WEBVTT - K+S Dips, Alcon Slumps, Emmi Rises

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.280 --> 0:00:17.840
<v Speaker 3>Let's take a look at some stocks on the move

0:00:17.880 --> 0:00:20.479
<v Speaker 3>today in Europe. I'm Stephen Carroll with Tom McKenzie and

0:00:20.520 --> 0:00:22.919
<v Speaker 3>we're joined by Bloomberg's Breaking News out of Chloe Mela

0:00:23.400 --> 0:00:26.800
<v Speaker 3>for more, Chloe, good morning. Let's start with k ands

0:00:26.840 --> 0:00:28.920
<v Speaker 3>this morning, shares in the red. What's going on with

0:00:28.960 --> 0:00:30.360
<v Speaker 3>the German fertilizer firm.

0:00:30.680 --> 0:00:31.760
<v Speaker 1>Yes, so kNs.

0:00:31.880 --> 0:00:36.120
<v Speaker 4>It got double downgraded today to a cell rating by Behrenberg,

0:00:36.840 --> 0:00:40.120
<v Speaker 4>and that is because Barnbrook said that it expects really

0:00:40.159 --> 0:00:44.360
<v Speaker 4>lower prices for agricultural commodities from twenty twenty six from

0:00:44.400 --> 0:00:47.559
<v Speaker 4>next year, and that will obviously feed into weaker earnings

0:00:47.600 --> 0:00:48.440
<v Speaker 4>for K and S.

0:00:49.040 --> 0:00:50.319
<v Speaker 1>The analyst said that there was.

0:00:50.280 --> 0:00:54.440
<v Speaker 4>An unwinding of the upswinging prices that we saw post pandemic.

0:00:54.560 --> 0:00:56.120
<v Speaker 4>And you know, if we look at a key market

0:00:56.160 --> 0:00:59.960
<v Speaker 4>like Brazil, for example, fattillozer prices were down in August

0:01:00.080 --> 0:01:02.400
<v Speaker 4>due to really low demand, so that is perhaps a.

0:01:02.360 --> 0:01:04.360
<v Speaker 1>Taste in more weakness to come.

0:01:05.120 --> 0:01:08.800
<v Speaker 4>And also the analyst noted that higher corn production would

0:01:08.880 --> 0:01:12.240
<v Speaker 4>eventually also push prices down, so it seems like it's quite.

0:01:12.040 --> 0:01:13.440
<v Speaker 1>Bad news all around.

0:01:13.480 --> 0:01:16.880
<v Speaker 4>And you know, Barrenberg said that twenty twenty seven consensus

0:01:16.920 --> 0:01:20.680
<v Speaker 4>expectations were heavily over optimistic, so it seemed that there

0:01:20.760 --> 0:01:23.160
<v Speaker 4>is really a narrative that is taking hold at the

0:01:23.200 --> 0:01:26.680
<v Speaker 4>moment for that fertilizer stock. It has six cell ratings

0:01:26.720 --> 0:01:29.040
<v Speaker 4>and just four buys, which is really not the kind

0:01:29.040 --> 0:01:30.399
<v Speaker 4>of ratio that you want, of.

0:01:30.360 --> 0:01:35.000
<v Speaker 1>Course, and there is also movement Chloe for ifirm olt Con,

0:01:35.120 --> 0:01:37.040
<v Speaker 1>So what's the story with that company.

0:01:37.160 --> 0:01:41.200
<v Speaker 4>Yeah, ARCon makes contact lenses and other kind of ic products,

0:01:41.240 --> 0:01:43.840
<v Speaker 4>and it cut its sales guidance this morning, and it

0:01:44.040 --> 0:01:47.600
<v Speaker 4>also delivered sales growth below expectations, so it got rewarded

0:01:47.640 --> 0:01:50.320
<v Speaker 4>with quite a tough, tough share drop.

0:01:50.120 --> 0:01:52.520
<v Speaker 1>This morning up the back of that, and Lis noted

0:01:52.520 --> 0:01:52.840
<v Speaker 1>that it was.

0:01:52.840 --> 0:01:56.600
<v Speaker 4>A really tough quarter despite expectations being quite modest to

0:01:56.640 --> 0:01:58.800
<v Speaker 4>begin with, and that it really leaves it in a

0:01:58.800 --> 0:02:02.280
<v Speaker 4>tough spot right now. The areas of weakness were particularly

0:02:02.360 --> 0:02:05.120
<v Speaker 4>the surgical part of the business, so not the contact

0:02:05.160 --> 0:02:08.920
<v Speaker 4>lenses part, but the part that makes devices for eye surgery.

