1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,640 --> 00:00:13,040 Speaker 2: The Stock Movers podcast, your roundup of companies making moves 3 00:00:13,080 --> 00:00:16,480 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,840 --> 00:00:19,239 Speaker 3: Let's take a look at some of the stocks on 5 00:00:19,280 --> 00:00:21,520 Speaker 3: the move today in Europe. I'm Stephen Carroll and I'm 6 00:00:21,600 --> 00:00:24,840 Speaker 3: joined by Bloomberg's EMEA earnings reporter Chloe Melee. Chloe, good 7 00:00:24,840 --> 00:00:27,440 Speaker 3: morning to you a busy earnings day. Let's start with Recus, 8 00:00:27,520 --> 00:00:30,720 Speaker 3: the consumer goods company. How are the Marcus digesting their results? 9 00:00:31,040 --> 00:00:34,280 Speaker 4: Yeah, so Record didn't excuse me, did really well this morning. 10 00:00:34,640 --> 00:00:37,159 Speaker 4: It shares that up by quite a bit. It boosted 11 00:00:37,200 --> 00:00:39,720 Speaker 4: its revenue growth forecast for all of its kind of 12 00:00:39,760 --> 00:00:43,400 Speaker 4: major brands, and it also announced a one billion pound buyback, 13 00:00:43,440 --> 00:00:46,000 Speaker 4: so investors are quite happy about about both of those. 14 00:00:46,440 --> 00:00:47,240 Speaker 1: Both of those news. 15 00:00:47,760 --> 00:00:50,559 Speaker 4: This kind of comes as the as the Record is 16 00:00:50,600 --> 00:00:54,000 Speaker 4: trying to kind of refocus on its core brands. So 17 00:00:54,600 --> 00:00:57,720 Speaker 4: an example might be gaviscon for example, Yourex condoms. Those 18 00:00:57,720 --> 00:00:59,760 Speaker 4: are the kind of core brands that Record is really 19 00:00:59,800 --> 00:01:02,680 Speaker 4: trying to focus on, and then it's trying to move 20 00:01:02,720 --> 00:01:06,080 Speaker 4: away from some of the non core brands. So, for example, 21 00:01:06,120 --> 00:01:08,640 Speaker 4: it agreed to share quite a large part of its 22 00:01:08,720 --> 00:01:11,880 Speaker 4: essential home business just last week to private equity firm 23 00:01:11,920 --> 00:01:17,360 Speaker 4: Advent International. So the essential home business includes brands like 24 00:01:17,400 --> 00:01:20,680 Speaker 4: Airwick the Air fresheners and innsil It Bank cleaners as well, 25 00:01:20,680 --> 00:01:23,759 Speaker 4: so that will no longer be part of RECT going forward. 26 00:01:24,200 --> 00:01:26,800 Speaker 4: It's also you are currently reviewing options for its Mead 27 00:01:26,880 --> 00:01:31,080 Speaker 4: Johnson nutrition unit. That's a unit that has faced lawsuits 28 00:01:31,120 --> 00:01:33,720 Speaker 4: in the US over infant formula. So it's really trying 29 00:01:33,720 --> 00:01:35,959 Speaker 4: to kind of streamline the operations and it seems like 30 00:01:36,200 --> 00:01:38,160 Speaker 4: so far that is paying off and its reflected in 31 00:01:38,200 --> 00:01:39,160 Speaker 4: the shares this morning. 32 00:01:39,480 --> 00:01:39,680 Speaker 1: Yeah. 33 00:01:39,680 --> 00:01:41,320 Speaker 3: Indeed, it's my favorite game to play every time that 34 00:01:41,360 --> 00:01:43,440 Speaker 3: we have recket results is what brands can you name? 35 00:01:43,440 --> 00:01:44,000 Speaker 1: That recort do? 36 00:01:44,080 --> 00:01:46,480 Speaker 3: And I would bring another one that perhaps Clerk can 37 00:01:46,520 --> 00:01:48,080 Speaker 3: offer you afterwards, which it might be a strap cell 38 00:01:48,560 --> 00:01:49,240 Speaker 3: which you might. 39 00:01:49,080 --> 00:01:49,560 Speaker 2: Need as well. 40 00:01:49,640 --> 00:01:54,000 Speaker 3: Yes, I think that some banking earnings next, some strong 41 00:01:54,000 --> 00:01:56,320 Speaker 3: out performance that likes of BMP hiri about Deutsche Bank. 42 00:01:56,320 --> 00:01:58,680 Speaker 3: People also heard from Lloyd's in the UK. What our 43 00:01:58,760 --> 00:02:00,720 Speaker 3: investors telling us about those banks? 44 00:02:01,120 --> 00:02:01,880 Speaker 1: Yeah, pretty good. 45 00:02:01,880 --> 00:02:05,000 Speaker 4: Across the European banking sector this morning, so Dotchebank and 46 00:02:05,080 --> 00:02:08,080 Speaker 4: BNP Barraba both be estimates, and that's on the back 47 00:02:08,280 --> 00:02:11,320 Speaker 4: for both of those banks of really strong fixed income 48 00:02:11,440 --> 00:02:14,480 Speaker 4: trading in particular, So this kind of echoes what we've 49 00:02:14,520 --> 00:02:17,680 Speaker 4: seen from Wall Street banks that reported earlier in the season. 