Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 3: by Bloomberg's Breaking News editor Louise Moan. Louise, good morning.
Speaker 3: Let's start in France then, and the software company Daso
Speaker 3: System falling by the most sense, it's nineteen ninety six IPO.
Speaker 3: What's going on?
Speaker 1: Indeed? Yes, So this followed its fourth quarter figures today
Speaker 1: came in below expectations. So, for example, revenue is down
Speaker 1: four point one percent, that was below expectations. Guidance ahead
Speaker 1: was also weak, missing estimates. JP Morgan and listening. That's
Speaker 1: the worst. In their words, it's the worse. It's worse
Speaker 1: than even the most negative investors we've spoken to. So
Speaker 1: really negative readings, both for actual figures and for looking ahead.
Speaker 1: And it all comes as the story that's been rolling
Speaker 1: on that software companies are grappling with fears over AI
Speaker 1: that's going to undermine their business so that new AI
Speaker 1: tools can compete with what they're doing and undermine and
Speaker 1: change the business. So this is weighing on that's all,
Speaker 1: but also weighing across tech, on tech stocks across Europe.
Speaker 1: So for example, SAP also edging lower this morning, So
Speaker 1: it's not just the individual figures but also those wider
Speaker 1: worries that are also pulling those stocks down.
Speaker 3: Yeah, and of course AI worries not just being in
Speaker 3: focus for software companies, they're also hitting wealth managers in
Speaker 3: Europe today.
Speaker 1: Indeed, Yeah, so European stocks losing ground. European wealth manager
Speaker 1: stocks are losing ground as a whole, tracking what happened
Speaker 1: in America overnight, so similar moves by American peers overnight.
Speaker 1: So in Europe you've got the likes of Saint James's
Speaker 1: Place down almost ten percent this morning, Quilter and others
Speaker 1: all dropping as you say, on these worries over AI.
Speaker 1: The specific thing that has triggered this this move now
Speaker 1: is a new AI tool that was unveiled by tech
Speaker 1: startup yesterday that's aiming at creating tax strategies, so for example,
Speaker 1: helping financial advisors personalized strategies for clients, among other things
Speaker 1: as well. So that sparked that sell off first in
Speaker 1: America and then now in Europe. In wealth management stocks,
Speaker 1: you know, there's the risk that the whole sector could
Speaker 1: be at risk from automation, as we've just spoken about,
Speaker 1: you know, follows moves in software and in other industries
Speaker 1: that we've been seeing recently as well. There was a
Speaker 1: bit of a bit of a maybe a slight glimmer
Speaker 1: of hope from a note from RBC analyst saying that
Speaker 1: they think that this drop in terms of wealth managers
Speaker 1: of the drop is short term positioning rather than a
Speaker 1: big change in fundamentals in the industry. But yeah, weighing
Speaker 1: on stocks across Europe, so both wealth managers and software today.
Speaker 3: Okay, and in the UK then we are watching the
Speaker 3: house builder Barish red Row. What have we learned from them?
Speaker 1: Indeed, yeah, this is the UK's biggest house builder. So
Speaker 1: they had their first half results, better sales than last year.
Speaker 1: They're citing what they say is a strong performance in
Speaker 1: a subdued market. They said that there was a lot
Speaker 1: of uncertainty around the budget, but then people started then
Speaker 1: completing before Christmas once that uncertainty kind of lifted a
Speaker 1: bit share so relatively positive in that sense. Shares did
Speaker 1: fall over eight percent or are falling still over eight percent.
Speaker 1: There was one analyst saying that that these figures are
Speaker 1: being flattered by a change in their accounting policy. But
Speaker 1: also there's a lot of pressure and increasing pressure on
Speaker 1: bat Red Rose margins. You know, they said themselves it
Speaker 1: was as a challenging market, a subdued market. They also
Speaker 1: urged in their statement, as they've done before, they urged
Speaker 1: for more government assistance in terms of growing underlying demand
Speaker 1: for housing and the housing market in the UK. So
Speaker 1: the focus now is on the next season, so the
Speaker 1: spring selling season, if the government might be able to
Speaker 1: help more, if their measures that they've already implemented, that
Speaker 1: there's been quite a host of reforms, if they start
Speaker 1: to take shape a bit more and help Barrett. So
Speaker 1: despite those better sales in the first half, shares are
Speaker 1: falling on that kind of understy on that challenging market
Speaker 1: that housing as a whole is experiencing.
Speaker 2: At the moment. The Stock Movers Report from Bloomberg Radio.
Speaker 2: Check back with us throughout the day for the latest
Speaker 2: roundup of companies making news on Wall Street and for
Speaker 2: the latest market moving headlines. Listen to Bloomberg Radio Live
Speaker 2: catch US on YouTube, Bloomberg dot com, and on Applecarplay
Speaker 2: and Android Auto with the Bloomberg Business app.