WEBVTT - Richemont Rises, PPHE Hotels Gains, Ubisoft Halted

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

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

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

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

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<v Speaker 3>today in Europe with Louise Moon. I'm Stephen Carroll, Louise.

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<v Speaker 3>Good morning. Let's start with rieschmant shares seven percent hire

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<v Speaker 3>this morning after their latest earnings update.

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<v Speaker 1>Indeed, they had their first half results this morning, beating

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<v Speaker 1>estimates essentially across the board, but the standout sector was

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<v Speaker 1>really their jewelry division, so that was sales in their

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<v Speaker 1>jurry division was up fourteen percent, so that helped overall

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<v Speaker 1>sales rise about ten percent in their first half. To

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<v Speaker 1>anless is saying that jewelry remains and I quote, a

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<v Speaker 1>remarkable locomotive for growth and that these results confirmed that

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<v Speaker 1>the company as a whole is the fastest growing within

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<v Speaker 1>the luxury sector. And if you look back, they've really

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<v Speaker 1>withstood the luxury downturn five better than the rivals, and

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<v Speaker 1>that is largely due to the jewelry.

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<v Speaker 4>Their jewelry obviously is at.

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<v Speaker 1>Very high value and it's seen as a better store

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<v Speaker 1>of value than kind of expensive clothes or leather goods

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<v Speaker 1>that other luxury companies might be selling. So the stock

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<v Speaker 1>is up seventeen percent this year. There is of course

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<v Speaker 1>a bit of headwinds from tariffs, and they have said

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<v Speaker 1>this morning they expect quite a sizable hit from that,

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<v Speaker 1>but they'rewithstanding that. So stock up seventeen percent this year

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<v Speaker 1>and soaring as you say this morning, and looking back,

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<v Speaker 1>as I say, really outperforming the wider luxury sector. And

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<v Speaker 1>then if you kind of take a step back and

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<v Speaker 1>look at their peers or their rivals results recently, it

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<v Speaker 1>paints quite a similar picture. So LVMHDAL or Burberry pointing

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<v Speaker 1>to kind of starting things starting to improve. Essentially, there's

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<v Speaker 1>hopes that this broader slump might be subsiding, but reached

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<v Speaker 1>one is really the standout among them.

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<v Speaker 3>Yeah, and be interesting to see that movement in the

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<v Speaker 3>share price this morning, and other companies shares are soaring today.

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<v Speaker 3>Ppat Hotel group listed in London looking at some options

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<v Speaker 3>for real estate investment.

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<v Speaker 4>Yeah, so it's quite an interesting answer.

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<v Speaker 1>This is a group that's behind Park Plaza hotels in

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<v Speaker 1>Europe and they own a lot of hotels across Europe.

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<v Speaker 1>So their biggest shareholders considering options over their stake, so

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<v Speaker 1>they said this morning they could either contribute more capital

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<v Speaker 1>or sell some of their stakes, so holding meetings with

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<v Speaker 1>financial investors to discuss options. We reported overnight that they've

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<v Speaker 1>approached buyout firms about possibly taking the company private. So

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<v Speaker 1>details are kind of unclear as well as any timings,

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<v Speaker 1>and of course there isn't any certainty over whether any

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<v Speaker 1>offers will be made. They say they haven't got any

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<v Speaker 1>offers yet, but they are calling themselves in an offer period,

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<v Speaker 1>so shares, as you say, rising on the back of that.

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<v Speaker 1>They didn't give much reason as to why they are

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<v Speaker 1>trading at quite a big discount to their valuation of their

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<v Speaker 1>own portfolio, so potentially, you know, that could be one reason.

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<v Speaker 1>And also these Biggert shaholders, they have been with the

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<v Speaker 1>company for quite a long time. One of them has

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<v Speaker 1>been there since nineteen ninety one, so again potentially a reason,

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<v Speaker 1>but they haven't given much so we'll be closely tracking

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<v Speaker 1>that one to see what happens, if and what happens.

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<v Speaker 3>Yeah, indeed want to keep an eye on as well.

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<v Speaker 3>And some shares that aren't trading this morning, Louise, and

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<v Speaker 3>that's in you BEI staff to what's happened.

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<v Speaker 4>Yeah, the French gaming company.

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<v Speaker 1>So they're behind games like Assassin's Creed, which obviously very

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<v Speaker 1>well known. They've delayed their first self financial results and

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<v Speaker 1>this was just so they were meant to report today

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<v Speaker 1>and they delayed them just before they were meant to

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<v Speaker 1>be released.

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<v Speaker 4>They haven't said much, they haven't given any reason.

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<v Speaker 1>They just said they'll publish in the coming days and

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<v Speaker 1>they've also asked for trading to be halted in France

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<v Speaker 1>until those results are published. In a memo to staff,

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<v Speaker 1>they say they were taking extra time to finalize the

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<v Speaker 1>closing of the of the first half of these results.

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<v Speaker 1>But this could so There's already been a lot of

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<v Speaker 1>concerns around Ubisoft, so this could escalate those concerns. For example,

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<v Speaker 1>in May, they said they needed more time to develop

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<v Speaker 1>some of their big titles and they forecast that no

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<v Speaker 1>revenue growth would happen for the full year. And their

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<v Speaker 1>shares already down forty nine percent this year, and if

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<v Speaker 1>you look further back, they're way down from a peak

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<v Speaker 1>in twenty eighteen, about ninety three percent off that. So

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<v Speaker 1>we'll be keeping an eye for when they'll be reporting.

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<v Speaker 1>But as I say, that could escalate concerns and extend

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<v Speaker 1>setbacks that they've experienced recently.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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