WEBVTT - LVMH Down, Wise Listing, Monte dei Paschi Up

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg data.

0:00:16.360 --> 0:00:17.840
<v Speaker 1>Now, let's take a look as up of the stocks

0:00:17.880 --> 0:00:20.040
<v Speaker 1>on the move today in Europe. I'm Lazy Burden with

0:00:20.079 --> 0:00:23.919
<v Speaker 1>Stephen Carroll and were joined by Bloomberg reporter Chloe Melee. Chloe,

0:00:24.079 --> 0:00:27.200
<v Speaker 1>seems like LVMH is not popping the bubble this morning.

0:00:27.400 --> 0:00:30.400
<v Speaker 3>Why yeah, So Trump is hitting the French where it's

0:00:30.400 --> 0:00:33.320
<v Speaker 3>the most, which is Champagne. Of course, Trump said he

0:00:33.320 --> 0:00:36.320
<v Speaker 3>would impose a two hundred percent a tariff on Champagne

0:00:36.320 --> 0:00:39.000
<v Speaker 3>if macon doesn't join his Board of Peace. So for

0:00:39.080 --> 0:00:41.240
<v Speaker 3>a little bit more a detail on this Board of Peace,

0:00:41.280 --> 0:00:45.200
<v Speaker 3>Trump is essentially demanding that nations pay one billion dollars

0:00:45.200 --> 0:00:48.880
<v Speaker 3>for permanent membership of the board, and some European leaders

0:00:48.880 --> 0:00:51.800
<v Speaker 3>have voiced some concerns about that plan, given that it

0:00:51.880 --> 0:00:55.920
<v Speaker 3>appears to place the ultimate decision making power with Trump.

0:00:55.960 --> 0:00:59.000
<v Speaker 3>And so maconn has rejected an invitation to join that

0:00:59.080 --> 0:01:01.360
<v Speaker 3>Board of Peace and has said, well, if you refuse,

0:01:01.440 --> 0:01:04.399
<v Speaker 3>then I'm going to retaliate by targeting your wine and

0:01:04.440 --> 0:01:07.679
<v Speaker 3>your champagne, and LVMH is affected by this given it

0:01:07.720 --> 0:01:10.560
<v Speaker 3>has a big wine and spirits division. It is the

0:01:10.640 --> 0:01:13.720
<v Speaker 3>smallest segment out of everything that it does, but it

0:01:13.800 --> 0:01:16.960
<v Speaker 3>still did bring almost six billion euros in revenue in

0:01:17.000 --> 0:01:19.479
<v Speaker 3>twenty twenty four, so it's not a negligible part of

0:01:19.520 --> 0:01:22.440
<v Speaker 3>that business. And it's also the segment that's actually been

0:01:22.480 --> 0:01:25.000
<v Speaker 3>the weakest recently over the last few quarters, and so

0:01:25.400 --> 0:01:28.880
<v Speaker 3>this potential tariff would of course make that much worse.

0:01:28.920 --> 0:01:33.119
<v Speaker 3>And LVMH was already under pressure yesterday from Trump's planned

0:01:33.120 --> 0:01:36.200
<v Speaker 3>to impose ten percent tariffs on goods from countries that

0:01:36.240 --> 0:01:39.679
<v Speaker 3>have opposed his efforts to acquire a greenland. So LVMH

0:01:39.800 --> 0:01:41.680
<v Speaker 3>is caught in that crossfire. And there's a bit of

0:01:41.760 --> 0:01:45.119
<v Speaker 3>a double whammy there as well with that potential champagne tariff.

0:01:45.200 --> 0:01:47.600
<v Speaker 4>Yeah, and of course it is sort of on almost

0:01:47.640 --> 0:01:50.840
<v Speaker 4>offhand comment from the US President on his way to

0:01:50.920 --> 0:01:54.480
<v Speaker 4>Davos talking about putting this two hundred percent tariff on

0:01:54.520 --> 0:01:56.440
<v Speaker 4>wines and champagne. So we wait to see what sort

0:01:56.480 --> 0:01:58.480
<v Speaker 4>of detail may follow on that one as well, but

0:01:58.520 --> 0:02:04.640
<v Speaker 4>he certainly floated the idea. Turning next to the payments service,

0:02:04.880 --> 0:02:06.280
<v Speaker 4>why is what needs from them.

