WEBVTT - Whitbread Drops, Hays Slumps, Richemont Down

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

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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

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<v Speaker 3>Let's have a look at the stocks on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hepgar with Tom McKenzie

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<v Speaker 3>and we're joined by Bloomberg's Equities with Ported Joe Eastern

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<v Speaker 3>Morning Joe. Let's start with the hospitality group Whitbread Everything Premiere.

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<v Speaker 3>But the share price it's seen.

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<v Speaker 1>Yes, full credit to Lenny Henry for that on I

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<v Speaker 1>think so he gets a shout out to Whipbreade So

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<v Speaker 1>Whipbread shares they're down two point seven percent this morning,

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<v Speaker 1>this after an update from the Premier in owner.

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<v Speaker 3>Now.

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<v Speaker 1>Interestingly, it is the UK that's seeing the weak markets.

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<v Speaker 1>The UK sales down around two percent in the latest

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<v Speaker 1>court to some of their other regions actually doing pretty well.

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<v Speaker 1>Germany had a big jump in their market revenue, so

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<v Speaker 1>German up around thirteen percent, but kind of the UK

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<v Speaker 1>woes continuing. It has been weak before, we sort of

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<v Speaker 1>drop down in some of their summer volumes last year

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<v Speaker 1>and it looks like that continues. But I think, you know,

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<v Speaker 1>given the weather at the moment, surely those UK staycations

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<v Speaker 1>are going to be popular over the next month or so,

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<v Speaker 1>so maybe they'll get a.

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<v Speaker 3>Boost coming out in London today.

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<v Speaker 4>Who needs Malaga?

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<v Speaker 1>No exactly, it's just me me. You can swapt Malaga

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<v Speaker 1>for Margate, you know, perfect, that works.

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<v Speaker 4>Joe Joe's heading to the beach this weekend. Clearly that

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<v Speaker 4>the pubs will be will be busy as well, won't

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<v Speaker 4>they a bit of a bit of a bit of

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<v Speaker 4>a boost there to uh to the to the whining

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<v Speaker 4>and dining sector. But there is a bit of a

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<v Speaker 4>theme because in terms of in terms of the UK

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<v Speaker 4>and some challenges, recruiters has always a kind of really

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<v Speaker 4>good gauge in terms of what's happening in the labor market.

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<v Speaker 4>We know that on a macro level the jobs market

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<v Speaker 4>here unfortunately, is starting to soften a bit. Is this

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<v Speaker 4>is the is the is the slump in the stock

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<v Speaker 4>price for for Hayes today and linked to that? Or

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<v Speaker 4>is there something else going on?

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<v Speaker 1>Yes, I really enjoy actually getting these statements because they are,

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<v Speaker 1>as you say, they're kind of a front runner of

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<v Speaker 1>what's happening in the economy. Because these companies like Hayes

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<v Speaker 1>Page they all see what's going on in the recruitment market,

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<v Speaker 1>possibly before you even get the O Andes state. So

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<v Speaker 1>Hayes today saying that they have seen another decline in

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<v Speaker 1>their conditions, so tough conditions is what they're saying in

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<v Speaker 1>the recruitment market, and List saying they expect to cut

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<v Speaker 1>their earnings estments by more than twenty percent for this

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<v Speaker 1>year and next given the declines in fees and also

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<v Speaker 1>just not as many positions being advertised. So Hayes stopped

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<v Speaker 1>absolutely slammed. To date it was down around fifteen percent,

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<v Speaker 1>it's now down thirteen percent. Seeing Page Group dropping as well,

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<v Speaker 1>that was down around eight percent. And also this spreading

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<v Speaker 1>into Europe, so a Deco was a big one, down

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<v Speaker 1>four percent. And also Ranstad so all the big names

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<v Speaker 1>that went over in Amsterdam, all the big names taking

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<v Speaker 1>notice of this, and really a rough day for recruitments

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<v Speaker 1>this morning.

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<v Speaker 3>Okay, So that from Hayes and last, the European watchmakers

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<v Speaker 3>are having a tough time. They seem to be suffering

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<v Speaker 3>the same fate as other kind of luxury names too.

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<v Speaker 3>I mean, watches were so hot for such a long time,

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<v Speaker 3>aren't they.

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<v Speaker 1>Yeah, so it's a continued theme as you say this,

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<v Speaker 1>So it's Swiss watch exports falling by almost ten percent

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<v Speaker 1>in May. Now that is led by a large dropping

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<v Speaker 1>shipments to the US. That's potentially some indication of the

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<v Speaker 1>trade war. But as you said there, Caroline, this has

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<v Speaker 1>been a theme in terms of people kind of getting

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<v Speaker 1>luxury fatigue and the aspirational buyers kind of moving away

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<v Speaker 1>from purchases that they maybe would have done a year

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<v Speaker 1>or two ago. So we're seeing Swatch declining that's done

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<v Speaker 1>around two percent to Dave Richemont also lower and watched

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<v Speaker 1>the Switzerland all of those stocks dropping this morning given

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<v Speaker 1>this week data. So it's continued weakness and kind of,

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<v Speaker 1>as I say, the aspirational luxury fatigue trade continuing hitting

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<v Speaker 1>watches this morning.

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<v Speaker 4>As you reach for your Rolex joke and I just

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<v Speaker 4>have this as well because the clock is ticking on

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<v Speaker 4>our segment here. But the SNB, the Swiss Natural Bank

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<v Speaker 4>cutting is stress rates to zero percent, and Caroline was

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<v Speaker 4>pointing out that the Swiss frank is up about eight

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<v Speaker 4>percent versus the US dollar, so that may be also

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<v Speaker 4>a factor they're cutting rates. Maybe puts a little bit

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<v Speaker 4>more softness on occurrency. There's a really rallied as a

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<v Speaker 4>safe havevorite and put pressure on those exported. It just

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<v Speaker 4>makes those Swiss luxury watch is more expensive.

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<v Speaker 3>I'm just delighted that you're trying to make me look

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<v Speaker 3>smart with the comment.

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<v Speaker 1>Delighted about the clock ticking on the watch segment as well.

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<v Speaker 3>I got that, Joe.

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<v Speaker 1>I'm just sorrt to give that, give that little credit.

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