1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,480 --> 00:00:18,000 Speaker 3: Well, let's take a look at some stocks on the 5 00:00:18,040 --> 00:00:20,439 Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined 6 00:00:20,440 --> 00:00:23,840 Speaker 3: by Bloomberg's Breaking News editor Louise Moan. Louise, good morning. 7 00:00:24,480 --> 00:00:27,600 Speaker 3: Let's start in France then, and the software company Daso 8 00:00:27,680 --> 00:00:31,840 Speaker 3: System falling by the most sense, it's nineteen ninety six IPO. 9 00:00:32,040 --> 00:00:32,640 Speaker 3: What's going on? 10 00:00:33,200 --> 00:00:36,360 Speaker 1: Indeed? Yes, So this followed its fourth quarter figures today 11 00:00:36,680 --> 00:00:39,320 Speaker 1: came in below expectations. So, for example, revenue is down 12 00:00:39,440 --> 00:00:43,000 Speaker 1: four point one percent, that was below expectations. Guidance ahead 13 00:00:43,120 --> 00:00:47,440 Speaker 1: was also weak, missing estimates. JP Morgan and listening. That's 14 00:00:47,479 --> 00:00:50,480 Speaker 1: the worst. In their words, it's the worse. It's worse 15 00:00:50,520 --> 00:00:53,120 Speaker 1: than even the most negative investors we've spoken to. So 16 00:00:53,280 --> 00:00:57,560 Speaker 1: really negative readings, both for actual figures and for looking ahead. 17 00:00:58,000 --> 00:01:02,640 Speaker 1: And it all comes as the story that's been rolling 18 00:01:02,720 --> 00:01:06,479 Speaker 1: on that software companies are grappling with fears over AI 19 00:01:06,640 --> 00:01:09,600 Speaker 1: that's going to undermine their business so that new AI 20 00:01:09,680 --> 00:01:13,480 Speaker 1: tools can compete with what they're doing and undermine and 21 00:01:13,560 --> 00:01:16,640 Speaker 1: change the business. So this is weighing on that's all, 22 00:01:16,680 --> 00:01:20,800 Speaker 1: but also weighing across tech, on tech stocks across Europe. 23 00:01:20,840 --> 00:01:24,560 Speaker 1: So for example, SAP also edging lower this morning, So 24 00:01:24,600 --> 00:01:27,360 Speaker 1: it's not just the individual figures but also those wider 25 00:01:27,400 --> 00:01:30,000 Speaker 1: worries that are also pulling those stocks down. 26 00:01:30,680 --> 00:01:33,000 Speaker 3: Yeah, and of course AI worries not just being in 27 00:01:33,080 --> 00:01:36,280 Speaker 3: focus for software companies, they're also hitting wealth managers in 28 00:01:36,319 --> 00:01:37,039 Speaker 3: Europe today. 29 00:01:37,640 --> 00:01:40,960 Speaker 1: Indeed, Yeah, so European stocks losing ground. European wealth manager 30 00:01:40,959 --> 00:01:45,000 Speaker 1: stocks are losing ground as a whole, tracking what happened 31 00:01:45,160 --> 00:01:49,920 Speaker 1: in America overnight, so similar moves by American peers overnight. 32 00:01:49,960 --> 00:01:52,240 Speaker 1: So in Europe you've got the likes of Saint James's 33 00:01:52,240 --> 00:01:56,120 Speaker 1: Place down almost ten percent this morning, Quilter and others 34 00:01:56,200 --> 00:02:00,000 Speaker 1: all dropping as you say, on these worries over AI. 35 00:02:00,800 --> 00:02:04,680 Speaker 1: The specific thing that has triggered this this move now 36 00:02:05,200 --> 00:02:09,560 Speaker 1: is a new AI tool that was unveiled by tech 37 00:02:09,600 --> 00:02:14,520 Speaker 1: startup yesterday that's aiming at creating tax strategies, so for example, 38 00:02:14,560 --> 00:02:18,520 Speaker 1: helping financial advisors personalized strategies for clients, among other things 39 00:02:18,520 --> 00:02:20,520 Speaker 1: as well. So that sparked that sell off first in 40 00:02:20,520 --> 00:02:24,720 Speaker 1: America and then now in Europe. In