WEBVTT - Humana Climbs; Broadcom Rises After Supply Pact With Google; Foldable iPhone Hits Engineering Snags

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.360 --> 0:00:18.520
<v Speaker 1>Let's take a look at some stocks on the move today.

0:00:18.560 --> 0:00:21.959
<v Speaker 1>I'm Nathan Hager, joined by Bloomberg Stan Curtis with the

0:00:22.079 --> 0:00:26.360
<v Speaker 1>update on Universal Music Group. A big bid this morning,

0:00:27.080 --> 0:00:30.560
<v Speaker 1>with one big name potentially thinking of buying the company.

0:00:30.560 --> 0:00:31.600
<v Speaker 1>Good morning Dan.

0:00:32.159 --> 0:00:35.360
<v Speaker 3>Good morning Nathan. That's right. Billionaire activist Bill Ackman is

0:00:35.360 --> 0:00:38.280
<v Speaker 3>proposing a deal with Universal Media Group which could be

0:00:38.400 --> 0:00:43.159
<v Speaker 3>worth sixty five billion dollars. Ackman's Pershing Square proposed a

0:00:43.200 --> 0:00:46.199
<v Speaker 3>merger with the company to merge the company with a

0:00:46.320 --> 0:00:50.800
<v Speaker 3>US based acquisition company, effectively moving the listing from Amsterdam

0:00:50.880 --> 0:00:54.600
<v Speaker 3>to New York. Pershing's proposal would give UMG shareholders just

0:00:54.720 --> 0:00:57.240
<v Speaker 3>over five years per share plus a stake in the

0:00:57.280 --> 0:01:01.120
<v Speaker 3>new company. Those shares are up of ten percent in

0:01:01.240 --> 0:01:04.640
<v Speaker 3>Amsterdam trading. They're around nineteen year ows a share That

0:01:04.840 --> 0:01:09.720
<v Speaker 3>is well below the approximately thirty euro a share value

0:01:09.720 --> 0:01:12.200
<v Speaker 3>that Ackman has assigned to this deal. And that's because

0:01:12.240 --> 0:01:15.520
<v Speaker 3>of uncertainty it looms over the company. Because French billionaire

0:01:15.720 --> 0:01:19.520
<v Speaker 3>Vincent Bulleray has an eighteen percent steak and an extra

0:01:19.600 --> 0:01:22.560
<v Speaker 3>ten percent steak if you add in his Vivendi holding

0:01:23.760 --> 0:01:27.000
<v Speaker 3>proxy steak, and that has been that is leading to

0:01:27.040 --> 0:01:31.320
<v Speaker 3>some certainty, uncertainty over whether this deal will actually get done.

0:01:31.440 --> 0:01:33.920
<v Speaker 3>The shares are surging most nearly three years, but they

0:01:33.920 --> 0:01:36.479
<v Speaker 3>are still down over thirty percent from last year's high.

0:01:36.600 --> 0:01:38.840
<v Speaker 1>All right, well, well we wait for that possibility of

0:01:39.000 --> 0:01:42.240
<v Speaker 1>Universal music shifting. It's listing to New York. The stocks

0:01:42.280 --> 0:01:45.080
<v Speaker 1>that are trading on Wall Street to the upside the

0:01:45.120 --> 0:01:48.919
<v Speaker 1>most this morning, really dominated by health insurance.

0:01:49.680 --> 0:01:50.160
<v Speaker 2>That's right.

0:01:50.280 --> 0:01:53.800
<v Speaker 3>So Humana is up nine percent in the pre market

0:01:54.120 --> 0:01:59.400
<v Speaker 3>market ticker hum Other insurance companies CBS six percent, and

0:01:59.520 --> 0:02:02.920
<v Speaker 3>United Health up over five percent in the pre market.

