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 dive into some of the stocks on the move
Speaker 3: today in Europe. I'm Lizzie Burden. I'm alongside Caroline Hepcat
Speaker 3: and we're joined by opimog reporter Chloe Melee. Chloe, We've
Speaker 3: got to talk about Lorril down on some disappointing sales
Speaker 3: growth because we're worth it might not be the sentiment
Speaker 3: investors right now.
Speaker 1: Yeah, absolutely so. Yeah, Loreel shas you said, are getting
Speaker 1: hit quite hard this morning because of those disappointing sales
Speaker 1: for the third quarter, and that was due primarily to
Speaker 1: a lot of weakness in the US market. So one
Speaker 1: of the key problems that Loreal is really over exposed
Speaker 1: to the makeup category in the US, and that is
Speaker 1: a category that has been struggling lately. In consumer demand
Speaker 1: in the US is quite weak just generally. There's signs
Speaker 1: of improvement in China where it's all quite good demand
Speaker 1: for the more kind of high end side of those
Speaker 1: beauty products, but that really wasn't enough to offset that
Speaker 1: drag from the US, and the CEO also was quite
Speaker 1: cautious about China, saying that analysts should not get too
Speaker 1: excited because one good quarter does not mean that there's
Speaker 1: a trend there. So disappointing sales, a cautious commentary. All
Speaker 1: of that led to that weakness in the shares this morning.
Speaker 1: Perhaps Lorel is hoping that some M and A could
Speaker 1: boost growth. We remember that over the weekend we had
Speaker 1: the news about Lorel buying the fragrance make a House
Speaker 1: of Creed from Caring. It was also named as a
Speaker 1: preferred bidder to buy a stake in Georgio Armani last month,
Speaker 1: so we'll be keeping an eye on.
Speaker 3: That as well. Okay, so that on Lorel, Barclay's though
Speaker 3: is announced a narrow earnings be and also this five
Speaker 3: hundred million pound share buyback. Investors seemed to be viewing
Speaker 3: that fairly positively.
Speaker 1: Yeah, absolutely so. It actually upgraded it's gudin has been
Speaker 1: the interesting come as well, announced that five hundred million
Speaker 1: buy back, said it was now going to move towards
Speaker 1: quarterly share buybacks. And all of that is by the
Speaker 1: fact that it actually had to almost quadruple all the
Speaker 1: provisions related to the MOTI Finance readdress program. But obviously
Speaker 1: the market reacted quite positively to the upgrade and the
Speaker 1: buyer back. Of course, if we look at the actual numbers,
Speaker 1: it looks a little bit mixed to Equity's revenue actually
Speaker 1: fell short of expectations, fixed income did a bit better,
Speaker 1: So it seems like Barclay's actually missed out on some
Speaker 1: of the boosts from the market volatility that the US
Speaker 1: banks had actually flagged last week. It's also worth noting
Speaker 1: that the investment bank booked a one hundred and ten
Speaker 1: million pound a credit impairment charge for a client, and
Speaker 1: the CEO mentioned that the bank remains vigilant across the
Speaker 1: lending book, which of course is related to that stress
Speaker 1: in the in the credit market that we've been talking
Speaker 1: about recently. So it's pretty good so far, but there's
Speaker 1: been a little bit of caution there as well.
Speaker 3: And of course we've got our rye on the European
Speaker 3: chip makers, the likes of st Micro. Given the West
Speaker 3: Texas Instruments outlook that came out sd micro down two
Speaker 3: point seven percent, is that the only reason?
Speaker 1: Yeah, Well, it seems like st Micro and also be
Speaker 1: semi Infinian. So those chip makers that are exposed to
Speaker 1: the industrial and automotive chip sector, because, as you mentioned,
Speaker 1: their pair over in the US Sexis Instrument provided quite
Speaker 1: a disappointing forecast and then said that the recovery in
Speaker 1: those end markets was slowing down. So the key takeaway
Speaker 1: for those European chip makers is that, you know, the
Speaker 1: industry is in recovery, but it's quite a muted recovery,
Speaker 1: muted rebound, and so that's dragging down those shares in
Speaker 1: st micro Infinia, even as the all of the talk
Speaker 1: about the AA boom has led to quite a lot
Speaker 1: of bullishnists in that semiconductor sector. There's also the exposure
Speaker 1: to those, you know, maybe less less interesting and less
Speaker 1: sexy and markets, but they are also quite crucial, like
Speaker 1: industrials and automotive.
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on
Speaker 2: you YouTube, Bloomberg dot com, and on Applecarplay and Android
Speaker 2: Auto with the Bloomberg Business app
Speaker 3: MHM