1 00:00:02,520 --> 00:00:09,040 Speaker 1: Bloomberg Audio Studios podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,119 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,720 --> 00:00:21,320 Speaker 3: I'm Caroline Hepget alongside Tom McKenzie. We're joined now by 5 00:00:21,360 --> 00:00:24,040 Speaker 3: Bloomberg's Breaking News editor, Chlone Malay. 6 00:00:24,040 --> 00:00:25,240 Speaker 4: Good morning, Chloe. 7 00:00:25,440 --> 00:00:30,320 Speaker 3: So ABB shares have sawed this morning. I'm still of 8 00:00:30,400 --> 00:00:34,120 Speaker 3: tried to get used to their new phrase engineered to 9 00:00:34,200 --> 00:00:36,040 Speaker 3: outrun that came in last year. 10 00:00:36,080 --> 00:00:37,920 Speaker 4: Are they outrunning? Why? 11 00:00:38,680 --> 00:00:39,080 Speaker 2: Oh yeah? 12 00:00:39,120 --> 00:00:41,800 Speaker 1: So quite good news, very good news actually from ABB 13 00:00:42,000 --> 00:00:45,600 Speaker 1: this morning. It reported very strong order growth, actually record 14 00:00:45,720 --> 00:00:50,120 Speaker 1: auder intake in the second quarter. So ABB makes power 15 00:00:50,159 --> 00:00:53,120 Speaker 1: and automation tools for factories, and it said that demand 16 00:00:53,200 --> 00:00:56,600 Speaker 1: was very strong, very solid, especially in the US. So 17 00:00:56,640 --> 00:00:59,680 Speaker 1: if we look at the electrification unit in particular, that 18 00:00:59,800 --> 00:01:04,600 Speaker 1: was particularly robust, and that unit supplies power companies, and 19 00:01:04,959 --> 00:01:07,039 Speaker 1: that is solid because of the fact that the AI 20 00:01:07,120 --> 00:01:10,480 Speaker 1: boom is driving investment in data centers, which is in 21 00:01:10,520 --> 00:01:14,520 Speaker 1: turn driving investment in electrical grids, which is then benefiting ABB. 22 00:01:15,160 --> 00:01:18,720 Speaker 1: Investors reacted very positively to the news and going forward, 23 00:01:18,800 --> 00:01:21,760 Speaker 1: the CEO was very optimistic. He said that the company 24 00:01:21,840 --> 00:01:24,680 Speaker 1: was on the path towards a record year, and obviously 25 00:01:24,720 --> 00:01:27,000 Speaker 1: he did flag that, you know, that was despite some 26 00:01:27,120 --> 00:01:29,720 Speaker 1: uncertainties of course in the global environment. 27 00:01:29,880 --> 00:01:30,760 Speaker 4: That's a caveat that. 28 00:01:30,760 --> 00:01:33,280 Speaker 1: We're likely going to see a bit more for the 29 00:01:33,319 --> 00:01:37,199 Speaker 1: rest of this ending seasons from the CEOs so. 30 00:01:37,160 --> 00:01:41,680 Speaker 4: For ABEB to Francis Legment and there's some games coming through. 31 00:01:41,680 --> 00:01:43,080 Speaker 4: Here's what's sappening with this business. 32 00:01:43,200 --> 00:01:45,399 Speaker 1: Yeah, well, since we're talking about AI, let's talk about 33 00:01:45,600 --> 00:01:47,559 Speaker 1: kind of another aspect of it, which is where Lagran 34 00:01:47,680 --> 00:01:50,440 Speaker 1: fits into this. So companies that kind of provide the 35 00:01:50,440 --> 00:01:54,520 Speaker 1: cooling equipment, the server ACKs, the electrical equipment that I 36 00:01:54,680 --> 00:01:57,800 Speaker 1: used in data centers. Those companies are not always kind 37 00:01:57,840 --> 00:02:00,559 Speaker 1: of household names, but they are crucial for the broader 38 00:02:00,600 --> 00:02:03,360 Speaker 1: air industry. And one of them is Lacarmo French company, 39 00:02:03,840 --> 00:02:06,280 Speaker 1: and this morning it raised its four year target for 40 00:02:06,400 --> 00:02:09,720 Speaker 1: sales growth and that's because of that strong demand from 41 00:02:09,800 --> 00:02:13,799 Speaker 1: data centers. That also pushed the shares up for one 42 00:02:13,800 --> 00:02:15,799 Speaker 1: of its key piers. 43 00:02:15,480 --> 00:02:16,920 Speaker 4: Which is Schneider Electric. 