Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's think at some of the stocks on the
Speaker 3: move today here in Europe. I'm Caroline Hepcat and I'm
Speaker 3: joined by Bloomberg Report at clok Malay.
Speaker 1: Good morning, go.
Speaker 3: So can we start with LVMAH, which you've been watching
Speaker 3: as we've been writing about how Europe's giants are taking
Speaker 3: a hit. Why.
Speaker 4: Yeah, So LVMHOR is a little weaker today, and it
Speaker 4: has been weak now for a little while, and it's
Speaker 4: had quite a tough start to the year. And as
Speaker 4: you said, this is part of this broader trend of
Speaker 4: European giants taking kind of quite the beating. So we
Speaker 4: have LVMH, SAP, and Nova Noordsk of course, three major
Speaker 4: companies and three companies that were market darlings at some point.
Speaker 4: They have fallen about thirty percent so far this year,
Speaker 4: and so they've accounted for over half of the four
Speaker 4: hundred and twenty billion euros that's been wiped off European
Speaker 4: stocks this quarter. So we're very much talking about a
Speaker 4: sort of fall from grace for these companies, and they've
Speaker 4: been facing a bunch of challenges that are both kind
Speaker 4: of industry wide.
Speaker 1: And company specific.
Speaker 4: So for LVMH, there's kind of this luxury downturn continuing.
Speaker 4: For Asap, we've got the continued concern of the impact
Speaker 4: of AI on software companies, and in for and overdoor
Speaker 4: disc there's the competition from Eli Lilly and then also
Speaker 4: some trial setbacks as well that have been really hurting
Speaker 4: the share price. And of those three, VMH has been
Speaker 4: the biggest loser. It's lost ninety billion euros in market capitalization.
Speaker 4: And so this is a really interesting kind of trend
Speaker 4: where we're seeing those major companies taking quite the hit.
Speaker 4: And we're now, of course waiting for first quarter reports
Speaker 4: that come in that start coming through in the next
Speaker 4: couple of weeks, and that will hopefully shad a little
Speaker 4: bit more light on what's happening, you know, in the
Speaker 4: future for those companies.
Speaker 3: Yeah, absolutely, the luxury sector in you so important. Let's
Speaker 3: have a look at the media company Future seeing a
Speaker 3: really big decline.
Speaker 1: Why yeah, so Future is an internet publisher.
Speaker 4: It owns websites like Mary Claire, like tech Radar, et cetera.
Speaker 4: And so it's a media company, and that is a
Speaker 4: company that relies on website traffic, and so for a
Speaker 4: while it was able to rely on SEO so that
Speaker 4: its links, you know, appeared first on Google Search, people
Speaker 4: clicked on them, they got to have some ads, and
Speaker 4: then Future made money in that way. The problem now,
Speaker 4: of course, is that we've got Ai overviews, which means
Speaker 4: that people just don't just read that and they don't
Speaker 4: necessarily click any further, and that's really starting to feed
Speaker 4: through into earnings for Future. So it's said this morning
Speaker 4: that while they expected some shifts in the audience that
Speaker 4: is derived from Google Search, these changes have been more
Speaker 4: pronounced than they anticipated, and so that has meant a
Speaker 4: negative impact on advertising and e commerce revenue, and that
Speaker 4: has led the company cut its outlook for margin, and
Speaker 4: that is really pointing to some worrying trends for the business,
Speaker 4: and we've seen the shares really slump this morning as
Speaker 4: a result.
Speaker 3: Lastly, the Italian group Monday's is planning to boost a
Speaker 3: steak in the Channel tunnel operator. How market's responding to.
Speaker 1: That pretty well.
Speaker 4: So Getlink is the operator of the Channel tunnel and
Speaker 4: it's getting as you said, some investment from Mundy's. So
Speaker 4: Mindy's the Italian operator of airports motorways, and it plans
Speaker 4: to raise a steak in get Link to as high
Speaker 4: as twenty five percent, and so that would mean a
Speaker 4: steak worth about nine hundred million euros. And so boosting
Speaker 4: that steak for Mondy's would be sort of helping its
Speaker 4: push into the French infrastructure market, which is part of
Speaker 4: the broader strategy for the company of expanding its focus
Speaker 4: on European transport assets.
Speaker 1: In particular. Mundy's did say that this was not a.
Speaker 4: First step towards a takeover approach, and the news really
Speaker 4: boosted shares in Gettling this morning the news of that investment,
Speaker 4: and it's extended what's already been a really strong start
Speaker 4: to the year for this infrastructure company. We're up almost
Speaker 4: eighteen percent so far this year, and it seems like
Speaker 4: that will be continuing.
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