WEBVTT - Glencore Talks, ASML Gains, Sainsburys Suffers

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

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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

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<v Speaker 3>Let's take a look at some of the socks on

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<v Speaker 3>the move today here in Europe. On Caroline Hepgar with

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<v Speaker 3>Lizzie Burton, and we're joined by Bloomberg with Porta Clo Malay.

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<v Speaker 3>Good morning, Chloe. You've come with a theme to discuss

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<v Speaker 3>everything is big, So let's start with two companies who

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<v Speaker 3>could form the world's biggest miner.

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<v Speaker 1>Yeah, Soria Tinto and Glencore are in talks to create

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<v Speaker 1>the world's biggest mining company. And we're talking about a

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<v Speaker 1>combined value of more than two hundred billion dollars. This

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<v Speaker 1>is really, really massive, and this is coming just a

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<v Speaker 1>little over a year after some initial talks between the

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<v Speaker 1>two which had failed because of some disagreements over evaluation.

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<v Speaker 1>And this new effort to merge is coming at a

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<v Speaker 1>really interesting time because this is when the mining industry

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<v Speaker 1>is kind of taken by a sort of deal fever,

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<v Speaker 1>takeover fever, because companies really cannot get enough of copper

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<v Speaker 1>and they want more access to it. That is because

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<v Speaker 1>copper is a metal that's absolutely essential to the energy

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<v Speaker 1>transition and also the artificial intelligence boom, and it has

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<v Speaker 1>been hitting new records records lately because there are concerns

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<v Speaker 1>around whether or not there will be enough supply. And

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<v Speaker 1>now this potential deal is being seen by investors as

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<v Speaker 1>making sense, as being quite doable, but they are some

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<v Speaker 1>hurdles that are worth thinking about. The big one is

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<v Speaker 1>really around glen Core's coal business, so that's a big

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<v Speaker 1>part of what glen Core does. But this is something

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<v Speaker 1>that riatt Into has actually exited recently because it wanted

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<v Speaker 1>to refocus on iron ore and the copper. So that's

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<v Speaker 1>going to be maybe a little bit of a sticking point.

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<v Speaker 1>And maybe we have this uncertainty reflecting in those shares

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<v Speaker 1>this morning with kind of diverging performances between the two

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<v Speaker 1>where we have reatt into a weak up. Then Glenn

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<v Speaker 1>call up massively this morning, so definitely want it to

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<v Speaker 1>watch going forward as well.

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<v Speaker 3>Also on the move this morning, the biggest company in

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<v Speaker 3>Europe Chlory and that's ASML.

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<v Speaker 1>Yeah, so SML is higher because of the numbers from

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<v Speaker 1>TSMC were very reassuring. So the revenue from TSMC came

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<v Speaker 1>in ahead of estimates, and that really reassured investors that

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<v Speaker 1>AI spending was going to be sustainable continue in twenty

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<v Speaker 1>twenty six despite all of the fears around the AI bubble.

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<v Speaker 1>Of course, those have not completely gone away. There's still

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<v Speaker 1>concerns around the fact that the construction of AI infrastructure

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<v Speaker 1>might be outpacing the actual adoption of AI. The fact

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<v Speaker 1>that we keep seeing circular deals in that sector isn't

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<v Speaker 1>super reassuring either, But those numbers from TSMC have been

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<v Speaker 1>reassuring and that has been positive for chip makers and

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<v Speaker 1>names across Europe this morning, and in particular ASML, which

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<v Speaker 1>is a major supplier to TSMC, so it has kind

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<v Speaker 1>of direct exposure there. And lately there have been comments

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<v Speaker 1>from a lot of different big companies within that space

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<v Speaker 1>that have been maybe enough to convince investors that things

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<v Speaker 1>are fine for now in that AI sector.

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<v Speaker 3>Okay, that's interesting. And so the last of the big themes,

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<v Speaker 3>the UK's big retailers. They suffered quite a bit over

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<v Speaker 3>Christmas though in particular Sainsbury's.

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<v Speaker 2>Yeah, absolutely so.

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<v Speaker 1>We talked about Tesco yesterday with the Christmas cells coming

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<v Speaker 1>in lower and expected also a lackluster performance from m ands.

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<v Speaker 1>We saw as well yesterday and today we had Sainsbury's

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<v Speaker 1>numbers and they really confirm that trend. So they had

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<v Speaker 1>weaker than expected cells over Christmas, and of course that

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<v Speaker 1>it's a really important period for supermarkets and this really

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<v Speaker 1>seems to confirm that shoppers that have been dealing with

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<v Speaker 1>really stubborn food inflation, we're a little bit more keen

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<v Speaker 1>to go and get cheaper festive shops at RD and

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<v Speaker 1>Liddle rather than spend a little bit more money at

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<v Speaker 1>Tesco and Sainsbury's. With you know, we had Ardi and

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<v Speaker 1>Liddle actually having record Christmas cells, so there's a really

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<v Speaker 1>sharp contrast between the two. So now the pressure is

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<v Speaker 1>on for Tesco Sainsbury's mns. You adapt to watchhop as one,

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<v Speaker 1>which is obviously price matching more loyalty programs, cheaper things,

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<v Speaker 1>but you know, fill inflation is expected to remain sticky, so.

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<v Speaker 2>That'll be a problem as well. The Stock Movers Report

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<v Speaker 2>from Bloomberg Radio. Check back with us throughout the day

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