FBI investigates China-backed VC fund

Good morning. In at the moment’s publication:

• The ‘soap opera’ derailing Australian central financial institution reform

• Younger Indians rack up bank card debt

• The FT’s US Election Recreation

However first, the FBI is investigating whether or not a China-backed US enterprise capital fund handed commerce secrets and techniques to Beijing.

California-based Hone Capital, which launched in 2015 with $115mn of preliminary capital from a Chinese language non-public fairness group, invested in 360 US tech start-ups in lower than three years.

The fund turned one in every of Silicon Valley’s most prolific early buyers, constructing stakes in driverless-car maker Cruise, funds group Stripe and aerospace engineer Growth.

The FBI is inspecting whether or not Hone Capital accessed details about the expertise, funds or shoppers of start-ups for the good thing about its Beijing-based proprietor or Chinese language authorities, mentioned a number of individuals near the matter.

Right here’s what else we all know in regards to the probe, which comes as heightened geopolitical tensions between the US and China have rattled Silicon Valley’s enterprise trade.

And right here’s what else I’m maintaining tabs on at the moment:

• Financial information: Singapore publishes its newest industrial manufacturing index and Malaysia report PPI information for August. Ultimate second-quarter GDP information is due within the US.

• Japan: The Financial institution of Japan publishes its newest financial coverage assembly minutes.

• Ukraine chief in Washington: Volodymyr Zelenskyy will meet President Joe Biden on the White Home and current him with a “Victory Plan” that he says will pressure Russia to the negotiating desk.

5 extra prime tales

1. A political “soap opera” is threatening a once-in-a-generation reform of the Reserve Financial institution of Australia geared toward bettering the central financial institution’s much-criticised file on financial coverage after a post-pandemic inflation surge. The reform would set up a separate financial coverage board inside the RBA to resolve rates of interest. However the opposition Liberal social gathering, which initially supported the plan, has turned in opposition to it.

2. Younger Indians are racking up mortgage and bank card debt as they splurge on aspirational purchases from clothes to holidays, elevating considerations about rising delinquencies and a wider lending slowdown. A few third of millennials and 40 per cent of Gen Z Indians are submerged beneath unsustainable borrowings, based on Freed, an Indian debt decision platform.

3. Mira Murati, OpenAI’s chief expertise officer who briefly served as chief govt throughout the failed coup in opposition to founder Sam Altman, is leaving the corporate. It’s the newest blow to the Microsoft-backed synthetic intelligence start-up, which has had a number of high-profile departures this 12 months.

4. Vladimir Putin has issued a stark menace to Ukraine’s Nato allies, saying he would broaden Russia’s nuclear doctrine to doubtlessly cowl assaults in opposition to his nation utilizing superior western missiles. Putin’s threats had been a transparent message to Ukraine’s western allies because the US and UK contemplate letting Kyiv hit targets deep inside Russia with Storm Shadow missiles. Right here’s extra on Putin’s revised nuclear doctrine.

5. The US and France had been racing yesterday to safe a short lived truce between Israel and Hizbollah as Israel’s army chief advised troops to organize for a possible floor offensive in Lebanon. US President Joe Biden and his French counterpart Emmanuel Macron had been concerned within the diplomatic push on the UN Common Meeting in New York, based on individuals briefed on the scenario.

The Massive Learn

Within the years since its founding in 2009, Uber instigated a transport revolution, unfold its disruptive enterprise mannequin to a spread of sectors and have become one of many world’s most dear non-public tech corporations. On prime of ride-sharing and takeaways, Uber’s couriers now ship items for retailers, placing it in ever extra direct competitors with Amazon. Is it making an attempt to do an excessive amount of?

We’re additionally studying . . . 

• Hizbollah: The Iran-backed militant group won’t admit defeat, writes Kim Ghattas. However there’s a quick window for worldwide diplomacy to discover a face-saving method that might permit Hizbollah to face down.

• The top of the favored politician: A once-common sort is vanishing from the west. Janan Ganesh argues it’s a drawback of demand not provide.

• European competitiveness: The EU tech trade is dire. However the issue is not lack of cash, writes Martin Wolf.

Chart of the day

Chinese language markets have given a short-term welcome to an “unprecedented” toolbox promised by Beijing to stabilise capital markets and revive animal spirits. However the larger concern is whether or not the measures can be sufficient to stimulate the faltering actual financial system.

Take a break from the information

Are you able to mastermind a US presidential marketing campaign? Compete in opposition to different FT readers in the Election Recreation.

Extra contributions from Gordon Smith and Tee Zhuo