WEBVTT - Kering Rises, Volvo Surges, STMicro Drops

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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>Let's look at some stocks on the move today here

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<v Speaker 3>in Europe. I'm Caroline Hepko with Lizzie Burton and we're

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<v Speaker 3>joined by Bloomberg reporta Clomber Lake of morning. So lots

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<v Speaker 3>of choose from today then, because so many earnings. But

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<v Speaker 3>let's start with currying the Luxury group extending a brisk rally.

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<v Speaker 4>Yeah, absolutely, and that is because the cells in the

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<v Speaker 4>third quarter fell by much less than analysts had expected,

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<v Speaker 4>including the Gucci business, which was obviously the most important

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<v Speaker 4>one for Caring. And this was actually the first set

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<v Speaker 4>of results under the new CEO who was hired to

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<v Speaker 4>kind of lead Caring to recovery and turn things around.

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<v Speaker 5>And it seems that he's doing a pretty good job

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<v Speaker 5>so far. So don't.

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<v Speaker 4>Demand recovered quite well in North America. Sales also improved

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<v Speaker 4>in China. Obviously those are two of the most important

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<v Speaker 4>luxury markets. We are still in negative territory. We were

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<v Speaker 4>still talking about a sales drop overall. But and Liz,

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<v Speaker 4>I'm now kind of seeing a way out of that.

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<v Speaker 4>So some predict a return to growth as soon as

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<v Speaker 4>early twenty twenty six, which would be very positive for Caring.

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<v Speaker 4>It also kind of helps that Luca Demo, who who's

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<v Speaker 4>the new CEO, is trying to revive sales as the

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<v Speaker 4>same time as he's cutting costs and reducing debt. We've

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<v Speaker 4>seen that this week with the four billing euro cell

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<v Speaker 4>of the beauty division to Lareal. So this is quite

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<v Speaker 4>a good set quite good news for Caring, also a

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<v Speaker 4>set of good news for luxury more broadly. Obviously, VMH

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<v Speaker 4>did quite well, Ammas did well, although it always kind

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<v Speaker 4>of does. Carring is recovering, so there's a sector wide

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<v Speaker 4>story there and it's quite positive.

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<v Speaker 1>And I've got to ask you about Volvo because I

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<v Speaker 1>spoke to the CEO earlier and the shares are up

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<v Speaker 1>thirty one and a half percent. He seemed optimistic, but

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<v Speaker 1>it seems he really needed to be.

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<v Speaker 3>Yeah.

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<v Speaker 5>Absolutely, it's a massive message jump.

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<v Speaker 4>As you just said, that's because it reported profit that

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<v Speaker 4>was much higher, much much higher than analyst expectations. And

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<v Speaker 4>then the margin also improved quite massively, and we had

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<v Speaker 4>a big bat on margin as well. And that was

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<v Speaker 4>down to cost cutting initiatives. So Volvo announced a few

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<v Speaker 4>months ago that it was cutting three thousand jobs and

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<v Speaker 4>that is starting to kind of feed through into the

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<v Speaker 4>profits starting to have a positive impact on the company,

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<v Speaker 4>and that the benefits also happened earlier than expected. And

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<v Speaker 4>Liz said that the quarter marks a clear inflection, and

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<v Speaker 4>that is despite the fact that Volvo is very exposed

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<v Speaker 4>to tariffs.

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<v Speaker 5>It's owned controlled by a Chinese company.

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<v Speaker 4>It has a lot of production facilities in China, although

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<v Speaker 4>it has.

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<v Speaker 5>Been moving some of these to Europe and to the US.

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<v Speaker 4>So some analysts saying that, you know, there's not many

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<v Speaker 4>car companies doing this well right now.

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<v Speaker 3>In terms of the other stories that we're thinking about.

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<v Speaker 3>The semiconductor company st Micro also reporting, always a firm

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<v Speaker 3>eye on the semis.

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<v Speaker 4>Yeah, absolutely, So sd micro is down this morning because

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<v Speaker 4>it provided guidance that missed expectations, which kind of signals

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<v Speaker 4>that the recovery in the chip industry is maybe not

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<v Speaker 4>progressing as well as it was hoped. So that follows

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<v Speaker 4>the update that we had earlier this week from Texas Instruments,

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<v Speaker 4>which is a US company in that sector as well,

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<v Speaker 4>and the Texas Instruments said that customers were pulling back

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<v Speaker 4>on orders because of trade tensions and because of quite

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<v Speaker 4>a shaky economy, and that the industrial and automotive and

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<v Speaker 4>markets for that chiprotector were particularly a week. So obviously

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<v Speaker 4>it's dealing with a lot of challenges at the moment

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<v Speaker 4>that that sector. We've had tariffs, we also have rising

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<v Speaker 4>China and US tensions. The US is trying to stop

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<v Speaker 4>the delivery of AI chips to China and return. China

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<v Speaker 4>is trying to limit exports of Star crucial for those

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<v Speaker 4>chips and batteries. So there's been this tip for tat,

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<v Speaker 4>there's been those tariffs, and all of that is really

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<v Speaker 4>severely disrupting the chip supply chain, and that is weighing

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<v Speaker 4>quite a lot on st micro.

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

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