WEBVTT - H&M Soars, Philips Down, Volkswagen Rises

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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<v Speaker 3>the move today here in Europe. I'm joined by Bomberg

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<v Speaker 3>reporter Chloe Malay. Good morning, Chloe, Good morning. H and

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<v Speaker 3>M showing a rebound and rebuilding its confidence.

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<v Speaker 1>Yeah, absolutely so sorry. Margins and profit for H and

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<v Speaker 1>M were a way ahead of expectations actually, and so

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<v Speaker 1>the market was very very happy about that, and shares

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<v Speaker 1>really shot up this morning. So the reason why I

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<v Speaker 1>did so well was because it had really good cost controls.

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<v Speaker 1>That was one of the main reasons. But it's also

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<v Speaker 1>because it really refocused on its core H and MR

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<v Speaker 1>brand and it really was ramping up advertising for that

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<v Speaker 1>core H and M brand, and that's really really helped,

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<v Speaker 1>and it helped it kind of offset what are otherwise

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<v Speaker 1>kind of really big and and real challenges for that

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<v Speaker 1>retail sector. Of course, the really weak consumer confidence that

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<v Speaker 1>we still see across Europe, but also tariff's of course,

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<v Speaker 1>n that tariff threat. This is the second consecutive quarter

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<v Speaker 1>where results actually exceeded expectations, So it seems that this

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<v Speaker 1>strategy of really focusing on marketing is paying off. And

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<v Speaker 1>if we look at what's happened across that retail sector

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<v Speaker 1>for other companies, Intertext, which owned Zara, also offered really

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<v Speaker 1>a positive outlook earlier this month, saying that autumn sales

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<v Speaker 1>had started much better than expected. But then if we

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<v Speaker 1>look at the UK, Next had offered quite a negative

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<v Speaker 1>outlook and said that UK consumer confidence was still really

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<v Speaker 1>low and that was really going to weigh on profit

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<v Speaker 1>going forward. So it seems that the key variable here

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<v Speaker 1>is exposure to the UK, so we'll have to keep

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<v Speaker 1>an eye on that.

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<v Speaker 3>Okay, Well, in terms of tariffs, you mentioned it there

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<v Speaker 3>with H and M News that President Trump is potentially

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<v Speaker 3>going to probe robotics and pharmaceuticals and that that could

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<v Speaker 3>maybe lead to more levees. I mean, there aren't that

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<v Speaker 3>many robotics companies, a couple in Europe really big ones,

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<v Speaker 3>but also pharmaceuticals that are slightly larger, device makers like Phillips.

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<v Speaker 3>So what are we looking at this morning? Yeah?

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<v Speaker 1>Absolutely, so Phillips was weaker this morning, but then also

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<v Speaker 1>other companies within that sector, companies like Smith and Nephew,

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<v Speaker 1>like Convetec, like Simmons, Healtheniers, and so, as you mentioned,

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<v Speaker 1>the Trump administration is trying to set the stage really

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<v Speaker 1>for tariffs on as you mentioned, robotics, industrial machinery, and

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<v Speaker 1>those medical devices, with the goal of course being to

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<v Speaker 1>kind of encourage domestic productions for those industry And that's

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<v Speaker 1>because of concern about US over reliance on front countries

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<v Speaker 1>for something things like syringes for example, cafters or whatever.

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<v Speaker 1>And so the Department of Commerce now has has two

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<v Speaker 1>hundred and seventy days to deliver the policy recommendtion. So

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<v Speaker 1>the tariffs are not there yet, but obviously that the

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<v Speaker 1>threat of that has really driven those shares lower across

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<v Speaker 1>those sectors.

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<v Speaker 3>Meanwhile, the auto makers are bouncing a little bit higher

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<v Speaker 3>because the auto imports the agreement to go to fifteen

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<v Speaker 3>percent has now been implemented and it's retroactive, right.

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<v Speaker 1>Yeah, absolutely so, Volkswagen, Stellantis, BMW, Urano all were up

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<v Speaker 1>today on the back of that. So, as you mentioned,

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<v Speaker 1>the lower tariffs of fifteen percent are now in effect,

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<v Speaker 1>and so Bloomberg Intelligence estimated that Porsche, Old Mercedes and

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<v Speaker 1>BMW will gain a combined one point three billion euros

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<v Speaker 1>in profit and cash boost in the second half of

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<v Speaker 1>the year because of it being applied retrospectively. Another boost

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<v Speaker 1>as well that's driving the shares forward is that the

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<v Speaker 1>car car selles in Europe rose for the second month

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<v Speaker 1>in a row in August, and there was really strong

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<v Speaker 1>demon for electric vehicles and for hybrid models as well,

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<v Speaker 1>so that is really good news for the European car

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<v Speaker 1>makers that have been trying to compete with Chinese manufacturersmover's.

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<v Speaker 2>Report from Bloomberg Radio. Check back with us throughout the

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