WEBVTT - Brunello Cucinelli Gains, Sodexo Plunges, BP Dips

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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 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 1>by Bloomberg reporter Chloe Melee Chloy.

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<v Speaker 3>Good morning.

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<v Speaker 1>Let's start then with Brunello Cucinelli, the luxury stock gaining

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<v Speaker 1>as much as six point six percent following their earnings.

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<v Speaker 4>Tell us more Yes, adding season is starting, which I'm

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<v Speaker 4>sure everyone is very excited about. Brunello Cucinelli is often

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<v Speaker 4>the very first name in their luxury space to report,

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<v Speaker 4>and it tends to set the tone a little bit

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<v Speaker 4>and it is a positive turn.

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<v Speaker 3>As you said, those shares.

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<v Speaker 4>Moving higher this morning, so we've got revenue beating estimates

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<v Speaker 4>and really growing across all regions. And then also some

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<v Speaker 4>optimism for the year ahead as well. And so Bloomberg

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<v Speaker 4>Intelligence said that the results really confirmed that Brunellukutch Nellie's

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<v Speaker 4>focus on the more affluent part of the luxury market

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<v Speaker 4>is working, especially in the context of the geopolitical tensions

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<v Speaker 4>and then the economic downturn that comes with that. So

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<v Speaker 4>this is really the same thing that Emmas benefits from

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<v Speaker 4>as well, which is that their target audience is essentially

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<v Speaker 4>so wealthy that they're not as affected by inflationary pressures

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<v Speaker 4>or we consumer sentiment as much as you know, you

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<v Speaker 4>and I would be. And so we'll be hearing from

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<v Speaker 4>Emmas as well next week, so we'll see if that

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<v Speaker 4>is also the case for them.

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<v Speaker 3>And we also have LVMH and caring next week.

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<v Speaker 4>So by next Friday, a week from now, we'll have

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<v Speaker 4>a better sense of how well luxury is doing and

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<v Speaker 4>which names really within that space are standing out.

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<v Speaker 1>I very quickly a centered and I said, then when

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<v Speaker 1>you said, you and I suggesting that we aren't luxury sharper,

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<v Speaker 1>which I feel like it's not the sort of amage

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<v Speaker 1>that we want to necessarily be projecting. You know, let's

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<v Speaker 1>say aspirational about it. Perhaps we could be the sort

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<v Speaker 1>of people that are shopping in these companies too. Exactly exactly,

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<v Speaker 1>we'll talk later. Let's turn next to Share that is

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<v Speaker 1>den Sharply this morning, this is the French catering companies

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<v Speaker 1>to Taxel.

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<v Speaker 4>Yeah, very bad day for them, so they cut their

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<v Speaker 4>guidance this morning and they expect the weakest sales growth

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<v Speaker 4>in five years for this year, and it said that

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<v Speaker 4>there had been both internal and external challenges. So internally

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<v Speaker 4>there's been a lot of underinvestment and some execution challenges,

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<v Speaker 4>they said, and that means that Sodexo is essentially underperformed

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<v Speaker 4>its competitors in the broader market.

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<v Speaker 3>And then externally there's of course the.

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<v Speaker 4>Macro uncertainty resulting in some lower volumes as well, and

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<v Speaker 4>that's probably something that we're going to be hearing a

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<v Speaker 4>lot from companies throughout this earning season. And this is

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<v Speaker 4>saying this is very much a matter of the new

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<v Speaker 4>CEO clearing the decks and gearing up for a reset,

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<v Speaker 4>although that will be a challenging So the new CEO

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<v Speaker 4>was appointed back in October and he's already overseen kind

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<v Speaker 4>of a big review of contracts and of assets and

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<v Speaker 4>that's already resulted in about eighty million euros of provisions

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<v Speaker 4>tied to those underperforming assets. So now it's really a

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<v Speaker 4>matter of moving that forward and resetting that strategy and

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<v Speaker 4>rebuilding that credibility according to analysts. But in the meantime,

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<v Speaker 4>that guidance cut has really really hit the shares.

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<v Speaker 1>This morning, indeed, Yeah, a big drop in those share prices.

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<v Speaker 1>We are keeping an eye, of course, on energy companies

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<v Speaker 1>again today, Chloe. With the US around talks in focus,

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<v Speaker 1>you've been looking at BP among others.

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<v Speaker 4>Yeah, there's a bit of weakness in those oil companies,

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<v Speaker 4>including BP, this morning after what has been a very

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<v Speaker 4>turbulent week for that sector.

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<v Speaker 3>There was obviously the huge drop in.

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<v Speaker 4>Oil prices and oil companies shares on Wednesday because of

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<v Speaker 4>that ceasefire agreement, and then the reversal of that yesterday

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<v Speaker 4>because hope was really quickly replaced by fears that the

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<v Speaker 4>ceasefire wouldn't hold.

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<v Speaker 3>Today, it's a bit more of a mixed picture.

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<v Speaker 4>Markets are a bit unsure, kind of neither optimistic nor pessimistic,

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<v Speaker 4>but kind of just holding their breath really until the

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<v Speaker 4>peace talks starts. So US and AROUND will be meeting

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<v Speaker 4>in Pakistan on Saturday, and the main sticking point is

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<v Speaker 4>going to be that reopening of the Strait of Hall Moves.

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<v Speaker 4>Traffic still isn't flowing through the strait, but Trump said

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<v Speaker 4>that he's optimistic that a deal can be struck with Irun.

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<v Speaker 4>In the meantime, though we're seeing oil all of those oil.

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<v Speaker 3>Companies being in slightly negative territory.

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<v Speaker 2>This morning the Stock Mover's Report from Bloomberg Radio. Check

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