0:02:09.000 --> 0:02:10.360
<v Speaker 1>So for cataract surgery, for.

0:02:10.280 --> 0:02:14.000
<v Speaker 4>Example, and contact lenses was a little bit more resilient.

0:02:14.680 --> 0:02:17.600
<v Speaker 4>It did acquire a new company called Star Surgical, which

0:02:17.600 --> 0:02:21.200
<v Speaker 4>it said will expand its presence in myopia correction, so

0:02:21.240 --> 0:02:24.160
<v Speaker 4>maybe that is a catalyst in that surgical.

0:02:23.760 --> 0:02:24.760
<v Speaker 1>Segment going forward.

0:02:25.160 --> 0:02:28.320
<v Speaker 4>They are so in positives, you know, the upcoming product

0:02:28.400 --> 0:02:33.240
<v Speaker 4>launches and the EPs outlook was kept unchanged. But overall

0:02:33.280 --> 0:02:36.639
<v Speaker 4>that weakness has really put pressure on the stock this morning.

0:02:37.360 --> 0:02:39.000
<v Speaker 3>Okay, and of course, yeah, I mean the share is

0:02:39.040 --> 0:02:41.760
<v Speaker 3>down over ten percent of the moment. And next, bring

0:02:41.800 --> 0:02:44.600
<v Speaker 3>us to the dairy fern, Emmy, what's going on with them?

0:02:44.720 --> 0:02:47.840
<v Speaker 4>Yes, so it's a dairy producer over in Switzerland and

0:02:48.000 --> 0:02:50.880
<v Speaker 4>it raised its sales guidance this morning, and that is

0:02:50.919 --> 0:02:53.800
<v Speaker 4>thanks to really strong demand for dairy products, of course,

0:02:53.800 --> 0:02:56.440
<v Speaker 4>and that really led the shares higher. The company said

0:02:56.480 --> 0:03:01.919
<v Speaker 4>that the global trend towards healthy nutrition and natural products

0:03:01.919 --> 0:03:04.360
<v Speaker 4>and high quality proteins as well was really it could

0:03:04.360 --> 0:03:07.560
<v Speaker 4>really be tangibly felt, that's what it said. And so

0:03:07.639 --> 0:03:10.440
<v Speaker 4>that's really definitely a trend to keep an eye on.

0:03:10.480 --> 0:03:13.800
<v Speaker 4>This kind of growing demand for high protein, healthy products,

0:03:13.800 --> 0:03:16.880
<v Speaker 4>and that is driving earnings for those dairy producers or

0:03:16.919 --> 0:03:19.519
<v Speaker 4>meat producers as well. We saw just a few weeks

0:03:19.560 --> 0:03:23.840
<v Speaker 4>ago Cranswick, which is a UK listed producer of poultry

0:03:24.080 --> 0:03:26.040
<v Speaker 4>and pork, and it said that this kind of high

0:03:26.120 --> 0:03:31.519
<v Speaker 4>protein craze was also a significant benefit. Emmy did kevey

0:03:31.520 --> 0:03:33.960
<v Speaker 4>at all of this by saying that the overall economic

0:03:34.040 --> 0:03:36.560
<v Speaker 4>backdrop was quite challenging throughout the rest of the year.

0:03:36.760 --> 0:03:39.240
<v Speaker 4>It is dealing with the appreciation of this Swiss frank

0:03:39.320 --> 0:03:42.400
<v Speaker 4>and also US tariffs of course, so that is still

0:03:42.440 --> 0:03:46.440
<v Speaker 4>posing some challenges, but the high organic sales and the

0:03:46.480 --> 0:03:48.920
<v Speaker 4>cost savings will probably help it going forward.

0:03:49.000 --> 0:03:50.280
<v Speaker 1>So quite a good day for Emmy.

0:03:50.280 --> 0:03:55.560
<v Speaker 2>This morning the Stock Mover's Report from Bloomberg Radio. Check

0:03:55.600 --> 0:03:57.960
<v Speaker 2>back with us throughout the day for the latest roundup

0:03:57.960 --> 0:04:00.920
<v Speaker 2>of companies making news on Wall Street and for the

0:04:01.000 --> 0:04:05.440
<v Speaker 2>latest market moving headlines. Listen to Bloomberg Radio Live, catch

0:04:05.520 --> 0:04:09.000
<v Speaker 2>us on YouTube, Bloomberg dot com, and on Applecarplay and

0:04:09.000 --> 0:04:11.400
<v Speaker 2>Android Auto with the Bloomberg Business app.