1
00:00:02,520 --> 00:00:11,280
Speaker 1: Bloomberg Audio Studios podcasts, Radio News.

2
00:00:09,000 --> 00:00:14,080
Speaker 2: Stock Movers podcast. This is your roundup of companies Mickey

3
00:00:14,120 --> 00:00:17,599
Speaker 2: News on Wall Street and beyond harnessing the power of

4
00:00:17,680 --> 00:00:18,600
Speaker 2: Bloomberg data.

5
00:00:19,680 --> 00:00:21,480
Speaker 3: Let's take a look at some stocks on the move

6
00:00:21,520 --> 00:00:24,400
Speaker 3: today in Europe. We're joined by Bloomberg's Equities with Porta

7
00:00:24,480 --> 00:00:28,640
Speaker 3: Joe Eastern, Good morning, Joe. Step aside Novo because SAP,

8
00:00:28,800 --> 00:00:31,920
Speaker 3: SAP has this morning taken its crown as you it's

9
00:00:31,960 --> 00:00:34,160
Speaker 3: most valuable company. How and why?

10
00:00:34,760 --> 00:00:37,000
Speaker 1: Yes, So SAP's kind of come out of nowhere really

11
00:00:37,080 --> 00:00:41,880
Speaker 1: overtaking Novo. Nordis the weight loss drug maker, and kind

12
00:00:41,880 --> 00:00:43,960
Speaker 1: of over the past year or so, even a couple

13
00:00:44,000 --> 00:00:47,519
Speaker 1: of years, it's been a battle between Novo and Elvimates,

14
00:00:47,560 --> 00:00:51,120
Speaker 1: the luxury company. But SAP doing really well because a

15
00:00:51,159 --> 00:00:54,440
Speaker 1: lot of companies are continuing to move all their infrastructure

16
00:00:54,520 --> 00:00:57,680
Speaker 1: onto the cloud and that is SAP's big thing. So

17
00:00:57,880 --> 00:01:01,000
Speaker 1: SAP now worth around three hundred and four seen billion,

18
00:01:01,120 --> 00:01:04,800
Speaker 1: making it euro It's most valuable company, overtaking Novo, which

19
00:01:04,800 --> 00:01:07,840
Speaker 1: has been hit by some weaker than expected data on

20
00:01:07,880 --> 00:01:10,360
Speaker 1: some of their latest weight loss drugs. So it's kind

21
00:01:10,360 --> 00:01:13,039
Speaker 1: of a bit more of a story of Novo struggling.

22
00:01:13,040 --> 00:01:15,560
Speaker 1: Nova I think is down around forty percent since the

23
00:01:15,680 --> 00:01:19,280
Speaker 1: July highs, but then SAP coming in and lvmhor of

24
00:01:19,280 --> 00:01:23,039
Speaker 1: course hit by the continued luxury worries. But to put

25
00:01:23,040 --> 00:01:24,640
Speaker 1: it into context, I was looking at some of the

26
00:01:24,720 --> 00:01:27,280
Speaker 1: US valuations, is still very small. When you look at Apple,

27
00:01:27,319 --> 00:01:29,920
Speaker 1: I think worth around three trillion compared to the three

28
00:01:29,959 --> 00:01:33,040
Speaker 1: hundred billion of SAP. So all in context, but SAP

29
00:01:33,520 --> 00:01:35,160
Speaker 1: now the most valuable company in Europe.

30
00:01:35,240 --> 00:01:38,840
Speaker 2: Yeah, lofty valuation for a cloud confusing company. Joe, let's

31
00:01:38,840 --> 00:01:42,320
Speaker 2: go next to Elios has its sits on another European name.

32
00:01:42,400 --> 00:01:47,400
Speaker 1: The accident investor looking at RWE absolutely so our We.

33
00:01:47,520 --> 00:01:49,800
Speaker 1: I'm still trying to think of another cloud pun there,

34
00:01:49,840 --> 00:01:53,280
Speaker 1: but I'll try and focus on our WSRWE getting an

35
00:01:53,680 --> 00:01:55,360
Speaker 1: investment from Elliott.

36
00:01:55,400 --> 00:01:55,440
Speaker 3: So.

37
00:01:55,560 --> 00:01:58,800
Speaker 1: Elliott is this big US investor run by Paul Singer,

38
00:01:58,840 --> 00:02:01,880
Speaker 1: and he's been targeting a swathe of European companies over

39
00:02:01,880 --> 00:02:05,600
Speaker 1: the pasty, including most recently BP that he was the

40
00:02:05,600 --> 00:02:08,000
Speaker 1: guy that was pushing for them to return more cash

41
00:02:08,000 --> 00:02:12,080
Speaker 1: to shareholders. Elliott today saying that our we needs to

42
00:02:12,120 --> 00:02:14,720
Speaker 1: do the same thing and hand more money back via

43
00:02:14,760 --> 00:02:18,080
Speaker 1: buybacks and dividends. They say, they like the way that

44
00:02:18,160 --> 00:02:20,800
Speaker 1: our W has been cutting costs, but more of that

45
00:02:20,880 --> 00:02:23,760
Speaker 1: money should then be fuddled to shareholders, and therefore we're

46
00:02:23,760 --> 00:02:25,839
Speaker 1: getting a bit of a boost on our W stock today.

