WEBVTT - Lindt Dips, ADP Down, Julius Baer Up

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<v Speaker 1>Bloomberg Audio Studios. Podcasts.

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<v Speaker 2>Radio. News.

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<v Speaker 1>The Stock Movers Report. Your roundup of companies making moves

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<v Speaker 1>in the stock market. Harnessing the power of Bloomberg data.

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<v Speaker 3>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move today in Europe. I'm Lizzie Burden, alongside

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<v Speaker 3>Stephen Carroll, and we're joined by Bloomberg reporter Joshua Gaunt-Warner.

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<v Speaker 3>Your first time on Stocks to Watch for us, Joshua,

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<v Speaker 3>so welcome. Let's start off then with chocolate. Lindt, the

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<v Speaker 3>Swiss chocolate maker, of course, it's cut its guidance again.

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<v Speaker 3>Did its sales prospects melt away during the summer heatwave? Yes.

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<v Speaker 2>Good morning. I mean, this is the second guidance cut,

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<v Speaker 2>as you say, of the year for the chocolatier. And

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<v Speaker 2>it's now expecting organic growth to be flat to up

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<v Speaker 2>to about 2% this year. And this is being blamed

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<v Speaker 2>on the heat wave that spread across Europe this year

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<v Speaker 2>and also the price increases that have deterred cash-conscious shoppers. Now,

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<v Speaker 2>one of the main problems with this is that Vontabel

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<v Speaker 2>analysts are saying that it will dent Lindt's reputation for

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<v Speaker 2>providing reliable guidance. Originally, it was targeting growth of up

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<v Speaker 2>to 8% in 2026, but now we're looking at potentially

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<v Speaker 2>flat sales. Now, pricing power has long been a trump

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<v Speaker 2>card for the company, but this is now being tested

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<v Speaker 2>and this is mainly because of the cocoa price inflation

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<v Speaker 2>that we've seen in recent years. So, ticker LISP was

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<v Speaker 2>down over 8% this morning. That's extending year-to-date declines to

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<v Speaker 2>about 32%, with fears already dampening the stock due to

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<v Speaker 2>doubts about the recovery in volumes.

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<v Speaker 1>Yeah, very interesting. Hot weather, people buying less chocolate, so

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<v Speaker 1>it appears, anyway. Let's go to France next. And you're

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<v Speaker 1>watching the French infrastructure stocks. This is ahead of the

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<v Speaker 1>budget announcements to come. Yeah.

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<v Speaker 2>So, a few of the operators that own things such

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<v Speaker 2>as motorways and airports are trading lower this morning. We've

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<v Speaker 2>had Vinci, iFidge and ADP all down about 2% to 4%.

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<v Speaker 2>And this is after the government said it's considering a

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<v Speaker 2>tax increase for the sector as part of the 2027 budget. Now,

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<v Speaker 2>what the government wants to do is take the current

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<v Speaker 2>fixed rate of about 4.6% to hike it progressively to

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<v Speaker 2>its height of 12.2%. So, quite a big jump. And

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<v Speaker 2>that will be targeted at the most profitable operators. And

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<v Speaker 2>that's aiming to raise about € 800 million extra a year

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<v Speaker 2>for the government. Now, this is going to be hitting

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<v Speaker 2>earnings if it goes through. Morgan Stanley says it could

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<v Speaker 2>hit IFG's net income next year by about 10%. and 12%

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<v Speaker 2>at ADP. So, unsurprisingly, that's seeing some of the sector's

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<v Speaker 2>valuation shed away this morning.

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<v Speaker 3>And finally, you're looking at Swiss lender Julius Baer. What's

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<v Speaker 3>the latest there?

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<v Speaker 1>Yeah.

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<v Speaker 2>So, that's the top performer in the stock 600 today,

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<v Speaker 2>up more than 8%. Regulators have ended an enforcement procedure

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<v Speaker 2>against the Swiss wealth manager. This has been a big

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<v Speaker 2>overhang on the shares. It had been imposed because it

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<v Speaker 2>incurred steep losses from dealings with an Austrian property tycoon.

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<v Speaker 2>And while we'll see some of the measures gradually phased out,

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<v Speaker 2>it is a welcome sign for investors. Ultimately, it should

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<v Speaker 2>allow the bank to deploy some capital and it has

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<v Speaker 2>asked if it can restart buybacks as a result. So,

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<v Speaker 2>investors will now be looking at a more attractive outlook

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<v Speaker 2>for the company going forward.

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