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 --> 00:00:16,200 Speaker 2: the stock market, harnessing the power of Bloomberg data. 4 00:00:16,320 --> 00:00:17,840 Speaker 3: Well, let's take a look at some stocks on the 5 00:00:17,880 --> 00:00:20,440 Speaker 3: move today in Europe. I'm Stephen Carroll with Lizzie Burton 6 00:00:20,480 --> 00:00:23,720 Speaker 3: and we're joined by Bloomberg reporter Chloe mele Chloy. Good morning. 7 00:00:24,200 --> 00:00:28,880 Speaker 3: Continued flight disruption, of course, with the conflict continuing in 8 00:00:28,920 --> 00:00:31,000 Speaker 3: the Middle East. You've been looking at the shares and 9 00:00:31,040 --> 00:00:32,360 Speaker 3: Whizzer this morning. 10 00:00:32,640 --> 00:00:35,120 Speaker 1: Yeah, and they are down quite significantly, and that is 11 00:00:35,159 --> 00:00:38,360 Speaker 1: because we just cut its guidance because of that ongoing 12 00:00:38,400 --> 00:00:41,640 Speaker 1: conflict in the Middle East. The disruption has meant, of 13 00:00:41,680 --> 00:00:44,559 Speaker 1: course a lot of flight cancelations, and it also has 14 00:00:44,640 --> 00:00:47,279 Speaker 1: led oil prices to spike, and so that means of 15 00:00:47,320 --> 00:00:50,400 Speaker 1: course higher fuel costs that now Wizze has to absorb. 16 00:00:51,000 --> 00:00:53,640 Speaker 1: And so Whizzer expects the disruption to hit its net 17 00:00:53,720 --> 00:00:57,760 Speaker 1: profit by fifty million yeuros for fiscal twenty twenty six, 18 00:00:57,800 --> 00:01:01,360 Speaker 1: and then ANALYSSA also saying that the fact could extend 19 00:01:01,360 --> 00:01:04,840 Speaker 1: and even deepen into physical twenty twenty seven. And so 20 00:01:05,560 --> 00:01:08,600 Speaker 1: some analysts have said that this profit warning really shows 21 00:01:08,840 --> 00:01:12,160 Speaker 1: the groups lack of resilience, that there's you know, little profitability, 22 00:01:12,400 --> 00:01:15,640 Speaker 1: really high financial leverage. And it's also worth noting that 23 00:01:15,680 --> 00:01:18,920 Speaker 1: WIZ is also very exposed to that Middle East region, 24 00:01:19,040 --> 00:01:21,679 Speaker 1: much more than maybe other airlines as well. So it 25 00:01:21,760 --> 00:01:24,800 Speaker 1: might be that WE'RESA is uniquely badly prepared for such 26 00:01:24,840 --> 00:01:27,800 Speaker 1: a disruption and that the rest of the industry might 27 00:01:27,840 --> 00:01:31,160 Speaker 1: be a little bit better position. But given the magnitude 28 00:01:31,520 --> 00:01:34,040 Speaker 1: of the impact, all the flight cancelations that we've seen, 29 00:01:34,360 --> 00:01:37,160 Speaker 1: it's likely that we'll see more airlines coming out in 30 00:01:37,200 --> 00:01:41,040 Speaker 1: the next few days or weeks and clarifying that earnings impact. 31 00:01:41,760 --> 00:01:44,920 Speaker 3: And another sector that's of course hugely impacted by this 32 00:01:45,040 --> 00:01:47,440 Speaker 3: is logistics. And we've heard from DHR this morning, how 33 00:01:47,440 --> 00:01:48,760 Speaker 3: are they fair and chloge. 34 00:01:48,480 --> 00:01:50,040 Speaker 1: Yeah, they took a bit of a hit this morning 35 00:01:50,080 --> 00:01:52,720 Speaker 1: because the twenty twenty six guidance came in a little 36 00:01:52,720 --> 00:01:56,440 Speaker 1: bit lower than expected. And some of that cautious approach 37 00:01:56,640 --> 00:01:59,400 Speaker 1: is related to that disruption in the Middle East, given 38 00:01:59,440 --> 00:02:02,480 Speaker 1: that DHI is likely to be impacted by the closure 39 00:02:02,480 --> 00:02:05,840 Speaker 1: of airspace. So and LIS have noted that the margins 40 00:02:05,880 --> 00:02:09,720 Speaker 1: for freight carriers like FedEx and ups, and DHL as 41 00:02:09,760 --> 00:02:13,600 Speaker 1: well are impacted will be impacted because of longer transit 42 00:02:13,680 --> 00:02:17,360 Speaker 1: times driving up fuel costs. And so it's essentially a 43 00:02:17,440 --> 00:02:20,960 Speaker 1: similar story to Wizer and others birds about cargo planes 44 00:02:21,040 --> 00:02:24,120 Speaker 1: rather than those passenger planes. The one thing that DHL 45 00:02:24,240 --> 00:02:27,760 Speaker 1: does have going for it is that it's quite diversified company. 