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 1: Let's get to really a look at some of these
Speaker 1: stocks that are on the move today here in Europe.
Speaker 1: I'm Caroline Hepga and I'm joined by Bimberg Report to
Speaker 1: cloone Malay to look at the stocks moving this morning.
Speaker 1: Deutsche Telecom has been making some international phone calls. Is
Speaker 1: with M and A.
Speaker 3: Lawyers, absolutely big em and A news today. So Doge
Speaker 3: Telecom is said to be considering a full combination with
Speaker 3: its American armed T Mobile. So that would create a
Speaker 3: massive multinational telecom company, and it would also rank as
Speaker 3: the largest ever a public MNA deal. So Dodge Telecom
Speaker 3: is already a T Mobile's biggest shareholder with about a
Speaker 3: fifty three percent steak roughly, and Dodge Telecom has been
Speaker 3: discussing the idea of creating a single corporate group that
Speaker 3: would control the operations of both Dodge Telecom and Teamobile
Speaker 3: and would be jointly owned by the two companies current investors.
Speaker 3: And then this new entity would list in the US
Speaker 3: and on a major European exchange as well. So the
Speaker 3: talks are very much at an early stage still and
Speaker 3: there's a lot to be worked out, which might explain
Speaker 3: the slight weakness that we've seen in the shares this
Speaker 3: morning for Dodge Telecom, with analyst saying there are actually
Speaker 3: quite a few challenges. So, for example, there's limited synergies
Speaker 3: between the two, there's a lot of regulatory hurdles to
Speaker 3: be thinking about as well, and then there's also the
Speaker 3: fact that any deal would have to include a premium
Speaker 3: to convince Teamobile minority shareholders to accept exposure to European assets.
Speaker 3: So there's quite a few challenges to think about and
Speaker 3: to getting this deal across the line.
Speaker 1: Really Yeah, Look, I think cell phone charges are and
Speaker 1: businesses are so interesting. They're one of the massive European
Speaker 1: wins I would argue of the EU because for cell
Speaker 1: phones and lines are so inexpensive in Europe if you
Speaker 1: compare them to the US, we're on average for a
Speaker 1: phone you're spending seventy to one hundred dollars a month.
Speaker 1: In Europe, you can get you know, a line for
Speaker 1: ten twenty euros a month. Yeah, really interesting. So Deutsche
Speaker 1: Telecom ASM having a good earnings day.
Speaker 2: Yeah, having a great day.
Speaker 3: ASM shares hit a new record high this morning after
Speaker 3: it gave a really good second quarter forecast that was
Speaker 3: much better than expected and also a first quarter revenue
Speaker 3: b estimate. So one analyst said that the beat and
Speaker 3: raise was strong even by semiconductor standards, which I think
Speaker 3: is an important bit of context given the really massive
Speaker 3: rally that we've seen in chip makers and chip making
Speaker 3: equipment manufacturers lately. If we remember, ASML share has felt
Speaker 3: earlier this earning season because the guidance raise was actually
Speaker 3: seen as expected and very much priced in. So the
Speaker 3: fact that ASM is seeing these great performance today, it
Speaker 3: really shows that it managed to clear a very high bar,
Speaker 3: and that really underscores, of course, how strong, how resilient
Speaker 3: the demand for chip making equipment has been because of
Speaker 3: those billions and billions of dollars being poured into into
Speaker 3: the building of AI data centers.
Speaker 1: Yeah. Okay, so that ASM, which of course was spun
Speaker 1: out of ASML, but all the way back in the
Speaker 1: nineteen eighties. As for ABB data centers boosting that business.
Speaker 3: Yeah, So the AI build out that is benefiting ASM
Speaker 3: is also of course great news for companies that make
Speaker 3: electrical equipment, server X calling technologies, all of those things.
Speaker 3: So ABP is one of those companies. It makes the
Speaker 3: transformers that enable power grids to feed the energy needs
Speaker 3: of data centers, and that is of course in really
Speaker 3: high demand. And so this morning it raised this revenue
Speaker 3: expectations after reporting a very massive surgeon orders from data
Speaker 3: center customers. So it really goes to show that a
Speaker 3: resilience of those AI investments despite geopolitical uncertainties, and you
Speaker 3: know this is set to continue. We've got the four
Speaker 3: biggest spenders on AIS, Amazon, Microsoft, Alphabet and Meta. They
Speaker 3: are projected to spend more than six hundred billion dollars
Speaker 3: into projects in twenty twenty six, and so some of
Speaker 3: that money is going to be going to abb and
Speaker 3: also for other names in the sector. That's great news.
Speaker 3: So we've seen definitely some of that read across today
Speaker 3: to Schneider Electric, to look on, to Siemens, all of
Speaker 3: those names in the green because it seems that those
Speaker 3: AI investments are still very much happening.
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