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 --> 00:00:15,840 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,239 --> 00:00:19,200 Speaker 3: Let's have a think about what individual stocks are moving. 5 00:00:19,440 --> 00:00:21,639 Speaker 3: So let us look at the individual names on the 6 00:00:21,680 --> 00:00:24,120 Speaker 3: move today here in Europe. I'm Caroline Hepga and I'm 7 00:00:24,160 --> 00:00:29,040 Speaker 3: joined by Bloomberg reporter Climberla. Good morning. The start of 8 00:00:29,120 --> 00:00:34,519 Speaker 3: our conversation will be Reno some good ratings guy and 9 00:00:34,600 --> 00:00:35,320 Speaker 3: who from. 10 00:00:35,280 --> 00:00:38,360 Speaker 1: Yeah SO has one beck its investment grade of status 11 00:00:38,360 --> 00:00:41,400 Speaker 1: from SMP SO. SMP has said that Reno had managed 12 00:00:41,440 --> 00:00:45,559 Speaker 1: to really refresh its product lineup and broaden its presence 13 00:00:45,600 --> 00:00:48,720 Speaker 1: outside of Europe, and so those two things should really 14 00:00:48,800 --> 00:00:51,880 Speaker 1: help with revenue growth and with volumes over the next 15 00:00:52,000 --> 00:00:54,360 Speaker 1: couple of years. And this is really your vote of 16 00:00:54,400 --> 00:00:58,000 Speaker 1: confidence for the new CEO started just over the summer. 17 00:00:58,520 --> 00:01:01,080 Speaker 1: He's been very careful with costs, so that's been a 18 00:01:01,080 --> 00:01:03,720 Speaker 1: big part of his strategy. And he also said that 19 00:01:03,760 --> 00:01:06,920 Speaker 1: he really wanted to expand in markets like Latin America 20 00:01:06,959 --> 00:01:10,679 Speaker 1: and India rather than a China in the US because 21 00:01:10,720 --> 00:01:13,480 Speaker 1: of that quite weak demand in Europe. And so this 22 00:01:13,840 --> 00:01:16,800 Speaker 1: strategy seems to be paying off, and this rating upgrade 23 00:01:16,840 --> 00:01:19,800 Speaker 1: this morning really boosted the shares for Reno, and this 24 00:01:19,840 --> 00:01:22,800 Speaker 1: is much needed relief for a company that's not been 25 00:01:22,920 --> 00:01:25,760 Speaker 1: having the best year. Of course, alongside the rest of that, 26 00:01:25,880 --> 00:01:29,280 Speaker 1: carmaking a sector in Europe that's obviously been struggling quite 27 00:01:29,280 --> 00:01:31,679 Speaker 1: a bit, but this seems to be a company that's 28 00:01:31,720 --> 00:01:32,640 Speaker 1: on the road to recovery. 29 00:01:32,680 --> 00:01:33,080 Speaker 2: Perhaps. 30 00:01:33,280 --> 00:01:37,959 Speaker 3: Okay, let's think about European sportswear and Puma in particular. 31 00:01:38,520 --> 00:01:40,920 Speaker 1: Yeah, so what's happening with Nike over in the US 32 00:01:41,000 --> 00:01:43,880 Speaker 1: is not good news for Puma essentially. So Nike has 33 00:01:43,920 --> 00:01:46,759 Speaker 1: worn that sales would be much weaker for this quarter, 34 00:01:46,800 --> 00:01:49,400 Speaker 1: the war quarter that is starting that started on December 35 00:01:49,440 --> 00:01:51,920 Speaker 1: the first, and that is because of lower demand for 36 00:01:52,120 --> 00:01:55,320 Speaker 1: its Converse brand and also weak sales in China. So 37 00:01:55,440 --> 00:01:59,240 Speaker 1: this doesn't bode very well for Puma because they also 38 00:01:59,280 --> 00:02:02,520 Speaker 1: have a huge market in China, and this seems like 39 00:02:02,880 --> 00:02:06,880 Speaker 1: there's no recovery yet in consumer sentiment in that country, 40 00:02:06,920 --> 00:02:09,880 Speaker 1: with a customers continuing to kind of cut back on 41 00:02:09,919 --> 00:02:13,560 Speaker 1: that discretionary spending, and Nike is more exposed to that 42 00:02:13,680 --> 00:02:17,120 Speaker 1: than brands like Adidas and a Sports for example, a 43 00:02:17,120 --> 00:02:21,360 Speaker 1: local Chinese brand, because Nike has failed to really deliver 44 00:02:21,400 --> 00:02:24,800 Speaker 1: a big, kind of standout model, and Chinese consumers also 45 