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 00:00:16,560 --> 00:00:18,000 Speaker 3: Now, let's take a look at some of the stocks 5 00:00:18,000 --> 00:00:19,919 Speaker 3: on the move today in Europe. I'm Lizzie Burden with 6 00:00:20,000 --> 00:00:23,840 Speaker 3: Caroline Hepke. We're joined by Bloomberg reporter Chloe Melle and Chloe, 7 00:00:23,920 --> 00:00:26,400 Speaker 3: I want to start with a company that is one 8 00:00:26,480 --> 00:00:29,840 Speaker 3: that you specialize in covering, and this is Schneider Electric. 9 00:00:29,880 --> 00:00:31,680 Speaker 3: I was speaking to the CEO this morning and I 10 00:00:31,680 --> 00:00:35,640 Speaker 3: can't help but notice how much he was smiling after 11 00:00:35,720 --> 00:00:37,159 Speaker 3: the back of his results today. 12 00:00:37,440 --> 00:00:37,680 Speaker 4: Yeah. 13 00:00:37,760 --> 00:00:40,120 Speaker 5: Yeah, he must have been really happy because the company 14 00:00:40,200 --> 00:00:43,080 Speaker 5: did raise its guidance for both profit and sales for 15 00:00:43,120 --> 00:00:46,000 Speaker 5: this year and that was thanks to, of course, data centers. 16 00:00:46,040 --> 00:00:49,600 Speaker 5: And so we've seen this massive spending on AI become 17 00:00:49,640 --> 00:00:53,360 Speaker 5: a really major growth driver for companies alec Schnider Electric, 18 00:00:53,400 --> 00:00:57,000 Speaker 5: which makes electrical equipment and calling systems that are used 19 00:00:57,320 --> 00:01:00,240 Speaker 5: in the data centers, and so Schneider has been a 20 00:01:00,240 --> 00:01:03,040 Speaker 5: really big beneficiary of that. It said that there was 21 00:01:03,320 --> 00:01:06,319 Speaker 5: a triple digit increase in data center demand in the 22 00:01:06,400 --> 00:01:11,039 Speaker 5: second quarter that helped push the quarterly sales to a record, 23 00:01:11,880 --> 00:01:14,080 Speaker 5: So it's been doing very well. And you know you've 24 00:01:14,120 --> 00:01:17,040 Speaker 5: interviewed this year this morning, Lizzie, and he said he 25 00:01:17,080 --> 00:01:19,560 Speaker 5: was quite keen to highlight that there were other kind 26 00:01:19,560 --> 00:01:20,319 Speaker 5: of growth drivers. 27 00:01:20,319 --> 00:01:21,720 Speaker 1: It was not just data centers. 28 00:01:21,760 --> 00:01:27,240 Speaker 5: There was infrastructure projects, electrification projects, factorial drmation, etc. But 29 00:01:27,280 --> 00:01:29,920 Speaker 5: of course data centers are the big thing, and we've 30 00:01:29,959 --> 00:01:31,840 Speaker 5: seen that really drive the shares this morning. 31 00:01:32,040 --> 00:01:34,600 Speaker 4: Listen, no surprise that he was smiling. Just look at 32 00:01:34,600 --> 00:01:38,200 Speaker 4: the share price mid twenty twenty two because of a 33 00:01:38,240 --> 00:01:41,200 Speaker 4: broader market sell off, the stock was at one hundred 34 00:01:41,200 --> 00:01:42,240 Speaker 4: and eleven euros. 35 00:01:42,280 --> 00:01:43,800 Speaker 1: It's more than doubled since then. 36 00:01:43,840 --> 00:01:47,400 Speaker 4: And the AI story has just meant this huge focus 37 00:01:47,440 --> 00:01:49,960 Speaker 4: on the business since twenty twenty three. 38 00:01:50,960 --> 00:01:53,800 Speaker 1: So yeah, I think that's really interesting. Let's also look. 39 00:01:53,640 --> 00:01:59,560 Speaker 4: Though at Adadas, a really really difficult day for that company. 40 00:01:59,720 --> 00:01:59,960 Speaker 1: Yeah. 41 00:02:00,080 --> 00:02:02,400 Speaker 5: Absolutely, I think it summed up really well by Deutsche 42 00:02:02,400 --> 00:02:04,040 Speaker 5: Bank analysts saying that it was good. 43 00:02:03,880 --> 00:02:07,320 Speaker 1: But just not good enough. So in absolute terms. 