WEBVTT - LVMH Falls, Future Slumps, Getlink Rises

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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>Now, let's think at some of the stocks on the

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

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<v Speaker 3>joined by Bloomberg Report at clok Malay.

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<v Speaker 1>Good morning, go.

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<v Speaker 3>So can we start with LVMAH, which you've been watching

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<v Speaker 3>as we've been writing about how Europe's giants are taking

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<v Speaker 3>a hit. Why.

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<v Speaker 4>Yeah, So LVMHOR is a little weaker today, and it

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<v Speaker 4>has been weak now for a little while, and it's

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<v Speaker 4>had quite a tough start to the year. And as

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<v Speaker 4>you said, this is part of this broader trend of

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<v Speaker 4>European giants taking kind of quite the beating. So we

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<v Speaker 4>have LVMH, SAP, and Nova Noordsk of course, three major

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<v Speaker 4>companies and three companies that were market darlings at some point.

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<v Speaker 4>They have fallen about thirty percent so far this year,

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<v Speaker 4>and so they've accounted for over half of the four

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<v Speaker 4>hundred and twenty billion euros that's been wiped off European

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<v Speaker 4>stocks this quarter. So we're very much talking about a

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<v Speaker 4>sort of fall from grace for these companies, and they've

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<v Speaker 4>been facing a bunch of challenges that are both kind

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<v Speaker 4>of industry wide.

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<v Speaker 1>And company specific.

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<v Speaker 4>So for LVMH, there's kind of this luxury downturn continuing.

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<v Speaker 4>For Asap, we've got the continued concern of the impact

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<v Speaker 4>of AI on software companies, and in for and overdoor

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<v Speaker 4>disc there's the competition from Eli Lilly and then also

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<v Speaker 4>some trial setbacks as well that have been really hurting

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<v Speaker 4>the share price. And of those three, VMH has been

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<v Speaker 4>the biggest loser. It's lost ninety billion euros in market capitalization.

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<v Speaker 4>And so this is a really interesting kind of trend

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<v Speaker 4>where we're seeing those major companies taking quite the hit.

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<v Speaker 4>And we're now, of course waiting for first quarter reports

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<v Speaker 4>that come in that start coming through in the next

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<v Speaker 4>couple of weeks, and that will hopefully shad a little

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<v Speaker 4>bit more light on what's happening, you know, in the

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<v Speaker 4>future for those companies.

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<v Speaker 3>Yeah, absolutely, the luxury sector in you so important. Let's

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<v Speaker 3>have a look at the media company Future seeing a

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<v Speaker 3>really big decline.

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<v Speaker 1>Why yeah, so Future is an internet publisher.

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<v Speaker 4>It owns websites like Mary Claire, like tech Radar, et cetera.

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<v Speaker 4>And so it's a media company, and that is a

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<v Speaker 4>company that relies on website traffic, and so for a

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<v Speaker 4>while it was able to rely on SEO so that

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<v Speaker 4>its links, you know, appeared first on Google Search, people

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<v Speaker 4>clicked on them, they got to have some ads, and

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<v Speaker 4>then Future made money in that way. The problem now,

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<v Speaker 4>of course, is that we've got Ai overviews, which means

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<v Speaker 4>that people just don't just read that and they don't

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<v Speaker 4>necessarily click any further, and that's really starting to feed

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<v Speaker 4>through into earnings for Future. So it's said this morning

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<v Speaker 4>that while they expected some shifts in the audience that

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<v Speaker 4>is derived from Google Search, these changes have been more

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<v Speaker 4>pronounced than they anticipated, and so that has meant a

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<v Speaker 4>negative impact on advertising and e commerce revenue, and that

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<v Speaker 4>has led the company cut its outlook for margin, and

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<v Speaker 4>that is really pointing to some worrying trends for the business,

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<v Speaker 4>and we've seen the shares really slump this morning as

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<v Speaker 4>a result.

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<v Speaker 3>Lastly, the Italian group Monday's is planning to boost a

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<v Speaker 3>steak in the Channel tunnel operator. How market's responding to.

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<v Speaker 1>That pretty well.

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<v Speaker 4>So Getlink is the operator of the Channel tunnel and

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<v Speaker 4>it's getting as you said, some investment from Mundy's. So

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<v Speaker 4>Mindy's the Italian operator of airports motorways, and it plans

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<v Speaker 4>to raise a steak in get Link to as high

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<v Speaker 4>as twenty five percent, and so that would mean a

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<v Speaker 4>steak worth about nine hundred million euros. And so boosting

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<v Speaker 4>that steak for Mondy's would be sort of helping its

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<v Speaker 4>push into the French infrastructure market, which is part of

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<v Speaker 4>the broader strategy for the company of expanding its focus

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<v Speaker 4>on European transport assets.

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<v Speaker 1>In particular. Mundy's did say that this was not a.

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<v Speaker 4>First step towards a takeover approach, and the news really

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<v Speaker 4>boosted shares in Gettling this morning the news of that investment,

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<v Speaker 4>and it's extended what's already been a really strong start

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<v Speaker 4>to the year for this infrastructure company. We're up almost

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<v Speaker 4>eighteen percent so far this year, and it seems like

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<v Speaker 4>that will be continuing.

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