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Shownotes
Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Volvo Car plunged by about 30% to a record low after the Swedish automaker’s chief executive officer said the market for Western-developed cars in China is disappearing fast, prompting it to cut 2,500 more jobs.
- Eni shares rise as much as 3.9% to the highest since 2008 as the energy firm boosted its Enilive pro forma adjusted Ebitda forecast for the full year and said it will return more cash to shareholder
- Shares in Intrum fell to a record low after the Swedish debt collector warned of lower external servicing income this year and said its German business will need a “full restart.”
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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 take a look at some stocks on the move today in Europe.
I'm Rachel Evans with Caroline Hepka and we're joined by Bloomberg's breaking news editor Louise Moon. Louise, thank you for being here. First up, we've been talking a lot about Volvo Car today. Shares seem to be in freefall this morning. What's causing that?
Indeed, they've plunged about 30% in morning trading. So, they had their third quarter results essentially reflecting a huge slump in China. So, deliveries in China fell more than 40%. Obviously, this has been quite an ongoing story. It's the local competition from growing local domestic brands, as well as kind of a spending crisis. So, people potentially spending less Some strong comments from the CEO saying that the market for Western developed cars is disappearing fast, so that the old recipe essentially of making cars in Europe and selling them at a premium in China isn't working anymore. So, they're cutting 2,500 jobs, which is about 6% of their workforce.
It's part of a wider plan to cut costs. And that's on top of 3,000 positions that were announced last year.
So, big job cuts as well.
As I say, this has been facing the industry for a while, a host of issues, and one of the big ones being China. So, we're seeing similar at Volkswagen and BMW. They're trying to become leaner to meet that growing Chinese competition. But it's the question of Do these remedies, will they go far enough to help with these ongoing issues?
Yeah, look, it's notable, isn't it?
The Chinese EV brands are offering really quite affordable cars. And then the big luxury names in Europe are going for these very, very expensive models, you know, out of reach, I imagine, to most ordinary consumers. It's quite interesting. Next up, Italy's oil major Eni. Higher fuel prices helping to bolster cash flows.
Yeah.
So, they have a policy of returning more cash to investors when commodity prices rise above certain thresholds. And that's what they have done today. So, they're returning more cash shareholders. As you say, the war is driven up. Energy prices boosted refining margins. So, they're giving a dividend of about € 1.
3 billion.
And they're also going to increase their share buyback to € 3. 8 billion. That's in 2026. They already raised their buyback twice this year, once in April and once in July.
So, more raises there. This is after the third quarter results.
So, refining margins more than tripled from a year earlier. And oil and gas output also grew as well, as you say, all on the back of the war in the Middle East. So, overall numbers beat estimates and unsurprisingly, shares have climbed about 4%.
And lastly, Intram, the Swedish debt collector. What's happening there?
So, shares have fallen to a record low, down about 28% this morning. Also, their third quarter results and a big focus on their German business. So, they said their German business needs a full restart. They took a 1.5 billion kroner goodwill impairment. So, that's about 151 million US dollars goodwill impairment due to that underperformance in Germany. And They say they also expect that unit to continue to make losses going forward and that there are no significant new servicing contracts in the pipeline there for Germany as well.
It's part of broader pressures on their servicing business that they're experiencing.
And they're trying to speed up cost cuts.
And they said that's probably going to result in more job cuts, though they didn't give numbers.
So, some troubles in Germany impacting the wider group.
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.
