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 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,600 --> 00:00:18,160 Speaker 1: Well, let's take a look at some of the stocks 5 00:00:18,200 --> 00:00:20,200 Speaker 1: on the mode today in Europe. I'm Stephen Carroll and 6 00:00:20,280 --> 00:00:23,880 Speaker 1: I'm joined by Bloomberg's Chloe Melee for more. Chloe, good morning. 7 00:00:23,960 --> 00:00:27,320 Speaker 1: Let's start in the UK and the retailer Next has 8 00:00:27,360 --> 00:00:28,920 Speaker 1: some thank you letters to be writing. 9 00:00:29,080 --> 00:00:32,480 Speaker 3: Why yeah, absolutely well to Santa in particular. So Next 10 00:00:32,720 --> 00:00:36,120 Speaker 3: boosted its profit target for a fifth time this financial year, 11 00:00:36,159 --> 00:00:38,519 Speaker 3: and that was thanks to really strong sales over the 12 00:00:38,600 --> 00:00:41,840 Speaker 3: Christmas period. So the sales were super strong in international 13 00:00:41,880 --> 00:00:45,400 Speaker 3: markets in particular, but even in the UK, where expectations 14 00:00:45,440 --> 00:00:48,440 Speaker 3: were a little bit more muted, growth was actually ahead 15 00:00:48,479 --> 00:00:51,640 Speaker 3: of those estimates as well. But it's not because the 16 00:00:51,680 --> 00:00:55,160 Speaker 3: Christmas spirit was strong that twenty twenty six will necessarily 17 00:00:55,280 --> 00:00:58,960 Speaker 3: be golden either. So Next did warn that profit in 18 00:00:59,000 --> 00:01:02,440 Speaker 3: sales would grow slower pace in the year ahead. It 19 00:01:02,520 --> 00:01:06,240 Speaker 3: blamed rising unemployment and slowing wage growth, which means of 20 00:01:06,240 --> 00:01:11,760 Speaker 3: course that there will be more constrained consumer spending, more uncertainty, 21 00:01:11,840 --> 00:01:15,640 Speaker 3: less money to just spludge on nice clothes. And you know, 22 00:01:15,720 --> 00:01:18,360 Speaker 3: Next is usually quite cautious with its guidance and so 23 00:01:18,640 --> 00:01:20,959 Speaker 3: the fact that it had this world of caution isn't 24 00:01:21,319 --> 00:01:24,520 Speaker 3: wasn't necessarily taken like a real warning from the market, 25 00:01:24,560 --> 00:01:27,720 Speaker 3: and the chase did still rise. But it's worth keeping 26 00:01:27,800 --> 00:01:30,400 Speaker 3: in mind that they are still challenges for Next and 27 00:01:30,440 --> 00:01:34,200 Speaker 3: for other peers within that British retail sector. And there 28 00:01:34,240 --> 00:01:36,520 Speaker 3: will be more details on that when we get some 29 00:01:36,600 --> 00:01:40,640 Speaker 3: of the food retailers reporting some Christmas trading updates as 30 00:01:40,640 --> 00:01:43,680 Speaker 3: well later this week. We've got Tesco and Sainsbury's as 31 00:01:43,720 --> 00:01:46,600 Speaker 3: well as em and s keeping US updated later this week, 32 00:01:46,640 --> 00:01:49,240 Speaker 3: so we'll see what's happened there as well. 33 00:01:49,680 --> 00:01:52,400 Speaker 1: Okay, so more to watch for on the UK consumer front. 34 00:01:52,440 --> 00:01:56,080 Speaker 1: Accado meanwhile delivering fresh gains. This is after the latest 35 00:01:56,560 --> 00:01:59,560 Speaker 1: report by analysts JP Morgan. What have they said. 36 00:02:00,040 --> 00:02:01,160 Speaker 4: Yeah, it's a good day for Ricado. 37 00:02:01,200 --> 00:02:04,200 Speaker 3: They were placed on a positive catalyst watch by JP Morgan. 38 00:02:04,640 --> 00:02:07,960 Speaker 3: There was also a monthly report from an industry researcher 39 00:02:08,000 --> 00:02:11,680 Speaker 3: that showed that Ocado would once again the UK's fastest 40 00:02:11,680 --> 00:02:15,000 Speaker 3: growing grosser in December, so there's kind of two positive 41 00:02:15,000 --> 00:02:17,840 Speaker 3: things there for Ocado. If we go back to the 42 00:02:18,680 --> 00:02:21,760 Speaker 3: positive catalyst watch from JP Morgan, they said that there 43 00:02:21,800 --> 00:02:25,800 Speaker 3: is now greater operational stability at the company after some 44 00:02:25,880 --> 00:02:29,040 Speaker 3: recent setbacks. Of course, we remember the biggest one was 45 00:02:29,200 --> 00:02:33,800 Speaker 3: when Ocado's biggest customer, Kroger, announced it would close three 46 00:02:34,000 --> 00:02:37,480 Speaker 3: automated warehouses that were operated by Ocado, and that had 47 00:02:37,520 --> 00:02:40,880 Speaker 3: sent the shas plunging and really hurt investor confidence in 48 00:02:40,919 --> 00:02:43,440 Speaker 3: the company. But now there is a lot more clarity 49 00:02:43,520 --> 00:02:45,040 Speaker 3: on that partnership with Kroger. 