Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now let's look at some of the individual stocks on
Speaker 3: the move today here in Europe. I'm Caroline Hepkett and
Speaker 3: I'm joined by Blueberg reporter of Chloe Malay. Chloe, good morning,
Speaker 3: Good morning. So the French market doing very very well
Speaker 3: thanks to a bit more political optimism. I mean, let's
Speaker 3: see how long it lasts, but at least for now,
Speaker 3: the French names up and LVMH in particular is up.
Speaker 3: Tell us more.
Speaker 1: Yeah, LVMH is up, and the broader luxury sector is
Speaker 1: up this morning on hopes that it might be turning
Speaker 1: a corner. So LVM matrix is obviously very much a
Speaker 1: bell weather for that industry. Had sales return to growth
Speaker 1: in the third quarter, which was a positive surprise given
Speaker 1: expectations of a continued decline after a couple of tough quarters.
Speaker 1: For LVMH, sales at all divisions actually exceeded estimates, including
Speaker 1: the Fashion and Leather Goods unit, which is the most
Speaker 1: important one, and even the Wines and Spirit division, which
Speaker 1: was struggling for a while, also posted revenue growth. It's
Speaker 1: also worth noting that sells in a China in the
Speaker 1: region that includes China rowse two percent, which is a
Speaker 1: big turn around for a region that has seen so
Speaker 1: much weakness as well over the last couple of years.
Speaker 1: So Alyssa saying that this is really a step in
Speaker 1: the right direction for both LVMH and that kind of
Speaker 1: wider luxury sector and showing maybe that the slowdown in
Speaker 1: luxury demand might be easing a little bit and that
Speaker 1: a pick up in China in particular might be on
Speaker 1: the horizon. So we saw other massive jumps in other
Speaker 1: luxury names like carrying at Amez Christian Diure that you
Speaker 1: mentioned as well. So we'll see if this materializes as
Speaker 1: kind of a sector wide story when we get more
Speaker 1: earnings coming through the next few weeks.
Speaker 3: Yeah, that's going to be a very busy time, isn't it.
Speaker 3: The cat carn't overall though up by the most since
Speaker 3: at least may overall up by two point four percent
Speaker 3: this morning. I mean that's also partly so it's idiosyncratics
Speaker 3: to do those individual names. It is also with the
Speaker 3: core new the Prime Minister getting the backing of the
Speaker 3: Socialists and maybe being able to get through at least
Speaker 3: the next immediate political hurdle of these two no confidence
Speaker 3: votes tomorrow. We've also been looking at the orders for
Speaker 3: the Dutch chip equipment maker ASML. This is the other
Speaker 3: hugely important part of the market story at the moment.
Speaker 1: Yeah, absolutely, so, expectations were very high going to the
Speaker 1: earnings for ASML. We had seen a really massive rally
Speaker 1: in the shares over the last month or so and
Speaker 1: by and large ASML delivered so orders, as you mentioned,
Speaker 1: be expectations in a third quarter that was driven by
Speaker 1: massive investments in AI that kind of lead to growing
Speaker 1: demand for the chip making machines. The boom in AI
Speaker 1: spanding is a direct boost for SML because it is
Speaker 1: the only only company that makes the very specific machines
Speaker 1: that are needed to produce the most sophisticated chip. So
Speaker 1: it's a very positive update and we can see that
Speaker 1: reflected in the shares this morning. There is one tougher spot,
Speaker 1: which is at China. The outlook for twenty twenty six
Speaker 1: in general is cautious because sales to China are expected
Speaker 1: to decrease significantly in twenty twenty six, and that has
Speaker 1: to do with ASML being hit by those restrictions on
Speaker 1: what it can sell to China, given that the US
Speaker 1: is trying to kind of rain in the chip industry
Speaker 1: there because it sees it as a threat to national security.
Speaker 1: So there will be disruptions for SML coming from that
Speaker 1: to watch out for as well.
Speaker 3: Okay, Silantis and a big plan to expand in the US.
Speaker 1: Yeah, we'll invest thirteen billion dollars in the US over
Speaker 1: the next four years, so it will try it'll do
Speaker 1: that to kind of try and curb the impact of
Speaker 1: tariffs and reinforce its presence in the US market. This
Speaker 1: investment was expected. Bloomberg had reported earlier this month that
Speaker 1: Silantis was set to announce an investment of about ten
Speaker 1: billion dollars. This is the confirmation and this is really
Speaker 1: driving the shares up this morning. It's quite an ambitious
Speaker 1: attempt by Silantis to try and rebuild a really struggling
Speaker 1: business in the US. The previous management to kind of
Speaker 1: prioritize investments in Europe and moved manufacturing to Mexico. So
Speaker 1: now we see a big strategy shift back to the
Speaker 1: US with US build products and trying to appeal to
Speaker 1: US consumers. So the plan is to introduce five new
Speaker 1: models over those next four years and to try and
Speaker 1: get Americans to buy is Jeep SUVs again. So let's
Speaker 1: see if it works. In any case, Unions in the
Speaker 1: US are very happy for what it means for work,
Speaker 1: as we're talking about five thousand factory jobs, so quite significant.
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