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Trump says Intel has agreed to give US government a 10% stake

about 10 hours ago
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The US government has taken an unprecedented 10% stake in Intel under a deal with the struggling chipmaker and is planning more such moves, according to Donald Trump and the commerce secretary, Howard Lutnick, the latest extraordinary intervention by the White House in corporate America,Lutnick wrote on X: “BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies,Thanks to Intel CEO @LipBuTan1 for striking a deal that’s fair to Intel and fair to the American People,”Trump met with Lip-Bu Tan on Friday and posed for a photo with Lutnick,The development follows a meeting between Tan and Trump earlier this month that was sparked by the US president’s demand for the Intel chief’s resignation over his ties to Chinese firms.

“He walked in wanting to keep his job and he ended up giving us $10bn for the United States.So we picked up $10bn,” Trump said on Friday.While Trump did not provide detail on the $10bn, the equity stake is about equal to the amount Intel is set to receive in grants from the government under the Chips and Science Act to help fund the building of chip plants in the US.The Intel investment would be the latest of several unusual deals struck by the Trump administration with US companies, including agreeing to allow the AI chip giant Nvidia to sell its H20 chips to China in exchange for the US government receiving 15% of those sales.Chipmaker AMD struck a similar deal.

The Pentagon is also slated to become the largest shareholder in a small mining company to boost output of rare-earth magnets and the US government negotiated for itself a “golden share” with certain veto rights as part of a deal to allow Nippon Steel to buy US Steel.The US government’s broad intervention in corporate matters has worried critics who say Trump’s actions create new categories of corporate risk.Trump’s move follows a $2bn capital injection from SoftBank Group in what was a major vote of confidence for the troubled US chipmaker in the middle of a turnaround.Daniel Morgan, senior portfolio manager at Synovus Trust, said Intel’s problems were beyond a cash infusion from SoftBank or equity interest from the government.“Without government support or another financially stronger partner, it will be difficult for Intel foundry unit to raise enough capital to continue to build out more Fabs at a reasonable rate,” he said, adding Intel “needs to catch up with TSMC [Taiwan Semiconductor Manufacturing Company] from a technological perspective to attract business”.

Sign up to TechScapeA weekly dive in to how technology is shaping our livesafter newsletter promotionA 10% stake at current share prices would be worth roughly $10bn.Lutnick said this week any stake would be non-voting, meaning it would not enable the US government to tell the company how to run its business.Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product roadmap and challenges in attracting customers to its new factories.Tan, who took the top job at Intel in March, has been tasked to turn around the American chipmaking icon, which recorded an annual loss of $18.8bn in 2024 – its first such loss since 1986.

politicsSee all
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Why Shabana Mahmood’s outlook on prisons is wrong | Letter

Shabana Mahmood’s tenure as justice secretary is more problematic than your profile suggests (Shabana Mahmood: justice secretary and rising star of the Labour party, 16 August). First, she has endorsed yet another prison-building programme, a policy that has failed so dismally for the past 200 years. If the answer to the current crisis is more prisons, then she, like her predecessors, is asking the wrong question.Second, she has said prisons should be regarded as being of “national importance”. Why should they be seen as more important than developing welfare-oriented, radical alternatives to custody, or abolishing the structural inequalities that are central to who is criminalised and imprisoned?Third, the profile mentions that her plans include chemical castration for sex offenders

1 day ago
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Action to tackle number of asylum seekers coming to UK is important step to ‘restoring order’, says Cooper – as it happened

The home secretary has said the government’s action to tackle the number of asylum seekers coming to the UK had been an important step to “restoring order”.Responding to new immigration statistics, Yvette Cooper said Labour had overseen increased numbers of returns of asylum seekers not granted asylum and pointed to the reduced spending on asylum.According to the PA news agency, Cooper said:We inherited a broken immigration and asylum system that the previous government left in chaos. Since coming to office we have strengthened Britain’s visa and immigration controls, cut asylum costs and sharply increased enforcement and returns, as today’s figures show.The action we have taken in the last 12 months – increasing returns of failed asylum seekers by over 30%, cutting asylum costs by 11%, reducing the backlog by 18% and our forthcoming plans to overhaul the failing asylum appeal system – are crucial steps to restoring order and putting an end to the chaotic use of asylum hotels that we inherited from the previous government

