WEBVTT - Dassault Systemes Plunges, SJP Drops, Barratt Redrow Down

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moan. Louise, good morning.

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<v Speaker 3>Let's start in France then, and the software company Daso

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<v Speaker 3>System falling by the most sense, it's nineteen ninety six IPO.

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<v Speaker 3>What's going on?

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<v Speaker 1>Indeed? Yes, So this followed its fourth quarter figures today

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<v Speaker 1>came in below expectations. So, for example, revenue is down

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<v Speaker 1>four point one percent, that was below expectations. Guidance ahead

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<v Speaker 1>was also weak, missing estimates. JP Morgan and listening. That's

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<v Speaker 1>the worst. In their words, it's the worse. It's worse

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<v Speaker 1>than even the most negative investors we've spoken to. So

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<v Speaker 1>really negative readings, both for actual figures and for looking ahead.

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<v Speaker 1>And it all comes as the story that's been rolling

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<v Speaker 1>on that software companies are grappling with fears over AI

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<v Speaker 1>that's going to undermine their business so that new AI

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<v Speaker 1>tools can compete with what they're doing and undermine and

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<v Speaker 1>change the business. So this is weighing on that's all,

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<v Speaker 1>but also weighing across tech, on tech stocks across Europe.

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<v Speaker 1>So for example, SAP also edging lower this morning, So

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<v Speaker 1>it's not just the individual figures but also those wider

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<v Speaker 1>worries that are also pulling those stocks down.

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<v Speaker 3>Yeah, and of course AI worries not just being in

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<v Speaker 3>focus for software companies, they're also hitting wealth managers in

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<v Speaker 3>Europe today.

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<v Speaker 1>Indeed, Yeah, so European stocks losing ground. European wealth manager

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<v Speaker 1>stocks are losing ground as a whole, tracking what happened

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<v Speaker 1>in America overnight, so similar moves by American peers overnight.

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<v Speaker 1>So in Europe you've got the likes of Saint James's

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<v Speaker 1>Place down almost ten percent this morning, Quilter and others

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<v Speaker 1>all dropping as you say, on these worries over AI.

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<v Speaker 1>The specific thing that has triggered this this move now

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<v Speaker 1>is a new AI tool that was unveiled by tech

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<v Speaker 1>startup yesterday that's aiming at creating tax strategies, so for example,

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<v Speaker 1>helping financial advisors personalized strategies for clients, among other things

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<v Speaker 1>as well. So that sparked that sell off first in

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<v Speaker 1>America and then now in Europe. In wealth management stocks,

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<v Speaker 1>you know, there's the risk that the whole sector could

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<v Speaker 1>be at risk from automation, as we've just spoken about,

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<v Speaker 1>you know, follows moves in software and in other industries

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<v Speaker 1>that we've been seeing recently as well. There was a

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<v Speaker 1>bit of a bit of a maybe a slight glimmer

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<v Speaker 1>of hope from a note from RBC analyst saying that

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<v Speaker 1>they think that this drop in terms of wealth managers

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<v Speaker 1>of the drop is short term positioning rather than a

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<v Speaker 1>big change in fundamentals in the industry. But yeah, weighing

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<v Speaker 1>on stocks across Europe, so both wealth managers and software today.

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<v Speaker 3>Okay, and in the UK then we are watching the

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<v Speaker 3>house builder Barish red Row. What have we learned from them?

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<v Speaker 1>Indeed, yeah, this is the UK's biggest house builder. So

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<v Speaker 1>they had their first half results, better sales than last year.

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<v Speaker 1>They're citing what they say is a strong performance in

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<v Speaker 1>a subdued market. They said that there was a lot

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<v Speaker 1>of uncertainty around the budget, but then people started then

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<v Speaker 1>completing before Christmas once that uncertainty kind of lifted a

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<v Speaker 1>bit share so relatively positive in that sense. Shares did

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<v Speaker 1>fall over eight percent or are falling still over eight percent.

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<v Speaker 1>There was one analyst saying that that these figures are

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<v Speaker 1>being flattered by a change in their accounting policy. But

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<v Speaker 1>also there's a lot of pressure and increasing pressure on

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<v Speaker 1>bat Red Rose margins. You know, they said themselves it

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<v Speaker 1>was as a challenging market, a subdued market. They also

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<v Speaker 1>urged in their statement, as they've done before, they urged

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<v Speaker 1>for more government assistance in terms of growing underlying demand

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<v Speaker 1>for housing and the housing market in the UK. So

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<v Speaker 1>the focus now is on the next season, so the

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<v Speaker 1>spring selling season, if the government might be able to

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<v Speaker 1>help more, if their measures that they've already implemented, that

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<v Speaker 1>there's been quite a host of reforms, if they start

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<v Speaker 1>to take shape a bit more and help Barrett. So

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<v Speaker 1>despite those better sales in the first half, shares are

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<v Speaker 1>falling on that kind of understy on that challenging market

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<v Speaker 1>that housing as a whole is experiencing.

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<v Speaker 2>At the moment. The Stock Movers Report from Bloomberg Radio.

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