1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,600 --> 00:00:18,279 Speaker 3: Let's take a look at some of the socks on 5 00:00:18,360 --> 00:00:20,560 Speaker 3: the move today here in Europe. On Caroline Hepgar with 6 00:00:20,720 --> 00:00:23,560 Speaker 3: Lizzie Burton, and we're joined by Bloomberg with Porta Clo Malay. 7 00:00:23,640 --> 00:00:26,880 Speaker 3: Good morning, Chloe. You've come with a theme to discuss 8 00:00:27,000 --> 00:00:30,000 Speaker 3: everything is big, So let's start with two companies who 9 00:00:30,040 --> 00:00:32,280 Speaker 3: could form the world's biggest miner. 10 00:00:32,560 --> 00:00:35,720 Speaker 1: Yeah, Soria Tinto and Glencore are in talks to create 11 00:00:35,760 --> 00:00:38,479 Speaker 1: the world's biggest mining company. And we're talking about a 12 00:00:38,800 --> 00:00:41,839 Speaker 1: combined value of more than two hundred billion dollars. This 13 00:00:41,960 --> 00:00:45,320 Speaker 1: is really, really massive, and this is coming just a 14 00:00:45,360 --> 00:00:47,800 Speaker 1: little over a year after some initial talks between the 15 00:00:47,840 --> 00:00:51,200 Speaker 1: two which had failed because of some disagreements over evaluation. 16 00:00:51,800 --> 00:00:54,880 Speaker 1: And this new effort to merge is coming at a 17 00:00:54,920 --> 00:00:58,160 Speaker 1: really interesting time because this is when the mining industry 18 00:00:58,280 --> 00:01:00,320 Speaker 1: is kind of taken by a sort of deal fever, 19 00:01:00,440 --> 00:01:04,559 Speaker 1: takeover fever, because companies really cannot get enough of copper 20 00:01:04,600 --> 00:01:07,320 Speaker 1: and they want more access to it. That is because 21 00:01:07,319 --> 00:01:10,840 Speaker 1: copper is a metal that's absolutely essential to the energy 22 00:01:10,840 --> 00:01:15,160 Speaker 1: transition and also the artificial intelligence boom, and it has 23 00:01:15,200 --> 00:01:19,000 Speaker 1: been hitting new records records lately because there are concerns 24 00:01:19,040 --> 00:01:22,400 Speaker 1: around whether or not there will be enough supply. And 25 00:01:22,440 --> 00:01:26,120 Speaker 1: now this potential deal is being seen by investors as 26 00:01:26,160 --> 00:01:29,320 Speaker 1: making sense, as being quite doable, but they are some 27 00:01:29,480 --> 00:01:32,640 Speaker 1: hurdles that are worth thinking about. The big one is 28 00:01:32,680 --> 00:01:35,320 Speaker 1: really around glen Core's coal business, so that's a big 29 00:01:35,360 --> 00:01:38,639 Speaker 1: part of what glen Core does. But this is something 30 00:01:38,680 --> 00:01:42,039 Speaker 1: that riatt Into has actually exited recently because it wanted 31 00:01:42,080 --> 00:01:45,160 Speaker 1: to refocus on iron ore and the copper. So that's 32 00:01:45,520 --> 00:01:47,400 Speaker 1: going to be maybe a little bit of a sticking point. 33 00:01:47,600 --> 00:01:51,240 Speaker 1: And maybe we have this uncertainty reflecting in those shares 34 00:01:51,280 --> 00:01:54,840 Speaker 1: this morning with kind of diverging performances between the two 35 00:01:54,880 --> 00:01:57,000 Speaker 1: where we have reatt into a weak up. Then Glenn 36 00:01:57,000 --> 00:01:59,920 Speaker 1: call up massively this morning, so definitely want it to 37 00:02:00,040 --> 00:02:01,280 Speaker 1: watch going forward as well. 38 00:02:01,720 --> 00:02:04,320 Speaker 3: Also on the move this morning, the biggest company in 39 00:02:04,400 --> 00:02:06,000 Speaker 3: Europe Chlory and that's ASML. 40 00:02:06,320 --> 00:02:08,959 Speaker 1: Yeah, so SML is higher because of the numbers from 41 00:02:09,000 --> 00:02:13,639 Speaker 1: TSMC were very reassuring. So the revenue from TSMC came 42 00:02:13,680 --> 00:02:17,120 Speaker 1: in ahead of estimates, and that really reassured investors that 43 00:02:17,200 --> 00:02:20,680 Speaker 1: AI spending was going to be sustainable continue in twenty 44 00:02:20,720 --> 00:02:24,560 Speaker 1: twenty six despite all of the fears around the AI bubble. 