WEBVTT - Sodexo, Babcock, Swatch

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, the.

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<v Speaker 2>Stock Movers podcast. This is your roundup of companies Mickey

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<v Speaker 2>News on Wall Street and beyond harnessing the power of

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<v Speaker 1>Now, let's take a look at some stocks on the

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<v Speaker 1>move today in Europe. We're joined by Bloomberg's equity supporter

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<v Speaker 1>Joe Eastern. Joe, good morning, and we're starting with the

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<v Speaker 1>French food services giants Sadeksu, dropping the motions twenty eighteen

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<v Speaker 1>after cutting revenue guidance.

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<v Speaker 3>Yeah. Absolutely so. It is the catering sector in focus.

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<v Speaker 3>Today's Sadexo, as you say, sliding that stock currently down

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<v Speaker 3>fifteen percent over in Paris. The company warning of a

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<v Speaker 3>drop off in some contracts across North America. Specifically, they

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<v Speaker 3>say the education and healthcare sectors are where they're seeing weakness. Now,

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<v Speaker 3>it's interesting to me because yesterday we did see an

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<v Speaker 3>analyst over at XAMP Powerabus sighting their own data saying

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<v Speaker 3>that they've seen exactly that, and they downgraded one of

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<v Speaker 3>the other big firms, Compass, and this sector hit for

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<v Speaker 3>a second day now. It has been pretty rough couple

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<v Speaker 3>of days for those stocks. Compasses down another two percent

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<v Speaker 3>after a five percent decline yesterday SSP, which is the

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<v Speaker 3>company that makes the upper crusts that we all love

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<v Speaker 3>to grab when we're at the train station, that one

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<v Speaker 3>is down two percent. That's really a wide reaching impact

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<v Speaker 3>on the catering sector this morning.

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<v Speaker 1>And look, European defense stocks continue to make headlines.

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<v Speaker 2>We have one about to join the Footy one hundred.

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<v Speaker 2>What's going on there?

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<v Speaker 3>Yes, this was really interesting because it's in line with

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<v Speaker 3>the theme of the of the year today. Really of course,

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<v Speaker 3>as you mentioned, their valerie with the defence stocks all

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<v Speaker 3>doing really well. So Babcock, it's the UK at firm.

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<v Speaker 3>It has risen fifty percent this year. It makes warships,

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<v Speaker 3>so it's got a big contract with the UK Navy

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<v Speaker 3>to make five warships, contract worth around one point five

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<v Speaker 3>billion pounds and since the outbreak of the war in

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<v Speaker 3>Ukraine they've been paid by the UK to maintain vehicles

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<v Speaker 3>that Britain has sent to Ukraine to help in the

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<v Speaker 3>fight against Russia. So that stock has done really well

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<v Speaker 3>and it will join the Foots one hundred on Monday

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<v Speaker 3>after Hargreed's Landsdown comes out. Because they've been taken over

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<v Speaker 3>by a group of private equity companies, but really it's

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<v Speaker 3>kind of a really good indicator of how well defense

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<v Speaker 3>in general has done this year. And the foots one hundred,

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<v Speaker 3>therefore getting another defense stock called Babcock.

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<v Speaker 1>And time for one more Joe news on Swiss watch exports,

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<v Speaker 1>driving sector lower as well.

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<v Speaker 3>Ticking the sector lower, I might go if we're going

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<v Speaker 3>to continue the puns there, So look watch stocks down,

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<v Speaker 3>so Rechmont, which is the maker of Cartier watches, Swatched

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<v Speaker 3>down as well. Those stocks both down around four percent

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<v Speaker 3>this morning. Elvimh which owns tag who that one's down

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<v Speaker 3>two percent, and Watch the Switzerland, the big retail down

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<v Speaker 3>three percent. Swiss data showing that Switzerland supported are exported

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<v Speaker 3>excuse me, eight percent fewer watches in February than it

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<v Speaker 3>did a year ago. That is actually Switzerland's third largest

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<v Speaker 3>export watches, really showing how big they are, and that

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<v Speaker 3>apparently the only ones doing well are the cheaper watches,

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<v Speaker 3>the ones that are worth less than about two hundred quid,

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<v Speaker 3>so much more my kind of area than the roll exits.

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<v Speaker 3>Those are the only ones we're seeing growth, So high

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<v Speaker 3>end watches not doing it all well according to this data.

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<v Speaker 3>Continuing a long run trend or at least over the

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<v Speaker 3>past year or so, we've seen with these watch export

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<v Speaker 3>numbers coming down and therefore weakness across that sector this

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<v Speaker 3>morning in European trading.

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<v Speaker 1>Yeah, I mean, it's interesting that because of the three

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<v Speaker 1>price brackets that we've been given by these export numbers.

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<v Speaker 1>So as you say, the ones below two hundred Swiss

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<v Speaker 1>francs showing a positive result, those mid market ones are

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<v Speaker 1>between five hundred and three thousand Swis franks fell by

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<v Speaker 1>fifteen percent, and there was above three thousand francs felled

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<v Speaker 1>by seven point three percent. I feel that there's an economic

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<v Speaker 1>theory re illustrating here through one prices DL income gross. Indeed,

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<v Speaker 1>somebody put that in the Joe Eastern oraculd supporter. Thank

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<v Speaker 1>you very much for joining.

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<v Speaker 2>Us the Stock Movers podcast from Bloomberg Radio. Check back

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