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Let's take a look at some of the stocks on the move today here in Europe. I'm joined by Bomberg reporter Chloe Malay. Good morning, Chloe, Good morning. H and M showing a rebound and rebuilding its confidence.
Yeah, absolutely so sorry. Margins and profit for H and M were a way ahead of expectations actually, and so the market was very very happy about that, and shares really shot up this morning. So the reason why I did so well was because it had really good cost controls.
That was one of the main reasons. But it's also because it really refocused on its core H and MR brand and it really was ramping up advertising for that core H and M brand, and that's really really helped, and it helped it kind of offset what are otherwise kind of really big and and real challenges for that retail sector. Of course, the really weak consumer confidence that we still see across Europe, but also tariff's of course,
n that tariff threat. This is the second consecutive quarter where results actually exceeded expectations, So it seems that this strategy of really focusing on marketing is paying off. And if we look at what's happened across that retail sector for other companies, Intertext, which owned Zara, also offered really a positive outlook earlier this month, saying that autumn sales
had started much better than expected. But then if we look at the UK, Next had offered quite a negative outlook and said that UK consumer confidence was still really low and that was really going to weigh on profit going forward. So it seems that the key variable here is exposure to the UK, so we'll have to keep an eye on that.
Okay, Well, in terms of tariffs, you mentioned it there with H and M News that President Trump is potentially going to probe robotics and pharmaceuticals and that that could maybe lead to more levees. I mean, there aren't that many robotics companies, a couple in Europe really big ones, but also pharmaceuticals that are slightly larger, device makers like Phillips. So what are we looking at this morning? Yeah?
Absolutely, so Phillips was weaker this morning, but then also other companies within that sector, companies like Smith and Nephew, like Convetec, like Simmons, Healtheniers, and so, as you mentioned, the Trump administration is trying to set the stage really for tariffs on as you mentioned, robotics, industrial machinery, and those medical devices, with the goal of course being to kind of encourage domestic productions for those industry And that's
because of concern about US over reliance on front countries for something things like syringes for example, cafters or whatever. And so the Department of Commerce now has has two hundred and seventy days to deliver the policy recommendtion. So the tariffs are not there yet, but obviously that the threat of that has really driven those shares lower across those sectors.
Meanwhile, the auto makers are bouncing a little bit higher because the auto imports the agreement to go to fifteen percent has now been implemented and it's retroactive, right.
Yeah, absolutely so, Volkswagen, Stellantis, BMW, Urano all were up today on the back of that. So, as you mentioned, the lower tariffs of fifteen percent are now in effect, and so Bloomberg Intelligence estimated that Porsche, Old Mercedes and BMW will gain a combined one point three billion euros in profit and cash boost in the second half of
the year because of it being applied retrospectively. Another boost as well that's driving the shares forward is that the car car selles in Europe rose for the second month in a row in August, and there was really strong demon for electric vehicles and for hybrid models as well, so that is really good news for the European car makers that have been trying to compete with Chinese manufacturersmover's.
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