WEBVTT -  ABB Soars, Legrand Rises, Novartis Down  

0:00:02.520 --> 0:00:09.040
<v Speaker 1>Bloomberg Audio Studios podcasts, radio news, The.

0:00:08.880 --> 0:00:13.119
<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

0:00:13.200 --> 0:00:16.480
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:17.720 --> 0:00:21.320
<v Speaker 3>I'm Caroline Hepget alongside Tom McKenzie. We're joined now by

0:00:21.360 --> 0:00:24.040
<v Speaker 3>Bloomberg's Breaking News editor, Chlone Malay.

0:00:24.040 --> 0:00:25.240
<v Speaker 4>Good morning, Chloe.

0:00:25.440 --> 0:00:30.320
<v Speaker 3>So ABB shares have sawed this morning. I'm still of

0:00:30.400 --> 0:00:34.120
<v Speaker 3>tried to get used to their new phrase engineered to

0:00:34.200 --> 0:00:36.040
<v Speaker 3>outrun that came in last year.

0:00:36.080 --> 0:00:37.920
<v Speaker 4>Are they outrunning? Why?

0:00:38.680 --> 0:00:39.080
<v Speaker 2>Oh yeah?

0:00:39.120 --> 0:00:41.800
<v Speaker 1>So quite good news, very good news actually from ABB

0:00:42.000 --> 0:00:45.600
<v Speaker 1>this morning. It reported very strong order growth, actually record

0:00:45.720 --> 0:00:50.120
<v Speaker 1>auder intake in the second quarter. So ABB makes power

0:00:50.159 --> 0:00:53.120
<v Speaker 1>and automation tools for factories, and it said that demand

0:00:53.200 --> 0:00:56.600
<v Speaker 1>was very strong, very solid, especially in the US. So

0:00:56.640 --> 0:00:59.680
<v Speaker 1>if we look at the electrification unit in particular, that

0:00:59.800 --> 0:01:04.600
<v Speaker 1>was particularly robust, and that unit supplies power companies, and

0:01:04.959 --> 0:01:07.039
<v Speaker 1>that is solid because of the fact that the AI

0:01:07.120 --> 0:01:10.480
<v Speaker 1>boom is driving investment in data centers, which is in

0:01:10.520 --> 0:01:14.520
<v Speaker 1>turn driving investment in electrical grids, which is then benefiting ABB.

0:01:15.160 --> 0:01:18.720
<v Speaker 1>Investors reacted very positively to the news and going forward,

0:01:18.800 --> 0:01:21.760
<v Speaker 1>the CEO was very optimistic. He said that the company

0:01:21.840 --> 0:01:24.680
<v Speaker 1>was on the path towards a record year, and obviously

0:01:24.720 --> 0:01:27.000
<v Speaker 1>he did flag that, you know, that was despite some

0:01:27.120 --> 0:01:29.720
<v Speaker 1>uncertainties of course in the global environment.

0:01:29.880 --> 0:01:30.760
<v Speaker 4>That's a caveat that.

0:01:30.760 --> 0:01:33.280
<v Speaker 1>We're likely going to see a bit more for the

0:01:33.319 --> 0:01:37.199
<v Speaker 1>rest of this ending seasons from the CEOs so.

0:01:37.160 --> 0:01:41.680
<v Speaker 4>For ABEB to Francis Legment and there's some games coming through.

0:01:41.680 --> 0:01:43.080
<v Speaker 4>Here's what's sappening with this business.

0:01:43.200 --> 0:01:45.399
<v Speaker 1>Yeah, well, since we're talking about AI, let's talk about

0:01:45.600 --> 0:01:47.559
<v Speaker 1>kind of another aspect of it, which is where Lagran

0:01:47.680 --> 0:01:50.440
<v Speaker 1>fits into this. So companies that kind of provide the

0:01:50.440 --> 0:01:54.520
<v Speaker 1>cooling equipment, the server ACKs, the electrical equipment that I

0:01:54.680 --> 0:01:57.800
<v Speaker 1>used in data centers. Those companies are not always kind

0:01:57.840 --> 0:02:00.559
<v Speaker 1>of household names, but they are crucial for the broader

0:02:00.600 --> 0:02:03.360
<v Speaker 1>air industry. And one of them is Lacarmo French company,

0:02:03.840 --> 0:02:06.280
<v Speaker 1>and this morning it raised its four year target for

0:02:06.400 --> 0:02:09.720
<v Speaker 1>sales growth and that's because of that strong demand from

0:02:09.800 --> 0:02:13.799
<v Speaker 1>data centers. That also pushed the shares up for one

0:02:13.800 --> 0:02:15.799
<v Speaker 1>of its key piers.

