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Let's have a look at some stocks on the move today in Europe. I'm Caroline Heapcoat alongside Tom McKenzie, and we're joined by Bloomberg reporter Chloe Malay. Chloe, good morning. Let's start with Nesley. Then a big cut to jobs, sixteen thousand jobs going at Nesley. What's been the reaction, Well, quite positive.
So Neslie I actually had two good news for investors today. So first it reported stronger than expected sales growth on the back of both price and volume increases, which is quite positive given that it really has struggled to revive volumes over the last few months. And then the other big thing, which is the thing that you just mentioned, which is that plan to cut sixteen thousand jobs over the next couple of years. So that's a massive headcount reduction.
It's a really bold start for the new CEO, Philip Nevratta, who joined just last month after the office romance scandal that we all remember that led to the departure of the previous CEO Laura frex so Ali said that this is helping to restore investors trust in Nesle, but it still remains quite fragile, so going forward, and the rattail doesn't really want to rock the boat too much, you know.
He's probably previously said he wants to maintain the strategy of boosting spending on advertising and betting on fewer but bigger product initiatives and getting rid of some underperforming units. Perhaps the difference there in his strategy is that he's being maybe a bit more assertive about it. So we'll see how that goes going forward for Nesle.
This is an interesting one in the luxury space because Elvimhor's earnings and the pop that we saw in its stock price yesterday was pretty headline. It was headline grabbing, certainly head spinning, and the games are coming through for Alvimh again today up five ten percent, but it's a very different story for Caring what's going on there the owner of Gucci Gucci.
Yeah, so it was a really good day for luxury yesterday. As you said, you had the update from LVMH yesterday that really drove the shares for all of those names. But then today Caring got cut to a seal rating at Behrenberg and that is driving down those shares. So Behrenberg curt Caring to a cell and also LVMH to a hold and said that that luxury sector faces structural demand issues and you know there continued pressure in China.
You know that this is not completely gone. There's low consumer confidence, especially among aspirational consumers, and then there's also change in consumer behavior in younger generations. And Berenberg analyst said that this will be particularly tough on Carrying and LVMH, whilst companies like MS for example will be a little bit better position because they have less exposure to the
aspirational end of the market. So it seems like there's quite a cautious stone on the sector and in particular for Caring, despite a massive rally in the shares over the last few months.
Okay, so that on the luxury sector. To banks though obviously had the big Wall Street banks, and we've got lots of the UK banks coming out next week with their results. And today Helsinki based Nordaa Bank announcing a spate of share buy banks.
Yes, so Naudia is actually the first big European bank to report in the earning season and it looks quite positive, so it launched two hundred and fifty million euro buy back. Their interesting come also be expectations, and that is because the CEO said that Nordic companies had a renewed appetite for investments, which meant that it translated into increased demand for lending. It's quite reassuring for Naudia and then also could bode well for the rest of the European banking sector.
As you mentioned, we've got UK banks coming next week with Barclay's, Lloyds and Networks, and then also a bunch of Nordic banks reporting as well and UniCredit next week. Loads of things happening. There's a few things that investors and analysts will be looking closely at for those European banks.
You know, we know that lower rates are feeding into a pressure on their interest income, so it's all about how banks are able to mitigate that, and then also credit quality because of macroeconomic uncertainty, potentially feeding into bad loans. But those measures were quite steady for Nadea, so we'll see what we get as the rest of the season progresses.
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