jensen Huang has called US export controls on chips a “failure” that has turbocharged rivals in China to develop their own competitive artificial intelligence hardware.

What did Huang say? “Chinese AI researchers will use their own chips,” Huang said at a news conference in Taipei. “They will use the second best. Local companies are very determined, and export controls gave them the spirit, and government support accelerated their development.”

Why it matters: In a move to curb the global spread of Chinese technology, the Biden and Trump administrations have put in place rules to restrict the flow of advanced chips from the US to China. Huang’s comments suggest the attempts have backfired. Instead they have spurred Chinese rivals to speed up development of their own products.

We have more details on how the chipmaker is grappling with competition from Beijing here.

Here’s what else we’re keeping tabs on today:

• US Steel: A national security review of Nippon Steel’s bid is about to be concluded. The Japanese group has quadrupled its investment pledge in the American steelmaker in a push to gain approval.

• EU-Africa ties: Foreign ministers from the bloc and the African Union meet in Brussels.

• Results: Lowe’s, Target, Canada Goose, TJX and Baidu report earnings.

The FT’s Climate & Impact Summit starts today. Hear from chief executives, politicians and other industry leaders as they discuss innovation and investment in global sustainability. Register now.

Five more top stories

1. Joe Biden’s cancer diagnosis has sparked attacks from some Republicans, who have used it to scrutinise the former president’s fitness for office. His diagnosis has generated some bipartisan sympathy but has also led to accusations that the Democrats were complicit in a cover-up while he was in power.

2. Exclusive: Trump is weighing whether to open the nearly $9tn US retirement market to private equity through an executive order. Sources familiar with the talks said the order would instruct government agencies to study the feasibility of opening 401k plans, a primary vehicle for US retirement savings, to the private funds.

3. IMF official Gita Gopinath has urged the US to tackle its “ever-increasing” debt burden, amid concerns about the Trump administration’s tax cut plans. The comments come days after Moody’s stripped the US of its triple A credit rating because of concerns about the fiscal deficit.

4. Marco Rubio, US secretary of state, has said Russia will face fresh sanctions if there is no progress on a peace deal with Ukraine. He denied that Washington was tempering its military support for Kyiv. Rubio, speaking in the Senate, defended Trump’s phone call with Vladimir Putin, saying Russia’s leader “hasn’t got a single concession”.

• Ukraine talks: European capitals have launched a flurry of diplomatic efforts to convince the Trump administration to resume a ceasefire push.

• The FT View: If the US president is walking away from Ukraine, other allies must step up, writes our editorial board.

5. A search group has found a ‘death camp’ run by a drug cartel in Mexico. Authorities said corpses were still burning. The discovery has renewed pressure on President Claudia Sheinbaum to tackle a 20-year battle with the country’s prolific narcotics cartels that has left 120,000 people missing.

News in-depth

A market in the Feiyang Times building, a tower in southern China, sells second-hand smartphones from Europe and the US. But it also sits at a location that Apple community message boards, social media commenters and victims of phone theft have identified as China’s “stolen iPhone building”. The Financial Times tracks the roaring trade of mobiles snatched in London and New York then sold in a single district in Shenzhen.

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• Animal speech: If they could talk, would we listen? A prize aimed at cracking inter-species communication could change our views about the welfare of other creatures, writes Anjana Ahuja.

Chart of the day

The dominance of the dollar, the leading currency for a century, is coming into question. Yet those who wish to diversify away lack a compelling alternative, writes Martin Wolf. So what, if anything, might replace its hegemony?

Take a break from the news

What distinguishes the finest airport lounges? Frequent flyer Andrew Jones has criss-crossed the world to find the answer. Sweeping architecture, shoeshines and “a sense of the journey that awaits you” are some of the things to look out for. For the rest, you’ll have to read his trusty guide.