Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg data.
Speaker 3: Let's look at some of the socks on the move
Speaker 3: today here in Europe. I'm Callen Hepget with Lizzie Burden.
Speaker 3: We're joined by our reporter Clone Malay. Good morning, Good morning,
Speaker 3: So Richmore the results out today, how are investors reacting well?
Speaker 1: Richmore really confirmed its status this morning as a standout
Speaker 1: performer in that luxury sector, so as sales came in
Speaker 1: better than expected, and that was driven in particular by
Speaker 1: very good demand for a Cartier jewelry. And so the
Speaker 1: reason why Richmore is doing that much better that than
Speaker 1: it's peers is is because of that focus on jewelry,
Speaker 1: because it's often seen as a better investment than you know,
Speaker 1: expensive clothes or expensive bags. And so when people really
Speaker 1: want to splash out, then they tend to do it
Speaker 1: more with maybe a nice necklace, nice bracelet. And so
Speaker 1: that place is a litch more in quite a sharp
Speaker 1: a contrast with what we've heard from other luxury players.
Speaker 1: So evmah Caring, et cetera. All of those companies have
Speaker 1: had a tougher time lately, especially with the war in
Speaker 1: the Middle East really hitting those cells, and so the
Speaker 1: assumption now among investors among analysts is that the luxury
Speaker 1: rebound that was hopedful this year might actually be delayed
Speaker 1: a little bit. Further, Ashmore is exposed to the Middle ease.
Speaker 1: It gets about nine percent of its revenue from the
Speaker 1: Middle East in Africa, and sales did start to slip
Speaker 1: in the last quarter in this region, but the chairman
Speaker 1: said that it's not going to make or break our
Speaker 1: balance sheets, so it seems to be pretty resilient, and
Speaker 1: so that explains a big, big jump into shares this morning.
Speaker 3: And Chloe, no deal for Pooch pweak.
Speaker 2: We're debating how to pronounce it in the radio studio,
Speaker 2: but talk us through how the recent news has affected
Speaker 2: the share price.
Speaker 1: Yeah, I think it's because it's Catalan, isn't it. So
Speaker 1: there's a huge drop for that company, as you mentioned,
Speaker 1: because of its merger talks with Esteloda, which have been
Speaker 1: going on since March, have collapsed and the deal apparently
Speaker 1: fell apart because of the makeup art is Charlotte Tilbury's
Speaker 1: demands regarding her compensation in that deal, So that was
Speaker 1: a really major sticking point because Tilbury sold her brand
Speaker 1: to Pooch in twenty twenty but still holds a minority
Speaker 1: a stake. But apart from that, some analysts that already
Speaker 1: expressed some skepticism about whether that deal would actually end
Speaker 1: up happening, saying that it might be difficult for Esteloda
Speaker 1: to integrate more brands at this current time because it's
Speaker 1: currently managing a turnaround of its own as well. But
Speaker 1: the deal would have created one of the largest perfume
Speaker 1: and skincare companies in the world. It would have been
Speaker 1: able to compete with a giant like Gloreal for example,
Speaker 1: So it is understandable that is quite a bit of
Speaker 1: disappointment from investors this morning, and that explains what we've
Speaker 1: seen the shares for Pooch for the most since their
Speaker 1: IPO in twenty twenty four.
Speaker 3: Yeah, okay, really interesting on the other demands from one
Speaker 3: part of the business and what it has meant in
Speaker 3: terms of Evonic, So moves there tell us about what
Speaker 3: this business does.
Speaker 1: Firstly, Oh yeah, so Ivonic is a specialty chemicals company,
Speaker 1: so it supplies and markets like farm and animal nutrition
Speaker 1: there's a bit of weakness across that chemical sector actually
Speaker 1: this morning because we had a note from JP Morgan
Speaker 1: saying that sector blues are expected to return for those
Speaker 1: European chemical companies and they do ungraded Evonic as part
Speaker 1: of that, alongside other firms as well. So chemical companies
Speaker 1: have had a pretty good earning season. They were able
Speaker 1: to pass on a rising raw materials costs onto customers.
Speaker 1: They also really benefited from clients as stockpiling to avoid
Speaker 1: shortages because those clients had anticipated that they would be
Speaker 1: supplied chain disruptions and price hikes later. So chemicals companies
Speaker 1: in Europe had really benefited from that. But the analyst
Speaker 1: from JP Morgan are saying that some recent data suggests
Speaker 1: that actually any near term tailwinds from the Iron War
Speaker 1: might actually be lower than expected and might also already
Speaker 1: already be fading possibly, and so the fact that this
Speaker 1: boost from the iround war might actually be more short
Speaker 1: lived than originally expected, that's being taken as quite a
Speaker 1: negative for Ivonic, and so we're seeing that down this morning.
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