wealth management stocks, 41 00:02:24,760 --> 00:02:27,280 Speaker 1: you know, there's the risk that the whole sector could 42 00:02:27,320 --> 00:02:31,359 Speaker 1: be at risk from automation, as we've just spoken about, 43 00:02:31,400 --> 00:02:34,280 Speaker 1: you know, follows moves in software and in other industries 44 00:02:34,280 --> 00:02:37,200 Speaker 1: that we've been seeing recently as well. There was a 45 00:02:37,240 --> 00:02:40,360 Speaker 1: bit of a bit of a maybe a slight glimmer 46 00:02:40,880 --> 00:02:43,760 Speaker 1: of hope from a note from RBC analyst saying that 47 00:02:44,000 --> 00:02:46,399 Speaker 1: they think that this drop in terms of wealth managers 48 00:02:46,320 --> 00:02:48,959 Speaker 1: of the drop is short term positioning rather than a 49 00:02:48,960 --> 00:02:52,400 Speaker 1: big change in fundamentals in the industry. But yeah, weighing 50 00:02:52,480 --> 00:02:57,120 Speaker 1: on stocks across Europe, so both wealth managers and software today. 51 00:02:58,000 --> 00:03:01,400 Speaker 3: Okay, and in the UK then we are watching the 52 00:03:01,440 --> 00:03:04,280 Speaker 3: house builder Barish red Row. What have we learned from them? 53 00:03:04,560 --> 00:03:07,080 Speaker 1: Indeed, yeah, this is the UK's biggest house builder. So 54 00:03:07,120 --> 00:03:10,840 Speaker 1: they had their first half results, better sales than last year. 55 00:03:11,280 --> 00:03:14,040 Speaker 1: They're citing what they say is a strong performance in 56 00:03:14,080 --> 00:03:17,440 Speaker 1: a subdued market. They said that there was a lot 57 00:03:17,440 --> 00:03:22,000 Speaker 1: of uncertainty around the budget, but then people started then 58 00:03:22,040 --> 00:03:25,320 Speaker 1: completing before Christmas once that uncertainty kind of lifted a 59 00:03:25,320 --> 00:03:29,639 Speaker 1: bit share so relatively positive in that sense. Shares did 60 00:03:29,720 --> 00:03:32,960 Speaker 1: fall over eight percent or are falling still over eight percent. 61 00:03:34,400 --> 00:03:38,040 Speaker 1: There was one analyst saying that that these figures are 62 00:03:38,040 --> 00:03:41,120 Speaker 1: being flattered by a change in their accounting policy. But 63 00:03:41,200 --> 00:03:43,840 Speaker 1: also there's a lot of pressure and increasing pressure on 64 00:03:43,880 --> 00:03:47,840 Speaker 1: bat Red Rose margins. You know, they said themselves it 65 00:03:47,960 --> 00:03:52,080 Speaker 1: was as a challenging market, a subdued market. They also 66 00:03:52,240 --> 00:03:54,680 Speaker 1: urged in their statement, as they've done before, they urged 67 00:03:54,720 --> 00:03:59,960 Speaker 1: for more government assistance in terms of growing underlying demand 68 00:04:00,160 --> 00:04:03,200 Speaker 1: for housing and the housing market in the UK. So 69 00:04:03,240 --> 00:04:06,680 Speaker 1: the focus now is on the next season, so the 70 00:04:06,720 --> 00:04:10,040 Speaker 1: spring selling season, if the government might be able to 71 00:04:10,040 --> 00:04:12,680 Speaker 1: help more, if their measures that they've already implemented, that 72 00:04:12,720 --> 00:04:15,000 Speaker 1: there's been quite a host of reforms, if they start 73 00:04:15,040 --> 00:04:18,040 Speaker 1: to take shape a bit more and help Barrett. So 74 00:04:18,120 --> 00:04:22,080 Speaker 1: despite those better sales in the first half, shares are 75 00:04:22,160 --> 00:04:25,960 Speaker 1: falling on that kind of understy on that challenging market 76 00:04:26,000 --> 00:04:28,880 Speaker 1: that housing as a whole is experiencing. 77 00:04:28,440 --> 00:04:32,680 Speaker 2: At the moment. 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