1 00:00:02,520 --> 00:00:07,000 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 --> 00:00:16,160 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:16,920 --> 00:00:19,160 Speaker 3: Look at some individual stocks on the move today. Here 5 00:00:19,200 --> 00:00:21,800 Speaker 3: in I'm Caroline Hepka and I'm joined by Bloomberg reporter 6 00:00:22,000 --> 00:00:25,400 Speaker 3: Chloe Malay. As usual, Good morning, Chloe. Let's begin with 7 00:00:25,520 --> 00:00:29,920 Speaker 3: Burbury putting in a really strong showing today. Is their 8 00:00:30,000 --> 00:00:33,600 Speaker 3: growth here to stay? Is that a question for business 9 00:00:33,760 --> 00:00:35,840 Speaker 3: or is it about whether you're fashion East? 10 00:00:35,840 --> 00:00:37,640 Speaker 1: And maybe I don't know, Yeah, I know, I don't 11 00:00:37,680 --> 00:00:39,800 Speaker 1: own any any Babary, but it seems that they are 12 00:00:39,840 --> 00:00:42,160 Speaker 1: doing pretty well. So they were done to a retail 13 00:00:42,200 --> 00:00:44,519 Speaker 1: sales growth for the first time in two years, and 14 00:00:44,560 --> 00:00:47,000 Speaker 1: that was thanks to really strong them on in particular 15 00:00:47,040 --> 00:00:50,120 Speaker 1: in the region that includes China, which is something that 16 00:00:50,159 --> 00:00:53,640 Speaker 1: echoes what other luxury names have been saying this season. 17 00:00:53,680 --> 00:00:57,480 Speaker 1: So we remember LVMH last month and mentioning that rebound 18 00:00:57,520 --> 00:01:01,320 Speaker 1: in that Chinese market as well. Forbury, this also confirms 19 00:01:01,360 --> 00:01:04,800 Speaker 1: that the turnaround under the new CEO is working, so 20 00:01:05,120 --> 00:01:08,640 Speaker 1: he's refocused on the Burbary classics of trench coats and 21 00:01:08,760 --> 00:01:12,960 Speaker 1: scarfs leaving behind a previous push into handbags that really failed, 22 00:01:13,560 --> 00:01:15,559 Speaker 1: and that seems to be paying off, kind of going 23 00:01:15,600 --> 00:01:18,679 Speaker 1: back to its roots. And he's also made some big 24 00:01:18,720 --> 00:01:21,600 Speaker 1: cost cuts, so earlier this year the company announced plans 25 00:01:21,640 --> 00:01:24,120 Speaker 1: to get rid of about a fifth of its workforce. 26 00:01:24,200 --> 00:01:27,040 Speaker 1: So all of that this kind of refocus on the 27 00:01:27,600 --> 00:01:30,600 Speaker 1: British roots of Burbery, and then also this cost cuts 28 00:01:30,640 --> 00:01:32,800 Speaker 1: seemed to be working quite well and paying off, and 29 00:01:32,800 --> 00:01:35,080 Speaker 1: als have said that all the boxes were ticked, that 30 00:01:35,160 --> 00:01:38,240 Speaker 1: the execution was on track. The strategic plan is looking 31 00:01:38,280 --> 00:01:41,720 Speaker 1: quite robust, and the potential rewards will still outweigh the 32 00:01:41,840 --> 00:01:45,000 Speaker 1: risks for Burbary. So overall, a pretty good print from 33 00:01:45,000 --> 00:01:48,400 Speaker 1: Berbery this morning. We saw that reflected in the shares rising, 34 00:01:48,400 --> 00:01:50,840 Speaker 1: although they've had some of those games now I think. 35 00:01:50,840 --> 00:01:54,280 Speaker 3: Yeah, absolutely, up as much as five percent this morning 36 00:01:54,320 --> 00:02:01,320 Speaker 3: for Burbery. Meanwhile, the pharmaceutical company Merk is yeah, driving 37 00:02:01,320 --> 00:02:03,920 Speaker 3: some conversations why so Yeah. 38 00:02:03,960 --> 00:02:08,120 Speaker 1: The German science Conlomber reported better than expected a profit 39 00:02:08,240 --> 00:02:11,040 Speaker 1: this morning, so that was thanks to strong sales of 40 00:02:11,080 --> 00:02:13,920 Speaker 1: its new tumor drugs, but then also really strong performance 41 00:02:14,240 --> 00:02:16,679 Speaker 1: in some parts of its life science unit, which is 42 00:02:16,720 --> 00:02:19,480 Speaker 1: the biggest division. For Merk, So the parts that did 43 00:02:19,480 --> 00:02:22,840 Speaker 1: particularly well are the ones that provide the equipment to 44 00:02:22,919 --> 00:02:26,280 Speaker 1: manufacture drugs, and that is a part of that business 45 00:02:26,280 --> 00:02:27,520 Speaker 1: that I had seen a little bit of a slow 46 00:02:27,560 --> 00:02:30,480 Speaker 1: down post pandemic because of de stocking, but now it's 47 00:02:30,520 --> 00:02:34,160 Speaker 1: reaccelerating again and the company is trying to revive growth 48 00:02:34,320 --> 00:02:38,320 Speaker 1: across all of its divisions, so that includes healthcare, life sciences, 49 00:02:38,320 --> 00:02:41,440 Speaker 1: and electronics as well, and doing that through acquisitions and 50 00:02:41,520 --> 00:02:44,560 Speaker 1: through a lot of cost control as well. So for example, 51 00:02:44,560 --> 00:02:48,040 Speaker 1: in terms of acquisitions, it recently bought the rare disease 52 00:02:48,080 --> 00:02:51,000 Speaker 1: specialist spring Works and that helped contribute to sales for 53 00:02:51,080 --> 00:02:54,000 Speaker 1: this quarter, so that was a boost there. For the 54 00:02:54,080 --> 00:02:58,120 Speaker 1: electronics division, they said that the demand that was related 55 00:02:58,160 --> 00:03:03,240 Speaker 1: to AI AI related semiconductor materials was still quite strong, 56 00:03:03,680 --> 00:03:06,120 Speaker 1: but that there was a delay in some big projects 57 00:03:06,160 --> 00:03:08,480 Speaker 1: and that was continuing to hurt the growth, which is 58 00:03:08,600 --> 00:03:12,520 Speaker 1: what echoes what we've seen from other companies within that 59 00:03:12,600 --> 00:03:17,120 Speaker 1: semiconductor sector more broadly and providers of equipment to that 60 00:03:17,200 --> 00:03:18,600 Speaker 1: semiconductor sector. 61 00:03:19,280 --> 00:03:22,440 Speaker 3: So that on Merk meanwhile, we are seeing a dop 62 00:03:22,600 --> 00:03:26,760 Speaker 3: for semens. What are the main challenges that they've been 63 00:03:26,800 --> 00:03:27,840 Speaker 3: talking about. 64 00:03:27,760 --> 00:03:29,760 Speaker 1: Yeah, so a lot to digest from Semens this morning, 65 00:03:29,800 --> 00:03:33,079 Speaker 1: so yeah, it actually sets some near end medium term targets. 66 00:03:33,120 --> 00:03:35,640 Speaker 1: It also announced a kind of a broader revamp that 67 00:03:35,680 --> 00:03:38,160 Speaker 1: includes trimming its steak in Semens Health and Airs, which 68 00:03:38,200 --> 00:03:40,520 Speaker 1: is the medical equipment unit that was spun off in 69 00:03:40,720 --> 00:03:43,240 Speaker 1: twenty eighteen, and the goal of that is free up 70 00:03:43,240 --> 00:03:46,040 Speaker 1: capital and invest more in AI and software, and so 71 00:03:46,080 --> 00:03:49,040 Speaker 1: analysts have said that that deconsolidation makes a lot of sense, 72 00:03:49,040 --> 00:03:51,800 Speaker 1: that it's a logical step to simplify the group, given 73 00:03:51,800 --> 00:03:54,720 Speaker 1: that there's very little synergy between Health and Ears, which 74 00:03:54,720 --> 00:03:57,200 Speaker 1: makes MRI scanners, and then Semens, which makes you know, 75 00:03:57,280 --> 00:04:00,800 Speaker 1: software for factory, so you know, those two very different things, 76 00:04:00,880 --> 00:04:03,880 Speaker 1: so simplifying it makes sense. But overall, the results and 77 00:04:03,880 --> 00:04:06,839 Speaker 1: the outlook disappointed a little bit, and we had JP 78 00:04:06,960 --> 00:04:09,720 Speaker 1: Morgan analysts calling the results quite mixed, saying that there's 79 00:04:09,760 --> 00:04:13,360 Speaker 1: pressure on margin, there's currency headwinds really hurting the business 80 00:04:13,400 --> 00:04:15,680 Speaker 1: as well, and that the medium term guidance is actually 81 00:04:15,760 --> 00:04:19,200 Speaker 1: quite opaque, that drag from the currency headwinds is really 82 00:04:19,440 --> 00:04:21,719 Speaker 1: the focus here, it seems. The company said that it 83 00:04:21,720 --> 00:04:26,160 Speaker 1: expects those currency fluctuations to strongly burden profit and sales 84 00:04:26,200 --> 00:04:29,080 Speaker 1: growth in twenty twenty six, so that clouds the outlook 85 00:04:29,080 --> 00:04:31,800 Speaker 1: a little and we saw that reflected in shares a 86 00:04:31,839 --> 00:04:33,760 Speaker 1: little bit weaker this morning as a result. 87 00:04:34,760 --> 00:04:38,800 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 88 00:04:38,880 --> 00:04:41,440 Speaker 2: us throughout the day for the latest roundup of companies 89 00:04:41,520 --> 00:04:44,599 Speaker 2: making news on Wall Street and for the latest market 90 00:04:44,640 --> 00:04:49,120 Speaker 2: moving headlines. 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