WEBVTT - STMicro Rises, Prosus Climbs, Abivax Plunges

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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 1>Now, let's take a look at some of the stocks

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<v Speaker 1>on the move today in Europe. I'm Lizzieberdan in London

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<v Speaker 1>with Stephen Carroll in Brussels, and we're joined by Bloomberg

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<v Speaker 1>reporter Chloe Melly. Chloe, good morning. I want to start

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<v Speaker 1>with st Micro, rising to highes on this bullish outlook

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<v Speaker 1>for artificial intelligence.

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<v Speaker 3>Yeah, absolutely so, more AI enthusiasm. It never never stops.

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<v Speaker 3>So we have a st Micro almost doubling its guidance

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<v Speaker 3>for data center revenues for this year, and so it

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<v Speaker 3>now targets one billion dollars in revenue in Before that

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<v Speaker 3>it had targeted something that it said nicely above five

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<v Speaker 3>hundred million. So that's a huge boost and that is

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<v Speaker 3>thanks of course to this surging demand for AI infrastructure,

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<v Speaker 3>and the company said that that could go even further,

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<v Speaker 3>said that revenues for that part of the business could

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<v Speaker 3>also double in twenty twenty seven if that demand it continues.

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<v Speaker 3>It's really interesting for st Micro because it was not

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<v Speaker 3>positioned well into this AI boom to begin with, but

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<v Speaker 3>rather had to kind of pivot into it. So it's

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<v Speaker 3>known primarily as a supplier of chips to the automotive

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<v Speaker 3>and consumer electronics sectors, so Tesla and Apple being two

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<v Speaker 3>very big customers for st Micro, but the CEO has

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<v Speaker 3>led this expansion more into aimoint data centers and st

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<v Speaker 3>Micro announced a deal this year to supply semiconductors to Amazon,

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<v Speaker 3>for example. And so this seems that that bet into

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<v Speaker 3>pivoting into AI is paying off very very well for

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<v Speaker 3>that company. And so we are seeing the shares up

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<v Speaker 3>very strongly this morning.

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<v Speaker 2>And let's turn to Process next surging this morning as well.

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<v Speaker 1>What's driving that rise?

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<v Speaker 3>So this is another AI story there for Process, so

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<v Speaker 3>up very strongly thanks to its shareholding. Intensen, so tensent

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<v Speaker 3>to the Chinese Internet giant doing very well because it's

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<v Speaker 3>set to launch an AI agent on the very popular

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<v Speaker 3>wee chat service, and so it's seen as a confirmation

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<v Speaker 3>that all of those AI efforts are paying off working

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<v Speaker 3>for that company and that it might be able to

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<v Speaker 3>catch up with rivals in that very competitive space. So

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<v Speaker 3>Tensen is said to be beginning a compliance process for

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<v Speaker 3>this very soon as soon as this month, and then

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<v Speaker 3>to test that AI agent on a small group of

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<v Speaker 3>users before starting an actual rollout, so it could be

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<v Speaker 3>coming very very soon. And so that gave a huge

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<v Speaker 3>boost to the stock in Hong Kong. And so we're

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<v Speaker 3>seeing Process reap the benefits of that as a kind

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<v Speaker 3>of knock on effect because it owns about twenty percent

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<v Speaker 3>of tens.

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<v Speaker 1>And finally, Applevacs, which not everyone may know. This is

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<v Speaker 1>a French biotech firm. It's sinking this morning, which is

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<v Speaker 1>probably an understatement, question marks every one of its new drugs.

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<v Speaker 3>Yeah, this is a big reversal of fortunes for this

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<v Speaker 3>French biotech company. It had seen a really major rally

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<v Speaker 3>in the shares recently because it had a very promising

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<v Speaker 3>drug or what look like a very promising drug, and

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<v Speaker 3>listen investors that expected that the trial results from this

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<v Speaker 3>drug would prompt takeover offers from really big companies in

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<v Speaker 3>that pharmaceutical sector. But now we have the trial results

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<v Speaker 3>and there's a bit of a problem there. So this

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<v Speaker 3>is a drug used to treat an inflammatory bowel disease

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<v Speaker 3>and it was more effective than expected in the study,

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<v Speaker 3>but Abyvex also reported cancer cases in several patients, and

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<v Speaker 3>so that means a much more complicated path to regulatory approval,

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<v Speaker 3>even if the cancers are not related at all to

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<v Speaker 3>the treatment itself. And so we've seen the shares in

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<v Speaker 3>the American chares in ABIVX jumped and then plunging, and

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<v Speaker 3>then today in Paris they are plummeting, as you say,

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<v Speaker 3>completely sinking. And so going Forward and Lissa are a

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<v Speaker 3>bit divided on what this means for the company. Some

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<v Speaker 3>are saying that the overhang will be difficult to move past,

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<v Speaker 3>and then others are saying that it's actually more noise

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<v Speaker 3>than anything else. So we'll see how the shares settle,

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<v Speaker 3>but for now they're taking a really, really major hit

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<v Speaker 3>after those trial results.

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