WEBVTT - ASML Gains, Rotork Soars, Publicis Up

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Now let's send it's some of the stocks in the

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<v Speaker 3>mood to stay here in Europe. I'm Caroline Hepgar with

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<v Speaker 3>Binberg with port to cloone Malay, good morning, clothing morning.

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<v Speaker 3>First off, a SML, the chip equipment maker. This as

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<v Speaker 3>we saw those really stella very strong results from TSMC.

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<v Speaker 3>What's the read across into ASML that obviously you know

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<v Speaker 3>makes the machines behind you.

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<v Speaker 4>Yeah.

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<v Speaker 1>Absolutely, Well we've seen we've seen ASML in the green

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<v Speaker 1>today as the positive read across from those TSMC numbers.

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<v Speaker 1>So TSMC raised its outlook for both cells and spending,

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<v Speaker 1>and so that is really seen from investors as a

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<v Speaker 1>sign of this continued AI demand which interestingly has had

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<v Speaker 1>positive read across into ASML, but actually not into.

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<v Speaker 4>That broader tech and AI related sector.

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<v Speaker 1>And that is because ASML is a key supplier to TSMC,

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<v Speaker 1>so the plans to spend more will directly benefit ASML.

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<v Speaker 1>But the reason why other AI related names are like

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<v Speaker 1>maybe ASM or Schneider Electric Semens et cetera. Are not

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<v Speaker 1>really seeing that same drive forward is because the broader

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<v Speaker 1>sentiment around this AI trade is a little unsteady. We

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<v Speaker 1>saw another really steep decline in the COSPI in South Korea.

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<v Speaker 1>There's been so much volatility in that index, and so

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<v Speaker 1>this really indicates those growing questions around whether those very

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<v Speaker 1>high valuations make sense, whether those huge investments makes sense

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<v Speaker 1>as well into AI. And so we are seeing essentially

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<v Speaker 1>one winner from this tsmcloid across this morning, and that

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<v Speaker 1>is just ASML.

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<v Speaker 4>That's key supplier.

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<v Speaker 3>Okay, so that in the all important AI semiconductor space.

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<v Speaker 3>Of course, then there is another major deal and a

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<v Speaker 3>huge surge for the foot to fifty company road talk.

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<v Speaker 3>I suppose that means we have to talk about valves.

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<v Speaker 1>Yes we do. So you might not have heard of

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<v Speaker 1>road talk. I don't think I had either. But this

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<v Speaker 1>is an industrial components supplier, so it makes equipment that

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<v Speaker 1>controls the movement of liquids through industrial pipelines. Essentially, what

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<v Speaker 1>that means is that it has really big exposure to

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<v Speaker 1>the energy sector, to utility sector as well, and that

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<v Speaker 1>is why ABB, the electrification company out of Switzerland, is

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<v Speaker 1>buying a Roadtalk in a five point five billion dollar deal.

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<v Speaker 1>So that will enable ABB to expand its automation in

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<v Speaker 1>an electrification businesses and continue to benefit from this AI

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<v Speaker 1>boom from this spending on data centers that it has

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<v Speaker 1>been benefiting from for a while now. So the deal

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<v Speaker 1>is very much part of that strategy of continuing in

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<v Speaker 1>that direction. ABB has been trying to streamline its portfolio

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<v Speaker 1>towards that exposure to power grids, to energy and therefore

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<v Speaker 1>to that data center builder. And in that spirit, it's

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<v Speaker 1>sold its robotics division last year to soft Bank to

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<v Speaker 1>try and shift its focus to acquisitions of the kind

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<v Speaker 1>that it just did with road Talk, and see the

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<v Speaker 1>CEO ABB has actually said that the company has thirteen

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<v Speaker 1>billion dollars available for additional purchases, so we'll be watching

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<v Speaker 1>out for any other deals of that kind. And in

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<v Speaker 1>the meantime, road Talk shares, as you said, surging this

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<v Speaker 1>morning more than sixty percent.

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<v Speaker 3>Wow. Publicist, the advertising agency also gaining this morning.

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<v Speaker 1>Why yeah, so Publicist has raised its outlook this morning.

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<v Speaker 1>Also the sales came in above expectations, so that really

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<v Speaker 1>shows kind of resilience from that advertising company despite the

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<v Speaker 1>downturn and.

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<v Speaker 4>The weakness in advertising spend.

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<v Speaker 1>Of course, marketing is one of the first things to

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<v Speaker 1>go when money gets quite tight for companies, and so

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<v Speaker 1>there has been this clear downturn in advertising and marketing spend.

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<v Speaker 1>But the resources for Publicists show that this is a

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<v Speaker 1>company that's much more resilient than some of its peers.

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<v Speaker 1>It's also something that might bode well for a WPP

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<v Speaker 1>and have As, which are the other two big advertising

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<v Speaker 1>companies listed in Europe. But Publicist has also been a

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<v Speaker 1>very consistent outperformer, so maybe it is just better placed

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<v Speaker 1>to whether it's downturn than some of its peers.

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<v Speaker 4>It is worth noting that it's not all kind of rosy.

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<v Speaker 1>There's some challenges with weaker spending on IT services and

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<v Speaker 1>that's really hurting its sapient unit, which is a digital

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<v Speaker 1>consulting unit. So pretty good, but not kind of good

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<v Speaker 1>across the board.

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