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 have a look at some of the stocks on
Speaker 3: the move today. Hey in Europe, I'm Caroline Hepkin. I'm
Speaker 3: joined by Bloomberg with border Chloe Malay. Good morning, Chloe.
Speaker 3: So we're thinking about the Usity Ran conflict, not quite
Speaker 3: in a hot war, but also no signs really of
Speaker 3: peace negotiations. And we're thinking about earnings estimates, estimate beating
Speaker 3: results for st micro Electronics. How have investors reacted there?
Speaker 4: Very well?
Speaker 1: So, yeah, as you mentioned, better outlook for the second
Speaker 1: quarter than expected for st micro, and this really shows
Speaker 1: that demand is picking up once again after this extended slowdown.
Speaker 1: So sc micro is quite an interesting chip maker because
Speaker 1: it is exposed somewhat to AI, but not only that,
Speaker 1: and it has actually a lot of exposure to other
Speaker 1: end markets, including the automotive and market, industrial personal electronics
Speaker 1: and market, and so all of that had seen a
Speaker 1: little bit of weakness. Of course, if we think about
Speaker 1: the auto sector, which made up about around forty five
Speaker 1: percent of the revenue, last year with Tesla as one
Speaker 1: of the main customers.
Speaker 4: That was a market that had been struggling for a
Speaker 4: little bit.
Speaker 1: There was also the personal electronics segment, so Apple is
Speaker 1: also a main customer there.
Speaker 4: That's a big one for st Micro.
Speaker 1: Those sectors personal electronics and autos were really hit by
Speaker 1: tariffs and that had hurt demand in turn for st Micro.
Speaker 1: But today's results seem to confirm that things are getting
Speaker 1: back on track from some of those end markets. And
Speaker 1: st micro is also expanding its air exposure, so that
Speaker 1: has been a boost. It struck a deal to supply
Speaker 1: semiconductors to AWS for example, So you know, expectations are
Speaker 1: very very high for all of those ship makers. But
Speaker 1: the big share jump that we saw today forest Micro
Speaker 1: and the reader cross that we've seen for the likes
Speaker 1: of Infinian for example, this really confirms that there is
Speaker 1: actually further to go in terms of that share performance,
Speaker 1: and it's quite reassuring for investors.
Speaker 3: So that's a st Microelectronics. Meanwhile, Heineken not such a
Speaker 3: positive story.
Speaker 4: Why not?
Speaker 1: Yeah, Well, the crux of the issues that people don't
Speaker 1: drink beer as much as they used to really, so
Speaker 1: Heineken and its closest competitors, so AB and bev and Carsberg,
Speaker 1: they have all three of them have been dealing with
Speaker 1: the exact same problem, which is there's been a real
Speaker 1: slowdown in alcohol consumption across major markets, and today's results
Speaker 1: from Heineken really confirm that, with beer volumes falling more
Speaker 1: than expected. And the problem for Heinigen, and what explains
Speaker 1: today share price for declining, is that it is actually
Speaker 1: taking the longest out of those two piers that have
Speaker 1: mentioned to turn around the business.
Speaker 4: To last year, it's said that.
Speaker 1: It would cut about seven percent of the workforce to
Speaker 1: kind of streamline operations get productivity back on track. But
Speaker 1: today's update seems to show that things are taking a
Speaker 1: little bit longer than expected.
Speaker 4: And you know, if we add the.
Speaker 1: Problem of this weaker consumer sentiment now because of that,
Speaker 1: it's higher energy costs that actually makes a turn around
Speaker 1: even harder.
Speaker 4: So I think.
Speaker 1: Maybe the one silver lining is that we do have
Speaker 1: the World Cup coming later this year, so that might
Speaker 1: just boost a little bit of the beer volumes.
Speaker 3: Yeah, maybe, But there's also the issue around a prolonged wall,
Speaker 3: which threatens Heineken because that means higher energy prices for
Speaker 3: that business, although they're also very focus on emerging markets
Speaker 3: as well in terms of selling that bit. I can't
Speaker 3: say I know an awful lot about beer drinking, I
Speaker 3: must admit, But anyway, let's also think about Laurel's latest numbers.
Speaker 3: I mean, that was quite well received by markets this morning.
Speaker 4: Yeah, very well received, a really great morning for Loreal.
Speaker 1: Actually it reported very strong and moon for a haircare product,
Speaker 1: skincare fragrances as well. So that really suggests a rebound
Speaker 1: of recovery and we're seen as very encouraging where shares
Speaker 1: getting a real big boost this morning. So Laurier has
Speaker 1: proven more resilient to kind of a broader consumer slowdown
Speaker 1: than some of its peers because it just has such
Speaker 1: a wide range of you know, it goes from really
Speaker 1: specialist skincare to very expensive soaps, then kind of mass
Speaker 1: market cheaper makeup as well, and so it is able
Speaker 1: to kind of better withstand as some of that slow down.
Speaker 1: But the resilience of that global beauty market is interesting
Speaker 1: in the context of Unilever, for example, getting rid of
Speaker 1: its food assets and really really wanting to refocus on beauty.
Speaker 1: So it seems that it's a really lucrative market with
Speaker 1: young people getting more and more into skincare and aging
Speaker 1: population also wanting better skincare. So there's a bit of
Speaker 1: optimism there for that market, and it really is in
Speaker 1: contrast with all of those other consumer names warning of
Speaker 1: all of the pain that there is to come because
Speaker 1: of the around more.
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