1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,600 --> 00:00:18,040 Speaker 3: Let's take a look at some of the stocks on 5 00:00:18,120 --> 00:00:20,280 Speaker 3: the move today here in your if. I'm Caroline Hepget 6 00:00:20,280 --> 00:00:22,759 Speaker 3: and I'm joined by Bomberg with Portaclo Malay. Good morning. 7 00:00:23,640 --> 00:00:27,200 Speaker 3: So let's think about France then, obviously, given the political 8 00:00:27,360 --> 00:00:31,920 Speaker 3: story that's happening, there's been a surprise though for the 9 00:00:32,080 --> 00:00:35,639 Speaker 3: luxury sector. So perhaps the opposite of what was happening yesterday. 10 00:00:35,760 --> 00:00:39,000 Speaker 1: Yeah. Absolutely, So we've got LVMHN Caring today up and 11 00:00:39,040 --> 00:00:41,760 Speaker 1: that is on the back of an upgrade from Morgan Stanley. 12 00:00:41,800 --> 00:00:44,720 Speaker 1: So they were both upgraded to an overweight rating. So 13 00:00:44,800 --> 00:00:47,080 Speaker 1: Morgan Stanley said that even though it was a little 14 00:00:47,080 --> 00:00:48,800 Speaker 1: bit too early to go kind of all in on 15 00:00:48,880 --> 00:00:51,839 Speaker 1: luxury and that there was continued weakness to be expected 16 00:00:52,000 --> 00:00:55,640 Speaker 1: in twenty twenty six. It said that industry insiders were 17 00:00:55,680 --> 00:00:59,080 Speaker 1: most positive, that they have been about medium terms prospect 18 00:00:59,200 --> 00:01:01,600 Speaker 1: for two or three years, but within that they are 19 00:01:01,640 --> 00:01:04,160 Speaker 1: kind of winners and losers. So our VMH and Caring 20 00:01:04,240 --> 00:01:07,080 Speaker 1: are the winners. They should benefit from a bust of 21 00:01:07,120 --> 00:01:10,160 Speaker 1: creativity and newness, and by that they mean a sort 22 00:01:10,200 --> 00:01:13,640 Speaker 1: of new wave of creative directors and the fashion pendulum 23 00:01:13,640 --> 00:01:17,280 Speaker 1: that is moving more towards very colorful, very maximalist styles. 24 00:01:17,400 --> 00:01:20,319 Speaker 1: And obviously we know that Gucci, which is owned by Caring, 25 00:01:20,440 --> 00:01:24,480 Speaker 1: has done more kind of colorful style and more colorful aesthetic. 26 00:01:25,240 --> 00:01:27,360 Speaker 1: And on the other hand, MS and Prada are kind 27 00:01:27,400 --> 00:01:29,840 Speaker 1: of on the loser's side of things, and they were 28 00:01:29,880 --> 00:01:32,920 Speaker 1: downgraded to equal weight by Morgan Stanley, with Prada in 29 00:01:32,959 --> 00:01:36,679 Speaker 1: particular expected to see a lot of negative impact from 30 00:01:36,680 --> 00:01:39,640 Speaker 1: a higher competition. So this is quite good news for 31 00:01:39,640 --> 00:01:41,920 Speaker 1: a VMH ahead of the earnings the trading update that 32 00:01:41,959 --> 00:01:44,360 Speaker 1: they have next week, and also good news for Caring 33 00:01:44,400 --> 00:01:46,840 Speaker 1: given that they have well it's another boost for them 34 00:01:46,880 --> 00:01:49,920 Speaker 1: really after the confidence are really rising after the new 35 00:01:50,000 --> 00:01:51,320 Speaker 1: Sea was appointed. 36 00:01:51,680 --> 00:01:54,440 Speaker 3: Yeah. Absolutely, yes, if you look at all the kind 37 00:01:54,480 --> 00:01:59,640 Speaker 3: of fashion shows, you know, oranges and reds and vibrant yellow, vibrant. Yeah, 38 00:01:59,680 --> 00:02:03,080 Speaker 3: it's it's bright, doesn't it. Forget that kind of quiet luxury. Look, yeah, 39 00:02:03,120 --> 00:02:06,760 Speaker 3: it's done. Now you'ren't glad? Actually really are there? We go. 40 00:02:07,640 --> 00:02:11,840 Speaker 3: Let's also think though about the tobacco company Imperial Brands 41 00:02:11,880 --> 00:02:14,000 Speaker 3: again another top performer in Europe. 42 00:02:14,000 --> 00:02:16,800 Speaker 1: But why yeah, well, cigarettes are doing well and also 43 00:02:16,880 --> 00:02:19,440 Speaker 1: new generation products like vapes are doing well. So Imperial 44 00:02:19,440 --> 00:02:22,079 Speaker 1: Brands said that is on track to meet it's four 45 00:02:22,160 --> 00:02:25,080 Speaker 1: year target. It's thanks to growth in both tobacco and 46 00:02:25,520 --> 00:02:29,040 Speaker 1: new generation products. What it caused new generation products and 47 00:02:29,360 --> 00:02:32,560 Speaker 1: that also and that's probably what got investors most excited. 