1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,560 --> 00:00:17,920 Speaker 3: Now, let's take a look at some of the moves. 5 00:00:18,160 --> 00:00:21,800 Speaker 1: The stock moves today in Europe were joined by Chloe Meley, 6 00:00:21,880 --> 00:00:25,520 Speaker 1: our Bloomberg Reporter Morning. Chloe, I want to start with Nesley. 7 00:00:25,800 --> 00:00:27,840 Speaker 1: There's a lot of drama going on at the top there. 8 00:00:28,040 --> 00:00:31,080 Speaker 1: We've seen the stock down, but pairing some of the 9 00:00:31,200 --> 00:00:34,920 Speaker 1: earlier losses. Is that because the attention is turning from 10 00:00:34,960 --> 00:00:37,120 Speaker 1: the old CEO to the new CEO. 11 00:00:37,120 --> 00:00:40,000 Speaker 4: Perhaps, yes, potentially so, as you say, quite a scandalous 12 00:00:40,040 --> 00:00:41,960 Speaker 4: morning for Finesle, I think that's the best way to 13 00:00:41,960 --> 00:00:42,279 Speaker 4: put it. 14 00:00:42,280 --> 00:00:42,360 Speaker 1: So. 15 00:00:42,440 --> 00:00:45,880 Speaker 4: The CEO, Laura Frex, was dismissed for having an undisclosed 16 00:00:45,880 --> 00:00:48,839 Speaker 4: affair in the workplace with a direct subordinate, which the 17 00:00:48,840 --> 00:00:52,720 Speaker 4: company said was a violation of its code of conduct. Obviously, 18 00:00:52,760 --> 00:00:54,760 Speaker 4: such a big change at the top creates a lot 19 00:00:54,800 --> 00:00:57,840 Speaker 4: of uncertainty of the direction of the company, and we 20 00:00:57,880 --> 00:01:01,520 Speaker 4: could see that reflected in the initial share move this morning. 21 00:01:01,960 --> 00:01:04,320 Speaker 4: That's obviously an added challenge for ESLA. The shares are 22 00:01:04,360 --> 00:01:06,880 Speaker 4: already in a tough spot this year. It's having to 23 00:01:06,920 --> 00:01:10,319 Speaker 4: deal with weakening volumes and it's really struggling to revive 24 00:01:10,360 --> 00:01:13,479 Speaker 4: those And of course this is more turbulence in leadership. 25 00:01:13,520 --> 00:01:16,759 Speaker 4: You know. The Freks came in after the exit last 26 00:01:16,800 --> 00:01:19,479 Speaker 4: year of my Mark Schneider, who was let go due 27 00:01:19,480 --> 00:01:22,759 Speaker 4: to weak performance. But now the hope, as you say, 28 00:01:22,840 --> 00:01:26,000 Speaker 4: is maybe that this new CEO could potentially provide that 29 00:01:26,080 --> 00:01:29,640 Speaker 4: much needed stability. So the new CEO is Philip Narrattil. 30 00:01:29,720 --> 00:01:34,119 Speaker 4: He's the head of then Espresso brand and Bloomberg attache, 31 00:01:34,160 --> 00:01:36,760 Speaker 4: and said that he has the potential to maybe be 32 00:01:36,920 --> 00:01:39,440 Speaker 4: a positive influence on growth, and the fact that he 33 00:01:39,520 --> 00:01:42,000 Speaker 4: is young and therefore you will probably have quite a 34 00:01:42,080 --> 00:01:45,160 Speaker 4: long tenure is an advantage there for that stability. So 35 00:01:45,440 --> 00:01:47,360 Speaker 4: that might be why the shares are pairing some of 36 00:01:47,360 --> 00:01:47,880 Speaker 4: those losses. 37 00:01:47,920 --> 00:01:51,240 Speaker 1: I wonder if there's more sensitivity to these sorts of issues, Caroline, 38 00:01:51,280 --> 00:01:56,520 Speaker 1: after that Coldplay concert, yes, oh, the kiss cam incident, yes, 39 00:01:57,600 --> 00:01:58,560 Speaker 1: slightly unforgettable. 40 00:01:58,800 --> 00:02:01,800 Speaker 3: But it's also because there have been a number of 41 00:02:01,800 --> 00:02:04,520 Speaker 3: other CEOs over recent years that you could name that 42 00:02:04,600 --> 00:02:09,800 Speaker 3: have also gotten into trouble over relationships in the workplace. 43 00:02:10,639 --> 00:02:13,200 Speaker 3: So I think that's also it seems to be part 44 00:02:13,240 --> 00:02:17,680 Speaker 3: of maybe a wider issue in terms of other stories 45 00:02:17,760 --> 00:02:19,680 Speaker 3: that we're thinking about. I think this is also a 46 00:02:19,720 --> 00:02:24,840 Speaker 3: really fascinating story about vaping. British American tobacco down this morning, 47 00:02:25,040 --> 00:02:25,960 Speaker 3: and it's about vapes. 