WEBVTT - SAP Jumps, Volvo Rises, Tomra Plunges 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll with Anna Edwards

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<v Speaker 3>and we're joined by Bloomberg's Tea Added Bio Tea. Good morning.

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<v Speaker 3>Let's start then with SAP, one of the companies that's

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<v Speaker 3>seeing pretty significant rises this morning.

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<v Speaker 4>Yes, a substantial jump here this morning for SAP. They

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<v Speaker 4>have been up over seven percent this morning, and that's

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<v Speaker 4>really based on their earnings and in particular one metric

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<v Speaker 4>which quite a lot of commentators are drawing out, and

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<v Speaker 4>that is the current cloud backlog number, which is a

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<v Speaker 4>crucial indicator for future revenue. And in that area, SAP

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<v Speaker 4>maintained a twenty five percent growth rate on constant currency

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<v Speaker 4>terms over the first quarter. That number is actually a

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<v Speaker 4>head of expectations as well. Anna, I know you spoke

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<v Speaker 4>to the CFO of SAP this morning and that number

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<v Speaker 4>was actually one of the first things he mentioned, really

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<v Speaker 4>emphasizing that pipeline strength, especially amidst the concerns about new

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<v Speaker 4>AI tools perhaps anthropic and of course the conflicts in

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<v Speaker 4>the Middle East. So it does seem like analysts are

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<v Speaker 4>convinced by this. This morning they've said these results are reassuring,

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<v Speaker 4>Deutsche Bank in particular, calling them a welcome relief, especially

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<v Speaker 4>actually in terms of some of the soft peer reportings.

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<v Speaker 5>That we've seen over the last few days.

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<v Speaker 4>There was that sector wide sell off on Thursday, City

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<v Speaker 4>saying the latest numbers show resilience as well, so seemingly

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<v Speaker 4>a positive morning all around for SAP.

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<v Speaker 1>Yeah, resilience and reassurance seemed to be the messages coming

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<v Speaker 1>through from analysts on that front, despite concerns then around

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<v Speaker 1>the pricing model and how that evolves into the future.

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<v Speaker 1>Let's talk about Volvo. This is not the cars, this

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<v Speaker 1>is the trucks. They've raised their market forecast then, ta,

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<v Speaker 1>how are investors reacting to that newslaw.

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<v Speaker 4>Yes, we have seen some results from Volvo's at European

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<v Speaker 4>truck making business this morning. Those numbers seem to have

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<v Speaker 4>been digested positively by investors. Volvo shares up as much

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<v Speaker 4>as two point six percent today, and that's because the

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<v Speaker 4>firm has shared that orders have increased, so there's a

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<v Speaker 4>positive outlook for the market, and it seems like this

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<v Speaker 4>could have a knock on effect for the rest of

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<v Speaker 4>the business. One analyst at Morgan Stanley saying trucks drove

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<v Speaker 4>the five percent e bit beat for the firm, But

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<v Speaker 4>the overall theme here, as you're mentioning, seems to be stability.

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<v Speaker 4>We've heard from Bernstein that's calling out the firm's strong

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<v Speaker 4>service business, and they also note that there hasn't yet

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<v Speaker 4>been an impact from the Middle East conflict, so nothing

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<v Speaker 4>there on those higher fuel prices.

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<v Speaker 5>Expected high fuel prices.

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<v Speaker 4>But I think, as we saw with SAP, it's really

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<v Speaker 4>in this uncertain macro environment. It does seem the analysts

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<v Speaker 4>and perhaps investors are really looking to the future and

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<v Speaker 4>they're on the hunt for signs of resilience and pipeline strength,

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<v Speaker 4>particularly as so many things pertaining to the geopolitical situation

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<v Speaker 4>and the global economic outlook as a whole remain up

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<v Speaker 4>in the air.

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<v Speaker 3>We're going to Norway next Teawa to talk about Tumraus Systems.

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<v Speaker 3>What's the news from them? Those shows lower this morning.

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<v Speaker 5>Yeah, So anyone that's not familiar.

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<v Speaker 4>Tomra Systems is a Norwegian multinational. They specialize in a

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<v Speaker 4>sensor based sorting collection technology, so really aiming to facilitate

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<v Speaker 4>the circular economy through waste management. They've seen a big

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<v Speaker 4>drop this morning, down as much as twenty one percent,

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<v Speaker 4>one of the biggest losers on the stock six hundred,

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<v Speaker 4>and that's after they reported earnings which fell short of expectations.

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<v Speaker 4>An lists are saying their performance was overall underwhelming. Jeffries

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<v Speaker 4>says the myths came mainly in recycling and that was

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<v Speaker 4>due to low installation volumes which weighed on results. But

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<v Speaker 4>in terms of what Tomra itself has said, they say

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<v Speaker 4>that the growth prospects for food revenues in twenty twenty

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<v Speaker 4>six are estimated to be in the mid to high

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<v Speaker 4>single digit range, so perhaps some relief there, But they

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<v Speaker 4>have noted that the current market uncertainty, so trade tensions

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<v Speaker 4>and tariffs could negatively impact customers, specifically their investment sentiment,

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<v Speaker 4>and it could also postpone orders over the coming quarters,

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<v Speaker 4>so perhaps a few more hurdles to in the near future.

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<v Speaker 2>Fortila the Stockmover's Report from Bloomberg Radio. Check back with

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