WEBVTT - Vestas Gains, Munters Rises, BAT Down 

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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 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 1>by Bloomberg reporter Chloe Mele Chloit. Good morning and happy

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<v Speaker 1>new year. Let's start with a happy new year for Vestas,

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<v Speaker 1>their shares gaining this morning. What's behind us?

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<v Speaker 3>Yeah, absolutely, it seems that the prospects for that wind

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<v Speaker 3>industry are improving. Invests will be a big part of that.

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<v Speaker 3>So JP Morgan analysts have said that the company had

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<v Speaker 3>probably a lot more orders for wind turbines than expected

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<v Speaker 3>in the fourth quarter. So that includes both on and

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<v Speaker 3>offshore projects. It also includes a variety of markets, and

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<v Speaker 3>it would make it the second consecutive quarter of demand

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<v Speaker 3>coming in above expectations for Vestas. So it seems that

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<v Speaker 3>there is good momentum going there, and it's definitely good

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<v Speaker 3>news for an industry that's had of really really tough

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<v Speaker 3>twenty twenty five. We of course, remember in particular the

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<v Speaker 3>issues that Alsted had over the summer Alsted also has

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<v Speaker 3>news of its own today. It filed a legal challenge

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<v Speaker 3>against the move by the Trump administration to suspend the

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<v Speaker 3>lease of a wind project. So that's something else as

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<v Speaker 3>well within that wind industry to be keeping an eye on.

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<v Speaker 3>But it seems that there is of course still tensions

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<v Speaker 3>and that the issues with the Trump administration aren't likely

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<v Speaker 3>to kind of go away easily. But the analyst at

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<v Speaker 3>JP Morgan talking about as best as specifically, are saying

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<v Speaker 3>that the fundamentals for the industry are definitely improving and

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<v Speaker 3>definitely getting better, and so we are seeing those shares

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<v Speaker 3>gaining this morning for vests.

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<v Speaker 1>Is that one that we're watching this morning. Now, we've

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<v Speaker 1>been talking about how AI is driving markets on this

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<v Speaker 1>first trading day of the year, and you've picked out

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<v Speaker 1>a Swedish company that's seeing a big gain in its

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<v Speaker 1>share price and they provide ventilation and cooling for data centers.

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<v Speaker 3>Yeah, well, instead like that doesn't sound super interesting, but

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<v Speaker 3>it is a very important kind of sector for the

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<v Speaker 3>AI rush, So muntas as you say, it provides kind

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<v Speaker 3>of calling technologies, heating technologies, et cetera. And the prospects

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<v Speaker 3>are looking pretty bright because of their exposure to data centers.

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<v Speaker 3>So they received a really big order for data center

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<v Speaker 3>equipment from a company in the US, and it's also

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<v Speaker 3>over quite a long period of time. We have a

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<v Speaker 3>delivery scheduled from the fourth quarter of this year all

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<v Speaker 3>the way up to twenty twenty eight. And so Muntas

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<v Speaker 3>is the kind of slightly less well known company that's

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<v Speaker 3>really benefited from that boom in investments in AIA because

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<v Speaker 3>it provides that kind of really critical equipment and tools.

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<v Speaker 3>And we have other companies, of course, like log Orange

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<v Speaker 3>nider Electric, which are maybe a little bit more well known,

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<v Speaker 3>that provide a very similar kind of technologies and tools,

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<v Speaker 3>and data centers really cannot function without those things. So

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<v Speaker 3>it's really good business at the moment to be this

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<v Speaker 3>kind of behind the scene company of the AI rush.

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<v Speaker 3>And we've seen Mantas shares gain quite a lot recently

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<v Speaker 3>because of those recent wins in orders.

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<v Speaker 1>Okay, and we're looking to a British American tobacco this morning,

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<v Speaker 1>couldn't you excise duty on cigarettes? Effects there fortunes this year?

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<v Speaker 3>Yeah, bat has taken quite a bit of a hit

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<v Speaker 3>this morning because of its stake in ITC, which is

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<v Speaker 3>itself taking a big hit. So ITC is India's largest

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<v Speaker 3>maker of cigarettes, and the shares plunged quite impressively, quite

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<v Speaker 3>massively after the government decided to impose a new duty

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<v Speaker 3>on cigarettes, and that new duty would result in a

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<v Speaker 3>tax hike of over thirty percent. And the reason why

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<v Speaker 3>the market reaction was so harsh is because that tax

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<v Speaker 3>burden is much higher than anticipated and ITC is very

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<v Speaker 3>vulnerable to it. It gets over forty percent of its

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<v Speaker 3>revenue from cigarettes, so this new tax wouldn't mean a

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<v Speaker 3>really big hit on volumes, big on earnings, of course,

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<v Speaker 3>and it could lead lead to highkend prices of at

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<v Speaker 3>least fifteen percent to kind of pass on that impact

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<v Speaker 3>to consumers. And because BAT is ITC's largest shareholder's shareholder,

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<v Speaker 3>we've got a stake of about twenty three percent, it

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<v Speaker 3>means that Beat is quite exposed to the fortunes of ITC,

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<v Speaker 3>and we're seeing that reflected in some weakness in those shares.

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<v Speaker 2>This morning the Stockmovers Report from Bloomberg Radio. Check back

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