WEBVTT - Alibaba Climbs; Nvidia Edges Higher; Occidental Deal

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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>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Titel, taking a

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<v Speaker 3>look at US equities and American depositary receipts as well,

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<v Speaker 3>because we got to talk about what's going on with

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<v Speaker 3>Ali Baba this morning. Valerie, good morning, Hey, good morning Nathan.

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<v Speaker 1>Yes, the excitement still continues for this AI trade. Ali

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<v Speaker 1>Baba was upgraded by both Morgan Stanley and morning Star

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<v Speaker 1>about their excitement of the planned AI CAPEC spending that

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<v Speaker 1>they pledged last week. Morgan Stanley looking very positive on

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<v Speaker 1>their cloud revenue and morning Star is saying that the

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<v Speaker 1>shares are undervalued, and that's quite a statement given the

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<v Speaker 1>shares have already rallied fifty percent this month alone. So

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<v Speaker 1>Ali Baba is filling the positivity up nearly three and

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<v Speaker 1>a half for sent so far in this morning's trade.

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<v Speaker 1>It seems like the excitement for the AI trade is

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<v Speaker 1>still palpable.

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<v Speaker 3>Yeah, we've got AI competition heating up given what we're

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<v Speaker 3>hearing about what Huawei's plans are, what's that mean for

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<v Speaker 3>potential competitor in Vidia.

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<v Speaker 1>Well, let's start with the bloomberg scoop. Huawei is to

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<v Speaker 1>double output of top ai chips to rival Navidia as

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<v Speaker 1>their market share waivers in China, but Navidia is still

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<v Speaker 1>in the green. On the back of this news, I

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<v Speaker 1>tell you the positivity is just rolling on Nvidia of

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<v Speaker 1>seven tens of one percent. On the back of this

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<v Speaker 1>bloomberg scoop that Huawei is planning to double its output

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<v Speaker 1>of chips. Now now it's It's chips do lag Navidia's

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<v Speaker 1>in terms of performance, but they are still working on

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<v Speaker 1>trying to build a chip that would rival Navidia's performance.

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<v Speaker 1>Even Navidia's chip that was designed for the China export

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<v Speaker 1>market isn't necessarily their top chip, and there is still

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<v Speaker 1>discussions that Navidia is preparing a better chip to eventually

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<v Speaker 1>be exported in it to the Chinese market. But they

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<v Speaker 1>have hit but hit by a lot of geopolitical headwinds

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<v Speaker 1>of late, both the Chinese government warning top chip top

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<v Speaker 1>tech companies in China not to use Navidio's products, but

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<v Speaker 1>the video has been doing all right over the month,

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<v Speaker 1>and this morning is in the green, up seven tens

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<v Speaker 1>of one percent.

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<v Speaker 3>Yeah, doing all right. Maybe an understatement there. Moving well

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<v Speaker 3>away from the AI trade, we've got some news in

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<v Speaker 3>the energy space this morning.

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<v Speaker 2>Yes we do.

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<v Speaker 1>Occidental Petroleum has or it's been reported in the FT

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<v Speaker 1>that they are looking at a divestiture. An oxy stock

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<v Speaker 1>is up one and a half percent so far in

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<v Speaker 1>pre market trade. Now the FT is saying that they're

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<v Speaker 1>in talks to sell their petrochemical unit for ten billion

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<v Speaker 1>dollars and they'll be doing this in order to pay

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<v Speaker 1>down debt. Now this is a theme that it's a

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<v Speaker 1>theme of Occidental Petroleum recently. They've been doing some divestitures

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<v Speaker 1>in order to pay down their near term debt. But

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<v Speaker 1>this would be the biggest deal that they've done so

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<v Speaker 1>far if it were to go through, and actually the

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<v Speaker 1>company that they would spin off would be the world's

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<v Speaker 1>largest standalone petrochemical company. But still on these FT reports,

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<v Speaker 1>the share is looking positive this morning on the back

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<v Speaker 1>of hopes of paying down some near term debt for

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<v Speaker 1>Occidental Petroleum.

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<v Speaker 3>And we've got some headlines that directly affect the defense

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<v Speaker 3>industry as well.

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<v Speaker 1>Yeah, this is a Wall Street Journal report that the

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<v Speaker 1>Pentagon is looking to double or even quadruple missile production.

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<v Speaker 1>We're seeing shares of lockeed up two point six percent,

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<v Speaker 1>RTX up two point three and even Boeing in the

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<v Speaker 1>Green up one point three percent. Now, all these companies

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<v Speaker 1>were cited in this Wall Street Journal report that the

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<v Speaker 1>Pentagon is looking to amp up missile production for a

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<v Speaker 1>potential conflict with China. The Wall Street Journal mentions a

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<v Speaker 1>council that was set up called the Munitions and Sorry,

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<v Speaker 1>Munitions Acceleration Council back in June, so this is reporting

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<v Speaker 1>that this idea is still in the place.

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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