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Let's get to really a look at some of these stocks that are on the move today here in Europe. I'm Caroline Hepga and I'm joined by Bimberg Report to cloone Malay to look at the stocks moving this morning. Deutsche Telecom has been making some international phone calls. Is with M and A.
Lawyers, absolutely big em and A news today. So Doge Telecom is said to be considering a full combination with its American armed T Mobile. So that would create a massive multinational telecom company, and it would also rank as
the largest ever a public MNA deal. So Dodge Telecom is already a T Mobile's biggest shareholder with about a fifty three percent steak roughly, and Dodge Telecom has been discussing the idea of creating a single corporate group that would control the operations of both Dodge Telecom and Teamobile and would be jointly owned by the two companies current investors. And then this new entity would list in the US
and on a major European exchange as well. So the talks are very much at an early stage still and there's a lot to be worked out, which might explain the slight weakness that we've seen in the shares this morning for Dodge Telecom, with analyst saying there are actually
quite a few challenges. So, for example, there's limited synergies between the two, there's a lot of regulatory hurdles to be thinking about as well, and then there's also the fact that any deal would have to include a premium to convince Teamobile minority shareholders to accept exposure to European assets. So there's quite a few challenges to think about and to getting this deal across the line.
Really Yeah, Look, I think cell phone charges are and businesses are so interesting. They're one of the massive European wins I would argue of the EU because for cell phones and lines are so inexpensive in Europe if you compare them to the US, we're on average for a phone you're spending seventy to one hundred dollars a month. In Europe, you can get you know, a line for ten twenty euros a month. Yeah, really interesting. So Deutsche Telecom ASM having a good earnings day.
Yeah, having a great day.
ASM shares hit a new record high this morning after it gave a really good second quarter forecast that was much better than expected and also a first quarter revenue b estimate. So one analyst said that the beat and raise was strong even by semiconductor standards, which I think is an important bit of context given the really massive rally that we've seen in chip makers and chip making
equipment manufacturers lately. If we remember, ASML share has felt earlier this earning season because the guidance raise was actually
seen as expected and very much priced in. So the fact that ASM is seeing these great performance today, it really shows that it managed to clear a very high bar, and that really underscores, of course, how strong, how resilient the demand for chip making equipment has been because of those billions and billions of dollars being poured into into the building of AI data centers.
Yeah. Okay, so that ASM, which of course was spun out of ASML, but all the way back in the nineteen eighties. As for ABB data centers boosting that business.
Yeah, So the AI build out that is benefiting ASM is also of course great news for companies that make electrical equipment, server X calling technologies, all of those things. So ABP is one of those companies. It makes the transformers that enable power grids to feed the energy needs of data centers, and that is of course in really high demand. And so this morning it raised this revenue expectations after reporting a very massive surgeon orders from data
center customers. So it really goes to show that a resilience of those AI investments despite geopolitical uncertainties, and you know this is set to continue. We've got the four biggest spenders on AIS, Amazon, Microsoft, Alphabet and Meta. They are projected to spend more than six hundred billion dollars into projects in twenty twenty six, and so some of that money is going to be going to abb and also for other names in the sector. That's great news.
So we've seen definitely some of that read across today to Schneider Electric, to look on, to Siemens, all of those names in the green because it seems that those AI investments are still very much happening.
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