0:02:03.080 --> 0:02:06.120
<v Speaker 3>That says the US Medicare program says it will pay

0:02:06.160 --> 0:02:08.640
<v Speaker 3>private insurres nearly two and a half percent more in

0:02:08.680 --> 0:02:12.639
<v Speaker 3>twenty twenty seven. That was higher the initial proposal in January,

0:02:12.840 --> 0:02:15.880
<v Speaker 3>which was originally going to be a flat rate. JP

0:02:16.000 --> 0:02:18.560
<v Speaker 3>Morgan TD Cowan analysts were looking for a one to

0:02:18.560 --> 0:02:21.520
<v Speaker 3>one point five increase in the figure. So this coming

0:02:21.560 --> 0:02:25.880
<v Speaker 3>in stronger than what Wall Street had expected. That level

0:02:25.919 --> 0:02:29.120
<v Speaker 3>influences how much of nearly half a trillion dollars flow

0:02:29.200 --> 0:02:32.359
<v Speaker 3>through to private healthcare plan plans, and the change is

0:02:32.400 --> 0:02:36.280
<v Speaker 3>expected to add over thirteen billion dollars in additional payments

0:02:36.400 --> 0:02:39.720
<v Speaker 3>to Medicare and to Medicare advantage plans. So this is

0:02:39.760 --> 0:02:43.600
<v Speaker 3>a positive as positive sign for those insurers this morning.

0:02:43.600 --> 0:02:47.600
<v Speaker 1>And some positive signs as well for Broadcom some potential

0:02:47.639 --> 0:02:48.840
<v Speaker 1>deal news of a sort.

0:02:48.639 --> 0:02:52.440
<v Speaker 3>There, that's right, So Broadcom announced a long term agreement

0:02:52.480 --> 0:02:56.320
<v Speaker 3>with Google to develop and supply something called tensor processing units.

0:02:56.360 --> 0:02:58.840
<v Speaker 3>These are chips that were originally used for search but

0:02:58.960 --> 0:03:03.000
<v Speaker 3>have found renewed demand a from AI users. Shares of

0:03:03.040 --> 0:03:06.440
<v Speaker 3>Broadcom take our avgo up nearly three percent in the

0:03:06.480 --> 0:03:09.959
<v Speaker 3>pre market. Alphabet has just turned flat. That was trading

0:03:10.040 --> 0:03:13.920
<v Speaker 3>up one percent earlier this morning. This deal has it

0:03:13.960 --> 0:03:17.239
<v Speaker 3>so Broadcom will take Google specifications and create fully formed

0:03:17.240 --> 0:03:20.400
<v Speaker 3>designs that can then be sent for manufacturing, and both

0:03:20.440 --> 0:03:24.320
<v Speaker 3>companies will work with Anthropic, the AI company behind Claude,

0:03:24.320 --> 0:03:26.880
<v Speaker 3>which is considered one of the best AI models right now,

0:03:27.080 --> 0:03:29.400
<v Speaker 3>and that will eventually give the AI company access to

0:03:29.440 --> 0:03:33.079
<v Speaker 3>three point five gigawatts of computing power. Nvidia is down

0:03:33.160 --> 0:03:37.320
<v Speaker 3>over one percent as its chips face increasing competition.

0:03:37.080 --> 0:03:39.720
<v Speaker 1>And just quickly, Dan, why are we seeing Apple shares

0:03:39.720 --> 0:03:40.520
<v Speaker 1>in the red this morning?

0:03:40.920 --> 0:03:43.160
<v Speaker 3>So we have a report from Nike saying that Apple's

0:03:43.200 --> 0:03:48.040
<v Speaker 3>foldable iPhone has hit engineering snags that has the shares

0:03:48.080 --> 0:03:50.760
<v Speaker 3>down about one percent in the pre market. The report

0:03:51.080 --> 0:03:54.320
<v Speaker 3>cited unidentified people saying the first shipments could be delayed

0:03:54.320 --> 0:03:57.040
<v Speaker 3>by months. Apple is under pressure to catch up to

0:03:57.080 --> 0:04:00.200
<v Speaker 3>competitor Samsung, which released its first foldable phone over six

0:04:00.320 --> 0:04:04.520
<v Speaker 3>years ago. However, those delays are seen potentially pushing this

0:04:04.600 --> 0:04:06.000
<v Speaker 3>release out even farther.

0:04:07.040 --> 0:04:11.280
<v Speaker 2>This Stockmover's report from Bloomberg Radio. Check back with us

0:04:11.280 --> 0:04:14.080
<v Speaker 2>throughout the day for the latest roundup of companies making

0:04:14.160 --> 0:04:17.800
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:04:18.000 --> 0:04:21.960
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:22.040 --> 0:04:25.120
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:25.160 --> 0:04:26.520
<v Speaker 2>Bloomberg Business app.