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Well, let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Lizzie Burton and we're joined by Bloomberg reporter Chloe mele Chloy. Good morning. Continued flight disruption, of course, with the conflict continuing in the Middle East. You've been looking at the shares and Whizzer this morning.
Yeah, and they are down quite significantly, and that is because we just cut its guidance because of that ongoing conflict in the Middle East. The disruption has meant, of course a lot of flight cancelations, and it also has led oil prices to spike, and so that means of course higher fuel costs that now Wizze has to absorb. And so Whizzer expects the disruption to hit its net profit by fifty million yeuros for fiscal twenty twenty six, and then ANALYSSA also saying that the fact could extend
and even deepen into physical twenty twenty seven. And so some analysts have said that this profit warning really shows the groups lack of resilience, that there's you know, little profitability, really high financial leverage. And it's also worth noting that WIZ is also very exposed to that Middle East region, much more than maybe other airlines as well. So it might be that WE'RESA is uniquely badly prepared for such a disruption and that the rest of the industry might
be a little bit better position. But given the magnitude of the impact, all the flight cancelations that we've seen, it's likely that we'll see more airlines coming out in the next few days or weeks and clarifying that earnings impact.
And another sector that's of course hugely impacted by this is logistics. And we've heard from DHR this morning, how are they fair and chloge.
Yeah, they took a bit of a hit this morning because the twenty twenty six guidance came in a little bit lower than expected. And some of that cautious approach is related to that disruption in the Middle East, given that DHI is likely to be impacted by the closure of airspace. So and LIS have noted that the margins for freight carriers like FedEx and ups, and DHL as well are impacted will be impacted because of longer transit
times driving up fuel costs. And so it's essentially a similar story to Wizer and others birds about cargo planes rather than those passenger planes. The one thing that DHL does have going for it is that it's quite diversified company. It has a post and parcel business, it has a E and e commerce business, so the model is not as threatened maybe by those fuel costs as airlines are,
for instance, but the guidance is still conservative. It does indicate a degree of caution going into twenty twenty six, and therefore we're seeing the shares down this morning.
Okay, and away from the events in the Middle East, you've been also looking at the share as an st micro and aventful day. Yeah.
Well, while all of this is happening in around, the AI trade has faded into the background a little bit, but it's still very relevant. And so we had Broadcom in the US are coming up with very strong earnings, very upbe outlook as well, saying that it expects the sell of AI chips to a top one hundred billion
dollars in twenty twenty seven. And so we've seen that positive read across into the likes of st Micro, but also be Semiconductors ASML today because this outlook from Broadcom suggests continued investment in AI and quite good order visibility as well for those companies within that supply chain, and then for st Micro specifically, what also pushed to shares in the green today was the CEO saying that data center related revenue would be well above one billion dollars
for next year. And so the number that a lot of investors and analysts are going to keep coming back to is that the world's four biggest hyperscalers, which are Alphabet, Amazon, Meta, and Microsoft, are planning to spend a combined six hundred and fifty billion dollars on data centers just this year. And so this is really a major opportunity for everyone involved. All of the companies involved within that supply chain includes STMCRO, which was doing pretty good today.
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