WEBVTT - ASM High, ABB Up, Reckitt Benckiser Cools

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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>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moon. Louise, good morning.

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<v Speaker 3>Let's start then with ASM International and a positive reaction

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<v Speaker 3>to their earnings.

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<v Speaker 1>INDEEDY shares hitting a record high this morning. This is

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<v Speaker 1>a story all about AI, so shares up as much

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<v Speaker 1>as nine point five percent in trading this morning. This

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<v Speaker 1>is after their second quarter forecast came in bester than

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<v Speaker 1>expected's ASM obviously the chip equipment maker. They also predicted

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<v Speaker 1>that the second half would be stronger. Essentially, this is

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<v Speaker 1>all around the as spending on AI ramps up, the

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<v Speaker 1>soaring appetite for chips, chip makers are scaling up their

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<v Speaker 1>production and essentially the only constraint here really is that

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<v Speaker 1>demand is outpacing supplies, so they're accelerating their capacity to

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<v Speaker 1>try and reach that demand. So, as I say, shares

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<v Speaker 1>hit a record high, really soaring on the back of

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<v Speaker 1>that this morning.

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<v Speaker 3>Okay, so I say, as I'm into an Ashdol then

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<v Speaker 3>returning to ABB seeing a boost from data centers.

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<v Speaker 1>Yeah, a similar kind of story here. Shares also saw

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<v Speaker 1>to record high up just over six percent, and if

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<v Speaker 1>you look back over the past year, they've they've risen

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<v Speaker 1>about ninety percent. Again, this is as you say, so

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<v Speaker 1>more orders for products related to dentist data centers all

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<v Speaker 1>profiting on the back of this need for AI data centers.

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<v Speaker 1>So they've raised their revenue expectations for the year. They're

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<v Speaker 1>now seeing what they're calling high single digit to low

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<v Speaker 1>double digit in terms of a percentage rise of revenue.

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<v Speaker 1>It was up to about nine percent, so it's it's

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<v Speaker 1>higher than the previous high end. Essentially, they did note

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<v Speaker 1>some risks from the Middle East, but said that demand

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<v Speaker 1>is resilient enough that this isn't, you know, too much

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<v Speaker 1>of a problem. So revenue expectations raised. Analysts is saying

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<v Speaker 1>that's likely to drive consensus upgrades. And then in terms

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<v Speaker 1>of kind of the wider sector, this demand for data

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<v Speaker 1>centers and investment in data centers is expected to kind

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<v Speaker 1>of continue through this Yees, you would likely see a

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<v Speaker 1>lot of the same story going forward and benefits for

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<v Speaker 1>ABB on the back of.

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<v Speaker 3>That, okay, or keeping in eyeing those ABB shares, as

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<v Speaker 3>you say, significantly higher in trading today next to recket

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<v Speaker 3>bankies are in the consumer space and their results have

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<v Speaker 3>a bit of a cold were affected by the common cold.

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<v Speaker 1>Business famous, Yeah, so they had their first quarter sales

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<v Speaker 1>came in weak and even in their core brands, so

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<v Speaker 1>they've been pivoting to really focus on their course that's

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<v Speaker 1>brands like Strep soels like Dethel but overall sales week

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<v Speaker 1>on the back of, as you say, a lack of

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<v Speaker 1>demand for cold medicines in the US. They've had a

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<v Speaker 1>weak and flu season and then also disruption in the

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<v Speaker 1>Middle East, so that's causing higher overall costs consumers where spending.

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<v Speaker 1>So quite weak first quarter results there. They did keep

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<v Speaker 1>their full year guidance intact, which is something that's been

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<v Speaker 1>quite closely watched to see if they could hit that,

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<v Speaker 1>and they had already worn that their first quarter growth

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<v Speaker 1>would lag slightly. But analysts is saying that this MYSS

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<v Speaker 1>today is creating a lot of uncertainty about if it's

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<v Speaker 1>going to be able to deliver those targets, so if

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<v Speaker 1>it will actually hit their full year guidance as they

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<v Speaker 1>are saying. They're saying Alice also saying that, you know,

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<v Speaker 1>this reiteration of the guidance is turning it into what

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<v Speaker 1>they're calling a heavily back end loaded story. Doesn't give

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<v Speaker 1>them much flexibility. You know, if there's another shock that

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<v Speaker 1>comes down the line, it's quite hard to absorb that.

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<v Speaker 1>So for Wrecket, as I say, week first quarter adds

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<v Speaker 1>to ongoing struggles. They've already been trying to pivot the

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<v Speaker 1>brand and overhaul it. They're struggling, particularly in Europe. There's

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<v Speaker 1>a lot of competition there. Spending is also slowing there,

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<v Speaker 1>so shares today down as much as six point three percent,

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<v Speaker 1>the lowest since September twenty twenty four, leading declines on

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<v Speaker 1>the foot Sea one hundred and extending declines that they've

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<v Speaker 1>had since the war began, really and also dragging down

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<v Speaker 1>some peers to like Halien, so a bit of an

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<v Speaker 1>indication as to how the Middle East and consumer demand

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<v Speaker 1>is impacting these kind of consumer companies.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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