Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's have a look at some of the individual stocks
Speaker 3: on the move today. Here in your pim Caroline Hetkat
Speaker 3: and I'm joined bubbling Berg Report to Cloimba Lay.
Speaker 1: Good morning.
Speaker 3: Let's start with metals and Fresnillo moving today.
Speaker 1: Tell us more. Yeah, Fresnillo is coming down this morning.
Speaker 4: It is in the red because silver prices are also
Speaker 4: coming down quite sharply. So in January we had seen
Speaker 4: silver prices jumping to record after record, but it has
Speaker 4: been a lot more volatile this month in February, and
Speaker 4: that has been driven by a risk off market environment,
Speaker 4: driven by a lot of profit taking as well after
Speaker 4: this massive rally at the beginning of the year, and
Speaker 4: then also some expectations around rate cuts that have driven
Speaker 4: commodities down as well. And so fresniochez do tend to
Speaker 4: move in tandem with precious metal prices. And given the
Speaker 4: massive rally that we saw in gold, for example, we
Speaker 4: so saw shares really jump massively at the start of
Speaker 4: the year. Now we have this weakness in silver, and
Speaker 4: that is of course then translating in some weakness in
Speaker 4: the share price for Fresno. The earnings for that company
Speaker 4: are actually coming soon in just a couple of weeks,
Speaker 4: so we'll see how that has affected everything. But it's
Speaker 4: expected that those really massive swings in prices will affect
Speaker 4: the bottom line itself too much, and that cash generation
Speaker 4: margins should be in pretty good shape.
Speaker 1: So we'll see.
Speaker 4: How the earnings are actually doing when we get that
Speaker 4: in a couple of weeks.
Speaker 3: Yeah, the euphoria that we saw in January around silver
Speaker 3: markets is really fading now, isn't it. Meanwhile, the AI trade,
Speaker 3: I mean, it's a story that we are just so
Speaker 3: focused on in terms of how it's affecting shares in relics.
Speaker 3: This is a company we've been tracking because of its
Speaker 3: potential exposure to AI.
Speaker 4: Yeah, absolutely, so, some of that AI disruption trade that
Speaker 4: has been really dominating.
Speaker 1: The narrative over the last couple of weeks.
Speaker 4: We're seeing that a little easing off a little bit
Speaker 4: at today's.
Speaker 1: Seeing some reversal at least for some names.
Speaker 4: So Relix, Peerson as well, Experience were in the green.
Speaker 1: Actually this morning.
Speaker 4: After seeing quite a big sell off in the last
Speaker 4: couple of weeks, and Bank of America analysts said that
Speaker 4: last week actually that some of the d rating for
Speaker 4: Relics in particular around those AI fears was quite overdone,
Speaker 4: said that it was a top stock for this year
Speaker 4: and that it's still had a really great competitive advantage.
Speaker 4: So perhaps we are seeing investors calm down a little
Speaker 4: bit on this AI sell off, though it's still is
Speaker 4: a very much top of mind, and perhaps instead of
Speaker 4: just kind of jumping shares in everything, trying to figure
Speaker 4: out which of these software stocks or information and analytic
Speaker 4: stocks will actually come out on top in which will
Speaker 4: actually really struggle. You know, not all software stocks are
Speaker 4: created equal, and now it's time for investors to do
Speaker 4: the digging on where the sell off is overdone and
Speaker 4: where it's justified. And it seems that this in trying
Speaker 4: to figure this out, Relics has been determined to be
Speaker 4: more of an AI winner despite all that sell off
Speaker 4: that we've seen recently.
Speaker 1: Yeah, okay, that's interesting.
Speaker 3: So the AI story has not been written yet, really,
Speaker 3: has it. No Intercontinental Hotels have released results today. How
Speaker 3: investors reacting to IHG.
Speaker 1: Really well it's because there's.
Speaker 4: Been a big buyer back, so we have a nine
Speaker 4: hundred and fifty million dollar buyback, and then also earnings
Speaker 4: that came in slightly ahead of expectations, and the company
Speaker 4: is quite confident for the year ahead. Sees the rebound
Speaker 4: in demand across those different markets, including the markets that
Speaker 4: have struggled a little bit more recently, like China and Europe.
Speaker 4: It has been really bullish on the US for a while,
Speaker 4: saying that there's been quite a lot of resilience in
Speaker 4: the economy in the US that has been really supporting
Speaker 4: business travel, for example, and for twenty twenty six, the
Speaker 4: US will still be a really big part of that strategy.
Speaker 4: Some of the premium offering will also be a big
Speaker 4: part of the strategy. As you just spoke to the
Speaker 4: CFO right before coming on now, and you said that
Speaker 4: there's been a little bit of weakness with the shutdown
Speaker 4: last year in the US, but that there has been
Speaker 4: a real pickup since then, and that things like the
Speaker 4: World Cup for example, later this year will be a
Speaker 4: real big boost, really beneficial for the company. He also
Speaker 4: said that he was really encouraged by what he's seeing
Speaker 4: in China with demand really picking up, and so we've
Speaker 4: seen the Cheers moving higher this morning and driving also
Speaker 4: other hotel operators higher like Whitbread and a Core were
Speaker 4: also higher this morning. So it's been an industry with
Speaker 4: excuse me, quite a lot of weakness in over twenty
Speaker 4: twenty five. There has been, of course, quite low consumer
Speaker 4: confidence that's affected that, but it seems that at least
Speaker 4: for IHG, things are really turning around.
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