WEBVTT - ASML Up, Easyjet Slumps, Monte Dei Paschi Drama

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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 3>Now let's have a look at the stocks on the

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<v Speaker 3>mood today here in Europe. I'm Caroline Hepkin. I'm joined

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<v Speaker 3>by Bloomberg reporter at Clone Malay. Good morning. So the

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<v Speaker 3>TSMC earnings out this morning. We've had a tea live

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<v Speaker 3>blog with all of our writers contributing. The company reporting

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<v Speaker 3>really a huge surge in terms of income and profits.

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<v Speaker 3>But that's got to read across into Europe into ASML.

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<v Speaker 1>How yeah, absolutely well, I've got to read across the

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<v Speaker 1>entire chip sector really this morning, led by SML and

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<v Speaker 1>really reacting to this very upbeat outlook from GSMC, which

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<v Speaker 1>is the main chip maker to a turn Video and Apple,

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<v Speaker 1>so it raised its revenue outlook and that really shows

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<v Speaker 1>the resilience of AI chip demand of investments in AI

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<v Speaker 1>despite the macro economic impact of the war in Iran,

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<v Speaker 1>of course, and TSMC also said that capital spending would

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<v Speaker 1>be towards the upper end of an existing guidance, and

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<v Speaker 1>so that really shows a lot of confidence in the outlook,

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<v Speaker 1>and so that's helped to kind of ease some concerns

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<v Speaker 1>that higher energy costs would maybe demand for power hungry

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<v Speaker 1>data centers, and that has really led the chip sector higher,

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<v Speaker 1>and especially ASML, which derives about seventeen percent of its

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<v Speaker 1>sales from TSMC. So essentially, if TSMC is doing well,

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<v Speaker 1>ASML tends to be doing well as well, and so

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<v Speaker 1>that is leading the shares hire this morning after there

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<v Speaker 1>was a little bit of weakness in ASML because its

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<v Speaker 1>own guidance raise actually was expected by the market, so

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<v Speaker 1>there was a bit of weakness after the earnings for them. Yeah.

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<v Speaker 3>Absolutely, that's really interesting. Let's also think about the airline industry.

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<v Speaker 3>Both EasyJet and Ryne air shares are quite a lot

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<v Speaker 3>lower this morning, EasyJet warning shareholders to fasten their seat belts.

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<v Speaker 1>Why Yeah, so airlines. Airline shares have of course suffered

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<v Speaker 1>a lot over the last few weeks because of the war,

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<v Speaker 1>because of those expectations of higher fuel costs and flight disruptions,

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<v Speaker 1>and today easy to actually provided a forecast that accounts

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<v Speaker 1>for all of that disruption and making the impact essentially

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<v Speaker 1>a lot more tangible for investors. So it's said that

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<v Speaker 1>it expects to report a loss, quite quite significant loss

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<v Speaker 1>in the first half of the year, and said that

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<v Speaker 1>the conflict had added twenty five pounds in fuel costs

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<v Speaker 1>in March, and so that has dragged down the shares,

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<v Speaker 1>But then the rest of that airline and travel sector

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<v Speaker 1>as well, because they're all going to be dealing with

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<v Speaker 1>the same challenges. Really, so Ryana and the Red TWI

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<v Speaker 1>in the Red as well. And there's no kind of

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<v Speaker 1>growing urgency around that situation because we're about to enter

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<v Speaker 1>the summer season, which is of course one of the

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<v Speaker 1>most important quarters for those companies, and it means, you

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<v Speaker 1>know that those airlines might have to have a high

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<v Speaker 1>affairs and that would sap kind of demand, but then

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<v Speaker 1>it also might mean there's inability to meet that demand

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<v Speaker 1>if there are fuel shortage. And Ryanair did say just

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<v Speaker 1>yesterday that jet fuel supplies were guaranteeing shipments until at

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<v Speaker 1>least mid May, but that if the Strait of Hormus

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<v Speaker 1>was still closed into May and June, fuel shortages couldnt

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<v Speaker 1>be ruled out. So now there's really growing urgency there

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<v Speaker 1>around that situation.

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<v Speaker 3>That's interesting because the easy Jet CEO said that there

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<v Speaker 3>were no concerns about jet fuel availability, but obviously we're

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<v Speaker 3>keeping a close eye on that. What about the boardroom

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<v Speaker 3>showdown at Monte Depascy.

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<v Speaker 1>Yes, and fun boardroom drama to end with this morning.

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<v Speaker 1>So investors in Monte Tepascy backed another term for Luigi Lavagglio,

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<v Speaker 1>who's the CEO, and that is after the board had

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<v Speaker 1>tried to get rid of him. So that's a major

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<v Speaker 1>victory for Lavaglio after the outgoing board had tried at

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<v Speaker 1>first to prevent him from seeking a new term, then

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<v Speaker 1>stripped him of his powers, and then ultimately alsted him.

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<v Speaker 1>But the vote was quite closed though, so that means

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<v Speaker 1>that the tensions that there were the problem in this

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<v Speaker 1>boardroom drama are likely to continue, the unlikely to go away.

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<v Speaker 1>So the disagreement between both sides is really around the

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<v Speaker 1>question of whether to keep Mediobanker, which Paskey bought last year,

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<v Speaker 1>listed on the stock exchange, and also how to manage

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<v Speaker 1>the stake in the insurer generally, so the old board

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<v Speaker 1>had argued that then was fresh leadership that was needed

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<v Speaker 1>to manage that next stage of integration of growth. But

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<v Speaker 1>Levaggio's merged Triumphant and Indo, so we'll see we'll see

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<v Speaker 1>what happens with the Shez.

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<v Speaker 2>Are up this morning the Stock Movers Report from Bloomberg Radio.

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