WEBVTT - Rolls-Royce Climbs, Puma Gains, WPP Slumps  

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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 3>Let's look at some of the stocks on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hepkitt and I'm joined

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<v Speaker 3>by Bloomberg Report of Chloe Malay. I want to get

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<v Speaker 3>into the details of what's going on with these different

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<v Speaker 3>stock stories. We may be coming to the tail end

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<v Speaker 3>of earnings, but actually some really quite interesting ones today.

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<v Speaker 3>Rolls is fascinating. They've had a big jump at the

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<v Speaker 3>start of trading. Are kind of a big turnaround story.

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<v Speaker 1>Yeah, absolutely, and Rose Rose.

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<v Speaker 4>The reason why they're up so massively this morning is

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<v Speaker 4>because there's a massive buyer back, and so of course

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<v Speaker 4>investors are always delighted to get a big buy back

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<v Speaker 4>like this. So roz Rose is planning to buy back

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<v Speaker 4>as many as many shares as nine billion pounds over

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<v Speaker 4>the next two years. So for context and scale, last

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<v Speaker 4>year it was a one billion pound buy back, so

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<v Speaker 4>it's a really really a massive jump there, and it

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<v Speaker 4>also raised its midterm earnings targets. So there's two main

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<v Speaker 4>things are really driving performance for ros Rose. There's first

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<v Speaker 4>of all, a growing demand for plane engines, so that's

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<v Speaker 4>both a civil aviation and in military aviation. But then

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<v Speaker 4>the other thing is also there's growing demand for power

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<v Speaker 4>systems that are used in the data centers. So although

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<v Speaker 4>it's not the first name that we think about when

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<v Speaker 4>we think of AI, ros Ross is actually a big

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<v Speaker 4>data center story as well. And so all of that

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<v Speaker 4>has really been driving the earnings, really driving performance for

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<v Speaker 4>that company, and Morgan Stanley said that it was the

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<v Speaker 4>gift that kept on giving.

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<v Speaker 1>So it's very much a.

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<v Speaker 4>Lot of an analyst and an investor enthusiasm for ros

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<v Speaker 4>Rose at the moment, and we can see that reflected

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<v Speaker 4>in that big jump in the shares today which actually

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<v Speaker 4>hit a record high.

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<v Speaker 3>Yeah, very interesting, isn't it, especially under the new CEO

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<v Speaker 3>also who's been in place since twenty twenty three. Rollshas

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<v Speaker 3>has got those big drivers, hasn't it? Both AI and

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<v Speaker 3>let's think about sportswear company Puma sprinting ahead. Never know

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<v Speaker 3>how to say, you know, is it Puma?

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<v Speaker 1>Is it Puma? Take your pick? What's behind the JOm?

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<v Speaker 1>I say Puma, but I don't know if that's correct.

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<v Speaker 4>Well, our first glance, it doesn't look too good for Puma.

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<v Speaker 4>It's expecting another loss this year, removed to dividend. But

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<v Speaker 4>what investors are really focused on today and what is

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<v Speaker 4>driving those shares is that the company is trying to

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<v Speaker 4>position itself for a return to growth in twenty twenty seven.

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<v Speaker 4>So the expectation is for twenty twenty six to be

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<v Speaker 4>a bit of a transition a year where it will

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<v Speaker 4>do a lot of different things like liquidate the inventory,

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<v Speaker 4>rework the marketing strategy, create better direct to consumer channels

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<v Speaker 4>as well, and then also develop new models in really

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<v Speaker 4>important segments like running in football and so another thing

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<v Speaker 4>as well there might have contributed to that optimism this

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<v Speaker 4>morning is that sales in the fourth course or were

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<v Speaker 4>actually a little bit better than expected, especially in the

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<v Speaker 4>key Asian market. So that was another reason why investors

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<v Speaker 4>were maybe quite reassured that demand for the products for

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<v Speaker 4>Puma's products was then there's just a few changes that

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<v Speaker 4>need to be made in terms of marketing, in terms

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<v Speaker 4>of distribution to get Puma back on track, make it

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<v Speaker 4>more competitive, make it more efficient. So all of that

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<v Speaker 4>is being taken as quite encouraging, and there's you know,

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<v Speaker 4>signs of a recovery that investors have.

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<v Speaker 1>Been waiting for a long time for that company. Yeah,

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<v Speaker 1>be interesting.

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<v Speaker 3>I mean the World Cup, the FIFA World Cup. Surely

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<v Speaker 3>Puma apparently maybe one of the challenger brands. Obviously the

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<v Speaker 3>big ones are Nike and Added Ass when it comes

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<v Speaker 3>to footwear and the clothing and everything for that massive

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<v Speaker 3>footballing event. Okay, let's think about advertising from another perspective.

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<v Speaker 3>WPP very very painful morning today.

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<v Speaker 4>Yeah yeah, I mean a painful year, painful couple of

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<v Speaker 4>years at least for WPP. Investors aren't as enthusiastic about

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<v Speaker 4>this turnaround as they are with Pumas. So WPP is

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<v Speaker 4>targeting about five hundred million pounds in cost savings by

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<v Speaker 4>twenty twenty eight, and it's unveiled some changes to the

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<v Speaker 4>organizational structure of the company as well. So the idea

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<v Speaker 4>is to create four main units and that savings will

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<v Speaker 4>come from eliminating some overlapping functions in places like HR

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<v Speaker 4>or finance and then cutting spending on real estate as well,

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<v Speaker 4>and then with that money save reinvest that in growth

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<v Speaker 4>areas like AI and data. But perhaps this restructuring plan

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<v Speaker 4>doesn't go far enough in the as of investors.

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<v Speaker 1>Perhaps is the fact that the expected.

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<v Speaker 4>Decline in revenue for this year is looking worse and expected,

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<v Speaker 4>or it could also be the slash dividend, or actually

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<v Speaker 4>all three, but in any case, shares out down this morning,

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<v Speaker 4>and that is actually even without mentioning the AI disruption

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<v Speaker 4>piece of it as well.

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<v Speaker 1>So there's a lot of work for WPB to do.

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<v Speaker 4>To get back on track, and that performance gap with the.

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<v Speaker 1>Publicist is widening further and further.

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<v Speaker 2>In the meantime, the Stock Movers Report from Bloomberg Radio.

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<v Speaker 2>Check back with us throughout the day for the latest

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<v Speaker 2>roundup of companies making news on Wall Street and for

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