WEBVTT - Burberry Drops, 3i Plunges, Telefonica Gains 

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, 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 take a look at some of the stocks on

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<v Speaker 3>the move today in Europe. I'm James will Caught with

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<v Speaker 3>Stephen Carroll and we're joined by Bloomberg Reports at Chloe

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<v Speaker 3>Mery Chloe. Let's start with Burbury News out this morning.

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<v Speaker 3>How is the market reacting.

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<v Speaker 4>Well, there's been actually quite a lot of weakness today

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<v Speaker 4>for Birbury, despite having better than expected sales. But it

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<v Speaker 4>seems that investors actually wanted more and that the beat

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<v Speaker 4>was perhaps not good enough to match those very high

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<v Speaker 4>expectations that we had going into those earnings, and so

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<v Speaker 4>Burbery also had quite a fairly fairly cautious outlook. It

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<v Speaker 4>said that the geopolitical and economic uncertainty as a result

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<v Speaker 4>of the war in Iran may actually hurt shopper confidence

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<v Speaker 4>going forward, and of course that echoes what we've heard

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<v Speaker 4>from the luxury sector throughout this earning season, with LVMH

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<v Speaker 4>Caring and even MS, which is traditionally a lot more resilient.

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<v Speaker 4>All of those companies are saying that they had felt

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<v Speaker 4>the impact of the war in Iran.

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<v Speaker 5>And so the turnaround for Barbary is technically working.

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<v Speaker 4>We've seen very solid growth in the US in China,

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<v Speaker 4>which of course had two very important markets for the

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<v Speaker 4>luxury sector. But the key worry here for investors is

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<v Speaker 4>that the turnaround is still quite fragile in that the

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<v Speaker 4>conflict might actually derail what has been quite a steady

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<v Speaker 4>recovery up until now, and so that's why.

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<v Speaker 5>We're seeing some of that weakness this morning for Birbary.

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<v Speaker 1>We'll turn into the retail space next and a plunge

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<v Speaker 1>in shares for three I. This is to do with

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<v Speaker 1>its holding at the discount retailer Action.

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<v Speaker 5>Yeah.

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<v Speaker 4>So three A is a private equity firm and so

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<v Speaker 4>as you've mentioned, the largest investment of that three I

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<v Speaker 4>has is Action, and so this is a company that

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<v Speaker 4>can be found all over Europe.

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<v Speaker 5>It sells things like a low.

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<v Speaker 4>Cost DIY tools, toiletries, things like that, and Action represents

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<v Speaker 4>more than seventy percent of the portfolio value for three EYES.

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<v Speaker 4>So the performance there is very very important, and unfortunately

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<v Speaker 4>the performance wasn't that good. So there was a sales

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<v Speaker 4>growth of about two percent year to date, which is

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<v Speaker 4>less than half of the pace that we had a

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<v Speaker 4>year ago.

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<v Speaker 5>And there was particular weakness.

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<v Speaker 4>In France and in Germany, and essentially the weakness in

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<v Speaker 4>France is seemingly spread to Germany since the start of

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<v Speaker 4>the crisis in the Middle East. So it seems to

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<v Speaker 4>point to the fact that even really low cost retailers,

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<v Speaker 4>very affordable retailers, are struggling in this very difficult consumer environment.

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<v Speaker 4>We've seen a lot of those retailers worn about the impact.

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<v Speaker 4>We had a dune Elm cut its guidance recently. Of course,

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<v Speaker 4>clothing retailers like H and M a warning of price

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<v Speaker 4>pressures going forward, and it seems that even very cheap

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<v Speaker 4>goods like the ones that action cells are not getting sold.

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<v Speaker 4>And so we're seeing a huge drop for three I

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<v Speaker 4>this morning on the back of that.

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<v Speaker 3>And finally earnings to Telefonica, what is the latest.

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<v Speaker 5>Yeah, it's good, pretty good day for Telephonica.

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<v Speaker 4>Slight increase in first quarter earnings and that was boosted

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<v Speaker 4>by two things in particular, so really good performance in Brazil,

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<v Speaker 4>which is a very important market for Telephonica, and also

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<v Speaker 4>a less competitive environment in Spain, and so that's really

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<v Speaker 4>big boost for the company. That is about six months

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<v Speaker 4>into its strategic plan and it is still working on

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<v Speaker 4>winning over investors after that strategic plan that it announced

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<v Speaker 4>a few months ago included cutting the dividend and also

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<v Speaker 4>cutting free cash flow projections. And so now investors are

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<v Speaker 4>really turning towards tending their attention towards any sign that

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<v Speaker 4>Telephonica might be seeking to do large deals as part

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<v Speaker 4>of the chairman's ambitions to consolidate markets.

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<v Speaker 5>Where the company is operating.

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<v Speaker 4>And so we have those good earnings in this potential

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<v Speaker 4>for M and A that is driving those shares.

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<v Speaker 2>This morning the Stock Mover's Report from Bloomberg Radio. Check

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