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 00:00:16,640 --> 00:00:18,000 Speaker 3: Let's look at some of the stocks on the move 5 00:00:18,040 --> 00:00:20,319 Speaker 3: today here in Europe. I'm Caroline Hepkitt and I'm joined 6 00:00:20,320 --> 00:00:22,720 Speaker 3: by Bloomberg Report of Chloe Malay. I want to get 7 00:00:22,760 --> 00:00:25,640 Speaker 3: into the details of what's going on with these different 8 00:00:25,680 --> 00:00:28,000 Speaker 3: stock stories. We may be coming to the tail end 9 00:00:28,000 --> 00:00:30,400 Speaker 3: of earnings, but actually some really quite interesting ones today. 10 00:00:30,680 --> 00:00:33,680 Speaker 3: Rolls is fascinating. They've had a big jump at the 11 00:00:33,720 --> 00:00:38,360 Speaker 3: start of trading. Are kind of a big turnaround story. 12 00:00:38,240 --> 00:00:39,960 Speaker 1: Yeah, absolutely, and Rose Rose. 13 00:00:40,080 --> 00:00:42,320 Speaker 4: The reason why they're up so massively this morning is 14 00:00:42,360 --> 00:00:44,920 Speaker 4: because there's a massive buyer back, and so of course 15 00:00:44,960 --> 00:00:47,600 Speaker 4: investors are always delighted to get a big buy back 16 00:00:47,680 --> 00:00:50,560 Speaker 4: like this. So roz Rose is planning to buy back 17 00:00:50,600 --> 00:00:53,680 Speaker 4: as many as many shares as nine billion pounds over 18 00:00:53,720 --> 00:00:56,600 Speaker 4: the next two years. So for context and scale, last 19 00:00:56,640 --> 00:00:59,120 Speaker 4: year it was a one billion pound buy back, so 20 00:00:59,160 --> 00:01:01,920 Speaker 4: it's a really really a massive jump there, and it 21 00:01:01,960 --> 00:01:05,800 Speaker 4: also raised its midterm earnings targets. So there's two main 22 00:01:05,880 --> 00:01:08,800 Speaker 4: things are really driving performance for ros Rose. There's first 23 00:01:08,800 --> 00:01:11,119 Speaker 4: of all, a growing demand for plane engines, so that's 24 00:01:11,160 --> 00:01:14,360 Speaker 4: both a civil aviation and in military aviation. But then 25 00:01:14,400 --> 00:01:17,720 Speaker 4: the other thing is also there's growing demand for power 26 00:01:17,720 --> 00:01:21,280 Speaker 4: systems that are used in the data centers. So although 27 00:01:21,280 --> 00:01:23,479 Speaker 4: it's not the first name that we think about when 28 00:01:23,520 --> 00:01:25,640 Speaker 4: we think of AI, ros Ross is actually a big 29 00:01:25,920 --> 00:01:28,880 Speaker 4: data center story as well. And so all of that 30 00:01:28,920 --> 00:01:32,200 Speaker 4: has really been driving the earnings, really driving performance for 31 00:01:32,240 --> 00:01:36,560 Speaker 4: that company, and Morgan Stanley said that it was the 32 00:01:36,600 --> 00:01:37,840 Speaker 4: gift that kept on giving. 33 00:01:38,120 --> 00:01:39,440 Speaker 1: So it's very much a. 34 00:01:39,400 --> 00:01:43,440 Speaker 4: Lot of an analyst and an investor enthusiasm for ros 35 00:01:43,520 --> 00:01:45,759 Speaker 4: Rose at the moment, and we can see that reflected 36 00:01:45,800 --> 00:01:48,120 Speaker 4: in that big jump in the shares today which actually 37 00:01:48,160 --> 00:01:49,280 Speaker 4: hit a record high. 38 00:01:49,440 --> 00:01:52,840 Speaker 3: Yeah, very interesting, isn't it, especially under the new CEO 39 00:01:53,000 --> 00:01:56,480 Speaker 3: also who's been in place since twenty twenty three. Rollshas 40 00:01:56,880 --> 00:02:00,840 Speaker 3: has got those big drivers, hasn't it? Both AI and 41 00:02:00,920 --> 00:02:07,080 Speaker 3: let's think about sportswear company Puma sprinting ahead. Never know 42 00:02:07,120 --> 00:02:08,519 Speaker 3: how to say, you know, is it Puma? 43 00:02:08,600 --> 00:02:11,679 Speaker 1: Is it Puma? Take your pick? What's behind the JOm? 44 00:02:11,800 --> 00:02:13,760 Speaker 1: I say Puma, but I don't know if that's correct. 45 00:02:13,800 --> 00:02:16,520 Speaker 4: Well, our first glance, it doesn't look too good for Puma. 46 00:02:16,720 --> 00:02:19,320 Speaker 4: It's expecting another loss this year, removed to dividend. But 47 00:02:19,560 --> 00:02:21,840 Speaker 4: what investors are really focused on today and what is 48 00:02:21,919 --> 00:02:24,480 Speaker 4: driving those shares is that the company is trying to 49 00:02:24,480 --> 00:02:28,160 Speaker 4: position itself for a return to growth in twenty twenty seven. 