WEBVTT - Nokia Falls, Heineken Gains, Signify Plunges 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>Let's take a look at some of the stocks on

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<v Speaker 2>the move today here in Europe. On Caroline Hipcot with

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<v Speaker 2>Stephen Carroll in Brussels, were joined by Bloomberg's reported to

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<v Speaker 2>you out a bio to talk through the markets. So

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<v Speaker 2>the AI narrative volatility really thracking stocks pretty hard today.

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<v Speaker 3>Yeah, it's been a difficult day for the AI trade

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<v Speaker 3>and for tech stalks more broadly. We seem to really

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<v Speaker 3>be seeing this optimism that's gathered over the data center

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<v Speaker 3>build out over the last few months pulling back. We're

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<v Speaker 3>seeing a retreat from the COSB as well as NASDAQ

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<v Speaker 3>one hundred futures of costs by also over nine percent

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<v Speaker 3>and triggered circuit breakers. So we're seeing chip makers like

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<v Speaker 3>st Micro taking a hit. Specifically that's down as much

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<v Speaker 3>as son and a half percent. Also, the likes of

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<v Speaker 3>Nokia companies that saw this year on expectations of rising

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<v Speaker 3>adoption of AI, that's also dropping, but it does follow

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<v Speaker 3>the previous sessions sell off in US tech heavyweights, as

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<v Speaker 3>there have been doubts emerging over whether these hyperscalers such

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<v Speaker 3>as Alphabet can actually justify their massive AI spending. So

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<v Speaker 3>we're seeing doubts and volatility in the sector today and

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<v Speaker 3>that is having an effect on some stocks in Europe,

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<v Speaker 3>specifically st Micro losing out this morning.

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<v Speaker 1>Okay, so that's on the tech story. Let's turn to Heinekennects.

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<v Speaker 1>Their shows are up over two percent.

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<v Speaker 3>What's driving that? Well, yeah, the opposite for heinechins today

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<v Speaker 3>shares gaining it this morning. It's after actually an announcement

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<v Speaker 3>from the company that they're going to have a new CEO.

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<v Speaker 3>So they've nominated Raphael Oliviera as their next CEO for

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<v Speaker 3>a period of four years, so he'll step down as

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<v Speaker 3>a CEO of the coffee and tea company JdE pets

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<v Speaker 3>to take this role. It should be on October the first,

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<v Speaker 3>but there will be an extraordinary general meeting to set

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<v Speaker 3>out this vote and really ratify that appointment in August.

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<v Speaker 3>But Anlysta liking this move so far. Jeffries has said

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<v Speaker 3>that this appointment removes overhang around management uncertainty and it

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<v Speaker 3>should drive stronger execution and performance culture. But there are

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<v Speaker 3>this a little bit more tempered like KBC. They're saying

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<v Speaker 3>that Heineken's investment case is less appealing after the past

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<v Speaker 3>few years, but they are seeing the company's self help

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<v Speaker 3>initiatives potentially supporting organic earnings growth. So it seems to

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<v Speaker 3>be a positive verdict for the new CEO so far,

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<v Speaker 3>but of course investors will still be looking to see

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<v Speaker 3>if he actually does deliver those results.

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<v Speaker 2>Okay, in terms of signify what's been happening with us

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<v Speaker 2>or something significant.

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<v Speaker 3>Well, we're seeing a bit drop this morning. Caroline's plunged

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<v Speaker 3>as much as eighteen percent. That's actually the most on record,

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<v Speaker 3>and it's after they've announced some new medium term targets

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<v Speaker 3>and an updated dividend policy. And now analysts don't like that.

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<v Speaker 3>They're saying it's a big surprise and that it would

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<v Speaker 3>mean big cuts to share holder pays. So, for example,

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<v Speaker 3>JP Morgan, they've called out the capital allocation as a surprise,

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<v Speaker 3>saying that the company is now targeting a payout ratio

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<v Speaker 3>of forty to fifty percent of underlying net income, and

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<v Speaker 3>by their own back of the envelope calculations, this would

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<v Speaker 3>been a roughly forty five percent cut to consensus dividend

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<v Speaker 3>per share expectations, and it will reduce the dividend yield

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<v Speaker 3>to about four percent of some big changes. Bloomberg Intelligence

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<v Speaker 3>as well, saying based on a company compiled consensus estimates

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<v Speaker 3>for earnings per share, this new strategy suggests a dividend

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<v Speaker 3>payment of about sixty six million euros versus roughly three

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<v Speaker 3>hundred and fifty seven million euros that will be spent

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<v Speaker 3>on dividends that was spent on dividends and buybacks last year.

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<v Speaker 3>So a big change there. Market's not liking the surprise

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<v Speaker 3>so far, so the biggest plunge on record for Signify.

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<v Speaker 1>This morning the Stock Movers Report from Bloomberg Radio. Check

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