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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market, harnessing the power of Bloomberg Data.

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Speaker 3: Let's take a look at some stocks on the move

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Speaker 3: today in Europe. I'm Stephen Carroll with Lizzie Burden, and

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Speaker 3: we're joined by Bloomberg reporter Chloe Mane Chloy.

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Speaker 1: Good morning.

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Speaker 3: Let's start with Volkswagen announcing a beat on cash flow

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Speaker 3: and rebounding from the tariff uncertainty.

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Speaker 1: Yeah.

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Speaker 4: Well, it's not often that I come on here and

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Speaker 4: say that it's a good day for carmakers, but today

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Speaker 4: it definitely is involved.

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Speaker 1: To happen once in a while, Yeah, it can happen.

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Speaker 4: And Volksbagen in particular, as you mentioned, is doing well

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Speaker 4: this morning, and as you mentioned, there is a couple

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Speaker 4: of reasons behind that.

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Speaker 1: So, first of all, it did say last night that

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Speaker 1: it ended twenty.

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Speaker 4: Twenty five with more cash in its automotive division than

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Speaker 4: it had expected, and that is because it's essentially saving

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Speaker 4: a lot of money by delaying projects and investments in

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Speaker 4: electric vehicles, so it's pushing back payments to suppliers and

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Speaker 4: spending life on things like equipment, tools, research, and so

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Speaker 4: this lower capital spending, it's better liquidity, reassured investors. And

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Speaker 4: then the other thing, the bigger picture is of course

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Speaker 4: Trump and Trump saying that he wouldn't impose tariffs on

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Speaker 4: the countries that I've said they were against his efforts

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Speaker 4: to acquire Greenland. So when he announced those tariffs and

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Speaker 4: said that they would be imposed on February first, the

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Speaker 4: car making sector took a really big hit because of

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Speaker 4: how exposed of an industry it is to global trade

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Speaker 4: into tariffs, and so this reversal from Trump is seen

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Speaker 4: as a very positive for the sector. And yeah, there's

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Speaker 4: not many details, but as Lizzie mentioned, is enough for markets.

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Speaker 4: And so we have now essentially proved that one of

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Speaker 4: the biggest carmakers is finding steadier footing. And then there's

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Speaker 4: also now this tariff threat being walked back, and so

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Speaker 4: both of those things have been very positive. And we've

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Speaker 4: seen all of those car makers in the green actually

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Speaker 4: this morning and Vogs bag and really leading that challenge

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Speaker 4: as well.

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Speaker 2: Now, Claire, you know like A just can't be and

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Speaker 2: M down today one point one percent because of a

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Speaker 2: cut to its earnings.

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Speaker 3: Outlock tell us more.

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Speaker 4: Yeah, so it cut its guidance again, and so this

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Speaker 4: time is because of the costs of its turnaround plan.

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Speaker 1: So just to rewind a bit, essentially one nonprofit.

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Speaker 4: Back in October, I said that a review of the

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Speaker 4: business had revealed some really big missteps, like duplicated promotions

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Speaker 4: and too many product ranges, and in announced plan to

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Speaker 4: bring the company back to growth. And then two weeks later,

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Speaker 4: so still in October, it said that it had made

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Speaker 4: an accounting error, and so it cuts its guidance again,

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Speaker 4: and then the CFO left as well, and so all

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Speaker 4: of that led to a lot of weakness in the

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Speaker 4: share price back in twenty twenty five.

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Speaker 1: And today it's saying that the.

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Speaker 4: Turnaround plan that it had announced last year is showing

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Speaker 4: some very early signs of progress, but that all the

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Speaker 4: measures that it's taking, like clearing inventory and reducing pricing

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Speaker 4: for example, that's going to really hurt profit in the

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Speaker 4: near terms, and so that's why it cut its target again.

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Speaker 4: And that's of course not being taken super well by

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Speaker 4: the market, and it will probably take a while for

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Speaker 4: BNM to be kind of properly back on track because

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Speaker 4: it's dealing with a lot of competition and also those

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Speaker 4: increasing wage costs which are really weighing on retailers more generally.

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Speaker 3: And then we're turning now to France and Ubisoft the

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Speaker 3: games maker, cutting its guidance and cancing a number of

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Speaker 3: new projects.

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Speaker 4: Yeah, and that's really tough day to day for ub Soft.

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Speaker 4: It's saw the steepest ever drop in the shads, talking

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Speaker 4: about thirty percent, and that's because of that guidance cut

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Speaker 4: and this announcement of a big restructuring. So it's trying

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Speaker 4: to streamline the business and so it said it will

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Speaker 4: be closing studios in Canada and Sweden and also cancel

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Speaker 4: six games and delay seven other games. So one analyst

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Speaker 4: said that this decision on the game shows that the

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Speaker 4: internal operating model is broken and that management doesn't have

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Speaker 4: a grasp on the development a cycle. And ub Soft

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Speaker 4: has really struggled to remain competitive in the last few

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Speaker 4: years and the games that it has put out haven't

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Speaker 4: really resonated with audiences the way that they needed to.

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Speaker 4: And the company is now hoping that this major restructuring

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Speaker 4: means that it can go back to growth in a

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Speaker 4: couple of years. But in the meantime, this guidance ca

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Speaker 4: and these delays on games means that there's probably going to.

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Speaker 2: Be a lot of short term pag The Stock Movers

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Speaker 2: Report from Bloomberg Radio. Check back with us throughout the

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Speaker 2: day for the latest roundup of companies making news on

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Speaker 2: Wall Street and for the latest market moving headlines. Listen

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