Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in 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 Anna Edwards
Speaker 3: and we're joined by Bloomberg's Tea Added Bio Tea. Good morning.
Speaker 3: Let's start then with SAP, one of the companies that's
Speaker 3: seeing pretty significant rises this morning.
Speaker 4: Yes, a substantial jump here this morning for SAP. They
Speaker 4: have been up over seven percent this morning, and that's
Speaker 4: really based on their earnings and in particular one metric
Speaker 4: which quite a lot of commentators are drawing out, and
Speaker 4: that is the current cloud backlog number, which is a
Speaker 4: crucial indicator for future revenue. And in that area, SAP
Speaker 4: maintained a twenty five percent growth rate on constant currency
Speaker 4: terms over the first quarter. That number is actually a
Speaker 4: head of expectations as well. Anna, I know you spoke
Speaker 4: to the CFO of SAP this morning and that number
Speaker 4: was actually one of the first things he mentioned, really
Speaker 4: emphasizing that pipeline strength, especially amidst the concerns about new
Speaker 4: AI tools perhaps anthropic and of course the conflicts in
Speaker 4: the Middle East. So it does seem like analysts are
Speaker 4: convinced by this. This morning they've said these results are reassuring,
Speaker 4: Deutsche Bank in particular, calling them a welcome relief, especially
Speaker 4: actually in terms of some of the soft peer reportings.
Speaker 5: That we've seen over the last few days.
Speaker 4: There was that sector wide sell off on Thursday, City
Speaker 4: saying the latest numbers show resilience as well, so seemingly
Speaker 4: a positive morning all around for SAP.
Speaker 1: Yeah, resilience and reassurance seemed to be the messages coming
Speaker 1: through from analysts on that front, despite concerns then around
Speaker 1: the pricing model and how that evolves into the future.
Speaker 1: Let's talk about Volvo. This is not the cars, this
Speaker 1: is the trucks. They've raised their market forecast then, ta,
Speaker 1: how are investors reacting to that newslaw.
Speaker 4: Yes, we have seen some results from Volvo's at European
Speaker 4: truck making business this morning. Those numbers seem to have
Speaker 4: been digested positively by investors. Volvo shares up as much
Speaker 4: as two point six percent today, and that's because the
Speaker 4: firm has shared that orders have increased, so there's a
Speaker 4: positive outlook for the market, and it seems like this
Speaker 4: could have a knock on effect for the rest of
Speaker 4: the business. One analyst at Morgan Stanley saying trucks drove
Speaker 4: the five percent e bit beat for the firm, But
Speaker 4: the overall theme here, as you're mentioning, seems to be stability.
Speaker 4: We've heard from Bernstein that's calling out the firm's strong
Speaker 4: service business, and they also note that there hasn't yet
Speaker 4: been an impact from the Middle East conflict, so nothing
Speaker 4: there on those higher fuel prices.
Speaker 5: Expected high fuel prices.
Speaker 4: But I think, as we saw with SAP, it's really
Speaker 4: in this uncertain macro environment. It does seem the analysts
Speaker 4: and perhaps investors are really looking to the future and
Speaker 4: they're on the hunt for signs of resilience and pipeline strength,
Speaker 4: particularly as so many things pertaining to the geopolitical situation
Speaker 4: and the global economic outlook as a whole remain up
Speaker 4: in the air.
Speaker 3: We're going to Norway next Teawa to talk about Tumraus Systems.
Speaker 3: What's the news from them? Those shows lower this morning.
Speaker 5: Yeah, So anyone that's not familiar.
Speaker 4: Tomra Systems is a Norwegian multinational. They specialize in a
Speaker 4: sensor based sorting collection technology, so really aiming to facilitate
Speaker 4: the circular economy through waste management. They've seen a big
Speaker 4: drop this morning, down as much as twenty one percent,
Speaker 4: one of the biggest losers on the stock six hundred,
Speaker 4: and that's after they reported earnings which fell short of expectations.
Speaker 4: An lists are saying their performance was overall underwhelming. Jeffries
Speaker 4: says the myths came mainly in recycling and that was
Speaker 4: due to low installation volumes which weighed on results. But
Speaker 4: in terms of what Tomra itself has said, they say
Speaker 4: that the growth prospects for food revenues in twenty twenty
Speaker 4: six are estimated to be in the mid to high
Speaker 4: single digit range, so perhaps some relief there, But they
Speaker 4: have noted that the current market uncertainty, so trade tensions
Speaker 4: and tariffs could negatively impact customers, specifically their investment sentiment,
Speaker 4: and it could also postpone orders over the coming quarters,
Speaker 4: so perhaps a few more hurdles to in the near future.
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