1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,680 --> 00:00:18,600 Speaker 3: Let's look at some stocks on the move today here 5 00:00:18,600 --> 00:00:20,960 Speaker 3: in Europe. I'm Caroline Hepko with Lizzie Burton and we're 6 00:00:21,000 --> 00:00:24,360 Speaker 3: joined by Bloomberg reporta Clomber Lake of morning. So lots 7 00:00:24,400 --> 00:00:27,440 Speaker 3: of choose from today then, because so many earnings. But 8 00:00:27,560 --> 00:00:31,480 Speaker 3: let's start with currying the Luxury group extending a brisk rally. 9 00:00:31,640 --> 00:00:33,800 Speaker 4: Yeah, absolutely, and that is because the cells in the 10 00:00:33,800 --> 00:00:37,040 Speaker 4: third quarter fell by much less than analysts had expected, 11 00:00:37,080 --> 00:00:40,479 Speaker 4: including the Gucci business, which was obviously the most important 12 00:00:40,479 --> 00:00:42,920 Speaker 4: one for Caring. And this was actually the first set 13 00:00:42,960 --> 00:00:45,479 Speaker 4: of results under the new CEO who was hired to 14 00:00:45,520 --> 00:00:48,440 Speaker 4: kind of lead Caring to recovery and turn things around. 15 00:00:48,640 --> 00:00:50,920 Speaker 5: And it seems that he's doing a pretty good job 16 00:00:50,960 --> 00:00:51,800 Speaker 5: so far. So don't. 17 00:00:51,920 --> 00:00:55,240 Speaker 4: Demand recovered quite well in North America. Sales also improved 18 00:00:55,240 --> 00:00:58,160 Speaker 4: in China. Obviously those are two of the most important 19 00:00:58,240 --> 00:01:01,120 Speaker 4: luxury markets. We are still in negative territory. We were 20 00:01:01,160 --> 00:01:03,800 Speaker 4: still talking about a sales drop overall. But and Liz, 21 00:01:03,840 --> 00:01:05,640 Speaker 4: I'm now kind of seeing a way out of that. 22 00:01:05,800 --> 00:01:08,200 Speaker 4: So some predict a return to growth as soon as 23 00:01:08,200 --> 00:01:11,919 Speaker 4: early twenty twenty six, which would be very positive for Caring. 24 00:01:12,120 --> 00:01:15,399 Speaker 4: It also kind of helps that Luca Demo, who who's 25 00:01:15,440 --> 00:01:18,040 Speaker 4: the new CEO, is trying to revive sales as the 26 00:01:18,080 --> 00:01:21,720 Speaker 4: same time as he's cutting costs and reducing debt. We've 27 00:01:21,760 --> 00:01:24,039 Speaker 4: seen that this week with the four billing euro cell 28 00:01:24,120 --> 00:01:27,560 Speaker 4: of the beauty division to Lareal. So this is quite 29 00:01:27,600 --> 00:01:30,400 Speaker 4: a good set quite good news for Caring, also a 30 00:01:30,440 --> 00:01:33,800 Speaker 4: set of good news for luxury more broadly. Obviously, VMH 31 00:01:33,880 --> 00:01:36,479 Speaker 4: did quite well, Ammas did well, although it always kind 32 00:01:36,480 --> 00:01:39,000 Speaker 4: of does. Carring is recovering, so there's a sector wide 33 00:01:39,000 --> 00:01:40,440 Speaker 4: story there and it's quite positive. 34 00:01:40,880 --> 00:01:42,720 Speaker 1: And I've got to ask you about Volvo because I 35 00:01:42,720 --> 00:01:45,160 Speaker 1: spoke to the CEO earlier and the shares are up 36 00:01:45,360 --> 00:01:49,240 Speaker 1: thirty one and a half percent. He seemed optimistic, but 37 00:01:49,560 --> 00:01:50,920 Speaker 1: it seems he really needed to be. 38 00:01:51,240 --> 00:01:51,440 Speaker 3: Yeah. 39 00:01:51,440 --> 00:01:53,320 Speaker 5: Absolutely, it's a massive message jump. 40 00:01:53,320 --> 00:01:55,640 Speaker 4: As you just said, that's because it reported profit that 41 00:01:55,840 --> 00:01:58,760 Speaker 4: was much higher, much much higher than analyst expectations. And 42 00:01:58,760 --> 00:02:01,520 Speaker 4: then the margin also improved quite massively, and we had 43 00:02:01,560 --> 00:02:03,840 Speaker 4: a big bat on margin as well. And that was 