Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the socks on
Speaker 3: the move today here in Europe. On Caroline Hepgar with
Speaker 3: Lizzie Burton, and we're joined by Bloomberg with Porta Clo Malay.
Speaker 3: Good morning, Chloe. You've come with a theme to discuss
Speaker 3: everything is big, So let's start with two companies who
Speaker 3: could form the world's biggest miner.
Speaker 1: Yeah, Soria Tinto and Glencore are in talks to create
Speaker 1: the world's biggest mining company. And we're talking about a
Speaker 1: combined value of more than two hundred billion dollars. This
Speaker 1: is really, really massive, and this is coming just a
Speaker 1: little over a year after some initial talks between the
Speaker 1: two which had failed because of some disagreements over evaluation.
Speaker 1: And this new effort to merge is coming at a
Speaker 1: really interesting time because this is when the mining industry
Speaker 1: is kind of taken by a sort of deal fever,
Speaker 1: takeover fever, because companies really cannot get enough of copper
Speaker 1: and they want more access to it. That is because
Speaker 1: copper is a metal that's absolutely essential to the energy
Speaker 1: transition and also the artificial intelligence boom, and it has
Speaker 1: been hitting new records records lately because there are concerns
Speaker 1: around whether or not there will be enough supply. And
Speaker 1: now this potential deal is being seen by investors as
Speaker 1: making sense, as being quite doable, but they are some
Speaker 1: hurdles that are worth thinking about. The big one is
Speaker 1: really around glen Core's coal business, so that's a big
Speaker 1: part of what glen Core does. But this is something
Speaker 1: that riatt Into has actually exited recently because it wanted
Speaker 1: to refocus on iron ore and the copper. So that's
Speaker 1: going to be maybe a little bit of a sticking point.
Speaker 1: And maybe we have this uncertainty reflecting in those shares
Speaker 1: this morning with kind of diverging performances between the two
Speaker 1: where we have reatt into a weak up. Then Glenn
Speaker 1: call up massively this morning, so definitely want it to
Speaker 1: watch going forward as well.
Speaker 3: Also on the move this morning, the biggest company in
Speaker 3: Europe Chlory and that's ASML.
Speaker 1: Yeah, so SML is higher because of the numbers from
Speaker 1: TSMC were very reassuring. So the revenue from TSMC came
Speaker 1: in ahead of estimates, and that really reassured investors that
Speaker 1: AI spending was going to be sustainable continue in twenty
Speaker 1: twenty six despite all of the fears around the AI bubble.
Speaker 1: Of course, those have not completely gone away. There's still
Speaker 1: concerns around the fact that the construction of AI infrastructure
Speaker 1: might be outpacing the actual adoption of AI. The fact
Speaker 1: that we keep seeing circular deals in that sector isn't
Speaker 1: super reassuring either, But those numbers from TSMC have been
Speaker 1: reassuring and that has been positive for chip makers and
Speaker 1: names across Europe this morning, and in particular ASML, which
Speaker 1: is a major supplier to TSMC, so it has kind
Speaker 1: of direct exposure there. And lately there have been comments
Speaker 1: from a lot of different big companies within that space
Speaker 1: that have been maybe enough to convince investors that things
Speaker 1: are fine for now in that AI sector.
Speaker 3: Okay, that's interesting. And so the last of the big themes,
Speaker 3: the UK's big retailers. They suffered quite a bit over
Speaker 3: Christmas though in particular Sainsbury's.
Speaker 2: Yeah, absolutely so.
Speaker 1: We talked about Tesco yesterday with the Christmas cells coming
Speaker 1: in lower and expected also a lackluster performance from m ands.
Speaker 1: We saw as well yesterday and today we had Sainsbury's
Speaker 1: numbers and they really confirm that trend. So they had
Speaker 1: weaker than expected cells over Christmas, and of course that
Speaker 1: it's a really important period for supermarkets and this really
Speaker 1: seems to confirm that shoppers that have been dealing with
Speaker 1: really stubborn food inflation, we're a little bit more keen
Speaker 1: to go and get cheaper festive shops at RD and
Speaker 1: Liddle rather than spend a little bit more money at
Speaker 1: Tesco and Sainsbury's. With you know, we had Ardi and
Speaker 1: Liddle actually having record Christmas cells, so there's a really
Speaker 1: sharp contrast between the two. So now the pressure is
Speaker 1: on for Tesco Sainsbury's mns. You adapt to watchhop as one,
Speaker 1: which is obviously price matching more loyalty programs, cheaper things,
Speaker 1: but you know, fill inflation is expected to remain sticky, so.
Speaker 2: That'll be a problem as well. The Stock Movers Report
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