1 00:00:02,520 --> 00:00:08,800 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market. Harnessing the power of Bloomberg data. 4 00:00:17,440 --> 00:00:19,360 Speaker 3: Let's take a look at some stocks on the move today. 5 00:00:19,360 --> 00:00:22,239 Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valery Titel on this 6 00:00:22,280 --> 00:00:25,000 Speaker 3: Friday morning. But apparently someone out there thinks it's Monday, 7 00:00:25,040 --> 00:00:29,160 Speaker 3: because we've got some deal news in the food distribution space, 8 00:00:29,200 --> 00:00:30,120 Speaker 3: potentially this morning. 9 00:00:30,200 --> 00:00:31,960 Speaker 2: Valcolm, morning, Good morning, Nathan. 10 00:00:31,960 --> 00:00:34,519 Speaker 1: You have some speculation of m and a activity in 11 00:00:34,560 --> 00:00:40,360 Speaker 1: the food distribution industry. Performance food has attracted takeover interests 12 00:00:40,400 --> 00:00:43,440 Speaker 1: from US Foods, and we're seeing a reaction in pre 13 00:00:43,520 --> 00:00:47,880 Speaker 1: market already Performance Foods up nearly nine percent, and US 14 00:00:47,880 --> 00:00:50,440 Speaker 1: Foods to the downside, down one point three percent. This 15 00:00:50,520 --> 00:00:52,919 Speaker 1: is a potential deal that would create a food distribution 16 00:00:53,040 --> 00:00:57,120 Speaker 1: company with combined sales of roughly one hundred billion dollars. 17 00:00:57,520 --> 00:01:01,760 Speaker 1: US food supplies restaurants, hospitals, school and hotels. Performance Foods 18 00:01:01,760 --> 00:01:05,600 Speaker 1: offers a similar service across the US and Canada. But 19 00:01:05,680 --> 00:01:09,240 Speaker 1: be wary that this deal could face some regulatory scrutiny, Nathan. 20 00:01:09,520 --> 00:01:12,400 Speaker 1: In fact, a similar takeover of US Food by Cisco 21 00:01:12,840 --> 00:01:15,480 Speaker 1: was blocked by a judge in twenty fifteen. There's no 22 00:01:15,560 --> 00:01:18,920 Speaker 1: certainty that deliberations will lead to a transaction. Sources Tel 23 00:01:18,920 --> 00:01:22,760 Speaker 1: Bloomberg and representatives for US Foods and Performance Food decline 24 00:01:22,760 --> 00:01:23,199 Speaker 1: to comment. 25 00:01:23,480 --> 00:01:26,039 Speaker 3: Okay, So along with the possible deal news, we've got 26 00:01:26,040 --> 00:01:29,080 Speaker 3: a smattering of earnings news as well before the official 27 00:01:29,160 --> 00:01:34,360 Speaker 3: kickoff of earning season next week. And Levi Strauss Wow. 28 00:01:35,319 --> 00:01:38,200 Speaker 1: Yeah, those shares rising sharply so far this morning, up 29 00:01:38,280 --> 00:01:42,920 Speaker 1: seven percent. They see revenue growth offsetting most of its 30 00:01:42,959 --> 00:01:46,720 Speaker 1: tariff impact. Nathan, It's very interesting that this tariff impact 31 00:01:46,760 --> 00:01:49,840 Speaker 1: many people are worried about. Levi is not worried at all. 32 00:01:49,840 --> 00:01:52,080 Speaker 1: It's revenue growth, it's sales growth. It's going to be 33 00:01:52,160 --> 00:01:54,480 Speaker 1: rising around one to two percent this year. It was 34 00:01:54,520 --> 00:01:58,400 Speaker 1: above estimates that actually sales would decline one to two percent. 