Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's have a look at some of the stocks on
Speaker 3: the move today here in Europe. I'm Caroline Hepka and
Speaker 3: I'm joined by Bloomberg reporta Cloma La. Good morning, Chloe.
Speaker 3: So we're getting into earning season, but we are also
Speaker 3: thinking about the war in the Middle East and how
Speaker 3: that is affecting markets. Let's start with Lvmhe how did
Speaker 3: they do in the first quarter? What were the most
Speaker 3: interesting lines? I mean, we're also trying to think about
Speaker 3: any clues as to the second quarter. Yeah.
Speaker 1: Absolutely. Our Image is one of the first and obviously
Speaker 1: the most important luxury companies reporting this ending season, and
Speaker 1: it's not the best start. So it's actually the sales
Speaker 1: at the fashion and leather goods business, which is the
Speaker 1: most important division FORMAH disappointed this morning, and that was
Speaker 1: mostly due to the conflict in the Middle East, which
Speaker 1: particularly hurt demand in the shopping hub of Dubai, of course,
Speaker 1: but then also really weakened that consumer confidence globally as well.
Speaker 1: And so if we look at the business in the
Speaker 1: Middle East, it represents about six percent of total sales,
Speaker 1: and it's a division that suffered a lot, with the
Speaker 1: sales falling fifty percent in March, and that was after
Speaker 1: what LVMH said was actually a very positive start to
Speaker 1: the year. So we're seeing the impact of the geopolitical
Speaker 1: turmoil on sales really overshadowing progress in other parts of
Speaker 1: the business. So if we look at the US and China,
Speaker 1: for example, they actually did pretty well with the New
Speaker 1: year's shopping season, boosting sales is actually quite a bit,
Speaker 1: but that is currently taking a back seat to the
Speaker 1: weakness that we're seeing in the Middle Eastern market. That
Speaker 1: was seen as a very profitable and a really key
Speaker 1: growth driver going forward, but now things are obviously a
Speaker 1: little bit different. So we've seen shares down quite a
Speaker 1: bit for Heavy Image this morning, and that is actually
Speaker 1: after the company had these its worst start to a
Speaker 1: year on record in the first quarter, so definitely not
Speaker 1: a good time for ovamage. But we'll see how caring
Speaker 1: An MSL holding up when we get those results as well.
Speaker 3: Yeah, absolutely, Lvimage is amongst the worst performance on the
Speaker 3: USTOX six hundred this morning. Media Company Publicists, they have
Speaker 3: a more positive earnings message.
Speaker 1: Yeah, at a little bit more positive actually pretty resilient
Speaker 1: earnings for publicities. So it was able to maintain quite
Speaker 1: solid as sales growth for the first quarter and also
Speaker 1: kept its guidance for the year. And that is despite
Speaker 1: the fact that there is obviously an impact of the
Speaker 1: around or owned business confidence on how much companies are
Speaker 1: willing to spend on advertising and marketing those services that
Speaker 1: Publicist provides. The company does not have major exposure to
Speaker 1: the Middle East, so that helps a little bit as well.
Speaker 1: It did strike a note of caution though it expects
Speaker 1: sales growth to accelerate in the second quarter, but provided
Speaker 1: that microeconomic conditions do not deteriorate any further. So the
Speaker 1: result my have reassured investors a little bit, but it's
Speaker 1: not eased kind of every single or worry that they have,
Speaker 1: and so shares slipped a little bit this morning. Yeah.
Speaker 3: Meanwhile, energy price is soaring. That's obviously quite good news
Speaker 3: for BP, one of the oil companies that is really
Speaker 3: the heart of what's going on.
Speaker 1: Yeah yeah, BP said this morning that its oil trading
Speaker 1: performance was exceptional in the first quarter, so that echoes
Speaker 1: what We've already heard from Shell a little bit earlier
Speaker 1: this month, which also mentioned this trade that the trading
Speaker 1: operation really boosted earnings in the first quarter because of
Speaker 1: this disruption to global energy market is really leading to
Speaker 1: oil guests and fuel prices much higher. But oil majors
Speaker 1: shares are down actually this morning because oil prices are
Speaker 1: currently down, which is in response to the US and
Speaker 1: AROUND potentially considering further talks to extend this two week
Speaker 1: cease fire. So just like we saw oil jumping yesterday
Speaker 1: because of this blockade of the trade of hormones, today
Speaker 1: there's a bit more optimism around the potential peace deal,
Speaker 1: and so there's leading oil a little bit low. So
Speaker 1: despite the fact that we had this trading update from BP,
Speaker 1: shaws are actually a little bit in the red because
Speaker 1: that was not really enough to upset the impact of
Speaker 1: those week oil prices. And we'll get more detail when
Speaker 1: we get the earnings from BP later this month. Is
Speaker 1: definitely a key sector to watch from an earning standpoint
Speaker 1: as well.
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