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 look at some of the individual stocks on the
Speaker 3: move today in Europe. I'm Caroline Hepgar with Lizzie Burden,
Speaker 3: were joined by Bloomberg reporter Climb Malay. So megaweek of
Speaker 3: earnings and we finish with nat West in terms of
Speaker 3: banks in the UK.
Speaker 1: Yeah, and on the face of it, for Networks it
Speaker 1: looks pretty positive, so it'd be expectations for a lot
Speaker 1: of different metrics. It said that customers were still borrowing
Speaker 1: and saving quite a bit, and so that means that
Speaker 1: it will be able to achieve the upper end of
Speaker 1: its guidance for twenty twenty six. It also set aside
Speaker 1: less than expected to cover bed loans, which is in
Speaker 1: contrast with what other European banks have been saying throughout
Speaker 1: the week, with a lot of them actually having higher provisions.
Speaker 1: But Networks has actually fell this morning, so it seems
Speaker 1: that all of this was not enough maybe for investors.
Speaker 1: So a list noted that the improved guidance was actually
Speaker 1: already expected and already priced in, and that some metrics
Speaker 1: like net interest income missed estimates as well, So overall
Speaker 1: there is a little bit of disappointment, but it's not
Speaker 1: necessarily a worrying update from NETWIST. One analyst said that
Speaker 1: this is the kind of update that bank investors can
Speaker 1: work with in the really nervous market that we've got
Speaker 1: at the moment. You know, it's an update that's not flawless,
Speaker 1: but it's profitable, well capitalized, backed by a better guidance,
Speaker 1: so it's essentially good enough. And overall UK banks this
Speaker 1: week I've pointed to actually a fair bit of resilience
Speaker 1: given the geopolitical context that we're operating in, and saying
Speaker 1: that there is no sign of stress yet but signaling
Speaker 1: that there might be a rise in unemployment, that there
Speaker 1: might be some impact from that higher inflation, but perhaps
Speaker 1: the second quarter will give a greater sense of what
Speaker 1: the impact actually is.
Speaker 3: Now, we've all been watching the King's visit to Washington
Speaker 3: and New York, but no one more closely, it seems
Speaker 3: in Diagia.
Speaker 1: Yeah, absolutely. Diado's up this morning after Trump has said
Speaker 1: that he would be removing some whiskey tariffs following a
Speaker 1: visit from King Charles. So that's a big win for
Speaker 1: the Scottish whiskey industry. You know, in twenty twenty five
Speaker 1: Scotland sent almost one billion dollars of Scotch to the US,
Speaker 1: so it's a really major market. And it also signals
Speaker 1: that Trump really does have a soft spot for the
Speaker 1: royal family. This is of course coming at a very
Speaker 1: interesting sign for this so called special relationship between the
Speaker 1: US and the UK, given how much Trump has been
Speaker 1: a criticizing kised Armer over disagreements after the war in Iran,
Speaker 1: but then also the threat to take over Greenland. So
Speaker 1: we've got a special relationship now warming up once again,
Speaker 1: thanks in part to how much Trump loves the Royals
Speaker 1: and King Charles. And that's great news for Diado and
Speaker 1: we're getting the results next week actually for that company,
Speaker 1: and it seems that it does need that booster. Has
Speaker 1: been dealing with a weak consumer confidence and people trading
Speaker 1: down to cheaper brands, so this removed of tariffs would
Speaker 1: be would be definitely a welcome relief.
Speaker 3: You know what, it's none of these speeches actually from
Speaker 3: that state visit by King Charles and Queen Camilla to
Speaker 3: the us. That sticks in my mind's actually the fashion
Speaker 3: that they wore, the fact that they reflected that the
Speaker 3: King and Queen reflected the colors that the Trumps were wearing,
Speaker 3: or maybe they had agreed it together. So what you know,
Speaker 3: when Camilla was wearing dark series pink, you know, the
Speaker 3: first lady was wearing light ping and so on, I
Speaker 3: thought that spoke even more. You know, it's often the
Speaker 3: royals have obviously focused on you know, those symbols much
Speaker 3: more than speeches often, but I thought that spoke volumes. Anyway,
Speaker 3: let's about that, and let's think about peers and traders
Speaker 3: giving Pierson a passing grade.
Speaker 1: Yes, indeed to piers and provides things like virtual learning
Speaker 1: products and things like digital textbooks. And of course it
Speaker 1: was one of the companies that got caught in that
Speaker 1: software sellar from earlier this year. But as we've actually
Speaker 1: seen throughout this earning season, those software companies are actually
Speaker 1: doing better than expected. So we saw sap Doso Systems,
Speaker 1: cap Gemini, all of those companies that seen that she
Speaker 1: has really hurt by those fears around AI disruption, all
Speaker 1: of them had quite resilient earnings, stronger sales than expected.
Speaker 1: A brighter outlook than expected for a lot of them
Speaker 1: as well. In Pearson is following in the same trajectory,
Speaker 1: had strong sales confirmed its outlook. So there's what those
Speaker 1: companies have been saying since the beginning of the sell
Speaker 1: off was that they were going to be a winners,
Speaker 1: not AI losers. But there was real reluctance from investors
Speaker 1: to believe them. But now maybe after this earning season,
Speaker 1: you know, some of those fears would have maybe eased
Speaker 1: a little bit, and so we are seeing Pearson shares
Speaker 1: up quite strongly this morning.
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