WEBVTT - SAP Plunges, Rio Tinto Rises, Ocado 

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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 look at some of the stocks on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hepki with Lizzie Burton,

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<v Speaker 3>and we're joined by Bluebergs Breaking news editor Louise Moon.

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<v Speaker 3>Good morning. It's been a very dramatic start to the

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<v Speaker 3>day for SAP after their results. How did the most

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<v Speaker 3>valuable software company in Europe get to this point quite

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<v Speaker 3>a serious decline in their share price?

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<v Speaker 1>Indeed, yeah, absolutely plunging in Frankfurt today, falling the most

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<v Speaker 1>in over five years. That's after their fourth quarter results

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<v Speaker 1>and essentially the results of spot concern over how much

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<v Speaker 1>AI is going to disrupt the industry, disrupt the software industry. So,

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<v Speaker 1>SAP's cloud backlog, which essentially reflects the sales over the

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<v Speaker 1>next twelve months that will be booked, grew by sixteen percent.

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<v Speaker 1>Now that's a level that their CEO has previously said

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<v Speaker 1>would be a disappointing level. They had been aiming for

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<v Speaker 1>twenty six percent growth. So just in terms of the

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<v Speaker 1>wilder context, So since for the past few years, since

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<v Speaker 1>about twenty twenty, they've been moving to offer software subscriptions

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<v Speaker 1>in the cloud. That's been very welcomed by investors. Their

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<v Speaker 1>share prices has kind of propelled rallied on that. Now

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<v Speaker 1>there are concerns over how much AI is going to

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<v Speaker 1>impact that industry and disrupt it, and we're seeing that

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<v Speaker 1>in those results today. So as I say, shares really

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<v Speaker 1>plunging in Frankfurt on the back of that. On the contrary, though,

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<v Speaker 1>Minus hitting an all time high, think talk us.

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<v Speaker 3>Through the commodity related against Louise.

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<v Speaker 1>Indeed, Yeah, so European mining shares best performers on the

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<v Speaker 1>stock six hundred today, That is after copper posted their

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<v Speaker 1>biggest one day gain in years, hitting record, So it's

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<v Speaker 1>above fourteen thousand dollars a ton. It's all of this

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<v Speaker 1>kind of metals mania that's going on. A wave in

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<v Speaker 1>particular today, a wave of what's thought to be speculative

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<v Speaker 1>trading in in China surging, resulting in that surgeon copper

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<v Speaker 1>that happened essentially at a time of day when Chinese

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<v Speaker 1>traders would dominate those flows, and they're piling into metals

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<v Speaker 1>across the board. Copper as I say, being one of them,

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<v Speaker 1>and they're piling into this kind of a wave of

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<v Speaker 1>momentum around metals, so propelling European mining shares. So if

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<v Speaker 1>you look at the thirty hundred gainers, for example, the

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<v Speaker 1>majority of them are mining companies. You've got riotinto Glencore,

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<v Speaker 1>Anglo American, Antofagasta, all of them posting strong gains and

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<v Speaker 1>really leading the index both in the UK and across Europe.

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<v Speaker 3>Okay, so that's for miners, but Acados shares not delivering

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<v Speaker 3>this morning. What's behind their slide home? No?

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<v Speaker 1>I mean the latest setback for Acado is so their

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<v Speaker 1>Canadian partner, which is their second largest partner, has decided

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<v Speaker 1>to close one of its automated houses. So that's in Calgary.

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<v Speaker 1>They are going to keep two other ones. They're keeping

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<v Speaker 1>one in Toronto and they're keeping one in Montreal, and

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<v Speaker 1>then another one planned for Vancouver is on pause. This

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<v Speaker 1>is due they say, to slower than expected growth in

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<v Speaker 1>for that one in Calgary. They'd entered an agreement with

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<v Speaker 1>a Cardo last year, sorry, in twenty twenty four. And

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<v Speaker 1>as I say, they're they're the second biggest partner. It

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<v Speaker 1>comes after their biggest partner in the US closed three

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<v Speaker 1>warehouses late last year, and it's just being seen as

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<v Speaker 1>the latest setback. It's raising questions about a Cardo's prospect. Obviously,

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<v Speaker 1>in the UK, Acado is mostly known for their delivery services,

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<v Speaker 1>but they've kind of pitched themselves as being the tesla

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<v Speaker 1>of groceries, so that and this is their very kind

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<v Speaker 1>of expensive robot technology and these automated warehouses, and that's

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<v Speaker 1>what they've pitched their future as being. But there's kind

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<v Speaker 1>of increasing skepticism around this as these customers pull back

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<v Speaker 1>and either pause or close or slow down in terms

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<v Speaker 1>of these automated warehouses. So it's looking increasingly challenging and

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<v Speaker 1>shares are down on the back of this today, down

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<v Speaker 1>down today, But then if you look further back, they're

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<v Speaker 1>still their way. They had. They hit quite a quite

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<v Speaker 1>a peak in twentye twenty one and still very much off.

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<v Speaker 2>The The Stock Movers Report from Bloomberg Radio. Check back

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