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 stocks on the move today here
Speaker 3: in Europe. I'm joined by Bloomberg brought a claimer lay
Speaker 3: good morning clothing. Let's start with Vodafone, which return to
Speaker 3: growth in Germany. So that's quite a significant move from Vodaphone.
Speaker 4: Yeah, absolutely so return to growth in Germany, which is
Speaker 4: its biggest market, and that is after bringing on one
Speaker 4: in one as a.
Speaker 1: New wholesale customer.
Speaker 4: It also targets now the upper end of its guidance
Speaker 4: for the full year, and so both of those things
Speaker 4: have boosted the shares and really confirms that the ongoing
Speaker 4: turnaround for Vodafone is paying off. So the focus over
Speaker 4: the last couple of years for the company has been
Speaker 4: really on simplifying operations and selling off some assets. So
Speaker 4: it divested businesses in Italy and Spain over the last
Speaker 4: few years and also merged with three here in the UK.
Speaker 4: So now after those divestments in this merger, the focus
Speaker 4: has really been on trying to revive growth in Germany
Speaker 4: and it's quite difficult market. There's a lot of price
Speaker 4: competition there. There's also a new regulatory change that is
Speaker 4: stopping housing associations from bundling TV packages with rent, which
Speaker 4: meant that Vodafon lost quite a lot of customers that
Speaker 4: were on contracts like that.
Speaker 1: But Vodafon has said that now the impact of that.
Speaker 4: Law change has has mostly passed and the migration of
Speaker 4: one on one customers onto its network is really starting
Speaker 4: to feed through into earnings and helps kind of mitigate
Speaker 4: all of those challenges.
Speaker 1: So quite a positive morning for Vodafone.
Speaker 3: Yeah, I'm so fascinated by the difference between mobile phone
Speaker 3: bills between Europe and the US because there's a lot
Speaker 3: of competition in Europe means it keeps the bills down,
Speaker 3: and also there's sort of more regulation as separation of
Speaker 3: the contract from the actual mobile phone set. Apparently that
Speaker 3: also really helps with competition. But I think, yeah, it's
Speaker 3: a very interesting distinction. If you ever want to get
Speaker 3: a mobile phone in the US.
Speaker 1: That's just tiding to know. Because I've paid ten pounds
Speaker 1: for my current one.
Speaker 3: Well in the US, I hear it's more like two
Speaker 3: hundred bucks. Oh wow, one hundred and fifty to two
Speaker 3: hundred bucks. That's the kind of an average in the US. Yeah,
Speaker 3: I'm always interested in that. So anyway, let's look about Henslt.
Speaker 3: Shall we an update there, the maker of censor systems
Speaker 3: and radar electronics.
Speaker 4: Yeah, so it told investors at his capital market stay
Speaker 4: that it targets ten percent revenue growth for next year,
Speaker 4: and that is a figure that actually disappointed investors are
Speaker 4: quite a lot.
Speaker 1: They expected more.
Speaker 4: They said that the guidance was very much in line
Speaker 4: with expectations, even though they had expected a bit of
Speaker 4: an upgrade, and that there was really a lack of
Speaker 4: a stronger outlook beyond twenty thirty. So that puts in
Speaker 4: spotlight as well the valuation for this defense company, which
Speaker 4: many now consider a little bit too stretched, a little
Speaker 4: bit too demanding. Maybe the key thing is that who
Speaker 4: knows that there will be a boost in the short
Speaker 4: term for earnings for a Hensalt. We know that there's
Speaker 4: contracts coming through, especially in Germany where the investment in
Speaker 4: defense is obviously particularly significant.
Speaker 1: But for investors now.
Speaker 4: They need to see growth beyond that and beyond the
Speaker 4: next few years. If that insane rise in the stock
Speaker 4: price is to be justified.
Speaker 3: Okay, so that on hen Salt. Let's also think about
Speaker 3: Croder why are you watching that company? And also the
Speaker 3: broader chemical sector.
Speaker 4: Yeah, we had a new note from Jeffrey's analyst on
Speaker 4: the chemical sector and they upgraded and downgraded a bunch
Speaker 4: of stocks, and the analysts said that looking for twenty
Speaker 4: twenty six earning support within that sector I was like
Speaker 4: searching for Maraje in the desert. So that is obviously
Speaker 4: not a good news for that sector as a whole.
Speaker 4: In particular, within that a downgraded Croda as well as
Speaker 4: Ivonic and Clariant because those phase the biggest challenges within
Speaker 4: the sector. Upgraded other names like Yara and jivodorin Lances
Speaker 4: as well, but across the board, analyst really did say
Speaker 4: that it was really tough to pinpoint anything that can
Speaker 4: buck the negative earnings momentum in that chemicals industry.
Speaker 1: It's quite obviously a.
Speaker 4: Tough sector because they depend so much on the health
Speaker 4: of their end market. So if there's a slowdown in
Speaker 4: consumer demand, that slows down demand for consumer chemicals, and
Speaker 4: then same thing with the slowdown in industrial activity. So
Speaker 4: it doesn't seem that they're out of the woods just
Speaker 4: yet that sector.
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