1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,440 --> 00:00:17,959 Speaker 3: Now, let's take a look at some of the stocks 5 00:00:18,000 --> 00:00:20,200 Speaker 3: on the move today here in Europe. I'm Caroline Hepkat 6 00:00:20,200 --> 00:00:23,360 Speaker 3: and I'm joined by Bloomberg Report of Chloe Melay. Good morning. 7 00:00:23,680 --> 00:00:28,040 Speaker 3: I want to talk about Dasso Systems, Chloe JP Morgan 8 00:00:28,080 --> 00:00:32,360 Speaker 3: analyst saying it's worse than even the most negative investors 9 00:00:32,400 --> 00:00:36,199 Speaker 3: we've spoken to out Why do they say that. 10 00:00:36,600 --> 00:00:38,600 Speaker 1: Yeah, it's been really a massive drop in the sheds 11 00:00:38,640 --> 00:00:40,760 Speaker 1: for the company this morning, and that is because the 12 00:00:40,920 --> 00:00:45,360 Speaker 1: fourth quarter results really disappointed investors. They were the low 13 00:00:45,520 --> 00:00:47,760 Speaker 1: end of guidance, and then also the growth guidance for 14 00:00:47,800 --> 00:00:50,520 Speaker 1: this year for twenty twenty six was also way below 15 00:00:50,560 --> 00:00:54,000 Speaker 1: analyst expectations. And as you mentioned, JP Morgan analysts have 16 00:00:54,040 --> 00:00:56,440 Speaker 1: said that this was even worse than what the most 17 00:00:56,440 --> 00:00:59,480 Speaker 1: negative investors had had thought about. So this is of 18 00:00:59,480 --> 00:01:03,280 Speaker 1: course intra because this is happening at a time when 19 00:01:03,440 --> 00:01:05,759 Speaker 1: you know, within the last week we've got we've had 20 00:01:05,760 --> 00:01:08,480 Speaker 1: this big sell off in software firms, which that has 21 00:01:08,560 --> 00:01:12,199 Speaker 1: really dominated the new cycle, and I've seen investors trying 22 00:01:12,240 --> 00:01:14,960 Speaker 1: to limit their exposure to all of those stocks, all 23 00:01:15,000 --> 00:01:18,039 Speaker 1: of those companies that could potentially be disrupted by new 24 00:01:18,080 --> 00:01:21,000 Speaker 1: AI tools and software. Firms like Deso system that have 25 00:01:21,160 --> 00:01:24,920 Speaker 1: really been seen as the kind of clearest potential AI losers, 26 00:01:24,959 --> 00:01:27,080 Speaker 1: and you know, those companies do tend to say that 27 00:01:27,160 --> 00:01:29,840 Speaker 1: AI is an opportunity rather than a threat. That they're 28 00:01:29,880 --> 00:01:33,160 Speaker 1: developed developing their own tools, and that still made reference 29 00:01:33,160 --> 00:01:35,640 Speaker 1: to that in their statement as well. But the market 30 00:01:35,720 --> 00:01:38,280 Speaker 1: narrative at the moment is that the risks actually far 31 00:01:38,440 --> 00:01:41,679 Speaker 1: outweigh the opportunities there and this weak guidance that we've 32 00:01:41,760 --> 00:01:45,160 Speaker 1: seen from Desso isn't really helping to reassure anyone in 33 00:01:45,200 --> 00:01:48,000 Speaker 1: the market. And that really explains this huge job in 34 00:01:48,040 --> 00:01:49,240 Speaker 1: the shows that we've seen today. 35 00:01:49,400 --> 00:01:53,880 Speaker 3: Yeah, really unforgiving, isn't it the response in terms of 36 00:01:53,960 --> 00:02:00,240 Speaker 3: investors being critical. Paul Singers, Elliott Investment Management continuing it's 37 00:02:00,520 --> 00:02:03,240 Speaker 3: LSE campaign today we've got more information. 38 00:02:03,560 --> 00:02:06,240 Speaker 1: Yeah, absolutely, And so AI disruption fear has actually also 39 00:02:06,240 --> 00:02:09,639 Speaker 1: come into this. So Elliott Investment Management, the activist Investors 40 00:02:09,639 --> 00:02:12,520 Speaker 1: that was also in the news last year for pressuring 41 00:02:12,600 --> 00:02:14,880 Speaker 1: VP to return to oil and gas. It's said to 42 00:02:14,880 --> 00:02:17,880 Speaker 1: be taking a significant steak in the London Stock Exchange 43 00:02:17,880 --> 00:02:20,519 Speaker 1: Group and this comes at a time when ELSEG is 44 00:02:20,560 --> 00:02:23,720 Speaker 1: facing a lot of challenges, one of them including that 45 00:02:23,760 --> 00:02:26,760 Speaker 1: potential disruption from AI that I've been talking about, you know, 46 00:02:26,800 --> 00:02:29,640 Speaker 1: with areas like analytics and data for example. That's a 47 00:02:29,720 --> 00:02:32,400 Speaker 1: really big part of the business model for LSEG, and 48 00:02:32,440 --> 00:02:34,360 Speaker 1: that is one of the things that could where you 49 00:02:34,400 --> 00:02:36,480 Speaker 1: could see really a lot of AI tools coming through. 