Sep 20, 2026 Daily Memo

Daily Memo: Rates go Up

TODAY IN 30 SECONDS

US and Chinese officials opened talks in New York on trade, AI and critical minerals, ahead of a planned Trump-Xi summit and the expiry of the current trade truce in November.
Chinese chipmaker CXMT says its latest memory-chip technology has entered mass production, increasing pressure on Samsung, SK Hynix and Micron.
Anthropic is considering releasing a new AI model ahead of a possible IPO, even after its chief executive called for the industry to slow the pace of AI development.

THE BIG STORIES

US-China talks move from tariffs into AI and critical minerals

What happened: US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng began talks on Sunday covering tariffs, AI security and access to critical minerals ahead of a planned meeting between Donald Trump and Xi Jinping.

Why it matters:

The current trade truce expires in November, so companies with US-China supply chains need clarity on whether tariffs will rise, fall or stay where they are.
Critical minerals matter because they feed into batteries, electronics, defence equipment and advanced manufacturing, giving China significant leverage over Western supply chains.
AI has moved firmly into trade negotiations, meaning restrictions on chips, models and investment are becoming part of the wider economic relationship rather than a separate technology issue.
Even a limited agreement could affect manufacturers, technology companies and exporters making investment decisions for 2027.

China’s memory-chip push

What happened: Chinese chipmaker CXMT said its fifth-generation DRAM technology platform has entered mass production, with new chips designed to deliver more memory at lower cost and with lower power use.

Why it matters:

DRAM is the short-term memory used by phones, computers and servers, a market currently dominated by Samsung, SK Hynix and Micron.
CXMT says its new process can produce at least 50% more chip dies from each wafer, which could lower unit costs if manufacturing yields hold up at scale.
A credible Chinese competitor could put pricing pressure on incumbent chipmakers and give Chinese electronics companies another domestic supplier.
US export controls are designed partly to slow China’s access to advanced semiconductor technology, but they are also giving Beijing a stronger incentive to fund domestic alternatives.

AI race heats up

What happened: Anthropic is considering launching another AI model to respond to OpenAI’s recent momentum, despite chief executive Dario Amodei calling only days earlier for the industry to slow the release of new capabilities.

Why it matters:

AI companies may want stronger safety controls, but none can easily stop investing while competitors continue launching better products.
That competitive pressure matters ahead of an IPO because public-market investors will scrutinise growth, customer retention and the enormous cost of computing infrastructure.
Open-source AI adds another problem: businesses can increasingly choose cheaper models rather than automatically paying the largest providers.
The tension is simple: slowing development may reduce risk, but slowing alone could also mean losing customers.

EU regulators want to block a €1.42bn paper deal

What happened: EU competition regulators are expected to block UPM-Kymmene and Sappi’s proposed €1.42bn paper joint venture after the companies failed to resolve concerns that the combination could reduce competition.

Why it matters:

The deal would create Europe’s largest communication-paper producer, raising concerns that customers could face higher prices.
Selling assets is often used to rescue problematic mergers, but the companies have reportedly struggled to find buyers for potential divestments.
That shows why merger remedies need to be commercially workable, not just legally possible on paper.
The European Commission is due to make its final decision by 11 November.

LAW FIRM RADAR

LATHAM & WATKINS: $1.2bn industrial property sale

What happened: Latham advised Rexford Industrial on the $1.2bn sale of a 22-property US industrial portfolio to EQT Real Estate.

Why this matters for Latham & Watkins:

The portfolio covers 5.2m square feet, showing the scale of institutional capital moving through logistics and industrial real estate.
The deal required both real estate and corporate expertise, reflecting how large property transactions increasingly resemble broader private capital deals.
Latham has been investing heavily in private equity real estate, including recent partner hiring in London.

How to use this: Link Latham’s lateral hiring to the work it is winning, rather than discussing recruitment moves in isolation.

Full report: Read the full analysis on ZipTracker.

DEADLINE RADAR