Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- GameStop meme-traders see backlash
- Intel has showcased its AI PC capabilities
- Exploding beer cans recalled
- Manchester City vs Premier League
GameStop meme-traders see industry backlash
GameStop (GameStop Corp (NYSE:GME)) meme-traders faced something of a backlash on Tuesday as financial institutions and regulators scrutinised recent trading activity.
Morgan Stanley (NYSE:MS)’s E*Trade platform is considering banning Keith Gill, the Reddit (NYSE:RDDT) meme-trader known online as Roaring Kitty, due to concerns about his trading activities.
Elsewhere, the Massachusetts Securities Regulator is reportedly investigating Gill following his post on Reddit in which he appeared to reveal a large trading position in GameStop.
It comes after GameStop stock surged again on Monday after Gill posted a screenshot on Reddit that showed a $116 million position in the video game retailer. The post revealed that Gill holds 5 million shares with an average cost basis of $21.27 each, plus 120,000 call options worth $65.7 million, set to expire on June 21.
Gill’s return to social media, after a three-year hiatus, has reignited interest in meme stocks. His previous posts significantly influenced the retail trading frenzy around GameStop in 2021.
The Reddit post followed a series of meme videos posted to X (formerly Twitter) a number of weeks ago, which prompted a resurgence of so-called ‘meme trading’ through the month of May.
Intel has showcased its AI PC capabilities
Intel Corp (NASDAQ:INTC, ETR:INL) chief executive Pat Gelsinger today discussed details of its new AI chip designs, at an industry conference in Taiwan.
The group’s new chip, named Lunar Lake, is expected to ship to PC makers in the third quarter.
Lunar Lake will deliver three times the computing capability of its current generation AI PC chips, according to Intel.
The chipmaker said the new chips will include a neural processing unit, or NPU, capable of 48 trillion operations per second (referred to as ‘TOPS’.
Industry estimates project that AI PCs will account for 60% of the overall PC market by 2027.
Running AI systems locally on high-powered PC, rather than internet/cloud based systems, promises enhanced security and privacy credentials, and therefore allow a range of applications that might otherwise not suit cloud implementation.
Lunar Lake will power over 80 PC designs from 20 manufacturers, Intel noted.
Intel also launched Xeon 6 data center processors, promising 4.2x the rack-level performance of older chips.
Exploding beer cans recalled
Explosive Yorkshire-made craft beer, ‘inspired by’ late TV personality Bruce Forsyth, has been taken off the shelves of UK supermarkets.
Cans of Juice Forsyth, a fruit-infused IPA brewed by Brew York, have been recalled by the brewery amid safety concerns.
According to the UK’s Food Standards Agency (FSA) there were reports that 440ml cans of the beer had shown ‘excessive carbonation’, ‘bulging’ and ‘bursting in some circumstances’.
The beer is stocked by Sainsburys and Morrisons, and Brew York has offered affected customers a voucher, accessible via its website.
The recalled batch was sold in England, with an expiry date of 23 July, 2024.
Instructions to safely open the cans were also posted on the brewer’s website.
Manchester City vs Premier League
Manchester City has launched a legal challenge against the Premier League, and its rules on associated party transactions (APTs).
The action is separate from the 115 charges that the Premier League earlier this season levied against the Manchester club. Rulings and sanctions under the Premier League’s charges have yet to be announced by the league.
Taking its own action against the Premier League, City is arguing that the APT rules are unlawful and violate competition law.
APT rules require that sponsorship and revenue deals with businesses linked to club owners be independently assessed to ensure they are of fair market value.
Abu Dhabi owned, and Etihad-sponsored Manchester City meanwhile contends that the Premier League rules resulted in significant revenue losses to the club, and it is seeking financial damages.
The APT rules were introduced in 2021 to ensure fairness and transparency.
An independent tribunal is expected to hear Manchester City's case next week.
The football club is expected to argue that the league's financial rules are unlawful and they are incompatible with UK competition law, and it also claims that the rules are described by City as “discriminatory and detrimental” to the club’s financial interests.
Manchester City’s 115 Premier League charges of financial rule-breaking are expected to be heard in November.
The Premier League has so far not commented on the legal dispute.