WEBVTT - LVMH & Publicis Earnings, BP Gain

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's have a look at some of the stocks on

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<v Speaker 3>the move today here in Europe. I'm Caroline Hepka and

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<v Speaker 3>I'm joined by Bloomberg reporta Cloma La. Good morning, Chloe.

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<v Speaker 3>So we're getting into earning season, but we are also

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<v Speaker 3>thinking about the war in the Middle East and how

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<v Speaker 3>that is affecting markets. Let's start with Lvmhe how did

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<v Speaker 3>they do in the first quarter? What were the most

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<v Speaker 3>interesting lines? I mean, we're also trying to think about

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<v Speaker 3>any clues as to the second quarter. Yeah.

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<v Speaker 1>Absolutely. Our Image is one of the first and obviously

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<v Speaker 1>the most important luxury companies reporting this ending season, and

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<v Speaker 1>it's not the best start. So it's actually the sales

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<v Speaker 1>at the fashion and leather goods business, which is the

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<v Speaker 1>most important division FORMAH disappointed this morning, and that was

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<v Speaker 1>mostly due to the conflict in the Middle East, which

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<v Speaker 1>particularly hurt demand in the shopping hub of Dubai, of course,

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<v Speaker 1>but then also really weakened that consumer confidence globally as well.

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<v Speaker 1>And so if we look at the business in the

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<v Speaker 1>Middle East, it represents about six percent of total sales,

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<v Speaker 1>and it's a division that suffered a lot, with the

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<v Speaker 1>sales falling fifty percent in March, and that was after

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<v Speaker 1>what LVMH said was actually a very positive start to

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<v Speaker 1>the year. So we're seeing the impact of the geopolitical

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<v Speaker 1>turmoil on sales really overshadowing progress in other parts of

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<v Speaker 1>the business. So if we look at the US and China,

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<v Speaker 1>for example, they actually did pretty well with the New

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<v Speaker 1>year's shopping season, boosting sales is actually quite a bit,

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<v Speaker 1>but that is currently taking a back seat to the

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<v Speaker 1>weakness that we're seeing in the Middle Eastern market. That

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<v Speaker 1>was seen as a very profitable and a really key

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<v Speaker 1>growth driver going forward, but now things are obviously a

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<v Speaker 1>little bit different. So we've seen shares down quite a

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<v Speaker 1>bit for Heavy Image this morning, and that is actually

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<v Speaker 1>after the company had these its worst start to a

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<v Speaker 1>year on record in the first quarter, so definitely not

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<v Speaker 1>a good time for ovamage. But we'll see how caring

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<v Speaker 1>An MSL holding up when we get those results as well.

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<v Speaker 3>Yeah, absolutely, Lvimage is amongst the worst performance on the

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<v Speaker 3>USTOX six hundred this morning. Media Company Publicists, they have

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<v Speaker 3>a more positive earnings message.

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<v Speaker 1>Yeah, at a little bit more positive actually pretty resilient

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<v Speaker 1>earnings for publicities. So it was able to maintain quite

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<v Speaker 1>solid as sales growth for the first quarter and also

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<v Speaker 1>kept its guidance for the year. And that is despite

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<v Speaker 1>the fact that there is obviously an impact of the

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<v Speaker 1>around or owned business confidence on how much companies are

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<v Speaker 1>willing to spend on advertising and marketing those services that

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<v Speaker 1>Publicist provides. The company does not have major exposure to

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<v Speaker 1>the Middle East, so that helps a little bit as well.

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<v Speaker 1>It did strike a note of caution though it expects

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<v Speaker 1>sales growth to accelerate in the second quarter, but provided

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<v Speaker 1>that microeconomic conditions do not deteriorate any further. So the

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<v Speaker 1>result my have reassured investors a little bit, but it's

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<v Speaker 1>not eased kind of every single or worry that they have,

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<v Speaker 1>and so shares slipped a little bit this morning. Yeah.

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<v Speaker 3>Meanwhile, energy price is soaring. That's obviously quite good news

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<v Speaker 3>for BP, one of the oil companies that is really

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<v Speaker 3>the heart of what's going on.

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<v Speaker 1>Yeah yeah, BP said this morning that its oil trading

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<v Speaker 1>performance was exceptional in the first quarter, so that echoes

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<v Speaker 1>what We've already heard from Shell a little bit earlier

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<v Speaker 1>this month, which also mentioned this trade that the trading

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<v Speaker 1>operation really boosted earnings in the first quarter because of

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<v Speaker 1>this disruption to global energy market is really leading to

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<v Speaker 1>oil guests and fuel prices much higher. But oil majors

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<v Speaker 1>shares are down actually this morning because oil prices are

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<v Speaker 1>currently down, which is in response to the US and

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<v Speaker 1>AROUND potentially considering further talks to extend this two week

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<v Speaker 1>cease fire. So just like we saw oil jumping yesterday

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<v Speaker 1>because of this blockade of the trade of hormones, today

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<v Speaker 1>there's a bit more optimism around the potential peace deal,

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<v Speaker 1>and so there's leading oil a little bit low. So

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<v Speaker 1>despite the fact that we had this trading update from BP,

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<v Speaker 1>shaws are actually a little bit in the red because

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<v Speaker 1>that was not really enough to upset the impact of

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<v Speaker 1>those week oil prices. And we'll get more detail when

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<v Speaker 1>we get the earnings from BP later this month. Is

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<v Speaker 1>definitely a key sector to watch from an earning standpoint

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<v Speaker 1>as well.

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