1 00:00:02,520 --> 00:00:07,360 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 --> 00:00:18,480 Speaker 3: Let's look at some stocks on the move today here 5 00:00:18,480 --> 00:00:20,960 Speaker 3: in Europe. I'm joined by Bloomberg brought a claimer lay 6 00:00:21,040 --> 00:00:25,720 Speaker 3: good morning clothing. Let's start with Vodafone, which return to 7 00:00:25,920 --> 00:00:31,280 Speaker 3: growth in Germany. So that's quite a significant move from Vodaphone. 8 00:00:31,400 --> 00:00:34,000 Speaker 4: Yeah, absolutely so return to growth in Germany, which is 9 00:00:34,040 --> 00:00:37,080 Speaker 4: its biggest market, and that is after bringing on one 10 00:00:37,120 --> 00:00:37,879 Speaker 4: in one as a. 11 00:00:37,840 --> 00:00:39,120 Speaker 1: New wholesale customer. 12 00:00:39,680 --> 00:00:42,400 Speaker 4: It also targets now the upper end of its guidance 13 00:00:42,720 --> 00:00:45,360 Speaker 4: for the full year, and so both of those things 14 00:00:45,400 --> 00:00:48,479 Speaker 4: have boosted the shares and really confirms that the ongoing 15 00:00:48,520 --> 00:00:51,960 Speaker 4: turnaround for Vodafone is paying off. So the focus over 16 00:00:51,960 --> 00:00:54,280 Speaker 4: the last couple of years for the company has been 17 00:00:54,280 --> 00:00:58,639 Speaker 4: really on simplifying operations and selling off some assets. So 18 00:00:58,880 --> 00:01:01,680 Speaker 4: it divested businesses in Italy and Spain over the last 19 00:01:01,720 --> 00:01:04,839 Speaker 4: few years and also merged with three here in the UK. 20 00:01:05,800 --> 00:01:09,600 Speaker 4: So now after those divestments in this merger, the focus 21 00:01:09,600 --> 00:01:12,720 Speaker 4: has really been on trying to revive growth in Germany 22 00:01:12,800 --> 00:01:15,240 Speaker 4: and it's quite difficult market. There's a lot of price 23 00:01:15,319 --> 00:01:18,800 Speaker 4: competition there. There's also a new regulatory change that is 24 00:01:18,840 --> 00:01:23,880 Speaker 4: stopping housing associations from bundling TV packages with rent, which 25 00:01:23,920 --> 00:01:26,720 Speaker 4: meant that Vodafon lost quite a lot of customers that 26 00:01:26,800 --> 00:01:28,760 Speaker 4: were on contracts like that. 27 00:01:29,440 --> 00:01:31,679 Speaker 1: But Vodafon has said that now the impact of that. 28 00:01:31,760 --> 00:01:35,800 Speaker 4: Law change has has mostly passed and the migration of 29 00:01:35,800 --> 00:01:39,399 Speaker 4: one on one customers onto its network is really starting 30 00:01:39,400 --> 00:01:42,600 Speaker 4: to feed through into earnings and helps kind of mitigate 31 00:01:42,640 --> 00:01:43,600 Speaker 4: all of those challenges. 32 00:01:43,640 --> 00:01:45,760 Speaker 1: So quite a positive morning for Vodafone. 33 00:01:45,920 --> 00:01:49,200 Speaker 3: Yeah, I'm so fascinated by the difference between mobile phone 34 00:01:49,200 --> 00:01:52,320 Speaker 3: bills between Europe and the US because there's a lot 35 00:01:52,320 --> 00:01:55,680 Speaker 3: of competition in Europe means it keeps the bills down, 36 00:01:55,960 --> 00:01:59,720 Speaker 3: and also there's sort of more regulation as separation of 37 00:01:59,760 --> 00:02:03,800 Speaker 3: the contract from the actual mobile phone set. Apparently that 38 00:02:03,840 --> 00:02:06,800 Speaker 3: also really helps with competition. But I think, yeah, it's 39 00:02:06,840 --> 00:02:09,400 Speaker 3: a very interesting distinction. If you ever want to get 40 00:02:09,400 --> 00:02:10,640 Speaker 3: a mobile phone in the US. 41 00:02:10,960 --> 00:02:13,200 Speaker 1: That's just tiding to know. Because I've paid ten pounds 42 00:02:13,200 --> 00:02:14,120 Speaker 1: for my current one. 43 00:02:14,240 --> 00:02:16,639 Speaker 3: Well in the US, I hear it's more like two 44 00:02:16,720 --> 00:02:18,960 Speaker 3: hundred bucks. Oh wow, one hundred and fifty to two 45 00:02:19,040 --> 00:02:22,000 Speaker 3: hundred bucks. That's the kind of an average in the US. Yeah, 46 00:02:22,080 --> 00:02:25,320 Speaker 3: I'm always interested in that. So anyway, let's look about Henslt. 47 00:02:25,360 --> 00:02:28,040 Speaker 3: Shall we an update there, the maker of censor systems 48 00:02:28,080 --> 00:02:29,720 Speaker 3: and radar electronics. 