WEBVTT - Airbus Slips, Euronext Drops, Nestlé Rises 

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data.

0:00:16.520 --> 0:00:17.919
<v Speaker 3>Let's take a look at some of the stocks on

0:00:17.960 --> 0:00:20.279
<v Speaker 3>the move today here in Europe. I'm Caroline Hepcat with

0:00:20.400 --> 0:00:23.360
<v Speaker 3>Joel Abissecci. We're joined by Bloomberg reporter Clomba.

0:00:23.079 --> 0:00:23.800
<v Speaker 4>Lake of Morning.

0:00:23.880 --> 0:00:27.640
<v Speaker 3>Good morning, air Boss, the plane maker seeing some headwinds

0:00:27.760 --> 0:00:31.280
<v Speaker 3>because of engines, worried about that.

0:00:31.400 --> 0:00:33.080
<v Speaker 4>What's the latest on air Boss?

0:00:33.200 --> 0:00:35.400
<v Speaker 5>Yeah, Well, the Ebbers problem is actually more of a

0:00:35.440 --> 0:00:38.879
<v Speaker 5>Pratt and Whitney problem, the Pratton Whitney being the supplier

0:00:38.960 --> 0:00:43.280
<v Speaker 5>of engines to the A three twenty family of Airbus planes,

0:00:43.320 --> 0:00:46.840
<v Speaker 5>and that company is not meeting targets, which in terms

0:00:46.840 --> 0:00:48.040
<v Speaker 5>of means that Airbus.

0:00:48.080 --> 0:00:49.879
<v Speaker 1>Isn't able to meet their own targets.

0:00:49.920 --> 0:00:52.680
<v Speaker 5>And the CEO has been quite forceful in his criticism

0:00:52.760 --> 0:00:54.800
<v Speaker 5>of Pratt and Whitney. He said that he had what

0:00:54.880 --> 0:00:58.880
<v Speaker 5>he called difficult discussions with that supplier and its insufficient

0:00:59.000 --> 0:01:02.080
<v Speaker 5>rate of engine production. But the fact that the blame

0:01:02.120 --> 0:01:04.800
<v Speaker 5>doesn't fall on Airbus doesn't change the fact that it

0:01:04.840 --> 0:01:07.600
<v Speaker 5>won't be able to meet its own production in delivery targets,

0:01:07.600 --> 0:01:10.279
<v Speaker 5>and that is really dragging the shares down this morning.

0:01:10.880 --> 0:01:13.440
<v Speaker 5>The problem is that the issue is likely to continue

0:01:13.640 --> 0:01:16.440
<v Speaker 5>into twenty twenty seven as well, and that might lead

0:01:17.160 --> 0:01:20.160
<v Speaker 5>the gap in performance between Airbus and Boeing to wide

0:01:20.200 --> 0:01:21.360
<v Speaker 5>and even further.

0:01:22.040 --> 0:01:23.240
<v Speaker 1>We can see that gap already.

0:01:23.280 --> 0:01:26.600
<v Speaker 5>Ebbus deliveries in January we're at the lowest level in

0:01:26.680 --> 0:01:29.280
<v Speaker 5>any month since twenty twenty. But then at the same

0:01:29.280 --> 0:01:32.559
<v Speaker 5>time Boeing has delivered the highest number of planes is

0:01:32.040 --> 0:01:35.880
<v Speaker 5>twenty eighteen, so there's a real gap in delivery. They're

0:01:35.880 --> 0:01:38.640
<v Speaker 5>all divergence, and so Airbus is down on the back

0:01:38.680 --> 0:01:39.119
<v Speaker 5>of that.

0:01:40.000 --> 0:01:40.919
<v Speaker 4>And you're next.

0:01:41.440 --> 0:01:45.360
<v Speaker 3>They're saying that they expect costs to jump this yerige

0:01:45.400 --> 0:01:48.160
<v Speaker 3>of ANDVI strategic investments and the acquisition of the athen

0:01:48.200 --> 0:01:49.080
<v Speaker 3>stock exchange.

0:01:49.320 --> 0:01:50.360
<v Speaker 4>What's been the reaction this.

0:01:50.360 --> 0:01:52.520
<v Speaker 1>Morning, well, not very positive.

0:01:52.760 --> 0:01:55.360
<v Speaker 5>The shares are down on the back of that because

0:01:55.680 --> 0:02:00.240
<v Speaker 5>of those costs rising, and that is the expenses will

0:02:00.280 --> 0:02:03.440
<v Speaker 5>come in as one hundred million euro more than there

0:02:03.440 --> 0:02:05.440
<v Speaker 5>were in twenty twenty five, and this was ahead of

0:02:05.480 --> 0:02:07.000
<v Speaker 5>what analysts had expected.

0:02:07.000 --> 0:02:09.480
<v Speaker 1>And as you say, the reason for those costs is because.

