Rolling coverage of the latest economic and financial news

• Nvidia and Jensen Huang sued by shareholders over affair with alleged Chinese spy

• The AI poster boy, the ‘Chinese spy’ and Trump: how an affair may have harmed US security

• Jensen Huang’s image has been shattered. Could he be pushed out at Nvidia?

A senior US central banker is calling for a hike in interest rates next month.

Federal Reserve governor Christopher Waller is arguing that the Fed should raise short-term borrowing costs next month even if government data shows inflation cooling.

“While I am hoping for an improvement over September, even if this occurs, I would still support a 25 basis point increase in the FOMC’s policy rate at our December meeting.”

“The affair itself is unlikely to be the central issue for shareholders. What matters is whether shareholders have suffered loss due to Nvidia failing to disclose material information, particularly given the sensitivities surrounding China, AI chips and US export controls.

“US plaintiff lawyers will be looking closely at matters such as what Nvidia and its board knew and when, what was said publicly and whether any material information was withheld from the market. For example, if previously undisclosed information is subsequently revealed to the market and may have caused investors significant losses, the ingredients for shareholder litigation could begin to emerge. But there is a considerable distance between reputational controversy and proving actionable shareholder claims.”