Speaker 1: Bloomberg Audio Studios podcasts, radio news, The.
Speaker 2: Stock Movers podcast, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: I'm Caroline Hepget alongside Tom McKenzie. We're joined now by
Speaker 3: Bloomberg's Breaking News editor, Chlone Malay.
Speaker 4: Good morning, Chloe.
Speaker 3: So ABB shares have sawed this morning. I'm still of
Speaker 3: tried to get used to their new phrase engineered to
Speaker 3: outrun that came in last year.
Speaker 4: Are they outrunning? Why?
Speaker 2: Oh yeah?
Speaker 1: So quite good news, very good news actually from ABB
Speaker 1: this morning. It reported very strong order growth, actually record
Speaker 1: auder intake in the second quarter. So ABB makes power
Speaker 1: and automation tools for factories, and it said that demand
Speaker 1: was very strong, very solid, especially in the US. So
Speaker 1: if we look at the electrification unit in particular, that
Speaker 1: was particularly robust, and that unit supplies power companies, and
Speaker 1: that is solid because of the fact that the AI
Speaker 1: boom is driving investment in data centers, which is in
Speaker 1: turn driving investment in electrical grids, which is then benefiting ABB.
Speaker 1: Investors reacted very positively to the news and going forward,
Speaker 1: the CEO was very optimistic. He said that the company
Speaker 1: was on the path towards a record year, and obviously
Speaker 1: he did flag that, you know, that was despite some
Speaker 1: uncertainties of course in the global environment.
Speaker 4: That's a caveat that.
Speaker 1: We're likely going to see a bit more for the
Speaker 1: rest of this ending seasons from the CEOs so.
Speaker 4: For ABEB to Francis Legment and there's some games coming through.
Speaker 4: Here's what's sappening with this business.
Speaker 1: Yeah, well, since we're talking about AI, let's talk about
Speaker 1: kind of another aspect of it, which is where Lagran
Speaker 1: fits into this. So companies that kind of provide the
Speaker 1: cooling equipment, the server ACKs, the electrical equipment that I
Speaker 1: used in data centers. Those companies are not always kind
Speaker 1: of household names, but they are crucial for the broader
Speaker 1: air industry. And one of them is Lacarmo French company,
Speaker 1: and this morning it raised its four year target for
Speaker 1: sales growth and that's because of that strong demand from
Speaker 1: data centers. That also pushed the shares up for one
Speaker 1: of its key piers.
Speaker 4: Which is Schneider Electric.
Speaker 1: They have both been talking about the opportunity that comes
Speaker 1: with the AI rush and that's really helped them kind
Speaker 1: of offset the weaker demand and their kind of other
Speaker 1: key markets like the European residential market, for example, or
Speaker 1: the US office market.
Speaker 4: Okay, so that's on Lacart and ABB.
Speaker 3: Nevatis has with released some sales figures, but they seem
Speaker 3: quite disappointing.
Speaker 1: Yeah, so it's quite an interesting story from Nevatas this morning,
Speaker 1: with kind of both positive and more negative news.
Speaker 4: Let's start with the positives. It raised its guidance for
Speaker 4: the year.
Speaker 1: That's due to kind of strong sales of its cancer
Speaker 1: medicines in particular, and it also announced a new buyback
Speaker 1: of as much as ten billion dollars to be completed
Speaker 1: by twenty twenty seven.
Speaker 4: But on the other hand, on the more kind of.
Speaker 1: Negative side, the sales for its siasis drug called Coscentics
Speaker 1: really disappointed, and generally some of its key drugs are
Speaker 1: facing increasing competition from cheaper generic drugs that are coming
Speaker 1: through this year, including one of its other key medicine medicines,
Speaker 1: which is a hot medicine called Entresto. In addition to that,
Speaker 1: the chief financial officer is also leaving after twenty two
Speaker 1: years and almost ten years, oh no more than ten
Speaker 1: years as the finance chief. Just to kind of give
Speaker 1: a sense of how this person is thought about in
Speaker 1: the industry. One analyst said that he was widely considered
Speaker 1: to be the best CFO in the industry, so obviously
Speaker 1: not great for nov artists to be losing this CFO.
Speaker 1: Over All, the negative news did offset the positives, and
Speaker 1: the shares have been a little bit pressured this morning. Now,
Speaker 1: going forward, the key thing for novartists is going to
Speaker 1: see We're going to see if the bet that it
Speaker 1: has made on new medicines is really going to pay
Speaker 1: off going forward.
Speaker 2: The Stockmovers podcast from Bloomberg Radio. Check back with us
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