1
00:00:02,520 --> 00:00:07,440
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
00:00:16,320 --> 00:00:17,760
Speaker 3: Now, let's take a look at some of the stocks

5
00:00:17,760 --> 00:00:20,040
Speaker 3: on the move today in Europe. I'm Lizzie Burden with

6
00:00:20,079 --> 00:00:23,439
Speaker 3: Stephen Carroll and we're joined by our reporter Chloe Melly. Chloe,

7
00:00:23,560 --> 00:00:25,480
Speaker 3: I want to start with the London Stock Exchange Group

8
00:00:25,480 --> 00:00:27,880
Speaker 3: because we've been speaking to the CEO this morning. It

9
00:00:27,960 --> 00:00:30,680
Speaker 3: seems that are investors are us upbeat as he was

10
00:00:30,720 --> 00:00:32,040
Speaker 3: about the group's prospects.

11
00:00:32,320 --> 00:00:35,000
Speaker 1: Yeah, absolutely, it seems like they are. But there's also

12
00:00:35,040 --> 00:00:37,000
Speaker 1: the big buy Beck and I think that's also part

13
00:00:37,000 --> 00:00:40,200
Speaker 1: of the reason why the shares were up this ribrary

14
00:00:40,880 --> 00:00:42,960
Speaker 1: a big buy a bag of three billion pounds that

15
00:00:43,080 --> 00:00:46,559
Speaker 1: was announced, and also the company also raises dividends. So

16
00:00:47,120 --> 00:00:49,519
Speaker 1: the results come just a couple of weeks after the

17
00:00:49,560 --> 00:00:53,040
Speaker 1: activist investor Elliot Investment Management, announced that it was taking

18
00:00:53,040 --> 00:00:55,640
Speaker 1: a stake in the company and it was pushing in

19
00:00:55,720 --> 00:01:00,400
Speaker 1: particular for a five billion pound share buyback program. So

20
00:01:00,760 --> 00:01:03,360
Speaker 1: it's fall short of that a little bit, but it

21
00:01:03,400 --> 00:01:05,920
Speaker 1: is still the biggest buyer back ever announced this through

22
00:01:06,000 --> 00:01:08,880
Speaker 1: but inbound buy back, and so the c seems that

23
00:01:08,920 --> 00:01:11,960
Speaker 1: investors are quite happy about that. Another big thing that's

24
00:01:11,959 --> 00:01:15,240
Speaker 1: been happening with the London Stock Exchange Group lately there

25
00:01:15,240 --> 00:01:18,240
Speaker 1: has been this this AI sell off. Of course, it's

26
00:01:18,280 --> 00:01:21,120
Speaker 1: some concern that Lsex could be impacted because of the

27
00:01:21,200 --> 00:01:24,960
Speaker 1: data side of the business, which is about half of revenue,

28
00:01:25,000 --> 00:01:28,000
Speaker 1: and AI models could technically be competing with ol SEC

29
00:01:28,080 --> 00:01:31,520
Speaker 1: to distribute this data and analytics, and so Elliott is

30
00:01:31,560 --> 00:01:34,520
Speaker 1: also pushing for the company to show how it could

31
00:01:34,680 --> 00:01:38,160
Speaker 1: stend to be a beneficiary of AI rather than see

32
00:01:38,200 --> 00:01:40,800
Speaker 1: it as as a risk. So all those shares are

33
00:01:40,800 --> 00:01:43,640
Speaker 1: doing well today on this on the on the on

34
00:01:43,680 --> 00:01:45,679
Speaker 1: the guidance, but then also on the buy back. It's

35
00:01:45,680 --> 00:01:48,640
Speaker 1: still something bringing in the background with this AI thing

36
00:01:48,720 --> 00:01:51,200
Speaker 1: where ol SG will have to maybe provide a bit

37
00:01:51,240 --> 00:01:52,560
Speaker 1: more clarity on that.

38
00:01:53,440 --> 00:01:55,720
Speaker 2: Okay, So that's the news out of l SEG this morning.

39
00:01:55,920 --> 00:01:59,240
Speaker 2: Enngi's shares getting a lift today by a deal in

40
00:01:59,280 --> 00:01:59,760
Speaker 2: the UK.

41
00:02:00,480 --> 00:02:03,200
Speaker 1: Yeah, it's a big ten point five billion pound deal

42
00:02:03,280 --> 00:02:06,120
Speaker 1: to buy UK Power Networks and so as the name suggests,

43
00:02:06,160 --> 00:02:09,600
Speaker 1: it is a power distribution network the UK is largest.

