阿里800亿港元融资押注AI，美股科技股与钢企分化

[music] Bloomberg Audio Studios podcasts, radio, news,

the Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

Let's take a look at some stocks on [music] the move today. I'm Nathan Hager, joined by Bloomberg's Louise Moon, uh, taking a look at a [music] stock making a big move after announcing a big share issue. Alibaba is uh getting kind of hit hard this morning, Louise. Good morning.

Good morning. Yeah, tumbling in Asia overnight. Um and we're seeing similar in pre-market in the US as well. So, it's raised 80 billion US Hong Kong dollars and about 10 billion US dollars in a share sale. Um essentially showing their willingness to spend huge sums to try and take the lead in the AI race. So, analysts are questioning a few things. Firstly, they're asking why it wasn't a bond sale, showing that it might need more funds than than expected for their AI investments.

And then they're also questioning if Alibaba is actually getting enough for its capital. It's kind of yet to show how it will get sustainable longerterm revenue from AI. So, as I say, tumbled in Asia and we're seeing similar in pre-market. There's also the wider tech story which we'll get on to, but that's uh the Alibaba kind of specific news, that share sale. Yeah, let's get on to that wider tech story because we are seeing a broader selloff uh in tech shares this morning, particularly in the uh the chip stocks as well to start the week.

Yeah, this this wider story of tech stocks globally dragging equities lower is that riskoff start to the week that we're seeing. So investors trimming their exposure ahead of as you mentioned earlier Nvidia earnings later this week um and then Jackson Hole as well on Friday. So, Micron lower in pre-market also Marvel um both down last time I looked about 3%. And then Intel um kind of marginal moves but high volume trading there.

So, check makers really being hit in that that uh downturn.

Well, we are uh seeing some positive signs uh after the uh collapse of US Canada trade talks. It seems like uh US steel companies are catching a bid.

Yeah. Uh so this was the the Bloomberg exclusive that there's little chance of talks resuming between Canada and the US before midterms elections. So those talks having uh collapsed and little chance of them resuming anytime soon as you say benefiting um those some of those steel companies. So we're seeing the likes of steel dynamics Cleveland cliff Century I should say alumin uh aluminum rather than aluminium. [laughter] Uh so yeah benefiting them higher in pre-market trading.

So obviously seen as a beneficiary if there's that trade pressure on Canadian imports and that's going to benefit those US firms.

All right. Well, I I'll get used to saying aluminium if I ever head your way. Uh in the meantime, uh the biggest decliner uh in the pre-market trade this morning is applied opto electronics. Uh what's behind this move?

So they've had an equity offering that was aftermarket close on Friday for about $600 million US. Um investors concerned that it's going to be dilutive essentially. So, it was down about 2% in post market on Friday, down about another 12% in pre-market this morning. Um, so weighing on that stock quite heavily, but should be noted that if you look back over the past year or so, the stock is up about 400% or over 400%.

So, it's pulling back from quite an elevated base, but that equity offering and and those dilutive concerns are weighing this morning.

And you're closing this out with Exxon Mobile as we uh wait for developments in the Middle East. How's Exxon Mobile doing this morning?

Yeah, well, so as there's actually a bit of M&A news that's quite interesting. So, there's been a report that Exon Mobile and other parties, so another one being Apollo, for example, um have uh expressed interest and put in some non-binding bids for the US chemicals unit of Shell, the the London listed oil giant. So, they're saying that that could fetch as much as 8 billion uh US dollars. Um, so if for Shell it's in line with their strategy to sell underperforming assets, focus on their core of oil and gas.

For Exxon, it's being taken as quite positive sentiment and they've had, you know, quite a strong past year. So, we're going to be watching that one closely as markets open [music] and see if that impacts shares.

The Stock Movers Report from Bloomberg Radio. [music] Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market moving headlines, [music] listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business [music] App.