48 00:02:32,600 --> 00:02:35,320 Speaker 1: It also announced a new buyback of one point forty 49 00:02:35,360 --> 00:02:38,160 Speaker 1: five billion pounds. So it's a good place to be 50 00:02:38,200 --> 00:02:40,480 Speaker 1: in for the new CEO who started just on October 51 00:02:40,560 --> 00:02:43,160 Speaker 1: the first, and he really has to deliver on the 52 00:02:43,160 --> 00:02:46,760 Speaker 1: Imperial Brands five year strategy to twenty thirty, which includes 53 00:02:47,000 --> 00:02:50,160 Speaker 1: kind of, you know, continuing growth in cigarettes, but in 54 00:02:50,200 --> 00:02:54,240 Speaker 1: also building scaleing that kind of new generation product division 55 00:02:54,280 --> 00:02:56,880 Speaker 1: and also running a kind of a more efficient organization. 56 00:02:57,000 --> 00:02:59,160 Speaker 1: So and Liss said that this was a positive surprise, 57 00:02:59,200 --> 00:03:01,280 Speaker 1: and it's said the right for that new management. 58 00:03:01,400 --> 00:03:04,080 Speaker 3: Okay, we'll bringing together those two stories. I was walking 59 00:03:04,080 --> 00:03:06,799 Speaker 3: down the high street recently saw a colorful advert. I 60 00:03:06,800 --> 00:03:09,480 Speaker 3: thought it was chewing gum, and I realized that all 61 00:03:09,480 --> 00:03:14,399 Speaker 3: the brightly colored tins were actually sort of that chewing tobacco. Yeah, 62 00:03:14,760 --> 00:03:19,440 Speaker 3: those products, which I just thought was quite fascinating. Lastly, though, 63 00:03:19,600 --> 00:03:23,680 Speaker 3: bit of retail, this is the British retailer B and M. 64 00:03:24,000 --> 00:03:27,840 Speaker 3: On their results, this is not so positive. 65 00:03:27,760 --> 00:03:30,640 Speaker 1: Not at all. So shares dropped more than twenty twenty 66 00:03:30,639 --> 00:03:33,480 Speaker 1: two percent this morning, a huge job, and it's because 67 00:03:33,480 --> 00:03:36,600 Speaker 1: it flagged a weaker than expected profit for this fiscal year, 68 00:03:36,640 --> 00:03:39,200 Speaker 1: and it said it's im implementing a strategic plan that 69 00:03:39,200 --> 00:03:41,760 Speaker 1: could take as much as eighteen months to actually have 70 00:03:41,880 --> 00:03:44,520 Speaker 1: an impact. So the CEO said that he had conducted 71 00:03:44,560 --> 00:03:47,600 Speaker 1: the review of the business and found a weak operational 72 00:03:47,880 --> 00:03:53,040 Speaker 1: execution which includes esthetic and duplicative promotions in stores, too 73 00:03:53,040 --> 00:03:57,080 Speaker 1: many product ranges which added kind of more complexity in 74 00:03:57,120 --> 00:04:00,680 Speaker 1: the supply chain, and also very poor on sheelf availability 75 00:04:00,960 --> 00:04:03,200 Speaker 1: of items. And so it said that all of that 76 00:04:03,240 --> 00:04:05,880 Speaker 1: will have an impact on profit, with the guidance coming 77 00:04:05,920 --> 00:04:09,920 Speaker 1: in at least forty pounds below analyst expectations. So now 78 00:04:10,120 --> 00:04:12,440 Speaker 1: the CEO has launched this new strategic plan which is 79 00:04:12,480 --> 00:04:15,480 Speaker 1: called back to eminem B and M basics, and that 80 00:04:15,520 --> 00:04:19,520 Speaker 1: includes kind of adjusting that pricing to remain competitive, clearing 81 00:04:19,520 --> 00:04:23,240 Speaker 1: out some of those ranging and restoring that availability install 82 00:04:23,279 --> 00:04:25,800 Speaker 1: But in the meantime, investors are not too happy about 83 00:04:25,800 --> 00:04:26,520 Speaker 1: that profit ruling. 84 00:04:27,560 --> 00:04:31,600 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 85 00:04:31,680 --> 00:04:34,279 Speaker 2: us throughout the day for the latest roundup of companies 86 00:04:34,320 --> 00:04:37,440 Speaker 2: making news on Wall Street and for the latest market 87 00:04:37,480 --> 00:04:41,919 Speaker 2: moving headlines. 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