Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers podcast, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today in Europe. I'm Stephen Carroll and I'm
Speaker 3: joined by Bloomberg's EMEA earnings reporter Chloe Melee. Chloe, good
Speaker 3: morning to you a busy earnings day. Let's start with Recus,
Speaker 3: the consumer goods company. How are the Marcus digesting their results?
Speaker 4: Yeah, so Record didn't excuse me, did really well this morning.
Speaker 4: It shares that up by quite a bit. It boosted
Speaker 4: its revenue growth forecast for all of its kind of
Speaker 4: major brands, and it also announced a one billion pound buyback,
Speaker 4: so investors are quite happy about about both of those.
Speaker 1: Both of those news.
Speaker 4: This kind of comes as the as the Record is
Speaker 4: trying to kind of refocus on its core brands. So
Speaker 4: an example might be gaviscon for example, Yourex condoms. Those
Speaker 4: are the kind of core brands that Record is really
Speaker 4: trying to focus on, and then it's trying to move
Speaker 4: away from some of the non core brands. So, for example,
Speaker 4: it agreed to share quite a large part of its
Speaker 4: essential home business just last week to private equity firm
Speaker 4: Advent International. So the essential home business includes brands like
Speaker 4: Airwick the Air fresheners and innsil It Bank cleaners as well,
Speaker 4: so that will no longer be part of RECT going forward.
Speaker 4: It's also you are currently reviewing options for its Mead
Speaker 4: Johnson nutrition unit. That's a unit that has faced lawsuits
Speaker 4: in the US over infant formula. So it's really trying
Speaker 4: to kind of streamline the operations and it seems like
Speaker 4: so far that is paying off and its reflected in
Speaker 4: the shares this morning.
Speaker 1: Yeah.
Speaker 3: Indeed, it's my favorite game to play every time that
Speaker 3: we have recket results is what brands can you name?
Speaker 1: That recort do?
Speaker 3: And I would bring another one that perhaps Clerk can
Speaker 3: offer you afterwards, which it might be a strap cell
Speaker 3: which you might.
Speaker 2: Need as well.
Speaker 3: Yes, I think that some banking earnings next, some strong
Speaker 3: out performance that likes of BMP hiri about Deutsche Bank.
Speaker 3: People also heard from Lloyd's in the UK. What our
Speaker 3: investors telling us about those banks?
Speaker 1: Yeah, pretty good.
Speaker 4: Across the European banking sector this morning, so Dotchebank and
Speaker 4: BNP Barraba both be estimates, and that's on the back
Speaker 4: for both of those banks of really strong fixed income
Speaker 4: trading in particular, So this kind of echoes what we've
Speaker 4: seen from Wall Street banks that reported earlier in the season.
Speaker 4: The market volatility in the second quarter drove this kind
Speaker 4: of really good performance in that.
Speaker 1: Fixed income segment.
Speaker 4: The flip side of that is that for BNP in particular,
Speaker 4: the equities trading was a little bit weak. So fixed
Speaker 4: income trading revenue was up twenty seven percent, equity is
Speaker 4: trading down fifteen percent for BNP, So there's quite a
Speaker 4: big contrast there, and that's kind of worth keeping in
Speaker 4: mind when we get Barclays as well.
Speaker 1: For example, next week.
Speaker 4: Lloyd's was up this morning but then down a little
Speaker 4: bit now its profit b estimates and it also reaffirmed
Speaker 4: its guidance for the year. But we do have the
Speaker 4: UK Supreme Court ruling on the Motor finance the Motor
Speaker 4: Finance probe, you know, on which customers are should be compensated,
Speaker 4: and that's due later this month, so some of that
Speaker 4: uncertainty around what is going to happen there might be
Speaker 4: feeding into that little bit of weakness this morning.
Speaker 3: For Luin's and then turning to technology st Micro, their
Speaker 3: share is plunging almost ten percent at the moment.
Speaker 4: Yes, quite bad morning, first Micro, and I guess for
Speaker 4: the chip making sector in general, there's been quite a
Speaker 4: few bad news there. So firstly micro it posted a
Speaker 4: surprise loss of one hundred and thirty million dollars compared
Speaker 4: to expectations of a fifty million dollar profit, so obviously
Speaker 4: quite a big surprise there, and that is all due.
Speaker 1: To restructuring expenses.
Speaker 4: Anless noted as well that the gross margin was really
Speaker 4: below expectations, so that was not great either. But crucially,
Speaker 4: you know, in what's worth keeping in mind for this
Speaker 4: sector in general is that it really flagged weakness in
Speaker 4: the automotive industry, which is kind of its key end markets,
Speaker 4: and that's really weighing on the chip makers, including st Micro,
Speaker 4: that are exposed to that to that sector. You know, Tesla,
Speaker 4: for example, is a really key customer for st Micro
Speaker 4: and it just warned of a really a rough few
Speaker 4: quarters ahead.
Speaker 1: So the outlook is darkening a little bit by this meekness.
Speaker 4: And you know, we also have to see what the
Speaker 4: other chip makers are saying about this, but so far
Speaker 4: not So Good.
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