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 --> 00:00:16,960 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,520 --> 00:00:18,479 Speaker 1: Let's get a sense of what's going on out there 5 00:00:19,120 --> 00:00:23,320 Speaker 1: with those markets. Returned by Christina Aquino, Bloomberg News. Christine, 6 00:00:23,320 --> 00:00:25,080 Speaker 1: what are you looking at? Well, let's take a look 7 00:00:25,079 --> 00:00:27,680 Speaker 1: at Apple, Paul. I mean, we got some early news 8 00:00:27,760 --> 00:00:32,640 Speaker 1: before the open about a downgrade, but Apple shares ticker AAPL, 9 00:00:32,760 --> 00:00:35,559 Speaker 1: those are actually rebounding nicely now that the cash equity 10 00:00:35,680 --> 00:00:38,479 Speaker 1: is open, and those shares up just two tens of 11 00:00:38,520 --> 00:00:41,040 Speaker 1: one percent at the women. So yes, earlier we did 12 00:00:41,080 --> 00:00:44,680 Speaker 1: get a Jeffrey downgrade. They downgraded a firm to underperform 13 00:00:44,840 --> 00:00:49,600 Speaker 1: from hold, and that is one of the few sell 14 00:00:49,640 --> 00:00:52,960 Speaker 1: equivalent ratings on the Bloomberg system. Fewer than seven percent 15 00:00:53,000 --> 00:00:55,680 Speaker 1: of analysts have that sort of rating. So this is 16 00:00:55,720 --> 00:00:59,279 Speaker 1: an outlier for sure. But the analysts are saying that 17 00:00:59,320 --> 00:01:04,720 Speaker 1: their currentvaluation prices for Apple reflects a quote overly bullish 18 00:01:04,760 --> 00:01:08,520 Speaker 1: iPhone outlook. But then Bloomberg Intelligence saying that the seven 19 00:01:08,600 --> 00:01:12,320 Speaker 1: day average for iPhone seventeen delivery times was eighteen point 20 00:01:12,400 --> 00:01:15,720 Speaker 1: nine days versus thirteen point six days last year, so 21 00:01:15,760 --> 00:01:18,760 Speaker 1: that actually means longer rating times, stronger demand, and they're 22 00:01:18,800 --> 00:01:22,080 Speaker 1: saying that means that that puts it on track in 23 00:01:22,120 --> 00:01:24,160 Speaker 1: terms of sales for an eight to nine percent game, 24 00:01:24,160 --> 00:01:26,200 Speaker 1: which is double the consensus of four percent. So looking 25 00:01:26,240 --> 00:01:29,320 Speaker 1: optimistic probably what's being reflected in the share price today. 26 00:01:29,760 --> 00:01:31,560 Speaker 2: Let's also talk about Applied Materials. 27 00:01:31,640 --> 00:01:34,360 Speaker 1: It didn't report earnings, but I guess it gave the 28 00:01:34,400 --> 00:01:37,920 Speaker 1: equivalent of a profit warning. Yeah, absolutely, Scarla, and the 29 00:01:37,959 --> 00:01:41,360 Speaker 1: shares are paying for it or Applied Materials to create AMAT. 30 00:01:41,480 --> 00:01:43,399 Speaker 1: Those shares are down more than three percent now, so 31 00:01:43,440 --> 00:01:47,680 Speaker 1: extending losses as the session continues. And that's exactly it. 32 00:01:47,760 --> 00:01:50,880 Speaker 1: So we got Applied material saying that their net revenue 33 00:01:50,920 --> 00:01:54,080 Speaker 1: for fiscal twenty twenty six set to decrease by six 34 00:01:54,200 --> 00:01:58,200 Speaker 1: hundred million dollars because of the Trump administration's actions to 35 00:01:58,320 --> 00:02:03,240 Speaker 1: dramatically expand USA actions to capture subsidiaries of blacklisted companies. 