—— Nvidia Halts H20 Chip Production; Meta Hires Another Apple AI Executive; JPMorgan to Pay $330 Million to Malaysia to Settle 1MDB Claims; Novo Nordisk Slows Growth, Cuts Danish Employee Bonuses; US Mortgage Rates Hold Steady After Four Weeks of Declines; Powell Opens Door to September Rate Cut at Jackson Hole; Canada to Remove Some Retaliatory Tariffs on US Goods Ahead of USMCA Review
1. Nvidia Halts H20 Chip Production
Nvidia Corp. has ordered suppliers including Samsung Electronics Co. and Amkor Technology Inc. to suspend production related to its H20 AI chip, according to The Information. The move comes just days after Beijing urged domestic firms to avoid using the H20, particularly in government-related projects.
The H20, a downgraded AI accelerator designed specifically for the Chinese market, was meant to sidestep US export restrictions. However, both Nvidia and Advanced Micro Devices Inc. were recently cleared by Washington to resume lower-end AI chip sales to China, under the controversial condition that 15% of related revenue be handed over to the US government. Now, Chinese companies are facing pressure not to purchase those chips at all.
The suspension raises doubts over the fundamental demand for the H20, which competes with products from Chinese rivals such as Huawei Technologies Co. and Cambricon Technologies Corp. Cambricon’s shares surged as much as 20% on Friday, leading a broader rally among Chinese chip stocks, as investors bet on greater self-reliance.
The development underscores the intensifying tech rivalry between the US and China. While Washington seeks to maintain control over advanced semiconductor sales and even extract revenue from them, Beijing is pushing hard to accelerate its domestic AI chip industry and reduce dependence on US technology.
Bloomberg – Nvidia Asks Suppliers to Halt H20 Work, Information Says
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2. Meta Hires Another Apple AI Executive
Meta Platforms Inc. is hiring another key Apple artificial intelligence executive, even as the company prepares to slow overall recruitment, according to people familiar with the matter.
Frank Chu, who led Apple AI teams focused on cloud infrastructure, large language model operations, and training, will join Meta Superintelligence Labs (MSL). At Apple, he also worked on developing search features for the Siri voice assistant and entertainment services. Chu’s move makes him at least the sixth Apple AI models expert to defect to Meta, following the departure of Ruoming Pang, who created Apple’s models team and left in July with a $200 million pay package.
At Meta, Chu will join a new team called MSL Infra, responsible for building AI infrastructure. Earlier this week, Meta reorganized its AI division into four sections, all overseen by former Scale AI CEO Alexandr Wang.
The latest hire underscores Meta’s aggressive push to consolidate top AI talent as it commits hundreds of billions of dollars to achieving its long-term superintelligence vision.
Bloomberg – Meta Poaches Apple AI Executive Even as It Plans Hiring Slowdown
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3. JPMorgan to Pay $330 Million to Malaysia to Settle 1MDB Claims
JPMorgan Chase & Co. has agreed to pay 1.4 billion ringgit ($330 million) to Malaysia to resolve all existing and potential claims related to the scandal-ridden sovereign wealth fund 1MDB, effectively ending its exposure to one of the largest financial frauds in history.
The settlement, announced Friday, specifies that the bank will contribute the sum to Malaysia’s Assets Recovery Trust Account “without admission of liability.” The deal “resolves all existing and potential claims and binds both parties from any future claims or litigations related to 1MDB.”
Separately, Switzerland’s Attorney General fined JPMorgan’s Swiss unit 3 million Swiss francs ($3.7 million) for failing to take necessary organizational measures to prevent aggravated money laundering. Authorities said the fine related to 34 overseas transfers totaling about 174 million francs between October 2014 and July 2015.
For more than a decade, 1MDB has been at the center of a scandal involving over $4 billion in misappropriated funds, sparking investigations across continents and leading to the imprisonment of ex-Goldman Sachs bankers and a former Malaysian prime minister. Malaysian financier Jho Low remains a fugitive.
“We appreciate the collaboration with the Malaysian Government in resolving past matters related to 1MDB, which have been thoroughly reviewed,” JPMorgan said in a statement. “Since then, we’ve enhanced our controls.”
