WEBVTT - Soitec Falls, Bayer Upgrade, Sodexo Rises

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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>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move today in Europe. I'm Lizzie Burden in

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<v Speaker 3>London alongside Stephen Carroll in Brussels, and we're joined this

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<v Speaker 3>morning by Bloomberg reporter Chloe Meley. Chloe, let's start off

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<v Speaker 3>in Paris with Sweatech moves there to the down side,

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<v Speaker 3>down four point five percent of the moment. What's the story.

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<v Speaker 1>Yeah, so this is part of a big story around

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<v Speaker 1>this AI trade to the AA trade being in trouble

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<v Speaker 1>yet again. So we had this huge drop on the

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<v Speaker 1>Cosby in South Korea at this massive sell off in

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<v Speaker 1>the tech stocks there, and that is now spilling over

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<v Speaker 1>into Europe this morning. And so we are seeing the

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<v Speaker 1>likes of sweat Tech, which is a semiconductor company going

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<v Speaker 1>into the red. We're seeing chip making equipment also makers

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<v Speaker 1>like asm ASML also down the data center equipment makers

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<v Speaker 1>like Schneider Electric and Prisman also in the red. There's

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<v Speaker 1>really no one that has been spared this morning. So

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<v Speaker 1>There's a couple of things that I've been weighing on

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<v Speaker 1>that sector and that led to that original seller off.

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<v Speaker 1>The first is that Meta has plans to build a

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<v Speaker 1>cloud business that sells AI computing power, and so so

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<v Speaker 1>manalists are saying that this suggests that Meta actually has

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<v Speaker 1>been struggling maybe to find a good use for that

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<v Speaker 1>computer power and that it may have overbuilt. So that's

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<v Speaker 1>led to some jitters around AI. And then another thing

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<v Speaker 1>that's weighed on those Asian tech stocks specifically has been

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<v Speaker 1>the report that Apple wants to buy memory chips made

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<v Speaker 1>by Chinese manufacturers and is trying to lobby the US

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<v Speaker 1>government on this, and so this would hurt the competitive

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<v Speaker 1>edge that as Samsung and ESK heainiks have managed to

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<v Speaker 1>have over the last few years. And so all of

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<v Speaker 1>that is really weighing on that tech sector across the world.

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<v Speaker 1>And we've seen recently that you know that there's a

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<v Speaker 1>sector where expectations are so high that Marcus really don't

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<v Speaker 1>need a lot to trigger or sell off, and that's

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<v Speaker 1>what we've seen today.

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<v Speaker 4>Yeah, and I mean really interesting to see some of

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<v Speaker 4>the consequences of that tech sell off and how it's

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<v Speaker 4>affecting European markets. Let's turn to Buyer and next in Germany,

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<v Speaker 4>an upgrade for them as a convinced investors.

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<v Speaker 1>Yeah, so it's been upgraded to a buyer rating by

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<v Speaker 1>Deutsche Bank, and that is after the Supreme Court ruling

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<v Speaker 1>in its favor. So we actually saw a huge jump

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<v Speaker 1>in the shares last week for Buyer on the back

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<v Speaker 1>of this. So it's the US Supreme Court essentially a

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<v Speaker 1>shielded buyer from tens of thousands of claims that it's

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<v Speaker 1>round a perbicide should have carried a cancel warning label.

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<v Speaker 1>So that's a very important ruling because it essentially draws

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<v Speaker 1>a line under all of the lawsuits that the company

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<v Speaker 1>has faced over the last decade and that has cost

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<v Speaker 1>the company, you know, more than ten billion dollars. And

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<v Speaker 1>so dotsche Bank is now saying that this ruling removes

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<v Speaker 1>the overhang that had been really weighing on that stock

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<v Speaker 1>for years now, and it means that investors can now

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<v Speaker 1>really focus on things and other aspects of the company,

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<v Speaker 1>and for example saying that there is actually quite compelling

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<v Speaker 1>a growth in the crop businesses, in the farmer businesses,

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<v Speaker 1>and so this means that now investors can kind of

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<v Speaker 1>look ahead and think about other things other than than litigation.

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<v Speaker 3>For buyer Chloe as it's you, let's head back to

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<v Speaker 3>France and end on sadek So shares in that French

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<v Speaker 3>food services company jumping.

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<v Speaker 1>Why Yeah, So the catering company at raised their sales

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<v Speaker 1>guidance and also had really good results, really good earnings

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<v Speaker 1>this morning. So the boost of the outlook is also

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<v Speaker 1>potentially going to prove conservative according to some analysts, so

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<v Speaker 1>there might be even further to go. And there has

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<v Speaker 1>been really good performance in North America in particular, and

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<v Speaker 1>that has helped kind of end a few consecutive quarters

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<v Speaker 1>of weakness for that company. It's benefited from a range

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<v Speaker 1>of different things. There's been good demand at airport lounges

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<v Speaker 1>for example, a good demand from the very strong attendance

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<v Speaker 1>at sports events, and of course there'll be also the

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<v Speaker 1>World Cup that has not been reflected in those earnings

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<v Speaker 1>but will be for the next quarter. And then also

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<v Speaker 1>generally there's been a real trend of companies moving to

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<v Speaker 1>more outsourced catering models instead of managing that in house,

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<v Speaker 1>and so that's been a real boost as well for

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<v Speaker 1>that company. And now the attention is really shifting on

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<v Speaker 1>the Capital Markets Day that we'll be having on the

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<v Speaker 1>sixteenth of July and where we'll be expecting a little

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<v Speaker 1>bit more on that strategy going forward.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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<v Speaker 2>making news on Wall Street and for the latest market

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