Good morning. U.S. officials’ warning to their Dutch counterparts was stark: If they wanted a Netherlands-based chip maker to avoid being put on a trade blacklist, it would almost certainly have to remove its Chinese owner as CEO.

• Why they were concerned: “The fact that the company’s CEO is still that same Chinese owner is problematic,” American officials said in a June meeting on the topic, according to a Dutch court document made public Tuesday.
   
• What happened: The Americans soon got their wish. Late last month, the Dutch economy ministry seized control of Nexperia from China’s Wingtech Technology. The next day, a Dutch court granted an emergency petition to suspend Wingtech founder Zhang Xuezheng as Nexperia’s CEO and put all but one of the semiconductor company’s shares under external management.
   
• Impact of global tensions: The seizure and ouster underscore how U.S.-China tensions are reverberating across the tech sector—and how the U.S. isn’t shy about using its trade might to try to cajole allies to line up behind it. Nexperia, which produces basic transistors and chips used in cars, electronics and data centers, is caught in the crossfire.
   
• Background: The Dutch took control of Nexperia the day after the U.S. on Sept. 29 expanded a trade blacklist of companies that pose national-security risks to also include subsidiaries that are at least 50% owned by listed entities. Wingtech was added to the blacklist last year, meaning Nexperia could face the same trade restrictions as its Chinese parent.

Boeing’s $4.7 billion Spirit deal cleared in EU, with conditions.

The European Union cleared Boeing’s roughly $4.7 billion deal to acquire Spirit AeroSystems Holdings after the jet maker offered to sell some Spirit operations in an effort to ease competition concerns.

The announcement comes more than a year after Boeing agreed to buy the fuselage maker in a deal that included Boeing-related commercial operations as well as commercial, defense and aftermarket operations.

New York fines auto insurers over cyber breaches.

New York has fined several car insurance companies for data breaches that allegedly let hackers steal personal information of state residents, Risk Journal reports.

The New York State Department of Financial Services and New York Attorney General Letitia James after a joint investigation imposed more than $33 million in penalties on eight insurers, including Farmers Insurance Exchange and Liberty Mutual Insurance.

• Beijing added five subsidiaries of South Korean shipbuilder Hanwha Ocean to a sanctions list over their alleged role in a U.S. probe into the Chinese shipping industry.
   
• Instagram is rolling out new protections for teenagers’ accounts and introducing a system that limits what young users can see based on PG-13 movie ratings.
   
• The U.S. government on Tuesday designated a Cambodian conglomerate as a transnational criminal organization, accusing it of running online scam operations that have victimized people across the U.S.
   
• Switzerland’s Federal Administrative Court rejected an appeal by Dmitry Konov to remove his name from Swiss sanctions lists, reports Risk Journal, ruling the former chairman of Russia’s largest petrochemical company, Sibur Holding, remains involved in businesses providing substantial revenue to the Russian government.
   
• California Gov. Gavin Newsom headed off a bid to block public funding for modernization efforts at some of America’s busiest ports.
   
• When Credit Suisse needed rescuing by UBS in March 2023, Swiss authorities sweetened the deal by ordering more than $17 billion in bonds to be written off at the failing bank. Now a Swiss court has ruled there was no legal basis to do so.
   
• The European Union extended restrictive measures against the proliferation and use of chemical weapons until Oct. 16, 2026, maintaining sanctions on 25 persons and six entities.
   
• Tesla will go to bat again for Elon Musk’s voided compensation on Wednesday, arguing before the highest court in Delaware that its CEO deserves the tens of billions of dollars he earned.

U.S., China aim for a delicate balancing act on trade.

President Trump has been trying to publicly de-escalate tensions with China to soothe markets while privately keeping up pressure on Beijing—a difficult balancing act that is being closely watched by Wall Street.

After threatening additional 100% tariffs on Chinese imports starting Nov. 1, Trump in recent days spoke with senior officials, including Treasury Secretary Scott Bessent, about sending a message to the world that the U.S. wants to de-escalate trade tensions with China, according to people familiar with the matter.

Trump’s 100% tariff threat Friday came after Beijing moved to impose restrictions on the export of rare-earth minerals. The renewed conflict sparked a large U.S. market selloff, during which the president suggested he might not meet with Chinese leader Xi Jinping.

• China, Betting It Can Win a Trade War, Is Playing Hardball With Trump
• Trump Opens New Front in China Trade War: Cooking Oil
• China’s Rare-Earth Export Controls Are ‘Critical Concern’ for EU, Trade Chief Says

A historic crypto selloff erased over $19 billion, but two accounts made $160 million.

President Trump’s surprise announcement of 100% tariffs against China on Friday triggered a cryptocurrency selloff that wiped out more than $19 billion in leveraged positions. Two accounts that placed bets against the market minutes before the news broke scored a $160 million windfall.

While crypto has fallen before, analysts said the sharp downturn exposed the extreme leverage that had fueled a monthslong rally, which began after the election of an administration seen as friendly to the industry.

• Hamas handed over the bodies of four more hostages to Israel on Tuesday, after both sides accused each other of violating the cease-fire that was part of the deal that released all 20 living detainees from Gaza.
   
• President Trump wants to quickly pivot from a Gaza cease-fire to the thornier problem of a broader peace in the Middle East, betting that two years of war transformed the region so much that decades-old animosities can be set aside.
   
• Its president is in hiding, an army unit has taken control and crowds of protesters are demanding sweeping social change. The wave of protests mushrooming around the world has now forced a change of leadership in Madagascar.
   
• The International Monetary Fund warned that trouble in the growing world of nonbank financial institutions, such as pension funds, insurance companies, and investment funds, could create problems for banks and complicate managing financial crises.
   
• President Trump on Tuesday announced another lethal military strike on an alleged drug-trafficking boat off the coast of Venezuela, which killed six people.
   
• President Trump directly tied the $20 billion lifeline the U.S. is extending to Argentina to President Javier Milei’s success in the upcoming midterm elections.
   
• European Commission President Ursula von der Leyen warned Tuesday that Russia is ramping up pressure on Europe’s borders with attacks on border guards, drone violations and shadow fleet operations, Risk Journal reports. 
   
• There is a small but growing possibility that the U.K. economy is heading for recession, thanks in part to overly high borrowing costs, a Bank of England rate-setter said Tuesday.

• Wall Street is firing on all cylinders.
   
• General Motors said it is reducing its electric-vehicle manufacturing capacity and booking a $1.6 billion charge on its EV business as demand sinks.
   
• Alphabet’s Google is significantly increasing its investment in artificial intelligence infrastructure, with billions allocated for South Carolina and India.
   
• Walmart is forming a partnership with OpenAI to let shoppers buy its products directly within ChatGPT, the artificial-intelligence chatbot. It is a signal by the biggest U.S. retailer that online shopping is going to become a different experience from the retail websites we are used to.

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