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 3: Let's take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valery Titel on this
Speaker 3: Friday morning. But apparently someone out there thinks it's Monday,
Speaker 3: because we've got some deal news in the food distribution space,
Speaker 3: potentially this morning.
Speaker 2: Valcolm, morning, Good morning, Nathan.
Speaker 1: You have some speculation of m and a activity in
Speaker 1: the food distribution industry. Performance food has attracted takeover interests
Speaker 1: from US Foods, and we're seeing a reaction in pre
Speaker 1: market already Performance Foods up nearly nine percent, and US
Speaker 1: Foods to the downside, down one point three percent. This
Speaker 1: is a potential deal that would create a food distribution
Speaker 1: company with combined sales of roughly one hundred billion dollars.
Speaker 1: US food supplies restaurants, hospitals, school and hotels. Performance Foods
Speaker 1: offers a similar service across the US and Canada. But
Speaker 1: be wary that this deal could face some regulatory scrutiny, Nathan.
Speaker 1: In fact, a similar takeover of US Food by Cisco
Speaker 1: was blocked by a judge in twenty fifteen. There's no
Speaker 1: certainty that deliberations will lead to a transaction. Sources Tel
Speaker 1: Bloomberg and representatives for US Foods and Performance Food decline
Speaker 1: to comment.
Speaker 3: Okay, So along with the possible deal news, we've got
Speaker 3: a smattering of earnings news as well before the official
Speaker 3: kickoff of earning season next week. And Levi Strauss Wow.
Speaker 1: Yeah, those shares rising sharply so far this morning, up
Speaker 1: seven percent. They see revenue growth offsetting most of its
Speaker 1: tariff impact. Nathan, It's very interesting that this tariff impact
Speaker 1: many people are worried about. Levi is not worried at all.
Speaker 1: It's revenue growth, it's sales growth. It's going to be
Speaker 1: rising around one to two percent this year. It was
Speaker 1: above estimates that actually sales would decline one to two percent.
Speaker 1: They did lower their guide titance when it came to
Speaker 1: gross margin, and the company factored in a thirty percent
Speaker 1: tariff for products imported from China and a ten percent
Speaker 1: tariff on goods from the rest of the world. So
Speaker 1: those are the kind of numbers that they were using
Speaker 1: in this analysis. The CEO, though, said that he is
Speaker 1: happy with their supply chain and that their exposure to
Speaker 1: China is minimal now. Levi also have had some success
Speaker 1: with new products. They're dubbing this push head to toe
Speaker 1: denim lifestyle. I don't know if you're a fan of that,
Speaker 1: Nathan Kay, but it seemed to paying off for them.
Speaker 1: They had a recent collab with Nike for denim Nike
Speaker 1: Airmac sneakers.
Speaker 3: They call that the Canadian Tuxedo I Digress. We got
Speaker 3: to take a look at drone stocks as well, because
Speaker 3: it looks like they're on the move. Off the back
Speaker 3: of a Pentagon memo.
Speaker 1: Yeah, jumping. We have a redcat up seventeen percent, arrow
Speaker 1: environment of three percent, Kratos defense of three and a
Speaker 1: half percent. This is all on the back of Defense
Speaker 1: Secretary Pete Hegseth issuing orders to surge the production of drones.
Speaker 1: This comes from a Fox News report who cited a
Speaker 1: Pentagon memo that it aped it obtained. The orders allow
Speaker 1: for commanders to test drones independently and also requires every
Speaker 1: branch of the military to conduct combat simulations using drones.
Speaker 1: This is all part of an aggressive push to outpace
Speaker 1: Russia and China on unmanned warfare, and Hegseth is tearing
Speaker 1: up red tape in this push. The memo also reclassifies
Speaker 1: drones from aircraft to more resemble the classification of munitions
Speaker 1: that will remove drones from legacy tracking systems and simplifies
Speaker 1: their acquisition, So drone stocks up yet again. It seems
Speaker 1: like this Pentagon push into unmanned aircraft is benefiting these stocks.
Speaker 2: This morning the Stock Movers podcast from Bloomberg Radio. Check
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