Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today in Europe. I'm Stephen Carroll with Lizzie Burden, and
Speaker 3: we're joined by Bloomberg reporter Chloe Mane Chloy.
Speaker 1: Good morning.
Speaker 3: Let's start with Volkswagen announcing a beat on cash flow
Speaker 3: and rebounding from the tariff uncertainty.
Speaker 1: Yeah.
Speaker 4: Well, it's not often that I come on here and
Speaker 4: say that it's a good day for carmakers, but today
Speaker 4: it definitely is involved.
Speaker 1: To happen once in a while, Yeah, it can happen.
Speaker 4: And Volksbagen in particular, as you mentioned, is doing well
Speaker 4: this morning, and as you mentioned, there is a couple
Speaker 4: of reasons behind that.
Speaker 1: So, first of all, it did say last night that
Speaker 1: it ended twenty.
Speaker 4: Twenty five with more cash in its automotive division than
Speaker 4: it had expected, and that is because it's essentially saving
Speaker 4: a lot of money by delaying projects and investments in
Speaker 4: electric vehicles, so it's pushing back payments to suppliers and
Speaker 4: spending life on things like equipment, tools, research, and so
Speaker 4: this lower capital spending, it's better liquidity, reassured investors. And
Speaker 4: then the other thing, the bigger picture is of course
Speaker 4: Trump and Trump saying that he wouldn't impose tariffs on
Speaker 4: the countries that I've said they were against his efforts
Speaker 4: to acquire Greenland. So when he announced those tariffs and
Speaker 4: said that they would be imposed on February first, the
Speaker 4: car making sector took a really big hit because of
Speaker 4: how exposed of an industry it is to global trade
Speaker 4: into tariffs, and so this reversal from Trump is seen
Speaker 4: as a very positive for the sector. And yeah, there's
Speaker 4: not many details, but as Lizzie mentioned, is enough for markets.
Speaker 4: And so we have now essentially proved that one of
Speaker 4: the biggest carmakers is finding steadier footing. And then there's
Speaker 4: also now this tariff threat being walked back, and so
Speaker 4: both of those things have been very positive. And we've
Speaker 4: seen all of those car makers in the green actually
Speaker 4: this morning and Vogs bag and really leading that challenge
Speaker 4: as well.
Speaker 2: Now, Claire, you know like A just can't be and
Speaker 2: M down today one point one percent because of a
Speaker 2: cut to its earnings.
Speaker 3: Outlock tell us more.
Speaker 4: Yeah, so it cut its guidance again, and so this
Speaker 4: time is because of the costs of its turnaround plan.
Speaker 1: So just to rewind a bit, essentially one nonprofit.
Speaker 4: Back in October, I said that a review of the
Speaker 4: business had revealed some really big missteps, like duplicated promotions
Speaker 4: and too many product ranges, and in announced plan to
Speaker 4: bring the company back to growth. And then two weeks later,
Speaker 4: so still in October, it said that it had made
Speaker 4: an accounting error, and so it cuts its guidance again,
Speaker 4: and then the CFO left as well, and so all
Speaker 4: of that led to a lot of weakness in the
Speaker 4: share price back in twenty twenty five.
Speaker 1: And today it's saying that the.
Speaker 4: Turnaround plan that it had announced last year is showing
Speaker 4: some very early signs of progress, but that all the
Speaker 4: measures that it's taking, like clearing inventory and reducing pricing
Speaker 4: for example, that's going to really hurt profit in the
Speaker 4: near terms, and so that's why it cut its target again.
Speaker 4: And that's of course not being taken super well by
Speaker 4: the market, and it will probably take a while for
Speaker 4: BNM to be kind of properly back on track because
Speaker 4: it's dealing with a lot of competition and also those
Speaker 4: increasing wage costs which are really weighing on retailers more generally.
Speaker 3: And then we're turning now to France and Ubisoft the
Speaker 3: games maker, cutting its guidance and cancing a number of
Speaker 3: new projects.
Speaker 4: Yeah, and that's really tough day to day for ub Soft.
Speaker 4: It's saw the steepest ever drop in the shads, talking
Speaker 4: about thirty percent, and that's because of that guidance cut
Speaker 4: and this announcement of a big restructuring. So it's trying
Speaker 4: to streamline the business and so it said it will
Speaker 4: be closing studios in Canada and Sweden and also cancel
Speaker 4: six games and delay seven other games. So one analyst
Speaker 4: said that this decision on the game shows that the
Speaker 4: internal operating model is broken and that management doesn't have
Speaker 4: a grasp on the development a cycle. And ub Soft
Speaker 4: has really struggled to remain competitive in the last few
Speaker 4: years and the games that it has put out haven't
Speaker 4: really resonated with audiences the way that they needed to.
Speaker 4: And the company is now hoping that this major restructuring
Speaker 4: means that it can go back to growth in a
Speaker 4: couple of years. But in the meantime, this guidance ca
Speaker 4: and these delays on games means that there's probably going to.
Speaker 2: Be a lot of short term pag The Stock Movers
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