Semis Slide on Report of an AI Chip Exports to China Ban, Powell and Lagarde at ECB Forum 6/28/23

Squawk on the Street

CNBC

Business, Investing, News

4.1 • 567 Ratings

🗓️ 28 June 2023

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, David Faber and Mike Santoli led off the show with Nvidia and other semiconductor stocks under pressure -- after The Wall Street Journal reported the Biden Administration is considering new restrictions on exports of AIchips to China.Top central bankers also in the spotlight: CNBC's Sara Eisen moderated a panel discussion at the ECB Forum in Portugal, including Fed Chair Jerome Powell, ECB President Christine Lagarde, Band of England Governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda. Also in focus: General Mills slumps on its sales miss and outlook, a "Faber Report" on the FTC vs. Microsoft-Activision -- the CEOs of both companies expected to testify in court Wednesday. Squawk on the Street Disclaimer

Transcript

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0:00.0	It's Jim Kramer here. You're listening to the opening bell of CBC Squawk on the Street.
0:04.7	Don't miss a minute of the action. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kintanio with David Faber, Mike Centi, a post-9 of the New York Stock Exchange. Kramer has the morning off. Big day from Macro as Powell and other central bankers speak in Portugal on a panel moderated by our own Sarah Eisen.
0:22.1	Meantime, the president speaks on economics a day after the best day. and other central bankers speak in Portugal on a panel moderated by our own Sarah Eisen.
0:22.1	Meantime, the president speaks on economics a day after the best day for the economic surprise
0:26.4	index since February. A roadmap begins with chip stocks, though, under pressure, reports of a
0:31.5	potential new U.S. ban on AI chip exports to China. Plus, Microsoft versus the FTC or the other way around continues today.
0:40.3	Sottia Nadella, Microsoft CEO, Bobby Kodick, Activision CEO, will both testify in court today.
0:46.3	Again, as the FTC tries to block that merger.
0:50.1	And as recession risks, Linger, President Biden is looking to claim credit for the post-pandemic economic recovery in a so-called major economic speech.
0:58.9	That'll be later today.
1:00.9	Let's begin, though, with Nvidia and other chipmakers falling in the pre-market.
1:04.1	According to the journal today, the Biden administration is considering some new restrictions on exports of AI chips to China.
1:11.6	The e-commerce department would put the curbs into effect as soon as early July,
1:15.6	and this comes amid concerns that China could use those chips for weapons development,
1:19.6	hacking, and this budding story, Mike, about a black market for the chips
1:24.6	where they can't get them legitimately, but players are willing to pay a lot
1:28.3	more to get them on the second-hand market. Yeah, the street trying to run the numbers in terms of
1:31.9	potential impact on Nvidia, varying, saying 10 to 15% of revenue might fall under this category.
1:38.3	Details not determined. We don't know what kinds of products are going to be included.
1:42.9	To me, the main immediate takeaway is that
1:47.6	semis have been a leading sector. Invitya has been the absolute, you know, vehicle for enthusiasm
1:53.6	over AI. That's been the thing that's gotten the market to this point in terms of the market
	...

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