WEBVTT - BP Up, Stellantis Down, Fashion Weak

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<v Speaker 1>Bloomberg Audio Studios podcasts, radio news, The.

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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

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<v Speaker 3>So 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 Caline HEPKITKB.

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<v Speaker 1>We are joined by.

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<v Speaker 3>Bloomberg's equity supporter Joe Eastern. Joe, good morning. So then

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<v Speaker 3>we had some data out of BP and their share

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<v Speaker 3>price is actually one of the few that's doing reasonably

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<v Speaker 3>well in Europe.

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<v Speaker 1>Yes, a BP up around two and a half percent

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<v Speaker 1>in London this morning, so quite a decent ou performance

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<v Speaker 1>for that one. So the company reporting at rising at

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<v Speaker 1>production and a strong result in the latest period. They

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<v Speaker 1>are saying that they do expect to see pretty decent growth.

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<v Speaker 1>It is not their quarterly report, but it's a bit

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<v Speaker 1>of an update from them. They do think the three

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<v Speaker 1>month production will be higher versus the first quarter, so

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<v Speaker 1>that's been taken pretty poively. Of course, with the oil

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<v Speaker 1>stocks all about the oil price that's come down so

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<v Speaker 1>much therefore, it's been a bit of an underperforming sector.

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<v Speaker 1>So it's a bit of reprieve four p BP today

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<v Speaker 1>and as I say, we're up around two and a

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<v Speaker 1>half percent for BP in London.

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<v Speaker 3>Yeah, of course, though they still have this big turnaround

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<v Speaker 3>plan that they are enacting that they announced in February,

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<v Speaker 3>so there's still a lot focused on that also. But

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<v Speaker 3>BP positive today at least. Now let's think about the tariffs.

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<v Speaker 3>I mean, BP was perhaps the one story that wasn't

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<v Speaker 3>about tariffs today. Stilantis is down because of this universal

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<v Speaker 3>tariff threat.

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<v Speaker 1>Yeah, so stilland is down pretty significantly, so down almost

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<v Speaker 1>three percent for that one. This, as you say, it's

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<v Speaker 1>the universal comments from Trumps to Trump saying that he

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<v Speaker 1>could potentially slap this extra tariff on most training parts,

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<v Speaker 1>but also specifically the thirty five percent tariff warning that

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<v Speaker 1>he's given on Canadian goods Dealantis actually makes some autos

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<v Speaker 1>in Canada and shifts them over the border into the

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<v Speaker 1>US seals and there, so they would be directly affected

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<v Speaker 1>by that. They also have production down in Mexico, so

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<v Speaker 1>that's kind of tariffs on all sides of the US

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<v Speaker 1>really for them. So that is the weakest of the autos,

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<v Speaker 1>but the entire auto sector kind of taking a hit

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<v Speaker 1>from this, given it is such a tariff exposed sector.

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<v Speaker 1>So We're seeing weakness in Reno, Volvo, Mercedes, BMW, all

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<v Speaker 1>of them a little bit softer tape, Stilantis bearing the

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<v Speaker 1>brunt of it.

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<v Speaker 3>And so that on the auto makers. What about the

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<v Speaker 3>luxury sector also some weakness there this morning? Why?

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<v Speaker 1>Yes, So luxury has been an interesting one.

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<v Speaker 3>Now.

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<v Speaker 1>We kind of saw a bit of a boost yesterday

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<v Speaker 1>because there's a lot of optimism around China potentially doing

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<v Speaker 1>some stimulus and that fed through into the market. But

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<v Speaker 1>analysts out today just being really really bearissed. There's a

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<v Speaker 1>great note out from Bank of America which I've got

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<v Speaker 1>on my screen saying we are worried quote about the

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<v Speaker 1>luxury sector, and they say that they had expected to

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<v Speaker 1>see brands that are announced new creative directors. These are

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<v Speaker 1>companies like Carrying Gucci and also Berbery to see a

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<v Speaker 1>bit of a rebound, but so far we see no

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<v Speaker 1>evidence of this, which makes us increasingly concerned that revenue

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<v Speaker 1>and earnings growth modeled by analysts will be premature, and

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<v Speaker 1>therefore we're seeing significant weakness across the luxury space today,

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<v Speaker 1>seeing Carrying down around three percent, Elvy Matrix down two percent,

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<v Speaker 1>Birbery was weaker, Brunello Cucinelli, which had results last night,

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<v Speaker 1>kind of not doing enough to support the broader sector.

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<v Speaker 1>So analysts becoming really bearish, including Bank of America, also

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<v Speaker 1>Goldman Sachs, and therefore that sector is lower.

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<v Speaker 3>So I vessas didn't read the story that I read

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<v Speaker 3>this morning about the Birken handbag.

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<v Speaker 1>The original of course that.

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<v Speaker 2>Ten million for a bag.

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<v Speaker 1>Yeah, you're not going to You're not going to take

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<v Speaker 1>that on a night out, are you a ten minutes?

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<v Speaker 3>No, it's going into a museum because of course it's

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<v Speaker 3>about the history of fashion and.

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<v Speaker 1>You wuldn't want to lose that one, you know.

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