1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,560 --> 00:00:18,120 Speaker 1: Let's take a look at some stocks on the move 5 00:00:18,120 --> 00:00:20,880 Speaker 1: today in Europe. I'm Stephen Carrol with Caroline Hepger, and 6 00:00:20,960 --> 00:00:24,120 Speaker 1: we're joined by Bloomberg reporter Chloe Melee. Chloe, good morning. 7 00:00:24,200 --> 00:00:27,120 Speaker 1: Let's start with Universal Music. Its shares have just been 8 00:00:27,160 --> 00:00:30,800 Speaker 1: halted again in the session, down twenty three percent. What's 9 00:00:30,840 --> 00:00:31,320 Speaker 1: gone wrong? 10 00:00:32,000 --> 00:00:32,599 Speaker 2: Yeah, well, the. 11 00:00:32,560 --> 00:00:36,479 Speaker 3: Earnings were just not that good. So the subscription revenue 12 00:00:36,479 --> 00:00:39,920 Speaker 3: missed expectations for the second quarter and that's led to 13 00:00:40,360 --> 00:00:44,320 Speaker 3: this massive drop for Universal this morning. So, you know, 14 00:00:44,360 --> 00:00:47,040 Speaker 3: when we look at the different dynamics in the market, 15 00:00:47,120 --> 00:00:50,920 Speaker 3: the fact that Spotify and Apple Music raised their prices 16 00:00:51,000 --> 00:00:53,959 Speaker 3: for their premium subscription is that actually should have been 17 00:00:54,040 --> 00:00:57,680 Speaker 3: quite a big boost for Universal Music. But the company 18 00:00:57,760 --> 00:01:01,320 Speaker 3: said this morning that this was offset by market share headwinds, 19 00:01:01,360 --> 00:01:03,840 Speaker 3: and it didn't really go into more details about what 20 00:01:03,880 --> 00:01:07,440 Speaker 3: that means, but that could mean that Warner Music and 21 00:01:07,480 --> 00:01:10,920 Speaker 3: Sony Music, that two other big record labels, are capturing 22 00:01:10,959 --> 00:01:13,800 Speaker 3: more of that market share. We also know that record 23 00:01:13,880 --> 00:01:16,960 Speaker 3: labels are facing the very real threat of AI with 24 00:01:17,200 --> 00:01:19,960 Speaker 3: so many of those AA tools now able to replicate 25 00:01:20,400 --> 00:01:23,679 Speaker 3: human made songs, and so that is a huge challenge 26 00:01:23,800 --> 00:01:26,640 Speaker 3: for Universal and some of its peers to contend with. 27 00:01:27,120 --> 00:01:31,520 Speaker 3: And Universal has decided to try and get ahead of 28 00:01:31,560 --> 00:01:34,679 Speaker 3: that by you know, having some partnerships with Nvidio and 29 00:01:34,680 --> 00:01:38,840 Speaker 3: then some smaller kind of AI song companies. So it's 30 00:01:38,880 --> 00:01:42,160 Speaker 3: trying to get ahead of that. But overall the earnings 31 00:01:42,160 --> 00:01:45,839 Speaker 3: were really really weakened, and listed that the results really 32 00:01:45,920 --> 00:01:49,480 Speaker 3: raise more questions than answers for the fate of that company. 33 00:01:49,640 --> 00:01:52,360 Speaker 4: Yeah, okay, so the chepers following the most in two years. 34 00:01:52,760 --> 00:01:55,480 Speaker 4: Let's also think about the airlines Group IAG. How are 35 00:01:55,520 --> 00:01:56,080 Speaker 4: they fairing. 36 00:01:56,440 --> 00:01:58,920 Speaker 3: Yeah, well, the weakness in that airline sector has been 37 00:01:59,040 --> 00:02:02,520 Speaker 3: very evident this season, and the latest victim is IG 38 00:02:02,680 --> 00:02:06,000 Speaker 3: which is the owner of British Airways primarily so it 39 00:02:06,080 --> 00:02:08,800 Speaker 3: gave up on its growth plans for this year because 40 00:02:09,160 --> 00:02:11,200 Speaker 3: of course of the conflict in the Middle East, which 41 00:02:11,440 --> 00:02:14,600 Speaker 3: has really pushed up those fuel costs and that has 42 00:02:14,680 --> 00:02:17,919 Speaker 3: meant that they had to boost ticket prices and that 43 00:02:17,960 --> 00:02:21,919 Speaker 3: means less consumer demand as a result. At least IG 44 00:02:22,040 --> 00:02:24,600 Speaker 3: won't be alone in this, we had a lot of 45 00:02:24,639 --> 00:02:27,800 Speaker 3: other airlines saying that they had the same issues. Ryan 46 00:02:27,880 --> 00:02:31,359 Speaker 3: and an EasyJet in the UK both reporting that drop in 47 00:02:31,440 --> 00:02:35,240 Speaker 3: profit also this quarter, both blaming those jet fuel prices. 