Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some of the stocks
Speaker 3: on the move today here in Europe. I'm Caroline Hepkat
Speaker 3: and I'm joined by Bloomberg Report of Chloe Melay. Good morning.
Speaker 3: I want to talk about Dasso Systems, Chloe JP Morgan
Speaker 3: analyst saying it's worse than even the most negative investors
Speaker 3: we've spoken to out Why do they say that.
Speaker 1: Yeah, it's been really a massive drop in the sheds
Speaker 1: for the company this morning, and that is because the
Speaker 1: fourth quarter results really disappointed investors. They were the low
Speaker 1: end of guidance, and then also the growth guidance for
Speaker 1: this year for twenty twenty six was also way below
Speaker 1: analyst expectations. And as you mentioned, JP Morgan analysts have
Speaker 1: said that this was even worse than what the most
Speaker 1: negative investors had had thought about. So this is of
Speaker 1: course intra because this is happening at a time when
Speaker 1: you know, within the last week we've got we've had
Speaker 1: this big sell off in software firms, which that has
Speaker 1: really dominated the new cycle, and I've seen investors trying
Speaker 1: to limit their exposure to all of those stocks, all
Speaker 1: of those companies that could potentially be disrupted by new
Speaker 1: AI tools and software. Firms like Deso system that have
Speaker 1: really been seen as the kind of clearest potential AI losers,
Speaker 1: and you know, those companies do tend to say that
Speaker 1: AI is an opportunity rather than a threat. That they're
Speaker 1: developed developing their own tools, and that still made reference
Speaker 1: to that in their statement as well. But the market
Speaker 1: narrative at the moment is that the risks actually far
Speaker 1: outweigh the opportunities there and this weak guidance that we've
Speaker 1: seen from Desso isn't really helping to reassure anyone in
Speaker 1: the market. And that really explains this huge job in
Speaker 1: the shows that we've seen today.
Speaker 3: Yeah, really unforgiving, isn't it the response in terms of
Speaker 3: investors being critical. Paul Singers, Elliott Investment Management continuing it's
Speaker 3: LSE campaign today we've got more information.
Speaker 1: Yeah, absolutely, And so AI disruption fear has actually also
Speaker 1: come into this. So Elliott Investment Management, the activist Investors
Speaker 1: that was also in the news last year for pressuring
Speaker 1: VP to return to oil and gas. It's said to
Speaker 1: be taking a significant steak in the London Stock Exchange
Speaker 1: Group and this comes at a time when ELSEG is
Speaker 1: facing a lot of challenges, one of them including that
Speaker 1: potential disruption from AI that I've been talking about, you know,
Speaker 1: with areas like analytics and data for example. That's a
Speaker 1: really big part of the business model for LSEG, and
Speaker 1: that is one of the things that could where you
Speaker 1: could see really a lot of AI tools coming through.
Speaker 1: And then also another challenge for el SEG has been
Speaker 1: the IPO market. Of course in London, it's not in
Speaker 1: the most fantastic shape. There has been some progress, but
Speaker 1: no one would say there's necessarily a surge in listings
Speaker 1: at the moment, and that is a big problem for
Speaker 1: LSEG to contend with. It's not really clear how big
Speaker 1: the steak is and exactly what changes Elliott is pushing for,
Speaker 1: but the Ft reported that it wouldn't be pushing for
Speaker 1: a sale or a spin off of the stock exchange
Speaker 1: business in particular, but kind of just a general improvement
Speaker 1: in performance. So we'll be watching out for that. But
Speaker 1: in the meantime, the shares are up quite strongly this morning.
Speaker 3: Yeah, what I noticed in terms of businesses in London
Speaker 3: a lot of moving to aim the alternative listing venue
Speaker 3: and just one caveat Bloomberg LP, the parent of Blueberg News,
Speaker 3: competes with LSEG in providing financial data, so that little
Speaker 3: addition there to that conversation. Elsewhere, Heineken came out with results.
Speaker 3: They have a well, a pint size problem or is
Speaker 3: it larger than that.
Speaker 1: Well, they announced that it would make as many as
Speaker 1: many as six thousand jobs to try and mitigate the
Speaker 1: impact of weak alcohol demands. So that's about seven percent
Speaker 1: of staff worldwide, and that really underscores how much ourcore
Speaker 1: companies are struggling because of prices rising and then also
Speaker 1: consumers in loads of different markets moderating cutting back that
Speaker 1: are cool consumption. So that's going to be a big
Speaker 1: problem for Heineken. The chez did rise this morning, so
Speaker 1: Alena organization maybe was taken quite well by investors. But
Speaker 1: then also the results by themselves this morning were not
Speaker 1: that bad. So beer volumes did fall in twenty twenty
Speaker 1: or five, but it wasn't as steep of a drop
Speaker 1: as analysts had expected. And you know, we do have
Speaker 1: the football World Cup this year, that's going to be
Speaker 1: a big boost. So that's going to brighten the outlook
Speaker 1: a little bit, but overall, the fundamentals of the bear
Speaker 1: sector look quite weak, will look quite tough. Carlsberg just
Speaker 1: last week also widened its outlook because of that muted demand,
Speaker 1: especially in Western market. So it seems that there was
Speaker 1: a prolonged slump there and there's you know, maybe a
Speaker 1: few rock cuppigns that might not be enough to actually
Speaker 1: upset that.
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