44 00:02:07,160 --> 00:02:09,720 Speaker 5: It was a pretty solid quarter, but the problem was 45 00:02:09,720 --> 00:02:12,720 Speaker 5: that analysts had expected a really massive World Cup boost 46 00:02:12,800 --> 00:02:16,200 Speaker 5: that just wasn't there in the numbers. So sales were 47 00:02:16,240 --> 00:02:19,359 Speaker 5: actually stronger, but that was really overshadowed by a big 48 00:02:19,440 --> 00:02:22,880 Speaker 5: jump in marketing expenses for the World Cup. So if 49 00:02:22,919 --> 00:02:26,720 Speaker 5: we remember, prior to the tournament starting, Adidas had this 50 00:02:26,880 --> 00:02:30,840 Speaker 5: really massive brand campaign that featured near Timothy Shallomy, a 51 00:02:30,840 --> 00:02:33,560 Speaker 5: lot of big, big hitters, big names like that. 52 00:02:33,960 --> 00:02:36,600 Speaker 1: It was our name, our favorite one, and. 53 00:02:36,639 --> 00:02:40,240 Speaker 5: Jude Ballinger I'm sorry Timothy Shallamer because he's French apparently, 54 00:02:40,919 --> 00:02:44,760 Speaker 5: and then he also released much months before Rivals, it 55 00:02:44,800 --> 00:02:47,120 Speaker 5: opened a store in New Jersey. So all of that 56 00:02:47,200 --> 00:02:49,560 Speaker 5: meant that there was a lot of money going out 57 00:02:49,680 --> 00:02:52,680 Speaker 5: and just not quite enough getting back in, despite the 58 00:02:52,680 --> 00:02:55,919 Speaker 5: fact that it did sell four times more jerseys as 59 00:02:55,960 --> 00:02:59,320 Speaker 5: the previous World Cup, and so this is really weighing 60 00:02:59,360 --> 00:03:01,640 Speaker 5: on the shares this morning. Some anlersts have said that 61 00:03:01,680 --> 00:03:04,320 Speaker 5: it could actually make sense going forward though, because that 62 00:03:04,360 --> 00:03:07,760 Speaker 5: could have established brand momentum that could extend beyond the 63 00:03:07,800 --> 00:03:08,360 Speaker 5: World Cup. 64 00:03:08,440 --> 00:03:10,880 Speaker 1: So we'll see. But in the meantime, a big, big 65 00:03:10,960 --> 00:03:11,560 Speaker 1: drop in the sheds. 66 00:03:11,639 --> 00:03:14,240 Speaker 3: Yeah, not as hopeful perhaps as they'd have liked to 67 00:03:14,320 --> 00:03:17,120 Speaker 3: be taken on Nike in the US. Yeah, let's just 68 00:03:17,160 --> 00:03:19,200 Speaker 3: also talk about Rolls Royce, Okay, because we've got a 69 00:03:19,240 --> 00:03:20,359 Speaker 3: boost for them this morning. 70 00:03:20,800 --> 00:03:23,799 Speaker 5: Yeah, so it raised guidance this morning for the second 71 00:03:23,800 --> 00:03:26,400 Speaker 5: time this year. So we're not talking about the luxury cars, 72 00:03:26,400 --> 00:03:30,359 Speaker 5: but this is a company that makes aircraft, engines, defense systems, 73 00:03:30,440 --> 00:03:33,040 Speaker 5: power equipment as well, and so all of those end 74 00:03:33,080 --> 00:03:34,480 Speaker 5: markets are doing very well. 75 00:03:34,520 --> 00:03:37,880 Speaker 1: Of Course, we have airlines boosting capacity, so they need engines. 76 00:03:38,200 --> 00:03:41,160 Speaker 5: We have Europe boosting military spending, so they need those 77 00:03:41,200 --> 00:03:44,440 Speaker 5: defense systems. And then AI data centers are coming back 78 00:03:44,480 --> 00:03:46,920 Speaker 5: to that of course, popping up everywhere, and so there's 79 00:03:46,960 --> 00:03:48,360 Speaker 5: the need for power equipment. 80 00:03:48,480 --> 00:03:51,160 Speaker 1: So ros Royce as a result doing. 81 00:03:51,080 --> 00:03:53,600 Speaker 5: Very well because all of those end markets are really 82 00:03:54,080 --> 00:03:57,120 Speaker 5: big growth drivers at the moment, and engine makers as 83 00:03:57,120 --> 00:03:59,800 Speaker 5: a whole are doing very well. We had Empty Area 84 00:04:00,000 --> 00:04:04,800 Speaker 5: Engin's German engine maker this morning, also raising cash flow 85 00:04:04,880 --> 00:04:09,560 Speaker 5: guidance thanks to strong demand from both commercial and defense 86 00:04:09,560 --> 00:04:13,280 Speaker 5: customers for engines. And then Saffran, another maker of engines 87 00:04:13,280 --> 00:04:15,720 Speaker 5: but from France, also raising guidance earlier this week. 88 00:04:15,760 --> 00:04:17,760 Speaker 1: So quite an interesting sector to keep an eye on. 89 00:04:19,120 --> 00:04:23,160 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 90 00:04:23,240 --> 00:04:25,800 Speaker 2: us throughout the day for the latest roundup of companies 91 00:04:25,880 --> 00:04:28,960 Speaker 2: making news on Wall Street and for the latest market 92 00:04:29,000 --> 00:04:33,440 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, 93 00:04:33,560 --> 00:04:37,080 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 94 00:04:37,120 --> 00:04:38,599 Speaker 2: the Bloomberg Business app.