50 00:02:45,320 --> 00:02:47,120 Speaker 4: There is also Acado going. 51 00:02:47,000 --> 00:02:50,520 Speaker 3: To be pursuing more deals in more markets after ending 52 00:02:50,600 --> 00:02:55,000 Speaker 3: some exclusivity agreements, and JP Morgan analysts also said that 53 00:02:55,040 --> 00:02:58,760 Speaker 3: the balance sheet looks much sturdier, much stronger. So all 54 00:02:58,760 --> 00:03:00,720 Speaker 3: of that means that perhaps a card we'll be back 55 00:03:00,760 --> 00:03:03,120 Speaker 3: on track in twenty twenty six, so we'll be looking 56 00:03:03,160 --> 00:03:04,480 Speaker 3: for that as well going forward. 57 00:03:05,040 --> 00:03:08,799 Speaker 1: Okay, let's turn next to Microchip. Got some traders watching 58 00:03:08,800 --> 00:03:11,080 Speaker 1: europe tech firms for non micro gains. 59 00:03:11,520 --> 00:03:13,920 Speaker 3: Yeah, so Microchip over in the US has said that 60 00:03:13,960 --> 00:03:17,360 Speaker 3: it expects higher sales than previously thought, So that's taken 61 00:03:17,400 --> 00:03:20,520 Speaker 3: by the market as a sign of recovery for industrial 62 00:03:20,600 --> 00:03:23,919 Speaker 3: and automotive end markets. So This is a good day 63 00:03:23,960 --> 00:03:27,160 Speaker 3: then for semiconductor companies in Europe that are exposed in 64 00:03:27,200 --> 00:03:30,440 Speaker 3: particular to those end markets. So we're talking about Infinian 65 00:03:30,720 --> 00:03:33,919 Speaker 3: and st Micro. We've have course talked a lot about 66 00:03:34,080 --> 00:03:37,440 Speaker 3: semiconductor companies and their exposure to AI and how much 67 00:03:37,520 --> 00:03:39,480 Speaker 3: they benefit from that, but there's a lot of other 68 00:03:39,520 --> 00:03:42,440 Speaker 3: sectors that need chips, including cars and factories for a 69 00:03:42,440 --> 00:03:44,400 Speaker 3: lot of other things, and there's been a lot of 70 00:03:44,440 --> 00:03:47,520 Speaker 3: weakness recently in those end markets and really a lot 71 00:03:47,560 --> 00:03:50,720 Speaker 3: of uncertainty about when that would lift. So the fact 72 00:03:50,720 --> 00:03:54,840 Speaker 3: that Microchip has signaled rebound there is really reassuring for 73 00:03:55,000 --> 00:03:59,720 Speaker 3: Infinian and st Micro, especially given that those two actually 74 00:03:59,800 --> 00:04:03,120 Speaker 3: had said previously that the quarter that is that ended 75 00:04:03,120 --> 00:04:06,480 Speaker 3: in December would be below seasonal trend, so they might 76 00:04:06,520 --> 00:04:07,440 Speaker 3: actually be doing. 77 00:04:07,320 --> 00:04:08,760 Speaker 4: Better than they expected. 78 00:04:09,440 --> 00:04:12,760 Speaker 3: There's still a gap in stock performance between those names 79 00:04:12,800 --> 00:04:14,360 Speaker 3: and then the names that are a little bit more 80 00:04:14,560 --> 00:04:17,920 Speaker 3: exposed to AI in that semiconductor sector. So let's see 81 00:04:17,960 --> 00:04:21,640 Speaker 3: if that recovery in those end markets brings that gap, well, 82 00:04:21,720 --> 00:04:23,480 Speaker 3: you know, closes that gap a little bit more. 83 00:04:24,960 --> 00:04:28,960 Speaker 2: The Stock Movers report from Bloomberg Radio check back with 84 00:04:29,040 --> 00:04:31,640 Speaker 2: us throughout the day for the latest roundup of companies 85 00:04:31,720 --> 00:04:34,800 Speaker 2: making news on Wall Street, and for the latest market 86 00:04:34,839 --> 00:04:39,320 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, 87 00:04:39,400 --> 00:04:42,880 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 88 00:04:42,960 --> 00:04:44,440 Speaker 2: the Bloomberg Business app.