45 00:02:25,040 --> 00:02:28,320 Speaker 1: Of course, those have not completely gone away. There's still 46 00:02:28,360 --> 00:02:33,079 Speaker 1: concerns around the fact that the construction of AI infrastructure 47 00:02:33,240 --> 00:02:36,760 Speaker 1: might be outpacing the actual adoption of AI. The fact 48 00:02:36,800 --> 00:02:39,680 Speaker 1: that we keep seeing circular deals in that sector isn't 49 00:02:39,720 --> 00:02:43,880 Speaker 1: super reassuring either, But those numbers from TSMC have been 50 00:02:44,120 --> 00:02:47,680 Speaker 1: reassuring and that has been positive for chip makers and 51 00:02:47,880 --> 00:02:51,720 Speaker 1: names across Europe this morning, and in particular ASML, which 52 00:02:51,760 --> 00:02:54,240 Speaker 1: is a major supplier to TSMC, so it has kind 53 00:02:54,280 --> 00:02:58,080 Speaker 1: of direct exposure there. And lately there have been comments 54 00:02:58,080 --> 00:03:00,799 Speaker 1: from a lot of different big companies within that space 55 00:03:00,840 --> 00:03:03,760 Speaker 1: that have been maybe enough to convince investors that things 56 00:03:03,800 --> 00:03:05,560 Speaker 1: are fine for now in that AI sector. 57 00:03:05,919 --> 00:03:09,000 Speaker 3: Okay, that's interesting. And so the last of the big themes, 58 00:03:09,240 --> 00:03:12,880 Speaker 3: the UK's big retailers. They suffered quite a bit over 59 00:03:12,960 --> 00:03:15,280 Speaker 3: Christmas though in particular Sainsbury's. 60 00:03:15,400 --> 00:03:16,200 Speaker 2: Yeah, absolutely so. 61 00:03:16,240 --> 00:03:19,320 Speaker 1: We talked about Tesco yesterday with the Christmas cells coming 62 00:03:19,320 --> 00:03:22,960 Speaker 1: in lower and expected also a lackluster performance from m ands. 63 00:03:22,960 --> 00:03:25,760 Speaker 1: We saw as well yesterday and today we had Sainsbury's 64 00:03:25,800 --> 00:03:28,520 Speaker 1: numbers and they really confirm that trend. So they had 65 00:03:28,560 --> 00:03:32,200 Speaker 1: weaker than expected cells over Christmas, and of course that 66 00:03:32,240 --> 00:03:35,600 Speaker 1: it's a really important period for supermarkets and this really 67 00:03:35,680 --> 00:03:38,560 Speaker 1: seems to confirm that shoppers that have been dealing with 68 00:03:38,640 --> 00:03:41,520 Speaker 1: really stubborn food inflation, we're a little bit more keen 69 00:03:41,600 --> 00:03:45,960 Speaker 1: to go and get cheaper festive shops at RD and 70 00:03:46,040 --> 00:03:48,280 Speaker 1: Liddle rather than spend a little bit more money at 71 00:03:48,280 --> 00:03:51,200 Speaker 1: Tesco and Sainsbury's. With you know, we had Ardi and 72 00:03:51,240 --> 00:03:54,080 Speaker 1: Liddle actually having record Christmas cells, so there's a really 73 00:03:54,400 --> 00:03:57,760 Speaker 1: sharp contrast between the two. So now the pressure is 74 00:03:57,840 --> 00:04:01,720 Speaker 1: on for Tesco Sainsbury's mns. You adapt to watchhop as one, 75 00:04:01,800 --> 00:04:05,280 Speaker 1: which is obviously price matching more loyalty programs, cheaper things, 76 00:04:06,040 --> 00:04:08,880 Speaker 1: but you know, fill inflation is expected to remain sticky, so. 77 00:04:08,800 --> 00:04:12,800 Speaker 2: That'll be a problem as well. The Stock Movers Report 78 00:04:13,080 --> 00:04:16,280 Speaker 2: from Bloomberg Radio. Check back with us throughout the day 79 00:04:16,320 --> 00:04:19,240 Speaker 2: for the latest roundup of companies making news on Wall 80 00:04:19,240 --> 00:04:22,760 Speaker 2: Street and for the latest market moving headlines. Listen to 81 00:04:22,800 --> 00:04:26,960 Speaker 2: Bloomberg Radio Live. Catch us on YouTube. Bloomberg dot com 82 00:04:27,000 --> 00:04:30,880 Speaker 2: and on Applecarplay and Android Auto with the Bloomberg Business app.