Speaker 1: Bloomberg Audio Studios podcasts, radio news, The.
Speaker 2: Stock Movers podcast, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's get into some of the stocks on me today.
Speaker 3: Let's look at some of the stocks moving in Europe.
Speaker 3: I on Caroline Hepcat with Stephen Kowen. We're joined by
Speaker 3: Bloomberg reporter cloimb Lay. Good morning, Good morning. Let's start
Speaker 3: with ASML. We've had this major semi and AI related
Speaker 3: route in Asia. What is the reader cross into Europe.
Speaker 1: Yeah, so we are seeing a SML shares down quite
Speaker 1: a bit this morning. This is a very interesting reversal
Speaker 1: from yesterday when ASMA had actually a really good day
Speaker 1: thanks to those very good numbers from TSMC, which of
Speaker 1: course was seen as a positive reader cross because ASML
Speaker 1: is a key supplier to TSMC. But today ASML, just
Speaker 1: like the rest of that chip sector in Europe, has
Speaker 1: been swept up in that broad tech sell off which
Speaker 1: started in Asia. There was really this kind of incredible
Speaker 1: rally throughout the beginning of this year in this AI
Speaker 1: chip stocks because of this enthusiasm around the AI trade.
Speaker 1: But now we've reached a point where valuations are so
Speaker 1: high that investors are getting a bit concerned, and the
Speaker 1: big question is really over whether the billions and billions
Speaker 1: of dollars that have been poured into this AI infrastructure
Speaker 1: can actually deliver returns and actually sustain that chip demand.
Speaker 1: And so we're seeing a lot of weakness across that
Speaker 1: sector this morning, ASML down about four percent this morning.
Speaker 1: But then the rest of that sector like b Semi Infinian,
Speaker 1: all of those big chip names in Europe have also
Speaker 1: seen that huge job including as well some of the
Speaker 1: names that are more in the AI infrastructure equipment side
Speaker 1: of things, so names like Siemens or Schneider Electric also
Speaker 1: swept up in that. So we're seeing, as you mentioned Carolina,
Speaker 1: a huge route in that chip sector for sure. Okay,
Speaker 1: let's put down our computers for a moment and pick
Speaker 1: up some fashion because we're going to turn into burbery.
Speaker 2: Sales growth, but shares are down, yeah.
Speaker 1: So it's quite interesting for Berber. We had sales growth
Speaker 1: across all the ranges for the first time in three years,
Speaker 1: so on the face of it, that sounds quite positive.
Speaker 1: You know, there was very strong demand in the US
Speaker 1: in particular, so that it kind of confirms that this
Speaker 1: ongoing turnaround for the company is working quite well and
Speaker 1: actually starting to really pay off. And this also echoes
Speaker 1: what we heard from Richmore earlier this week about this
Speaker 1: a very strong US market with wealthy Americans buying a
Speaker 1: lot of Carti jewelry and apparently a lot of those
Speaker 1: Barbary trench coats as well. But as you said, the
Speaker 1: chees did dip this morning, and that is perhaps because
Speaker 1: of the fact that the sales growth came in line
Speaker 1: and not above expectations, so maybe a slight disappointment there.
Speaker 1: And also Barbary did have quite a cautious outlook, and
Speaker 1: you know it flagged uncertainty related to this geopolitical situation,
Speaker 1: these geopolitical risks, all those sales are increasing for some
Speaker 1: of those luxury names, especially in the really key markets
Speaker 1: like China. In the US, the whole industry is still
Speaker 1: very much facing that weakness in consumer confidence because of
Speaker 1: the Iran War, which is obviously still very much continuing.
Speaker 1: So perhaps some of that cautious outlook is feeding through
Speaker 1: into those shares this morning. Waters have to see what
Speaker 1: LVMH and Caring say and they'll give us a better
Speaker 1: clearer picture of what's going on with luxury.
Speaker 3: Yeah, okay, that's really interesting and a lot dependent on
Speaker 3: Asia and on younger buyers and all on all the
Speaker 3: different regions. Let's think about Volvo Cars. Their share price
Speaker 3: down the most since February.
Speaker 1: Why, yeah, So this is on the back of some earning.
Speaker 1: So there's really further sign of weakness in that car
Speaker 1: making industry coming from Volvo Car this morning. So they
Speaker 1: said there had been a considerable weakening over the second
Speaker 1: quarter in the Chinese market and as a result of that,
Speaker 1: the company scraped its sales growth target for the year.
Speaker 1: The CEO said that the market was pretty bleak and
Speaker 1: really mentioned China as this particular spot of weakness. Of course,
Speaker 1: the broader mark car making sector is in quite a
Speaker 1: lot of trouble at the moment. There's those really high
Speaker 1: materials costs, there's this intensifying competition from the Chinese manufacturers,
Speaker 1: and then also there's quite a low demand in Europe
Speaker 1: and the US, and so we have heard from other companies.
Speaker 1: We had a profit warning from BMW a few weeks ago.
Speaker 1: We have the restructuring plan from Volkswagen as well, with
Speaker 1: the company planning to cut some jobs, close some factories
Speaker 1: rethink its model lineup as well. In so today Volvocar
Speaker 1: came out with those disappointing earnings, but it's very much
Speaker 1: within that same vein of weakness across that car making industry,
Speaker 1: and as are expecting this latest quarter to mark a
Speaker 1: low point for Volvocar's earning. So maybe now the only
Speaker 1: way is up. But these earnings this morning really confirmed
Speaker 1: this huge downturn.
Speaker 2: There the Stockmovers podcast from Bloomberg Radio. Check back with
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