36 00:02:03,280 --> 00:02:05,320 Speaker 1: What ultimately that means is that they're just going to 37 00:02:05,360 --> 00:02:08,720 Speaker 1: have a harder time selling to companies in China, specifically 38 00:02:08,800 --> 00:02:12,359 Speaker 1: who don't have a license to go around these sanctions. 39 00:02:12,480 --> 00:02:15,760 Speaker 1: And City analy is saying that this is a big 40 00:02:15,840 --> 00:02:19,160 Speaker 1: hit to apply material specifically because they're assuming about a 41 00:02:19,240 --> 00:02:23,679 Speaker 1: thirty percent of total revenue being derived from China, so 42 00:02:24,000 --> 00:02:26,920 Speaker 1: that impact six hundred million dollars. That's going to be 43 00:02:26,960 --> 00:02:31,440 Speaker 1: around seven percent to china total revenue in fiscal twenty 44 00:02:31,480 --> 00:02:34,280 Speaker 1: twenty six, which is worse than some of its competitors 45 00:02:34,320 --> 00:02:39,799 Speaker 1: in the space. Boeingo, what's happening? They're not good things 46 00:02:39,880 --> 00:02:41,959 Speaker 1: Triple seven. I didn't know we had a problem with 47 00:02:42,040 --> 00:02:44,760 Speaker 1: Triple seven. I can't contract, I know, Well, apparently we do, 48 00:02:44,919 --> 00:02:50,040 Speaker 1: and we got this Bloomberg exclusive reported yesterday after closed. 49 00:02:50,080 --> 00:02:52,120 Speaker 1: So and that's taking a little bit of a hit 50 00:02:52,160 --> 00:02:54,239 Speaker 1: on the shares, not too much though, so ticker be 51 00:02:54,480 --> 00:02:57,160 Speaker 1: a shares down just two tenths of one percent. But 52 00:02:57,560 --> 00:03:00,639 Speaker 1: the news doesn't sound good. So they're Triple seven slated 53 00:03:00,639 --> 00:03:03,240 Speaker 1: to fly commercially for the first time in early twenty 54 00:03:03,320 --> 00:03:06,760 Speaker 1: twenty seven now instead of next year. So Lafonsa was 55 00:03:06,800 --> 00:03:09,280 Speaker 1: meant to be the launch customer for this aircraft and 56 00:03:09,280 --> 00:03:12,440 Speaker 1: they're already making plans for delays. Meanwhile, Emirates, which is 57 00:03:12,480 --> 00:03:15,440 Speaker 1: meant to be the biggest customer for the aircraft, are 58 00:03:15,480 --> 00:03:18,799 Speaker 1: also growing more cautious and they're looking at entry into service, 59 00:03:18,800 --> 00:03:22,040 Speaker 1: possibly not before twenty twenty seven. So the estimate from 60 00:03:22,120 --> 00:03:25,200 Speaker 1: analysts there in terms of non cash accounting charge that 61 00:03:25,240 --> 00:03:28,000 Speaker 1: could run from anywhere from two and a half billion 62 00:03:28,040 --> 00:03:30,800 Speaker 1: to as much as four billion dollars, So the press 63 00:03:30,880 --> 00:03:35,080 Speaker 1: is negative. Executives have held meetings with major investors and 64 00:03:35,200 --> 00:03:38,320 Speaker 1: are now working on damage control messaging. 65 00:03:39,320 --> 00:03:43,320 Speaker 2: The stock mover's report from Bloomberg Radio. Check back with 66 00:03:43,400 --> 00:03:46,000 Speaker 2: us throughout the day for the latest roundup of companies 67 00:03:46,080 --> 00:03:49,160 Speaker 2: making news on Wall Street and for the latest market 68 00:03:49,200 --> 00:03:53,680 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 69 00:03:53,760 --> 00:03:57,240 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 70 00:03:57,320 --> 00:03:58,800 Speaker 2: the Bloomberg Business app.