WEBVTT - WPP Gains, Saab Up, SUSS MicroTec Rises

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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 socks on the move

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<v Speaker 3>today in Europe. I'm Caroline Hepga with Bloomberg reported claimber Lay,

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<v Speaker 3>Good morning, Chovey. So over the weekend, it looks like

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<v Speaker 3>some m and A interest being.

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<v Speaker 1>Shown in WPP. Yeah, some m and A rumors for WPP.

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<v Speaker 4>So it's reportedly drawing interest from Havass, which is a

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<v Speaker 4>rival advertising agency and also potentially a private equity firm

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<v Speaker 4>KKR as well. So this comes after really a series

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<v Speaker 4>of struggles for the company cut its guidance just a

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<v Speaker 4>few weeks ago. The share price has been on a

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<v Speaker 4>big down spiral for a while, and it also lost

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<v Speaker 4>quite big accounts over the.

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<v Speaker 1>Last few years.

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<v Speaker 4>So it was once the world's largest ad agency globally,

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<v Speaker 4>but it has been a struggling quite a lot. Has

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<v Speaker 4>been underperforming the closest rival Publicist by a wider and

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<v Speaker 4>wider margin over the last two or three years. So

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<v Speaker 4>it's been working on ways to kind of reignite that

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<v Speaker 4>growth and streamline the business, cutting costs across the operations.

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<v Speaker 4>But it seems that, you know, based on the share

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<v Speaker 4>price reaction this morning, that investors might be thinking that

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<v Speaker 4>a deal is actually a better option than that that

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<v Speaker 4>could be actually the right way forward for WPP, given

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<v Speaker 4>all of it's at troubles recently.

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<v Speaker 3>Yeah. Indeed, so that in the advertising world, where you know,

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<v Speaker 3>AI seems to be revolutionizing the way that advertising is

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<v Speaker 3>delivered and made. Also, right, let's think about the defense

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<v Speaker 3>company saab which has seen some recent success.

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<v Speaker 4>Why, Yeah, it's been a really good week for saav actually,

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<v Speaker 4>so it had one a few new contracts recently which

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<v Speaker 4>have been really positive. So the latest is a deals

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<v Speaker 4>to supply Columbia with new fighter jets and that's a

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<v Speaker 4>contra that is worth.

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<v Speaker 1>Three point one billion euros.

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<v Speaker 4>The other major orders that it saw in the last

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<v Speaker 4>week is also an order for rifles from Denmark and

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<v Speaker 4>then an order for electronic sensors from Airbus.

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<v Speaker 1>So this is very encouraging for the company.

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<v Speaker 4>Anisas said that this could make Salabas's strongest strongest quarter

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<v Speaker 4>ever for order intake on the back of those recent contracts,

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<v Speaker 4>and that's kind of all really accelerated recently for SABA,

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<v Speaker 4>with Sweden joining NATO back in March twenty twenty four,

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<v Speaker 4>and then also obviously the broader surgeon military spending and

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<v Speaker 4>in military investments that we've seen across Europe and across

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<v Speaker 4>the world world more generally recently, and obviously SAAB is

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<v Speaker 4>a big beneficiary of that. Last month they had raised

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<v Speaker 4>sales guidance for this year as well, so it seemed

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<v Speaker 4>that it is on a really good and clear trajectory

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<v Speaker 4>and it's that we've seen that reflected in the shares

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<v Speaker 4>this morning.

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<v Speaker 1>They were by quite a.

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<v Speaker 3>Lot, okay, Sweden's SAAB well, from the defense sector to semiconductors,

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<v Speaker 3>some big targets for SUS Microtech, which is involved in

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<v Speaker 3>the semis space.

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<v Speaker 1>Yeah.

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<v Speaker 4>Yeah, it makes a lot of different equipment for the

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<v Speaker 4>semiconductor industry. So in a capital markets day, it unveiled

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<v Speaker 4>in new long term targets for sales and margin and

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<v Speaker 4>profit that investors seem to be quite happy about. So

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<v Speaker 4>that it comes just a couple of weeks after a

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<v Speaker 4>third quarter results for that company that showed really strong

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<v Speaker 4>order momentum. So the outlook looks very very bright. Some

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<v Speaker 4>of the clients include Micron, TSMC, Samsung, so all of

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<v Speaker 4>those companies that are really exposed to the artificial intelligence boom,

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<v Speaker 4>and so that makes Seals micro take very well.

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<v Speaker 1>Position going forward.

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<v Speaker 4>We have seen quite a big gap in that chip

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<v Speaker 4>making sector between those companies that are more exposed to

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<v Speaker 4>this AI infrastructure and those that have been a little

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<v Speaker 4>bit more exposed to the automotive and industrial and markets

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<v Speaker 4>which have obviously been struggling a little bit more. But

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<v Speaker 4>it seems that Sosmicrotic is on the right side of

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<v Speaker 4>this divide, really exposed to this air infrastructure boom, and

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<v Speaker 4>that is being seen in those very positive long term

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<v Speaker 4>targets and in the shap price.

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<v Speaker 1>This morning.

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