WEBVTT - LVMH Surges, ASML Jumps, Stellantis Up

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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>Now let's look at some of the individual stocks on

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<v Speaker 3>the move today here in Europe. I'm Caroline Hepkett and

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<v Speaker 3>I'm joined by Blueberg reporter of Chloe Malay. Chloe, good morning,

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<v Speaker 3>Good morning. So the French market doing very very well

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<v Speaker 3>thanks to a bit more political optimism. I mean, let's

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<v Speaker 3>see how long it lasts, but at least for now,

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<v Speaker 3>the French names up and LVMH in particular is up.

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<v Speaker 3>Tell us more.

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<v Speaker 1>Yeah, LVMH is up, and the broader luxury sector is

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<v Speaker 1>up this morning on hopes that it might be turning

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<v Speaker 1>a corner. So LVM matrix is obviously very much a

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<v Speaker 1>bell weather for that industry. Had sales return to growth

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<v Speaker 1>in the third quarter, which was a positive surprise given

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<v Speaker 1>expectations of a continued decline after a couple of tough quarters.

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<v Speaker 1>For LVMH, sales at all divisions actually exceeded estimates, including

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<v Speaker 1>the Fashion and Leather Goods unit, which is the most

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<v Speaker 1>important one, and even the Wines and Spirit division, which

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<v Speaker 1>was struggling for a while, also posted revenue growth. It's

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<v Speaker 1>also worth noting that sells in a China in the

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<v Speaker 1>region that includes China rowse two percent, which is a

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<v Speaker 1>big turn around for a region that has seen so

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<v Speaker 1>much weakness as well over the last couple of years.

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<v Speaker 1>So Alyssa saying that this is really a step in

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<v Speaker 1>the right direction for both LVMH and that kind of

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<v Speaker 1>wider luxury sector and showing maybe that the slowdown in

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<v Speaker 1>luxury demand might be easing a little bit and that

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<v Speaker 1>a pick up in China in particular might be on

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<v Speaker 1>the horizon. So we saw other massive jumps in other

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<v Speaker 1>luxury names like carrying at Amez Christian Diure that you

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<v Speaker 1>mentioned as well. So we'll see if this materializes as

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<v Speaker 1>kind of a sector wide story when we get more

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<v Speaker 1>earnings coming through the next few weeks.

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<v Speaker 3>Yeah, that's going to be a very busy time, isn't it.

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<v Speaker 3>The cat carn't overall though up by the most since

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<v Speaker 3>at least may overall up by two point four percent

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<v Speaker 3>this morning. I mean that's also partly so it's idiosyncratics

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<v Speaker 3>to do those individual names. It is also with the

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<v Speaker 3>core new the Prime Minister getting the backing of the

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<v Speaker 3>Socialists and maybe being able to get through at least

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<v Speaker 3>the next immediate political hurdle of these two no confidence

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<v Speaker 3>votes tomorrow. We've also been looking at the orders for

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<v Speaker 3>the Dutch chip equipment maker ASML. This is the other

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<v Speaker 3>hugely important part of the market story at the moment.

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<v Speaker 1>Yeah, absolutely, so, expectations were very high going to the

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<v Speaker 1>earnings for ASML. We had seen a really massive rally

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<v Speaker 1>in the shares over the last month or so and

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<v Speaker 1>by and large ASML delivered so orders, as you mentioned,

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<v Speaker 1>be expectations in a third quarter that was driven by

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<v Speaker 1>massive investments in AI that kind of lead to growing

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<v Speaker 1>demand for the chip making machines. The boom in AI

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<v Speaker 1>spanding is a direct boost for SML because it is

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<v Speaker 1>the only only company that makes the very specific machines

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<v Speaker 1>that are needed to produce the most sophisticated chip. So

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<v Speaker 1>it's a very positive update and we can see that

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<v Speaker 1>reflected in the shares this morning. There is one tougher spot,

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<v Speaker 1>which is at China. The outlook for twenty twenty six

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<v Speaker 1>in general is cautious because sales to China are expected

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<v Speaker 1>to decrease significantly in twenty twenty six, and that has

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<v Speaker 1>to do with ASML being hit by those restrictions on

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<v Speaker 1>what it can sell to China, given that the US

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<v Speaker 1>is trying to kind of rain in the chip industry

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<v Speaker 1>there because it sees it as a threat to national security.

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<v Speaker 1>So there will be disruptions for SML coming from that

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<v Speaker 1>to watch out for as well.

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<v Speaker 3>Okay, Silantis and a big plan to expand in the US.

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<v Speaker 1>Yeah, we'll invest thirteen billion dollars in the US over

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<v Speaker 1>the next four years, so it will try it'll do

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<v Speaker 1>that to kind of try and curb the impact of

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<v Speaker 1>tariffs and reinforce its presence in the US market. This

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<v Speaker 1>investment was expected. Bloomberg had reported earlier this month that

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<v Speaker 1>Silantis was set to announce an investment of about ten

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<v Speaker 1>billion dollars. This is the confirmation and this is really

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<v Speaker 1>driving the shares up this morning. It's quite an ambitious

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<v Speaker 1>attempt by Silantis to try and rebuild a really struggling

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<v Speaker 1>business in the US. The previous management to kind of

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<v Speaker 1>prioritize investments in Europe and moved manufacturing to Mexico. So

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<v Speaker 1>now we see a big strategy shift back to the

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<v Speaker 1>US with US build products and trying to appeal to

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<v Speaker 1>US consumers. So the plan is to introduce five new

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<v Speaker 1>models over those next four years and to try and

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<v Speaker 1>get Americans to buy is Jeep SUVs again. So let's

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<v Speaker 1>see if it works. In any case, Unions in the

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<v Speaker 1>US are very happy for what it means for work,

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<v Speaker 1>as we're talking about five thousand factory jobs, so quite significant.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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