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Now, let's take a look at some of the stocks on the move today here in Europe. I'm Caroline Hepkat and I'm joined by Bloomberg Report of Chloe Melay. Good morning. I want to talk about Dasso Systems, Chloe JP Morgan analyst saying it's worse than even the most negative investors we've spoken to out Why do they say that.
Yeah, it's been really a massive drop in the sheds for the company this morning, and that is because the fourth quarter results really disappointed investors. They were the low end of guidance, and then also the growth guidance for this year for twenty twenty six was also way below analyst expectations. And as you mentioned, JP Morgan analysts have said that this was even worse than what the most
negative investors had had thought about. So this is of course intra because this is happening at a time when you know, within the last week we've got we've had this big sell off in software firms, which that has really dominated the new cycle, and I've seen investors trying to limit their exposure to all of those stocks, all of those companies that could potentially be disrupted by new
AI tools and software. Firms like Deso system that have really been seen as the kind of clearest potential AI losers, and you know, those companies do tend to say that AI is an opportunity rather than a threat. That they're developed developing their own tools, and that still made reference
to that in their statement as well. But the market narrative at the moment is that the risks actually far outweigh the opportunities there and this weak guidance that we've seen from Desso isn't really helping to reassure anyone in the market. And that really explains this huge job in the shows that we've seen today.
Yeah, really unforgiving, isn't it the response in terms of investors being critical. Paul Singers, Elliott Investment Management continuing it's LSE campaign today we've got more information.
Yeah, absolutely, And so AI disruption fear has actually also come into this. So Elliott Investment Management, the activist Investors that was also in the news last year for pressuring VP to return to oil and gas. It's said to be taking a significant steak in the London Stock Exchange Group and this comes at a time when ELSEG is facing a lot of challenges, one of them including that potential disruption from AI that I've been talking about, you know,
with areas like analytics and data for example. That's a really big part of the business model for LSEG, and that is one of the things that could where you could see really a lot of AI tools coming through. And then also another challenge for el SEG has been the IPO market. Of course in London, it's not in the most fantastic shape. There has been some progress, but no one would say there's necessarily a surge in listings at the moment, and that is a big problem for
LSEG to contend with. It's not really clear how big the steak is and exactly what changes Elliott is pushing for, but the Ft reported that it wouldn't be pushing for a sale or a spin off of the stock exchange business in particular, but kind of just a general improvement in performance. So we'll be watching out for that. But in the meantime, the shares are up quite strongly this morning.
Yeah, what I noticed in terms of businesses in London a lot of moving to aim the alternative listing venue and just one caveat Bloomberg LP, the parent of Blueberg News, competes with LSEG in providing financial data, so that little addition there to that conversation. Elsewhere, Heineken came out with results. They have a well, a pint size problem or is it larger than that.
Well, they announced that it would make as many as many as six thousand jobs to try and mitigate the impact of weak alcohol demands. So that's about seven percent of staff worldwide, and that really underscores how much ourcore companies are struggling because of prices rising and then also consumers in loads of different markets moderating cutting back that are cool consumption. So that's going to be a big problem for Heineken. The chez did rise this morning, so
Alena organization maybe was taken quite well by investors. But then also the results by themselves this morning were not that bad. So beer volumes did fall in twenty twenty or five, but it wasn't as steep of a drop as analysts had expected. And you know, we do have the football World Cup this year, that's going to be a big boost. So that's going to brighten the outlook a little bit, but overall, the fundamentals of the bear
sector look quite weak, will look quite tough. Carlsberg just last week also widened its outlook because of that muted demand, especially in Western market. So it seems that there was a prolonged slump there and there's you know, maybe a few rock cuppigns that might not be enough to actually upset that.
The Stock Movers report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and done Apple CarPlay and Android Auto with the Bloomberg Business app.