Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today in euro banking. So all cot with Karen Hepka,
Speaker 3: and we are joined by Bloomberg's Breaking News Out to
Speaker 3: the Louise Moon. Louise BMW are stalling again today in
Speaker 3: the markets.
Speaker 1: Why so they have issued essentially quite a surprising downgrade
Speaker 1: and a big one at that as well. There's just
Speaker 1: one month into them having a new CEO to kind
Speaker 1: of demonstrate demonstrates the huge task at hand for him.
Speaker 1: So margins, they have forecasts as low as one percent
Speaker 1: from six percent, and they're also planning additional cost savings
Speaker 1: beyond those that they have already announced. So details of
Speaker 1: those cost savings unclear. So there's obviously a question there
Speaker 1: as to whether that could result in job cups. But
Speaker 1: as I say, details unclear, but additional cost savings. Expect
Speaker 1: all of this to weigh on their business in the
Speaker 1: second half. And essentially they're saying that the main reasons
Speaker 1: for this are one the impact of the Middle East
Speaker 1: but two weak China demand. China is its biggest market,
Speaker 1: and there's a whole host of reasons. You know, there's
Speaker 1: the changing Chinese consumer. There's also the rise of and
Speaker 1: the ongoing long kind of long term rise of local brands.
Speaker 1: So yeah, wee could China demand for BMW? There showing
Speaker 1: this change in forecast is showing the huge toll both
Speaker 1: of those elements are taking on BMW had been viewed
Speaker 1: as better position than rivals, but this latest data or
Speaker 1: statement this morning essentially saying, essentially showing that that residence
Speaker 1: hasn't been enough to shield it from what has been
Speaker 1: quite a long ongoing shift in the European autos industry.
Speaker 4: So shares lumped as much as twelve percent analysts.
Speaker 1: One analyst called it a wake up call for the
Speaker 1: auto industry. So that on BMW, what about the shipping
Speaker 1: giant HAPAG Lloyd rising there looks like Deale's news.
Speaker 4: Yeah, well potential deal's news.
Speaker 1: So shares that was much a six point one percent
Speaker 1: and then they paired that slightly in morning trading. There's
Speaker 1: been a report that the Italian billionaire owner of Mediterranean
Speaker 1: shipping company he's inquired with shareholders about buying a stake
Speaker 1: in hapag Lloyd, so all very potential and any potential
Speaker 1: approach if he does that would face obstacles. There's two
Speaker 1: other anchor investors they're buying bound by an agreement that
Speaker 1: has recently been extended through to twenty thirty, so a
Speaker 1: few hurdles to get through if that approach were to happen,
Speaker 1: but it is boosting shares.
Speaker 4: Shares have been largely flat since April.
Speaker 1: They rose quite significantly at the start of the ararmore
Speaker 1: and then they declined, so it's giving a bit of
Speaker 1: impetus behind those shares.
Speaker 3: This morning, an AO World apparently giving the UK government
Speaker 3: the whole music treatment tell us more well.
Speaker 1: So, yeah, this is the midcaps makeap stock the electronics
Speaker 1: retailer bit of a a mixed one. So initially looks
Speaker 1: quite positive hitting what they're saying as record profits. They
Speaker 1: sold far more TVs because of the World Cup, so
Speaker 1: looks quite positive at first glance, but actually shares falling
Speaker 1: as much as four point two percent this morning. Part
Speaker 1: of that could be profit taking, they have been trading
Speaker 1: at higher levels recently, but it's also potentially an example
Speaker 1: of kind of the real world impact of all this
Speaker 1: energy price shock of everything that is going on and
Speaker 1: the impact on the consumer, they flagged and uncertain in
Speaker 1: their words backdrop in its in their kind of look
Speaker 1: ahead section of their statement this morning, and also flagged
Speaker 1: rising input costs. It's the type of company that's very
Speaker 1: exposed to consumer sentiment.
Speaker 4: Obviously, it sells a lot of big ticket.
Speaker 1: Items, so any changing in consumer behavior will really impact
Speaker 1: AO world. So despite the good numbers that they cited
Speaker 1: this morning, looking ahead, there's potentially a lot of untestiny
Speaker 1: and that's impacting shares in morning trading.
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