WEBVTT - L'Oreal Falls, Capgemini's AI Pitch, Safran Up

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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>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 with

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<v Speaker 3>Stephen Carroll, and we're joined by Bloomberg's Breaking News editor,

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<v Speaker 3>Louise Moon. Louise, you're having a very French Friday. I

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<v Speaker 3>want to start with Lorel investors deciding its stock isn't

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<v Speaker 3>worth it.

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<v Speaker 1>It's not it seems. Shares were down at one point

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<v Speaker 1>this morning over six percent in Paris for Laurel. That's

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<v Speaker 1>after fourth quarter results. Sales were up, but they missed estimates,

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<v Speaker 1>so they came in weaker than expected. And the thing

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<v Speaker 1>that's really been focused on is their luxury division, which

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<v Speaker 1>is suffering. So they own the likes of long com Ive,

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<v Speaker 1>San Laurn and other luxury brands. They're seeing a lot

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<v Speaker 1>of weakness there, particularly to do with China, the Chinese

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<v Speaker 1>consumer spending. There being a lot weaker for Lorrel if

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<v Speaker 1>you look at Europe and America, the sales their top deestimate,

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<v Speaker 1>so China's really standing out as the weaker point, so

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<v Speaker 1>there's kind of already changing habits. Well, there's already the

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<v Speaker 1>changing habits in terms of spending, and then analysts are

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<v Speaker 1>also noting that there's also on top of that, rising

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<v Speaker 1>competition from Asia in particular Korean and Chinese brands, beauty

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<v Speaker 1>brands in particulars that could also pose an added threat

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<v Speaker 1>as well or already posing a threat. And then back

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<v Speaker 1>to Europe, they are saying that there's still they're still

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<v Speaker 1>cautious about European demand for the year ahead. So even

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<v Speaker 1>though Europe's, you know, one of the stronger regions at

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<v Speaker 1>the moment, there could still be some some rockiness ahead.

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<v Speaker 1>But yeah, at the moment, weakness in luxury, particularly in China,

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<v Speaker 1>weighing on loreal okay.

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<v Speaker 4>And staying as France, as Lizzie mentioned, we're going to

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<v Speaker 4>turn into the tech sector and cap Gemini results out.

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<v Speaker 4>This is an interesting one because they're on sort of

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<v Speaker 4>one side of the AI as good AI as bad

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<v Speaker 4>story that we've been telling everywhere else.

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<v Speaker 1>Indeed, yeah, so if you look back at their share price,

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<v Speaker 1>so over the past year, it's down about thirty percent,

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<v Speaker 1>so not performing that well on part of that more recently,

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<v Speaker 1>it's been embroildered that kind of wider software sell off

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<v Speaker 1>to do with AI, to do with fears over these

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<v Speaker 1>companies being vulnerable to the boom and AI AI innovation,

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<v Speaker 1>and then Gemini specifically has also suffered slightly in terms

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<v Speaker 1>of customers spending less. You know, there's more tariff an saturity,

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<v Speaker 1>high interest rates, wide economic slow down, so it's had

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<v Speaker 1>a bit of a double headwind over the past year.

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<v Speaker 1>They had their fourth quarter results this morning and sales

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<v Speaker 1>growth actually beat estimates and people are well, I said people,

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<v Speaker 1>and Lisser noting that it signifies that AI related bookings

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<v Speaker 1>are kind of boosting that so it's seeing a bit

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<v Speaker 1>of benefit coming through. They also had some interest in

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<v Speaker 1>comments from the CEO saying that they're clearly pivoting to

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<v Speaker 1>facilitating AI adoption. That's really the focus. So they're really

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<v Speaker 1>making that clear that is the focus going forward. They

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<v Speaker 1>say that's going to fuel sales this year, drive growth.

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<v Speaker 1>So yeah, and Lissen noting, you know, momentum ahead looks

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<v Speaker 1>quite positive for revenues. It's showing how it plans to

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<v Speaker 1>execute the story around AI, and so shares are reacting positively,

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<v Speaker 1>so that they jumped in morning trading.

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<v Speaker 3>And finally Louis Saffran giving it Surnings targets an upgrade.

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<v Speaker 1>Yeah, she has a rise on the back of this,

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<v Speaker 1>So Saffron that the French aerospace company a nice French

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<v Speaker 1>trio actually today. So they've improved their twenty twenty six

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<v Speaker 1>guidance and they've also upgraded twenty twenty eight targets. They

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<v Speaker 1>say they're accelerating, you know, preparing technology for next generation aircraft.

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<v Speaker 1>And they say the strength of those units so they're

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<v Speaker 1>civil engines and defense segments that they cater both to

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<v Speaker 1>commercial and to military. They say, the strength of that

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<v Speaker 1>shit to help offset the impact from tariffs as well

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<v Speaker 1>as a drag from certain taxes as well. As this

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<v Speaker 1>has really been welcome. So shares up apcent, sort of

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<v Speaker 1>record high if you look back, they've kind of been

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<v Speaker 1>swing really since twenty twenty two on the back of

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<v Speaker 1>the whole wider defense story. But up even more today,

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<v Speaker 1>as I say, to.

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<v Speaker 3>A record high.

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

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