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: Now, let's take a look at some of the stocks
Speaker 3: on the move today in Europe. Pimasy Burden in London
Speaker 3: with Stephen Carroll in Brussels, and we're joined by Bloomberg
Speaker 3: reporter Chloe Melly. So, Chloe, I want to start with
Speaker 3: remy Quantro. Traders getting giddy on the cognac makers profit
Speaker 3: beat this morning.
Speaker 1: It seems yeah, absolutely, things seems to be looking up
Speaker 1: for Remi Quantro so it had slightly better than expected
Speaker 1: profit and it also expects sales growth to improve throughout
Speaker 1: this year. So those are not kind of blowout results
Speaker 1: by any means, but given the recent weakness that we've
Speaker 1: seen for both Remiquantra and then the broader alcohol sector,
Speaker 1: those signs of demand picking up slightly even maybe just stabilizing,
Speaker 1: that is seen as encouraging, and so that is getting
Speaker 1: investors very excited, very giddy, indeed, were with seeing shares
Speaker 1: up very strongly this morning on the back of those results.
Speaker 1: If we look a bit deeper about what drove the performance.
Speaker 1: There was really strong growth in the Americas in particular,
Speaker 1: and that helped to offset some of the weakness elsewhere,
Speaker 1: in particular in Europe and China. So it's not great
Speaker 1: across the entire business, but it's definitely an improvement on
Speaker 1: last year when Remi Quantra had to withdraw its long
Speaker 1: term guidance and it blamed at that time tariff policies
Speaker 1: in both the US and China. So the US tariffs
Speaker 1: we know what that was about, but the China ones
Speaker 1: referred to the trade dispute that there was last year
Speaker 1: between the EU and China that was affecting particularly as
Speaker 1: sales of duty free cogniac, and so that was really
Speaker 1: weighing on remy quantry last year. There's now a few
Speaker 1: new other challenges. There's the weak consumer spending, there's lower
Speaker 1: alcohol consumption with kind of growing health concerns growing up
Speaker 1: take of jlp ones, et cetera. But for now it
Speaker 1: seems that wermic Coontra is quite resilient and maybe a
Speaker 1: starting to get a bit better.
Speaker 2: Okay, so that's from the drinks company. Let's go to St.
Speaker 2: Micronax and we're thinking about technology. Of course, big themes
Speaker 2: that play here their shares lower this morning.
Speaker 1: Though, Yeah, we're seeing st Micro and then some of
Speaker 1: the other names in that AI chip sector seeing some
Speaker 1: weakness this morning because of course of Broadcom, with a
Speaker 1: quite disappointing outlook from that company around AI revenue. It
Speaker 1: is worth noting that Broadcom isn't doing badly per se.
Speaker 1: You know, demand is still very strong, but the expectations
Speaker 1: are so elevated that essentially missed a very high bar.
Speaker 1: And the problem for this sector as a whole is
Speaker 1: that those expectations are so high getting even higher, and
Speaker 1: so when there's any sign of weakness, any sign of
Speaker 1: maybe even the potential slow down, the market tends to
Speaker 1: maybe panic a bit. And so we've seen shares for
Speaker 1: Broadcom plunging a lot of weakness in Asia as a result,
Speaker 1: and then now we're seeing some of that read across
Speaker 1: as well in Europe, with st Micro and then other
Speaker 1: names like Infinian, Nokia X, all of those AI related
Speaker 1: names seeing some weakness this morning. It is now quite
Speaker 1: a familiar story with this AI trade, with sky high valuations,
Speaker 1: sky high expectations and then a small disappointment triggering a
Speaker 1: big tumble.
Speaker 3: Also seeing Puma shares on this upgrade from City what
Speaker 3: City seeing that's better good about Puma at the moment.
Speaker 1: Yeah, it's really all about China. So the analysts have
Speaker 1: lighted a really good growth opportunity over the medium term
Speaker 1: in China, and that is because Anti Sports is now
Speaker 1: Puma's biggest shareholder with a twenty nine percent stake. So
Speaker 1: Puma has been an interesting company to watch because of
Speaker 1: the ongoing turnaround for the company. The latest earnings were
Speaker 1: actually pretty good. We've seen some progress around liquidating inventory,
Speaker 1: around doing better marketing, and also developing a bunch of
Speaker 1: new products in very in demand categories like football and
Speaker 1: running gear. But the CEO has said before that twenty
Speaker 1: twenty six was very much going to be a transition
Speaker 1: year with all of the benefits of the turnaround plan
Speaker 1: and really starting to come through next year in twenty
Speaker 1: twenty seven, and the goal of course being that Puma
Speaker 1: might be able to compete with Nike and Adidas after
Speaker 1: kind of falling behind recently, and perhaps China and the
Speaker 1: Chinese market will be a big part of that for Puma,
Speaker 1: if citianalysts are to be believed.
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