Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now let's send it's some of the stocks in the
Speaker 3: mood to stay here in Europe. I'm Caroline Hepgar with
Speaker 3: Binberg with port to cloone Malay, good morning, clothing morning.
Speaker 3: First off, a SML, the chip equipment maker. This as
Speaker 3: we saw those really stella very strong results from TSMC.
Speaker 3: What's the read across into ASML that obviously you know
Speaker 3: makes the machines behind you.
Speaker 4: Yeah.
Speaker 1: Absolutely, Well we've seen we've seen ASML in the green
Speaker 1: today as the positive read across from those TSMC numbers.
Speaker 1: So TSMC raised its outlook for both cells and spending,
Speaker 1: and so that is really seen from investors as a
Speaker 1: sign of this continued AI demand which interestingly has had
Speaker 1: positive read across into ASML, but actually not into.
Speaker 4: That broader tech and AI related sector.
Speaker 1: And that is because ASML is a key supplier to TSMC,
Speaker 1: so the plans to spend more will directly benefit ASML.
Speaker 1: But the reason why other AI related names are like
Speaker 1: maybe ASM or Schneider Electric Semens et cetera. Are not
Speaker 1: really seeing that same drive forward is because the broader
Speaker 1: sentiment around this AI trade is a little unsteady. We
Speaker 1: saw another really steep decline in the COSPI in South Korea.
Speaker 1: There's been so much volatility in that index, and so
Speaker 1: this really indicates those growing questions around whether those very
Speaker 1: high valuations make sense, whether those huge investments makes sense
Speaker 1: as well into AI. And so we are seeing essentially
Speaker 1: one winner from this tsmcloid across this morning, and that
Speaker 1: is just ASML.
Speaker 4: That's key supplier.
Speaker 3: Okay, so that in the all important AI semiconductor space.
Speaker 3: Of course, then there is another major deal and a
Speaker 3: huge surge for the foot to fifty company road talk.
Speaker 3: I suppose that means we have to talk about valves.
Speaker 1: Yes we do. So you might not have heard of
Speaker 1: road talk. I don't think I had either. But this
Speaker 1: is an industrial components supplier, so it makes equipment that
Speaker 1: controls the movement of liquids through industrial pipelines. Essentially, what
Speaker 1: that means is that it has really big exposure to
Speaker 1: the energy sector, to utility sector as well, and that
Speaker 1: is why ABB, the electrification company out of Switzerland, is
Speaker 1: buying a Roadtalk in a five point five billion dollar deal.
Speaker 1: So that will enable ABB to expand its automation in
Speaker 1: an electrification businesses and continue to benefit from this AI
Speaker 1: boom from this spending on data centers that it has
Speaker 1: been benefiting from for a while now. So the deal
Speaker 1: is very much part of that strategy of continuing in
Speaker 1: that direction. ABB has been trying to streamline its portfolio
Speaker 1: towards that exposure to power grids, to energy and therefore
Speaker 1: to that data center builder. And in that spirit, it's
Speaker 1: sold its robotics division last year to soft Bank to
Speaker 1: try and shift its focus to acquisitions of the kind
Speaker 1: that it just did with road Talk, and see the
Speaker 1: CEO ABB has actually said that the company has thirteen
Speaker 1: billion dollars available for additional purchases, so we'll be watching
Speaker 1: out for any other deals of that kind. And in
Speaker 1: the meantime, road Talk shares, as you said, surging this
Speaker 1: morning more than sixty percent.
Speaker 3: Wow. Publicist, the advertising agency also gaining this morning.
Speaker 1: Why yeah, so Publicist has raised its outlook this morning.
Speaker 1: Also the sales came in above expectations, so that really
Speaker 1: shows kind of resilience from that advertising company despite the
Speaker 1: downturn and.
Speaker 4: The weakness in advertising spend.
Speaker 1: Of course, marketing is one of the first things to
Speaker 1: go when money gets quite tight for companies, and so
Speaker 1: there has been this clear downturn in advertising and marketing spend.
Speaker 1: But the resources for Publicists show that this is a
Speaker 1: company that's much more resilient than some of its peers.
Speaker 1: It's also something that might bode well for a WPP
Speaker 1: and have As, which are the other two big advertising
Speaker 1: companies listed in Europe. But Publicist has also been a
Speaker 1: very consistent outperformer, so maybe it is just better placed
Speaker 1: to whether it's downturn than some of its peers.
Speaker 4: It is worth noting that it's not all kind of rosy.
Speaker 1: There's some challenges with weaker spending on IT services and
Speaker 1: that's really hurting its sapient unit, which is a digital
Speaker 1: consulting unit. So pretty good, but not kind of good
Speaker 1: across the board.
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