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Let's have a look now at some of the stocks on the move today here in Europe. I'm Caroline Hepca and I'm joined as usual by Bloomberg with portacloim Lay.
Good morning. So the turnaround.
Plans that HSBC has been undertaking, they seem to have been quite big winners so far.
We'll get onto other turnaround plans in a moment.
Yeah, absolutely, so, very good results all around for HSBC this morning. So we have got a better than expected profit in twenty twenty five, things to strong performance in the wealth business, but also really good results at the Hong Kong franchise as well. And then the bank also said that it would it would hit a cost saving target ahead of schedule, six months ahead of schedule. So this all seems to point, as you said, to a turn of around that is paying off, that has paid off.
So since taking over as CEO in twenty twenty four of George Elderry has led a really major restructuring of the bank.
He's cut thousands of jobs.
He's sold some businesses, some other businesses have been merged, some others have been closed, so a really major restructuring. And he also doubled down on a strategy of focusing on Asia and that's proven to be also very successful.
So all of that is now paying off and we can see that in the earnings this morning, and the shares rose very strongly as a result, hitting a record as well, and that is after the market value for HSBC also broke through two hundred billion dollars for the first time in twenty twenty five, so that was a really key milestone, and this really strong start to the year that we can see today it might signal that we might see more record breaking ahead.
For that bank.
Absolutely, HSBC's pre tax profit twenty nine point nine billion dollars for a twenty twenty five on a slightly different scale, but I think very interesting. Aston Martin Lagonda, they've been in a turnaround for ages, but really struggling together.
Yeah, very much so.
But the market does love some efficiency measures, and so the shares rose this morning because the company said it would cut as much as twenty percent of its workforce, so that's much more than the previous round of drop cuts, which was about five percent of the workforce, and as the Martains said that there would allow it to make
about forty million pounds in saving. So, as you mentioned, that's part of those turnaround efforts that are taking quite a while, and that is to kind of end those years and years of losses and reduce a massive debt pile. So the loss for twenty twenty five was of almost five hundred million pounds and Asam Martin also said that it doesn't expect cash flow to turn positive this year, so that will be a bit of a disappointment. It means that the company is not out of the woods
just yet. It's been dealing with product delays with a slowdown in China, but the main problem really is US tariffs because the US is the biggest market. So that has led to three profit warnings this year. The latest was just a few days ago, just a few days before the earnings were released today.
So for now, job.
Cuts are making the market quite happy, but there's a lot to iron app for that company.
Yeah, okay, then let's talk about Diaggio the drinks make I mean, maybe they're going to need a stift drink after today's earnings, can.
We say that, yeah, I think we can.
They cut guidance for the second time this fiscal year, and that is going to be really the first big challenge for the new ce who started just in January. So the problem for the company is as a just really weak demand in the US and China. Some of it is because of discretionary spending being a little bit weaker, but some of it is also because people are really cutting back.
On their alcohol consumption.
And so the new CEO, Dave Lewis, was appointed because he managed to turn around Tesco, so the hope was that he would be able.
To turn around the JO as well.
Of course, it's too soon to say whether he's set for success or not. Any will be revealing a strategy later this year, considering maybe acid disposals as well. So Jeffreys Andelist said that the first half was never going to be the time for Diagro strategic resets, so we have to wait a little bit more to see if that works out. But in the meantime, that guidance cut is really hitting the shots.
This morning, the Stock Movers report from Bloomberg Radio check back with us throughout the day. For the latest roundup of companies making news on Wall Street, and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.