Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's have a look at some stocks on the move
Speaker 3: today in Europe. I'm Caroline Heapcoat alongside Tom McKenzie, and
Speaker 3: we're joined by Bloomberg reporter Chloe Malay. Chloe, good morning.
Speaker 3: Let's start with Nesley. Then a big cut to jobs,
Speaker 3: sixteen thousand jobs going at Nesley. What's been the reaction, Well,
Speaker 3: quite positive.
Speaker 4: So Neslie I actually had two good news for investors today.
Speaker 4: So first it reported stronger than expected sales growth on
Speaker 4: the back of both price and volume increases, which is
Speaker 4: quite positive given that it really has struggled to revive
Speaker 4: volumes over the last few months. And then the other
Speaker 4: big thing, which is the thing that you just mentioned,
Speaker 4: which is that plan to cut sixteen thousand jobs over
Speaker 4: the next couple of years. So that's a massive headcount reduction.
Speaker 4: It's a really bold start for the new CEO, Philip Nevratta,
Speaker 4: who joined just last month after the office romance scandal
Speaker 4: that we all remember that led to the departure of
Speaker 4: the previous CEO Laura frex so Ali said that this
Speaker 4: is helping to restore investors trust in Nesle, but it
Speaker 4: still remains quite fragile, so going forward, and the rattail
Speaker 4: doesn't really want to rock the boat too much, you know.
Speaker 4: He's probably previously said he wants to maintain the strategy
Speaker 4: of boosting spending on advertising and betting on fewer but
Speaker 4: bigger product initiatives and getting rid of some underperforming units.
Speaker 4: Perhaps the difference there in his strategy is that he's
Speaker 4: being maybe a bit more assertive about it. So we'll
Speaker 4: see how that goes going forward for Nesle.
Speaker 1: This is an interesting one in the luxury space because
Speaker 1: Elvimhor's earnings and the pop that we saw in its
Speaker 1: stock price yesterday was pretty headline. It was headline grabbing,
Speaker 1: certainly head spinning, and the games are coming through for
Speaker 1: Alvimh again today up five ten percent, but it's a
Speaker 1: very different story for Caring what's going on there the
Speaker 1: owner of Gucci Gucci.
Speaker 4: Yeah, so it was a really good day for luxury yesterday.
Speaker 4: As you said, you had the update from LVMH yesterday
Speaker 4: that really drove the shares for all of those names.
Speaker 4: But then today Caring got cut to a seal rating
Speaker 4: at Behrenberg and that is driving down those shares. So
Speaker 4: Behrenberg curt Caring to a cell and also LVMH to
Speaker 4: a hold and said that that luxury sector faces structural
Speaker 4: demand issues and you know there continued pressure in China.
Speaker 4: You know that this is not completely gone. There's low
Speaker 4: consumer confidence, especially among aspirational consumers, and then there's also
Speaker 4: change in consumer behavior in younger generations. And Berenberg analyst
Speaker 4: said that this will be particularly tough on Carrying and LVMH,
Speaker 4: whilst companies like MS for example will be a little
Speaker 4: bit better position because they have less exposure to the
Speaker 4: aspirational end of the market. So it seems like there's
Speaker 4: quite a cautious stone on the sector and in particular
Speaker 4: for Caring, despite a massive rally in the shares over
Speaker 4: the last few months.
Speaker 3: Okay, so that on the luxury sector. To banks though
Speaker 3: obviously had the big Wall Street banks, and we've got
Speaker 3: lots of the UK banks coming out next week with
Speaker 3: their results. And today Helsinki based Nordaa Bank announcing a
Speaker 3: spate of share buy banks.
Speaker 4: Yes, so Naudia is actually the first big European bank
Speaker 4: to report in the earning season and it looks quite positive,
Speaker 4: so it launched two hundred and fifty million euro buy back.
Speaker 4: Their interesting come also be expectations, and that is because
Speaker 4: the CEO said that Nordic companies had a renewed appetite
Speaker 4: for investments, which meant that it translated into increased demand
Speaker 4: for lending. It's quite reassuring for Naudia and then also
Speaker 4: could bode well for the rest of the European banking sector.
Speaker 4: As you mentioned, we've got UK banks coming next week
Speaker 4: with Barclay's, Lloyds and Networks, and then also a bunch
Speaker 4: of Nordic banks reporting as well and UniCredit next week.
Speaker 4: Loads of things happening. There's a few things that investors
Speaker 4: and analysts will be looking closely at for those European banks.
Speaker 4: You know, we know that lower rates are feeding into
Speaker 4: a pressure on their interest income, so it's all about
Speaker 4: how banks are able to mitigate that, and then also
Speaker 4: credit quality because of macroeconomic uncertainty, potentially feeding into bad loans.
Speaker 4: But those measures were quite steady for Nadea, so we'll
Speaker 4: see what we get as the rest of the season progresses.
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