Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's look at some of the stocks on the move
Speaker 3: today here in Europe. I'm Caroline Hepkitt and I'm joined
Speaker 3: by Bloomberg Report of Chloe Malay. I want to get
Speaker 3: into the details of what's going on with these different
Speaker 3: stock stories. We may be coming to the tail end
Speaker 3: of earnings, but actually some really quite interesting ones today.
Speaker 3: Rolls is fascinating. They've had a big jump at the
Speaker 3: start of trading. Are kind of a big turnaround story.
Speaker 1: Yeah, absolutely, and Rose Rose.
Speaker 4: The reason why they're up so massively this morning is
Speaker 4: because there's a massive buyer back, and so of course
Speaker 4: investors are always delighted to get a big buy back
Speaker 4: like this. So roz Rose is planning to buy back
Speaker 4: as many as many shares as nine billion pounds over
Speaker 4: the next two years. So for context and scale, last
Speaker 4: year it was a one billion pound buy back, so
Speaker 4: it's a really really a massive jump there, and it
Speaker 4: also raised its midterm earnings targets. So there's two main
Speaker 4: things are really driving performance for ros Rose. There's first
Speaker 4: of all, a growing demand for plane engines, so that's
Speaker 4: both a civil aviation and in military aviation. But then
Speaker 4: the other thing is also there's growing demand for power
Speaker 4: systems that are used in the data centers. So although
Speaker 4: it's not the first name that we think about when
Speaker 4: we think of AI, ros Ross is actually a big
Speaker 4: data center story as well. And so all of that
Speaker 4: has really been driving the earnings, really driving performance for
Speaker 4: that company, and Morgan Stanley said that it was the
Speaker 4: gift that kept on giving.
Speaker 1: So it's very much a.
Speaker 4: Lot of an analyst and an investor enthusiasm for ros
Speaker 4: Rose at the moment, and we can see that reflected
Speaker 4: in that big jump in the shares today which actually
Speaker 4: hit a record high.
Speaker 3: Yeah, very interesting, isn't it, especially under the new CEO
Speaker 3: also who's been in place since twenty twenty three. Rollshas
Speaker 3: has got those big drivers, hasn't it? Both AI and
Speaker 3: let's think about sportswear company Puma sprinting ahead. Never know
Speaker 3: how to say, you know, is it Puma?
Speaker 1: Is it Puma? Take your pick? What's behind the JOm?
Speaker 1: I say Puma, but I don't know if that's correct.
Speaker 4: Well, our first glance, it doesn't look too good for Puma.
Speaker 4: It's expecting another loss this year, removed to dividend. But
Speaker 4: what investors are really focused on today and what is
Speaker 4: driving those shares is that the company is trying to
Speaker 4: position itself for a return to growth in twenty twenty seven.
Speaker 4: So the expectation is for twenty twenty six to be
Speaker 4: a bit of a transition a year where it will
Speaker 4: do a lot of different things like liquidate the inventory,
Speaker 4: rework the marketing strategy, create better direct to consumer channels
Speaker 4: as well, and then also develop new models in really
Speaker 4: important segments like running in football and so another thing
Speaker 4: as well there might have contributed to that optimism this
Speaker 4: morning is that sales in the fourth course or were
Speaker 4: actually a little bit better than expected, especially in the
Speaker 4: key Asian market. So that was another reason why investors
Speaker 4: were maybe quite reassured that demand for the products for
Speaker 4: Puma's products was then there's just a few changes that
Speaker 4: need to be made in terms of marketing, in terms
Speaker 4: of distribution to get Puma back on track, make it
Speaker 4: more competitive, make it more efficient. So all of that
Speaker 4: is being taken as quite encouraging, and there's you know,
Speaker 4: signs of a recovery that investors have.
Speaker 1: Been waiting for a long time for that company. Yeah,
Speaker 1: be interesting.
Speaker 3: I mean the World Cup, the FIFA World Cup. Surely
Speaker 3: Puma apparently maybe one of the challenger brands. Obviously the
Speaker 3: big ones are Nike and Added Ass when it comes
Speaker 3: to footwear and the clothing and everything for that massive
Speaker 3: footballing event. Okay, let's think about advertising from another perspective.
Speaker 3: WPP very very painful morning today.
Speaker 4: Yeah yeah, I mean a painful year, painful couple of
Speaker 4: years at least for WPP. Investors aren't as enthusiastic about
Speaker 4: this turnaround as they are with Pumas. So WPP is
Speaker 4: targeting about five hundred million pounds in cost savings by
Speaker 4: twenty twenty eight, and it's unveiled some changes to the
Speaker 4: organizational structure of the company as well. So the idea
Speaker 4: is to create four main units and that savings will
Speaker 4: come from eliminating some overlapping functions in places like HR
Speaker 4: or finance and then cutting spending on real estate as well,
Speaker 4: and then with that money save reinvest that in growth
Speaker 4: areas like AI and data. But perhaps this restructuring plan
Speaker 4: doesn't go far enough in the as of investors.
Speaker 1: Perhaps is the fact that the expected.
Speaker 4: Decline in revenue for this year is looking worse and expected,
Speaker 4: or it could also be the slash dividend, or actually
Speaker 4: all three, but in any case, shares out down this morning,
Speaker 4: and that is actually even without mentioning the AI disruption
Speaker 4: piece of it as well.
Speaker 1: So there's a lot of work for WPB to do.
Speaker 4: To get back on track, and that performance gap with the.
Speaker 1: Publicist is widening further and further.
Speaker 2: In the meantime, the Stock Movers Report from Bloomberg Radio.
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