WEBVTT - SAP Jumps, Volvo Rises, Electrolux Sinks 

0:00:00.080 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.800 --> 0:00:18.560
<v Speaker 3>Let's take a look at some stocks on the move

0:00:18.600 --> 0:00:21.800
<v Speaker 3>today in Europe. I'm Rachel Levens with Caroline Hekka here

0:00:21.800 --> 0:00:25.240
<v Speaker 3>in London. We're joined by Bloomberg reporter Chloe Malay. Chloe,

0:00:25.280 --> 0:00:28.120
<v Speaker 3>good to have you here. Let's kick off with SAP,

0:00:28.760 --> 0:00:30.400
<v Speaker 3>talk us through the moves that we're seeing that.

0:00:30.920 --> 0:00:33.479
<v Speaker 1>Yeah, it's very interesting from SAP today. This is of

0:00:33.479 --> 0:00:35.360
<v Speaker 1>course not a visual medium, so I can't show the

0:00:35.360 --> 0:00:37.200
<v Speaker 1>to day share price chat, but it is a very

0:00:37.200 --> 0:00:40.360
<v Speaker 1>interesting chart because we essentially saw a lot of weakness

0:00:40.440 --> 0:00:43.360
<v Speaker 1>going into the results last night, partly because we had

0:00:43.400 --> 0:00:47.000
<v Speaker 1>Service Now, which is another software company but in the US,

0:00:47.440 --> 0:00:50.599
<v Speaker 1>coming out with very disappointing results. So the mood going

0:00:50.680 --> 0:00:54.200
<v Speaker 1>into the SAP report last night was, you know, based

0:00:54.200 --> 0:00:57.240
<v Speaker 1>on fears that this is a sector that's already facing

0:00:57.280 --> 0:01:00.000
<v Speaker 1>all of that AI disruption and now facing the impact

0:01:00.120 --> 0:01:02.960
<v Speaker 1>of the Iron War. But then very surprisingly we actually

0:01:03.000 --> 0:01:05.760
<v Speaker 1>saw very strong numbers from SAP, and so that's led

0:01:05.800 --> 0:01:08.720
<v Speaker 1>to a massive rebound in the shares this morning. So

0:01:09.080 --> 0:01:12.480
<v Speaker 1>the strategy for the company has been to convince customers

0:01:12.520 --> 0:01:17.039
<v Speaker 1>that new AI services within SAP's products are worth paying for,

0:01:17.120 --> 0:01:20.240
<v Speaker 1>and today's results seem to confirm that customers are willing

0:01:20.319 --> 0:01:22.320
<v Speaker 1>to do so, and so analysts have said that the

0:01:22.360 --> 0:01:25.840
<v Speaker 1>results really came as a relief. This actually echoes a

0:01:25.840 --> 0:01:28.480
<v Speaker 1>little bit of what happened with Declo Systems yesterday as well,

0:01:28.520 --> 0:01:31.640
<v Speaker 1>another software company that had been hit really badly during

0:01:31.640 --> 0:01:36.160
<v Speaker 1>the software sell off, of pessimism going into the results

0:01:36.160 --> 0:01:38.680
<v Speaker 1>and then metrics come in in you know, in line

0:01:38.760 --> 0:01:41.760
<v Speaker 1>or above expectations. So perhaps this shows that the software

0:01:41.760 --> 0:01:43.600
<v Speaker 1>sector is okay, at least for now.

0:01:44.000 --> 0:01:49.440
<v Speaker 4>Okay, So some relief on SAP switching to Volvo the

0:01:49.480 --> 0:01:53.400
<v Speaker 4>truck maker, not the car maker. They've raised their market forecast.

0:01:53.520 --> 0:01:54.840
<v Speaker 4>How do investors see that?

0:01:55.120 --> 0:01:57.160
<v Speaker 1>Yeah, it seems that perhaps the worst is over for

0:01:57.240 --> 0:02:00.400
<v Speaker 1>that truck market, that truck sector. So, as you said,

0:02:00.480 --> 0:02:03.320
<v Speaker 1>just raise this outlook for the European truck market. And

0:02:03.320 --> 0:02:06.120
<v Speaker 1>that is after a very good first quarter for orders,

0:02:06.160 --> 0:02:08.880
<v Speaker 1>and that was both in Europe but also in the America.

