WEBVTT - Dassault Systemes Plunges, LSEG Activist, Heineken Cuts

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.440 --> 0:00:17.959
<v Speaker 3>Now, let's take a look at some of the stocks

0:00:18.000 --> 0:00:20.200
<v Speaker 3>on the move today here in Europe. I'm Caroline Hepkat

0:00:20.200 --> 0:00:23.360
<v Speaker 3>and I'm joined by Bloomberg Report of Chloe Melay. Good morning.

0:00:23.680 --> 0:00:28.040
<v Speaker 3>I want to talk about Dasso Systems, Chloe JP Morgan

0:00:28.080 --> 0:00:32.360
<v Speaker 3>analyst saying it's worse than even the most negative investors

0:00:32.400 --> 0:00:36.199
<v Speaker 3>we've spoken to out Why do they say that.

0:00:36.600 --> 0:00:38.600
<v Speaker 1>Yeah, it's been really a massive drop in the sheds

0:00:38.640 --> 0:00:40.760
<v Speaker 1>for the company this morning, and that is because the

0:00:40.920 --> 0:00:45.360
<v Speaker 1>fourth quarter results really disappointed investors. They were the low

0:00:45.520 --> 0:00:47.760
<v Speaker 1>end of guidance, and then also the growth guidance for

0:00:47.800 --> 0:00:50.520
<v Speaker 1>this year for twenty twenty six was also way below

0:00:50.560 --> 0:00:54.000
<v Speaker 1>analyst expectations. And as you mentioned, JP Morgan analysts have

0:00:54.040 --> 0:00:56.440
<v Speaker 1>said that this was even worse than what the most

0:00:56.440 --> 0:00:59.480
<v Speaker 1>negative investors had had thought about. So this is of

0:00:59.480 --> 0:01:03.280
<v Speaker 1>course intra because this is happening at a time when

0:01:03.440 --> 0:01:05.759
<v Speaker 1>you know, within the last week we've got we've had

0:01:05.760 --> 0:01:08.480
<v Speaker 1>this big sell off in software firms, which that has

0:01:08.560 --> 0:01:12.199
<v Speaker 1>really dominated the new cycle, and I've seen investors trying

0:01:12.240 --> 0:01:14.960
<v Speaker 1>to limit their exposure to all of those stocks, all

0:01:15.000 --> 0:01:18.039
<v Speaker 1>of those companies that could potentially be disrupted by new

0:01:18.080 --> 0:01:21.000
<v Speaker 1>AI tools and software. Firms like Deso system that have

0:01:21.160 --> 0:01:24.920
<v Speaker 1>really been seen as the kind of clearest potential AI losers,

0:01:24.959 --> 0:01:27.080
<v Speaker 1>and you know, those companies do tend to say that

0:01:27.160 --> 0:01:29.840
<v Speaker 1>AI is an opportunity rather than a threat. That they're

0:01:29.880 --> 0:01:33.160
<v Speaker 1>developed developing their own tools, and that still made reference

0:01:33.160 --> 0:01:35.640
<v Speaker 1>to that in their statement as well. But the market

0:01:35.720 --> 0:01:38.280
<v Speaker 1>narrative at the moment is that the risks actually far

0:01:38.440 --> 0:01:41.679
<v Speaker 1>outweigh the opportunities there and this weak guidance that we've

0:01:41.760 --> 0:01:45.160
<v Speaker 1>seen from Desso isn't really helping to reassure anyone in

0:01:45.200 --> 0:01:48.000
<v Speaker 1>the market. And that really explains this huge job in

0:01:48.040 --> 0:01:49.240
<v Speaker 1>the shows that we've seen today.

0:01:49.400 --> 0:01:53.880
<v Speaker 3>Yeah, really unforgiving, isn't it the response in terms of

0:01:53.960 --> 0:02:00.240
<v Speaker 3>investors being critical. Paul Singers, Elliott Investment Management continuing it's

0:02:00.520 --> 0:02:03.240
<v Speaker 3>LSE campaign today we've got more information.

0:02:03.560 --> 0:02:06.240
<v Speaker 1>Yeah, absolutely, And so AI disruption fear has actually also

0:02:06.240 --> 0:02:09.639
<v Speaker 1>come into this. So Elliott Investment Management, the activist Investors

0:02:09.639 --> 0:02:12.520
<v Speaker 1>that was also in the news last year for pressuring

0:02:12.600 --> 0:02:14.880
<v Speaker 1>VP to return to oil and gas. It's said to

0:02:14.880 --> 0:02:17.880
<v Speaker 1>be taking a significant steak in the London Stock Exchange

0:02:17.880 --> 0:02:20.519
<v Speaker 1>Group and this comes at a time when ELSEG is

0:02:20.560 --> 0:02:23.720
<v Speaker 1>facing a lot of challenges, one of them including that

0:02:23.760 --> 0:02:26.760
<v Speaker 1>potential disruption from AI that I've been talking about, you know,

0:02:26.800 --> 0:02:29.640
<v Speaker 1>with areas like analytics and data for example. That's a

0:02:29.720 --> 0:02:32.400
<v Speaker 1>really big part of the business model for LSEG, and

0:02:32.440 --> 0:02:34.360
<v Speaker 1>that is one of the things that could where you

0:02:34.400 --> 0:02:36.480
<v Speaker 1>could see really a lot of AI tools coming through.