35 00:01:58,760 --> 00:02:01,040 Speaker 1: They did lower their guide titance when it came to 36 00:02:01,160 --> 00:02:04,919 Speaker 1: gross margin, and the company factored in a thirty percent 37 00:02:05,000 --> 00:02:07,880 Speaker 1: tariff for products imported from China and a ten percent 38 00:02:07,920 --> 00:02:10,000 Speaker 1: tariff on goods from the rest of the world. So 39 00:02:10,000 --> 00:02:11,600 Speaker 1: those are the kind of numbers that they were using 40 00:02:11,600 --> 00:02:14,880 Speaker 1: in this analysis. The CEO, though, said that he is 41 00:02:14,880 --> 00:02:17,680 Speaker 1: happy with their supply chain and that their exposure to 42 00:02:17,800 --> 00:02:21,639 Speaker 1: China is minimal now. Levi also have had some success 43 00:02:21,680 --> 00:02:25,280 Speaker 1: with new products. They're dubbing this push head to toe 44 00:02:25,440 --> 00:02:27,320 Speaker 1: denim lifestyle. I don't know if you're a fan of that, 45 00:02:27,400 --> 00:02:29,240 Speaker 1: Nathan Kay, but it seemed to paying off for them. 46 00:02:29,240 --> 00:02:32,600 Speaker 1: They had a recent collab with Nike for denim Nike 47 00:02:32,720 --> 00:02:33,639 Speaker 1: Airmac sneakers. 48 00:02:33,960 --> 00:02:37,600 Speaker 3: They call that the Canadian Tuxedo I Digress. We got 49 00:02:37,600 --> 00:02:39,800 Speaker 3: to take a look at drone stocks as well, because 50 00:02:39,840 --> 00:02:42,600 Speaker 3: it looks like they're on the move. Off the back 51 00:02:42,680 --> 00:02:44,079 Speaker 3: of a Pentagon memo. 52 00:02:44,040 --> 00:02:47,880 Speaker 1: Yeah, jumping. We have a redcat up seventeen percent, arrow 53 00:02:48,000 --> 00:02:51,160 Speaker 1: environment of three percent, Kratos defense of three and a 54 00:02:51,200 --> 00:02:53,720 Speaker 1: half percent. This is all on the back of Defense 55 00:02:53,760 --> 00:02:58,760 Speaker 1: Secretary Pete Hegseth issuing orders to surge the production of drones. 56 00:02:58,800 --> 00:03:01,520 Speaker 1: This comes from a Fox News report who cited a 57 00:03:01,600 --> 00:03:05,359 Speaker 1: Pentagon memo that it aped it obtained. The orders allow 58 00:03:05,440 --> 00:03:10,160 Speaker 1: for commanders to test drones independently and also requires every 59 00:03:10,240 --> 00:03:14,680 Speaker 1: branch of the military to conduct combat simulations using drones. 60 00:03:14,680 --> 00:03:17,560 Speaker 1: This is all part of an aggressive push to outpace 61 00:03:17,639 --> 00:03:22,240 Speaker 1: Russia and China on unmanned warfare, and Hegseth is tearing 62 00:03:22,320 --> 00:03:25,919 Speaker 1: up red tape in this push. The memo also reclassifies 63 00:03:26,040 --> 00:03:31,040 Speaker 1: drones from aircraft to more resemble the classification of munitions 64 00:03:31,440 --> 00:03:35,040 Speaker 1: that will remove drones from legacy tracking systems and simplifies 65 00:03:35,360 --> 00:03:38,600 Speaker 1: their acquisition, So drone stocks up yet again. It seems 66 00:03:38,640 --> 00:03:42,840 Speaker 1: like this Pentagon push into unmanned aircraft is benefiting these stocks. 67 00:03:42,840 --> 00:03:48,320 Speaker 2: This morning the Stock Movers podcast from Bloomberg Radio. Check 68 00:03:48,360 --> 00:03:50,880 Speaker 2: back with us throughout the day for the latest roundup 69 00:03:50,880 --> 00:03:53,760 Speaker 2: of companies making news on Wall Street and for the 70 00:03:53,840 --> 00:03:58,240 Speaker 2: latest market moving headlines. Listen to Bloomberg Radio Live, catch 71 00:03:58,280 --> 00:04:01,040 Speaker 2: us on YouTube, Bloomberg dot com, and on Apple car 72 00:04:01,040 --> 00:04:09,080 Speaker 2: Play and Android Atto with the Bloomberg Business app MHM.