Daily Brief - 21 Mar 2024

Micron set to rise most since 2011 as AI growth boosts outlook

Micron Technology, is set for its biggest growth spurt since 2011, thanks to the booming demand for artificial intelligence (AI) technology. The company has outdone itself and analysts' predictions by forecasting revenue between $6.4 billion and $6.8 billion for the next quarter, significantly higher than expected.

This surge is powered by the need for advanced memory chips used in AI applications, a field where Micron is shining brightly. Shares are skyrocketing, hitting an all-time high as Micron leads the charge into a future dominated by AI.

Amidst a recovery from a recent industry slump, Micron's success is a beacon of hope, showing how tech innovation can drive remarkable growth. With most of its advanced memory chip production already sold out for 2025, Micron's journey into the AI-driven tech landscape looks more exciting than ever.

Gucci’s slump means the end of the luxury megatrend

Kering has surprised everyone with an early warning that its sales are going to drop more than expected, mainly because its star brand, Gucci, isn't doing too well. Normally, Gucci is the golden goose for Kering, but this quarter, it's expected to sell a lot less in Asia and around the world.

This bad news has caused Kering's stock to tumble down by 11%. It's not just a problem for Kering, as other luxury brands like LVMH and Burberry are feeling the heat too, with investors getting jittery and selling their stocks.

This downturn is seen as part of a bigger trend where even China's big spenders are tightening their belts, affecting not just fashion but other sectors too. It seems like tough times are ahead for the luxury market, but it's not just about the fancy stuff; it's a sign of broader economic challenges.

Barclays readies hundreds of job cuts in investment bank

Barclays is setting the stage for a significant job reduction within its investment banking division, aiming to streamline operations and hike up profits. This move comes as part of a broader, yearslong strategy to refine the bank's performance amidst a challenging global economic landscape.

The job cuts will span across global markets, research, and investment banking teams, and are seen as an annual sweep to shed less effective roles. Despite the lack of concrete numbers at this stage, the bank's intention is clear: to invest in top talent and secure a stronger, more efficient future.

As Barclays focuses on sectors expected to boom, like green energy, and plans to cut costs without sacrificing growth, the investment bank braces for a transformation. With the backdrop of a competitive and cost-conscious banking environment, Barclays' pivot towards profitability is more critical than ever.