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The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.
Let's look at some stocks on the move today here in Europe. I'm joined by Bloomberg brought a claimer lay good morning clothing. Let's start with Vodafone, which return to growth in Germany. So that's quite a significant move from Vodaphone.
Yeah, absolutely so return to growth in Germany, which is its biggest market, and that is after bringing on one in one as a.
New wholesale customer.
It also targets now the upper end of its guidance for the full year, and so both of those things have boosted the shares and really confirms that the ongoing turnaround for Vodafone is paying off. So the focus over the last couple of years for the company has been really on simplifying operations and selling off some assets. So it divested businesses in Italy and Spain over the last few years and also merged with three here in the UK.
So now after those divestments in this merger, the focus has really been on trying to revive growth in Germany and it's quite difficult market. There's a lot of price competition there. There's also a new regulatory change that is stopping housing associations from bundling TV packages with rent, which meant that Vodafon lost quite a lot of customers that were on contracts like that.
But Vodafon has said that now the impact of that.
Law change has has mostly passed and the migration of one on one customers onto its network is really starting to feed through into earnings and helps kind of mitigate all of those challenges.
So quite a positive morning for Vodafone.
Yeah, I'm so fascinated by the difference between mobile phone bills between Europe and the US because there's a lot of competition in Europe means it keeps the bills down, and also there's sort of more regulation as separation of the contract from the actual mobile phone set. Apparently that also really helps with competition. But I think, yeah, it's a very interesting distinction. If you ever want to get a mobile phone in the US.
That's just tiding to know. Because I've paid ten pounds for my current one.
Well in the US, I hear it's more like two hundred bucks. Oh wow, one hundred and fifty to two hundred bucks. That's the kind of an average in the US. Yeah, I'm always interested in that. So anyway, let's look about Henslt. Shall we an update there, the maker of censor systems and radar electronics.
Yeah, so it told investors at his capital market stay that it targets ten percent revenue growth for next year, and that is a figure that actually disappointed investors are quite a lot.
They expected more.
They said that the guidance was very much in line with expectations, even though they had expected a bit of an upgrade, and that there was really a lack of a stronger outlook beyond twenty thirty. So that puts in spotlight as well the valuation for this defense company, which many now consider a little bit too stretched, a little bit too demanding. Maybe the key thing is that who knows that there will be a boost in the short
term for earnings for a Hensalt. We know that there's contracts coming through, especially in Germany where the investment in defense is obviously particularly significant.
But for investors now.
They need to see growth beyond that and beyond the next few years. If that insane rise in the stock price is to be justified.
Okay, so that on hen Salt. Let's also think about Croder why are you watching that company? And also the broader chemical sector.
Yeah, we had a new note from Jeffrey's analyst on the chemical sector and they upgraded and downgraded a bunch of stocks, and the analysts said that looking for twenty twenty six earning support within that sector I was like searching for Maraje in the desert. So that is obviously not a good news for that sector as a whole. In particular, within that a downgraded Croda as well as Ivonic and Clariant because those phase the biggest challenges within
the sector. Upgraded other names like Yara and jivodorin Lances as well, but across the board, analyst really did say that it was really tough to pinpoint anything that can buck the negative earnings momentum in that chemicals industry.
It's quite obviously a.
Tough sector because they depend so much on the health of their end market. So if there's a slowdown in consumer demand, that slows down demand for consumer chemicals, and then same thing with the slowdown in industrial activity. So it doesn't seem that they're out of the woods just yet that sector.
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