Top News in Finance for June 28, 2023

KEY POINTS

Dive into this week’s key financial happenings with our succinct, easy-to-understand summaries of the most crucial economic events. Designed to keep you up-to-date, our roundup empowers you to navigate the week ahead and seize unfolding opportunities

• Chips to China Restricted – U.S. companies NVidia and AMD experience stock drop following potential regulation on AI chip sales to China.
• Banking Leaders Confer – Chair of the Federal Reserve Jerome Powell will join international finance authorities at a conference in Portugal, with potential impact on global finance.
• Costco Introduces ID Checks – Costco intensifies membership checks to discourage misuse, potentially influencing membership and company profits.
• AeroVironment Ascends – Drone manufacturer AeroVironment experiences pre-market stock growth after surpassing expected annual earnings and revenue.
• UBS Trims Workforce – Swiss banking giant UBS is set to significantly reduce the workforce of Credit Suisse, a move that might impact global banking sector.

Chips to China Restricted

Pre-market trading witnessed a dip in shares for technology firms NVidia and Advanced Micro Devices (AMD) following reports of potential U.S. regulations on the sale of artificial intelligence chips to China. This move comes after NVidia re-engineered a chip to navigate around current U.S. restrictions on AI technology exports to China.

Banking Leaders Confer

Jerome Powell, Chair of the Federal Reserve, is slated to attend a panel alongside European Central Bank Chair Christine Lagarde and other global financial heavyweights at a banking meeting in Sintra, Portugal. Investors worldwide are watching closely for signals on how these central banking institutions plan to address ongoing inflation.

Costco Introduces ID Checks

Warehouse club retailer Costco has heightened their membership checks to prevent misuse of member cards, an initiative that could have implications for the company’s membership count and bottom line. This strategy follows a similar path taken by Netflix to combat password sharing among users.

AeroVironment Ascends

AeroVironment, a leading drone producer, forecasted annual earnings and revenue that exceeded analyst predictions. The company’s projected earnings per share ranged from $2.30 to $2.60, with revenues falling between $630 million and $660 million. This positive announcement triggered a 5% surge in the company’s pre-market shares.

UBS Trims Workforce

UBS Group, a dominant Swiss banking conglomerate, plans to significantly reduce the workforce of Credit Suisse after taking over the bank in March. These cuts will predominantly affect Credit Suisse’s investment banking units across London, New York, and Asia.