48 00:02:35,520 --> 00:02:39,600 Speaker 3: And then just yesterday in we had Air France also 49 00:02:39,639 --> 00:02:43,120 Speaker 3: cutting its capacity outlook because of this higher fuel costs 50 00:02:43,160 --> 00:02:46,360 Speaker 3: and what they said as was as well aggressive pricing 51 00:02:46,400 --> 00:02:50,200 Speaker 3: from some of those lower cost airlines. Of course, this 52 00:02:50,320 --> 00:02:53,040 Speaker 3: is particularly worrying for that sector, given that these are 53 00:02:53,040 --> 00:02:55,040 Speaker 3: supposed to be the very busy months, you know, this 54 00:02:55,080 --> 00:02:57,960 Speaker 3: is the summer travel season. It really is important for 55 00:02:58,000 --> 00:03:00,760 Speaker 3: those company and there's of course no clarity on when 56 00:03:00,760 --> 00:03:01,680 Speaker 3: that conflict might end. 57 00:03:01,800 --> 00:03:03,919 Speaker 4: I think the most interesting thing I've read about that 58 00:03:04,120 --> 00:03:06,359 Speaker 4: is that in the airline industry in the past, when 59 00:03:06,400 --> 00:03:09,720 Speaker 4: you have really big challenges, they've used it. The airline 60 00:03:09,760 --> 00:03:12,560 Speaker 4: companies have used it to hoover up market share, you know, 61 00:03:12,680 --> 00:03:15,560 Speaker 4: to stay in the game. But actually now things are 62 00:03:15,560 --> 00:03:18,040 Speaker 4: so difficult, they're actually they're cutting capacity, which I think 63 00:03:18,120 --> 00:03:19,240 Speaker 4: is like an interesting point. 64 00:03:19,360 --> 00:03:24,200 Speaker 1: Yeah, for sure. And finally, Chloe, the sportsware company Puma, 65 00:03:24,360 --> 00:03:25,280 Speaker 1: why do we learn from them? 66 00:03:25,720 --> 00:03:28,160 Speaker 3: Well, Puma is down this morning, but they're actually not 67 00:03:28,600 --> 00:03:31,600 Speaker 3: in that bed of a shape. So second quarter revenue 68 00:03:31,639 --> 00:03:34,120 Speaker 3: did fall, and so that's dragging down the sheds a 69 00:03:34,120 --> 00:03:37,480 Speaker 3: little bit today, but the outlook is actually looking quite positive. 70 00:03:37,520 --> 00:03:37,680 Speaker 4: You know. 71 00:03:37,720 --> 00:03:42,000 Speaker 3: It's rolling out a new products for particularly running football training, 72 00:03:42,120 --> 00:03:44,240 Speaker 3: so some of those areas that I've seen as kind 73 00:03:44,240 --> 00:03:47,120 Speaker 3: of growth drivers going forward. And that's meant that the 74 00:03:47,200 --> 00:03:49,920 Speaker 3: loss for this quarter was actually in line with what 75 00:03:49,960 --> 00:03:52,680 Speaker 3: analysts had expected. Is starting to narrow a little bit. 76 00:03:53,080 --> 00:03:55,880 Speaker 3: And this all fits with what the new CEO had said, 77 00:03:55,920 --> 00:03:58,080 Speaker 3: you know, he said that this would be a transition year, 78 00:03:58,680 --> 00:04:02,440 Speaker 3: that it's time for Puma to liquidate excess inventories, to 79 00:04:02,600 --> 00:04:05,520 Speaker 3: invest in marketing, to roll out new products, and that 80 00:04:05,960 --> 00:04:08,400 Speaker 3: the twenty twenty seven would be actually the time for 81 00:04:08,520 --> 00:04:11,320 Speaker 3: the rebound. And so it seems that the company is 82 00:04:11,560 --> 00:04:14,760 Speaker 3: actually on track for that. But it seems that today 83 00:04:15,040 --> 00:04:17,720 Speaker 3: investors have been just a little bit more focused on 84 00:04:17,760 --> 00:04:20,680 Speaker 3: that sales drop rather than on this ongoing turnaround. 85 00:04:21,600 --> 00:04:25,640 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 86 00:04:25,720 --> 00:04:28,280 Speaker 2: us throughout the day for the latest roundup of companies 87 00:04:28,360 --> 00:04:31,480 Speaker 2: making news on Wall Street and for the latest market 88 00:04:31,480 --> 00:04:35,960 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, 89 00:04:36,080 --> 00:04:39,560 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 90 00:04:39,640 --> 00:04:41,119 Speaker 2: the Bloomberg Business App.