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FirstFT: Qualcomm wants to invest in Arm alongside rivals in upcoming IPO

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US chipmaker Qualcomm wants to take a stake in Arm alongside its rivals and create a consortium that would keep the British chipmaker neutral in the highly competitive semiconductor market.

Japanese conglomerate SoftBank plans to list Arm on the New York Stock Exchange after the collapse of Nvidia’s $66 billion purchase this year. However, the IPO has raised concerns about the future ownership of the company, given its crucial role in the global technology sector.

“It’s a very important asset and it’s an asset that is going to be essential to the development of our industry,” Cristiano Amon, chief executive of Qualcomm, told the Financial Times.

He added that Qualcomm, one of Arm’s biggest customers, could team up with other chipmakers to buy Arm outright if the consortium making the purchase was “big enough”. Such a move could allay concerns about corporate control over Arm after the upcoming IPO.

UK-headquartered Arm was listed in London and New York before SoftBank acquired it for £24.6 billion in 2016. Some UK politicians have called on the government to buy “stock privileged” which would recognize the role of business as a crucial strategic national asset.

Thank you for reading FirstFT Europe/Africa. Here’s the rest of today’s news — Jennifer

1. EU leaders agree to ban majority of Russian oil imports The deal, which was reached at a summit in Brussels yesterday, will include oil and petroleum products but temporarily exempt crude delivered by pipeline to Hungary, Slovakia and the Czech Republic as leaders seek to punish Vladimir Putin for his war against Ukraine.

2. Banks warn of ‘gloomy’ outlook for the pound A duo of Wall Street lenders have warned of a “gloomy” outlook for the British currency, predicting that stubbornly high inflation and an economic slowdown will drive further declines. The pound is trading near its lowest level since early 2021 against a basket of currencies from the UK’s trading partners.

3. France apologize for Champions League chaos France apologized for the botched security that marred the final in Paris on Saturday, but differences over who was responsible risked turning into a diplomatic row after Downing Street called the scenes “deeply upsetting and concerning”.

4. Leaders are “buying the dip” at a rate not seen since the start of Covid Insider buying this month was the strongest since March 2020, which some Wall Street analysts called an encouraging sign for the U.S. stock market.

  • What does it mean? “Insiders are saying ‘we don’t see a massive event coming’ . . .[that]these are very good buying opportunities,” said David Giroux, portfolio manager at T Rowe Price. US stocks rebounded from a seven-week losing streak on Friday.

5. UK to water down audit and board reforms Ministers bowed to pressure to water down planned reviews, which are due to be unveiled today, dropping a proposal requiring directors to approve companies’ internal controls and reducing the number of companies subject to the toughest requirements. Plans to make directors personally responsible for internal controls over financial reporting were also dropped.

What do you think of the changes? Do the reforms go far enough? Let us know at [email protected] and we can submit your response.

The day ahead

The World Trade Organization meets The group’s dispute settlement body will hold its monthly meeting, during which it is expected to discuss the impact of Russia’s war in Ukraine on the rebound in global trade.

Economic data Eurozone inflation is expected to peak at 7.7% in May, nearly four times the European Central Bank’s 2% target. France, Italy and Switzerland release first quarter gross domestic product figures and France and Italy release flash consumer price indices for May. Germany has unemployment data for the same month. More here.

Julian Assange extradition deadline British Home Secretary Priti Patel is to decide whether or not to extradite the WikiLeaks founder to the United States, where he faces life in prison for publishing military and diplomatic records.

business profits UK retailer B&M and water company Pennon Group publish their annual results. US technology company HP made a profit in the second quarter.

Join the FT for The Global Boardroom June 7-9, featuring US Secretary of Commerce Gina Raimondo, Bank of Japan Governor Haruhiko Kuroda, former Google CEO Eric Schmidt and more. Join for free today.

What else we read and watch

The unraveling Russian economy Western sanctions aimed at isolating the Kremlin over its war in Ukraine have changed little on Russian streets, but signs of tension are emerging with shops closed, supply chains disrupted and job vacancies drying up despite Vladimir Putin’s efforts to protect the country.

A wage-price spiral in the UK is unlikely Are we back to the 1970s? Britain’s 21st century labor market is far more individualistic than it was the last time the country faced high inflation, and the unions that negotiated these wage deals have shrunk in size and power, writes Sarah O’Connor.

We need a global vaccine compact Monkeypox first appeared in the United States and Europe, but has been present in West and Central Africa for decades. Remarkably, we have a vaccine that can protect against this, but there have been no attempts by the private or public sector to deploy it because of how we prioritize the health of Western countries, writes Nina Schwalbe of the Mailman School of Public Health at Columbia.

How tech companies are banking on the metaverse The $201 billion gaming industry – twice the size of the film industry – has become a battleground as tech leaders vie to create the next iteration of the internet. The FT explores how gaming has become so important and whether it can truly be the gateway to this new world.

Video: Game on: how tech companies are betting on the metaverse | FT Movie

The Rich World’s Fertility Problem Rich nations can produce more of everything they need except people. For a stable population, the average family must have 2.1 children: two to replace them, with “0.1” more to compensate for those who will not have any. But if wealthy states can’t increase their birth rates, they can attract migrants.

Travel

Super chef Adam Handling perfectly blends sustainability and luxury at his first business outside of London, The Loch & The Tyne in Old Windsor, Berkshire, a country inn with five-star cuisine and superb rooms.

Windsor Great Park Deer

The venue is the latest venture and first outside London of chef Adam Handling, a longtime advocate of sustainable practices in the culinary world © Shutterstock/Guy Arnel

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