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: Let's have a look at some of the stocks on
Speaker 3: the move today here in Europe. I'm Caroline Hepkun. I'm
Speaker 3: joined by Bloomberger reporter at Louis Moon Luiz. Good morning.
Speaker 3: Should we start with Hapag Lloyd This is the German
Speaker 3: shipping company in talks to buy an Israeli rival.
Speaker 1: Yes, in talks to buy a company called zim Integrated
Speaker 1: shopping at Shipping. Sorry so as you say, that israelly,
Speaker 1: but they're listed in the US. It would essentially combine
Speaker 1: to giants. Hapag is the fifth largest cargo company in
Speaker 1: the world. Zim Integrated is the ninth. So it follows,
Speaker 1: you know, months of talks that zim Integrated has been
Speaker 1: having with potential buyers resulted in this. It would be
Speaker 1: about US three point five billion dollars US dollar deal,
Speaker 1: so it's expected to close this week. As I say,
Speaker 1: I mean it's a big deal in the shipping space.
Speaker 1: ZIM would be delisted from the US shares of Hapag.
Speaker 1: In Germany, they are dropping slightly on the news. One,
Speaker 1: it's a big price too, there's potential regulatory hurdles to
Speaker 1: get through before this actually goes through. And then also
Speaker 1: ZIM Integrated Shipping's workers union in Israel has actually said
Speaker 1: that they're shutting down activities after the news came out,
Speaker 1: so management are in talks with that. So there's a
Speaker 1: bit of tension and a bit of friction surrounding the deal.
Speaker 1: So potentially that's also wehing on the share. So yeah,
Speaker 1: down slightly into the red fort for HAPAG in Germany.
Speaker 3: Yeah, interesting that the Israeli government sees ZIM also as
Speaker 3: a strategic asset, so they've got a golden share in
Speaker 3: the business as well. But yeah, that's a very interesting story. Meanwhile,
Speaker 3: VW is planning a cost cutting drive. We heard about
Speaker 3: that this morning. How investors taking it.
Speaker 1: Yees are up actually slightly on this news. So as
Speaker 1: you say, they're planning to cut costs that's by twenty
Speaker 1: percent by the end of twenty twenty eight. This is
Speaker 1: a report from a German business magazine that reported this
Speaker 1: this morning. They said that the CEO and CFO presented
Speaker 1: the plan to some managers in Berlin in mid January.
Speaker 1: It's not clear what areas of the business would be hit,
Speaker 1: but twenty percent is obviously quite quite a big cost
Speaker 1: cutting drive. The wider context is Volkswagen has been trying
Speaker 1: to figure out essentially how to fund its massive investment plans.
Speaker 1: There's been a slow down in demand from China, they've
Speaker 1: been grappling with tariffs. The US is quite a big
Speaker 1: market for them. There's also been lesson than expected for
Speaker 1: electric vehicles industrywide, so it's been grappling with that and
Speaker 1: has already cut some costs already. And if you look
Speaker 1: at their share price of the past year, it's really
Speaker 1: really volatile, really up and down as it's been dealing
Speaker 1: with all these issues. So this is the latest, the
Speaker 1: latest of their ways to try and cope with those issues. So, yeah,
Speaker 1: cutting costs by by twenty percent, but shares absolutely, as
Speaker 1: I say on the news, potentially being welcomed as a
Speaker 1: as a way forward.
Speaker 3: Yeah, okay, so that from VW. Meanwhile, the Health and
Speaker 3: Nutrition Business DSM, they've been yeah, talking this morning. What's
Speaker 3: the latest on their moods?
Speaker 1: Yeah, So this is a company they make things like well,
Speaker 1: they make a lot of the ingredients and chemicals for nutrition,
Speaker 1: beauty health companies and all of those, all of those companies,
Speaker 1: they've been downgraded to a hold from a buy by Berenberg.
Speaker 1: They had results last week and shares slumped I think
Speaker 1: about ten percent, the lowes since twenty twenty three. They
Speaker 1: held off giving an outlook, sales dropped, and Berenberg have
Speaker 1: come out this morning and downgraded. They're saying that that well,
Speaker 1: they're citing the reason being as softer US consumer confidence
Speaker 1: and headwinds, and they said that further cuts to consensus
Speaker 1: earnings are in their words, unavoidable. So quite a strong
Speaker 1: note from them, and shares down over three percent in
Speaker 1: Switzerland this morning. If you do look at their rend necessariatings,
Speaker 1: the most still have them down as a buy, about
Speaker 1: fifteen buys compared to five holes, two seals, and most
Speaker 1: are still quite positive. But this is quite quite a
Speaker 1: strong downgrade really from Berenberg.
Speaker 2: Yeah, DSM the Stock Movers Report from Bloomberg Radio. Check
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