Bloomberg Audio Studios, podcasts, radio news.
The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
Let's look at some stocks on the move today here in Europe. I'm Caroline Hepko with Lizzie Burton and we're joined by Bloomberg reporta Clomber Lake of morning. So lots of choose from today then, because so many earnings. But let's start with currying the Luxury group extending a brisk rally.
Yeah, absolutely, and that is because the cells in the third quarter fell by much less than analysts had expected, including the Gucci business, which was obviously the most important one for Caring. And this was actually the first set of results under the new CEO who was hired to kind of lead Caring to recovery and turn things around.
And it seems that he's doing a pretty good job so far. So don't.
Demand recovered quite well in North America. Sales also improved in China. Obviously those are two of the most important luxury markets. We are still in negative territory. We were still talking about a sales drop overall. But and Liz, I'm now kind of seeing a way out of that. So some predict a return to growth as soon as early twenty twenty six, which would be very positive for Caring. It also kind of helps that Luca Demo, who who's the new CEO, is trying to revive sales as the
same time as he's cutting costs and reducing debt. We've seen that this week with the four billing euro cell of the beauty division to Lareal. So this is quite a good set quite good news for Caring, also a set of good news for luxury more broadly. Obviously, VMH did quite well, Ammas did well, although it always kind of does. Carring is recovering, so there's a sector wide story there and it's quite positive.
And I've got to ask you about Volvo because I spoke to the CEO earlier and the shares are up thirty one and a half percent. He seemed optimistic, but it seems he really needed to be.
Yeah.
Absolutely, it's a massive message jump.
As you just said, that's because it reported profit that was much higher, much much higher than analyst expectations. And then the margin also improved quite massively, and we had a big bat on margin as well. And that was down to cost cutting initiatives. So Volvo announced a few months ago that it was cutting three thousand jobs and that is starting to kind of feed through into the profits starting to have a positive impact on the company,
and that the benefits also happened earlier than expected. And Liz said that the quarter marks a clear inflection, and that is despite the fact that Volvo is very exposed to tariffs.
It's owned controlled by a Chinese company.
It has a lot of production facilities in China, although it has.
Been moving some of these to Europe and to the US.
So some analysts saying that, you know, there's not many car companies doing this well right now.
In terms of the other stories that we're thinking about. The semiconductor company st Micro also reporting, always a firm eye on the semis.
Yeah, absolutely, So sd micro is down this morning because it provided guidance that missed expectations, which kind of signals that the recovery in the chip industry is maybe not
progressing as well as it was hoped. So that follows the update that we had earlier this week from Texas Instruments, which is a US company in that sector as well, and the Texas Instruments said that customers were pulling back on orders because of trade tensions and because of quite a shaky economy, and that the industrial and automotive and markets for that chiprotector were particularly a week. So obviously it's dealing with a lot of challenges at the moment
that that sector. We've had tariffs, we also have rising China and US tensions. The US is trying to stop the delivery of AI chips to China and return. China is trying to limit exports of Star crucial for those chips and batteries. So there's been this tip for tat, there's been those tariffs, and all of that is really severely disrupting the chip supply chain, and that is weighing quite a lot on st micro.
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.