WEBVTT -  UniCredit Rises, Dessault Sinks, SAP Falls

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Now, let's check in.

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<v Speaker 3>On some of the individual stocks on the move today

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<v Speaker 3>here in Europe. I'm Caroline Hepko. We're joined by Bloombergs

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<v Speaker 3>Baking News editor Chloe Malay.

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<v Speaker 1>Good morning.

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<v Speaker 3>So let's talk about the Italian bank Uni Credit, which

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<v Speaker 3>has raised guidance. So tell us more. This is a

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<v Speaker 3>very interesting, important bank led by Andrea or Chow.

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<v Speaker 4>Yes, so UniCredit lifted its proper guidance, as you said,

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<v Speaker 4>and it also said that it plans to return at

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<v Speaker 4>least nine point five billion euros to shareholders this year,

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<v Speaker 4>so that really lifted the shares this morning.

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<v Speaker 1>That made investors quite happy. Obviously.

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<v Speaker 4>This is particularly interesting because it comes just a day

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<v Speaker 4>after UniCredit withdrew its offer for Banco BPM, saying that

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<v Speaker 4>it effectively could not secure government authorization. That's, of course

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<v Speaker 4>a bit of a setback for the CEO who has

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<v Speaker 4>been pursuing all of those different takeovers and keeps really

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<v Speaker 4>encountering some obstacles. So its approach for Commerce Bank is

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<v Speaker 4>also at the moment halted. It's at an impass also

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<v Speaker 4>because of government opposition.

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<v Speaker 1>But the fact that the earnings.

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<v Speaker 4>Were positive, the shareholder payout kind of promise lifted lifted

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<v Speaker 4>the shares and that was enough.

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<v Speaker 1>To make investors quite quite happy this morning.

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<v Speaker 3>Yeah, absolutely, UniCredit shares are more than three percent. That's aviation, now,

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<v Speaker 3>this is a very different story. They their chap us

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<v Speaker 3>down significantly.

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<v Speaker 1>Why.

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<v Speaker 4>Yeah, So that's aviation sells both business kind of private

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<v Speaker 4>jets and then military jets. So the defense division, the

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<v Speaker 4>military jets side of things, is doing well. The order

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<v Speaker 4>intake is solid, the outlook is positive. Where it is

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<v Speaker 4>suffering is the private jet division, and a lot of

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<v Speaker 4>that has to do with tariff. So it's said that

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<v Speaker 4>the orders we were weak, and that is because tariff

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<v Speaker 4>uncertainty is delaying production and is in turn impacting the cells.

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<v Speaker 1>So that has dragged the shares lower.

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<v Speaker 4>Another piece of the story for their ser Aviation is

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<v Speaker 4>that it is also currently embroiled in a bit of

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<v Speaker 4>a fight with Airbus over the development of a next

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<v Speaker 4>generation fight jets. Predict Amount and Mers and macrent I

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<v Speaker 4>have said to meet in Berlin to kind of discuss

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<v Speaker 4>who is going to lead on that effort, so that

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<v Speaker 4>is also kind of complicating the picture there. For their

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<v Speaker 4>sort and shares are down as a result of both

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<v Speaker 4>of those stories there.

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<v Speaker 3>Yeah, Dasso's full con chats of course the most interesting

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<v Speaker 3>and important in terms of the German software company sa

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<v Speaker 3>P also down. What are the tailwinds the major issues

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<v Speaker 3>for them?

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<v Speaker 4>Yeah, So SAP is Europe's most valuable company, so obviously

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<v Speaker 4>anything that it does is closely watched. But this morning

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<v Speaker 4>the earnings were a bit of a mixed bag. So

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<v Speaker 4>there was growth in the cloud and software cells, but

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<v Speaker 4>it was less than what analysts had expected. And then

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<v Speaker 4>crucially and what's kind of led to the weakness and

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<v Speaker 4>the stock this morning is that the company mentioned a

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<v Speaker 4>tariff uncertainty, which is kind of feeding through into customer

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<v Speaker 4>hesitancy of course and kind.

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<v Speaker 1>Of clouding the general outlook.

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<v Speaker 4>SAP is generally not as dramatically exposed as some other

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<v Speaker 4>stocks could be to the tariff issue. Customers that decide

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<v Speaker 4>to move to the cloud usually do that in kind

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<v Speaker 4>of multi year project that takes a while. It usually

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<v Speaker 4>you know, is not can't be really dialed back super quickly.

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<v Speaker 4>But tariff and Stutitty is still kind of clouding the

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<v Speaker 4>outlook generally. And then another thing that is really important

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<v Speaker 4>for SAP is the currency headwinds that it's facing, so

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<v Speaker 4>especially a week dollar given that its largest market is

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<v Speaker 4>in the US, so it expects currency effects to hurt

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<v Speaker 4>growth in the cloud segment by three point five percentage points,

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<v Speaker 4>and analysts are saying that, you know, it needs kind

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<v Speaker 4>of keep an eye on how much of this currency

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<v Speaker 4>headwinds can impact the outlook going forward as well.

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