Weekly News Roundup 01-05/04/24

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Our concise and easy-to-read Weekly News Round-up is designed to be your most organised way to stay up-to-date on the major industry stories every week. We cram one week’s worth of news into a 5-minute read. You’re welcome!

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BlackBerry Reveals Further? Strategies To Cut Cost

Waterloo-based technology company BlackBerry has introduced additional cost-saving measures totaling US$55 million in its latest quarter, coinciding with a reported loss of US$56 million. Despite the loss, CFO Steve Rai highlighted the company's ongoing pursuit of efficiency enhancements, citing structural adjustments and streamlining efforts. Notably, BlackBerry saw an increase in revenue, with its Internet of Things (IoT) business reaching a new quarterly record of US$66 million, while cybersecurity revenue totaled US$92 million. CEO John Giamatteo emphasised the company's commitment to establishing two profitable standalone entities amidst efforts to separate its IoT and cybersecurity divisions.

Grab to Discontinue GrabPay Card

Singapore-based ride-hailing giant Grab announced the discontinuation of its GrabPay Card effective June 1, 2024. The decision comes amidst increased adoption of alternative Grab services, particularly the PayLater feature, prompting Grab to streamline its efforts.

This move follows Grab's previous announcement to discontinue retail investment products and focus more on financially viable avenues. The discontinuation may also be influenced by the emergence of GXBank , a Malaysian digital bank resulting from a collaboration between Grab and Singapore's Singtel Global Services .

TD Bank Collaborates with Google Cloud

TD sealed a multi-year partnership with Google Cloud, aimed at accelerating product development and enhancing services. The collaboration builds upon TD's successful implementation of Google Kubernetes Engine (GKE) for its investment banking arm, TD Securities. Through this expanded alliance, TD seeks to leverage Google Cloud's infrastructure to drive agility, innovation, and operational efficiency across its entire technology portfolio.

UBS Announces $2 Billion Share Buyback Plan

UBS unveiled a comprehensive share repurchase program amounting to $2 billion, with $1 billion earmarked for execution within the current fiscal year. This initiative follows the completed merger between UBS AG and Credit Suisse, signifying UBS's strategy to enhance shareholder returns. Despite integration complexities post-merger, UBS remains focused on operational excellence, as reflected in the reappointment of former CEO Sergio Ermotti.

FAB Partners with Microsoft for AI Innovation

First Abu Dhabi Bank (FAB) announced a collaboration with Microsoft to establish the AI Innovation Hub, aiming to revolutionise banking technology. Through harnessing advanced AI technologies, the initiative seeks to expedite integration of cutting-edge innovations, enhance product offerings, and shape the future landscape of financial markets ecosystems. The collaboration aims to position FAB as a trailblazer in regional and global banking innovation, leveraging Microsoft Azure AI services to automate operations across the FAB Group.

Amazon's Cash Surplus Sparks Speculation

Amazon is faced with mounting pressure to reassess its conservative capital return strategy as it accumulates substantial cash reserves, driven by record-breaking free cash flow projections for 2024. With projections nearly doubling from the previous year to $32 billion, analysts anticipate a potential shift towards more generous shareholder returns, including share buybacks and dividends. The surplus cash comes at a time when regulatory hurdles impede major tech Despite the debate over shareholder returns, some investors emphasise the importance of prioritising investment in technological infrastructure to sustain long-term competitiveness amidst evolving market dynamics and intensifying competition.