0:02:15.480 --> 0:02:16.920
<v Speaker 4>Which is Schneider Electric.

0:02:17.280 --> 0:02:20.640
<v Speaker 1>They have both been talking about the opportunity that comes

0:02:20.680 --> 0:02:23.320
<v Speaker 1>with the AI rush and that's really helped them kind

0:02:23.320 --> 0:02:26.160
<v Speaker 1>of offset the weaker demand and their kind of other

0:02:26.240 --> 0:02:29.720
<v Speaker 1>key markets like the European residential market, for example, or

0:02:29.760 --> 0:02:31.080
<v Speaker 1>the US office market.

0:02:32.000 --> 0:02:35.600
<v Speaker 4>Okay, so that's on Lacart and ABB.

0:02:35.919 --> 0:02:40.120
<v Speaker 3>Nevatis has with released some sales figures, but they seem

0:02:40.200 --> 0:02:41.200
<v Speaker 3>quite disappointing.

0:02:41.560 --> 0:02:44.320
<v Speaker 1>Yeah, so it's quite an interesting story from Nevatas this morning,

0:02:44.360 --> 0:02:46.639
<v Speaker 1>with kind of both positive and more negative news.

0:02:46.680 --> 0:02:49.320
<v Speaker 4>Let's start with the positives. It raised its guidance for

0:02:49.360 --> 0:02:49.720
<v Speaker 4>the year.

0:02:50.160 --> 0:02:52.120
<v Speaker 1>That's due to kind of strong sales of its cancer

0:02:52.160 --> 0:02:55.280
<v Speaker 1>medicines in particular, and it also announced a new buyback

0:02:55.400 --> 0:02:57.959
<v Speaker 1>of as much as ten billion dollars to be completed

0:02:58.000 --> 0:02:59.200
<v Speaker 1>by twenty twenty seven.

0:02:59.440 --> 0:03:00.920
<v Speaker 4>But on the other hand, on the more kind of.

0:03:00.960 --> 0:03:04.799
<v Speaker 1>Negative side, the sales for its siasis drug called Coscentics

0:03:04.880 --> 0:03:08.480
<v Speaker 1>really disappointed, and generally some of its key drugs are

0:03:08.560 --> 0:03:12.680
<v Speaker 1>facing increasing competition from cheaper generic drugs that are coming

0:03:12.720 --> 0:03:17.040
<v Speaker 1>through this year, including one of its other key medicine medicines,

0:03:17.040 --> 0:03:20.720
<v Speaker 1>which is a hot medicine called Entresto. In addition to that,

0:03:20.760 --> 0:03:24.120
<v Speaker 1>the chief financial officer is also leaving after twenty two

0:03:24.200 --> 0:03:26.720
<v Speaker 1>years and almost ten years, oh no more than ten

0:03:26.800 --> 0:03:29.799
<v Speaker 1>years as the finance chief. Just to kind of give

0:03:29.800 --> 0:03:33.000
<v Speaker 1>a sense of how this person is thought about in

0:03:33.040 --> 0:03:35.880
<v Speaker 1>the industry. One analyst said that he was widely considered

0:03:35.880 --> 0:03:38.720
<v Speaker 1>to be the best CFO in the industry, so obviously

0:03:38.760 --> 0:03:43.840
<v Speaker 1>not great for nov artists to be losing this CFO.

0:03:44.680 --> 0:03:47.360
<v Speaker 1>Over All, the negative news did offset the positives, and

0:03:47.400 --> 0:03:50.680
<v Speaker 1>the shares have been a little bit pressured this morning. Now,

0:03:50.720 --> 0:03:53.200
<v Speaker 1>going forward, the key thing for novartists is going to

0:03:54.160 --> 0:03:56.320
<v Speaker 1>see We're going to see if the bet that it

0:03:56.320 --> 0:03:58.600
<v Speaker 1>has made on new medicines is really going to pay

0:03:58.600 --> 0:03:59.400
<v Speaker 1>off going forward.

0:04:00.640 --> 0:04:05.000
<v Speaker 2>The Stockmovers podcast from Bloomberg Radio. Check back with us

0:04:05.040 --> 0:04:07.960
<v Speaker 2>throughout the day for the latest roundup of companies making

0:04:08.000 --> 0:04:11.600
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:04:11.760 --> 0:04:15.680
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:15.720 --> 0:04:18.520
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:18.560 --> 0:04:19.919
<v Speaker 2>Bloomberg Business app.