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Let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Lizzie Burden, and we're joined by Bloomberg reporter Chloe Mane Chloy.
Good morning.
Let's start with Volkswagen announcing a beat on cash flow and rebounding from the tariff uncertainty.
Yeah.
Well, it's not often that I come on here and say that it's a good day for carmakers, but today it definitely is involved.
To happen once in a while, Yeah, it can happen.
And Volksbagen in particular, as you mentioned, is doing well this morning, and as you mentioned, there is a couple of reasons behind that.
So, first of all, it did say last night that it ended twenty.
Twenty five with more cash in its automotive division than it had expected, and that is because it's essentially saving a lot of money by delaying projects and investments in electric vehicles, so it's pushing back payments to suppliers and spending life on things like equipment, tools, research, and so
this lower capital spending, it's better liquidity, reassured investors. And then the other thing, the bigger picture is of course Trump and Trump saying that he wouldn't impose tariffs on the countries that I've said they were against his efforts
to acquire Greenland. So when he announced those tariffs and said that they would be imposed on February first, the car making sector took a really big hit because of how exposed of an industry it is to global trade into tariffs, and so this reversal from Trump is seen as a very positive for the sector. And yeah, there's not many details, but as Lizzie mentioned, is enough for markets. And so we have now essentially proved that one of
the biggest carmakers is finding steadier footing. And then there's also now this tariff threat being walked back, and so both of those things have been very positive. And we've seen all of those car makers in the green actually this morning and Vogs bag and really leading that challenge as well.
Now, Claire, you know like A just can't be and M down today one point one percent because of a cut to its earnings.
Outlock tell us more.
Yeah, so it cut its guidance again, and so this time is because of the costs of its turnaround plan.
So just to rewind a bit, essentially one nonprofit.
Back in October, I said that a review of the business had revealed some really big missteps, like duplicated promotions and too many product ranges, and in announced plan to bring the company back to growth. And then two weeks later, so still in October, it said that it had made an accounting error, and so it cuts its guidance again, and then the CFO left as well, and so all of that led to a lot of weakness in the share price back in twenty twenty five.
And today it's saying that the.
Turnaround plan that it had announced last year is showing some very early signs of progress, but that all the measures that it's taking, like clearing inventory and reducing pricing for example, that's going to really hurt profit in the near terms, and so that's why it cut its target again.
And that's of course not being taken super well by the market, and it will probably take a while for BNM to be kind of properly back on track because it's dealing with a lot of competition and also those increasing wage costs which are really weighing on retailers more generally.
And then we're turning now to France and Ubisoft the games maker, cutting its guidance and cancing a number of new projects.
Yeah, and that's really tough day to day for ub Soft. It's saw the steepest ever drop in the shads, talking about thirty percent, and that's because of that guidance cut and this announcement of a big restructuring. So it's trying to streamline the business and so it said it will be closing studios in Canada and Sweden and also cancel
six games and delay seven other games. So one analyst said that this decision on the game shows that the internal operating model is broken and that management doesn't have a grasp on the development a cycle. And ub Soft has really struggled to remain competitive in the last few years and the games that it has put out haven't really resonated with audiences the way that they needed to. And the company is now hoping that this major restructuring means that it can go back to growth in a
couple of years. But in the meantime, this guidance ca and these delays on games means that there's probably going to.
Be a lot of short term pag 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.