Bloomberg – JPMorgan to Pay $330 Million to Malaysia to Settle 1MDB Case
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4. Novo Nordisk Slows Growth, Cuts Danish Employee Bonuses
Novo Nordisk A/S said it will reduce 2025 annual bonuses for employees in Denmark as slower growth weighs on the company, marking part of a broader cost-cutting effort. The reduction applies to staff eligible for short-term incentives in the company’s home market, a spokeswoman confirmed Friday.
New Chief Executive Officer Maziar Mike Doustdar has vowed to impose stricter spending discipline as part of a corporate revamp. Earlier this week, he implemented a global hiring freeze for all non-business critical roles.
The company is struggling to regain ground against obesity-drug rival Eli Lilly & Co. and producers of cheaper generic versions of its blockbuster diabetes and weight-loss drugs, Ozempic and Wegovy. Bloomberg Intelligence estimates that Lilly’s weight-loss franchise will surpass Novo’s this year.
The global obesity market could reach $100 billion in annual sales by 2030, with Lilly potentially claiming more than half of that market.
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5. US Mortgage Rates Hold Steady After Four Weeks of Declines
US mortgage rates stabilized after falling for four straight weeks. The average 30-year fixed loan rate was 6.58%, unchanged from last week when it dropped to its lowest level since October, Freddie Mac reported Thursday.
The recent decline in rates has been enough to lure some hesitant homebuyers back into the market. In regions where listings are lingering, sellers have been more willing to negotiate, offering concessions such as covering closing costs. Still, affordability remains a serious barrier, particularly for first-time buyers.
Sales of previously owned homes rose in July as price growth slowed, according to the National Association of Realtors (NAR). Yet the market remains out of reach for many. Realtor.com’s analysis shows only 28% of available listings are affordable for the typical US household. Buyers have lost about $30,000 in purchasing power since 2019 when mortgage rates were closer to 4%.
While household incomes have risen nearly 16% over the past six years, they’ve failed to keep pace. “Higher interest rates have eroded the real-world purchasing power of the typical American household,” said Danielle Hale, chief economist at Realtor.com. “This dynamic is forcing many buyers to adjust their expectations, whether that means opting for smaller homes, moving farther out, or delaying the dream of homeownership altogether.”
Prices have surged more than 50% since early 2020.
Bloomberg – Mortgage Rates in the US Hold at the Lowest Level Since October
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6. Powell Opens Door to September Rate Cut at Jackson Hole
Federal Reserve Chair Jerome Powell cautiously signaled that an interest-rate cut could come as soon as September, citing growing risks to the labor market while warning that Trump’s tariffs still pose inflation risks. Powell described the labor market as in a “curious kind of balance,” with both supply and demand slowing. He noted that July jobs data showed weaker-than-reported growth, suggesting downside risks to employment that could manifest quickly in rising layoffs.
At the same time, Powell stressed that tariffs are visibly pushing up prices, which could either be temporary or risk fueling a more lasting inflationary dynamic. “When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate,” he said.
Markets responded positively: Treasury yields tumbled, the S&P 500 extended gains, and the dollar weakened. Powell received a standing ovation in the room.
The speech came as Trump and allies ramp up pressure on the Fed to cut borrowing costs, heightening concerns over the central bank’s independence.
Bloomberg – Powell Says Shifting Risks May Warrant Adjusting Rates
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7. Canada to Remove Some Retaliatory Tariffs on US Goods Ahead of USMCA Review
Canadian Prime Minister Mark Carney is set to announce Friday that the government will remove 25% retaliatory tariffs on a wide range of US consumer products, provided the imports comply with the terms of the US-Mexico-Canada Agreement (USMCA). The move aims to ease tensions with the White House and prepare for the upcoming USMCA review.
However, Canada will keep its 25% levies on US steel, aluminum, and automobiles — sectors where President Donald Trump continues to enforce tariffs. The decision marks a significant policy shift, as Canada had been one of the few nations to swiftly retaliate against US protectionist measures, a stance that previously irritated Trump and Commerce Secretary Howard Lutnick.
Carney campaigned on a pledge to inflict “maximum pain” on the US and matched Trump’s automotive tariffs with Canada’s own measures during the election. But as head of government, he has taken a more cautious stance on counter-tariffs compared to his predecessor Justin Trudeau.
Bloomberg – Canada to Drop Many Retaliatory Tariffs in Olive Branch to Trump
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