1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,720 --> 00:00:18,200 Speaker 3: Let's have a look now at some of the stocks 5 00:00:18,239 --> 00:00:20,360 Speaker 3: on the move today here in Europe. I'm Caroline Hepca 6 00:00:20,400 --> 00:00:23,079 Speaker 3: and I'm joined as usual by Bloomberg with portacloim Lay. 7 00:00:23,440 --> 00:00:26,600 Speaker 1: Good morning. So the turnaround. 8 00:00:26,120 --> 00:00:32,120 Speaker 3: Plans that HSBC has been undertaking, they seem to have 9 00:00:32,159 --> 00:00:34,479 Speaker 3: been quite big winners so far. 10 00:00:34,560 --> 00:00:36,680 Speaker 1: We'll get onto other turnaround plans in a moment. 11 00:00:36,880 --> 00:00:40,000 Speaker 4: Yeah, absolutely, so, very good results all around for HSBC 12 00:00:40,159 --> 00:00:42,760 Speaker 4: this morning. So we have got a better than expected 13 00:00:42,800 --> 00:00:45,720 Speaker 4: profit in twenty twenty five, things to strong performance in 14 00:00:45,760 --> 00:00:48,280 Speaker 4: the wealth business, but also really good results at the 15 00:00:48,320 --> 00:00:51,360 Speaker 4: Hong Kong franchise as well. And then the bank also 16 00:00:51,400 --> 00:00:54,280 Speaker 4: said that it would it would hit a cost saving 17 00:00:54,360 --> 00:00:57,320 Speaker 4: target ahead of schedule, six months ahead of schedule. So 18 00:00:57,640 --> 00:00:59,640 Speaker 4: this all seems to point, as you said, to a 19 00:00:59,680 --> 00:01:02,280 Speaker 4: turn of around that is paying off, that has paid off. 20 00:01:02,320 --> 00:01:05,680 Speaker 4: So since taking over as CEO in twenty twenty four 21 00:01:05,720 --> 00:01:10,480 Speaker 4: of George Elderry has led a really major restructuring of 22 00:01:10,800 --> 00:01:11,160 Speaker 4: the bank. 23 00:01:11,200 --> 00:01:13,000 Speaker 1: He's cut thousands of jobs. 24 00:01:13,000 --> 00:01:16,360 Speaker 4: He's sold some businesses, some other businesses have been merged, 25 00:01:16,520 --> 00:01:19,600 Speaker 4: some others have been closed, so a really major restructuring. 26 00:01:20,000 --> 00:01:22,759 Speaker 4: And he also doubled down on a strategy of focusing 27 00:01:23,040 --> 00:01:26,000 Speaker 4: on Asia and that's proven to be also very successful. 28 00:01:26,040 --> 00:01:29,920 Speaker 4: So all of that is now paying off and we 29 00:01:29,920 --> 00:01:32,240 Speaker 4: can see that in the earnings this morning, and the 30 00:01:32,319 --> 00:01:35,440 Speaker 4: shares rose very strongly as a result, hitting a record 31 00:01:35,560 --> 00:01:38,560 Speaker 4: as well, and that is after the market value for 32 00:01:38,720 --> 00:01:41,880 Speaker 4: HSBC also broke through two hundred billion dollars for the 33 00:01:41,920 --> 00:01:44,400 Speaker 4: first time in twenty twenty five, so that was a 34 00:01:44,440 --> 00:01:47,840 Speaker 4: really key milestone, and this really strong start to the 35 00:01:47,920 --> 00:01:49,880 Speaker 4: year that we can see today it might signal that 36 00:01:49,960 --> 00:01:52,480 Speaker 4: we might see more record breaking ahead. 37 00:01:52,160 --> 00:01:52,680 Speaker 1: For that bank. 38 00:01:52,960 --> 00:01:58,080 Speaker 3: Absolutely, HSBC's pre tax profit twenty nine point nine billion 39 00:01:58,400 --> 00:02:03,720 Speaker 3: dollars for a twenty twenty five on a slightly different scale, 40 00:02:03,800 --> 00:02:08,120 Speaker 3: but I think very interesting. Aston Martin Lagonda, they've been 41 00:02:08,120 --> 00:02:12,120 Speaker 3: in a turnaround for ages, but really struggling together. 42 00:02:12,680 --> 00:02:13,639 Speaker 1: Yeah, very much so. 43 00:02:13,840 --> 00:02:16,440 Speaker 4: But the market does love some efficiency measures, and so 44 00:02:16,480 --> 00:02:19,240 Speaker 4: the shares rose this morning because the company said it 45 00:02:19,240 --> 00:02:22,239 Speaker 4: would cut as much as twenty percent of its workforce, 46 00:02:22,280 --> 00:02:24,800 Speaker 4: so that's much more than the previous round of drop cuts, 47 00:02:24,800 --> 00:02:27,520 Speaker 4: which was about five percent of the workforce, and as 48 00:02:27,639 --> 00:02:29,519 Speaker 4: the Martains said that there would allow it to make 49 00:02:29,520 --> 00:02:32,960 