WEBVTT - Deutsche Telekom, ASM, ABB 

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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 1>Let's get to really a look at some of these

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<v Speaker 1>stocks that are on the move today here in Europe.

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<v Speaker 1>I'm Caroline Hepga and I'm joined by Bimberg Report to

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<v Speaker 1>cloone Malay to look at the stocks moving this morning.

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<v Speaker 1>Deutsche Telecom has been making some international phone calls. Is

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<v Speaker 1>with M and A.

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<v Speaker 3>Lawyers, absolutely big em and A news today. So Doge

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<v Speaker 3>Telecom is said to be considering a full combination with

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<v Speaker 3>its American armed T Mobile. So that would create a

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<v Speaker 3>massive multinational telecom company, and it would also rank as

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<v Speaker 3>the largest ever a public MNA deal. So Dodge Telecom

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<v Speaker 3>is already a T Mobile's biggest shareholder with about a

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<v Speaker 3>fifty three percent steak roughly, and Dodge Telecom has been

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<v Speaker 3>discussing the idea of creating a single corporate group that

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<v Speaker 3>would control the operations of both Dodge Telecom and Teamobile

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<v Speaker 3>and would be jointly owned by the two companies current investors.

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<v Speaker 3>And then this new entity would list in the US

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<v Speaker 3>and on a major European exchange as well. So the

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<v Speaker 3>talks are very much at an early stage still and

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<v Speaker 3>there's a lot to be worked out, which might explain

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<v Speaker 3>the slight weakness that we've seen in the shares this

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<v Speaker 3>morning for Dodge Telecom, with analyst saying there are actually

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<v Speaker 3>quite a few challenges. So, for example, there's limited synergies

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<v Speaker 3>between the two, there's a lot of regulatory hurdles to

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<v Speaker 3>be thinking about as well, and then there's also the

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<v Speaker 3>fact that any deal would have to include a premium

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<v Speaker 3>to convince Teamobile minority shareholders to accept exposure to European assets.

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<v Speaker 3>So there's quite a few challenges to think about and

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<v Speaker 3>to getting this deal across the line.

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<v Speaker 1>Really Yeah, Look, I think cell phone charges are and

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<v Speaker 1>businesses are so interesting. They're one of the massive European

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<v Speaker 1>wins I would argue of the EU because for cell

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<v Speaker 1>phones and lines are so inexpensive in Europe if you

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<v Speaker 1>compare them to the US, we're on average for a

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<v Speaker 1>phone you're spending seventy to one hundred dollars a month.

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<v Speaker 1>In Europe, you can get you know, a line for

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<v Speaker 1>ten twenty euros a month. Yeah, really interesting. So Deutsche

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<v Speaker 1>Telecom ASM having a good earnings day.

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<v Speaker 2>Yeah, having a great day.

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<v Speaker 3>ASM shares hit a new record high this morning after

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<v Speaker 3>it gave a really good second quarter forecast that was

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<v Speaker 3>much better than expected and also a first quarter revenue

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<v Speaker 3>b estimate. So one analyst said that the beat and

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<v Speaker 3>raise was strong even by semiconductor standards, which I think

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<v Speaker 3>is an important bit of context given the really massive

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<v Speaker 3>rally that we've seen in chip makers and chip making

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<v Speaker 3>equipment manufacturers lately. If we remember, ASML share has felt

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<v Speaker 3>earlier this earning season because the guidance raise was actually

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<v Speaker 3>seen as expected and very much priced in. So the

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<v Speaker 3>fact that ASM is seeing these great performance today, it

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<v Speaker 3>really shows that it managed to clear a very high bar,

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<v Speaker 3>and that really underscores, of course, how strong, how resilient

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<v Speaker 3>the demand for chip making equipment has been because of

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<v Speaker 3>those billions and billions of dollars being poured into into

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<v Speaker 3>the building of AI data centers.

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<v Speaker 1>Yeah. Okay, so that ASM, which of course was spun

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<v Speaker 1>out of ASML, but all the way back in the

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<v Speaker 1>nineteen eighties. As for ABB data centers boosting that business.

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<v Speaker 3>Yeah, So the AI build out that is benefiting ASM

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<v Speaker 3>is also of course great news for companies that make

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<v Speaker 3>electrical equipment, server X calling technologies, all of those things.

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<v Speaker 3>So ABP is one of those companies. It makes the

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<v Speaker 3>transformers that enable power grids to feed the energy needs

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<v Speaker 3>of data centers, and that is of course in really

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<v Speaker 3>high demand. And so this morning it raised this revenue

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<v Speaker 3>expectations after reporting a very massive surgeon orders from data

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<v Speaker 3>center customers. So it really goes to show that a

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<v Speaker 3>resilience of those AI investments despite geopolitical uncertainties, and you

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<v Speaker 3>know this is set to continue. We've got the four

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<v Speaker 3>biggest spenders on AIS, Amazon, Microsoft, Alphabet and Meta. They

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<v Speaker 3>are projected to spend more than six hundred billion dollars

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<v Speaker 3>into projects in twenty twenty six, and so some of

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<v Speaker 3>that money is going to be going to abb and

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<v Speaker 3>also for other names in the sector. That's great news.

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<v Speaker 3>So we've seen definitely some of that read across today

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<v Speaker 3>to Schneider Electric, to look on, to Siemens, all of

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<v Speaker 3>those names in the green because it seems that those

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<v Speaker 3>AI investments are still very much happening.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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