46 00:02:27,800 --> 00:02:29,560 Speaker 1: It has a post and parcel business, it has a 47 00:02:29,639 --> 00:02:32,480 Speaker 1: E and e commerce business, so the model is not 48 00:02:32,840 --> 00:02:36,120 Speaker 1: as threatened maybe by those fuel costs as airlines are, 49 00:02:36,160 --> 00:02:39,720 Speaker 1: for instance, but the guidance is still conservative. It does 50 00:02:39,720 --> 00:02:42,600 Speaker 1: indicate a degree of caution going into twenty twenty six, 51 00:02:42,680 --> 00:02:45,160 Speaker 1: and therefore we're seeing the shares down this morning. 52 00:02:46,160 --> 00:02:49,000 Speaker 3: Okay, and away from the events in the Middle East, 53 00:02:49,120 --> 00:02:51,200 Speaker 3: you've been also looking at the share as an st 54 00:02:51,400 --> 00:02:53,160 Speaker 3: micro and aventful day. Yeah. 55 00:02:53,200 --> 00:02:55,560 Speaker 1: Well, while all of this is happening in around, the 56 00:02:55,600 --> 00:02:57,800 Speaker 1: AI trade has faded into the background a little bit, 57 00:02:57,840 --> 00:03:00,720 Speaker 1: but it's still very relevant. And so we had Broadcom 58 00:03:00,720 --> 00:03:03,359 Speaker 1: in the US are coming up with very strong earnings, 59 00:03:03,480 --> 00:03:06,280 Speaker 1: very upbe outlook as well, saying that it expects the 60 00:03:06,360 --> 00:03:09,280 Speaker 1: sell of AI chips to a top one hundred billion 61 00:03:09,320 --> 00:03:12,160 Speaker 1: dollars in twenty twenty seven. And so we've seen that 62 00:03:12,360 --> 00:03:15,080 Speaker 1: positive read across into the likes of st Micro, but 63 00:03:15,200 --> 00:03:19,880 Speaker 1: also be Semiconductors ASML today because this outlook from Broadcom 64 00:03:20,320 --> 00:03:24,480 Speaker 1: suggests continued investment in AI and quite good order visibility 65 00:03:24,520 --> 00:03:27,400 Speaker 1: as well for those companies within that supply chain, and 66 00:03:27,440 --> 00:03:30,919 Speaker 1: then for st Micro specifically, what also pushed to shares 67 00:03:30,960 --> 00:03:33,840 Speaker 1: in the green today was the CEO saying that data 68 00:03:33,880 --> 00:03:37,560 Speaker 1: center related revenue would be well above one billion dollars 69 00:03:37,600 --> 00:03:40,360 Speaker 1: for next year. And so the number that a lot 70 00:03:40,400 --> 00:03:42,520 Speaker 1: of investors and analysts are going to keep coming back 71 00:03:42,520 --> 00:03:47,040 Speaker 1: to is that the world's four biggest hyperscalers, which are Alphabet, Amazon, Meta, 72 00:03:47,080 --> 00:03:50,120 Speaker 1: and Microsoft, are planning to spend a combined six hundred 73 00:03:50,160 --> 00:03:53,320 Speaker 1: and fifty billion dollars on data centers just this year. 74 00:03:53,360 --> 00:03:57,000 Speaker 1: And so this is really a major opportunity for everyone involved. 75 00:03:57,240 --> 00:04:01,240 Speaker 1: All of the companies involved within that supply chain includes STMCRO, 76 00:04:01,320 --> 00:04:03,480 Speaker 1: which was doing pretty good today. 77 00:04:03,760 --> 00:04:08,000 Speaker 2: The Stockmover's report from Bloomberg Radio. Check back with us 78 00:04:08,040 --> 00:04:10,840 Speaker 2: throughout the day for the latest roundup of companies making 79 00:04:10,920 --> 00:04:14,520 Speaker 2: news on Wall Street and for the latest market moving headlines. 80 00:04:14,760 --> 00:04:18,760 Speaker 2: Listen to Bloomberg Radio Live. Catch us on YouTube Bloomberg 81 00:04:18,800 --> 00:04:21,880 Speaker 2: dot com and on Applecarplay and Android Auto with the 82 00:04:21,920 --> 00:04:23,279 Speaker 2: Bloomberg Business App.