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 3: Now, let's take a look at some of the stocks
Speaker 3: on the move today in Europe. PM Lazy burdened with
Speaker 3: Stephen Carroll and were joined by Bloomberg reporter Chloe Melee. Chloe,
Speaker 3: I want to start with SAP. This seems to be
Speaker 3: the standout share in Europe this morning of six point
Speaker 3: four percent. Why are investors reacting this way to the results?
Speaker 1: Yeah, it's quite quite positive earnings from SAP. So the
Speaker 1: cloud revenue came in stronger than expected, and a big
Speaker 1: reason for that is that SAP is essentially ending the
Speaker 1: support for the older software and next year, which is
Speaker 1: meant that the migration of customers to the cloud instead
Speaker 1: has been accelerating as a result, and so there's better
Speaker 1: cloud sales have really reassured investors that have been very
Speaker 1: worried recently about this potential AI disruption and the AI
Speaker 1: threat on SAP's businessiness. It's also quite reassuring given that
Speaker 1: there had been also recent concerns in addition to those
Speaker 1: AI concerns about customers potentially delaying projects because of this
Speaker 1: geopolitical uncertainty of course, so overall this points to a
Speaker 1: much more resilient a picture for SAP. One analyst in particular,
Speaker 1: I said that cloud growth was a really good sign,
Speaker 1: but that SAP still has a lot of catching up
Speaker 1: to do on AI. It's been really trying to invest
Speaker 1: in its own AI tools, but customers have questioned the
Speaker 1: value and the quality of those, so that's really going
Speaker 1: to be what SAP needs to work on to sort
Speaker 1: of sustain that enthusiasm around this cloud business.
Speaker 2: Okay, well, from the cloud to cars. Volkswagen has come
Speaker 2: out with a new numbers this morning and the outlooks
Speaker 2: not great.
Speaker 1: No, it's not so cut a sales outlook this morning
Speaker 1: because of the persistent weakness in the Chinese market. So
Speaker 1: there's a lot of competition that Volkswagen and other European
Speaker 1: manufacturers are facing from those local Chinese car makers in China,
Speaker 1: but then also in Europe because those Chinese car makers
Speaker 1: are also expanding in that European market. So the CEO
Speaker 1: of Volksbagen is currently under a lot of pressure to
Speaker 1: try and streamline that business. There's a big restructuring plan
Speaker 1: that we've been talking about over the last few weeks,
Speaker 1: which includes job cuts, changes to the model lineup, and
Speaker 1: then also potential factory closures. The question, of course now
Speaker 1: is when those efforts might start to pay off and
Speaker 1: if there'll be really enough to turn around the business.
Speaker 1: So the shares are down this morning, but actually not massively.
Speaker 1: Perhaps some of that weakness was already appriced in ahead
Speaker 1: of the earnings next week. We have so many earnings
Speaker 1: from the car makers. We've got a BMW, Mercedes, Porschees,
Speaker 1: the Lances, all of this company, so that will give
Speaker 1: us a much clearer, more complete picture of that weakness
Speaker 1: in China and in the impact on the industry.
Speaker 3: And just finally Coree. Why shares down eight point six
Speaker 3: percent as things stand tell us more?
Speaker 1: Yeah, So that is because the US banking regulator has
Speaker 1: rejected wiser application to become a national trust bank. So
Speaker 1: that's a big setback for Wise because the company strategy
Speaker 1: has been really hinging on this expansion in the US market.
Speaker 1: The main concern that the regulator mentioned was the anti
Speaker 1: money laundering compliance program from Wise. If we remember we
Speaker 1: had news earlier this year about wis being under investigation
Speaker 1: in Europe because of some accounts allegedly being used for
Speaker 1: money laundering. And then the US Banking Regulator also cited
Speaker 1: another case, a US specific case, where Wise had to
Speaker 1: pay a four point two million dollar penalty and correct
Speaker 1: some aspects of its anti money laundering protections in the US.
Speaker 1: So this is quite the setback. Of course, it doesn't
Speaker 1: mean that Wise cannot apply again. It will apply again.
Speaker 1: It said that it will, but of course there might
Speaker 1: be some delay there, and they might delay this strategy
Speaker 1: of really expanding in the US market.
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