50 00:02:28,240 --> 00:02:30,680 Speaker 4: So the expectation is for twenty twenty six to be 51 00:02:30,760 --> 00:02:33,000 Speaker 4: a bit of a transition a year where it will 52 00:02:33,040 --> 00:02:35,320 Speaker 4: do a lot of different things like liquidate the inventory, 53 00:02:35,760 --> 00:02:40,200 Speaker 4: rework the marketing strategy, create better direct to consumer channels 54 00:02:40,240 --> 00:02:43,200 Speaker 4: as well, and then also develop new models in really 55 00:02:43,200 --> 00:02:46,720 Speaker 4: important segments like running in football and so another thing 56 00:02:46,800 --> 00:02:49,200 Speaker 4: as well there might have contributed to that optimism this 57 00:02:49,280 --> 00:02:51,600 Speaker 4: morning is that sales in the fourth course or were 58 00:02:51,680 --> 00:02:55,519 Speaker 4: actually a little bit better than expected, especially in the 59 00:02:55,639 --> 00:02:59,320 Speaker 4: key Asian market. So that was another reason why investors 60 00:02:59,320 --> 00:03:03,040 Speaker 4: were maybe quite reassured that demand for the products for 61 00:03:03,080 --> 00:03:06,800 Speaker 4: Puma's products was then there's just a few changes that 62 00:03:06,960 --> 00:03:09,600 Speaker 4: need to be made in terms of marketing, in terms 63 00:03:09,600 --> 00:03:12,520 Speaker 4: of distribution to get Puma back on track, make it 64 00:03:12,560 --> 00:03:15,440 Speaker 4: more competitive, make it more efficient. So all of that 65 00:03:15,600 --> 00:03:18,760 Speaker 4: is being taken as quite encouraging, and there's you know, 66 00:03:18,800 --> 00:03:20,520 Speaker 4: signs of a recovery that investors have. 67 00:03:20,480 --> 00:03:22,799 Speaker 1: Been waiting for a long time for that company. Yeah, 68 00:03:22,960 --> 00:03:23,440 Speaker 1: be interesting. 69 00:03:23,840 --> 00:03:26,120 Speaker 3: I mean the World Cup, the FIFA World Cup. Surely 70 00:03:26,240 --> 00:03:29,880 Speaker 3: Puma apparently maybe one of the challenger brands. Obviously the 71 00:03:29,880 --> 00:03:31,800 Speaker 3: big ones are Nike and Added Ass when it comes 72 00:03:31,840 --> 00:03:35,600 Speaker 3: to footwear and the clothing and everything for that massive 73 00:03:35,600 --> 00:03:38,880 Speaker 3: footballing event. Okay, let's think about advertising from another perspective. 74 00:03:39,080 --> 00:03:42,440 Speaker 3: WPP very very painful morning today. 75 00:03:42,720 --> 00:03:45,160 Speaker 4: Yeah yeah, I mean a painful year, painful couple of 76 00:03:45,280 --> 00:03:48,920 Speaker 4: years at least for WPP. Investors aren't as enthusiastic about 77 00:03:48,920 --> 00:03:52,200 Speaker 4: this turnaround as they are with Pumas. So WPP is 78 00:03:52,200 --> 00:03:55,480 Speaker 4: targeting about five hundred million pounds in cost savings by 79 00:03:55,520 --> 00:03:59,200 Speaker 4: twenty twenty eight, and it's unveiled some changes to the 80 00:03:59,320 --> 00:04:02,440 Speaker 4: organizational structure of the company as well. So the idea 81 00:04:02,480 --> 00:04:06,000 Speaker 4: is to create four main units and that savings will 82 00:04:06,000 --> 00:04:10,120 Speaker 4: come from eliminating some overlapping functions in places like HR 83 00:04:10,280 --> 00:04:13,240 Speaker 4: or finance and then cutting spending on real estate as well, 84 00:04:13,280 --> 00:04:16,200 Speaker 4: and then with that money save reinvest that in growth 85 00:04:16,240 --> 00:04:20,279 Speaker 4: areas like AI and data. But perhaps this restructuring plan 86 00:04:20,320 --> 00:04:22,520 Speaker 4: doesn't go far enough in the as of investors. 87 00:04:22,760 --> 00:04:24,719 Speaker 1: Perhaps is the fact that the expected. 88 00:04:24,320 --> 00:04:27,480 Speaker 4: Decline in revenue for this year is looking worse and expected, 89 00:04:27,920 --> 00:04:30,000 Speaker 4: or it could also be the slash dividend, or actually 90 00:04:30,040 --> 00:04:33,320 Speaker 4: all three, but in any case, shares out down this morning, 91 00:04:33,360 --> 00:04:37,120 Speaker 4: and that is actually even without mentioning the AI disruption 92 00:04:37,240 --> 00:04:38,280 Speaker 4: piece of it as well. 93 00:04:38,320 --> 00:04:40,880 Speaker 1: So there's a lot of work for WPB to do. 94 00:04:40,839 --> 00:04:44,080 Speaker 4: To get back on track, and that performance gap with the. 95 00:04:44,120 --> 00:04:46,120 Speaker 1: Publicist is widening further and further. 96 00:04:46,160 --> 00:04:50,640 Speaker 2: In the meantime, the Stock Movers Report from Bloomberg Radio. 97 00:04:51,120 --> 00:04:53,279 Speaker 2: Check back with us throughout the day for the latest 98 00:04:53,360 --> 00:04:56,520 Speaker 2: roundup of companies making news on Wall Street and for 99 00:04:56,640 --> 00:05:00,559 Speaker 2: the latest market moving headlines. 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