49 00:02:29,880 --> 00:02:32,480 Speaker 4: Yeah, so it told investors at his capital market stay 50 00:02:32,520 --> 00:02:35,320 Speaker 4: that it targets ten percent revenue growth for next year, 51 00:02:35,360 --> 00:02:38,040 Speaker 4: and that is a figure that actually disappointed investors are 52 00:02:38,120 --> 00:02:38,600 Speaker 4: quite a lot. 53 00:02:38,639 --> 00:02:39,600 Speaker 1: They expected more. 54 00:02:39,880 --> 00:02:41,880 Speaker 4: They said that the guidance was very much in line 55 00:02:41,919 --> 00:02:44,520 Speaker 4: with expectations, even though they had expected a bit of 56 00:02:44,520 --> 00:02:46,679 Speaker 4: an upgrade, and that there was really a lack of 57 00:02:46,720 --> 00:02:49,880 Speaker 4: a stronger outlook beyond twenty thirty. So that puts in 58 00:02:49,880 --> 00:02:54,080 Speaker 4: spotlight as well the valuation for this defense company, which 59 00:02:54,160 --> 00:02:56,400 Speaker 4: many now consider a little bit too stretched, a little 60 00:02:56,400 --> 00:03:00,200 Speaker 4: bit too demanding. Maybe the key thing is that who 61 00:03:00,200 --> 00:03:02,360 Speaker 4: knows that there will be a boost in the short 62 00:03:02,400 --> 00:03:04,920 Speaker 4: term for earnings for a Hensalt. We know that there's 63 00:03:05,000 --> 00:03:08,000 Speaker 4: contracts coming through, especially in Germany where the investment in 64 00:03:08,080 --> 00:03:10,560 Speaker 4: defense is obviously particularly significant. 65 00:03:10,960 --> 00:03:12,000 Speaker 1: But for investors now. 66 00:03:11,919 --> 00:03:14,320 Speaker 4: They need to see growth beyond that and beyond the 67 00:03:14,360 --> 00:03:16,840 Speaker 4: next few years. If that insane rise in the stock 68 00:03:16,919 --> 00:03:18,200 Speaker 4: price is to be justified. 69 00:03:18,800 --> 00:03:22,680 Speaker 3: Okay, so that on hen Salt. Let's also think about 70 00:03:22,800 --> 00:03:25,840 Speaker 3: Croder why are you watching that company? And also the 71 00:03:25,880 --> 00:03:27,240 Speaker 3: broader chemical sector. 72 00:03:27,440 --> 00:03:30,440 Speaker 4: Yeah, we had a new note from Jeffrey's analyst on 73 00:03:30,560 --> 00:03:34,040 Speaker 4: the chemical sector and they upgraded and downgraded a bunch 74 00:03:34,040 --> 00:03:37,040 Speaker 4: of stocks, and the analysts said that looking for twenty 75 00:03:37,120 --> 00:03:40,320 Speaker 4: twenty six earning support within that sector I was like 76 00:03:40,360 --> 00:03:43,840 Speaker 4: searching for Maraje in the desert. So that is obviously 77 00:03:43,880 --> 00:03:46,240 Speaker 4: not a good news for that sector as a whole. 78 00:03:46,640 --> 00:03:49,240 Speaker 4: In particular, within that a downgraded Croda as well as 79 00:03:49,320 --> 00:03:52,800 Speaker 4: Ivonic and Clariant because those phase the biggest challenges within 80 00:03:52,840 --> 00:03:57,200 Speaker 4: the sector. Upgraded other names like Yara and jivodorin Lances 81 00:03:57,280 --> 00:03:59,840 Speaker 4: as well, but across the board, analyst really did say 82 00:03:59,840 --> 00:04:02,640 Speaker 4: that it was really tough to pinpoint anything that can 83 00:04:02,680 --> 00:04:06,760 Speaker 4: buck the negative earnings momentum in that chemicals industry. 84 00:04:06,800 --> 00:04:07,760 Speaker 1: It's quite obviously a. 85 00:04:07,680 --> 00:04:10,160 Speaker 4: Tough sector because they depend so much on the health 86 00:04:10,160 --> 00:04:12,320 Speaker 4: of their end market. So if there's a slowdown in 87 00:04:12,360 --> 00:04:15,800 Speaker 4: consumer demand, that slows down demand for consumer chemicals, and 88 00:04:15,800 --> 00:04:18,880 Speaker 4: then same thing with the slowdown in industrial activity. So 89 00:04:19,240 --> 00:04:21,080 Speaker 4: it doesn't seem that they're out of the woods just 90 00:04:21,160 --> 00:04:21,960 Speaker 4: yet that sector. 91 00:04:23,040 --> 00:04:27,080 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 92 00:04:27,160 --> 00:04:29,760 Speaker 2: us throughout the day for the latest roundup of companies 93 00:04:29,800 --> 00:04:32,920 Speaker 2: making news on Wall Street and for the latest market 94 00:04:32,960 --> 00:04:37,400 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 95 00:04:37,520 --> 00:04:41,000 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 96 00:04:41,080 --> 00:04:42,559 Speaker 2: the Bloomberg Business app.