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 3: Now let's have a look at the stocks on the
Speaker 3: mood today here in Europe. I'm Caroline Hepkin. I'm joined
Speaker 3: by Bloomberg reporter at Clone Malay. Good morning. So the
Speaker 3: TSMC earnings out this morning. We've had a tea live
Speaker 3: blog with all of our writers contributing. The company reporting
Speaker 3: really a huge surge in terms of income and profits.
Speaker 3: But that's got to read across into Europe into ASML.
Speaker 1: How yeah, absolutely well, I've got to read across the
Speaker 1: entire chip sector really this morning, led by SML and
Speaker 1: really reacting to this very upbeat outlook from GSMC, which
Speaker 1: is the main chip maker to a turn Video and Apple,
Speaker 1: so it raised its revenue outlook and that really shows
Speaker 1: the resilience of AI chip demand of investments in AI
Speaker 1: despite the macro economic impact of the war in Iran,
Speaker 1: of course, and TSMC also said that capital spending would
Speaker 1: be towards the upper end of an existing guidance, and
Speaker 1: so that really shows a lot of confidence in the outlook,
Speaker 1: and so that's helped to kind of ease some concerns
Speaker 1: that higher energy costs would maybe demand for power hungry
Speaker 1: data centers, and that has really led the chip sector higher,
Speaker 1: and especially ASML, which derives about seventeen percent of its
Speaker 1: sales from TSMC. So essentially, if TSMC is doing well,
Speaker 1: ASML tends to be doing well as well, and so
Speaker 1: that is leading the shares hire this morning after there
Speaker 1: was a little bit of weakness in ASML because its
Speaker 1: own guidance raise actually was expected by the market, so
Speaker 1: there was a bit of weakness after the earnings for them. Yeah.
Speaker 3: Absolutely, that's really interesting. Let's also think about the airline industry.
Speaker 3: Both EasyJet and Ryne air shares are quite a lot
Speaker 3: lower this morning, EasyJet warning shareholders to fasten their seat belts.
Speaker 1: Why Yeah, so airlines. Airline shares have of course suffered
Speaker 1: a lot over the last few weeks because of the war,
Speaker 1: because of those expectations of higher fuel costs and flight disruptions,
Speaker 1: and today easy to actually provided a forecast that accounts
Speaker 1: for all of that disruption and making the impact essentially
Speaker 1: a lot more tangible for investors. So it's said that
Speaker 1: it expects to report a loss, quite quite significant loss
Speaker 1: in the first half of the year, and said that
Speaker 1: the conflict had added twenty five pounds in fuel costs
Speaker 1: in March, and so that has dragged down the shares,
Speaker 1: But then the rest of that airline and travel sector
Speaker 1: as well, because they're all going to be dealing with
Speaker 1: the same challenges. Really, so Ryana and the Red TWI
Speaker 1: in the Red as well. And there's no kind of
Speaker 1: growing urgency around that situation because we're about to enter
Speaker 1: the summer season, which is of course one of the
Speaker 1: most important quarters for those companies, and it means, you
Speaker 1: know that those airlines might have to have a high
Speaker 1: affairs and that would sap kind of demand, but then
Speaker 1: it also might mean there's inability to meet that demand
Speaker 1: if there are fuel shortage. And Ryanair did say just
Speaker 1: yesterday that jet fuel supplies were guaranteeing shipments until at
Speaker 1: least mid May, but that if the Strait of Hormus
Speaker 1: was still closed into May and June, fuel shortages couldnt
Speaker 1: be ruled out. So now there's really growing urgency there
Speaker 1: around that situation.
Speaker 3: That's interesting because the easy Jet CEO said that there
Speaker 3: were no concerns about jet fuel availability, but obviously we're
Speaker 3: keeping a close eye on that. What about the boardroom
Speaker 3: showdown at Monte Depascy.
Speaker 1: Yes, and fun boardroom drama to end with this morning.
Speaker 1: So investors in Monte Tepascy backed another term for Luigi Lavagglio,
Speaker 1: who's the CEO, and that is after the board had
Speaker 1: tried to get rid of him. So that's a major
Speaker 1: victory for Lavaglio after the outgoing board had tried at
Speaker 1: first to prevent him from seeking a new term, then
Speaker 1: stripped him of his powers, and then ultimately alsted him.
Speaker 1: But the vote was quite closed though, so that means
Speaker 1: that the tensions that there were the problem in this
Speaker 1: boardroom drama are likely to continue, the unlikely to go away.
Speaker 1: So the disagreement between both sides is really around the
Speaker 1: question of whether to keep Mediobanker, which Paskey bought last year,
Speaker 1: listed on the stock exchange, and also how to manage
Speaker 1: the stake in the insurer generally, so the old board
Speaker 1: had argued that then was fresh leadership that was needed
Speaker 1: to manage that next stage of integration of growth. But
Speaker 1: Levaggio's merged Triumphant and Indo, so we'll see we'll see
Speaker 1: what happens with the Shez.
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