WEBVTT - Ferrari's EV Launch, Kingfisher Up, Julius Baer Rises

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

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

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

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

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

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<v Speaker 3>Lizzie Burton and we're joined by Blue Bay.

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<v Speaker 1>We port at Chlo Malay.

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<v Speaker 3>Let's start by the big decliner this morning, Ferrari. They

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<v Speaker 3>want to go green, but investors not giving them the

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<v Speaker 3>go ahead. Why not?

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<v Speaker 4>Yeah, absolutely a huge drop for Ferrari this morning because

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<v Speaker 4>they've unveiled, as you said, their first fully electric car

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<v Speaker 4>and it.

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<v Speaker 1>Seems that it's not what investors wanted.

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<v Speaker 4>At Also, shares felt quite significantly this morning on the back.

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<v Speaker 1>Of the announcement.

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<v Speaker 4>This launch comes after Ferrari actually last year detailed some

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<v Speaker 4>long term targets and that those disappointed investors and they

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<v Speaker 4>really raised questions around how Ferrari is going to balance

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<v Speaker 4>this new electric strategy with the a very loud combustion

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<v Speaker 4>engine sports cars that everyone of course associates with that brand.

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<v Speaker 4>So I guess the key question here is it really

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<v Speaker 4>a Ferrari if it's quiet and so beyond that as well,

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<v Speaker 4>there's also the look of the car.

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<v Speaker 1>Which is apparently not to everyone's taste.

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<v Speaker 4>So one analyst said that it looks like a mix

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<v Speaker 4>between a Honda called EV and a Tesla three.

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<v Speaker 1>And he did not mean that as a compliment.

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<v Speaker 4>It seems he said, we are lost in translation with

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<v Speaker 4>Ferrari's new strategy trying to emulate Apple design. And so

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<v Speaker 4>this seems to be kind of departing from what investors

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<v Speaker 4>want from a Ferrari car. But now Ferrari has to

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<v Speaker 4>show that this EV model can fit within this model

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<v Speaker 4>of having a limited supply to increase that exclusivity, the

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<v Speaker 4>high pricing and the emotional appeal. But it seems that

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<v Speaker 4>the emotional appeal appeal part of that equation is missing.

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<v Speaker 1>And so we're seeing that huge job this morning on

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<v Speaker 1>the back of that. Okay, we need the sound of

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<v Speaker 1>Ferrari to make it a Ferrari. That's my conclusion.

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<v Speaker 3>Let's also talk about King Fisher because they seem to

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<v Speaker 3>be real assuring investors this marnite.

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<v Speaker 1>Yeah, absolutely so.

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<v Speaker 4>Kingfisher, the owner of B and Q here in the UK,

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<v Speaker 4>record it in France. So they had a very reassuring update,

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<v Speaker 4>as you say, Lizzie, So expectations going into the update

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<v Speaker 4>this morning were quite low because of this kind of

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<v Speaker 4>weak consumer confidence that we've been talking about in Europe,

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<v Speaker 4>and investors and analysts were thinking that maybe not a

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<v Speaker 4>lot of people would be keen to spend money on

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<v Speaker 4>home renovation projects, on DIY projects. But it seems that

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<v Speaker 4>demand is actually holding up a little better than expected.

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<v Speaker 4>So sales were down, but they were not down by

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<v Speaker 4>as much as had been expected. And actually one part

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<v Speaker 4>of the business that did really well was screw Fix,

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<v Speaker 4>and that is because of its exposure to more kind

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<v Speaker 4>of indoor projects trade also exposure compared to be in

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<v Speaker 4>Q which has a lot more exposure to outdoor projects,

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<v Speaker 4>and that was actually also impacted not only by a

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<v Speaker 4>slightly weak consumer confidence, but also by the bad weather

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<v Speaker 4>that we've had over the recent months, although we wouldn't

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<v Speaker 4>know that today and in the UK overall demand actually

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<v Speaker 4>held it better than in France where it's a bit weaker.

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<v Speaker 4>But given the weakness in the stock recently, this update,

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<v Speaker 4>although it is not absolutely incredible, it was still seen

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<v Speaker 4>as reassuring, as encouraging, and so we're seeing chares up

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<v Speaker 4>quite strongly this morning.

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<v Speaker 3>Okay, so that on King Fisher and di Y. What

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<v Speaker 3>about in the banking sector Julius Bear.

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<v Speaker 1>Yeah, so up this morning us.

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<v Speaker 4>But after the big drop last week following its trading updates.

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<v Speaker 4>So the update had disappointed investors because of client inflows

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<v Speaker 4>starting to slow quite a bit. But on Friday evening

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<v Speaker 4>before the long weekend, we had a City analyst upgrading

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<v Speaker 4>Julius Bair to a by rating, saying that the recent

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<v Speaker 4>de rating in the stock created actually an opportunity.

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<v Speaker 1>For investors to step in.

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<v Speaker 4>They said that, you know, while they acknowledged that the

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<v Speaker 4>update was quite disappointing, not much had actually changed in

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<v Speaker 4>terms of the plan going forward. That was still on

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<v Speaker 4>track and it will be a lot clearer by the

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<v Speaker 4>end of the year, according to those analysts, seeing a

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<v Speaker 4>big rebound in the chesty.

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