1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:17,160 Speaker 2: the stock market. Harnessing the power of Bloomberg Data. Let's 4 00:00:17,200 --> 00:00:18,919 Speaker 2: take a look at some stocks on the move today 5 00:00:18,960 --> 00:00:21,400 Speaker 2: in Europe. I'm Stephen Carroll and I'm joined by Bloomberg's 6 00:00:21,400 --> 00:00:23,640 Speaker 2: Breaking News out of the Luise Moon for more, Louise, 7 00:00:23,680 --> 00:00:27,280 Speaker 2: good morning. Let's start then with the British drinks company 8 00:00:27,360 --> 00:00:32,000 Speaker 2: Diagio lowering its fullier outlook for sales and profit. It's 9 00:00:32,000 --> 00:00:33,640 Speaker 2: not too early to talk about drinks at this hour. 10 00:00:33,720 --> 00:00:34,640 Speaker 2: Tell us what's gone wrong. 11 00:00:35,000 --> 00:00:38,320 Speaker 1: Never too early to talk about Guinness. Stephen, Yeah, so 12 00:00:38,400 --> 00:00:40,680 Speaker 1: DJA cut. It's for your outlook, so expecting for your 13 00:00:40,680 --> 00:00:44,680 Speaker 1: sales to be flat essentially or slightly down. And their 14 00:00:44,680 --> 00:00:46,839 Speaker 1: first court this came alongside their first quarter results and 15 00:00:46,880 --> 00:00:51,320 Speaker 1: sales also came in flat for the first quarter. Essentially, 16 00:00:51,400 --> 00:00:54,360 Speaker 1: it was a really interesting one. So part of it 17 00:00:54,440 --> 00:00:57,480 Speaker 1: is as saying they've noted subdued demand in the US. 18 00:00:57,520 --> 00:01:00,120 Speaker 1: This obviously there's kind of been an ongoing shift in 19 00:01:00,280 --> 00:01:04,240 Speaker 1: drinking habits and also in spending, So that was one 20 00:01:04,280 --> 00:01:07,199 Speaker 1: part of it, that there's that subdue demand in the US, 21 00:01:07,560 --> 00:01:11,080 Speaker 1: and then they've also seen quite a hit from impact 22 00:01:11,160 --> 00:01:13,800 Speaker 1: of a government policy in China. So this was introduced 23 00:01:13,800 --> 00:01:17,800 Speaker 1: in March or around March, and essentially the government are trying, 24 00:01:17,959 --> 00:01:21,240 Speaker 1: or that they're pushing to stop what they call or 25 00:01:21,400 --> 00:01:25,000 Speaker 1: to cut wasteful spending. So there's been less consumption of 26 00:01:25,040 --> 00:01:28,959 Speaker 1: a lot of alcohol at official events and more widely 27 00:01:29,040 --> 00:01:31,720 Speaker 1: kind of across the country, so less consumption of by jo, 28 00:01:31,720 --> 00:01:34,880 Speaker 1: which is a white spirit in China, and Diago have 29 00:01:34,959 --> 00:01:37,440 Speaker 1: kind of been building up their presence in that space 30 00:01:37,480 --> 00:01:39,080 Speaker 1: over the past few years, so they've seen quite a 31 00:01:39,080 --> 00:01:40,800 Speaker 1: big hit from that, and they noticed that quite a 32 00:01:40,800 --> 00:01:43,959 Speaker 1: few times in their release this morning. And then on 33 00:01:44,000 --> 00:01:45,360 Speaker 1: top of that, there was also kind of a lack 34 00:01:45,400 --> 00:01:47,640 Speaker 1: of news on their search for the new CEO, so 35 00:01:48,120 --> 00:01:51,040 Speaker 1: shares being pulled down this morning. They're one of the 36 00:01:52,040 --> 00:01:54,360 Speaker 1: main fallers on the Footie hundred in London, and there's 37 00:01:54,360 --> 00:01:56,760 Speaker 1: a quote from their interim CEO saying we're not satisfied 38 00:01:56,800 --> 00:01:58,800 Speaker 1: with our current performance and we're focused on what we 39 00:01:58,880 --> 00:02:03,040 Speaker 1: can manage and control. So not a great update from 40 00:02:03,120 --> 00:02:04,040 Speaker 1: DHA this morning. 41 00:02:04,160 --> 00:02:06,320 Speaker 3: Yeah, show's down two point eight percent at the moment 42 00:02:06,360 --> 00:02:09,400 Speaker 3: in London, let's go to Paris next. Air France KLM 43 00:02:09,440 --> 00:02:12,760 Speaker 3: share is down thirteen and a half percent after their results. 44 00:02:12,760 --> 00:02:16,280 Speaker 1: What happened, Yeah, earnings miss expectations kind of across the board, 45 00:02:16,320 --> 00:02:20,440 Speaker 1: so operating income revenue they both came in lower than expected. 