Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today here in Europe. I'm joined by Bomberg
Speaker 3: reporter Chloe Malay. Good morning, Chloe, Good morning. H and
Speaker 3: M showing a rebound and rebuilding its confidence.
Speaker 1: Yeah, absolutely so sorry. Margins and profit for H and
Speaker 1: M were a way ahead of expectations actually, and so
Speaker 1: the market was very very happy about that, and shares
Speaker 1: really shot up this morning. So the reason why I
Speaker 1: did so well was because it had really good cost controls.
Speaker 1: That was one of the main reasons. But it's also
Speaker 1: because it really refocused on its core H and MR
Speaker 1: brand and it really was ramping up advertising for that
Speaker 1: core H and M brand, and that's really really helped,
Speaker 1: and it helped it kind of offset what are otherwise
Speaker 1: kind of really big and and real challenges for that
Speaker 1: retail sector. Of course, the really weak consumer confidence that
Speaker 1: we still see across Europe, but also tariff's of course,
Speaker 1: n that tariff threat. This is the second consecutive quarter
Speaker 1: where results actually exceeded expectations, So it seems that this
Speaker 1: strategy of really focusing on marketing is paying off. And
Speaker 1: if we look at what's happened across that retail sector
Speaker 1: for other companies, Intertext, which owned Zara, also offered really
Speaker 1: a positive outlook earlier this month, saying that autumn sales
Speaker 1: had started much better than expected. But then if we
Speaker 1: look at the UK, Next had offered quite a negative
Speaker 1: outlook and said that UK consumer confidence was still really
Speaker 1: low and that was really going to weigh on profit
Speaker 1: going forward. So it seems that the key variable here
Speaker 1: is exposure to the UK, so we'll have to keep
Speaker 1: an eye on that.
Speaker 3: Okay, Well, in terms of tariffs, you mentioned it there
Speaker 3: with H and M News that President Trump is potentially
Speaker 3: going to probe robotics and pharmaceuticals and that that could
Speaker 3: maybe lead to more levees. I mean, there aren't that
Speaker 3: many robotics companies, a couple in Europe really big ones,
Speaker 3: but also pharmaceuticals that are slightly larger, device makers like Phillips.
Speaker 3: So what are we looking at this morning? Yeah?
Speaker 1: Absolutely, so Phillips was weaker this morning, but then also
Speaker 1: other companies within that sector, companies like Smith and Nephew,
Speaker 1: like Convetec, like Simmons, Healtheniers, and so, as you mentioned,
Speaker 1: the Trump administration is trying to set the stage really
Speaker 1: for tariffs on as you mentioned, robotics, industrial machinery, and
Speaker 1: those medical devices, with the goal of course being to
Speaker 1: kind of encourage domestic productions for those industry And that's
Speaker 1: because of concern about US over reliance on front countries
Speaker 1: for something things like syringes for example, cafters or whatever.
Speaker 1: And so the Department of Commerce now has has two
Speaker 1: hundred and seventy days to deliver the policy recommendtion. So
Speaker 1: the tariffs are not there yet, but obviously that the
Speaker 1: threat of that has really driven those shares lower across
Speaker 1: those sectors.
Speaker 3: Meanwhile, the auto makers are bouncing a little bit higher
Speaker 3: because the auto imports the agreement to go to fifteen
Speaker 3: percent has now been implemented and it's retroactive, right.
Speaker 1: Yeah, absolutely so, Volkswagen, Stellantis, BMW, Urano all were up
Speaker 1: today on the back of that. So, as you mentioned,
Speaker 1: the lower tariffs of fifteen percent are now in effect,
Speaker 1: and so Bloomberg Intelligence estimated that Porsche, Old Mercedes and
Speaker 1: BMW will gain a combined one point three billion euros
Speaker 1: in profit and cash boost in the second half of
Speaker 1: the year because of it being applied retrospectively. Another boost
Speaker 1: as well that's driving the shares forward is that the
Speaker 1: car car selles in Europe rose for the second month
Speaker 1: in a row in August, and there was really strong
Speaker 1: demon for electric vehicles and for hybrid models as well,
Speaker 1: so that is really good news for the European car
Speaker 1: makers that have been trying to compete with Chinese manufacturersmover's.
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