47
00:02:25,880 --> 00:02:29,280
Speaker 1: It was up around five percent at the opening Germany. Now,

48
00:02:29,639 --> 00:02:33,040
Speaker 1: the thing is that Bloomberg recently did a little study

49
00:02:33,040 --> 00:02:34,840
Speaker 1: on this and actually showed that it is in fact,

50
00:02:35,200 --> 00:02:38,800
Speaker 1: really just the fact of them taking the stake is

51
00:02:38,880 --> 00:02:41,840
Speaker 1: tends to what boost the stock on the first day.

52
00:02:41,880 --> 00:02:45,080
Speaker 1: Around eighty companies Elliot's taking a stake in all of

53
00:02:45,120 --> 00:02:47,280
Speaker 1: them tend to rise in the first few days of training,

54
00:02:47,320 --> 00:02:48,680
Speaker 1: and that's exactly what we're seeing today.

55
00:02:49,120 --> 00:02:53,880
Speaker 3: Yeah, maybe hopes of better returns for investors or whatever

56
00:02:53,960 --> 00:02:56,840
Speaker 3: it may be that's fueling that. Look. After some very

57
00:02:56,880 --> 00:03:00,640
Speaker 3: big gains in defense stocks across the ball in Europe,

58
00:03:00,760 --> 00:03:04,800
Speaker 3: UBS says that some but not all companies in the

59
00:03:04,840 --> 00:03:06,679
Speaker 3: sector have further room to run.

60
00:03:06,720 --> 00:03:10,360
Speaker 1: What are they saying, Yeah, so UBS changing their recommendations

61
00:03:10,560 --> 00:03:13,400
Speaker 1: on the key stocks in Europe. So they've downgraded Leonardo,

62
00:03:13,480 --> 00:03:18,400
Speaker 1: the Italian maker of engines for fighter jets and tanks

63
00:03:18,400 --> 00:03:20,919
Speaker 1: and that kind of thing. But they actually like sab

64
00:03:21,160 --> 00:03:26,040
Speaker 1: Over in Stockholm, and also Thalez in France, upgrading both

65
00:03:26,080 --> 00:03:29,600
Speaker 1: of those to buy, seeing significant earnings growth and really

66
00:03:29,680 --> 00:03:33,600
Speaker 1: just interesting given this sector has already ridden seventy percent

67
00:03:33,680 --> 00:03:36,080
Speaker 1: year today is trebled in value in terms of a

68
00:03:36,120 --> 00:03:38,640
Speaker 1: sector basis over the past couple of years. So it's

69
00:03:38,680 --> 00:03:43,080
Speaker 1: really quite stop striking that UBS continues to see stocks

70
00:03:43,080 --> 00:03:45,680
Speaker 1: that have more upsides, so they upgrade those two and

71
00:03:45,720 --> 00:03:47,960
Speaker 1: they were among the best performers in Europe today.

72
00:03:48,320 --> 00:03:50,840
Speaker 3: Yeah, very interesting one to watch. Did he completely cloud

73
00:03:50,880 --> 00:03:51,760
Speaker 3: Ponds in the meantime?

74
00:03:52,760 --> 00:03:57,480
Speaker 1: No, for you, My head's in the clouds. I thinks

75
00:03:57,560 --> 00:04:00,440
Speaker 1: morning got there eventually. Now you could do it scraping

76
00:04:00,480 --> 00:04:01,400
Speaker 1: the barrel a little bit.

77
00:04:02,280 --> 00:04:04,560
Speaker 2: All record you, Supporter Joeyson, Thank you very much for

78
00:04:04,640 --> 00:04:10,120
Speaker 2: joining us the Stock Movers podcast from Bloomberg Radio. Check

79
00:04:10,160 --> 00:04:12,680
Speaker 2: back with us throughout the day for the latest roundup

80
00:04:12,720 --> 00:04:15,560
Speaker 2: of companies making news on Wall Street and for the

81
00:04:15,640 --> 00:04:20,040
Speaker 2: latest market moving headlines. Listen to Bloomberg Radio Live, catch

82
00:04:20,120 --> 00:04:23,200
Speaker 2: us on YouTube, Bloomberg dot com, and on Applecarplay and

83
00:04:23,200 --> 00:04:25,640
Speaker 2: Android Auto with the Bloomberg Business app.