00:02:24,960 --> 00:02:28,480 Speaker 1: increasingly want kind of very niche performance features that Nike 46 00:02:28,560 --> 00:02:31,040 Speaker 1: has not been able to deliver. And this is also 47 00:02:31,120 --> 00:02:34,160 Speaker 1: a problem for Puma because it's also a company that's 48 00:02:34,400 --> 00:02:38,400 Speaker 1: struggled to launch a product that really captures consumers attention, 49 00:02:38,520 --> 00:02:41,040 Speaker 1: and so that's probably going to be a big problem 50 00:02:41,080 --> 00:02:43,160 Speaker 1: moving forward for Puma as well, and we have seen 51 00:02:43,200 --> 00:02:45,639 Speaker 1: those shares are struggling this morning on the back of. 52 00:02:45,600 --> 00:02:50,280 Speaker 3: That interesting I was just reading GQ's article and look 53 00:02:50,280 --> 00:02:53,079 Speaker 3: at trainers for twenty twenty six. I need a pair 54 00:02:53,120 --> 00:02:54,720 Speaker 3: of trainers. So it happened to look at what the 55 00:02:54,760 --> 00:02:58,160 Speaker 3: trends are going to be and apparently I'm told weirder, chunky, 56 00:02:58,360 --> 00:03:01,760 Speaker 3: ballet trainers, all sorts of things. Yeah, anyway, it's happening, yeah, 57 00:03:01,960 --> 00:03:03,280 Speaker 3: under training department. 58 00:03:03,600 --> 00:03:03,799 Speaker 1: Right. 59 00:03:04,280 --> 00:03:10,040 Speaker 3: Let's also think about this FCA probe of a well 60 00:03:10,080 --> 00:03:11,040 Speaker 3: known company in the UK. 61 00:03:11,240 --> 00:03:14,840 Speaker 1: Yeah, so wh Smith is facing a probe. W Smith 62 00:03:14,919 --> 00:03:16,760 Speaker 1: is having a real tough time at the moment. So 63 00:03:17,000 --> 00:03:19,320 Speaker 1: we remember, of course, the accounting era from a few 64 00:03:19,320 --> 00:03:22,400 Speaker 1: months back, where it revealed that it had overstated its 65 00:03:22,480 --> 00:03:25,320 Speaker 1: result in the North American and North American business, so 66 00:03:25,400 --> 00:03:28,680 Speaker 1: it had overstated it by thirty million pounds. And since 67 00:03:28,720 --> 00:03:31,480 Speaker 1: then that has triggered a bunch of setbacks for the company. 68 00:03:31,520 --> 00:03:35,040 Speaker 1: We've seen shares plunging, We've they've had to delay their 69 00:03:35,080 --> 00:03:37,880 Speaker 1: results twice, they've had to cut their outlook twice as well. 70 00:03:38,080 --> 00:03:41,720 Speaker 1: The CEO resigned and today there's obviously yet another setback 71 00:03:41,760 --> 00:03:45,480 Speaker 1: with the financial regulator in the UK, the FCA, opening 72 00:03:45,520 --> 00:03:49,320 Speaker 1: an investigation into the company, and the FCA can take 73 00:03:49,400 --> 00:03:54,520 Speaker 1: enforcement actions when the companies have misleading public announcements, and 74 00:03:54,560 --> 00:03:57,680 Speaker 1: so it had fined Tesco, for example, about one hundred 75 00:03:57,720 --> 00:04:01,520 Speaker 1: and thirty million pounds back in twenty seventeen for overstating results. 76 00:04:01,520 --> 00:04:05,160 Speaker 1: So we'll see what the investigation actually actually triggers for 77 00:04:05,520 --> 00:04:08,200 Speaker 1: wh Smith. So it has this probe, and then it 78 00:04:08,280 --> 00:04:11,000 Speaker 1: also has cut its annual dividend for the first time 79 00:04:11,040 --> 00:04:13,840 Speaker 1: since the pandemics. We've got two big setbacks for the 80 00:04:13,840 --> 00:04:16,279 Speaker 1: company this morning. That's not going to help the shares 81 00:04:16,279 --> 00:04:19,480 Speaker 1: which are down about more than forty percent a year today, 82 00:04:19,520 --> 00:04:22,120 Speaker 1: and that of course doesn't really help with credibility and 83 00:04:22,160 --> 00:04:24,760 Speaker 1: makes it difficult for wh Smith to move forward, at 84 00:04:24,839 --> 00:04:25,360 Speaker 1: least for now. 85 00:04:26,360 --> 00:04:30,400 Speaker 2: The Stock Movers Report from Bloomberg Radio. 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