Hermes Sinks, Barclays 3Q, Verisure Surges

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0:08 The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

0:16 Let's take a look now at some stocks on the move today in Europe. I'm Rachel Evans with Caroline Hepka, and we're joined by Bloomberg reporter Joshua Gaunt-Warner. Joshua, big day for earnings today, but let's start with luxury and Hermes. Yeah.

0:28 So, there's been more bad news for the luxury space.

0:31 French giant Hermes failed to deliver any growth in its biggest market of Asia. And that's showing that, you know, the Birkin bag maker isn't immune to the spending curves that we're seeing hitting Chinese shoppers. If we remember last week, we saw rival LVMH post disappointing sales out the region, again, driven by China. So, this is reconfirming that trend. James said that, you know, a property crisis, struggling financial markets and a recent move to tax offshore wealth are all hurting the richest clientele in the country. And the region is detracting from growth elsewhere.

1:05 Overall sales were up, although below expectations.

1:09 James is also dealing with the aftermath of the weekend riots in France. Its store in Marseille was looted and that won't reopen anytime soon. Shares were down as much as 9% this morning. It briefly hit a three-year low. And shares are now down over 40% since the start of the year.

1:26 Yeah.

1:26 Ouch. Okay. So, that from Hermes and the luxury group in France. What about Barclays, the first of the big UK banks to report and also reporting strong equities revenue but job cuts?

1:42 Yes.

1:42 So, again, a flurry of corporate earnings this morning. But Barclays has missed expectations basically across the board. You know, we saw fixed income and currency trading down about 19% compared to the year before. And actually, the bank's bond traders suffered the biggest slump on Wall Street this quarter.

2:01 And that took the shine off the better performance from.

2:03 The equities desk.

2:05 But, yeah, the attention today is on some job cuts, about 5,000 jobs are to go. That's about 5% of Barclays' headcount. And that's as it adopts AI across the bank. It's starting to see that technology drive some efficiencies. It's a step up considering it cut about 1,000 jobs in the first six months of the year. The bulk of the new cuts are coming from support functions such as developers. So, yeah, big job cuts there from Barclays this morning.

2:32 And then we've been looking at Verishaw, which is up on rumors of a takeover. What's been alarming or waking traders up there?

2:39 Yes.

2:40 So, outside of earnings, Verishaw is one of the biggest movers. It was up as much as 17% in initial trade. It's pulled back a bit since then. The Financial Times has reported that CVC Capital Partners is considering making a bid for the security firm with a plan to delist it and take it private. This is notable because it comes just a year after private equity firm Hellman & Friedman took the company public in Stockholm.

3:04 Barclays said the news is not.

3:06 A surprise considering how much Verishaw has struggled as a public company. Shares are down about 22% compared to the IPO price even after today's jump. And it's been one of several listings made by private equity groups that have failed to take off or impress in recent years. But, yeah, it's important to note, you know, this interest from CVC is thought to be an early stage. There's no certainty of a deal at this stage. So, investors will be eagerly watching for any potential developments there.

3:35 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.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.