Besi Soars, TUI Down, Tesco Up

On this episode of Stock Movers:
- BE Semiconductor shares soar as much as 11% to the highest levels since January, after the chip equipment maker raised its long-term revenue and margin outlook ahead of its investor day.
- Airline stocks are among the worst performers in Europe, after US peers suffered sharp drops on Wednesday when data showed airfares slippping for the fourth straight month. Airlines also face the prospect of higher jet fuel costs, with crude prices up 3.6% on a two-day basis.
- Tesco Plc’s sales increased more than expected as the supermarket chain sold more premium and own-brand products.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:17):
Let's take a look at some of the stocks on
the move today. Then in Europe, I'm Caroline Hepget alongside
Value Titel and we have our Bloomberg Equities Report to
Joe Easton with us things are looking up. And how
for Bee Semiconductor.

Speaker 1 (00:30):
Why yeah, So B Semiconductor coming out with a statement
today and it's Investor Day raising its long term revenue
target to one point nine billion euros. So that's an
annual forecast that they say they should be able to
reach within a number of years. Now, previously they had
only targeted one billion euros, so they're actually almost doubling that,

(00:52):
and also their margins and some of their other financial
targets a little bit stronger than expected. So this is
the company that makes one of the comes that makes
machines that are used to assemble chips on the production line.
So it's kind of in the same bucket as ASML,
but much smaller than the big rival over there. Also

(01:12):
listed in appstaps, so the stock today up around seven percent
of the moment, the biggest gain in many months for
that firm, and analyst lifting all their targets for their
revenue for the next few years.

Speaker 3 (01:23):
Yeah. Well, the one alysts pointing out that the targets
and the financial model was previously targeting twenty twenty eight.
In this one is an update and it's looking towards
twenty thirty. But yeah, very interesting from that semiconductor maker Joe.

Speaker 2 (01:36):
It's summer and you're looking at airlines, but not for
holiday reasons.

Speaker 1 (01:40):
What's going on? Yeah, so airlines this is a week
sector today. So we saw a drop down in US
names yesterday, so American, United, Delta, all of those shares
were kind of down around five percent of the closure training.
Now in the inflation numbers that we got yesterday from
the US, there was actually weakness specifically in airline fest
airline fes decline for a fourth straight month, and we

(02:01):
saw the stocks i say, in the US falling, and
we've sent a feed through into the European name. So
it's a lot of the companies that are exposed to
transatlantic travel, so IAG British Airways, also Air France and
also Leftands at LHA the tickle on that one. So
those stocks declining today, some of those down around three percent.
But also the jump up in oil prices that we've

(02:24):
seen on a two day basis, so oil slightly low
this morning, but on a two day basis still up
around three and a half percent. So therefore that feeds
through into worries about jet full prices, jet fuel prices
and therefore costs, So the kind of a double hit.
But really the weak affairs is kind of the big
headline out of that.

Speaker 3 (02:42):
Okay, interesting, and it looks like every little helps, and
it comes to Tesco.

Speaker 1 (02:47):
Yes, maybe the club card price on the stock today,
so Tesco is actually two percent higher today, so the
kind of joke doesn't work so well there. But the
company reporting a five percent gain in like for like sale,
so the market was only or analysts we're only looking
for around four percent gain on the last quarter. And
this is reassuring because we did get some profit warnings

(03:09):
out of the sector a few months ago, notably from ASDA,
the privately held rival. We got a warning from them
back in March saying that there's so much competition and
discounting in the sector in UK grosses at the moment,
which obviously it will be good for all of US consumers,
but not for the company. So this is reassuring from
Tesco today, saying that their sales actually looking pretty strong,

(03:30):
beating expectations. They do caution on a competitive environment in
the statement, but the stock gaining two percent on a
bit of relief. Tsco currently up around one point five
percent given the boost from their sales.

Speaker 2 (03:44):
The Stock Movers podcast from Bloomberg Radio. Check back with
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the Bloomberg Business app. Mm hmm