Chips, Credit, and China

Good Morning,

Trump hopes AI CEOs know what they're doing as they take over the world, the Bank of England held rates at 4% while slowing quantitative tightening, private credit firms are targeting public companies as Blackstone sees tight spreads fueling a boom, Nvidia offered $900 million to hire Enfabrica CEO Rochan Sankar, and K&L Gates becomes the ninth international law firm to close its Beijing office this year.

Before we dive in, let’s see what it all means.

Trump's simultaneous push for AI dominance and Fed control signals a tech-centric economic strategy with direct monetary oversight. Escalating U.S.-China frictions are accelerating a Biglaw exodus from mainland China, forcing firms to reallocate talent toward stable U.S. transactional and regulatory hubs like DC and New York—signaling a broader pivot to domestic energy and VC deals. The wave of international law firm exits from China reflects deeper geopolitical tensions, while private credit's shift toward public companies indicates traditional financing channels are under pressure as firms chase yield in compressed markets.

The Bank of England kept rates at 4% and will slow QT, while foreign holdings of U.S. Treasuries hit another high and U.S. corporate bond sales jumped after the Fed rate cut; Asia saw its first monthly foreign inflow to bonds in three months. Private credit firms are targeting public companies, and Blackstone sees tight spreads fueling the boom, as Man Group leans into ETFs that bring hedge-fund trades to the mass market and PIMCO’s Texas move takes credit fights into munis. Quant traders offered India interns about $14k per month.

Policy and politics stayed active: Trump said he hopes AI chiefs “know what they’re doing” and floated antitrust in his AI plan, while asking the Supreme Court to let him fire Fed Governor Lisa Cook. The U.S. is also weighing a sovereign-wealth-fund-backed manufacturing boost.

In tech and chips, the U.S. stake in Intel is now worth $13B after the Nvidia deal. Nvidia reportedly offered $900M to recruit Enfabrica CEO Rochan Sankar. Google added Gemini to Chrome after sidestepping a forced sale, while China dropped its Google antitrust probe amid trade talks and set a record for rare-earth product exports. Activist Cevian said Switzerland is “not viable” for UBS under new rules.

Corporate shifts: SoftBank’s Vision Fund will cut about 20% of staff as it pivots to AI, and the SoftBank–OpenAI Japan JV is delayed. Carlyle hired two senior executives to push deeper into private credit. Meta unveiled new Meta Ray-Ban display glasses for $799. JPMorgan Private Bank can now help clients line up a private jet or butler.

The U.S. Supreme Court will hear Trump’s tariffs case on November 5, and the administration asked the Court to permit the firing of Fed Governor Lisa Cook.

The FTC and seven states sued Live Nation and Ticketmaster, alleging the companies allowed brokers to capture millions of tickets and resell at markups.

Meta Platforms’ former COO Sheryl Sandberg asked a court to avoid testifying in next month’s San Francisco trial in which advertisers seek billions from the company.

Moderna resolved lawsuits alleging misuse of Alnylam Pharmaceuticals technology in COVID-19 vaccines.

Capital One settled a case brought by creators who said a popular discount-finding browser extension diverted their affiliate commissions.

K&L Gates will close its Beijing office and offer severance, becoming the ninth international firm to exit mainland China this year.

Ropes & Gray added M&A partner Michael Brueck in New York from Kirkland & Ellis, continuing its transactional build-out.

Morgan Lewis, Jones Day, Vinson & Elkins, and Brownstein added lawyers in Washington, D.C., across energy, consumer financial services, and public policy.

In China, more than 65% of the top 45 firms saw revenue decline in 2024, yet top practices are recruiting international talent, leaning into Hong Kong activity, and expanding abroad.