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 have a look at some of the stocks on
Speaker 3: the move today here in Europe. I'm Caroline Hepkar with
Speaker 3: Tom mackenzie and we're joined by our reporter Clomer Lake.
Speaker 3: Good morning. The Dutch insurer Egon confirming that it's moving
Speaker 3: its headquarters to the US. Has this made a big
Speaker 3: ripple in markets?
Speaker 4: Yeah, well it has sent the shears down quite a
Speaker 4: bit this morning. There's actually a lot happening for Eggon
Speaker 4: that announced this morning. So as you mentioned, moving the
Speaker 4: headquarters and also the legal domicile over to the US
Speaker 4: and also rebranding as trans America. It's also unveiled new
Speaker 4: midterm targets, a new buybeck of four hundred million euros
Speaker 4: and also a strategic review of the UK unit which
Speaker 4: could potentially result in a divestment.
Speaker 1: So this move is not really coming out of the blue,
Speaker 1: you know.
Speaker 4: This is something that has been on the table for
Speaker 4: quite some time, and it had announced a review this
Speaker 4: summer of its listing and potentially moving its headquarters, and
Speaker 4: it does generate a majority of its profit from the US,
Speaker 4: so it does make sense. But then we did have
Speaker 4: a big share price drop this morning, so that would
Speaker 4: indicate that investors are not super super keen on those
Speaker 4: massive changes. Perhaps that's because of how much that will cost.
Speaker 4: So the company expects to incur about three hundred and
Speaker 4: fifty million euros in costs to twenty twenty eight. And
Speaker 4: then some analysts have also reflected that maybe the announcement
Speaker 4: on payout, so that four hundred million euro buyback is
Speaker 4: also a little disappointing. So there's a lot to digest
Speaker 4: and maybe some of that share price movement will will
Speaker 4: stabilize over the next cooming days as this is a
Speaker 4: little bit more digested by investors and analysts.
Speaker 3: Okay, So from Aigon and the insurance space to Semen's Energy,
Speaker 3: what's the story of Semen's Energy.
Speaker 1: A couple of things happening for Semens Energy as well today.
Speaker 4: So we had an activist investor pushing for a review
Speaker 4: and the potential spin off of the wind operations, which
Speaker 4: has been a part of Semens Energy that has been
Speaker 4: under a little bit more pressure recently. So the activist
Speaker 4: investor said that the unit was a little bit more volatile,
Speaker 4: also a lower margin than some of the other businesses
Speaker 4: within Semens Energy, and that a spinoff would really help
Speaker 4: that company refocus on gas power and grid power as well.
Speaker 4: And then in addition to that, we also had a
Speaker 4: positive read across from Jivanova over in the US, which
Speaker 4: doubled its dividend and also boosted its forecast.
Speaker 1: So that spells quite good news for.
Speaker 4: The electrification sector, which of course has been benefiting from
Speaker 4: the energy demand from AI and also kind of grid
Speaker 4: expansion across the world. So both of those things, the
Speaker 4: activist investor and that positive read across have really lifted
Speaker 4: those shares for Semens Energy today. And by the way,
Speaker 4: it has been having a really good year. We're up
Speaker 4: one hundred and forty percent a year to date, and
Speaker 4: so we it's definitely a continuation of what's already been
Speaker 4: a very positive trajectory.
Speaker 3: Hmm. Okay, so that's interesting now Ferrari, not the f one,
Speaker 3: not Lewis Hamilton's first season with them, But let's think
Speaker 3: about the Alyss view of the company.
Speaker 4: Yeah, maybe a little bit less interesting, bit more dry,
Speaker 4: but it is down this morning after being downgraded by ODO,
Speaker 4: and that is just a couple of days after being
Speaker 4: downgraded by Morgan Stanley. So the problem that analysts have
Speaker 4: with Ferrari is that the company is voluntarily reducing volumes
Speaker 4: to kind of boost desirability for its models. So of
Speaker 4: course that ensures that Ferrari retains that exclusivity that it's
Speaker 4: known for, but it also means quite limited growth in
Speaker 4: the short and medium term. And there's also a lot
Speaker 4: of investor concern around the launch of the company's first
Speaker 4: electric vehicle.
Speaker 1: Which is coming next year.
Speaker 4: So we still have a large majority of by ratings
Speaker 4: on Ferrari, but those couple of downgrades are really weighing
Speaker 4: on that stock, and that's really raising questions about the
Speaker 4: catalysts moving forward.
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