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Let's take a look at some of the stocks on the move today here in Europe. On Caroline Hipcot with Stephen Carroll in Brussels, were joined by Bloomberg's reported to you out a bio to talk through the markets. So the AI narrative volatility really thracking stocks pretty hard today.
Yeah, it's been a difficult day for the AI trade and for tech stalks more broadly. We seem to really be seeing this optimism that's gathered over the data center build out over the last few months pulling back. We're seeing a retreat from the COSB as well as NASDAQ one hundred futures of costs by also over nine percent and triggered circuit breakers. So we're seeing chip makers like st Micro taking a hit. Specifically that's down as much
as son and a half percent. Also, the likes of Nokia companies that saw this year on expectations of rising adoption of AI, that's also dropping, but it does follow the previous sessions sell off in US tech heavyweights, as there have been doubts emerging over whether these hyperscalers such
as Alphabet can actually justify their massive AI spending. So we're seeing doubts and volatility in the sector today and that is having an effect on some stocks in Europe, specifically st Micro losing out this morning.
Okay, so that's on the tech story. Let's turn to Heinekennects. Their shows are up over two percent.
What's driving that? Well, yeah, the opposite for heinechins today shares gaining it this morning. It's after actually an announcement from the company that they're going to have a new CEO. So they've nominated Raphael Oliviera as their next CEO for a period of four years, so he'll step down as a CEO of the coffee and tea company JdE pets
to take this role. It should be on October the first, but there will be an extraordinary general meeting to set out this vote and really ratify that appointment in August. But Anlysta liking this move so far. Jeffries has said that this appointment removes overhang around management uncertainty and it should drive stronger execution and performance culture. But there are
this a little bit more tempered like KBC. They're saying that Heineken's investment case is less appealing after the past few years, but they are seeing the company's self help initiatives potentially supporting organic earnings growth. So it seems to be a positive verdict for the new CEO so far, but of course investors will still be looking to see if he actually does deliver those results.
Okay, in terms of signify what's been happening with us or something significant.
Well, we're seeing a bit drop this morning. Caroline's plunged as much as eighteen percent. That's actually the most on record, and it's after they've announced some new medium term targets and an updated dividend policy. And now analysts don't like that. They're saying it's a big surprise and that it would
mean big cuts to share holder pays. So, for example, JP Morgan, they've called out the capital allocation as a surprise, saying that the company is now targeting a payout ratio of forty to fifty percent of underlying net income, and by their own back of the envelope calculations, this would been a roughly forty five percent cut to consensus dividend per share expectations, and it will reduce the dividend yield
to about four percent of some big changes. Bloomberg Intelligence as well, saying based on a company compiled consensus estimates for earnings per share, this new strategy suggests a dividend payment of about sixty six million euros versus roughly three hundred and fifty seven million euros that will be spent on dividends that was spent on dividends and buybacks last year. So a big change there. Market's not liking the surprise so far, so the biggest plunge on record for Signify.
This morning 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 on Applecarplay and Android Auto with the Bloomberg Business app.