WEBVTT - STMicro Jumps, Heineken Falls, L'Oreal Rises

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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 have a look at some of the stocks on

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<v Speaker 3>the move today. Hey in Europe, I'm Caroline Hepkin. I'm

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<v Speaker 3>joined by Bloomberg with border Chloe Malay. Good morning, Chloe.

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<v Speaker 3>So we're thinking about the Usity Ran conflict, not quite

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<v Speaker 3>in a hot war, but also no signs really of

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<v Speaker 3>peace negotiations. And we're thinking about earnings estimates, estimate beating

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<v Speaker 3>results for st micro Electronics. How have investors reacted there?

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<v Speaker 4>Very well?

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<v Speaker 1>So, yeah, as you mentioned, better outlook for the second

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<v Speaker 1>quarter than expected for st micro, and this really shows

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<v Speaker 1>that demand is picking up once again after this extended slowdown.

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<v Speaker 1>So sc micro is quite an interesting chip maker because

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<v Speaker 1>it is exposed somewhat to AI, but not only that,

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<v Speaker 1>and it has actually a lot of exposure to other

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<v Speaker 1>end markets, including the automotive and market, industrial personal electronics

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<v Speaker 1>and market, and so all of that had seen a

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<v Speaker 1>little bit of weakness. Of course, if we think about

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<v Speaker 1>the auto sector, which made up about around forty five

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<v Speaker 1>percent of the revenue, last year with Tesla as one

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<v Speaker 1>of the main customers.

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<v Speaker 4>That was a market that had been struggling for a

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<v Speaker 4>little bit.

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<v Speaker 1>There was also the personal electronics segment, so Apple is

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<v Speaker 1>also a main customer there.

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<v Speaker 4>That's a big one for st Micro.

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<v Speaker 1>Those sectors personal electronics and autos were really hit by

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<v Speaker 1>tariffs and that had hurt demand in turn for st Micro.

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<v Speaker 1>But today's results seem to confirm that things are getting

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<v Speaker 1>back on track from some of those end markets. And

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<v Speaker 1>st micro is also expanding its air exposure, so that

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<v Speaker 1>has been a boost. It struck a deal to supply

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<v Speaker 1>semiconductors to AWS for example, So you know, expectations are

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<v Speaker 1>very very high for all of those ship makers. But

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<v Speaker 1>the big share jump that we saw today forest Micro

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<v Speaker 1>and the reader cross that we've seen for the likes

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<v Speaker 1>of Infinian for example, this really confirms that there is

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<v Speaker 1>actually further to go in terms of that share performance,

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<v Speaker 1>and it's quite reassuring for investors.

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<v Speaker 3>So that's a st Microelectronics. Meanwhile, Heineken not such a

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<v Speaker 3>positive story.

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<v Speaker 4>Why not?

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<v Speaker 1>Yeah, Well, the crux of the issues that people don't

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<v Speaker 1>drink beer as much as they used to really, so

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<v Speaker 1>Heineken and its closest competitors, so AB and bev and Carsberg,

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<v Speaker 1>they have all three of them have been dealing with

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<v Speaker 1>the exact same problem, which is there's been a real

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<v Speaker 1>slowdown in alcohol consumption across major markets, and today's results

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<v Speaker 1>from Heineken really confirm that, with beer volumes falling more

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<v Speaker 1>than expected. And the problem for Heinigen, and what explains

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<v Speaker 1>today share price for declining, is that it is actually

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<v Speaker 1>taking the longest out of those two piers that have

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<v Speaker 1>mentioned to turn around the business.

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<v Speaker 4>To last year, it's said that.

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<v Speaker 1>It would cut about seven percent of the workforce to

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<v Speaker 1>kind of streamline operations get productivity back on track. But

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<v Speaker 1>today's update seems to show that things are taking a

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<v Speaker 1>little bit longer than expected.

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<v Speaker 4>And you know, if we add the.

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<v Speaker 1>Problem of this weaker consumer sentiment now because of that,

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<v Speaker 1>it's higher energy costs that actually makes a turn around

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<v Speaker 1>even harder.

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<v Speaker 4>So I think.

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<v Speaker 1>Maybe the one silver lining is that we do have

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<v Speaker 1>the World Cup coming later this year, so that might

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<v Speaker 1>just boost a little bit of the beer volumes.

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<v Speaker 3>Yeah, maybe, But there's also the issue around a prolonged wall,

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<v Speaker 3>which threatens Heineken because that means higher energy prices for

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<v Speaker 3>that business, although they're also very focus on emerging markets

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<v Speaker 3>as well in terms of selling that bit. I can't

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<v Speaker 3>say I know an awful lot about beer drinking, I

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<v Speaker 3>must admit, But anyway, let's also think about Laurel's latest numbers.

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<v Speaker 3>I mean, that was quite well received by markets this morning.

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<v Speaker 4>Yeah, very well received, a really great morning for Loreal.

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<v Speaker 1>Actually it reported very strong and moon for a haircare product,

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<v Speaker 1>skincare fragrances as well. So that really suggests a rebound

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<v Speaker 1>of recovery and we're seen as very encouraging where shares

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<v Speaker 1>getting a real big boost this morning. So Laurier has

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<v Speaker 1>proven more resilient to kind of a broader consumer slowdown

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<v Speaker 1>than some of its peers because it just has such

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<v Speaker 1>a wide range of you know, it goes from really

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<v Speaker 1>specialist skincare to very expensive soaps, then kind of mass

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<v Speaker 1>market cheaper makeup as well, and so it is able

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<v Speaker 1>to kind of better withstand as some of that slow down.

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<v Speaker 1>But the resilience of that global beauty market is interesting

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<v Speaker 1>in the context of Unilever, for example, getting rid of

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<v Speaker 1>its food assets and really really wanting to refocus on beauty.

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<v Speaker 1>So it seems that it's a really lucrative market with

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<v Speaker 1>young people getting more and more into skincare and aging

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<v Speaker 1>population also wanting better skincare. So there's a bit of

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<v Speaker 1>optimism there for that market, and it really is in

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<v Speaker 1>contrast with all of those other consumer names warning of

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<v Speaker 1>all of the pain that there is to come because

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<v Speaker 1>of the around more.

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