1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,560 --> 00:00:18,079 Speaker 1: Well, let's take a look at some stocks on the 5 00:00:18,079 --> 00:00:20,439 Speaker 1: move today in Europe. I'm Stephen Carroll and I'm joined 6 00:00:20,440 --> 00:00:23,360 Speaker 1: by Bloomberg reporter Chloe Mele Chloit. Good morning and happy 7 00:00:23,400 --> 00:00:26,320 Speaker 1: new year. Let's start with a happy new year for Vestas, 8 00:00:26,560 --> 00:00:28,640 Speaker 1: their shares gaining this morning. What's behind us? 9 00:00:28,880 --> 00:00:31,640 Speaker 3: Yeah, absolutely, it seems that the prospects for that wind 10 00:00:31,680 --> 00:00:34,680 Speaker 3: industry are improving. Invests will be a big part of that. 11 00:00:34,800 --> 00:00:38,080 Speaker 3: So JP Morgan analysts have said that the company had 12 00:00:38,120 --> 00:00:42,120 Speaker 3: probably a lot more orders for wind turbines than expected 13 00:00:42,120 --> 00:00:45,159 Speaker 3: in the fourth quarter. So that includes both on and 14 00:00:45,200 --> 00:00:48,720 Speaker 3: offshore projects. It also includes a variety of markets, and 15 00:00:49,080 --> 00:00:52,159 Speaker 3: it would make it the second consecutive quarter of demand 16 00:00:52,200 --> 00:00:55,160 Speaker 3: coming in above expectations for Vestas. So it seems that 17 00:00:55,400 --> 00:00:58,480 Speaker 3: there is good momentum going there, and it's definitely good 18 00:00:58,480 --> 00:01:01,000 Speaker 3: news for an industry that's had of really really tough 19 00:01:01,400 --> 00:01:04,520 Speaker 3: twenty twenty five. We of course, remember in particular the 20 00:01:04,560 --> 00:01:08,040 Speaker 3: issues that Alsted had over the summer Alsted also has 21 00:01:08,120 --> 00:01:10,920 Speaker 3: news of its own today. It filed a legal challenge 22 00:01:11,200 --> 00:01:14,120 Speaker 3: against the move by the Trump administration to suspend the 23 00:01:14,200 --> 00:01:16,880 Speaker 3: lease of a wind project. So that's something else as 24 00:01:16,880 --> 00:01:20,000 Speaker 3: well within that wind industry to be keeping an eye on. 25 00:01:20,120 --> 00:01:22,959 Speaker 3: But it seems that there is of course still tensions 26 00:01:23,000 --> 00:01:26,200 Speaker 3: and that the issues with the Trump administration aren't likely 27 00:01:26,400 --> 00:01:29,080 Speaker 3: to kind of go away easily. But the analyst at 28 00:01:29,120 --> 00:01:32,280 Speaker 3: JP Morgan talking about as best as specifically, are saying 29 00:01:32,319 --> 00:01:36,440 Speaker 3: that the fundamentals for the industry are definitely improving and 30 00:01:36,480 --> 00:01:39,440 Speaker 3: definitely getting better, and so we are seeing those shares 31 00:01:39,720 --> 00:01:41,240 Speaker 3: gaining this morning for vests. 32 00:01:41,720 --> 00:01:44,039 Speaker 1: Is that one that we're watching this morning. Now, we've 33 00:01:44,080 --> 00:01:47,200 Speaker 1: been talking about how AI is driving markets on this 34 00:01:47,440 --> 00:01:49,680 Speaker 1: first trading day of the year, and you've picked out 35 00:01:49,680 --> 00:01:52,080 Speaker 1: a Swedish company that's seeing a big gain in its 36 00:01:52,160 --> 00:01:56,680 Speaker 1: share price and they provide ventilation and cooling for data centers. 37 00:01:57,280 --> 00:01:59,800 Speaker 3: Yeah, well, instead like that doesn't sound super interesting, but 38 00:01:59,840 --> 00:02:02,880 Speaker 3: it is a very important kind of sector for the 39 00:02:02,920 --> 00:02:05,960 Speaker 3: AI rush, So muntas as you say, it provides kind 40 00:02:05,960 --> 00:02:09,760 Speaker 3: of calling technologies, heating technologies, et cetera. And the prospects 41 00:02:09,760 --> 00:02:13,280 Speaker 3: are looking pretty bright because of their exposure to data centers. 