FirstFT: the Chinese group has violated the US infrastructure, warns Microsoft

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Good morning. Microsoft has warned that a state-sponsored Chinese hacking group has compromised “critical” infrastructure in the United States in order to disrupt communications between the country and Asia in the event of a crisis.

In a rare announcement about a systems breach, the US tech group said the hackers, codenamed “Volt Typhoon”, have been operating since mid-2021. They have been able to infiltrate organizations in all industries ranging from communications and deliver to education and government by leveraging a popular cybersecurity platform called FortiGuard, Microsoft said.

The hacking group’s actions had focused on intelligence gathering and espionage, rather than causing immediate disruptions, according to Microsoft. But John Hultquist, chief analyst at Mandiant Intelligence, a Google-owned cyber defense service, said the Volt Typhoon attack was “aggressive and potentially dangerous.” Read the full story here.

And here’s what else I’m watching today:

• Turkey’s interest rate decision: Economists expect Turkish politicians to do this keep the official rate constant today, according to a recent survey. (Reuters)

• Eurasian Economic Forum: A meeting of the Supreme Eurasian Economic Council is taking place today. The participation of Russian President Vladimir Putin is expected.

• Annual General Meetings: Two important annual meetings will be held today. At McDonald’s, two of Europe’s largest asset managers will push the food chain to do so reduce the use of antibiotics. And the president and CEO of Illumina will be to vote.

Five more top stories

1. US chipmaker Nvidia released a revenue forecast far ahead of Wall Street expectations, prompting a soaring share price in the aftermarket. Growing demand for chips needed to train the latest wave of generative AI systems like ChatGPT has allowed Nvidia to confirm its position as the primary beneficiary of the AI ​​rush.

• Interview: Ahead of Nvidia’s earnings report, the company’s chief executive has warned that the US tech industry is at risk of “huge damage” from the US-China battle over chips. Read the full interview.

2. Canberra deferred PwC tax leak scandal to the Australian Federal Police, asking the force to do so consider opening a criminal investigation. Emails released this month showed how PwC obtained business from multinational clients using classified government information.

3. Republican negotiators will return to the White House to “try to conclude negotiations” on the debt ceiling, Kevin McCarthy said, though he warned the two sides were “still apart” on a number of issues. The remarks of the Speaker of the House arrive there is just over a week left until the crucial deadline of June 1st.

4. Samsung faces threat of strike action in the midst of a union campaign for higher wages. The South Korean company union will vote for the striking members unless President Lee Jae-yong comes to the negotiating table. For Samsung, previously known for its aggressive stance on organized labor, this is new territory and a particularly delicate moment is coming.

5. UK inflation fell to 8.7% in April, a smaller drop than expected by the Bank of England, reinforcing expectations of further interest rate hikes and leading to a sell-off in the bond market. Read more about today’s inflation announcement.

• US inflation: The need to raise US interest rates further to control inflation is ‘less certain’ as economic risks have increased, according to the latest Federal Reserve minutes.

The big read

Periods of inflation have often raised the price of gold, and this time it wasn’t just the elites: central banks worried about geopolitical risk bought a record 1,079 tonnes of bullion last year. How long will the new gold boom last?

We are also reading. . .

Chart of the day

A double-digit drop in German exports to China has shaken Europe’s largest economy, sparking a debate over why its vast manufacturing sector has lagged behind rivals. It also reveals a unique set of challenges for the industrial power of Europe.

Take a break from the news

Bulgarian writer Georgi Gospodinov won this year’s International Booker Prize for his novel Shelter of timea hard-hitting comedy set in today’s Europe that explores political populism and how nostalgia can be harnessed to create a packaged past.

Additional contributions by Gordon Smith and Tee Zhuo