44 00:02:17,280 --> 00:02:20,640 Speaker 1: They have both been talking about the opportunity that comes 45 00:02:20,680 --> 00:02:23,320 Speaker 1: with the AI rush and that's really helped them kind 46 00:02:23,320 --> 00:02:26,160 Speaker 1: of offset the weaker demand and their kind of other 47 00:02:26,240 --> 00:02:29,720 Speaker 1: key markets like the European residential market, for example, or 48 00:02:29,760 --> 00:02:31,080 Speaker 1: the US office market. 49 00:02:32,000 --> 00:02:35,600 Speaker 4: Okay, so that's on Lacart and ABB. 50 00:02:35,919 --> 00:02:40,120 Speaker 3: Nevatis has with released some sales figures, but they seem 51 00:02:40,200 --> 00:02:41,200 Speaker 3: quite disappointing. 52 00:02:41,560 --> 00:02:44,320 Speaker 1: Yeah, so it's quite an interesting story from Nevatas this morning, 53 00:02:44,360 --> 00:02:46,639 Speaker 1: with kind of both positive and more negative news. 54 00:02:46,680 --> 00:02:49,320 Speaker 4: Let's start with the positives. It raised its guidance for 55 00:02:49,360 --> 00:02:49,720 Speaker 4: the year. 56 00:02:50,160 --> 00:02:52,120 Speaker 1: That's due to kind of strong sales of its cancer 57 00:02:52,160 --> 00:02:55,280 Speaker 1: medicines in particular, and it also announced a new buyback 58 00:02:55,400 --> 00:02:57,959 Speaker 1: of as much as ten billion dollars to be completed 59 00:02:58,000 --> 00:02:59,200 Speaker 1: by twenty twenty seven. 60 00:02:59,440 --> 00:03:00,920 Speaker 4: But on the other hand, on the more kind of. 61 00:03:00,960 --> 00:03:04,799 Speaker 1: Negative side, the sales for its siasis drug called Coscentics 62 00:03:04,880 --> 00:03:08,480 Speaker 1: really disappointed, and generally some of its key drugs are 63 00:03:08,560 --> 00:03:12,680 Speaker 1: facing increasing competition from cheaper generic drugs that are coming 64 00:03:12,720 --> 00:03:17,040 Speaker 1: through this year, including one of its other key medicine medicines, 65 00:03:17,040 --> 00:03:20,720 Speaker 1: which is a hot medicine called Entresto. In addition to that, 66 00:03:20,760 --> 00:03:24,120 Speaker 1: the chief financial officer is also leaving after twenty two 67 00:03:24,200 --> 00:03:26,720 Speaker 1: years and almost ten years, oh no more than ten 68 00:03:26,800 --> 00:03:29,799 Speaker 1: years as the finance chief. Just to kind of give 69 00:03:29,800 --> 00:03:33,000 Speaker 1: a sense of how this person is thought about in 70 00:03:33,040 --> 00:03:35,880 Speaker 1: the industry. One analyst said that he was widely considered 71 00:03:35,880 --> 00:03:38,720 Speaker 1: to be the best CFO in the industry, so obviously 72 00:03:38,760 --> 00:03:43,840 Speaker 1: not great for nov artists to be losing this CFO. 73 00:03:44,680 --> 00:03:47,360 Speaker 1: Over All, the negative news did offset the positives, and 74 00:03:47,400 --> 00:03:50,680 Speaker 1: the shares have been a little bit pressured this morning. Now, 75 00:03:50,720 --> 00:03:53,200 Speaker 1: going forward, the key thing for novartists is going to 76 00:03:54,160 --> 00:03:56,320 Speaker 1: see We're going to see if the bet that it 77 00:03:56,320 --> 00:03:58,600 Speaker 1: has made on new medicines is really going to pay 78 00:03:58,600 --> 00:03:59,400 Speaker 1: off going forward. 79 00:04:00,640 --> 00:04:05,000 Speaker 2: The Stockmovers podcast from Bloomberg Radio. Check back with us 80 00:04:05,040 --> 00:04:07,960 Speaker 2: throughout the day for the latest roundup of companies making 81 00:04:08,000 --> 00:04:11,600 Speaker 2: news on Wall Street and for the latest market moving headlines. 82 00:04:11,760 --> 00:04:15,680 Speaker 2: Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg 83 00:04:15,720 --> 00:04:18,520 Speaker 2: dot com, and on Applecarplay and Android Auto with the 84 00:04:18,560 --> 00:04:19,919 Speaker 2: Bloomberg Business app.