WEBVTT - Burberry Gains, Merck Up, Siemens Falls  

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg data.

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<v Speaker 3>Look at some individual stocks on the move today. Here

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<v Speaker 3>in I'm Caroline Hepka and I'm joined by Bloomberg reporter

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<v Speaker 3>Chloe Malay. As usual, Good morning, Chloe. Let's begin with

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<v Speaker 3>Burbury putting in a really strong showing today. Is their

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<v Speaker 3>growth here to stay? Is that a question for business

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<v Speaker 3>or is it about whether you're fashion East?

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<v Speaker 1>And maybe I don't know, Yeah, I know, I don't

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<v Speaker 1>own any any Babary, but it seems that they are

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<v Speaker 1>doing pretty well. So they were done to a retail

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<v Speaker 1>sales growth for the first time in two years, and

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<v Speaker 1>that was thanks to really strong them on in particular

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<v Speaker 1>in the region that includes China, which is something that

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<v Speaker 1>echoes what other luxury names have been saying this season.

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<v Speaker 1>So we remember LVMH last month and mentioning that rebound

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<v Speaker 1>in that Chinese market as well. Forbury, this also confirms

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<v Speaker 1>that the turnaround under the new CEO is working, so

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<v Speaker 1>he's refocused on the Burbary classics of trench coats and

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<v Speaker 1>scarfs leaving behind a previous push into handbags that really failed,

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<v Speaker 1>and that seems to be paying off, kind of going

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<v Speaker 1>back to its roots. And he's also made some big

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<v Speaker 1>cost cuts, so earlier this year the company announced plans

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<v Speaker 1>to get rid of about a fifth of its workforce.

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<v Speaker 1>So all of that this kind of refocus on the

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<v Speaker 1>British roots of Burbery, and then also this cost cuts

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<v Speaker 1>seemed to be working quite well and paying off, and

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<v Speaker 1>als have said that all the boxes were ticked, that

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<v Speaker 1>the execution was on track. The strategic plan is looking

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<v Speaker 1>quite robust, and the potential rewards will still outweigh the

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<v Speaker 1>risks for Burbary. So overall, a pretty good print from

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<v Speaker 1>Berbery this morning. We saw that reflected in the shares rising,

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<v Speaker 1>although they've had some of those games now I think.

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<v Speaker 3>Yeah, absolutely, up as much as five percent this morning

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<v Speaker 3>for Burbery. Meanwhile, the pharmaceutical company Merk is yeah, driving

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<v Speaker 3>some conversations why so Yeah.

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<v Speaker 1>The German science Conlomber reported better than expected a profit

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<v Speaker 1>this morning, so that was thanks to strong sales of

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<v Speaker 1>its new tumor drugs, but then also really strong performance

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<v Speaker 1>in some parts of its life science unit, which is

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<v Speaker 1>the biggest division. For Merk, So the parts that did

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<v Speaker 1>particularly well are the ones that provide the equipment to

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<v Speaker 1>manufacture drugs, and that is a part of that business

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<v Speaker 1>that I had seen a little bit of a slow

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<v Speaker 1>down post pandemic because of de stocking, but now it's

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<v Speaker 1>reaccelerating again and the company is trying to revive growth

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<v Speaker 1>across all of its divisions, so that includes healthcare, life sciences,

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<v Speaker 1>and electronics as well, and doing that through acquisitions and

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<v Speaker 1>through a lot of cost control as well. So for example,

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<v Speaker 1>in terms of acquisitions, it recently bought the rare disease

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<v Speaker 1>specialist spring Works and that helped contribute to sales for

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<v Speaker 1>this quarter, so that was a boost there. For the

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<v Speaker 1>electronics division, they said that the demand that was related

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<v Speaker 1>to AI AI related semiconductor materials was still quite strong,

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<v Speaker 1>but that there was a delay in some big projects

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<v Speaker 1>and that was continuing to hurt the growth, which is

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<v Speaker 1>what echoes what we've seen from other companies within that

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<v Speaker 1>semiconductor sector more broadly and providers of equipment to that

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<v Speaker 1>semiconductor sector.

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<v Speaker 3>So that on Merk meanwhile, we are seeing a dop

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<v Speaker 3>for semens. What are the main challenges that they've been

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<v Speaker 3>talking about.

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<v Speaker 1>Yeah, so a lot to digest from Semens this morning,

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<v Speaker 1>so yeah, it actually sets some near end medium term targets.

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<v Speaker 1>It also announced a kind of a broader revamp that

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<v Speaker 1>includes trimming its steak in Semens Health and Airs, which

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<v Speaker 1>is the medical equipment unit that was spun off in

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<v Speaker 1>twenty eighteen, and the goal of that is free up

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<v Speaker 1>capital and invest more in AI and software, and so

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<v Speaker 1>analysts have said that that deconsolidation makes a lot of sense,

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<v Speaker 1>that it's a logical step to simplify the group, given

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<v Speaker 1>that there's very little synergy between Health and Ears, which

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<v Speaker 1>makes MRI scanners, and then Semens, which makes you know,

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<v Speaker 1>software for factory, so you know, those two very different things,

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<v Speaker 1>so simplifying it makes sense. But overall, the results and

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<v Speaker 1>the outlook disappointed a little bit, and we had JP

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<v Speaker 1>Morgan analysts calling the results quite mixed, saying that there's

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<v Speaker 1>pressure on margin, there's currency headwinds really hurting the business

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<v Speaker 1>as well, and that the medium term guidance is actually

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<v Speaker 1>quite opaque, that drag from the currency headwinds is really

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<v Speaker 1>the focus here, it seems. The company said that it

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<v Speaker 1>expects those currency fluctuations to strongly burden profit and sales

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<v Speaker 1>growth in twenty twenty six, so that clouds the outlook

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<v Speaker 1>a little and we saw that reflected in shares a

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<v Speaker 1>little bit weaker this morning as a result.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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