WEBVTT - Nordex Surges, Sainsbury Drops, Cint Offer

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Now, let's take a look at some of the socks

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<v Speaker 3>on the move today here in Europe on Caroline Hepca

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<v Speaker 3>and we joined by Bloomberg reporter Claim Malay. Good morning, Chloe.

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<v Speaker 3>Renewable energy equipment maker nor Dex has been surging this morning.

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<v Speaker 3>Why is that.

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<v Speaker 1>Yeah, let's start by talking about energy without talking about

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<v Speaker 1>oil for one. So, yeah, nord X is a manufacturer

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<v Speaker 1>of wind turbines and it reported very strong earnings this morning,

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<v Speaker 1>so it seems that overall the wind industry is getting

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<v Speaker 1>back on track. So and Liz have said the sector

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<v Speaker 1>is entering this reporting season on firmer footing now and

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<v Speaker 1>they said there's a resilient pricing. There's signs that of

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<v Speaker 1>shore dueman in Europe is growing once again, and we've

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<v Speaker 1>got massive order backlogs which really help with visibility as well.

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<v Speaker 1>And it's noting that AI and all of the energy

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<v Speaker 1>de'mond from AI is also driving some of that. So

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<v Speaker 1>that's good news for the likes of nord X and

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<v Speaker 1>so that is the environment that the company has been

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<v Speaker 1>able to really capitalize on, and shares hit the higher

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<v Speaker 1>since two thousand and two on the back of those

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<v Speaker 1>results this morning. So this really gives investor confidence that

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<v Speaker 1>the margin trajectory over the next two to three years

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<v Speaker 1>is looking good, is looking resilient, and now the attention

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<v Speaker 1>is really turning towards other names in that sector as well.

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<v Speaker 1>So for example, we've got Vests and Allsteed are coming

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<v Speaker 1>next week, so we'll see if they confirm that things

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<v Speaker 1>are actually getting better for that wind industry.

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<v Speaker 3>Yeah, okay, so wind turbines has been so much bad

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<v Speaker 3>news for that industry because of you know, the stance

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<v Speaker 3>of the US administration. Quite interesting that the energy crisis

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<v Speaker 3>means they're back in focus in a more positive light. Right,

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<v Speaker 3>Let's think about retail here in the UK. Sainsbury's double

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<v Speaker 3>trouble there, Why, Yeah, a.

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<v Speaker 1>Big job for Sainsbury's this morning on the back of

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<v Speaker 1>two analysts down great. So we have Goldman double downgrading

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<v Speaker 1>to a cell rating and then City downgrading it to

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<v Speaker 1>a neutral rating, and both has said that there's quite

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<v Speaker 1>a challenging outlook for Sainsbury's going forward. So Goldman noted

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<v Speaker 1>weaker growth forecasts in the UK and said that there

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<v Speaker 1>would the challenges of higher inflation would hurt the retail

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<v Speaker 1>segment in particular for Sainsbury's, and then City Analysts echoed

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<v Speaker 1>some of those same concerns and also highlighted the challenge

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<v Speaker 1>of a very competitive supermarket environment with a lot of

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<v Speaker 1>kind of cheaper supermarkets coming in and so that means

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<v Speaker 1>that Sainsbury's has to keep prices low to avoid losing

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<v Speaker 1>market share, but then at the same time also has

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<v Speaker 1>to deal with rising wage inflation. So the outlook is

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<v Speaker 1>not looking very very bright for Sainsbury's and this comes

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<v Speaker 1>just a few days after the earnings as well, in

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<v Speaker 1>which it said that the higher costs, higher energy costs

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<v Speaker 1>in particular and consumer uncertainty from the Iran war would

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<v Speaker 1>really hurt profit this year. So there's a lot for

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<v Speaker 1>that company to deal with and it doesn't look too good.

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<v Speaker 3>Okay, So that's Sainsbury's under pressure. Now a big offer

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<v Speaker 3>for Since, based out of Stockholm, tell us more about

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<v Speaker 3>this business.

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<v Speaker 1>Yeah, let's end with some M and A. So Since

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<v Speaker 1>is a Swedish software company. It works in market research projects,

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<v Speaker 1>and it said this morning it just received an offer

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<v Speaker 1>from a group of bidders to take the company private

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<v Speaker 1>and it recommended that to shareholders, and so the private

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<v Speaker 1>equity firm Triton is part of that group of bidders,

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<v Speaker 1>and the managing partner said that this was a good

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<v Speaker 1>market to hunt in because multiples have really come down

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<v Speaker 1>over the last couple of years. And of course the

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<v Speaker 1>software sector has been under a lot of trouble recently

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<v Speaker 1>because of those fears of AI disruption. But Tryton said

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<v Speaker 1>that this is a challenging environment that essentially increases the

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<v Speaker 1>need for scale. So perhaps this is a sign of

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<v Speaker 1>what's to come, and we might see more private equity

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<v Speaker 1>firms snapping up some of those software firms that have

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<v Speaker 1>been coming under a lot of pressure recently.

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