WEBVTT - Broadcom Slides; Lululemon Jumps; UBS Hits 17-Year High

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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 today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Titel. Starting off

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<v Speaker 3>with the stock of the day that's dragging tech shares lower.

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<v Speaker 3>Yesterday was Oracle and Valerie. This morning, it's Broadcom. Good morning, Hey.

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<v Speaker 1>Good morning, Nathan. Happy Friday. Yes, another down day for

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<v Speaker 1>the NASDAG it looks like we're headed for on the

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<v Speaker 1>back of Broadcom earnings and the shares dropping around six

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<v Speaker 1>percent so far in pre market trade. They gave an

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<v Speaker 1>outlook that essentially just failed to meet expectations. The market

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<v Speaker 1>was disappointed to hear that the order backlog is only

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<v Speaker 1>seventy three billion dollars over the next six quarters. And

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<v Speaker 1>to add to that, the CEO during the conference call

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<v Speaker 1>with analysts failed to give a revenue forst for twenty

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<v Speaker 1>twenty six, just giving one for Q one of next year.

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<v Speaker 1>And I think all this combined just highlighted concerns that

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<v Speaker 1>have been lingering over Broadcom, that of tightening profit margins

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<v Speaker 1>for the chip maker. Broadcom does compete with Nvidia in

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<v Speaker 1>the highly competitive AI chip market space, so Broadcom on

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<v Speaker 1>a back foot, leading the nasdak lower down six percent.

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<v Speaker 3>I meanwhile on the front foot of all stocks. Lulu

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<v Speaker 3>Lemon for a change, Valerie.

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<v Speaker 1>Yeah, lul Lemon is in the green after earnings, up

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<v Speaker 1>nearly ten percent in pre market trade. They raised their

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<v Speaker 1>full year outlook and their sales beat expectations in the

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<v Speaker 1>third quarter, which was driven by growth in international markets.

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<v Speaker 1>But the juicy announcement came later that their CEO will

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<v Speaker 1>be stepping down in January. Now the retailer has yet

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<v Speaker 1>to find a replacement, but I think the market and

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<v Speaker 1>analysts investors are kind of excited about the prospect of

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<v Speaker 1>a new CEO, perhaps a new strategy after a period

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<v Speaker 1>of sluggish growth for the company. The stock is on

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<v Speaker 1>some fifty percent year to date, and it's been struggling

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<v Speaker 1>with sales growth recently. That really did peak after COVID

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<v Speaker 1>when we were all wearing y yoga clothes at home

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<v Speaker 1>in our couch. Since then, really the sales growth through

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<v Speaker 1>Lemon hasn't been pretty, and I think the market is

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<v Speaker 1>excited that perhaps the leadership change could shake things up

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<v Speaker 1>at the at leisure ware retailer.

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<v Speaker 3>And some regulatory change, at least reports of it, seems

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<v Speaker 3>to be met pretty well by investors in UBS.

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<v Speaker 1>Over in Switzerland, Ubs hitting a seventeen year high, the

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<v Speaker 1>highest price for UBS since two thousand and eight, up

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<v Speaker 1>three and a half percent in trade in Switzerland, and

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<v Speaker 1>this comes after some reports that Swiss lawmakers have proposed

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<v Speaker 1>allowing UBS to use at one bonds instead of equity

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<v Speaker 1>to meet capital requirements. Now, these proposals could give us

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<v Speaker 1>a way out of this political standoff between UBS and

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<v Speaker 1>the Swiss regulators. Remember it was reported earlier that UBS

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<v Speaker 1>had had talks with Treasury Secorary Scott Bessett looking at

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<v Speaker 1>moving there headquarters out of Switzerland to other areas which

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<v Speaker 1>have less onerous legislation. And this comes after a recent

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<v Speaker 1>effort to tighten bank rolls in Switzerland. The planned capital

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<v Speaker 1>reforms have really been a big cloud over UBS's share

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<v Speaker 1>price ever since the Swiss government started discussing this last year.

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<v Speaker 1>But it seems like UBS is reacting very positively to

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<v Speaker 1>this new proposal, which would give it some reprief on

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<v Speaker 1>the regulation front. They're up three and a half percent.

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<v Speaker 3>Speaking of repriefs, there's some reports out there that President

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<v Speaker 3>Trump is thinking of reclassifying cannabis, maybe giving the regulations

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<v Speaker 3>a little bit of relief there. What's that doing for

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<v Speaker 3>cannabis stocks this morning?

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<v Speaker 1>They are surging. We have Tilray brands up twenty eight percent,

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<v Speaker 1>canopy growth of twenty two percent, and various others having

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<v Speaker 1>double digit gains this morning. And this is on the

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<v Speaker 1>back of reporting that President Trump is expected to direct

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<v Speaker 1>his administration to reclassify marijuana as a less onerous drug.

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<v Speaker 1>The change would classify cannabis and the same bucket as

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<v Speaker 1>codeine and anabolic steroids rather than where it's currently classified,

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<v Speaker 1>which is next to heroin and LSD. Now, the Trump

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<v Speaker 1>administration has sought to crack down on drug trafficking and

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<v Speaker 1>taken another a tougher stance on other drugs, one of

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<v Speaker 1>those being fensanyl, which I guess caused the tariff explosion

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<v Speaker 1>with China earlier this year.

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<v Speaker 2>This 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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