Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today in Europe. I'm James will Caught with
Speaker 3: Stephen Carroll and we're joined by Bloomberg Reports at Chloe
Speaker 3: Mery Chloe. Let's start with Burbury News out this morning.
Speaker 3: How is the market reacting.
Speaker 4: Well, there's been actually quite a lot of weakness today
Speaker 4: for Birbury, despite having better than expected sales. But it
Speaker 4: seems that investors actually wanted more and that the beat
Speaker 4: was perhaps not good enough to match those very high
Speaker 4: expectations that we had going into those earnings, and so
Speaker 4: Burbery also had quite a fairly fairly cautious outlook. It
Speaker 4: said that the geopolitical and economic uncertainty as a result
Speaker 4: of the war in Iran may actually hurt shopper confidence
Speaker 4: going forward, and of course that echoes what we've heard
Speaker 4: from the luxury sector throughout this earning season, with LVMH
Speaker 4: Caring and even MS, which is traditionally a lot more resilient.
Speaker 4: All of those companies are saying that they had felt
Speaker 4: the impact of the war in Iran.
Speaker 5: And so the turnaround for Barbary is technically working.
Speaker 4: We've seen very solid growth in the US in China,
Speaker 4: which of course had two very important markets for the
Speaker 4: luxury sector. But the key worry here for investors is
Speaker 4: that the turnaround is still quite fragile in that the
Speaker 4: conflict might actually derail what has been quite a steady
Speaker 4: recovery up until now, and so that's why.
Speaker 5: We're seeing some of that weakness this morning for Birbary.
Speaker 1: We'll turn into the retail space next and a plunge
Speaker 1: in shares for three I. This is to do with
Speaker 1: its holding at the discount retailer Action.
Speaker 5: Yeah.
Speaker 4: So three A is a private equity firm and so
Speaker 4: as you've mentioned, the largest investment of that three I
Speaker 4: has is Action, and so this is a company that
Speaker 4: can be found all over Europe.
Speaker 5: It sells things like a low.
Speaker 4: Cost DIY tools, toiletries, things like that, and Action represents
Speaker 4: more than seventy percent of the portfolio value for three EYES.
Speaker 4: So the performance there is very very important, and unfortunately
Speaker 4: the performance wasn't that good. So there was a sales
Speaker 4: growth of about two percent year to date, which is
Speaker 4: less than half of the pace that we had a
Speaker 4: year ago.
Speaker 5: And there was particular weakness.
Speaker 4: In France and in Germany, and essentially the weakness in
Speaker 4: France is seemingly spread to Germany since the start of
Speaker 4: the crisis in the Middle East. So it seems to
Speaker 4: point to the fact that even really low cost retailers,
Speaker 4: very affordable retailers, are struggling in this very difficult consumer environment.
Speaker 4: We've seen a lot of those retailers worn about the impact.
Speaker 4: We had a dune Elm cut its guidance recently. Of course,
Speaker 4: clothing retailers like H and M a warning of price
Speaker 4: pressures going forward, and it seems that even very cheap
Speaker 4: goods like the ones that action cells are not getting sold.
Speaker 4: And so we're seeing a huge drop for three I
Speaker 4: this morning on the back of that.
Speaker 3: And finally earnings to Telefonica, what is the latest.
Speaker 5: Yeah, it's good, pretty good day for Telephonica.
Speaker 4: Slight increase in first quarter earnings and that was boosted
Speaker 4: by two things in particular, so really good performance in Brazil,
Speaker 4: which is a very important market for Telephonica, and also
Speaker 4: a less competitive environment in Spain, and so that's really
Speaker 4: big boost for the company. That is about six months
Speaker 4: into its strategic plan and it is still working on
Speaker 4: winning over investors after that strategic plan that it announced
Speaker 4: a few months ago included cutting the dividend and also
Speaker 4: cutting free cash flow projections. And so now investors are
Speaker 4: really turning towards tending their attention towards any sign that
Speaker 4: Telephonica might be seeking to do large deals as part
Speaker 4: of the chairman's ambitions to consolidate markets.
Speaker 5: Where the company is operating.
Speaker 4: And so we have those good earnings in this potential
Speaker 4: for M and A that is driving those shares.
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