50 00:02:37,080 --> 00:02:39,400 Speaker 1: And then also another challenge for el SEG has been 51 00:02:39,440 --> 00:02:41,760 Speaker 1: the IPO market. Of course in London, it's not in 52 00:02:41,800 --> 00:02:44,639 Speaker 1: the most fantastic shape. There has been some progress, but 53 00:02:44,760 --> 00:02:47,959 Speaker 1: no one would say there's necessarily a surge in listings 54 00:02:48,000 --> 00:02:50,360 Speaker 1: at the moment, and that is a big problem for 55 00:02:50,520 --> 00:02:53,359 Speaker 1: LSEG to contend with. It's not really clear how big 56 00:02:53,520 --> 00:02:56,680 Speaker 1: the steak is and exactly what changes Elliott is pushing for, 57 00:02:56,880 --> 00:03:00,160 Speaker 1: but the Ft reported that it wouldn't be pushing for 58 00:03:00,160 --> 00:03:02,440 Speaker 1: a sale or a spin off of the stock exchange 59 00:03:02,480 --> 00:03:05,440 Speaker 1: business in particular, but kind of just a general improvement 60 00:03:05,520 --> 00:03:08,040 Speaker 1: in performance. So we'll be watching out for that. But 61 00:03:08,160 --> 00:03:10,680 Speaker 1: in the meantime, the shares are up quite strongly this morning. 62 00:03:10,880 --> 00:03:15,240 Speaker 3: Yeah, what I noticed in terms of businesses in London 63 00:03:15,280 --> 00:03:19,120 Speaker 3: a lot of moving to aim the alternative listing venue 64 00:03:19,560 --> 00:03:24,440 Speaker 3: and just one caveat Bloomberg LP, the parent of Blueberg News, 65 00:03:24,440 --> 00:03:29,680 Speaker 3: competes with LSEG in providing financial data, so that little 66 00:03:29,680 --> 00:03:34,600 Speaker 3: addition there to that conversation. Elsewhere, Heineken came out with results. 67 00:03:34,720 --> 00:03:38,720 Speaker 3: They have a well, a pint size problem or is 68 00:03:38,720 --> 00:03:39,480 Speaker 3: it larger than that. 69 00:03:40,440 --> 00:03:43,080 Speaker 1: Well, they announced that it would make as many as 70 00:03:43,080 --> 00:03:45,880 Speaker 1: many as six thousand jobs to try and mitigate the 71 00:03:45,960 --> 00:03:49,520 Speaker 1: impact of weak alcohol demands. So that's about seven percent 72 00:03:49,600 --> 00:03:52,640 Speaker 1: of staff worldwide, and that really underscores how much ourcore 73 00:03:52,640 --> 00:03:55,960 Speaker 1: companies are struggling because of prices rising and then also 74 00:03:56,000 --> 00:03:59,400 Speaker 1: consumers in loads of different markets moderating cutting back that 75 00:03:59,520 --> 00:04:01,920 Speaker 1: are cool consumption. So that's going to be a big 76 00:04:01,960 --> 00:04:04,800 Speaker 1: problem for Heineken. The chez did rise this morning, so 77 00:04:04,880 --> 00:04:08,800 Speaker 1: Alena organization maybe was taken quite well by investors. But 78 00:04:08,840 --> 00:04:11,560 Speaker 1: then also the results by themselves this morning were not 79 00:04:11,760 --> 00:04:14,720 Speaker 1: that bad. So beer volumes did fall in twenty twenty 80 00:04:15,040 --> 00:04:17,120 Speaker 1: or five, but it wasn't as steep of a drop 81 00:04:17,360 --> 00:04:19,760 Speaker 1: as analysts had expected. And you know, we do have 82 00:04:19,760 --> 00:04:21,800 Speaker 1: the football World Cup this year, that's going to be 83 00:04:22,440 --> 00:04:24,679 Speaker 1: a big boost. So that's going to brighten the outlook 84 00:04:24,720 --> 00:04:27,360 Speaker 1: a little bit, but overall, the fundamentals of the bear 85 00:04:27,440 --> 00:04:30,760 Speaker 1: sector look quite weak, will look quite tough. Carlsberg just 86 00:04:30,839 --> 00:04:34,719 Speaker 1: last week also widened its outlook because of that muted demand, 87 00:04:34,800 --> 00:04:37,719 Speaker 1: especially in Western market. So it seems that there was 88 00:04:37,720 --> 00:04:40,479 Speaker 1: a prolonged slump there and there's you know, maybe a 89 00:04:40,480 --> 00:04:42,880 Speaker 1: few rock cuppigns that might not be enough to actually 90 00:04:42,960 --> 00:04:43,400 Speaker 1: upset that. 91 00:04:44,200 --> 00:04:48,240 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 92 00:04:48,320 --> 00:04:50,880 Speaker 2: us throughout the day for the latest roundup of companies 93 00:04:50,960 --> 00:04:54,040 Speaker 2: making news on Wall Street and for the latest market 94 00:04:54,080 --> 00:04:58,520 Speaker 2: moving headlines. 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