Siemens Energy Down, Bayer Rises, Barclays Dips | Stock Movers

0:02 Bloomberg Audio Studios podcasts, radio, news.

0:08 The Stock Movers Report,

0:10 your roundup of companies making moves in the stock market,

0:13 harnessing the power of Bloomberg data.

0:17 Let's take a look at some of the stocks on the move today in Europe.

0:19 I'm T Adabay with Steven Carroll

0:22 and we're joined by Bloomberg reporter Khloe Mle.

0:25 Chloe, Seaman's Energy, it says it expects the AI data center boom

0:30 to bolster its sales in the year to come.

0:32 Uh their CFO was pretty bullish about that when

0:35 speaking to our colleague Lizzie Burden this morning.

0:37 Has it been good news for their share price?

0:40 Well, not so much actually.

0:41 The share price is down a little bit,

0:42 but let's start with with the positive first.

0:44 So, as you say, it has said that this surging demand for energy

0:48 infrastructure thanks to both AI

0:50 and electrification was really really boosting cell.

0:53 So it said it would be accelerating its buyback

0:56 this year thanks to those strong orders uh from data center

0:59 customers in particular and this comes just a few weeks

1:02 after it had already raised its outlook for the year.

1:05 So Seaman's energy is part of this crop of companies like Schneider Electric,

1:09 ABB Local, all of those companies really

1:12 benefiting from the billions being poured into AI.

1:15 Um and that visibility is now great.

1:18 The outlook is very bright.

1:19 But the reason why shares did fall this morning is because

1:22 some analysts had actually noted some weaker margins in the gas business.

1:26 Um and they also said that they were

1:28 actually quite there were actually quite few updates apart

1:31 from the buyback um being accelerated in this release

1:34 compared to the release from just a few weeks back.

1:37 Um and usually when expectations are also that high for a company

1:40 those really small disappointments tend to trigger quite a lot of weakness.

1:44 So that's why but the outlook is genuinely very bright for Seaman's energy.

1:48 Okay.

1:48 Okay.

1:48 Well, let's stay in Germany and go to buyer next.

1:50 Uh earnings topping estimates there as well.

1:52 Uh science also to the forefront here.

1:55 Yeah.

1:56 So, it reported um better than expected profit,

1:58 a very strong performance as you say in the crop science um business.

2:02 And within that, what did particularly well

2:04 were soybeans actually sales doubled in that segment

2:07 uh thanks to a licensing payment that was tied to a seed technology dispute.

2:12 So, quite quite specific, but that really boosted the sales.

2:15 Bayer also confirmed its outlook.

2:17 It said that the conflict in the Middle East

2:19 doesn't have any material impact on the guidance currently.

2:22 Um, and this is all coming at quite a critical time for that company

2:26 given that it is still dealing

2:27 with this litigation issues around its Roundup weed killer.

2:31 So, investors are really closely watching a US

2:35 Supreme Court decision that's expected by the end

2:37 of June that could potentially undercut the legal

2:40 argument that's underpinning most of those roundup claims.

2:44 And so those really strong earnings are

2:46 being received quite well this morning perhaps

2:48 as some kind of relief while that legal

2:50 uncertainty continues to hang over that stock.

2:53 Okay, so those are the moves from buyer.

2:55 Moving to the banking sector now and Barclays is down.

2:58 That's after JP Morgan analyst said UK banks could face higher

3:02 taxes in the event of a leadership change in Downing Street.

3:05 Of course, we're awaiting news of Kier Starmer's decision this morning.

3:10 Uh what's the story there?

3:11 Is it moving Marcus?

3:12 Yeah, it definitely is.

3:13 Barclays, Lloyds, West were all in the red this morning

3:16 on the back of that uh JP Morgan note.

3:19 And so the risks uh of those high bank taxes

3:22 have been calculated by the analysts based on a previously

3:25 reported leaked memo from Angela Raina and then also

3:28 what we know about Andy Bernham's stance on on tax.

3:31 Um with those two names being of course the names that keep

3:33 coming up when talking about who is potentially going to replace Karma.

3:38 Star has been trying to hold on to his job,

3:40 but he's really losing that fight at the moment after the major

3:44 losses for Labor that we saw in the lo local elections last week.

3:48 Um he's now facing really growing pressure to step down.

3:50 As you say, we are waiting for further developments there.

3:53 Um but if a leadership change does happen

3:56 and someone more left-leaning than Star takes over,

3:58 that's essentially when banks need to maybe

4:00 start worrying about those higher taxes.

4:02 According to those JP Morgan analysts,

4:05 um they said that higher bank taxes could result

4:07 in an EPS hit of about 3% for Lloyds in 2027, 2% for Natw and 1% for Barclay.

4:14 So that's not negligible and and therefore we are seeing

4:17 those banks weaker this morning on the back of that.

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