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Now let's take a look at some of the stocks on the move here in Europe. I'm Caroline HepG with Tom McKenzie and we're joined by Bimberg reporter Chloe Malay. Good morning, So let's think about the power gear maker Schneider Electric having a very good day in markets.
But why Yeah, Well it's about big buyo back. Usually that's always received it very well and that's no different for Schneider Electric today. So it announced the buyo back of as much as three point five billion euros through to twenty thirty and so this is part of a
broader medium term strategy for the company. So it's targeting a really big step up in profitability over those next five years, and they'll be driven by really positive trends in artificial integents of course, but also grid infrastructure and electrification.
So big driver of growth that the one has been really talked about for Schneider has been of course data centers, so it provides some of that equipment that's really key to the running of data centers, so we're talking about cooling technologies, serverax, electrical equipment, etc. And in its latest results, Streider had said that the sales had really been boosted by that growing demand for this AI infrastructure and so that is something that will continue that it's hoping we'll
continue over this next five years. So we have this strategy and also this big buy bag, this kind of focus on capital allocation of really driving those shares this morning and being welcomed quite warmly by the market and City.
Meanwhile, Food for Thought in their take on Delivery hero.
Yeah, so Delivery Heroes is down this morning after being downgraded to a cell rating by City ant List. So the analysts mentioned that it will be facing increasing competition in two regions of particular, so the Middle East and North Africa, and its biggest competitor which is metal On, which is the Chinese food delivery company. That is going to be a real big challenge for Delivery hero and that will really hurt growth and hurt the margin going forward,
according to according to City. And so we have seen those shares coming down today and this comes just a day after shares again actually quite a bit yesterday because Delivery Hero had said that it was considering the next strategic steps for the company in response to investor pressure. So some investors are pushing for a sale of the entirety or parts of that company to try and boost profitability and try and turn things around for Delivery Hero.
And so the fact that the company had said it was listening to those investors had boosted those shares yesterday. But now that downgrade is really weighing on that stock and it looks like next year will be quite tough for the food delivery company.
Okay, Meanwhile, a company that makes items for kind of low light levels, I kind of nightgoggles, that sort of thing, Exo Sense. What's been happening with them?
Yeah, we have exo Sense in France Dntheon in Greece, which are too smaller kind of defense names, and both of them are making night vision goggles. And they've both gained quite a lot this morning because they have signed a five hundred million euro contract to provide night vision
equipment to the German and Belgian armed forces. So it's the largest contract ever in the history of night vision technology, at least according to those companies, and it's particularly big for them because they are actually obviously obviously on the smaller side than on the kind of level of ryin Mattaw when we think about defense, and Bunstein analysts have said that this was really supportive of that defense sector in general after the recent sell off that we've seen,
in that this contract really supported the view that European countries will be continuing and are continuing to invest in their military and their defense efforts despite the fact that we are actually perhaps moving closer to peace in Ukraine and to the easing of those tensions between Russia and Ukraine.
So the fact that that contract, that big contract was signed is essentially seen as a good sign for both the companies involved, directly those two smaller companies, but also for that broader industry where we have seen a little bit of concern perhaps that there will be a pullback in in spending.
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