WEBVTT - ASML Falls, Universal Music Group Rises, Broadcom Gains on Google Agreement

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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 2>take a.

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<v Speaker 3>Look at some of the stocks on the move today.

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<v Speaker 3>We can do that with Bloomberg's alexis Alexa Semenova. It's confusing.

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<v Speaker 3>I got a lot of names here, folks. Nobody's the same.

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<v Speaker 3>What's going on in the world of stock movers here today? Alexa?

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<v Speaker 1>So I am taking a look at one of the

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<v Speaker 1>companies selling off today. That is ASML looks like it's

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<v Speaker 1>down two point three percent right now. This is after

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<v Speaker 1>US lawmakers unveiled legislation legislation aimed to tighten restrictions on

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<v Speaker 1>chiptool exports to China. The goal here is to subject

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<v Speaker 1>Dutch and Japanese firms to the same curbs that American

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<v Speaker 1>companies already face, and also broaden the scope of technologies covered.

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<v Speaker 1>Analysts are estimating that this draft legislation could affect as

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<v Speaker 1>much as twenty percent of ASML sales based on their

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<v Speaker 1>twenty twenty five numbers and just looking at the Wall

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<v Speaker 1>Street reactions here, everyone is talking about how detrimental this

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<v Speaker 1>would be to the company. City says that we view

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<v Speaker 1>this prospect negatively with significant unintended consequences, and then JP

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<v Speaker 1>Morgan is saying that the new rule would take away

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<v Speaker 1>about twenty nine percent of earnings per share, which is

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<v Speaker 1>pretty substantial number there, hence that market reaction.

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<v Speaker 3>It's interesting because I'm looking at what the analysts have said.

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<v Speaker 3>City still has a buy rating. JP Morgan still has

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<v Speaker 3>an overweight on the stock.

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<v Speaker 1>You have to imagine, Yeah, if the move holds, perhaps

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<v Speaker 1>the cases draft legislation at this point, we'll see if

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<v Speaker 1>it actually goes through, and then I would imagine that

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<v Speaker 1>they adjust those ratings accordingly.

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<v Speaker 3>Okay, what's going on with Universal Music Group?

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<v Speaker 1>Yes, so billionaire investor Bill Ackman is proposing a bid

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<v Speaker 1>for this company.

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<v Speaker 3>This is the world's largest music company.

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<v Speaker 1>It houses the likes of Taylor Swift, Drake and Sabrina Carpenter,

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<v Speaker 1>some big performers there, and the goal is to increase

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<v Speaker 1>returns on one of the hedge Fund's biggest holdings, Pershing

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<v Speaker 1>Square Capital Management. That is Bill Lackman's firm. It currently

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<v Speaker 1>controls more than four point five percent of UMG shares,

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<v Speaker 1>so it is pushing to combine the record label with

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<v Speaker 1>a US listed acquisition vehicle, and the targeted value would

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<v Speaker 1>reflect a premium of seventy eight percent of the company's

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<v Speaker 1>closing price on Thursday. Looking at the stock reaction right now,

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<v Speaker 1>A listed shares up ten percent, so investors seem to

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<v Speaker 1>be happy about this.

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<v Speaker 3>He's going all in on this company in a big way.

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<v Speaker 3>How about broadcom s?

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<v Speaker 1>Yeah, so Broadcom climbing today after the chip maker announced

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<v Speaker 1>a long term agreement with Google to develop to develop

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<v Speaker 1>tensor processing units. This offers an alternative to technology from Nvidia.

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<v Speaker 1>They have a supply assurance pact that runs to twenty

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<v Speaker 1>thirty one. This is according to a filing on Monday.

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<v Speaker 1>The Who's CEO, Hawk Tan had previously discussed this on

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<v Speaker 1>an earnings call. This collaboration and he also said that

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<v Speaker 1>Broadcom expects that its AI chip is going to top

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<v Speaker 1>one hundred billion dollars in sales next year, and that

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<v Speaker 1>would make it a bigger competitor of course, to Nvideo.

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<v Speaker 2>The Stockmovers Report from Bloomberg Radio. Check back with us

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