WEBVTT - ASML Rises, Orsted Drops, Galderma Slips 

0:00:02.540 --> 0:00:06.230
<v Speaker 1>Bloomberg Audio Studios. Podcasts. Radio.

0:00:06.670 --> 0:00:07.070
<v Speaker 2>News.

0:00:08.550 --> 0:00:12.430
<v Speaker 1>The Stock Movers Report. Your roundup of companies making moves

0:00:12.490 --> 0:00:15.870
<v Speaker 1>in the stock market, harnessing the power of Bloomberg data.

0:00:16.590 --> 0:00:18.470
<v Speaker 2>Let's take a look at some of the stocks on

0:00:18.489 --> 0:00:21.890
<v Speaker 2>the move today in Europe now. I'm Tiwa Adebayo alongside

0:00:21.930 --> 0:00:25.140
<v Speaker 2>Caroline Hebker, and we're joined by Bloomberg's breaking news editor,

0:00:25.160 --> 0:00:30.320
<v Speaker 2>Louise Moon. Now, Louise, we've got possibly Europe's most AI-adjacent giant, ASML,

0:00:30.660 --> 0:00:32.159
<v Speaker 2>has earnings out today.

0:00:32.760 --> 0:00:33.419
<v Speaker 1>How is it doing?

0:00:34.080 --> 0:00:37.360
<v Speaker 3>Shares are rising up about 3.5% in morning trading on

0:00:37.400 --> 0:00:39.040
<v Speaker 3>the back of those. As you say, it was their results,

0:00:39.060 --> 0:00:42.180
<v Speaker 3>their third quarter results. So, record high gross margin, a

0:00:42.880 --> 0:00:48.279
<v Speaker 3>higher full-year outlook. Essentially, demand is very strong. So, they're

0:00:48.300 --> 0:00:50.060
<v Speaker 3>saying that their current supply won't be able to fully

0:00:50.080 --> 0:00:54.010
<v Speaker 3>meet demand in 2027 and 2028. So, they're looking for

0:00:54.050 --> 0:00:58.430
<v Speaker 3>ways to produce more chipmaking machines over the next two years.

0:00:59.010 --> 0:01:01.630
<v Speaker 3>And their new target, they're going to give a new

0:01:01.670 --> 0:01:05.209
<v Speaker 3>target that is beyond one that they gave relatively recently. So,

0:01:05.750 --> 0:01:09.289
<v Speaker 3>soaring demand, essentially. Obviously, this comes with the wider backdrop

0:01:09.350 --> 0:01:12.390
<v Speaker 3>of more recently people have been questioning if the AI

0:01:12.410 --> 0:01:15.390
<v Speaker 3>boom is sustainable. So, these results potentially showing a bit

0:01:15.410 --> 0:01:18.310
<v Speaker 3>of a window into chipmakers' plans. ASML have got quite

0:01:18.330 --> 0:01:20.890
<v Speaker 3>a long lead time. So, it's a lead time of

0:01:20.910 --> 0:01:23.880
<v Speaker 3>about over a year between order and delivery. So, that

0:01:23.920 --> 0:01:27.410
<v Speaker 3>demand is really showing what's happening in the AI space

0:01:27.440 --> 0:01:29.840
<v Speaker 3>and shares rising there, as I say, about almost 4%.

0:01:29.840 --> 0:01:32.610
<v Speaker 4>Yeah. Nice problem to have, isn't it? It's the only

0:01:32.670 --> 0:01:36.229
<v Speaker 4>company in the world that's making these cutting-edge lithography machines

0:01:36.270 --> 0:01:39.470
<v Speaker 4>that you need, obviously, to make the semiconductors to deliver

0:01:39.510 --> 0:01:46.230
<v Speaker 4>the AI. Now, in terms of other stories, Orsted stuck

0:01:46.310 --> 0:01:48.490
<v Speaker 4>in this ongoing saga with the White House.

0:01:48.510 --> 0:01:48.580
<v Speaker 2>Yes.

0:01:48.930 --> 0:01:49.330
<v Speaker 4>Indeed.

0:01:49.450 --> 0:01:52.870
<v Speaker 3>And the latest being that the Justice Department in the U.S.

0:01:52.890 --> 0:01:55.370
<v Speaker 3>has asked the federal court to re-evaluate quite a key

0:01:55.450 --> 0:01:57.510
<v Speaker 3>permit for one of their offshore wind farms.