42 00:02:13,320 --> 00:02:16,360 Speaker 3: So they received a really big order for data center 43 00:02:16,360 --> 00:02:19,520 Speaker 3: equipment from a company in the US, and it's also 44 00:02:19,560 --> 00:02:21,600 Speaker 3: over quite a long period of time. We have a 45 00:02:21,639 --> 00:02:24,640 Speaker 3: delivery scheduled from the fourth quarter of this year all 46 00:02:24,680 --> 00:02:27,960 Speaker 3: the way up to twenty twenty eight. And so Muntas 47 00:02:28,040 --> 00:02:30,960 Speaker 3: is the kind of slightly less well known company that's 48 00:02:31,000 --> 00:02:34,520 Speaker 3: really benefited from that boom in investments in AIA because 49 00:02:34,560 --> 00:02:37,640 Speaker 3: it provides that kind of really critical equipment and tools. 50 00:02:38,360 --> 00:02:40,840 Speaker 3: And we have other companies, of course, like log Orange 51 00:02:40,919 --> 00:02:43,320 Speaker 3: nider Electric, which are maybe a little bit more well known, 52 00:02:43,520 --> 00:02:47,239 Speaker 3: that provide a very similar kind of technologies and tools, 53 00:02:47,280 --> 00:02:50,760 Speaker 3: and data centers really cannot function without those things. So 54 00:02:51,000 --> 00:02:52,880 Speaker 3: it's really good business at the moment to be this 55 00:02:53,000 --> 00:02:55,840 Speaker 3: kind of behind the scene company of the AI rush. 56 00:02:56,000 --> 00:02:59,440 Speaker 3: And we've seen Mantas shares gain quite a lot recently 57 00:02:59,480 --> 00:03:02,280 Speaker 3: because of those recent wins in orders. 58 00:03:03,000 --> 00:03:05,920 Speaker 1: Okay, and we're looking to a British American tobacco this morning, 59 00:03:05,960 --> 00:03:09,200 Speaker 1: couldn't you excise duty on cigarettes? Effects there fortunes this year? 60 00:03:10,040 --> 00:03:12,160 Speaker 3: Yeah, bat has taken quite a bit of a hit 61 00:03:12,200 --> 00:03:14,720 Speaker 3: this morning because of its stake in ITC, which is 62 00:03:14,760 --> 00:03:18,280 Speaker 3: itself taking a big hit. So ITC is India's largest 63 00:03:18,320 --> 00:03:21,880 Speaker 3: maker of cigarettes, and the shares plunged quite impressively, quite 64 00:03:21,880 --> 00:03:25,160 Speaker 3: massively after the government decided to impose a new duty 65 00:03:25,200 --> 00:03:28,080 Speaker 3: on cigarettes, and that new duty would result in a 66 00:03:28,120 --> 00:03:31,239 Speaker 3: tax hike of over thirty percent. And the reason why 67 00:03:31,280 --> 00:03:34,360 Speaker 3: the market reaction was so harsh is because that tax 68 00:03:34,400 --> 00:03:37,600 Speaker 3: burden is much higher than anticipated and ITC is very 69 00:03:37,680 --> 00:03:40,400 Speaker 3: vulnerable to it. It gets over forty percent of its 70 00:03:40,440 --> 00:03:43,280 Speaker 3: revenue from cigarettes, so this new tax wouldn't mean a 71 00:03:43,360 --> 00:03:46,400 Speaker 3: really big hit on volumes, big on earnings, of course, 72 00:03:46,960 --> 00:03:49,200 Speaker 3: and it could lead lead to highkend prices of at 73 00:03:49,320 --> 00:03:52,240 Speaker 3: least fifteen percent to kind of pass on that impact 74 00:03:52,280 --> 00:03:57,600 Speaker 3: to consumers. And because BAT is ITC's largest shareholder's shareholder, 75 00:03:57,640 --> 00:04:00,440 Speaker 3: we've got a stake of about twenty three percent, it 76 00:04:00,520 --> 00:04:04,280 Speaker 3: means that Beat is quite exposed to the fortunes of ITC, 77 00:04:04,360 --> 00:04:07,360 Speaker 3: and we're seeing that reflected in some weakness in those shares. 78 00:04:07,400 --> 00:04:12,800 Speaker 2: This morning the Stockmovers Report from Bloomberg Radio. 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