WEBVTT - TSMC Falls, Kioxia Dips, Seven & I Gains 

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.680 --> 0:00:18.400
<v Speaker 3>Let's take a look at some stocks on the move

0:00:18.440 --> 0:00:21.279
<v Speaker 3>today in Asia. I'm Stephen Carroll with Caroline Hebcker, and

0:00:21.320 --> 0:00:24.439
<v Speaker 3>we're joined by Bloomberg Equities reporter Winnie Sue when he

0:00:24.520 --> 0:00:29.000
<v Speaker 3>let's start them with TSMC shares lower today despite yesterday's

0:00:29.040 --> 0:00:30.640
<v Speaker 3>upbeat results.

0:00:30.920 --> 0:00:34.760
<v Speaker 1>Yeah, exactly, down seven point three percent, and that is

0:00:34.880 --> 0:00:37.800
<v Speaker 1>the worst that it has seen in about a year now.

0:00:37.880 --> 0:00:38.600
<v Speaker 3>The results.

0:00:38.880 --> 0:00:41.880
<v Speaker 1>When we talked about earnings yesterday, it was pretty positive.

0:00:41.920 --> 0:00:44.599
<v Speaker 1>But it really is the forward looking part of it

0:00:44.680 --> 0:00:48.640
<v Speaker 1>that has been raising a bit of concerns, especially around

0:00:48.760 --> 0:00:52.560
<v Speaker 1>its spending. So kpex coming at sixty to sixty four

0:00:52.600 --> 0:00:55.800
<v Speaker 1>billion US dollars for twenty twenty six, that is at

0:00:55.920 --> 0:00:59.400
<v Speaker 1>least four billion US dollars higher than the previous forecast.

0:00:59.800 --> 0:01:03.560
<v Speaker 1>The question is will there be enough demand to really

0:01:03.640 --> 0:01:06.760
<v Speaker 1>be able to justify these spending and if this is

0:01:06.800 --> 0:01:10.960
<v Speaker 1>really running a little bit faster ahead of itself even

0:01:11.360 --> 0:01:14.800
<v Speaker 1>and another concern that we're also hearing is actually with

0:01:14.920 --> 0:01:18.920
<v Speaker 1>the profit margin, a growth margin at sixty seven point

0:01:19.000 --> 0:01:23.679
<v Speaker 1>seven percent. That is meeting average estimate, but still coming

0:01:23.800 --> 0:01:27.679
<v Speaker 1>below the street's highest estimate. So you really see that

0:01:27.720 --> 0:01:33.160
<v Speaker 1>investors are very difficult to please these days, even when

0:01:33.280 --> 0:01:36.760
<v Speaker 1>earnings are quite on the positive side. Now this is

0:01:36.880 --> 0:01:40.280
<v Speaker 1>dragging down the broader tie X index down six point

0:01:40.360 --> 0:01:43.600
<v Speaker 1>five percent, and we have the Taiwanese gauge entering a

0:01:43.680 --> 0:01:48.040
<v Speaker 1>technical correction today just because TSMC accounts for forty percent

0:01:48.360 --> 0:01:50.800
<v Speaker 1>of the overallweting of the Taiwanese benchmark.

0:01:51.400 --> 0:01:55.200
<v Speaker 4>Okay, so that after TSMC and what's been happening this

0:01:55.320 --> 0:01:59.000
<v Speaker 4>morning with those stocks slumping, there's also been a big

0:01:59.040 --> 0:02:04.720
<v Speaker 4>big decline in of Kiyoshia Kyokshia. What is driving that?

0:02:05.880 --> 0:02:09.120
<v Speaker 1>Yeah, exactly, it's just this very broad chip sell off

0:02:09.120 --> 0:02:12.160
<v Speaker 1>that we are seeing. Honestly, you would have expected today

0:02:12.240 --> 0:02:15.160
<v Speaker 1>to be a quieter day when the South Korea market

0:02:15.240 --> 0:02:18.000
<v Speaker 1>is on holiday, but in fact we are seeing the

0:02:18.040 --> 0:02:22.240
<v Speaker 1>pain being felt by the other countries. And you know,

0:02:22.440 --> 0:02:26.520
<v Speaker 1>Kiyokxia is in fact a flesh memory maker in Japan,

0:02:26.720 --> 0:02:31.480
<v Speaker 1>and it saw shares plunging sixteen percent today on these

0:02:31.520 --> 0:02:36.320
<v Speaker 1>concerned around the AI spending. Now, another couple factors here

0:02:36.440 --> 0:02:39.480
<v Speaker 1>is First of all, it has risen at one point

0:02:39.520 --> 0:02:43.880
<v Speaker 1>six hundred percent this year and on that AI boom,

