ABB’s new CEO says electrification and data center growth are ‘really driving’ the business
The new CEO of Swiss engineering group ABB said on Thursday that fast-growing data centers and the electrification of everything are “really driving” the business.
His comments come in groups reported A mixed set of quarterly results. ABB reported an operating underlying profit of $1.55 billion in the third quarter, a 19% increase in operating EBITA (earnings before interest, taxes and debt), and raised its full-year profit expectations.
However, ABB said it expects full-year comparable revenue growth to come in at “below 5%”, downgraded slightly from an earlier forecast of “around 5%”.
“We’ve had a very strong quarter of order growth and a positive book, and, as you said, a record profit, so it shows this benefit of a broad industrial exposure, especially these days in electrifying everything.” Morten Wierod, CEO of ABB, said on Thursday. told CNBC’s “Squawk Box Europe.”
“And there’s obviously a boost in data centers and a need for electricity, and that’s really driving ABB at the moment,” he added. After Bjorn Rosengren, Aug. 1 Veerot took charge of ABP.
ABB shares rose 1.1% on Thursday morning.
– Sam Meredith
Shares of food giant Nestlé fell 2% after the company cut its full-year sales outlook
Swiss food giant Nestlé on Thursday has posted Weaker-than-expected underlying sales growth in the first nine months of the year and cut its forecast for full-year sales.
Nestlé reported organic sales growth of 2% for the first nine months of 2024, a weaker reading than the 2.5% forecast by analysts polled by Reuters.
Nestlé shares year-to-date.
The company, which announced a restructuring of its senior leadership and organizational changes, now expects full-year sales growth to be 2% in line with the first nine months. It was before forecast 2024 organic sales growth will be at least 3%.
Shares of the company fell 2.3% on Thursday morning.
– Sam Meredith
European markets open higher
European shares rose slightly after the opening hours on Thursday.
Pan-European Stoxx 600 It traded up nearly 0.2%, with most sectors in positive territory.
– Sam Meredith
Schneider Electric CEO says $850m deal to buy data center cooling firm Motivair ‘not too expensive’
Products are displayed at the Schneider Electric SE booth at the International Photovoltaic Power Generation and Smart Energy Expo in Shanghai, China, Thursday, June 13, 2024.
Bloomberg | Bloomberg | Good pictures
The chief executive of French electrical-equipment maker Schneider Electric said on Thursday. $850 million deal Taking a controlling stake in US-based liquid cooling company Motivair will help it increase its offering to fast-growing and energy-intensive data centers.
Schneider Electric CEO Peter Herweg told CNBC’s “Squawk Box Europe” on Thursday, “We’ve always said that we’re always going to be active with acquisitions and targets that fit Schneider Electric’s strategy.
“And we envisioned evolving as the largest provider of infrastructure for data centers. [generative] AI and large language models require high-density data centers and you need to … go from the grid to the chip, then from the chip to the cooler.”
Herweg said the all-cash deal to acquire an initial 75% controlling interest in Motivair’s equity, announced Thursday, is “rich, but not overpriced” and “fits very well” with the company’s strategy.
The acquisition comes amid a global rush for the next wave of productive AI, and coincides with increasing public scrutiny over environmental concerns, as the tech giant recently pioneered nuclear power in an effort to advance its AI ambitions.
– Sam Meredith
The ECB will cut rates — but is unlikely to offer much in the way of forward guidance, Goldman says
The European Central Bank (ECB) will cut interest rates by 25 basis points on Thursday, but Goldman Sachs says market participants shouldn’t expect much in the way of forward guidance.
Jari Stehn, chief European economist at Goldman Sachs, said one reason the euro hasn’t come under much pressure in recent weeks is because the ECB has been cutting rates in a more data-driven fashion without giving you a bad data. A guide to where you’re going next.”
Stehn told CNBC’s “Squawk Box Europe” on Thursday.
“So, we’ll get a 25-basis-point cut,” Stein said, citing weak economic data. “But I realize that at this point the ECB doesn’t really want to commit to a particular path.”
– Sam Meredith
European markets: Here are the opening calls
European markets are expected to open mixed Thursday.
of England FTSE 100 The index is expected to open 31 points higher at 8,360, in Germany DAX France, up 21 points to 19,472 CAC Italy rose 4 points to 7,495 FTSE MIB According to data from IG, it fell 10 points to 34,482.
The main focus for investors today is the European Central Bank’s latest monetary policy decision. Meanwhile, revenue comes from ABB, Nestle, Pernod Ricard, Publicis and Nokia.
Other data releases include European trade balance figures and inflation data.
– Holly Elliott
CNBC Pro: These 9 biotech stocks will double and double again this year, analysts say
Nine healthcare stocks have more than doubled this year and still have more than 100% upside potential, according to analysts.
CNBC Pro screened 85,000 stocks globally for stocks with a 100% upside in 2024, reviewed by at least five or more analysts, and an average price target indicating more than 100% upside potential.
Biotech stocks have risen an average of 188% this year and have averaged gains of 150%.
CNBC Pro subscribers can read more here.
– Ganesh Rao
CNBC Pro: Barclays names UK ‘conviction’ stock ideas for fourth quarter – boosts two over 35%
Barclays has named a raft of global stocks it has dubbed “conviction stock ideas with catalysts” for investors to consider buying by the end of the year.
The bank’s list includes six overweight stocks from the UK, two of which account for more than 35%.
CNBC Pro subscribers can read more here.
– Amala Balakrishna
