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Well, let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll and I'm joined by Bloomberg's Breaking News editor Louise Moan. Louise, good morning. Let's start in France then, and the software company Daso System falling by the most sense, it's nineteen ninety six IPO. What's going on?
Indeed? Yes, So this followed its fourth quarter figures today came in below expectations. So, for example, revenue is down four point one percent, that was below expectations. Guidance ahead was also weak, missing estimates. JP Morgan and listening. That's the worst. In their words, it's the worse. It's worse than even the most negative investors we've spoken to. So really negative readings, both for actual figures and for looking ahead.
And it all comes as the story that's been rolling on that software companies are grappling with fears over AI that's going to undermine their business so that new AI tools can compete with what they're doing and undermine and change the business. So this is weighing on that's all, but also weighing across tech, on tech stocks across Europe.
So for example, SAP also edging lower this morning, So it's not just the individual figures but also those wider worries that are also pulling those stocks down.
Yeah, and of course AI worries not just being in focus for software companies, they're also hitting wealth managers in Europe today.
Indeed, Yeah, so European stocks losing ground. European wealth manager stocks are losing ground as a whole, tracking what happened in America overnight, so similar moves by American peers overnight. So in Europe you've got the likes of Saint James's Place down almost ten percent this morning, Quilter and others all dropping as you say, on these worries over AI.
The specific thing that has triggered this this move now is a new AI tool that was unveiled by tech startup yesterday that's aiming at creating tax strategies, so for example, helping financial advisors personalized strategies for clients, among other things as well. So that sparked that sell off first in
America and then now in Europe. In wealth management stocks, you know, there's the risk that the whole sector could be at risk from automation, as we've just spoken about, you know, follows moves in software and in other industries that we've been seeing recently as well. There was a bit of a bit of a maybe a slight glimmer of hope from a note from RBC analyst saying that they think that this drop in terms of wealth managers of the drop is short term positioning rather than a
big change in fundamentals in the industry. But yeah, weighing on stocks across Europe, so both wealth managers and software today.
Okay, and in the UK then we are watching the house builder Barish red Row. What have we learned from them?
Indeed, yeah, this is the UK's biggest house builder. So they had their first half results, better sales than last year. They're citing what they say is a strong performance in a subdued market. They said that there was a lot of uncertainty around the budget, but then people started then completing before Christmas once that uncertainty kind of lifted a bit share so relatively positive in that sense. Shares did fall over eight percent or are falling still over eight percent.
There was one analyst saying that that these figures are being flattered by a change in their accounting policy. But also there's a lot of pressure and increasing pressure on bat Red Rose margins. You know, they said themselves it was as a challenging market, a subdued market. They also urged in their statement, as they've done before, they urged for more government assistance in terms of growing underlying demand
for housing and the housing market in the UK. So the focus now is on the next season, so the spring selling season, if the government might be able to help more, if their measures that they've already implemented, that there's been quite a host of reforms, if they start to take shape a bit more and help Barrett. So despite those better sales in the first half, shares are falling on that kind of understy on that challenging market that housing as a whole is experiencing.
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