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Let's dive into some of the stocks on the move today in Europe. I'm Lizzie Burden. I'm alongside Caroline Hepcat and we're joined by opimog reporter Chloe Melee. Chloe, We've got to talk about Lorril down on some disappointing sales growth because we're worth it might not be the sentiment investors right now.
Yeah, absolutely so. Yeah, Loreel shas you said, are getting hit quite hard this morning because of those disappointing sales for the third quarter, and that was due primarily to a lot of weakness in the US market. So one of the key problems that Loreal is really over exposed to the makeup category in the US, and that is a category that has been struggling lately. In consumer demand
in the US is quite weak just generally. There's signs of improvement in China where it's all quite good demand for the more kind of high end side of those beauty products, but that really wasn't enough to offset that drag from the US, and the CEO also was quite cautious about China, saying that analysts should not get too excited because one good quarter does not mean that there's
a trend there. So disappointing sales, a cautious commentary. All of that led to that weakness in the shares this morning. Perhaps Lorel is hoping that some M and A could boost growth. We remember that over the weekend we had the news about Lorel buying the fragrance make a House of Creed from Caring. It was also named as a preferred bidder to buy a stake in Georgio Armani last month, so we'll be keeping an eye on.
That as well. Okay, so that on Lorel, Barclay's though is announced a narrow earnings be and also this five hundred million pound share buyback. Investors seemed to be viewing that fairly positively.
Yeah, absolutely so. It actually upgraded it's gudin has been the interesting come as well, announced that five hundred million buy back, said it was now going to move towards quarterly share buybacks. And all of that is by the fact that it actually had to almost quadruple all the provisions related to the MOTI Finance readdress program. But obviously the market reacted quite positively to the upgrade and the
buyer back. Of course, if we look at the actual numbers, it looks a little bit mixed to Equity's revenue actually fell short of expectations, fixed income did a bit better, So it seems like Barclay's actually missed out on some of the boosts from the market volatility that the US
banks had actually flagged last week. It's also worth noting that the investment bank booked a one hundred and ten million pound a credit impairment charge for a client, and the CEO mentioned that the bank remains vigilant across the lending book, which of course is related to that stress in the in the credit market that we've been talking about recently. So it's pretty good so far, but there's been a little bit of caution there as well.
And of course we've got our rye on the European chip makers, the likes of st Micro. Given the West Texas Instruments outlook that came out sd micro down two point seven percent, is that the only reason?
Yeah, Well, it seems like st Micro and also be semi Infinian. So those chip makers that are exposed to the industrial and automotive chip sector, because, as you mentioned, their pair over in the US Sexis Instrument provided quite a disappointing forecast and then said that the recovery in
those end markets was slowing down. So the key takeaway for those European chip makers is that, you know, the industry is in recovery, but it's quite a muted recovery, muted rebound, and so that's dragging down those shares in st micro Infinia, even as the all of the talk about the AA boom has led to quite a lot
of bullishnists in that semiconductor sector. There's also the exposure to those, you know, maybe less less interesting and less sexy and markets, but they are also quite crucial, like industrials and automotive.
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