50 00:02:18,200 --> 00:02:21,320 Speaker 4: The market volatility in the second quarter drove this kind 51 00:02:21,320 --> 00:02:22,880 Speaker 4: of really good performance in that. 52 00:02:22,840 --> 00:02:24,400 Speaker 1: Fixed income segment. 53 00:02:24,919 --> 00:02:27,160 Speaker 4: The flip side of that is that for BNP in particular, 54 00:02:27,240 --> 00:02:30,960 Speaker 4: the equities trading was a little bit weak. So fixed 55 00:02:31,000 --> 00:02:33,959 Speaker 4: income trading revenue was up twenty seven percent, equity is 56 00:02:33,960 --> 00:02:36,160 Speaker 4: trading down fifteen percent for BNP, So there's quite a 57 00:02:36,160 --> 00:02:38,480 Speaker 4: big contrast there, and that's kind of worth keeping in 58 00:02:38,520 --> 00:02:40,280 Speaker 4: mind when we get Barclays as well. 59 00:02:40,320 --> 00:02:41,839 Speaker 1: For example, next week. 60 00:02:42,200 --> 00:02:45,000 Speaker 4: Lloyd's was up this morning but then down a little 61 00:02:45,000 --> 00:02:49,639 Speaker 4: bit now its profit b estimates and it also reaffirmed 62 00:02:49,800 --> 00:02:53,000 Speaker 4: its guidance for the year. But we do have the 63 00:02:53,480 --> 00:02:57,200 Speaker 4: UK Supreme Court ruling on the Motor finance the Motor 64 00:02:57,280 --> 00:03:01,160 Speaker 4: Finance probe, you know, on which customers are should be compensated, 65 00:03:01,600 --> 00:03:03,480 Speaker 4: and that's due later this month, so some of that 66 00:03:03,560 --> 00:03:06,200 Speaker 4: uncertainty around what is going to happen there might be 67 00:03:06,280 --> 00:03:09,120 Speaker 4: feeding into that little bit of weakness this morning. 68 00:03:09,160 --> 00:03:13,240 Speaker 3: For Luin's and then turning to technology st Micro, their 69 00:03:13,280 --> 00:03:16,200 Speaker 3: share is plunging almost ten percent at the moment. 70 00:03:16,800 --> 00:03:20,080 Speaker 4: Yes, quite bad morning, first Micro, and I guess for 71 00:03:20,120 --> 00:03:22,160 Speaker 4: the chip making sector in general, there's been quite a 72 00:03:22,160 --> 00:03:26,080 Speaker 4: few bad news there. So firstly micro it posted a 73 00:03:26,200 --> 00:03:29,880 Speaker 4: surprise loss of one hundred and thirty million dollars compared 74 00:03:29,919 --> 00:03:34,120 Speaker 4: to expectations of a fifty million dollar profit, so obviously 75 00:03:34,200 --> 00:03:36,760 Speaker 4: quite a big surprise there, and that is all due. 76 00:03:36,640 --> 00:03:38,600 Speaker 1: To restructuring expenses. 77 00:03:39,000 --> 00:03:41,560 Speaker 4: Anless noted as well that the gross margin was really 78 00:03:41,680 --> 00:03:45,720 Speaker 4: below expectations, so that was not great either. But crucially, 79 00:03:45,880 --> 00:03:47,480 Speaker 4: you know, in what's worth keeping in mind for this 80 00:03:47,520 --> 00:03:50,200 Speaker 4: sector in general is that it really flagged weakness in 81 00:03:50,240 --> 00:03:54,000 Speaker 4: the automotive industry, which is kind of its key end markets, 82 00:03:54,640 --> 00:03:57,840 Speaker 4: and that's really weighing on the chip makers, including st Micro, 83 00:03:58,040 --> 00:04:01,440 Speaker 4: that are exposed to that to that sector. You know, Tesla, 84 00:04:01,480 --> 00:04:04,000 Speaker 4: for example, is a really key customer for st Micro 85 00:04:04,360 --> 00:04:07,400 Speaker 4: and it just warned of a really a rough few 86 00:04:07,480 --> 00:04:08,720 Speaker 4: quarters ahead. 87 00:04:09,200 --> 00:04:13,600 Speaker 1: So the outlook is darkening a little bit by this meekness. 88 00:04:13,680 --> 00:04:15,960 Speaker 4: And you know, we also have to see what the 89 00:04:16,040 --> 00:04:18,680 Speaker 4: other chip makers are saying about this, but so far 90 00:04:18,920 --> 00:04:20,000 Speaker 4: not So Good. 91 00:04:20,760 --> 00:04:24,880 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 92 00:04:24,960 --> 00:04:27,720 Speaker 2: us throughout the day for the latest roundup of companies 93 00:04:27,760 --> 00:04:30,840 Speaker 2: making news on Wall Street and for the latest market 94 00:04:30,839 --> 00:04:35,240 Speaker 2: moving headlines. 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