WEBVTT - Richemont Climbs, Puig Falls, Evonik Downgrade

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

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg data.

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<v Speaker 3>Let's look at some of the socks on the move

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<v Speaker 3>today here in Europe. I'm Callen Hepget with Lizzie Burden.

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<v Speaker 3>We're joined by our reporter Clone Malay. Good morning, Good morning,

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<v Speaker 3>So Richmore the results out today, how are investors reacting well?

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<v Speaker 1>Richmore really confirmed its status this morning as a standout

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<v Speaker 1>performer in that luxury sector, so as sales came in

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<v Speaker 1>better than expected, and that was driven in particular by

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<v Speaker 1>very good demand for a Cartier jewelry. And so the

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<v Speaker 1>reason why Richmore is doing that much better that than

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<v Speaker 1>it's peers is is because of that focus on jewelry,

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<v Speaker 1>because it's often seen as a better investment than you know,

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<v Speaker 1>expensive clothes or expensive bags. And so when people really

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<v Speaker 1>want to splash out, then they tend to do it

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<v Speaker 1>more with maybe a nice necklace, nice bracelet. And so

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<v Speaker 1>that place is a litch more in quite a sharp

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<v Speaker 1>a contrast with what we've heard from other luxury players.

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<v Speaker 1>So evmah Caring, et cetera. All of those companies have

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<v Speaker 1>had a tougher time lately, especially with the war in

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<v Speaker 1>the Middle East really hitting those cells, and so the

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<v Speaker 1>assumption now among investors among analysts is that the luxury

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<v Speaker 1>rebound that was hopedful this year might actually be delayed

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<v Speaker 1>a little bit. Further, Ashmore is exposed to the Middle ease.

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<v Speaker 1>It gets about nine percent of its revenue from the

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<v Speaker 1>Middle East in Africa, and sales did start to slip

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<v Speaker 1>in the last quarter in this region, but the chairman

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<v Speaker 1>said that it's not going to make or break our

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<v Speaker 1>balance sheets, so it seems to be pretty resilient, and

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<v Speaker 1>so that explains a big, big jump into shares this morning.

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<v Speaker 3>And Chloe, no deal for Pooch pweak.

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<v Speaker 2>We're debating how to pronounce it in the radio studio,

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<v Speaker 2>but talk us through how the recent news has affected

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<v Speaker 2>the share price.

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<v Speaker 1>Yeah, I think it's because it's Catalan, isn't it. So

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<v Speaker 1>there's a huge drop for that company, as you mentioned,

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<v Speaker 1>because of its merger talks with Esteloda, which have been

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<v Speaker 1>going on since March, have collapsed and the deal apparently

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<v Speaker 1>fell apart because of the makeup art is Charlotte Tilbury's

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<v Speaker 1>demands regarding her compensation in that deal, So that was

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<v Speaker 1>a really major sticking point because Tilbury sold her brand

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<v Speaker 1>to Pooch in twenty twenty but still holds a minority

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<v Speaker 1>a stake. But apart from that, some analysts that already

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<v Speaker 1>expressed some skepticism about whether that deal would actually end

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<v Speaker 1>up happening, saying that it might be difficult for Esteloda

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<v Speaker 1>to integrate more brands at this current time because it's

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<v Speaker 1>currently managing a turnaround of its own as well. But

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<v Speaker 1>the deal would have created one of the largest perfume

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<v Speaker 1>and skincare companies in the world. It would have been

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<v Speaker 1>able to compete with a giant like Gloreal for example,

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<v Speaker 1>So it is understandable that is quite a bit of

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<v Speaker 1>disappointment from investors this morning, and that explains what we've

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<v Speaker 1>seen the shares for Pooch for the most since their

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<v Speaker 1>IPO in twenty twenty four.

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<v Speaker 3>Yeah, okay, really interesting on the other demands from one

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<v Speaker 3>part of the business and what it has meant in

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<v Speaker 3>terms of Evonic, So moves there tell us about what

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<v Speaker 3>this business does.

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<v Speaker 1>Firstly, Oh yeah, so Ivonic is a specialty chemicals company,

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<v Speaker 1>so it supplies and markets like farm and animal nutrition

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<v Speaker 1>there's a bit of weakness across that chemical sector actually

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<v Speaker 1>this morning because we had a note from JP Morgan

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<v Speaker 1>saying that sector blues are expected to return for those

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<v Speaker 1>European chemical companies and they do ungraded Evonic as part

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<v Speaker 1>of that, alongside other firms as well. So chemical companies

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<v Speaker 1>have had a pretty good earning season. They were able

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<v Speaker 1>to pass on a rising raw materials costs onto customers.

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<v Speaker 1>They also really benefited from clients as stockpiling to avoid

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<v Speaker 1>shortages because those clients had anticipated that they would be

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<v Speaker 1>supplied chain disruptions and price hikes later. So chemicals companies

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<v Speaker 1>in Europe had really benefited from that. But the analyst

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<v Speaker 1>from JP Morgan are saying that some recent data suggests

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<v Speaker 1>that actually any near term tailwinds from the Iron War

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<v Speaker 1>might actually be lower than expected and might also already

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<v Speaker 1>already be fading possibly, and so the fact that this

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<v Speaker 1>boost from the iround war might actually be more short

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<v Speaker 1>lived than originally expected, that's being taken as quite a

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<v Speaker 1>negative for Ivonic, and so we're seeing that down this morning.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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