WEBVTT - Remy Cointreau Up, STMicro Down, Puma 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>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move today in Europe. Pimasy Burden in London

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<v Speaker 3>with Stephen Carroll in Brussels, and we're joined by Bloomberg

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<v Speaker 3>reporter Chloe Melly. So, Chloe, I want to start with

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<v Speaker 3>remy Quantro. Traders getting giddy on the cognac makers profit

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<v Speaker 3>beat this morning.

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<v Speaker 1>It seems yeah, absolutely, things seems to be looking up

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<v Speaker 1>for Remi Quantro so it had slightly better than expected

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<v Speaker 1>profit and it also expects sales growth to improve throughout

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<v Speaker 1>this year. So those are not kind of blowout results

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<v Speaker 1>by any means, but given the recent weakness that we've

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<v Speaker 1>seen for both Remiquantra and then the broader alcohol sector,

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<v Speaker 1>those signs of demand picking up slightly even maybe just stabilizing,

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<v Speaker 1>that is seen as encouraging, and so that is getting

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<v Speaker 1>investors very excited, very giddy, indeed, were with seeing shares

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<v Speaker 1>up very strongly this morning on the back of those results.

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<v Speaker 1>If we look a bit deeper about what drove the performance.

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<v Speaker 1>There was really strong growth in the Americas in particular,

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<v Speaker 1>and that helped to offset some of the weakness elsewhere,

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<v Speaker 1>in particular in Europe and China. So it's not great

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<v Speaker 1>across the entire business, but it's definitely an improvement on

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<v Speaker 1>last year when Remi Quantra had to withdraw its long

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<v Speaker 1>term guidance and it blamed at that time tariff policies

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<v Speaker 1>in both the US and China. So the US tariffs

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<v Speaker 1>we know what that was about, but the China ones

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<v Speaker 1>referred to the trade dispute that there was last year

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<v Speaker 1>between the EU and China that was affecting particularly as

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<v Speaker 1>sales of duty free cogniac, and so that was really

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<v Speaker 1>weighing on remy quantry last year. There's now a few

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<v Speaker 1>new other challenges. There's the weak consumer spending, there's lower

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<v Speaker 1>alcohol consumption with kind of growing health concerns growing up

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<v Speaker 1>take of jlp ones, et cetera. But for now it

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<v Speaker 1>seems that wermic Coontra is quite resilient and maybe a

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<v Speaker 1>starting to get a bit better.

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<v Speaker 2>Okay, so that's from the drinks company. Let's go to St.

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<v Speaker 2>Micronax and we're thinking about technology. Of course, big themes

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<v Speaker 2>that play here their shares lower this morning.

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<v Speaker 1>Though, Yeah, we're seeing st Micro and then some of

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<v Speaker 1>the other names in that AI chip sector seeing some

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<v Speaker 1>weakness this morning because of course of Broadcom, with a

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<v Speaker 1>quite disappointing outlook from that company around AI revenue. It

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<v Speaker 1>is worth noting that Broadcom isn't doing badly per se.

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<v Speaker 1>You know, demand is still very strong, but the expectations

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<v Speaker 1>are so elevated that essentially missed a very high bar.

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<v Speaker 1>And the problem for this sector as a whole is

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<v Speaker 1>that those expectations are so high getting even higher, and

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<v Speaker 1>so when there's any sign of weakness, any sign of

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<v Speaker 1>maybe even the potential slow down, the market tends to

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<v Speaker 1>maybe panic a bit. And so we've seen shares for

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<v Speaker 1>Broadcom plunging a lot of weakness in Asia as a result,

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<v Speaker 1>and then now we're seeing some of that read across

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<v Speaker 1>as well in Europe, with st Micro and then other

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<v Speaker 1>names like Infinian, Nokia X, all of those AI related

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<v Speaker 1>names seeing some weakness this morning. It is now quite

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<v Speaker 1>a familiar story with this AI trade, with sky high valuations,

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<v Speaker 1>sky high expectations and then a small disappointment triggering a

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<v Speaker 1>big tumble.

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<v Speaker 3>Also seeing Puma shares on this upgrade from City what

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<v Speaker 3>City seeing that's better good about Puma at the moment.

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<v Speaker 1>Yeah, it's really all about China. So the analysts have

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<v Speaker 1>lighted a really good growth opportunity over the medium term

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<v Speaker 1>in China, and that is because Anti Sports is now

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<v Speaker 1>Puma's biggest shareholder with a twenty nine percent stake. So

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<v Speaker 1>Puma has been an interesting company to watch because of

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<v Speaker 1>the ongoing turnaround for the company. The latest earnings were

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<v Speaker 1>actually pretty good. We've seen some progress around liquidating inventory,

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<v Speaker 1>around doing better marketing, and also developing a bunch of

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<v Speaker 1>new products in very in demand categories like football and

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<v Speaker 1>running gear. But the CEO has said before that twenty

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<v Speaker 1>twenty six was very much going to be a transition

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<v Speaker 1>year with all of the benefits of the turnaround plan

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<v Speaker 1>and really starting to come through next year in twenty

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<v Speaker 1>twenty seven, and the goal of course being that Puma

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<v Speaker 1>might be able to compete with Nike and Adidas after

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<v Speaker 1>kind of falling behind recently, and perhaps China and the

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<v Speaker 1>Chinese market will be a big part of that for Puma,

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<v Speaker 1>if citianalysts are to be believed.

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<v Speaker 2>This stock movers report from Bloomberg Radio. Check back with

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