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: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 3: by Bloomberg's Breaking News editor Louise Moon. Louise, good morning.
Speaker 3: Let's start then with ASM International and a positive reaction
Speaker 3: to their earnings.
Speaker 1: INDEEDY shares hitting a record high this morning. This is
Speaker 1: a story all about AI, so shares up as much
Speaker 1: as nine point five percent in trading this morning. This
Speaker 1: is after their second quarter forecast came in bester than
Speaker 1: expected's ASM obviously the chip equipment maker. They also predicted
Speaker 1: that the second half would be stronger. Essentially, this is
Speaker 1: all around the as spending on AI ramps up, the
Speaker 1: soaring appetite for chips, chip makers are scaling up their
Speaker 1: production and essentially the only constraint here really is that
Speaker 1: demand is outpacing supplies, so they're accelerating their capacity to
Speaker 1: try and reach that demand. So, as I say, shares
Speaker 1: hit a record high, really soaring on the back of
Speaker 1: that this morning.
Speaker 3: Okay, so I say, as I'm into an Ashdol then
Speaker 3: returning to ABB seeing a boost from data centers.
Speaker 1: Yeah, a similar kind of story here. Shares also saw
Speaker 1: to record high up just over six percent, and if
Speaker 1: you look back over the past year, they've they've risen
Speaker 1: about ninety percent. Again, this is as you say, so
Speaker 1: more orders for products related to dentist data centers all
Speaker 1: profiting on the back of this need for AI data centers.
Speaker 1: So they've raised their revenue expectations for the year. They're
Speaker 1: now seeing what they're calling high single digit to low
Speaker 1: double digit in terms of a percentage rise of revenue.
Speaker 1: It was up to about nine percent, so it's it's
Speaker 1: higher than the previous high end. Essentially, they did note
Speaker 1: some risks from the Middle East, but said that demand
Speaker 1: is resilient enough that this isn't, you know, too much
Speaker 1: of a problem. So revenue expectations raised. Analysts is saying
Speaker 1: that's likely to drive consensus upgrades. And then in terms
Speaker 1: of kind of the wider sector, this demand for data
Speaker 1: centers and investment in data centers is expected to kind
Speaker 1: of continue through this Yees, you would likely see a
Speaker 1: lot of the same story going forward and benefits for
Speaker 1: ABB on the back of.
Speaker 3: That, okay, or keeping in eyeing those ABB shares, as
Speaker 3: you say, significantly higher in trading today next to recket
Speaker 3: bankies are in the consumer space and their results have
Speaker 3: a bit of a cold were affected by the common cold.
Speaker 1: Business famous, Yeah, so they had their first quarter sales
Speaker 1: came in weak and even in their core brands, so
Speaker 1: they've been pivoting to really focus on their course that's
Speaker 1: brands like Strep soels like Dethel but overall sales week
Speaker 1: on the back of, as you say, a lack of
Speaker 1: demand for cold medicines in the US. They've had a
Speaker 1: weak and flu season and then also disruption in the
Speaker 1: Middle East, so that's causing higher overall costs consumers where spending.
Speaker 1: So quite weak first quarter results there. They did keep
Speaker 1: their full year guidance intact, which is something that's been
Speaker 1: quite closely watched to see if they could hit that,
Speaker 1: and they had already worn that their first quarter growth
Speaker 1: would lag slightly. But analysts is saying that this MYSS
Speaker 1: today is creating a lot of uncertainty about if it's
Speaker 1: going to be able to deliver those targets, so if
Speaker 1: it will actually hit their full year guidance as they
Speaker 1: are saying. They're saying Alice also saying that, you know,
Speaker 1: this reiteration of the guidance is turning it into what
Speaker 1: they're calling a heavily back end loaded story. Doesn't give
Speaker 1: them much flexibility. You know, if there's another shock that
Speaker 1: comes down the line, it's quite hard to absorb that.
Speaker 1: So for Wrecket, as I say, week first quarter adds
Speaker 1: to ongoing struggles. They've already been trying to pivot the
Speaker 1: brand and overhaul it. They're struggling, particularly in Europe. There's
Speaker 1: a lot of competition there. Spending is also slowing there,
Speaker 1: so shares today down as much as six point three percent,
Speaker 1: the lowest since September twenty twenty four, leading declines on
Speaker 1: the foot Sea one hundred and extending declines that they've
Speaker 1: had since the war began, really and also dragging down
Speaker 1: some peers to like Halien, so a bit of an
Speaker 1: indication as to how the Middle East and consumer demand
Speaker 1: is impacting these kind of consumer companies.
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