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: Let's look at some stocks on the move today here
Speaker 3: in Europe. I'm Caroline Hepko with Lizzie Burton and we're
Speaker 3: joined by Bloomberg reporta Clomber Lake of morning. So lots
Speaker 3: of choose from today then, because so many earnings. But
Speaker 3: let's start with currying the Luxury group extending a brisk rally.
Speaker 4: Yeah, absolutely, and that is because the cells in the
Speaker 4: third quarter fell by much less than analysts had expected,
Speaker 4: including the Gucci business, which was obviously the most important
Speaker 4: one for Caring. And this was actually the first set
Speaker 4: of results under the new CEO who was hired to
Speaker 4: kind of lead Caring to recovery and turn things around.
Speaker 5: And it seems that he's doing a pretty good job
Speaker 5: so far. So don't.
Speaker 4: Demand recovered quite well in North America. Sales also improved
Speaker 4: in China. Obviously those are two of the most important
Speaker 4: luxury markets. We are still in negative territory. We were
Speaker 4: still talking about a sales drop overall. But and Liz,
Speaker 4: I'm now kind of seeing a way out of that.
Speaker 4: So some predict a return to growth as soon as
Speaker 4: early twenty twenty six, which would be very positive for Caring.
Speaker 4: It also kind of helps that Luca Demo, who who's
Speaker 4: the new CEO, is trying to revive sales as the
Speaker 4: same time as he's cutting costs and reducing debt. We've
Speaker 4: seen that this week with the four billing euro cell
Speaker 4: of the beauty division to Lareal. So this is quite
Speaker 4: a good set quite good news for Caring, also a
Speaker 4: set of good news for luxury more broadly. Obviously, VMH
Speaker 4: did quite well, Ammas did well, although it always kind
Speaker 4: of does. Carring is recovering, so there's a sector wide
Speaker 4: story there and it's quite positive.
Speaker 1: And I've got to ask you about Volvo because I
Speaker 1: spoke to the CEO earlier and the shares are up
Speaker 1: thirty one and a half percent. He seemed optimistic, but
Speaker 1: it seems he really needed to be.
Speaker 3: Yeah.
Speaker 5: Absolutely, it's a massive message jump.
Speaker 4: As you just said, that's because it reported profit that
Speaker 4: was much higher, much much higher than analyst expectations. And
Speaker 4: then the margin also improved quite massively, and we had
Speaker 4: a big bat on margin as well. And that was
Speaker 4: down to cost cutting initiatives. So Volvo announced a few
Speaker 4: months ago that it was cutting three thousand jobs and
Speaker 4: that is starting to kind of feed through into the
Speaker 4: profits starting to have a positive impact on the company,
Speaker 4: and that the benefits also happened earlier than expected. And
Speaker 4: Liz said that the quarter marks a clear inflection, and
Speaker 4: that is despite the fact that Volvo is very exposed
Speaker 4: to tariffs.
Speaker 5: It's owned controlled by a Chinese company.
Speaker 4: It has a lot of production facilities in China, although
Speaker 4: it has.
Speaker 5: Been moving some of these to Europe and to the US.
Speaker 4: So some analysts saying that, you know, there's not many
Speaker 4: car companies doing this well right now.
Speaker 3: In terms of the other stories that we're thinking about.
Speaker 3: The semiconductor company st Micro also reporting, always a firm
Speaker 3: eye on the semis.
Speaker 4: Yeah, absolutely, So sd micro is down this morning because
Speaker 4: it provided guidance that missed expectations, which kind of signals
Speaker 4: that the recovery in the chip industry is maybe not
Speaker 4: progressing as well as it was hoped. So that follows
Speaker 4: the update that we had earlier this week from Texas Instruments,
Speaker 4: which is a US company in that sector as well,
Speaker 4: and the Texas Instruments said that customers were pulling back
Speaker 4: on orders because of trade tensions and because of quite
Speaker 4: a shaky economy, and that the industrial and automotive and
Speaker 4: markets for that chiprotector were particularly a week. So obviously
Speaker 4: it's dealing with a lot of challenges at the moment
Speaker 4: that that sector. We've had tariffs, we also have rising
Speaker 4: China and US tensions. The US is trying to stop
Speaker 4: the delivery of AI chips to China and return. China
Speaker 4: is trying to limit exports of Star crucial for those
Speaker 4: chips and batteries. So there's been this tip for tat,
Speaker 4: there's been those tariffs, and all of that is really
Speaker 4: severely disrupting the chip supply chain, and that is weighing
Speaker 4: quite a lot on st micro.
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