Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,
Speaker 1: your roundup of companies making moves in the stock market
Speaker 1: harnessing the power of Bloomberg Data.
Speaker 2: Let's take a look at some of the stocks on
Speaker 2: the move today here in Europe. On Caroline Hipcot with
Speaker 2: Stephen Carroll in Brussels, were joined by Bloomberg's reported to
Speaker 2: you out a bio to talk through the markets. So
Speaker 2: the AI narrative volatility really thracking stocks pretty hard today.
Speaker 3: Yeah, it's been a difficult day for the AI trade
Speaker 3: and for tech stalks more broadly. We seem to really
Speaker 3: be seeing this optimism that's gathered over the data center
Speaker 3: build out over the last few months pulling back. We're
Speaker 3: seeing a retreat from the COSB as well as NASDAQ
Speaker 3: one hundred futures of costs by also over nine percent
Speaker 3: and triggered circuit breakers. So we're seeing chip makers like
Speaker 3: st Micro taking a hit. Specifically that's down as much
Speaker 3: as son and a half percent. Also, the likes of
Speaker 3: Nokia companies that saw this year on expectations of rising
Speaker 3: adoption of AI, that's also dropping, but it does follow
Speaker 3: the previous sessions sell off in US tech heavyweights, as
Speaker 3: there have been doubts emerging over whether these hyperscalers such
Speaker 3: as Alphabet can actually justify their massive AI spending. So
Speaker 3: we're seeing doubts and volatility in the sector today and
Speaker 3: that is having an effect on some stocks in Europe,
Speaker 3: specifically st Micro losing out this morning.
Speaker 1: Okay, so that's on the tech story. Let's turn to Heinekennects.
Speaker 1: Their shows are up over two percent.
Speaker 3: What's driving that? Well, yeah, the opposite for heinechins today
Speaker 3: shares gaining it this morning. It's after actually an announcement
Speaker 3: from the company that they're going to have a new CEO.
Speaker 3: So they've nominated Raphael Oliviera as their next CEO for
Speaker 3: a period of four years, so he'll step down as
Speaker 3: a CEO of the coffee and tea company JdE pets
Speaker 3: to take this role. It should be on October the first,
Speaker 3: but there will be an extraordinary general meeting to set
Speaker 3: out this vote and really ratify that appointment in August.
Speaker 3: But Anlysta liking this move so far. Jeffries has said
Speaker 3: that this appointment removes overhang around management uncertainty and it
Speaker 3: should drive stronger execution and performance culture. But there are
Speaker 3: this a little bit more tempered like KBC. They're saying
Speaker 3: that Heineken's investment case is less appealing after the past
Speaker 3: few years, but they are seeing the company's self help
Speaker 3: initiatives potentially supporting organic earnings growth. So it seems to
Speaker 3: be a positive verdict for the new CEO so far,
Speaker 3: but of course investors will still be looking to see
Speaker 3: if he actually does deliver those results.
Speaker 2: Okay, in terms of signify what's been happening with us
Speaker 2: or something significant.
Speaker 3: Well, we're seeing a bit drop this morning. Caroline's plunged
Speaker 3: as much as eighteen percent. That's actually the most on record,
Speaker 3: and it's after they've announced some new medium term targets
Speaker 3: and an updated dividend policy. And now analysts don't like that.
Speaker 3: They're saying it's a big surprise and that it would
Speaker 3: mean big cuts to share holder pays. So, for example,
Speaker 3: JP Morgan, they've called out the capital allocation as a surprise,
Speaker 3: saying that the company is now targeting a payout ratio
Speaker 3: of forty to fifty percent of underlying net income, and
Speaker 3: by their own back of the envelope calculations, this would
Speaker 3: been a roughly forty five percent cut to consensus dividend
Speaker 3: per share expectations, and it will reduce the dividend yield
Speaker 3: to about four percent of some big changes. Bloomberg Intelligence
Speaker 3: as well, saying based on a company compiled consensus estimates
Speaker 3: for earnings per share, this new strategy suggests a dividend
Speaker 3: payment of about sixty six million euros versus roughly three
Speaker 3: hundred and fifty seven million euros that will be spent
Speaker 3: on dividends that was spent on dividends and buybacks last year.
Speaker 3: So a big change there. Market's not liking the surprise
Speaker 3: so far, so the biggest plunge on record for Signify.
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