0:01:57.580 --> 0:01:58.920
<v Speaker 4>That's off Rhode Island.

0:01:59.520 --> 0:02:02.760
<v Speaker 3>It began producing power in March, but now they're wanting

0:02:02.780 --> 0:02:05.380
<v Speaker 3>it to re-evaluate the permit, make sure it's in compliance

0:02:05.400 --> 0:02:08.970
<v Speaker 3>with with a federal law. So, essentially, it could be

0:02:09.160 --> 0:02:13.350
<v Speaker 3>quite a big setback. As you say, it comes after

0:02:14.210 --> 0:02:18.510
<v Speaker 3>quite a lot of hurdles for Orsted and the sector

0:02:18.570 --> 0:02:21.090
<v Speaker 3>in the U.S. under the Trump administration. There'd been an

0:02:21.130 --> 0:02:25.400
<v Speaker 3>agreement in September to reform the U.S. system in terms

0:02:25.440 --> 0:02:29.060
<v Speaker 3>of approving infrastructure products, and therefore, there was hope of

0:02:29.139 --> 0:02:32.810
<v Speaker 3>less hurdles. That included some assurances from the Trump administration

0:02:33.190 --> 0:02:37.910
<v Speaker 3>to stop blocking some wind and solar developments that had permits.

0:02:38.540 --> 0:02:42.320
<v Speaker 3>But this is the latest potential hurdle. Obviously, it could

0:02:42.460 --> 0:02:49.160
<v Speaker 3>add regulatory execution risk. An analyst in Barclays saying, you know,

0:02:49.240 --> 0:02:53.520
<v Speaker 3>it sees the potential for impairment at their third quarter results. So,

0:02:53.580 --> 0:02:57.730
<v Speaker 3>shares unsurprisingly dropping over about 4% on the back of this.

0:02:58.460 --> 0:03:03.110
<v Speaker 2>Okay, that's the latest from Allstead. But looking to cosmetics now,

0:03:03.150 --> 0:03:05.970
<v Speaker 2>and the skincare company Galderma looking to grow a new

0:03:06.050 --> 0:03:07.130
<v Speaker 2>layer of its business.

0:03:07.490 --> 0:03:11.000
<v Speaker 3>Indeed, yeah. They've bought a California-based company called Zoskin Health.

0:03:11.460 --> 0:03:15.239
<v Speaker 3>That's from Blackstone for about US $ 1. 5 billion. It's an

0:03:15.380 --> 0:03:19.389
<v Speaker 3>all-cash deal. And essentially, it's Galderma. So, Galderma is based

0:03:19.430 --> 0:03:23.530
<v Speaker 3>in Switzerland, the dermatology firm. Essentially, it's them pushing into

0:03:23.760 --> 0:03:27.600
<v Speaker 3>two things. One, medical-grade skincare, which is quite a fast-growing segment.

0:03:27.980 --> 0:03:30.530
<v Speaker 3>And two, further into the US. So, they're expanding their

0:03:30.620 --> 0:03:33.710
<v Speaker 3>US skincare portfolio. And the CEO actually said that the

0:03:33.810 --> 0:03:37.190
<v Speaker 3>US … will at some point soon probably account for

0:03:37.210 --> 0:03:41.870
<v Speaker 3>the majority of their sales. Shares, however, down about 1.5%

0:03:41.870 --> 0:03:44.210
<v Speaker 3>in morning trading. Analysts are saying that, yes, it's a

0:03:44.230 --> 0:03:47.420
<v Speaker 3>good fit. It's attractive. It's a fast-growing segment. But the

0:03:47.500 --> 0:03:51.400
<v Speaker 3>multiple is fairly high. And that's what's dragging shares slightly

0:03:51.440 --> 0:03:51.720
<v Speaker 3>lower there.

0:03:52.880 --> 0:03:56.930
<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

0:03:56.990 --> 0:03:59.530
<v Speaker 1>us throughout the day for the latest roundup of companies

0:03:59.630 --> 0:04:03.550
<v Speaker 1>making news on Wall Street. And for the latest market-moving headlines,

0:04:03.850 --> 0:04:08.380
<v Speaker 1>listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com,

0:04:08.600 --> 0:04:11.560
<v Speaker 1>and on Apple CarPlay and Android Auto with the Bloomberg

0:04:11.600 --> 0:04:12.260
<v Speaker 1>Business app.