0:02:09.040 --> 0:02:12.480
<v Speaker 1>So this signals perhaps some early recovery in that track

0:02:12.520 --> 0:02:15.800
<v Speaker 1>industry after a really prolonged slump in demand and that

0:02:15.919 --> 0:02:18.160
<v Speaker 1>slowed down that we had seen as really due to

0:02:18.280 --> 0:02:21.520
<v Speaker 1>tariff costs, of course, but then also a lack of

0:02:21.520 --> 0:02:24.399
<v Speaker 1>clarity on regulation as well. But now we have got

0:02:24.440 --> 0:02:27.119
<v Speaker 1>a new tariff environment that is known, that is fairly stable,

0:02:27.400 --> 0:02:30.960
<v Speaker 1>and there's also clarity on the emissions regulation from the

0:02:31.080 --> 0:02:34.799
<v Speaker 1>US Environmental Protection Agency, so a lot of demand has

0:02:34.840 --> 0:02:37.760
<v Speaker 1>been unlocked as a result of that greater clarity. We've

0:02:37.800 --> 0:02:42.880
<v Speaker 1>also seen markets, construction markets and commercial vehicle markets rebound recently.

0:02:43.000 --> 0:02:46.280
<v Speaker 1>So all of that is really benefiting Volvo and its trucks,

0:02:46.320 --> 0:02:49.079
<v Speaker 1>and we've seen shares for Volvo and also for its

0:02:49.080 --> 0:02:52.360
<v Speaker 1>closest rival, Diamond Truck, actually move higher this morning. So

0:02:52.400 --> 0:02:54.440
<v Speaker 1>good news all around for the industry.

0:02:54.760 --> 0:02:55.280
<v Speaker 2>Very interesting.

0:02:55.800 --> 0:02:59.000
<v Speaker 3>So finally electroluxe and we're seeing a bit of a slide.

0:02:59.280 --> 0:03:00.560
<v Speaker 3>Tell us more about what's going on there.

0:03:00.639 --> 0:03:03.239
<v Speaker 1>Yeah, a massive, yeah, a massive job. Shares drop twenty

0:03:03.240 --> 0:03:06.080
<v Speaker 1>five percent this morning for Electrolux. It seems that people

0:03:06.160 --> 0:03:09.200
<v Speaker 1>aren't buying many home appliances, and that's very bad news

0:03:09.360 --> 0:03:12.440
<v Speaker 1>for Electrolux. It reported much weaker than expected results for

0:03:12.480 --> 0:03:14.880
<v Speaker 1>the first quarter, and that was due in particular to

0:03:14.919 --> 0:03:18.160
<v Speaker 1>weakness in North America. It also announced a big capital

0:03:18.280 --> 0:03:21.960
<v Speaker 1>rais and also announced a new joint venture with one

0:03:21.960 --> 0:03:24.320
<v Speaker 1>of its piers called Midair. So a lot of news

0:03:24.600 --> 0:03:26.800
<v Speaker 1>to digest and so, and it's just saying that the

0:03:26.800 --> 0:03:29.480
<v Speaker 1>structure of the joint venture is quite complex, it could

0:03:29.520 --> 0:03:32.160
<v Speaker 1>create some governance problems down the line, that it kind

0:03:32.160 --> 0:03:34.960
<v Speaker 1>of complicates the structure of the group and might also

0:03:35.000 --> 0:03:38.240
<v Speaker 1>bring some competition risk. And then they also noted that

0:03:38.440 --> 0:03:41.120
<v Speaker 1>this weakness in North America which I've mentioned, and then

0:03:41.160 --> 0:03:44.400
<v Speaker 1>also the rights issue will definitely be weighing on those

0:03:44.400 --> 0:03:48.000
<v Speaker 1>shares at least in the short term, although perhaps that

0:03:48.040 --> 0:03:51.160
<v Speaker 1>could be laying the groundwork for some improvement a little

0:03:51.160 --> 0:03:52.280
<v Speaker 1>bit laid down the line.

0:03:52.280 --> 0:03:54.360
<v Speaker 3>But in the meantime, we are seeing a lot, a

0:03:54.400 --> 0:03:55.720
<v Speaker 3>lot of weakness for electrial LUTs.

0:03:55.760 --> 0:04:01.560
<v Speaker 2>This morning the Stock Mover's Report from Bloomdio. Check back

0:04:01.560 --> 0:04:03.800
<v Speaker 2>with us throughout the day for the latest roundup of

0:04:03.840 --> 0:04:07.160
<v Speaker 2>companies making news on Wall Street and for the latest

0:04:07.160 --> 0:04:11.360
<v Speaker 2>market moving headlines. Listen to Bloomberg Radio Live, catch us

0:04:11.400 --> 0:04:15.120
<v Speaker 2>on YouTube, Bloomberg dot com, and on Applecarplay and Android

0:04:15.160 --> 0:04:17.159
<v Speaker 2>Auto with the Bloomberg Business app.