WEBVTT -  Reckitt Soars, STMicro Falls, BNP Paribas Up

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

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<v Speaker 2>The Stock Movers podcast, 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 take a look at some of the stocks on

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<v Speaker 3>the move today in Europe. I'm Stephen Carroll and I'm

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<v Speaker 3>joined by Bloomberg's EMEA earnings reporter Chloe Melee. Chloe, good

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<v Speaker 3>morning to you a busy earnings day. Let's start with Recus,

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<v Speaker 3>the consumer goods company. How are the Marcus digesting their results?

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<v Speaker 4>Yeah, so Record didn't excuse me, did really well this morning.

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<v Speaker 4>It shares that up by quite a bit. It boosted

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<v Speaker 4>its revenue growth forecast for all of its kind of

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<v Speaker 4>major brands, and it also announced a one billion pound buyback,

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<v Speaker 4>so investors are quite happy about about both of those.

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<v Speaker 1>Both of those news.

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<v Speaker 4>This kind of comes as the as the Record is

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<v Speaker 4>trying to kind of refocus on its core brands. So

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<v Speaker 4>an example might be gaviscon for example, Yourex condoms. Those

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<v Speaker 4>are the kind of core brands that Record is really

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<v Speaker 4>trying to focus on, and then it's trying to move

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<v Speaker 4>away from some of the non core brands. So, for example,

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<v Speaker 4>it agreed to share quite a large part of its

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<v Speaker 4>essential home business just last week to private equity firm

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<v Speaker 4>Advent International. So the essential home business includes brands like

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<v Speaker 4>Airwick the Air fresheners and innsil It Bank cleaners as well,

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<v Speaker 4>so that will no longer be part of RECT going forward.

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<v Speaker 4>It's also you are currently reviewing options for its Mead

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<v Speaker 4>Johnson nutrition unit. That's a unit that has faced lawsuits

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<v Speaker 4>in the US over infant formula. So it's really trying

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<v Speaker 4>to kind of streamline the operations and it seems like

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<v Speaker 4>so far that is paying off and its reflected in

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<v Speaker 4>the shares this morning.

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<v Speaker 1>Yeah.

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<v Speaker 3>Indeed, it's my favorite game to play every time that

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<v Speaker 3>we have recket results is what brands can you name?

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<v Speaker 1>That recort do?

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<v Speaker 3>And I would bring another one that perhaps Clerk can

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<v Speaker 3>offer you afterwards, which it might be a strap cell

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<v Speaker 3>which you might.

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<v Speaker 2>Need as well.

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<v Speaker 3>Yes, I think that some banking earnings next, some strong

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<v Speaker 3>out performance that likes of BMP hiri about Deutsche Bank.

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<v Speaker 3>People also heard from Lloyd's in the UK. What our

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<v Speaker 3>investors telling us about those banks?

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<v Speaker 1>Yeah, pretty good.

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<v Speaker 4>Across the European banking sector this morning, so Dotchebank and

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<v Speaker 4>BNP Barraba both be estimates, and that's on the back

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<v Speaker 4>for both of those banks of really strong fixed income

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<v Speaker 4>trading in particular, So this kind of echoes what we've

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<v Speaker 4>seen from Wall Street banks that reported earlier in the season.

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<v Speaker 4>The market volatility in the second quarter drove this kind

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<v Speaker 4>of really good performance in that.

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<v Speaker 1>Fixed income segment.

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<v Speaker 4>The flip side of that is that for BNP in particular,

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<v Speaker 4>the equities trading was a little bit weak. So fixed

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<v Speaker 4>income trading revenue was up twenty seven percent, equity is

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<v Speaker 4>trading down fifteen percent for BNP, So there's quite a

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<v Speaker 4>big contrast there, and that's kind of worth keeping in

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<v Speaker 4>mind when we get Barclays as well.

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<v Speaker 1>For example, next week.

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<v Speaker 4>Lloyd's was up this morning but then down a little

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<v Speaker 4>bit now its profit b estimates and it also reaffirmed

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<v Speaker 4>its guidance for the year. But we do have the

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<v Speaker 4>UK Supreme Court ruling on the Motor finance the Motor

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<v Speaker 4>Finance probe, you know, on which customers are should be compensated,

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<v Speaker 4>and that's due later this month, so some of that

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<v Speaker 4>uncertainty around what is going to happen there might be

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<v Speaker 4>feeding into that little bit of weakness this morning.

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<v Speaker 3>For Luin's and then turning to technology st Micro, their

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<v Speaker 3>share is plunging almost ten percent at the moment.

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<v Speaker 4>Yes, quite bad morning, first Micro, and I guess for

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<v Speaker 4>the chip making sector in general, there's been quite a

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<v Speaker 4>few bad news there. So firstly micro it posted a

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<v Speaker 4>surprise loss of one hundred and thirty million dollars compared

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<v Speaker 4>to expectations of a fifty million dollar profit, so obviously

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<v Speaker 4>quite a big surprise there, and that is all due.

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<v Speaker 1>To restructuring expenses.

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<v Speaker 4>Anless noted as well that the gross margin was really

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<v Speaker 4>below expectations, so that was not great either. But crucially,

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<v Speaker 4>you know, in what's worth keeping in mind for this

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<v Speaker 4>sector in general is that it really flagged weakness in

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<v Speaker 4>the automotive industry, which is kind of its key end markets,

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<v Speaker 4>and that's really weighing on the chip makers, including st Micro,

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<v Speaker 4>that are exposed to that to that sector. You know, Tesla,

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<v Speaker 4>for example, is a really key customer for st Micro

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<v Speaker 4>and it just warned of a really a rough few

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<v Speaker 4>quarters ahead.

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<v Speaker 1>So the outlook is darkening a little bit by this meekness.

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<v Speaker 4>And you know, we also have to see what the

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<v Speaker 4>other chip makers are saying about this, but so far

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<v Speaker 4>not So Good.

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<v Speaker 2>The Stock Movers podcast from Bloomberg Radio. Check back with

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