Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers podcast, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Now, let's check in.
Speaker 3: On some of the individual stocks on the move today
Speaker 3: here in Europe. I'm Caroline Hepko. We're joined by Bloombergs
Speaker 3: Baking News editor Chloe Malay.
Speaker 1: Good morning.
Speaker 3: So let's talk about the Italian bank Uni Credit, which
Speaker 3: has raised guidance. So tell us more. This is a
Speaker 3: very interesting, important bank led by Andrea or Chow.
Speaker 4: Yes, so UniCredit lifted its proper guidance, as you said,
Speaker 4: and it also said that it plans to return at
Speaker 4: least nine point five billion euros to shareholders this year,
Speaker 4: so that really lifted the shares this morning.
Speaker 1: That made investors quite happy. Obviously.
Speaker 4: This is particularly interesting because it comes just a day
Speaker 4: after UniCredit withdrew its offer for Banco BPM, saying that
Speaker 4: it effectively could not secure government authorization. That's, of course
Speaker 4: a bit of a setback for the CEO who has
Speaker 4: been pursuing all of those different takeovers and keeps really
Speaker 4: encountering some obstacles. So its approach for Commerce Bank is
Speaker 4: also at the moment halted. It's at an impass also
Speaker 4: because of government opposition.
Speaker 1: But the fact that the earnings.
Speaker 4: Were positive, the shareholder payout kind of promise lifted lifted
Speaker 4: the shares and that was enough.
Speaker 1: To make investors quite quite happy this morning.
Speaker 3: Yeah, absolutely, UniCredit shares are more than three percent. That's aviation, now,
Speaker 3: this is a very different story. They their chap us
Speaker 3: down significantly.
Speaker 1: Why.
Speaker 4: Yeah, So that's aviation sells both business kind of private
Speaker 4: jets and then military jets. So the defense division, the
Speaker 4: military jets side of things, is doing well. The order
Speaker 4: intake is solid, the outlook is positive. Where it is
Speaker 4: suffering is the private jet division, and a lot of
Speaker 4: that has to do with tariff. So it's said that
Speaker 4: the orders we were weak, and that is because tariff
Speaker 4: uncertainty is delaying production and is in turn impacting the cells.
Speaker 1: So that has dragged the shares lower.
Speaker 4: Another piece of the story for their ser Aviation is
Speaker 4: that it is also currently embroiled in a bit of
Speaker 4: a fight with Airbus over the development of a next
Speaker 4: generation fight jets. Predict Amount and Mers and macrent I
Speaker 4: have said to meet in Berlin to kind of discuss
Speaker 4: who is going to lead on that effort, so that
Speaker 4: is also kind of complicating the picture there. For their
Speaker 4: sort and shares are down as a result of both
Speaker 4: of those stories there.
Speaker 3: Yeah, Dasso's full con chats of course the most interesting
Speaker 3: and important in terms of the German software company sa
Speaker 3: P also down. What are the tailwinds the major issues
Speaker 3: for them?
Speaker 4: Yeah, So SAP is Europe's most valuable company, so obviously
Speaker 4: anything that it does is closely watched. But this morning
Speaker 4: the earnings were a bit of a mixed bag. So
Speaker 4: there was growth in the cloud and software cells, but
Speaker 4: it was less than what analysts had expected. And then
Speaker 4: crucially and what's kind of led to the weakness and
Speaker 4: the stock this morning is that the company mentioned a
Speaker 4: tariff uncertainty, which is kind of feeding through into customer
Speaker 4: hesitancy of course and kind.
Speaker 1: Of clouding the general outlook.
Speaker 4: SAP is generally not as dramatically exposed as some other
Speaker 4: stocks could be to the tariff issue. Customers that decide
Speaker 4: to move to the cloud usually do that in kind
Speaker 4: of multi year project that takes a while. It usually
Speaker 4: you know, is not can't be really dialed back super quickly.
Speaker 4: But tariff and Stutitty is still kind of clouding the
Speaker 4: outlook generally. And then another thing that is really important
Speaker 4: for SAP is the currency headwinds that it's facing, so
Speaker 4: especially a week dollar given that its largest market is
Speaker 4: in the US, so it expects currency effects to hurt
Speaker 4: growth in the cloud segment by three point five percentage points,
Speaker 4: and analysts are saying that, you know, it needs kind
Speaker 4: of keep an eye on how much of this currency
Speaker 4: headwinds can impact the outlook going forward as well.
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