WEBVTT - Renault plunges, ASML falls, Richemont gains

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

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<v Speaker 2>Stock Movers podcast, 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 have a look at some of the stocks on

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<v Speaker 3>the move today here in Europe. I'm Caroline Hepga and

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<v Speaker 3>I'm joined Barb Bloomberg's equity supporter Cloone. Are they good morning, Clare?

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<v Speaker 3>Should we start off with Reno then not good this

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<v Speaker 3>morning in terms of the reaction to what they said

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<v Speaker 3>last night.

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<v Speaker 4>Yeah, absolutely not a great morning from another this morning.

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<v Speaker 4>So last night it cut its margin outlook and as

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<v Speaker 4>as well as its free cash flow outlook. It said

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<v Speaker 4>that that was due to general trade tensions, a tough

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<v Speaker 4>car market in general as well in Europe, but also

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<v Speaker 4>a competition from Chinese manufacturers. If that wasn't enough a

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<v Speaker 4>big news, it also announced a new interim CEO to

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<v Speaker 4>replace Luca Demo who left for Caring. So Duncan Minto

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<v Speaker 4>is the new man in charge. He's the finance chief

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<v Speaker 4>and has been at the company since nineteen ninety seven,

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<v Speaker 4>so he might know the company well enough to kind

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<v Speaker 4>of guide it out of that tough spot. But crucially

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<v Speaker 4>the such for a permanent CEO is still underwear, so

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<v Speaker 4>there's more uncertainty there. And as a result of both

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<v Speaker 4>sets of news, the stock saw the biggest drop since

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<v Speaker 4>the start of.

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<v Speaker 1>The pandemic this morning.

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<v Speaker 4>Just to kind of give a scale to this, it

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<v Speaker 4>was down sixteen percent and as a result, that also

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<v Speaker 4>dragged down the shares of other car makers that are

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<v Speaker 4>vulnerable to the same to the same uncertainties in the market.

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<v Speaker 4>So Stellantis and Volksbagen were also down this morning as

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<v Speaker 4>a result, and that signals may be more pain for

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<v Speaker 4>the car sector going forward. Yeah.

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<v Speaker 3>Absolutely, it's the tariff risks, but it's also the FX

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<v Speaker 3>risks as well. So that from Reno ASML's CEO talking

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<v Speaker 3>about the future growth of the business really badly received

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<v Speaker 3>by the markets and the CFO make comments this morning.

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<v Speaker 1>Yes, absolutely so.

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<v Speaker 4>The CEO christ walked back to the growth forecast for

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<v Speaker 4>next year essentially it's cited. He cited tread tensions in particular,

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<v Speaker 4>and he said that while the company still prepares for

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<v Speaker 4>growth in twenty twenty six, it can't confirm it, and

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<v Speaker 4>the investors reacted quite badly to that. That pushed the

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<v Speaker 4>stock down about eight percent. This morning, and given how

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<v Speaker 4>important ASML is for the industry, it also took.

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<v Speaker 1>Down the rest of the sector.

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<v Speaker 4>We saw a lot of weakness across the board for

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<v Speaker 4>companies like Infinian B Semiconductor, n SC Micro. So this

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<v Speaker 4>is obviously also not helped by the fact that tariffs

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<v Speaker 4>on semi conductors could come soon.

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<v Speaker 1>Trump said that.

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<v Speaker 4>Complicates the picture even further for that industry.

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<v Speaker 3>Okay, we should end on a lighter note, should we should?

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<v Speaker 3>The bling Katti Rishmore Visual said doing quite well because

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<v Speaker 3>of Cartier sales.

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<v Speaker 4>Explained, yes, so Shmore had had quite a good more

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<v Speaker 4>this morning. It was up about two or three percent,

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<v Speaker 4>slightly more positive news there.

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<v Speaker 1>So the sales were better than expected.

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<v Speaker 4>That's off the back of, as you said, strong demand

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<v Speaker 4>for Katti and Vancleief jewelry as well. This is not

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<v Speaker 4>completely out of the ordinary for Ishmore. It has been

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<v Speaker 4>outperforming its luxury piers over the past few months, and

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<v Speaker 4>it seems like there's a continuation of the outperformance at

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<v Speaker 4>the moment. We'll see how the other kind of industry,

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<v Speaker 4>Bell Weather's Alvi Mation Caring, which are reporting a little

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<v Speaker 4>bit later in the season, how they are firing in

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<v Speaker 4>an environment that is.

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<v Speaker 1>Quite tough for luxury as a whole.

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<v Speaker 4>There's been a slow down in demand, especially in China,

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<v Speaker 4>where shoppers are really pulling back on very expensive purchases.

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<v Speaker 4>But what we've seen in what I think is exemplified

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<v Speaker 4>by Eishmon this morning, is that high end luxury tends

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<v Speaker 4>to hold up a little bit better. So quite good

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<v Speaker 4>news from that company. At least one company this morning.

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