0:02:06.840 --> 0:02:08.640
<v Speaker 3>Well, it was It's good Dave, for Wi's shares have

0:02:08.720 --> 0:02:11.760
<v Speaker 3>jumped quite quite impressively this morning after it confirmed that

0:02:12.040 --> 0:02:14.640
<v Speaker 3>it was on track to shift its primary listing to

0:02:14.720 --> 0:02:17.440
<v Speaker 3>the US within the first half of twenty twenty six,

0:02:17.680 --> 0:02:21.280
<v Speaker 3>and it also reported some really strong numbers with a

0:02:21.320 --> 0:02:24.079
<v Speaker 3>twenty one percent increase in income in the third quarter,

0:02:24.400 --> 0:02:27.639
<v Speaker 3>and that was also a head of expectations. The goal

0:02:27.680 --> 0:02:30.360
<v Speaker 3>of the primary listing shifting to the US is to

0:02:30.400 --> 0:02:33.560
<v Speaker 3>increase its profile in that country, and it said that

0:02:33.600 --> 0:02:36.120
<v Speaker 3>it wants to partner with more than four thousand banks

0:02:36.280 --> 0:02:39.160
<v Speaker 3>across the US and get them to use its money

0:02:39.160 --> 0:02:43.320
<v Speaker 3>transfer services. When it announced the plans to shift that listing, though,

0:02:43.320 --> 0:02:45.200
<v Speaker 3>it was seen as kind of a big blow to

0:02:45.240 --> 0:02:48.760
<v Speaker 3>the London Stock Exchange. We'd seen you know, companies like

0:02:48.800 --> 0:02:52.600
<v Speaker 3>Flutter and CRCH already shifting their listing their primary listing

0:02:53.040 --> 0:02:55.280
<v Speaker 3>to the US, and it was a sign that the

0:02:55.400 --> 0:02:58.600
<v Speaker 3>you know, low valuations, leak week liquidity, all of that

0:02:58.720 --> 0:03:02.799
<v Speaker 3>was really driving company away from London. Now there are

0:03:02.840 --> 0:03:04.960
<v Speaker 3>some signs of life in the London Stock Exchange, but

0:03:05.280 --> 0:03:09.160
<v Speaker 3>obviously this today is a reminder that the exchange has

0:03:09.360 --> 0:03:11.680
<v Speaker 3>lost a company that is doing really really well, and

0:03:11.960 --> 0:03:14.680
<v Speaker 3>you know, the US Stock Exchange will be benefiting from that.

0:03:14.800 --> 0:03:15.200
<v Speaker 2>And Clarie.

0:03:15.240 --> 0:03:18.120
<v Speaker 1>Finally, Monte de Paski getting a boost from Italy's government

0:03:18.160 --> 0:03:19.079
<v Speaker 1>this morning tell us more.

0:03:19.160 --> 0:03:21.600
<v Speaker 3>Yeah, the Finance ministry in Italy is said to be

0:03:21.680 --> 0:03:24.840
<v Speaker 3>backing the CEO of Monte Pesci for another term, so

0:03:24.880 --> 0:03:27.760
<v Speaker 3>it's keen to kind of support a Luigi Lavaglio the

0:03:27.800 --> 0:03:31.200
<v Speaker 3>CEO because he managed to successfully turn around the bank

0:03:31.280 --> 0:03:34.800
<v Speaker 3>after a very difficult decade of restructuring. And he also

0:03:35.200 --> 0:03:39.720
<v Speaker 3>recently recently completed the seventeen billion dollar deal with to

0:03:39.800 --> 0:03:43.200
<v Speaker 3>buy the rival Medio Banker, and that has turned Pasci

0:03:43.280 --> 0:03:46.600
<v Speaker 3>into the third largest bank in Italy, and Lavaglio is

0:03:47.280 --> 0:03:50.280
<v Speaker 3>continuing to benefit from that support from the Finance ministry,

0:03:50.320 --> 0:03:53.520
<v Speaker 3>even though it's a takeover of Medio Banker is actually

0:03:53.520 --> 0:03:59.360
<v Speaker 3>currently under scrutiny by prosecutors. They're investing allegations of market manipulation,

0:03:59.800 --> 0:04:02.680
<v Speaker 3>and Lavaglio is still very much at the center of

0:04:02.760 --> 0:04:05.600
<v Speaker 3>all of this. But this continued support is probably being

0:04:05.640 --> 0:04:07.960
<v Speaker 3>taken well by investors and taken as a sign that

0:04:08.200 --> 0:04:10.480
<v Speaker 3>there won't be any disruption at the top for now,

0:04:11.000 --> 0:04:14.080
<v Speaker 3>and that stability there is being rewarded, and we've seen

0:04:14.160 --> 0:04:15.640
<v Speaker 3>Pasqui's shares moving.

0:04:15.520 --> 0:04:19.880
<v Speaker 2>Higher this morning the Stock Movers report from Bloomberg Radio.

0:04:20.400 --> 0:04:22.520
<v Speaker 2>Check back with us throughout the day for the latest

0:04:22.600 --> 0:04:25.800
<v Speaker 2>roundup of companies making news on Wall Street and for

0:04:25.880 --> 0:04:29.799
<v Speaker 2>the latest market moving headlines. Listen to Bloomberg Radio Live,

0:04:30.200 --> 0:04:33.799
<v Speaker 2>catch us on YouTube, Bloomberg dot com, and on Applecarplay

0:04:33.839 --> 0:04:36.440
<v Speaker 2>and Android Auto with the Bloomberg Business app.