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Let's look at some of the stocks on the move today here in Europe. I'm Caroline Hepkitt and I'm joined by Bloomberg Report of Chloe Malay. I want to get into the details of what's going on with these different stock stories. We may be coming to the tail end of earnings, but actually some really quite interesting ones today. Rolls is fascinating. They've had a big jump at the start of trading. Are kind of a big turnaround story.
Yeah, absolutely, and Rose Rose.
The reason why they're up so massively this morning is because there's a massive buyer back, and so of course investors are always delighted to get a big buy back like this. So roz Rose is planning to buy back as many as many shares as nine billion pounds over the next two years. So for context and scale, last year it was a one billion pound buy back, so it's a really really a massive jump there, and it also raised its midterm earnings targets. So there's two main
things are really driving performance for ros Rose. There's first of all, a growing demand for plane engines, so that's both a civil aviation and in military aviation. But then the other thing is also there's growing demand for power systems that are used in the data centers. So although it's not the first name that we think about when we think of AI, ros Ross is actually a big
data center story as well. And so all of that has really been driving the earnings, really driving performance for that company, and Morgan Stanley said that it was the gift that kept on giving.
So it's very much a.
Lot of an analyst and an investor enthusiasm for ros Rose at the moment, and we can see that reflected in that big jump in the shares today which actually hit a record high.
Yeah, very interesting, isn't it, especially under the new CEO also who's been in place since twenty twenty three. Rollshas has got those big drivers, hasn't it? Both AI and let's think about sportswear company Puma sprinting ahead. Never know how to say, you know, is it Puma?
Is it Puma? Take your pick? What's behind the JOm? I say Puma, but I don't know if that's correct.
Well, our first glance, it doesn't look too good for Puma. It's expecting another loss this year, removed to dividend. But what investors are really focused on today and what is driving those shares is that the company is trying to position itself for a return to growth in twenty twenty seven.
So the expectation is for twenty twenty six to be a bit of a transition a year where it will do a lot of different things like liquidate the inventory, rework the marketing strategy, create better direct to consumer channels as well, and then also develop new models in really important segments like running in football and so another thing as well there might have contributed to that optimism this morning is that sales in the fourth course or were
actually a little bit better than expected, especially in the key Asian market. So that was another reason why investors were maybe quite reassured that demand for the products for Puma's products was then there's just a few changes that need to be made in terms of marketing, in terms of distribution to get Puma back on track, make it more competitive, make it more efficient. So all of that is being taken as quite encouraging, and there's you know, signs of a recovery that investors have.
Been waiting for a long time for that company. Yeah, be interesting.
I mean the World Cup, the FIFA World Cup. Surely Puma apparently maybe one of the challenger brands. Obviously the big ones are Nike and Added Ass when it comes to footwear and the clothing and everything for that massive footballing event. Okay, let's think about advertising from another perspective. WPP very very painful morning today.
Yeah yeah, I mean a painful year, painful couple of years at least for WPP. Investors aren't as enthusiastic about this turnaround as they are with Pumas. So WPP is targeting about five hundred million pounds in cost savings by twenty twenty eight, and it's unveiled some changes to the
organizational structure of the company as well. So the idea is to create four main units and that savings will come from eliminating some overlapping functions in places like HR or finance and then cutting spending on real estate as well, and then with that money save reinvest that in growth areas like AI and data. But perhaps this restructuring plan doesn't go far enough in the as of investors.
Perhaps is the fact that the expected.
Decline in revenue for this year is looking worse and expected, or it could also be the slash dividend, or actually all three, but in any case, shares out down this morning, and that is actually even without mentioning the AI disruption piece of it as well.
So there's a lot of work for WPB to do.
To get back on track, and that performance gap with the.
Publicist is widening further and further.
In the meantime, 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.