WEBVTT - SAP Beats, Sanofi Dips, Arcadis Gains

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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 take a look now at some stocks on the

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<v Speaker 3>move today in Europe. I'm Rich Levens with Stephen Carroll,

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<v Speaker 3>and we're joined by Bloomberg's Breaking news editor Luise Moon. Luis,

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<v Speaker 3>thanks for joining us. SAP had some pretty good earnings overnight.

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<v Speaker 3>Tell us a bit more about what investors are reacting

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<v Speaker 3>to today.

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<v Speaker 1>Indeed, this is their second quarter earnings and positive reactions

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<v Speaker 1>to this, so the focus being on their better than

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<v Speaker 1>expected sales for their cloud products. So SAP has been

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<v Speaker 1>pushing customers essentially to upgrade systems at a faster pace,

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<v Speaker 1>adopt their AI products, and this seems to be paying off.

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<v Speaker 1>So shares roads today about six percent roughly in Frankfurt,

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<v Speaker 1>which is a good boost given that so far they

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<v Speaker 1>see if they've fallen about thirty five percent, that was

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<v Speaker 1>all on those concerns over AI, so that their advances

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<v Speaker 1>and AI wouldn't being picked up fast enough and they

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<v Speaker 1>would fall behind. So those better cloud sales seem like

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<v Speaker 1>they're easing investor concern, so analysts are saying they do

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<v Speaker 1>still have some catching up to do against competitors to

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<v Speaker 1>make their AI story a bit more compelling.

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<v Speaker 3>But this strong growth in cloud products.

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<v Speaker 1>Is a good sign, so boosting shares in trading in

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<v Speaker 1>Germany this morning.

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<v Speaker 3>Okay, so that's an sap. Let's go to Santa Finex

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<v Speaker 3>acting the development of a new exema drug.

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<v Speaker 1>Indeed, yeah, so they're ending the clinical development. This is

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<v Speaker 1>for a type of dermatitis, essentially saying that the eficacy

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<v Speaker 1>and the safety evidence in what was a late stage

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<v Speaker 1>trial doesn't support further developments. They're not going to submit

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<v Speaker 1>it for regulatory review. And this is a relatively big deal.

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<v Speaker 1>Bloomberg Intelligence had estimated that the sales potential of this

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<v Speaker 1>drug could be up to about five billion US dollars,

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<v Speaker 1>so shares falling on the back of that for about

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<v Speaker 1>one point two percent this year, and then in the

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<v Speaker 1>wider context of the whole company, it's quite a blow

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<v Speaker 1>to the relatively new CEO. So she's been trying to

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<v Speaker 1>essentially get new drivers of revenue like this drug before

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<v Speaker 1>their top selling drug patent expires, which is in twenty

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<v Speaker 1>thirty one. So she's been trying to kind of beef

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<v Speaker 1>up their pipeline in expectation of that happening. So this

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<v Speaker 1>is putting more or puts more pressure on her unless

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<v Speaker 1>is saying, you know, it leaves the company without many

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<v Speaker 1>late stage assets, intensified that need for that pipeline to

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<v Speaker 1>be built out more and also therefore potentially raises the

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<v Speaker 1>pressure on her to pursue a more of an M

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<v Speaker 1>and a approach, so more deals. So what we can

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<v Speaker 1>be an id to see if that happens. But yeah,

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<v Speaker 1>shares down on that news this morning, and.

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<v Speaker 3>They're also seeing Gainesparcadis what's been going on there.

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<v Speaker 1>So they've been approached for a second time to be bought.

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<v Speaker 1>Circadis is a consulting and engineering firm based in Amsterdam.

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<v Speaker 1>They've got a second unsisted bid from a Canadian pier

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<v Speaker 1>so they're called WSP Global. That would value Ourcadis at

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<v Speaker 1>four point seven billion euros. So it's a big potential

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<v Speaker 1>amine deal if that weren't happen. They've previously rejected a

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<v Speaker 1>lower offer. They said that it doesn't reflect the value

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<v Speaker 1>their strategy, their vision for the future. So shares rising

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<v Speaker 1>this morning twelve percent, so that's the most since late

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<v Speaker 1>April for Arcadis. They're saying that they're still highly confident

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<v Speaker 1>in their strategy, their outlook, So we'll have to see

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<v Speaker 1>if and when this potentially comes through, if there's higher bids,

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<v Speaker 1>changes of bids or yeah, or the keep and eye

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<v Speaker 1>see if there's any emine action with that.

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