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 1: Well, let's take a look at some stocks on the
Speaker 1: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 1: by Bloomberg reporter Chloe Mele Chloit. Good morning and happy
Speaker 1: new year. Let's start with a happy new year for Vestas,
Speaker 1: their shares gaining this morning. What's behind us?
Speaker 3: Yeah, absolutely, it seems that the prospects for that wind
Speaker 3: industry are improving. Invests will be a big part of that.
Speaker 3: So JP Morgan analysts have said that the company had
Speaker 3: probably a lot more orders for wind turbines than expected
Speaker 3: in the fourth quarter. So that includes both on and
Speaker 3: offshore projects. It also includes a variety of markets, and
Speaker 3: it would make it the second consecutive quarter of demand
Speaker 3: coming in above expectations for Vestas. So it seems that
Speaker 3: there is good momentum going there, and it's definitely good
Speaker 3: news for an industry that's had of really really tough
Speaker 3: twenty twenty five. We of course, remember in particular the
Speaker 3: issues that Alsted had over the summer Alsted also has
Speaker 3: news of its own today. It filed a legal challenge
Speaker 3: against the move by the Trump administration to suspend the
Speaker 3: lease of a wind project. So that's something else as
Speaker 3: well within that wind industry to be keeping an eye on.
Speaker 3: But it seems that there is of course still tensions
Speaker 3: and that the issues with the Trump administration aren't likely
Speaker 3: to kind of go away easily. But the analyst at
Speaker 3: JP Morgan talking about as best as specifically, are saying
Speaker 3: that the fundamentals for the industry are definitely improving and
Speaker 3: definitely getting better, and so we are seeing those shares
Speaker 3: gaining this morning for vests.
Speaker 1: Is that one that we're watching this morning. Now, we've
Speaker 1: been talking about how AI is driving markets on this
Speaker 1: first trading day of the year, and you've picked out
Speaker 1: a Swedish company that's seeing a big gain in its
Speaker 1: share price and they provide ventilation and cooling for data centers.
Speaker 3: Yeah, well, instead like that doesn't sound super interesting, but
Speaker 3: it is a very important kind of sector for the
Speaker 3: AI rush, So muntas as you say, it provides kind
Speaker 3: of calling technologies, heating technologies, et cetera. And the prospects
Speaker 3: are looking pretty bright because of their exposure to data centers.
Speaker 3: So they received a really big order for data center
Speaker 3: equipment from a company in the US, and it's also
Speaker 3: over quite a long period of time. We have a
Speaker 3: delivery scheduled from the fourth quarter of this year all
Speaker 3: the way up to twenty twenty eight. And so Muntas
Speaker 3: is the kind of slightly less well known company that's
Speaker 3: really benefited from that boom in investments in AIA because
Speaker 3: it provides that kind of really critical equipment and tools.
Speaker 3: And we have other companies, of course, like log Orange
Speaker 3: nider Electric, which are maybe a little bit more well known,
Speaker 3: that provide a very similar kind of technologies and tools,
Speaker 3: and data centers really cannot function without those things. So
Speaker 3: it's really good business at the moment to be this
Speaker 3: kind of behind the scene company of the AI rush.
Speaker 3: And we've seen Mantas shares gain quite a lot recently
Speaker 3: because of those recent wins in orders.
Speaker 1: Okay, and we're looking to a British American tobacco this morning,
Speaker 1: couldn't you excise duty on cigarettes? Effects there fortunes this year?
Speaker 3: Yeah, bat has taken quite a bit of a hit
Speaker 3: this morning because of its stake in ITC, which is
Speaker 3: itself taking a big hit. So ITC is India's largest
Speaker 3: maker of cigarettes, and the shares plunged quite impressively, quite
Speaker 3: massively after the government decided to impose a new duty
Speaker 3: on cigarettes, and that new duty would result in a
Speaker 3: tax hike of over thirty percent. And the reason why
Speaker 3: the market reaction was so harsh is because that tax
Speaker 3: burden is much higher than anticipated and ITC is very
Speaker 3: vulnerable to it. It gets over forty percent of its
Speaker 3: revenue from cigarettes, so this new tax wouldn't mean a
Speaker 3: really big hit on volumes, big on earnings, of course,
Speaker 3: and it could lead lead to highkend prices of at
Speaker 3: least fifteen percent to kind of pass on that impact
Speaker 3: to consumers. And because BAT is ITC's largest shareholder's shareholder,
Speaker 3: we've got a stake of about twenty three percent, it
Speaker 3: means that Beat is quite exposed to the fortunes of ITC,
Speaker 3: and we're seeing that reflected in some weakness in those shares.
Speaker 2: This morning the Stockmovers Report from Bloomberg Radio. Check back
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