WEBVTT - Nestle Jumps, Kering Dips, Nordea Rises

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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>Let's have a look at some stocks on the move

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<v Speaker 3>today in Europe. I'm Caroline Heapcoat alongside Tom McKenzie, and

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<v Speaker 3>we're joined by Bloomberg reporter Chloe Malay. Chloe, good morning.

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<v Speaker 3>Let's start with Nesley. Then a big cut to jobs,

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<v Speaker 3>sixteen thousand jobs going at Nesley. What's been the reaction, Well,

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<v Speaker 3>quite positive.

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<v Speaker 4>So Neslie I actually had two good news for investors today.

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<v Speaker 4>So first it reported stronger than expected sales growth on

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<v Speaker 4>the back of both price and volume increases, which is

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<v Speaker 4>quite positive given that it really has struggled to revive

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<v Speaker 4>volumes over the last few months. And then the other

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<v Speaker 4>big thing, which is the thing that you just mentioned,

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<v Speaker 4>which is that plan to cut sixteen thousand jobs over

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<v Speaker 4>the next couple of years. So that's a massive headcount reduction.

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<v Speaker 4>It's a really bold start for the new CEO, Philip Nevratta,

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<v Speaker 4>who joined just last month after the office romance scandal

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<v Speaker 4>that we all remember that led to the departure of

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<v Speaker 4>the previous CEO Laura frex so Ali said that this

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<v Speaker 4>is helping to restore investors trust in Nesle, but it

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<v Speaker 4>still remains quite fragile, so going forward, and the rattail

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<v Speaker 4>doesn't really want to rock the boat too much, you know.

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<v Speaker 4>He's probably previously said he wants to maintain the strategy

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<v Speaker 4>of boosting spending on advertising and betting on fewer but

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<v Speaker 4>bigger product initiatives and getting rid of some underperforming units.

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<v Speaker 4>Perhaps the difference there in his strategy is that he's

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<v Speaker 4>being maybe a bit more assertive about it. So we'll

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<v Speaker 4>see how that goes going forward for Nesle.

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<v Speaker 1>This is an interesting one in the luxury space because

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<v Speaker 1>Elvimhor's earnings and the pop that we saw in its

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<v Speaker 1>stock price yesterday was pretty headline. It was headline grabbing,

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<v Speaker 1>certainly head spinning, and the games are coming through for

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<v Speaker 1>Alvimh again today up five ten percent, but it's a

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<v Speaker 1>very different story for Caring what's going on there the

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<v Speaker 1>owner of Gucci Gucci.

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<v Speaker 4>Yeah, so it was a really good day for luxury yesterday.

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<v Speaker 4>As you said, you had the update from LVMH yesterday

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<v Speaker 4>that really drove the shares for all of those names.

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<v Speaker 4>But then today Caring got cut to a seal rating

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<v Speaker 4>at Behrenberg and that is driving down those shares. So

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<v Speaker 4>Behrenberg curt Caring to a cell and also LVMH to

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<v Speaker 4>a hold and said that that luxury sector faces structural

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<v Speaker 4>demand issues and you know there continued pressure in China.

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<v Speaker 4>You know that this is not completely gone. There's low

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<v Speaker 4>consumer confidence, especially among aspirational consumers, and then there's also

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<v Speaker 4>change in consumer behavior in younger generations. And Berenberg analyst

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<v Speaker 4>said that this will be particularly tough on Carrying and LVMH,

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<v Speaker 4>whilst companies like MS for example will be a little

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<v Speaker 4>bit better position because they have less exposure to the

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<v Speaker 4>aspirational end of the market. So it seems like there's

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<v Speaker 4>quite a cautious stone on the sector and in particular

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<v Speaker 4>for Caring, despite a massive rally in the shares over

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<v Speaker 4>the last few months.

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<v Speaker 3>Okay, so that on the luxury sector. To banks though

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<v Speaker 3>obviously had the big Wall Street banks, and we've got

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<v Speaker 3>lots of the UK banks coming out next week with

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<v Speaker 3>their results. And today Helsinki based Nordaa Bank announcing a

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<v Speaker 3>spate of share buy banks.

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<v Speaker 4>Yes, so Naudia is actually the first big European bank

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<v Speaker 4>to report in the earning season and it looks quite positive,

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<v Speaker 4>so it launched two hundred and fifty million euro buy back.

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<v Speaker 4>Their interesting come also be expectations, and that is because

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<v Speaker 4>the CEO said that Nordic companies had a renewed appetite

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<v Speaker 4>for investments, which meant that it translated into increased demand

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<v Speaker 4>for lending. It's quite reassuring for Naudia and then also

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<v Speaker 4>could bode well for the rest of the European banking sector.

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<v Speaker 4>As you mentioned, we've got UK banks coming next week

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<v Speaker 4>with Barclay's, Lloyds and Networks, and then also a bunch

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<v Speaker 4>of Nordic banks reporting as well and UniCredit next week.

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<v Speaker 4>Loads of things happening. There's a few things that investors

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<v Speaker 4>and analysts will be looking closely at for those European banks.

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<v Speaker 4>You know, we know that lower rates are feeding into

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<v Speaker 4>a pressure on their interest income, so it's all about

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<v Speaker 4>how banks are able to mitigate that, and then also

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<v Speaker 4>credit quality because of macroeconomic uncertainty, potentially feeding into bad loans.

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<v Speaker 4>But those measures were quite steady for Nadea, so we'll

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<v Speaker 4>see what we get as the rest of the season progresses.

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

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