46 00:02:20,840 --> 00:02:23,160 Speaker 1: One of the main things that they're flagging is strikes. 47 00:02:23,360 --> 00:02:26,280 Speaker 1: So there was a two day strike in France for 48 00:02:26,360 --> 00:02:29,799 Speaker 1: air traffic control that hit them, and they also there 49 00:02:29,840 --> 00:02:32,519 Speaker 1: was a ground personnel strikes in September in the Netherlands, 50 00:02:32,560 --> 00:02:35,679 Speaker 1: so obviously they're two key countries. They say that cost 51 00:02:35,760 --> 00:02:39,919 Speaker 1: about fifty million euros in the quarter, so that's really 52 00:02:40,320 --> 00:02:44,360 Speaker 1: kind of the main drag that they're seeing as well, 53 00:02:44,520 --> 00:02:47,200 Speaker 1: so as you say, shares are falling on the back 54 00:02:47,240 --> 00:02:49,760 Speaker 1: of that. And then they also noted that kind of 55 00:02:49,800 --> 00:02:52,919 Speaker 1: warmer than usual summer in countries like Germany, the UK 56 00:02:53,000 --> 00:02:55,720 Speaker 1: and the Netherlands also reduced demand for trips to southern Europe. 57 00:02:55,800 --> 00:02:59,480 Speaker 1: That was also weighed on them slightly. At their performance 58 00:02:59,520 --> 00:03:03,800 Speaker 1: that they've had this morning contrasts quite heavily with Lufthansa. 59 00:03:04,040 --> 00:03:06,400 Speaker 1: They had quite an artbeat outlook at the end of 60 00:03:06,480 --> 00:03:09,600 Speaker 1: last month, and then we've got IAG British britsh areas 61 00:03:09,639 --> 00:03:12,760 Speaker 1: parent tomorrow, so we'll have to see how they fare, 62 00:03:12,840 --> 00:03:15,560 Speaker 1: but not a very strong update, mostly on the back 63 00:03:15,600 --> 00:03:17,880 Speaker 1: of strikes fair France kalem okay. 64 00:03:18,080 --> 00:03:21,200 Speaker 3: And then we're going to Denmark. Now the shipping giant 65 00:03:21,760 --> 00:03:24,800 Speaker 3: Apmuller mask there shows down five and a half percent. 66 00:03:25,080 --> 00:03:26,880 Speaker 3: What's moving markets clew indeed. 67 00:03:26,960 --> 00:03:29,079 Speaker 1: Yeah, well, so they raised their four year profit guidance 68 00:03:29,120 --> 00:03:30,880 Speaker 1: this morning, which obviously on the face of it seems 69 00:03:30,919 --> 00:03:34,760 Speaker 1: quite positive, but investors are essentially disappointed. They wanted more improvements, 70 00:03:34,760 --> 00:03:38,160 Speaker 1: They wanted them to raise it by a higher margin. 71 00:03:38,440 --> 00:03:41,480 Speaker 1: Alyss is saying that their third quarter was in a quote, 72 00:03:41,520 --> 00:03:43,600 Speaker 1: a bit of a bubble, so it was a good report, 73 00:03:43,680 --> 00:03:47,840 Speaker 1: but everything kind of points to difficulty ahead, which is 74 00:03:48,120 --> 00:03:50,600 Speaker 1: which could give reason that they didn't raise their year 75 00:03:50,600 --> 00:03:54,520 Speaker 1: profit guidance further. So this is so Mascu's seen as 76 00:03:54,560 --> 00:03:57,560 Speaker 1: kind of a bell weather for global trade and global 77 00:03:57,600 --> 00:03:59,400 Speaker 1: traders facing a lot of headwinds at the moment. So 78 00:03:59,600 --> 00:04:02,480 Speaker 1: there's a lot of lower freight rates, disruption in the 79 00:04:02,480 --> 00:04:06,000 Speaker 1: Red Sea which is expected to remain US China trade 80 00:04:06,040 --> 00:04:08,560 Speaker 1: is slowing, so all of these are weighing on the 81 00:04:08,560 --> 00:04:11,840 Speaker 1: wide industry and weighing on the shipping giant, so Alys 82 00:04:11,840 --> 00:04:13,840 Speaker 1: is saying there's kind of less hope for buybacks and 83 00:04:15,560 --> 00:04:18,120 Speaker 1: difficulties ahead for the company. 84 00:04:18,760 --> 00:04:22,800 Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with 85 00:04:22,880 --> 00:04:25,440 Speaker 2: us throughout the day for the latest roundup of companies 86 00:04:25,520 --> 00:04:28,640 Speaker 2: making news on Wall Street and for the latest market 87 00:04:28,640 --> 00:04:33,120 Speaker 2: moving headlines. 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