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 take a look now at some stocks on the
Speaker 3: move today in Europe. I'm Rich Levens with Stephen Carroll,
Speaker 3: and we're joined by Bloomberg's Breaking news editor Luise Moon. Luis,
Speaker 3: thanks for joining us. SAP had some pretty good earnings overnight.
Speaker 3: Tell us a bit more about what investors are reacting
Speaker 3: to today.
Speaker 1: Indeed, this is their second quarter earnings and positive reactions
Speaker 1: to this, so the focus being on their better than
Speaker 1: expected sales for their cloud products. So SAP has been
Speaker 1: pushing customers essentially to upgrade systems at a faster pace,
Speaker 1: adopt their AI products, and this seems to be paying off.
Speaker 1: So shares roads today about six percent roughly in Frankfurt,
Speaker 1: which is a good boost given that so far they
Speaker 1: see if they've fallen about thirty five percent, that was
Speaker 1: all on those concerns over AI, so that their advances
Speaker 1: and AI wouldn't being picked up fast enough and they
Speaker 1: would fall behind. So those better cloud sales seem like
Speaker 1: they're easing investor concern, so analysts are saying they do
Speaker 1: still have some catching up to do against competitors to
Speaker 1: make their AI story a bit more compelling.
Speaker 3: But this strong growth in cloud products.
Speaker 1: Is a good sign, so boosting shares in trading in
Speaker 1: Germany this morning.
Speaker 3: Okay, so that's an sap. Let's go to Santa Finex
Speaker 3: acting the development of a new exema drug.
Speaker 1: Indeed, yeah, so they're ending the clinical development. This is
Speaker 1: for a type of dermatitis, essentially saying that the eficacy
Speaker 1: and the safety evidence in what was a late stage
Speaker 1: trial doesn't support further developments. They're not going to submit
Speaker 1: it for regulatory review. And this is a relatively big deal.
Speaker 1: Bloomberg Intelligence had estimated that the sales potential of this
Speaker 1: drug could be up to about five billion US dollars,
Speaker 1: so shares falling on the back of that for about
Speaker 1: one point two percent this year, and then in the
Speaker 1: wider context of the whole company, it's quite a blow
Speaker 1: to the relatively new CEO. So she's been trying to
Speaker 1: essentially get new drivers of revenue like this drug before
Speaker 1: their top selling drug patent expires, which is in twenty
Speaker 1: thirty one. So she's been trying to kind of beef
Speaker 1: up their pipeline in expectation of that happening. So this
Speaker 1: is putting more or puts more pressure on her unless
Speaker 1: is saying, you know, it leaves the company without many
Speaker 1: late stage assets, intensified that need for that pipeline to
Speaker 1: be built out more and also therefore potentially raises the
Speaker 1: pressure on her to pursue a more of an M
Speaker 1: and a approach, so more deals. So what we can
Speaker 1: be an id to see if that happens. But yeah,
Speaker 1: shares down on that news this morning, and.
Speaker 3: They're also seeing Gainesparcadis what's been going on there.
Speaker 1: So they've been approached for a second time to be bought.
Speaker 1: Circadis is a consulting and engineering firm based in Amsterdam.
Speaker 1: They've got a second unsisted bid from a Canadian pier
Speaker 1: so they're called WSP Global. That would value Ourcadis at
Speaker 1: four point seven billion euros. So it's a big potential
Speaker 1: amine deal if that weren't happen. They've previously rejected a
Speaker 1: lower offer. They said that it doesn't reflect the value
Speaker 1: their strategy, their vision for the future. So shares rising
Speaker 1: this morning twelve percent, so that's the most since late
Speaker 1: April for Arcadis. They're saying that they're still highly confident
Speaker 1: in their strategy, their outlook, So we'll have to see
Speaker 1: if and when this potentially comes through, if there's higher bids,
Speaker 1: changes of bids or yeah, or the keep and eye
Speaker 1: see if there's any emine action with that.
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