44
00:02:10,280 --> 00:02:12,520
Speaker 1: It was previously part of CK Group, and so this

45
00:02:12,600 --> 00:02:16,400
Speaker 1: acquisition FERGI is part of a strategy to capitalize, of

46
00:02:16,480 --> 00:02:20,000
Speaker 1: course on this massive surge in electricity demand that we've

47
00:02:20,000 --> 00:02:24,600
Speaker 1: seen recently driven by electric vehicles, driven by data centers

48
00:02:24,639 --> 00:02:27,800
Speaker 1: in the broader sort of energy transition as well. And

49
00:02:27,840 --> 00:02:30,600
Speaker 1: it's also part of a strategy of trying to reduce

50
00:02:30,680 --> 00:02:34,000
Speaker 1: exposure to activities linked more to fossil fuels because those

51
00:02:34,000 --> 00:02:37,040
Speaker 1: are a little bit more volatile, and focus instead on

52
00:02:37,120 --> 00:02:41,280
Speaker 1: more kind of renewables infrastructure. And it seems that the

53
00:02:41,280 --> 00:02:44,920
Speaker 1: deal is been taken as very well by the market.

54
00:02:45,040 --> 00:02:48,040
Speaker 1: JP Morgan, analyst, said that it's not common to see

55
00:02:48,120 --> 00:02:50,640
Speaker 1: a deal where the company pays a reasonable price for

56
00:02:50,720 --> 00:02:53,160
Speaker 1: a quality asset and that it results in both a

57
00:02:53,240 --> 00:02:57,360
Speaker 1: qualitative and quantitative improvement in earning. So there seems to

58
00:02:57,400 --> 00:03:00,880
Speaker 1: be a lot of investor in analysts enthusiasm for this deal,

59
00:03:01,000 --> 00:03:03,160
Speaker 1: and you know, they seem to think that it's a

60
00:03:03,200 --> 00:03:06,360
Speaker 1: good move from ENNGI to bought UK Power Networks.

61
00:03:06,600 --> 00:03:08,840
Speaker 3: Finally, I want to turn to Schneider Electric. Those shares

62
00:03:08,960 --> 00:03:11,800
Speaker 3: up three point six off the back of their earnings

63
00:03:11,960 --> 00:03:14,080
Speaker 3: getting a lift, it seems from the boom and data centers.

64
00:03:14,200 --> 00:03:18,120
Speaker 1: Yeah, absolutely so, expecting seals in profit to rise quite

65
00:03:18,120 --> 00:03:20,120
Speaker 1: a bit in twenty twenty six. And as you say,

66
00:03:20,200 --> 00:03:22,720
Speaker 1: driven of course by data centers, which has been a

67
00:03:22,800 --> 00:03:25,760
Speaker 1: big part of the Schneider Electric story for a while now.

68
00:03:26,280 --> 00:03:28,480
Speaker 1: It's been one of the main beneficiaries of the AI

69
00:03:28,600 --> 00:03:32,680
Speaker 1: boom because it provides things like server racks, calling technologies,

70
00:03:33,000 --> 00:03:36,880
Speaker 1: electrical equipment to data centers, and the sales actually hit

71
00:03:36,920 --> 00:03:39,840
Speaker 1: a record in twenty twenty five because of that really

72
00:03:39,840 --> 00:03:43,320
Speaker 1: strong demand from data center customers, and the order backlog

73
00:03:43,400 --> 00:03:46,160
Speaker 1: is also looking in really good shape. And we see

74
00:03:46,160 --> 00:03:49,120
Speaker 1: that across this sector of electrical equipment providers. It's the

75
00:03:49,120 --> 00:03:52,560
Speaker 1: same story. We've got log On, for example, another French

76
00:03:52,600 --> 00:03:55,800
Speaker 1: company in that sector, had the sales in this data

77
00:03:55,840 --> 00:03:59,280
Speaker 1: center segment and more than tripling since twenty twenty and

78
00:03:59,640 --> 00:04:02,560
Speaker 1: we also had earnings coming in ahead of expectations a

79
00:04:02,600 --> 00:04:05,040
Speaker 1: couple of weeks ago. In the US, we've got names

80
00:04:05,080 --> 00:04:09,560
Speaker 1: like Eton Invertive also having really significant jumps in orders,

81
00:04:10,240 --> 00:04:12,880
Speaker 1: and that growth is likely to continue. You know, the

82
00:04:13,040 --> 00:04:16,520
Speaker 1: hyperscalers are planning. It combines six hundred and fifty billion

83
00:04:16,680 --> 00:04:20,720
Speaker 1: dollars investments in data centers in this year alone, and

84
00:04:20,760 --> 00:04:22,640
Speaker 1: a lot of that money is going to have to

85
00:04:22,680 --> 00:04:27,240
Speaker 1: go to those electrical equipments and calling equipments and serveracs,

86
00:04:27,279 --> 00:04:30,080
Speaker 1: et cetera. And so for Schneider Electric that means a

87
00:04:30,120 --> 00:04:31,240
Speaker 1: lot of growth going forward.

88
00:04:32,560 --> 00:04:36,600
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with

89
00:04:36,680 --> 00:04:39,279
Speaker 2: us throughout the day for the latest roundup of companies

90
00:04:39,320 --> 00:04:42,440
Speaker 2: making news on Wall Street and for the latest market

91
00:04:42,480 --> 00:04:46,960
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

92
00:04:47,040 --> 00:04:50,520
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with

93
00:04:50,600 --> 00:04:52,080
Speaker 2: the Bloomberg Business app.