Speaker 4: about forty million pounds in saving. So, as you mentioned, 50 00:02:32,960 --> 00:02:35,480 Speaker 4: that's part of those turnaround efforts that are taking quite 51 00:02:35,520 --> 00:02:37,799 Speaker 4: a while, and that is to kind of end those 52 00:02:37,880 --> 00:02:41,120 Speaker 4: years and years of losses and reduce a massive debt pile. 53 00:02:41,600 --> 00:02:43,760 Speaker 4: So the loss for twenty twenty five was of almost 54 00:02:43,760 --> 00:02:47,040 Speaker 4: five hundred million pounds and Asam Martin also said that 55 00:02:47,160 --> 00:02:50,280 Speaker 4: it doesn't expect cash flow to turn positive this year, 56 00:02:50,360 --> 00:02:53,040 Speaker 4: so that will be a bit of a disappointment. It 57 00:02:53,040 --> 00:02:55,040 Speaker 4: means that the company is not out of the woods 58 00:02:55,280 --> 00:02:57,720 Speaker 4: just yet. It's been dealing with product delays with a 59 00:02:57,800 --> 00:03:00,679 Speaker 4: slowdown in China, but the main problem really is US 60 00:03:00,800 --> 00:03:03,880 Speaker 4: tariffs because the US is the biggest market. So that 61 00:03:03,919 --> 00:03:06,800 Speaker 4: has led to three profit warnings this year. The latest 62 00:03:06,960 --> 00:03:09,560 Speaker 4: was just a few days ago, just a few days 63 00:03:09,600 --> 00:03:11,280 Speaker 4: before the earnings were released today. 64 00:03:11,760 --> 00:03:12,880 Speaker 1: So for now, job. 65 00:03:12,639 --> 00:03:15,320 Speaker 4: Cuts are making the market quite happy, but there's a 66 00:03:15,360 --> 00:03:16,840 Speaker 4: lot to iron app for that company. 67 00:03:17,360 --> 00:03:21,639 Speaker 3: Yeah, okay, then let's talk about Diaggio the drinks make 68 00:03:22,080 --> 00:03:24,400 Speaker 3: I mean, maybe they're going to need a stift drink 69 00:03:24,440 --> 00:03:26,440 Speaker 3: after today's earnings, can. 70 00:03:26,320 --> 00:03:28,359 Speaker 1: We say that, yeah, I think we can. 71 00:03:28,400 --> 00:03:30,959 Speaker 4: They cut guidance for the second time this fiscal year, 72 00:03:31,600 --> 00:03:33,359 Speaker 4: and that is going to be really the first big 73 00:03:33,440 --> 00:03:36,000 Speaker 4: challenge for the new ce who started just in January. 74 00:03:36,120 --> 00:03:38,600 Speaker 4: So the problem for the company is as a just 75 00:03:38,760 --> 00:03:41,480 Speaker 4: really weak demand in the US and China. Some of 76 00:03:41,520 --> 00:03:44,480 Speaker 4: it is because of discretionary spending being a little bit weaker, 77 00:03:44,520 --> 00:03:46,680 Speaker 4: but some of it is also because people are really 78 00:03:46,680 --> 00:03:47,440 Speaker 4: cutting back. 79 00:03:47,280 --> 00:03:48,520 Speaker 1: On their alcohol consumption. 80 00:03:48,720 --> 00:03:52,040 Speaker 4: And so the new CEO, Dave Lewis, was appointed because 81 00:03:52,080 --> 00:03:54,560 Speaker 4: he managed to turn around Tesco, so the hope was 82 00:03:54,640 --> 00:03:55,560 Speaker 4: that he would be able. 83 00:03:55,480 --> 00:03:57,160 Speaker 1: To turn around the JO as well. 84 00:03:57,200 --> 00:03:59,560 Speaker 4: Of course, it's too soon to say whether he's set 85 00:03:59,600 --> 00:04:02,760 Speaker 4: for success or not. Any will be revealing a strategy 86 00:04:02,960 --> 00:04:07,280 Speaker 4: later this year, considering maybe acid disposals as well. So 87 00:04:07,760 --> 00:04:10,560 Speaker 4: Jeffreys Andelist said that the first half was never going 88 00:04:10,600 --> 00:04:14,680 Speaker 4: to be the time for Diagro strategic resets, so we 89 00:04:14,760 --> 00:04:17,160 Speaker 4: have to wait a little bit more to see if 90 00:04:17,320 --> 00:04:19,520 Speaker 4: that works out. But in the meantime, that guidance cut 91 00:04:19,560 --> 00:04:20,640 Speaker 4: is really hitting the shots. 92 00:04:20,640 --> 00:04:25,360 Speaker 2: This morning, the Stock Movers report from Bloomberg Radio check 93 00:04:25,440 --> 00:04:27,760 Speaker 2: back with us throughout the day. For the latest roundup 94 00:04:27,800 --> 00:04:30,720 Speaker 2: of companies making news on Wall Street, and for the 95 00:04:30,800 --> 00:04:35,240 Speaker 2: latest market moving headlines. 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