WEBVTT - Inditex Gains, Stellantis Rises, Smiths Up

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's look at some of the stocks on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hepgar with Tom McKenzie.

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<v Speaker 3>We're joined by Bloomberg and report to Chloie Malay Chloe,

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<v Speaker 3>good morning, some fashion. First, the Indo text there's our

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<v Speaker 3>owner reporting much needed revenue growth.

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<v Speaker 4>Tell us more.

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<v Speaker 1>Yeah, so, very strong sales for Indi Texts, as you said,

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<v Speaker 1>so that really confirmed resilience in the face of much

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<v Speaker 1>weaker consumer sentiment, which is an issue that's of course

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<v Speaker 1>been flagged by some peers in that retail sector. But

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<v Speaker 1>it seems that Inditext has maybe been able to weather

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<v Speaker 1>that challenge a little bit better than competitors, and that

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<v Speaker 1>is providing, as you said, some relief and some reassurance

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<v Speaker 1>for investors after some lackluster performance from ind Texts recently,

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<v Speaker 1>and there had been concerns that the company was losing

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<v Speaker 1>steam and therefore this has been those results have been

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<v Speaker 1>very reassuring and we saw that reflected in those shares

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<v Speaker 1>that moved a much higher this morning, Lara, and Intertext

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<v Speaker 1>as a whole has been facing a lot of quite

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<v Speaker 1>a lot of slow down after reaching very great heights

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<v Speaker 1>during the pandemic when everyone was shopping online. So it's

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<v Speaker 1>also also been facing trade tensions of course, and softer demands,

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<v Speaker 1>so all of those challenges that are facing the retail sector,

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<v Speaker 1>as well as currency headwinds of course.

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<v Speaker 4>But part of the strategy going forward for.

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<v Speaker 1>Intertext is to refocus on the more upmarket segment and

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<v Speaker 1>essentially try to move away from its image as a

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<v Speaker 1>purely fast fashioned brand, which is going to be interesting

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<v Speaker 1>to watch given that its ability to translate trends into

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<v Speaker 1>designs in really really quick record time.

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<v Speaker 4>Is what made it so successful.

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<v Speaker 1>So an interesting move to want to be more in

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<v Speaker 1>that upmarket side of things.

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<v Speaker 4>What's going on with still Atis? Why is it a

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<v Speaker 4>positive and a pretty strong session for stances at the

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<v Speaker 4>car Group. Yeah, so we have two positive things for

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<v Speaker 4>Stilantis this morning.

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<v Speaker 1>So we had a UBS upgrade with and they're saying

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<v Speaker 1>that twenty twenty six will be the year that Stilantis

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<v Speaker 1>is able to make a comeback in North America, which

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<v Speaker 1>is obviously something that has been setting the stage for

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<v Speaker 1>throughout this year. And then there's also been a reported

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<v Speaker 1>plan from a Trump administration to undo fuel efficiency standards

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<v Speaker 1>that were put in place by the Biden administration. And

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<v Speaker 1>so the idea is that these standards, those few efficiency

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<v Speaker 1>standards are driving up the cost of new cars, and

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<v Speaker 1>this is a move that's part of Trump's wider push

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<v Speaker 1>to dismantle policies that he criticizes as an EV mandate.

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<v Speaker 1>The thing is that easing fuel economy requirements is not

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<v Speaker 1>really likely to change much for consumers immediately because carmakers

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<v Speaker 1>are planning their lineups kind of years in advance. But

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<v Speaker 1>shares are moving higher regardless of what they will actually

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<v Speaker 1>mean in practice for Stilantis this morning. So we have

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<v Speaker 1>got that upgrade and that Trump plan and that is

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<v Speaker 1>seen as a positive for the company.

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<v Speaker 3>Okay, so that on EVS, Yeah, which is interesting, isn't it?

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<v Speaker 3>What's been happening on that front in Europe. Let's also

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<v Speaker 3>think about Smith, which is a company based in the UK.

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<v Speaker 3>They make these security scanners. What have they've been saying today?

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<v Speaker 1>So, yeah, so it's an engineering company and they sold

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<v Speaker 1>their Smith's detection unit to a private equity firm CVC.

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<v Speaker 4>For a value of two billion pounds.

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<v Speaker 1>So this Smith Detection unit is one that makes those

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<v Speaker 1>airport scanners where you don't have to take out your liquids,

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<v Speaker 1>So that's what they're primarily known for. And this is

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<v Speaker 1>part of a strategy revamped for the company. And so

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<v Speaker 1>they had four units before and they decided to sell

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<v Speaker 1>two of those and to refocus fully on their core

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<v Speaker 1>industrial operations instead. So last earlily earlier this year, they

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<v Speaker 1>were actually sold Smith Interconnect, which was a division that

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<v Speaker 1>made cables and wiring. But the share move today mostly

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<v Speaker 1>has to do with the fact that the cell price

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<v Speaker 1>was at the top end of expectations for Smith Detect

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<v Speaker 1>and so a big portion of those proceeds will be

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<v Speaker 1>returned to investors, and as saying that this really repositions

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<v Speaker 1>Smith's as a more focused at lina company and that's

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<v Speaker 1>making investors quite happy.

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

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