WEBVTT - Hermès Plunges, Kering Drops, ASML Fluctuates

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

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in 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 they'll

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

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<v Speaker 3>joined Barbluberg reporter Cloimba La. Good morning, coy. So let's

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<v Speaker 3>start with Ammes not Immune. How investors thinking about the

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<v Speaker 3>latest results.

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<v Speaker 1>Yeah, it's a very tough morning for luxury as a whole.

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<v Speaker 1>So we had MS, which is traditionally quite a resilient

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<v Speaker 1>luxury company that has been really able to withstand some

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<v Speaker 1>other downturns in the industry today reporting results that were

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<v Speaker 1>quite disappointing. And we also had Caring last night with

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<v Speaker 1>the sales at Gucci excuse me, falling by more than

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<v Speaker 1>expected and than the day before. Was alvim Mahor of course,

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<v Speaker 1>with which also did worse than anticipated. So the common

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<v Speaker 1>theme for all three companies is that they are really

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<v Speaker 1>feeling the impact of the conflict in the Middle East

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<v Speaker 1>on those sales. And so that's both because there was

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<v Speaker 1>much weaker demand in the shopping hubs like to buy

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<v Speaker 1>for example, but also because the impact has reverberated across

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<v Speaker 1>other markets and really hurting consumer confidence and travel globally

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<v Speaker 1>as well. And so for example, for MMES, it said

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<v Speaker 1>that stores in France were hit by much lower tourism

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<v Speaker 1>spent buying Middle Eastern shoppers, for example. So for a

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<v Speaker 1>luxury sector as a whole, this is really kind of

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<v Speaker 1>doing hopes of a rebound after some signs of the

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<v Speaker 1>previous earning season that things were actually getting a little

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<v Speaker 1>bit better. So this is definitely a big setback, and

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<v Speaker 1>it seems that it is impacting everyone, included MS, which

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<v Speaker 1>someone expected to be a little bit more resilient to this.

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<v Speaker 3>Yes, Irmes is share price falling the most on RACLE,

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<v Speaker 3>but you're right, it's got to read across because Kerring, Berbery, Reschmart,

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<v Speaker 3>they're all in those worse performing ten stocks, More Claire

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<v Speaker 3>as well today, so it's really quite broad across that

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<v Speaker 3>luxury sector. Now, news of some turnaround signs from Atlantis

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<v Speaker 3>our investors optimistic.

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<v Speaker 1>Yeah, it seems like they are.

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<v Speaker 3>So.

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<v Speaker 1>Silantra's reported to quite a big rise in shipments for

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<v Speaker 1>the first quarter and that was particularly led by North America,

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<v Speaker 1>so that's being taken as a sign that the ongoing

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<v Speaker 1>turnaround is taking shape. So the CEO, Antonio Felosa, took

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<v Speaker 1>over in June, and he's launched quite wide ranging efforts

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<v Speaker 1>to kind of get Stilanta's back on track. He's rolled

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<v Speaker 1>back on electric vehicle plans, he's worked on more hybrid

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<v Speaker 1>models and then as also cut prices to regain some

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<v Speaker 1>market share. And another big part of the strategy was

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<v Speaker 1>also to refocus on the US market, getting Americans back

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<v Speaker 1>in jeeps, for example, and so that seems to be

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<v Speaker 1>working and Stillanta's grew actually in all regions, including in Europe.

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<v Speaker 1>So overall it's a very positive picture, and that's especially

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<v Speaker 1>in the context of the company earlier this year in

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<v Speaker 1>February shocking markets with surprise write downs and charges of

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<v Speaker 1>twenty two billion euros. A lot of that was linked

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<v Speaker 1>to unwinding the ev strategy that was put in place

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<v Speaker 1>by the previous CEO, and that triggered a really massive

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<v Speaker 1>slump in the shares back in February. So Silantis has

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<v Speaker 1>much further to go now to kind of erase those losses.

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<v Speaker 1>But now it seems like maybe the worst is behind it,

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<v Speaker 1>and it's quite encouraging for investors.

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<v Speaker 3>Okay, that's so interesting. So what about ASMOL, obviously the

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<v Speaker 3>biggest company in Europe, very important earnings out today.

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<v Speaker 1>Yeah, so it raised its four year sales guidance, but

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<v Speaker 1>at the same time it also provided a second quarter

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<v Speaker 1>sales forecast that was a little lighter than expected. Overall,

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<v Speaker 1>the outlook does seem definitely quite strong. The CEO said

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<v Speaker 1>that growth in the semiconductor industry was continuing to solidify,

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<v Speaker 1>that customers were accelerating those investments in AI. But shares

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<v Speaker 1>have not reacted the way you'd expect with a guidance raise,

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<v Speaker 1>so they were down slightly at the open, fluctuating within

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<v Speaker 1>quite a narrow range since then, and that is likely

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<v Speaker 1>because that guidance raise was actually expected by investors, and

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<v Speaker 1>the positive outlook is already reflected in a stock price

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<v Speaker 1>that has jumped almost forty percent since the start of

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<v Speaker 1>the year. But overall, though there is clearly some strong

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<v Speaker 1>confidence the AI boost is looking like it's there to stay,

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<v Speaker 1>and the focus is now really shifting to twenty twenty

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<v Speaker 1>seven and whether the SMaL is able to really sustain

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<v Speaker 1>that momentum.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio check back with

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