Good morning from the Financial Times, today is Wednesday, April 16th, and this is your FT News Briefing.
NVIDIA is expecting to get hit hard by new U.S. export controls, and investors are turning up their noses at junk bonds.
Plus, India's middle class is dealing with the debt crisis, and things are getting ugly.
I'm Kashel Bersalian, and here's the news you need to start your day.
NVIDIA thinks it'll face a five and a half billion dollar blow because of new export requirements.
In a regulatory filing on Tuesday,
the U.S. chipmaker said it now needs a special license in order to sell its popular H20 chips to customers in China.
That's because Washington is worried that these kinds of chips might end up getting used in a supercomputer.
This is just the latest move by the Trump administration to use tariffs and trade barriers to put pressure on Beijing.
The H20 was introduced last year as a less powerful version of NVIDIA's AI chips,
but they've been in high demand in China.
NVIDIA's share price fell as much as 6 percent in after-hours trading.
The junk bond market in the U.S. is on shaky ground.
I'm talking about the debt of lower-rated, riskier companies.
There hasn't been a ton of appetite for it ever since President Donald Trump kicked off his trade war.
That could have some big implications for private equity.
The FT's U.S. investment editor, Eric Platt, joins me now to talk about it.
Hey, Eric.
Hey.
So just give me a lay of the land here.