48 00:02:26,160 --> 00:02:26,680 Speaker 2: Yeah it is. 49 00:02:26,720 --> 00:02:30,639 Speaker 4: So it was downgraded to an underperform of rating by RBC, 50 00:02:31,000 --> 00:02:34,119 Speaker 4: and RBC said that profit expectations for the new category 51 00:02:34,200 --> 00:02:38,200 Speaker 4: businesses were seriously overblown. So those new category products include, 52 00:02:38,240 --> 00:02:41,760 Speaker 4: as you say, vapes, but it also includes heated products 53 00:02:41,960 --> 00:02:45,040 Speaker 4: like a glow so it's actually something that heats tobacco 54 00:02:45,120 --> 00:02:47,000 Speaker 4: instead of burning it. I've never heard of it either, 55 00:02:47,680 --> 00:02:50,919 Speaker 4: and also modern oral products so that as a nicotine 56 00:02:50,960 --> 00:02:54,160 Speaker 4: pouches that are really popular in Scandinavia and upcoming kind 57 00:02:54,160 --> 00:02:58,079 Speaker 4: of everywhere now as well. RBC said that in heated tobacco, 58 00:02:58,440 --> 00:03:01,079 Speaker 4: beat was too small compared to the dominant player there, 59 00:03:01,080 --> 00:03:03,840 Speaker 4: which is Philip Morris, and that in vapes the competition 60 00:03:03,960 --> 00:03:06,760 Speaker 4: is just too intense, and it said that it is 61 00:03:06,800 --> 00:03:10,000 Speaker 4: really hardly surprising that those new category products failed to 62 00:03:10,040 --> 00:03:11,839 Speaker 4: turn a profit in twenty twenty four. 63 00:03:12,600 --> 00:03:15,400 Speaker 3: You know, I've been watching a Netflix TV series that 64 00:03:15,480 --> 00:03:17,520 Speaker 3: actually has the main character who happens to be a 65 00:03:17,560 --> 00:03:21,639 Speaker 3: CEO using one of those yeah all products. I think 66 00:03:21,639 --> 00:03:23,520 Speaker 3: that's It's the first time I've ever seen it on screen. 67 00:03:23,520 --> 00:03:26,720 Speaker 3: I just wanted to play that in as. 68 00:03:25,919 --> 00:03:28,600 Speaker 1: They do exist. Yes, let me finally just end on 69 00:03:28,639 --> 00:03:33,040 Speaker 1: our favorite sector, Clary the luxury space, and some optimism 70 00:03:33,040 --> 00:03:33,720 Speaker 1: for LVMH. 71 00:03:33,919 --> 00:03:37,240 Speaker 4: Yeah, some optimism as you say, from LVMHN Caring as well. 72 00:03:37,280 --> 00:03:39,600 Speaker 4: So both of those are up this morning on the 73 00:03:39,600 --> 00:03:42,800 Speaker 4: back of an upgrade from HSBC. They are both upgraded 74 00:03:42,840 --> 00:03:45,600 Speaker 4: to buy rating. This is obviously interesting given that the 75 00:03:45,680 --> 00:03:47,600 Speaker 4: luxury sector has been having quite a tough time. It's 76 00:03:47,640 --> 00:03:50,119 Speaker 4: been dealing with obviously tire from Certainty, but then also 77 00:03:50,240 --> 00:03:52,840 Speaker 4: quite a lot of weak consumer sentiment in markets like 78 00:03:52,920 --> 00:03:56,960 Speaker 4: China in Japan. But this upgrade from HSBC seems to 79 00:03:57,000 --> 00:04:00,000 Speaker 4: indicate that maybe the sector could be turning a corner. Obviously, 80 00:04:00,200 --> 00:04:02,480 Speaker 4: for Caring, there's also a new CEO coming and it 81 00:04:02,640 --> 00:04:05,080 Speaker 4: is the man that managed to turn around Renault, so 82 00:04:05,120 --> 00:04:09,040 Speaker 4: there's maybe some optimism there as well. Interestingly, HSBC did 83 00:04:09,080 --> 00:04:11,880 Speaker 4: also downgrade MS at the same time as it upgraded 84 00:04:12,200 --> 00:04:15,760 Speaker 4: LVMH and Caring, which is quite significant given the status 85 00:04:15,800 --> 00:04:18,599 Speaker 4: of MS. As this kind of luxury company that is 86 00:04:18,640 --> 00:04:20,000 Speaker 4: able to weather those storms. 87 00:04:21,520 --> 00:04:25,560 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 88 00:04:25,640 --> 00:04:28,200 Speaker 2: us throughout the day for the latest roundup of companies 89 00:04:28,279 --> 00:04:31,400 Speaker 2: making news on Wall Street and for the latest market 90 00:04:31,400 --> 00:04:35,880 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 91 00:04:36,000 --> 00:04:39,479 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 92 00:04:39,560 --> 00:04:41,039 Speaker 2: the Bloomberg Business app.