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: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll with Lizzie Burton
Speaker 3: and we're joined by Bloomberg reporter Chloe mele Chloy. Good morning.
Speaker 3: Continued flight disruption, of course, with the conflict continuing in
Speaker 3: the Middle East. You've been looking at the shares and
Speaker 3: Whizzer this morning.
Speaker 1: Yeah, and they are down quite significantly, and that is
Speaker 1: because we just cut its guidance because of that ongoing
Speaker 1: conflict in the Middle East. The disruption has meant, of
Speaker 1: course a lot of flight cancelations, and it also has
Speaker 1: led oil prices to spike, and so that means of
Speaker 1: course higher fuel costs that now Wizze has to absorb.
Speaker 1: And so Whizzer expects the disruption to hit its net
Speaker 1: profit by fifty million yeuros for fiscal twenty twenty six,
Speaker 1: and then ANALYSSA also saying that the fact could extend
Speaker 1: and even deepen into physical twenty twenty seven. And so
Speaker 1: some analysts have said that this profit warning really shows
Speaker 1: the groups lack of resilience, that there's you know, little profitability,
Speaker 1: really high financial leverage. And it's also worth noting that
Speaker 1: WIZ is also very exposed to that Middle East region,
Speaker 1: much more than maybe other airlines as well. So it
Speaker 1: might be that WE'RESA is uniquely badly prepared for such
Speaker 1: a disruption and that the rest of the industry might
Speaker 1: be a little bit better position. But given the magnitude
Speaker 1: of the impact, all the flight cancelations that we've seen,
Speaker 1: it's likely that we'll see more airlines coming out in
Speaker 1: the next few days or weeks and clarifying that earnings impact.
Speaker 3: And another sector that's of course hugely impacted by this
Speaker 3: is logistics. And we've heard from DHR this morning, how
Speaker 3: are they fair and chloge.
Speaker 1: Yeah, they took a bit of a hit this morning
Speaker 1: because the twenty twenty six guidance came in a little
Speaker 1: bit lower than expected. And some of that cautious approach
Speaker 1: is related to that disruption in the Middle East, given
Speaker 1: that DHI is likely to be impacted by the closure
Speaker 1: of airspace. So and LIS have noted that the margins
Speaker 1: for freight carriers like FedEx and ups, and DHL as
Speaker 1: well are impacted will be impacted because of longer transit
Speaker 1: times driving up fuel costs. And so it's essentially a
Speaker 1: similar story to Wizer and others birds about cargo planes
Speaker 1: rather than those passenger planes. The one thing that DHL
Speaker 1: does have going for it is that it's quite diversified company.
Speaker 1: It has a post and parcel business, it has a
Speaker 1: E and e commerce business, so the model is not
Speaker 1: as threatened maybe by those fuel costs as airlines are,
Speaker 1: for instance, but the guidance is still conservative. It does
Speaker 1: indicate a degree of caution going into twenty twenty six,
Speaker 1: and therefore we're seeing the shares down this morning.
Speaker 3: Okay, and away from the events in the Middle East,
Speaker 3: you've been also looking at the share as an st
Speaker 3: micro and aventful day. Yeah.
Speaker 1: Well, while all of this is happening in around, the
Speaker 1: AI trade has faded into the background a little bit,
Speaker 1: but it's still very relevant. And so we had Broadcom
Speaker 1: in the US are coming up with very strong earnings,
Speaker 1: very upbe outlook as well, saying that it expects the
Speaker 1: sell of AI chips to a top one hundred billion
Speaker 1: dollars in twenty twenty seven. And so we've seen that
Speaker 1: positive read across into the likes of st Micro, but
Speaker 1: also be Semiconductors ASML today because this outlook from Broadcom
Speaker 1: suggests continued investment in AI and quite good order visibility
Speaker 1: as well for those companies within that supply chain, and
Speaker 1: then for st Micro specifically, what also pushed to shares
Speaker 1: in the green today was the CEO saying that data
Speaker 1: center related revenue would be well above one billion dollars
Speaker 1: for next year. And so the number that a lot
Speaker 1: of investors and analysts are going to keep coming back
Speaker 1: to is that the world's four biggest hyperscalers, which are Alphabet, Amazon, Meta,
Speaker 1: and Microsoft, are planning to spend a combined six hundred
Speaker 1: and fifty billion dollars on data centers just this year.
Speaker 1: And so this is really a major opportunity for everyone involved.
Speaker 1: All of the companies involved within that supply chain includes STMCRO,
Speaker 1: which was doing pretty good today.
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