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: Now, let's take a look at some of the stocks
Speaker 3: on the move today in Europe. I'm Lizzie Burden in
Speaker 3: London alongside Stephen Carroll in Brussels, and we're joined this
Speaker 3: morning by Bloomberg reporter Chloe Meley. Chloe, let's start off
Speaker 3: in Paris with Sweatech moves there to the down side,
Speaker 3: down four point five percent of the moment. What's the story.
Speaker 1: Yeah, so this is part of a big story around
Speaker 1: this AI trade to the AA trade being in trouble
Speaker 1: yet again. So we had this huge drop on the
Speaker 1: Cosby in South Korea at this massive sell off in
Speaker 1: the tech stocks there, and that is now spilling over
Speaker 1: into Europe this morning. And so we are seeing the
Speaker 1: likes of sweat Tech, which is a semiconductor company going
Speaker 1: into the red. We're seeing chip making equipment also makers
Speaker 1: like asm ASML also down the data center equipment makers
Speaker 1: like Schneider Electric and Prisman also in the red. There's
Speaker 1: really no one that has been spared this morning. So
Speaker 1: There's a couple of things that I've been weighing on
Speaker 1: that sector and that led to that original seller off.
Speaker 1: The first is that Meta has plans to build a
Speaker 1: cloud business that sells AI computing power, and so so
Speaker 1: manalists are saying that this suggests that Meta actually has
Speaker 1: been struggling maybe to find a good use for that
Speaker 1: computer power and that it may have overbuilt. So that's
Speaker 1: led to some jitters around AI. And then another thing
Speaker 1: that's weighed on those Asian tech stocks specifically has been
Speaker 1: the report that Apple wants to buy memory chips made
Speaker 1: by Chinese manufacturers and is trying to lobby the US
Speaker 1: government on this, and so this would hurt the competitive
Speaker 1: edge that as Samsung and ESK heainiks have managed to
Speaker 1: have over the last few years. And so all of
Speaker 1: that is really weighing on that tech sector across the world.
Speaker 1: And we've seen recently that you know that there's a
Speaker 1: sector where expectations are so high that Marcus really don't
Speaker 1: need a lot to trigger or sell off, and that's
Speaker 1: what we've seen today.
Speaker 4: Yeah, and I mean really interesting to see some of
Speaker 4: the consequences of that tech sell off and how it's
Speaker 4: affecting European markets. Let's turn to Buyer and next in Germany,
Speaker 4: an upgrade for them as a convinced investors.
Speaker 1: Yeah, so it's been upgraded to a buyer rating by
Speaker 1: Deutsche Bank, and that is after the Supreme Court ruling
Speaker 1: in its favor. So we actually saw a huge jump
Speaker 1: in the shares last week for Buyer on the back
Speaker 1: of this. So it's the US Supreme Court essentially a
Speaker 1: shielded buyer from tens of thousands of claims that it's
Speaker 1: round a perbicide should have carried a cancel warning label.
Speaker 1: So that's a very important ruling because it essentially draws
Speaker 1: a line under all of the lawsuits that the company
Speaker 1: has faced over the last decade and that has cost
Speaker 1: the company, you know, more than ten billion dollars. And
Speaker 1: so dotsche Bank is now saying that this ruling removes
Speaker 1: the overhang that had been really weighing on that stock
Speaker 1: for years now, and it means that investors can now
Speaker 1: really focus on things and other aspects of the company,
Speaker 1: and for example saying that there is actually quite compelling
Speaker 1: a growth in the crop businesses, in the farmer businesses,
Speaker 1: and so this means that now investors can kind of
Speaker 1: look ahead and think about other things other than than litigation.
Speaker 3: For buyer Chloe as it's you, let's head back to
Speaker 3: France and end on sadek So shares in that French
Speaker 3: food services company jumping.
Speaker 1: Why Yeah, So the catering company at raised their sales
Speaker 1: guidance and also had really good results, really good earnings
Speaker 1: this morning. So the boost of the outlook is also
Speaker 1: potentially going to prove conservative according to some analysts, so
Speaker 1: there might be even further to go. And there has
Speaker 1: been really good performance in North America in particular, and
Speaker 1: that has helped kind of end a few consecutive quarters
Speaker 1: of weakness for that company. It's benefited from a range
Speaker 1: of different things. There's been good demand at airport lounges
Speaker 1: for example, a good demand from the very strong attendance
Speaker 1: at sports events, and of course there'll be also the
Speaker 1: World Cup that has not been reflected in those earnings
Speaker 1: but will be for the next quarter. And then also
Speaker 1: generally there's been a real trend of companies moving to
Speaker 1: more outsourced catering models instead of managing that in house,
Speaker 1: and so that's been a real boost as well for
Speaker 1: that company. And now the attention is really shifting on
Speaker 1: the Capital Markets Day that we'll be having on the
Speaker 1: sixteenth of July and where we'll be expecting a little
Speaker 1: bit more on that strategy going forward.
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with
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