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 now at some of the stocks
Speaker 3: on the move today here in Europe. I'm Caroline Hepca
Speaker 3: and I'm joined as usual by Bloomberg with portacloim Lay.
Speaker 1: Good morning. So the turnaround.
Speaker 3: Plans that HSBC has been undertaking, they seem to have
Speaker 3: been quite big winners so far.
Speaker 1: We'll get onto other turnaround plans in a moment.
Speaker 4: Yeah, absolutely, so, very good results all around for HSBC
Speaker 4: this morning. So we have got a better than expected
Speaker 4: profit in twenty twenty five, things to strong performance in
Speaker 4: the wealth business, but also really good results at the
Speaker 4: Hong Kong franchise as well. And then the bank also
Speaker 4: said that it would it would hit a cost saving
Speaker 4: target ahead of schedule, six months ahead of schedule. So
Speaker 4: this all seems to point, as you said, to a
Speaker 4: turn of around that is paying off, that has paid off.
Speaker 4: So since taking over as CEO in twenty twenty four
Speaker 4: of George Elderry has led a really major restructuring of
Speaker 4: the bank.
Speaker 1: He's cut thousands of jobs.
Speaker 4: He's sold some businesses, some other businesses have been merged,
Speaker 4: some others have been closed, so a really major restructuring.
Speaker 4: And he also doubled down on a strategy of focusing
Speaker 4: on Asia and that's proven to be also very successful.
Speaker 4: So all of that is now paying off and we
Speaker 4: can see that in the earnings this morning, and the
Speaker 4: shares rose very strongly as a result, hitting a record
Speaker 4: as well, and that is after the market value for
Speaker 4: HSBC also broke through two hundred billion dollars for the
Speaker 4: first time in twenty twenty five, so that was a
Speaker 4: really key milestone, and this really strong start to the
Speaker 4: year that we can see today it might signal that
Speaker 4: we might see more record breaking ahead.
Speaker 1: For that bank.
Speaker 3: Absolutely, HSBC's pre tax profit twenty nine point nine billion
Speaker 3: dollars for a twenty twenty five on a slightly different scale,
Speaker 3: but I think very interesting. Aston Martin Lagonda, they've been
Speaker 3: in a turnaround for ages, but really struggling together.
Speaker 1: Yeah, very much so.
Speaker 4: But the market does love some efficiency measures, and so
Speaker 4: the shares rose this morning because the company said it
Speaker 4: would cut as much as twenty percent of its workforce,
Speaker 4: so that's much more than the previous round of drop cuts,
Speaker 4: which was about five percent of the workforce, and as
Speaker 4: the Martains said that there would allow it to make
Speaker 4: about forty million pounds in saving. So, as you mentioned,
Speaker 4: that's part of those turnaround efforts that are taking quite
Speaker 4: a while, and that is to kind of end those
Speaker 4: years and years of losses and reduce a massive debt pile.
Speaker 4: So the loss for twenty twenty five was of almost
Speaker 4: five hundred million pounds and Asam Martin also said that
Speaker 4: it doesn't expect cash flow to turn positive this year,
Speaker 4: so that will be a bit of a disappointment. It
Speaker 4: means that the company is not out of the woods
Speaker 4: just yet. It's been dealing with product delays with a
Speaker 4: slowdown in China, but the main problem really is US
Speaker 4: tariffs because the US is the biggest market. So that
Speaker 4: has led to three profit warnings this year. The latest
Speaker 4: was just a few days ago, just a few days
Speaker 4: before the earnings were released today.
Speaker 1: So for now, job.
Speaker 4: Cuts are making the market quite happy, but there's a
Speaker 4: lot to iron app for that company.
Speaker 3: Yeah, okay, then let's talk about Diaggio the drinks make
Speaker 3: I mean, maybe they're going to need a stift drink
Speaker 3: after today's earnings, can.
Speaker 1: We say that, yeah, I think we can.
Speaker 4: They cut guidance for the second time this fiscal year,
Speaker 4: and that is going to be really the first big
Speaker 4: challenge for the new ce who started just in January.
Speaker 4: So the problem for the company is as a just
Speaker 4: really weak demand in the US and China. Some of
Speaker 4: it is because of discretionary spending being a little bit weaker,
Speaker 4: but some of it is also because people are really
Speaker 4: cutting back.
Speaker 1: On their alcohol consumption.
Speaker 4: And so the new CEO, Dave Lewis, was appointed because
Speaker 4: he managed to turn around Tesco, so the hope was
Speaker 4: that he would be able.
Speaker 1: To turn around the JO as well.
Speaker 4: Of course, it's too soon to say whether he's set
Speaker 4: for success or not. Any will be revealing a strategy
Speaker 4: later this year, considering maybe acid disposals as well. So
Speaker 4: Jeffreys Andelist said that the first half was never going
Speaker 4: to be the time for Diagro strategic resets, so we
Speaker 4: have to wait a little bit more to see if
Speaker 4: that works out. But in the meantime, that guidance cut
Speaker 4: is really hitting the shots.
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