Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's look at some of the stocks on the move
Speaker 3: today here in Europe. IM Caroline Hepgar with Stephen Carroll,
Speaker 3: and we're joined by Bloomberg with Portia claim Malay.
Speaker 1: Good morning.
Speaker 3: Wow, it has been so hectic with so many European
Speaker 3: companies reporting. Let's start with st micro Electronics shares really plunging.
Speaker 1: Yeah.
Speaker 4: Absolutely, This is really a story of a tech company
Speaker 4: taking a massive hit for not meeting those sky high expectations.
Speaker 1: And that's quite a familiar story at these days.
Speaker 4: So st Micro's print this morning was actually quite positive.
Speaker 1: It expects data center.
Speaker 4: Revenue to be above one billion dollars for twenty twenty six,
Speaker 4: which is more than what it had expected. It also
Speaker 4: said that the data center revenues will be above, well
Speaker 4: above two billion in twenty twenty seven. So there's very
Speaker 4: strong momentum in that part of the business. But what
Speaker 4: investors seem to be focusing on more this morning is
Speaker 4: that the forecast for the third quarter is actually slightly
Speaker 4: lower than expected. And so given how strong this data
Speaker 4: center business is, the weakness can probably be attributed to
Speaker 4: weakness in other end markets, and namely the automotive and
Speaker 4: market and then the consumer electronics and market as well,
Speaker 4: where it seems that maybe recovery is taking a little
Speaker 4: bit longer than expected. So this is not a story
Speaker 4: about a slow down in AI demand, but more one
Speaker 4: about one of those very elevated expectations and what happens
Speaker 4: to kind of those chip makers when they disappoint on
Speaker 4: some of those metrics. But it's very much the weakness
Speaker 4: in other end markets rather than AI driving down those shares.
Speaker 1: For this you micro this morning well, speaking of elevation,
Speaker 1: DOSO Aviation share is taking off.
Speaker 4: Yeah, absolutely, it's a good day for French defense overall.
Speaker 4: So Deser Aviation, which makes both private jets and then
Speaker 4: also fighter jets, came out with very strong numbers last
Speaker 4: night with revenue way above what analysts had expected and
Speaker 4: then very strong deliveries of its fighter jets as well.
Speaker 1: That was also a head of estimates.
Speaker 4: And in addition to that we had this morning we
Speaker 4: had Talis, another big French defense company, reporting a huge,
Speaker 4: huge search in orders and then very strong at cash
Speaker 4: flow as well, with performance being driven in particular by
Speaker 4: the defense in aerospace divisions, and some analysts noted that
Speaker 4: there was very very strong demand from a Middle Eastern customers.
Speaker 4: So this is really an example of this huge rise
Speaker 4: in military spending really boosting those defense companies. Of course,
Speaker 4: we know that Nature allies have committed to at least
Speaker 4: fifty billion dollars in defense industry deals. Several governments across
Speaker 4: Europe have already raised budgets for armed forces and we
Speaker 4: can see some of that momentum starting to translate into
Speaker 4: orders and into a very upb outlook as well.
Speaker 1: Okay, so that on.
Speaker 3: So what about Nesle shares sinking there?
Speaker 4: Yeah, so in Esle's volume growth was seen us quite disappointing.
Speaker 4: So that might not vote very well for other consumer
Speaker 4: goods companies like Unileva or Workit actually reporting next week.
Speaker 4: Given that the inflation from the Iran war means you know,
Speaker 4: weaker consumer confidence, it means higher input costs as well,
Speaker 4: so there's some of that impact they're on volumes for
Speaker 4: those companies, and this for Neesle is seen as a
Speaker 4: bit of a setback for the new CEO, although he
Speaker 4: is making progress on his strategy of kind of shedding
Speaker 4: those underperforming units.
Speaker 1: Today in Nesle also.
Speaker 4: Announced the cell of half of its bottled water business
Speaker 4: for three billion euros to a private equity company. So
Speaker 4: this is part of this strategy of kind of refocusing
Speaker 4: on more core businesses, meaning coffee, pet care, nutrition, and snacks,
Speaker 4: and so some of these are actually doing really well.
Speaker 4: The snacks division did well, the coffee unit have very
Speaker 4: strong sales as well in over the first half. So
Speaker 4: the CEO will be really hoping that this more dreamlined
Speaker 4: a business model is going to be able to translate
Speaker 4: into a better performance. But in the meantime, we are
Speaker 4: definitely seeing that weakness this morning because of that week
Speaker 4: of volume growth.
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