0:02:37.080 --> 0:02:39.400
<v Speaker 1>And then also another challenge for el SEG has been

0:02:39.440 --> 0:02:41.760
<v Speaker 1>the IPO market. Of course in London, it's not in

0:02:41.800 --> 0:02:44.639
<v Speaker 1>the most fantastic shape. There has been some progress, but

0:02:44.760 --> 0:02:47.959
<v Speaker 1>no one would say there's necessarily a surge in listings

0:02:48.000 --> 0:02:50.360
<v Speaker 1>at the moment, and that is a big problem for

0:02:50.520 --> 0:02:53.359
<v Speaker 1>LSEG to contend with. It's not really clear how big

0:02:53.520 --> 0:02:56.680
<v Speaker 1>the steak is and exactly what changes Elliott is pushing for,

0:02:56.880 --> 0:03:00.160
<v Speaker 1>but the Ft reported that it wouldn't be pushing for

0:03:00.160 --> 0:03:02.440
<v Speaker 1>a sale or a spin off of the stock exchange

0:03:02.480 --> 0:03:05.440
<v Speaker 1>business in particular, but kind of just a general improvement

0:03:05.520 --> 0:03:08.040
<v Speaker 1>in performance. So we'll be watching out for that. But

0:03:08.160 --> 0:03:10.680
<v Speaker 1>in the meantime, the shares are up quite strongly this morning.

0:03:10.880 --> 0:03:15.240
<v Speaker 3>Yeah, what I noticed in terms of businesses in London

0:03:15.280 --> 0:03:19.120
<v Speaker 3>a lot of moving to aim the alternative listing venue

0:03:19.560 --> 0:03:24.440
<v Speaker 3>and just one caveat Bloomberg LP, the parent of Blueberg News,

0:03:24.440 --> 0:03:29.680
<v Speaker 3>competes with LSEG in providing financial data, so that little

0:03:29.680 --> 0:03:34.600
<v Speaker 3>addition there to that conversation. Elsewhere, Heineken came out with results.

0:03:34.720 --> 0:03:38.720
<v Speaker 3>They have a well, a pint size problem or is

0:03:38.720 --> 0:03:39.480
<v Speaker 3>it larger than that.

0:03:40.440 --> 0:03:43.080
<v Speaker 1>Well, they announced that it would make as many as

0:03:43.080 --> 0:03:45.880
<v Speaker 1>many as six thousand jobs to try and mitigate the

0:03:45.960 --> 0:03:49.520
<v Speaker 1>impact of weak alcohol demands. So that's about seven percent

0:03:49.600 --> 0:03:52.640
<v Speaker 1>of staff worldwide, and that really underscores how much ourcore

0:03:52.640 --> 0:03:55.960
<v Speaker 1>companies are struggling because of prices rising and then also

0:03:56.000 --> 0:03:59.400
<v Speaker 1>consumers in loads of different markets moderating cutting back that

0:03:59.520 --> 0:04:01.920
<v Speaker 1>are cool consumption. So that's going to be a big

0:04:01.960 --> 0:04:04.800
<v Speaker 1>problem for Heineken. The chez did rise this morning, so

0:04:04.880 --> 0:04:08.800
<v Speaker 1>Alena organization maybe was taken quite well by investors. But

0:04:08.840 --> 0:04:11.560
<v Speaker 1>then also the results by themselves this morning were not

0:04:11.760 --> 0:04:14.720
<v Speaker 1>that bad. So beer volumes did fall in twenty twenty

0:04:15.040 --> 0:04:17.120
<v Speaker 1>or five, but it wasn't as steep of a drop

0:04:17.360 --> 0:04:19.760
<v Speaker 1>as analysts had expected. And you know, we do have

0:04:19.760 --> 0:04:21.800
<v Speaker 1>the football World Cup this year, that's going to be

0:04:22.440 --> 0:04:24.679
<v Speaker 1>a big boost. So that's going to brighten the outlook

0:04:24.720 --> 0:04:27.360
<v Speaker 1>a little bit, but overall, the fundamentals of the bear

0:04:27.440 --> 0:04:30.760
<v Speaker 1>sector look quite weak, will look quite tough. Carlsberg just

0:04:30.839 --> 0:04:34.719
<v Speaker 1>last week also widened its outlook because of that muted demand,

0:04:34.800 --> 0:04:37.719
<v Speaker 1>especially in Western market. So it seems that there was

0:04:37.720 --> 0:04:40.479
<v Speaker 1>a prolonged slump there and there's you know, maybe a

0:04:40.480 --> 0:04:42.880
<v Speaker 1>few rock cuppigns that might not be enough to actually

0:04:42.960 --> 0:04:43.400
<v Speaker 1>upset that.

0:04:44.200 --> 0:04:48.240
<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

0:04:48.320 --> 0:04:50.880
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:50.960 --> 0:04:54.040
<v Speaker 2>making news on Wall Street and for the latest market

0:04:54.080 --> 0:04:58.520
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:58.640 --> 0:05:01.960
<v Speaker 2>Bloomberg dot com, and done Apple CarPlay and Android Auto

0:05:02.080 --> 0:05:03.640
<v Speaker 2>with the Bloomberg Business app.