0:02:09.400 --> 0:02:13.040
<v Speaker 5>Of some strategic investments, so things like adding power futures

0:02:13.040 --> 0:02:16.919
<v Speaker 5>to the commodities segment and settling cash equities in more countries.

0:02:17.160 --> 0:02:19.320
<v Speaker 5>But then also costs related to, as you said, the

0:02:19.320 --> 0:02:22.840
<v Speaker 5>acquisition of the Athens Stock Exchange, which was completed just

0:02:22.960 --> 0:02:25.639
<v Speaker 5>late last year. So we've got those rising costs, we've

0:02:25.680 --> 0:02:29.120
<v Speaker 5>got earnings coming in a little softer than expected, and

0:02:29.160 --> 0:02:32.240
<v Speaker 5>that is leading to that weakness. Urinex was also one

0:02:32.240 --> 0:02:35.000
<v Speaker 5>of the names that was involved in this AI disruption

0:02:35.200 --> 0:02:38.240
<v Speaker 5>sell off, given that it's provider of data and analytics,

0:02:38.840 --> 0:02:41.160
<v Speaker 5>but it's not as exposed to the data side, you know.

0:02:41.200 --> 0:02:44.639
<v Speaker 5>For example, Elseg derives about half of revenue from data.

0:02:44.840 --> 0:02:47.760
<v Speaker 5>Urinx is just about fifteen percent. And the CEO say

0:02:47.800 --> 0:02:50.519
<v Speaker 5>he was not too concerned, affected or impacted in any

0:02:50.520 --> 0:02:51.720
<v Speaker 5>way by this AI threat.

0:02:52.560 --> 0:02:54.600
<v Speaker 4>Okay, so that's on uranext memhile.

0:02:54.639 --> 0:02:58.200
<v Speaker 3>Nesle shares rising with the Swiss food jarts beat on

0:02:58.480 --> 0:02:59.400
<v Speaker 3>sales growth.

0:02:59.520 --> 0:03:02.080
<v Speaker 4>What's more in those results.

0:03:01.680 --> 0:03:04.600
<v Speaker 5>Yeah, Nesle is quite optimistic about twenty twenty six that

0:03:04.720 --> 0:03:07.480
<v Speaker 5>sales growth will accelerate this year. It seems that twenty

0:03:07.520 --> 0:03:09.680
<v Speaker 5>twenty six will also be the start of a more

0:03:09.720 --> 0:03:13.240
<v Speaker 5>efficient organization, so it's in advanced talks to sell its

0:03:13.280 --> 0:03:16.440
<v Speaker 5>ice cream business. That's part of a broader strategy of

0:03:16.480 --> 0:03:19.720
<v Speaker 5>streamlining the portfolio a bit more. The business is also

0:03:19.800 --> 0:03:23.359
<v Speaker 5>getting reorganized around four core divisions, and the company is

0:03:23.400 --> 0:03:26.320
<v Speaker 5>really doubling down on coffee and pet care as the

0:03:26.400 --> 0:03:29.720
<v Speaker 5>kind of key segments going forward. It's been a really

0:03:29.720 --> 0:03:31.800
<v Speaker 5>busy start of the year for the new CEO. He's

0:03:31.840 --> 0:03:35.480
<v Speaker 5>announced major job cards, he's organizing the business. He's also

0:03:35.520 --> 0:03:38.560
<v Speaker 5>dealing with this massive infant formula recall that is really

0:03:38.600 --> 0:03:41.960
<v Speaker 5>hurting cells. But more importantly, it's important to manage that

0:03:42.040 --> 0:03:45.040
<v Speaker 5>well so that to avoid too much of a reputation

0:03:45.120 --> 0:03:47.320
<v Speaker 5>hit as well. So it's been a really busy time

0:03:47.400 --> 0:03:51.720
<v Speaker 5>and investors are scrutinizing all aspects of this ongoing turnaround

0:03:51.720 --> 0:03:53.760
<v Speaker 5>for Neesle. But if we look at the shares, which

0:03:53.800 --> 0:03:55.880
<v Speaker 5>have been doing quite well this morning, it looks like

0:03:56.160 --> 0:03:58.240
<v Speaker 5>the market is quite happy with the way things are

0:03:58.240 --> 0:03:58.880
<v Speaker 5>going so far.

0:04:00.160 --> 0:04:04.400
<v Speaker 2>The Stockmover's Report from Bloomberg Radio. Check back with us

0:04:04.400 --> 0:04:07.200
<v Speaker 2>throughout the day for the latest roundup of companies making

0:04:07.280 --> 0:04:10.880
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:04:11.120 --> 0:04:15.120
<v Speaker 2>Listen to Bloomberg Radio Live. Catch us on YouTube. Bloomberg

0:04:15.160 --> 0:04:18.240
<v Speaker 2>dot com and on Applecarplay and Android Auto with the

0:04:18.279 --> 0:04:19.640
<v Speaker 2>Bloomberg Business App.