0:02:43.880 --> 0:02:46.680
<v Speaker 1>and still it's up about four hundred percent at this point,

0:02:46.760 --> 0:02:50.080
<v Speaker 1>so a bit of profit taking still justifies it. But

0:02:50.360 --> 0:02:54.320
<v Speaker 1>remember the market cap is in fact seeing you know,

0:02:54.360 --> 0:02:57.160
<v Speaker 1>it down about fifty percent in just the past month,

0:02:57.360 --> 0:02:59.960
<v Speaker 1>so you can see that investors are getting quite sensitive

0:03:00.320 --> 0:03:04.720
<v Speaker 1>where this AI trade is really going. And we when

0:03:04.720 --> 0:03:07.880
<v Speaker 1>we look at another factor, we did also hear that Bane,

0:03:07.960 --> 0:03:12.600
<v Speaker 1>which was a big investor in Kioxia, actually also exited recently,

0:03:12.720 --> 0:03:15.960
<v Speaker 1>so that might mean that there can be a market

0:03:16.520 --> 0:03:19.720
<v Speaker 1>market peak coming already. So those are some of the

0:03:19.760 --> 0:03:24.200
<v Speaker 1>concerns that we've been hearing. And Kiyoxia was Japan's most

0:03:24.280 --> 0:03:28.119
<v Speaker 1>valuable company as of last month, so things really turn

0:03:28.200 --> 0:03:31.160
<v Speaker 1>around quite quickly this period of time.

0:03:31.680 --> 0:03:33.919
<v Speaker 3>Yeah, it's certainly very interesting one to watch. And away

0:03:33.919 --> 0:03:37.680
<v Speaker 3>from technology, then when he convenience store operator seven and

0:03:37.720 --> 0:03:41.520
<v Speaker 3>I getting a boost from some M and A headlines, Yeah, exactly.

0:03:41.640 --> 0:03:44.960
<v Speaker 1>Finally some good news that we are hearing. So seven

0:03:45.000 --> 0:03:48.880
<v Speaker 1>and I is the world's largest convenience store operator and

0:03:48.960 --> 0:03:56.400
<v Speaker 1>it is buying this Poland's top convenience store operator Zabka Group,

0:03:56.560 --> 0:04:00.320
<v Speaker 1>and that is seeing it to be a tailwind four

0:04:00.440 --> 0:04:05.200
<v Speaker 1>stocks for both companies. So on the seven and I part,

0:04:05.280 --> 0:04:08.280
<v Speaker 1>we are seeing shares of about three point five percent today,

0:04:08.720 --> 0:04:12.440
<v Speaker 1>the top performer on Japan's Topics Index, and investors like

0:04:12.560 --> 0:04:16.480
<v Speaker 1>that because this actually helps seven and I to grow

0:04:16.680 --> 0:04:20.599
<v Speaker 1>its overseas operation and it aligns with that long term

0:04:20.640 --> 0:04:24.120
<v Speaker 1>strategic intention where it really wants to have one hundred

0:04:24.200 --> 0:04:27.880
<v Speaker 1>thousand stores globally for its mid term plan, and it

0:04:27.920 --> 0:04:32.360
<v Speaker 1>has already been acquiring convenience source in North America and Australia.

0:04:32.440 --> 0:04:35.680
<v Speaker 1>So being able to buy this company or to have

0:04:35.720 --> 0:04:38.720
<v Speaker 1>a big stake in the company would help it expand

0:04:38.760 --> 0:04:42.440
<v Speaker 1>in Europe and Poland would then be this seven and

0:04:42.520 --> 0:04:46.840
<v Speaker 1>Night's fourth European market, and so that is really being

0:04:46.920 --> 0:04:49.160
<v Speaker 1>seen as a boost now. On the other hand, when

0:04:49.240 --> 0:04:53.279
<v Speaker 1>it comes to Zapka, it's also positive for it because

0:04:53.360 --> 0:04:57.520
<v Speaker 1>it really helps it to have this long term strategic

0:04:57.640 --> 0:04:59.480
<v Speaker 1>partner to grow further as well.

0:05:00.320 --> 0:05:04.520
<v Speaker 2>The Stockmovers Report from Bloomberg Radio. Check back with us

0:05:04.560 --> 0:05:07.360
<v Speaker 2>throughout the day for the latest roundup of companies making

0:05:07.440 --> 0:05:11.039
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:05:11.279 --> 0:05:15.279
<v Speaker 2>Listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg

0:05:15.320 --> 0:05:18.400
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:05:18.440 --> 0:05:19.799
<v Speaker 2>Bloomberg Business app.