Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some of the socks
Speaker 3: on the move today here in Europe on Caroline Hepca
Speaker 3: and we joined by Bloomberg reporter Claim Malay. Good morning, Chloe.
Speaker 3: Renewable energy equipment maker nor Dex has been surging this morning.
Speaker 3: Why is that.
Speaker 1: Yeah, let's start by talking about energy without talking about
Speaker 1: oil for one. So, yeah, nord X is a manufacturer
Speaker 1: of wind turbines and it reported very strong earnings this morning,
Speaker 1: so it seems that overall the wind industry is getting
Speaker 1: back on track. So and Liz have said the sector
Speaker 1: is entering this reporting season on firmer footing now and
Speaker 1: they said there's a resilient pricing. There's signs that of
Speaker 1: shore dueman in Europe is growing once again, and we've
Speaker 1: got massive order backlogs which really help with visibility as well.
Speaker 1: And it's noting that AI and all of the energy
Speaker 1: de'mond from AI is also driving some of that. So
Speaker 1: that's good news for the likes of nord X and
Speaker 1: so that is the environment that the company has been
Speaker 1: able to really capitalize on, and shares hit the higher
Speaker 1: since two thousand and two on the back of those
Speaker 1: results this morning. So this really gives investor confidence that
Speaker 1: the margin trajectory over the next two to three years
Speaker 1: is looking good, is looking resilient, and now the attention
Speaker 1: is really turning towards other names in that sector as well.
Speaker 1: So for example, we've got Vests and Allsteed are coming
Speaker 1: next week, so we'll see if they confirm that things
Speaker 1: are actually getting better for that wind industry.
Speaker 3: Yeah, okay, so wind turbines has been so much bad
Speaker 3: news for that industry because of you know, the stance
Speaker 3: of the US administration. Quite interesting that the energy crisis
Speaker 3: means they're back in focus in a more positive light. Right,
Speaker 3: Let's think about retail here in the UK. Sainsbury's double
Speaker 3: trouble there, Why, Yeah, a.
Speaker 1: Big job for Sainsbury's this morning on the back of
Speaker 1: two analysts down great. So we have Goldman double downgrading
Speaker 1: to a cell rating and then City downgrading it to
Speaker 1: a neutral rating, and both has said that there's quite
Speaker 1: a challenging outlook for Sainsbury's going forward. So Goldman noted
Speaker 1: weaker growth forecasts in the UK and said that there
Speaker 1: would the challenges of higher inflation would hurt the retail
Speaker 1: segment in particular for Sainsbury's, and then City Analysts echoed
Speaker 1: some of those same concerns and also highlighted the challenge
Speaker 1: of a very competitive supermarket environment with a lot of
Speaker 1: kind of cheaper supermarkets coming in and so that means
Speaker 1: that Sainsbury's has to keep prices low to avoid losing
Speaker 1: market share, but then at the same time also has
Speaker 1: to deal with rising wage inflation. So the outlook is
Speaker 1: not looking very very bright for Sainsbury's and this comes
Speaker 1: just a few days after the earnings as well, in
Speaker 1: which it said that the higher costs, higher energy costs
Speaker 1: in particular and consumer uncertainty from the Iran war would
Speaker 1: really hurt profit this year. So there's a lot for
Speaker 1: that company to deal with and it doesn't look too good.
Speaker 3: Okay, So that's Sainsbury's under pressure. Now a big offer
Speaker 3: for Since, based out of Stockholm, tell us more about
Speaker 3: this business.
Speaker 1: Yeah, let's end with some M and A. So Since
Speaker 1: is a Swedish software company. It works in market research projects,
Speaker 1: and it said this morning it just received an offer
Speaker 1: from a group of bidders to take the company private
Speaker 1: and it recommended that to shareholders, and so the private
Speaker 1: equity firm Triton is part of that group of bidders,
Speaker 1: and the managing partner said that this was a good
Speaker 1: market to hunt in because multiples have really come down
Speaker 1: over the last couple of years. And of course the
Speaker 1: software sector has been under a lot of trouble recently
Speaker 1: because of those fears of AI disruption. But Tryton said
Speaker 1: that this is a challenging environment that essentially increases the
Speaker 1: need for scale. So perhaps this is a sign of
Speaker 1: what's to come, and we might see more private equity
Speaker 1: firms snapping up some of those software firms that have
Speaker 1: been coming under a lot of pressure recently.
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