1 day ago
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Stella Creasy and Richard Tice call for scrutiny over which EU laws UK ditches

Stella Creasy and Richard Tice are pushing for Labour to allow a Brexit scrutiny committee to be formed in parliament, after the Guardian revealed environmental protections had been eroded since the UK left the EU.The Labour and Reform UK MPs argue that there is no scrutiny or accountability over how Brexit is being implemented. Creasy, the MP for Walthamstow and chair of the Labour Movement for Europe, said the UK needed a “salvage operation” to clear up the environmental and regulatory havoc caused by Brexit.The analysis by the Guardian and the Institute for European Environmental Policy (IEEP) has found that since Brexit the EU has brought forward 28 new, revised or upgraded pieces of environmental legislation that the UK has not adopted, and the UK has actively chosen to regress by changing four different pieces of legislation including on protected habitats, pesticides and fisheries.Creasy said the prime minister, Keir Starmer, needed to move more quickly to repair relations with the EU and realign on environmental law

2 days ago
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Labour-run councils consider legal challenges to asylum hotels

Labour-run councils are considering legal challenges to stop hotels from housing asylum seekers after a landmark ruling prompted officials to consider increasing the use of former military sites as emergency accommodation.Wirral and Tamworth councils said they are exploring high court injunctions to remove claimants after the Conservative-run authority in Epping Forest won a temporary high court injunction to remove people from the Bell Hotel.The developments come after the Home Office minister, Dan Jarvis, said the government is looking at alternative options if there is a flurry of successful challenges from councils.Yvette Cooper, the home secretary, is determined to stick to her plan after the Epping ruling and its consequences, a source said.“We have a plan and we’re sticking to it to close asylum hotels by the end of the parliament

2 days ago
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How Labour can build a stronger British economy | Letters

If Rachel Reeves is serious about ensuring that Labour’s second year in power is all about a stronger economy that rewards working people across the country (In our first year Labour fixed the foundations – now we must build a stronger economy for a renewed Britain, 13 August), she needs to rethink what your editorial called the UK’s “broken growth model” (6 August). The growth that Britain needs is an increase in economic activity that improves social and environmental infrastructure nationwide. This involves a huge increase in secure, well-paid jobs to rebuild a more resilient future economy.The last thing that is required is Reeves’s obsession with more deregulation of the City and pressuring savers into investing in the stock market. What is needed instead is a massive increase in a socially and green-oriented bond market that will provide secure returns for savers

3 days ago
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Reeves leaves no stone unturned as she mulls reforms for property tax

Rachel Reeves is in favour of radical tax reform – or at least she was in 2018. “We need a radical overhaul of the tax system because our current system of wealth taxation isn’t working,” she argued in her pamphlet The Everyday Economy.Seven years later, in her second year as chancellor, Reeves appears to be returning to some of the themes in that pamphlet, especially as it relates to the UK’s convoluted and unpopular system of taxing property.The Guardian revealed on Monday the chancellor was considering scrapping stamp duty (used in England and Northern Ireland) and replacing it with an annual levy based on the value of someone’s home and the time they bought it. On Tuesday, the Times reported that Reeves was also considering imposing the UK-wide capital gains tax on higher-value primary properties, even though the prime minister, Keir Starmer, ruled out doing so before the election

3 days ago
technologySee all
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There’s an app for that: finding a sunny cafe in Paris, the city of light

2 days ago
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Australian livestreaming platform Kick broadcast a man’s death – could it face repercussions from regulators?

2 days ago
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Google launches Pixel 10 with AI tools that anticipate users’ needs

3 days ago
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Microsoft workers occupy HQ in protest against company’s ties to Israeli military

3 days ago
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OpenAI eyes world’s largest valuation for private company in stock sale talks

3 days ago
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US surveillance firms run a victory lap amid Trump’s immigration crackdown

4 days ago