44 00:02:03,880 --> 00:02:06,880 Speaker 4: down to cost cutting initiatives. So Volvo announced a few 45 00:02:06,880 --> 00:02:09,480 Speaker 4: months ago that it was cutting three thousand jobs and 46 00:02:09,560 --> 00:02:12,080 Speaker 4: that is starting to kind of feed through into the 47 00:02:12,080 --> 00:02:15,240 Speaker 4: profits starting to have a positive impact on the company, 48 00:02:15,280 --> 00:02:19,400 Speaker 4: and that the benefits also happened earlier than expected. And 49 00:02:19,520 --> 00:02:22,280 Speaker 4: Liz said that the quarter marks a clear inflection, and 50 00:02:22,280 --> 00:02:25,080 Speaker 4: that is despite the fact that Volvo is very exposed 51 00:02:25,160 --> 00:02:25,799 Speaker 4: to tariffs. 52 00:02:25,840 --> 00:02:28,080 Speaker 5: It's owned controlled by a Chinese company. 53 00:02:28,240 --> 00:02:31,280 Speaker 4: It has a lot of production facilities in China, although 54 00:02:31,280 --> 00:02:31,680 Speaker 4: it has. 55 00:02:31,560 --> 00:02:34,360 Speaker 5: Been moving some of these to Europe and to the US. 56 00:02:35,080 --> 00:02:37,320 Speaker 4: So some analysts saying that, you know, there's not many 57 00:02:37,400 --> 00:02:39,440 Speaker 4: car companies doing this well right now. 58 00:02:39,600 --> 00:02:42,560 Speaker 3: In terms of the other stories that we're thinking about. 59 00:02:42,560 --> 00:02:46,080 Speaker 3: The semiconductor company st Micro also reporting, always a firm 60 00:02:46,160 --> 00:02:47,280 Speaker 3: eye on the semis. 61 00:02:47,480 --> 00:02:50,160 Speaker 4: Yeah, absolutely, So sd micro is down this morning because 62 00:02:50,200 --> 00:02:53,959 Speaker 4: it provided guidance that missed expectations, which kind of signals 63 00:02:53,960 --> 00:02:56,440 Speaker 4: that the recovery in the chip industry is maybe not 64 00:02:56,440 --> 00:02:59,320 Speaker 4: progressing as well as it was hoped. So that follows 65 00:02:59,360 --> 00:03:02,080 Speaker 4: the update that we had earlier this week from Texas Instruments, 66 00:03:02,480 --> 00:03:05,280 Speaker 4: which is a US company in that sector as well, 67 00:03:05,520 --> 00:03:09,679 Speaker 4: and the Texas Instruments said that customers were pulling back 68 00:03:09,760 --> 00:03:12,639 Speaker 4: on orders because of trade tensions and because of quite 69 00:03:12,639 --> 00:03:15,920 Speaker 4: a shaky economy, and that the industrial and automotive and 70 00:03:16,040 --> 00:03:20,519 Speaker 4: markets for that chiprotector were particularly a week. So obviously 71 00:03:20,560 --> 00:03:22,400 Speaker 4: it's dealing with a lot of challenges at the moment 72 00:03:22,480 --> 00:03:25,200 Speaker 4: that that sector. We've had tariffs, we also have rising 73 00:03:25,560 --> 00:03:29,480 Speaker 4: China and US tensions. The US is trying to stop 74 00:03:29,520 --> 00:03:31,880 Speaker 4: the delivery of AI chips to China and return. China 75 00:03:31,960 --> 00:03:37,120 Speaker 4: is trying to limit exports of Star crucial for those 76 00:03:37,200 --> 00:03:39,600 Speaker 4: chips and batteries. So there's been this tip for tat, 77 00:03:39,680 --> 00:03:41,840 Speaker 4: there's been those tariffs, and all of that is really 78 00:03:41,880 --> 00:03:44,720 Speaker 4: severely disrupting the chip supply chain, and that is weighing 79 00:03:45,000 --> 00:03:46,320 Speaker 4: quite a lot on st micro. 80 00:03:48,000 --> 00:03:52,040 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 81 00:03:52,120 --> 00:03:54,720 Speaker 2: us throughout the day for the latest roundup of companies 82 00:03:54,760 --> 00:03:57,840 Speaker 2: making news on Wall Street and for the latest market 83 00:03:57,920 --> 00:04:02,360 Speaker 2: moving headlines. 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