Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers podcast, your roundup of companies making moves in
Speaker 2: 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. I'll Paul swing alongside normal Linda.
Speaker 4: I do want to turn to Tim craighead and he's
Speaker 4: based in London. He's joining us via zoom. He's a
Speaker 4: research director for content for Bloomberg Intelligence. And I'll look
Speaker 4: at this story that's out right now and lots of
Speaker 4: really interesting illustrations. But the story is called Banking Booze
Speaker 4: and Double seven wheels. Ten companies to watch right now. Paul,
Speaker 4: I have no idea where this is going. I'm so
Speaker 4: curious just based off the headline alone. But Tim contextualizes
Speaker 4: for us, tell us what.
Speaker 1: Is this list? These ten ideas are all part of
Speaker 1: a broader list of what we call focus ideas. Focus
Speaker 1: ideas are where are analysts around the globe, cross regions,
Speaker 1: cross sectors have high conviction fundamental points of view that
Speaker 1: they think are different from what the market thinks, anti consensus,
Speaker 1: and importantly, they're catalysts coming up that we think can
Speaker 1: change market perceptions, and these ten all have important catalysts
Speaker 1: coming up during the third quarter.
Speaker 3: Tim What I like about these ideas, you know, because
Speaker 3: people are always looking for ideas long and short, you
Speaker 3: guys have the ideas. And what I really like that
Speaker 3: this research format is you have the triggers. What has
Speaker 3: to happen in order for this call to work on
Speaker 3: a particular stock Aston Martin? What's the call here on
Speaker 3: Aston Martin?
Speaker 1: The call on Acid Martin. As much as I like
Speaker 1: the cars, and obviously this is where the double O
Speaker 1: seven reference comes from. They've got a really interesting new
Speaker 1: lineup of vehicles, but they're short on V twelves and
Speaker 1: notwithstanding the world of evs and all that sort of stuff,
Speaker 1: the high end V twelves from Ferrari and Lamborghini are hot,
Speaker 1: and you look at the inventory levels of Aston Martin
Speaker 1: on the lots, they're too high. We think that there's
Speaker 1: a capital infusion that's likely needed in coming months, and
Speaker 1: so we actually have a cautious view on Aston Martin
Speaker 1: from that perspective.
Speaker 3: Booze Dagio, what's the story there, Dagio?
Speaker 1: It ties in a little bit with a couple of
Speaker 1: ideas here. You know, I mentioned Aston Martin. That's obviously
Speaker 1: a high end consumer idea, and even though we're concerned
Speaker 1: about Aston Martin specifically, the high end luxury vehicle market
Speaker 1: is good. Similarly with the Agio high end Booze high
Speaker 1: end spirits, they are the world's largest spirits manufacturer, is
Speaker 1: doing relatively well. You know, their recent sales trends have
Speaker 1: been robust. We think that's going to continue to show through.
Speaker 1: There has been concern about things like tariffs and what
Speaker 1: could be the impact, especially from a US consumer base.
Speaker 1: We're less concerned and we're optimistic. Another consumer, higher end
Speaker 1: idea you guys know and love in the States is
Speaker 1: Dick Sporting Goods. You know, this is a classic good
Speaker 1: old consumer's growth story where not only do you know
Speaker 1: the store, but you might have been in one of
Speaker 1: their new bigger formats where they have you know, that
Speaker 1: much more kit. Their sales trends continue to be quite good,
Speaker 1: despite concerns about what are tear's going to mean for
Speaker 1: consumer here or there? So you know, those are all
Speaker 1: those are all consumer ideas. There's certainly a common thread there.
Speaker 4: You mentioned Dick said, I'm looking at easy Jet, which
Speaker 4: of course we know is a low cost British airline
Speaker 4: and we have a sunny outlook here. But what do
Speaker 4: you think will be the most surprising call here for readers.
Speaker 1: Yeah, it's interesting in this instance. Obviously this is not
Speaker 1: the high end consumer. This is everyday consumer. This isn't
Speaker 1: so much about the demand, which actually demand for travel
Speaker 1: and experience continues to be pretty good. This is more
Speaker 1: of a story on an operational basis. They're replacing a
Speaker 1: lot of older planes with newer planes that have bigger
Speaker 1: capacity and much more fuel efficient, So this is a
Speaker 1: margin story. Easy Jet is historically lagged behind Ryan Air
Speaker 1: at the other low cost carrier here in Europe. We
Speaker 1: think that that's set to change.
Speaker 3: Tim You live and work in London, but as most
Speaker 3: of our listeners can tell, you're not an Englishman. You're
Speaker 3: from the Great Commonwealth of Virginia. Talk to us. Are
Speaker 3: the tourists? Is it as crazy in London this year
Speaker 3: as it's been in recent years? What's the tourism factor
Speaker 3: they're in London day?
Speaker 1: The quick answer is yes, notwithstanding the fact that the
Speaker 1: pound is actually pretty robust as of late, streets busy.
Speaker 1: It's true in the city. Walk out the door here
Speaker 1: Tuesday Wednesday, Thursday or the New Friday. It has been
Speaker 1: a warm summer, but you know, this is also the
Speaker 1: time for Wimbledon, and beyond that, it's just been busy
Speaker 1: with people coming from all over the world, whether it's China,
Speaker 1: whether it's the US. This seems to be a hot ticket.
Speaker 1: Still feels pretty good.
Speaker 3: You mentioned the pound sterling, but the with the euro
Speaker 3: one seventeen that gets your attention.
Speaker 1: Yeah, it does. From our perspective, this is a week
Speaker 1: dollar story as opposed to stronger other currency story, and
Speaker 1: we think that there's more legs to this. You know.
Speaker 1: One of the big themes that comes up in all
Speaker 1: the investor discussions or events that I'm at is is
Speaker 1: the long standing premise of American exceptionalism. You pop money
Speaker 1: in US bonds, US stocks and they take off, you know?
Speaker 2: Is that holding the Stock Movers podcast from Bloomberg Radio.
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