Stock Movers Nestle Falls, British American Tobacco Slides, LVMH Rises
4 snips
Sep 2, 2025 Nestlé faces a leadership crisis as CEO Laurent Freixe is ousted over an undisclosed scandal, resulting in a significant drop in shares. Meanwhile, British American Tobacco's profits expectations are deemed overly optimistic, causing a stock downgrade. In contrast, LVMH sees a bright outlook after an upgrade from HSBC, showcasing the luxury market's resilience amid ongoing challenges. These contrasting stories highlight the unpredictable nature of corporate fortunes.
AI Snips
Chapters
Transcript
Episode notes
Leadership Shakeup At Nestlé
- Nestlé dismissed CEO Laurent Freixe after an undisclosed workplace affair with a subordinate, creating leadership turbulence.
- Philip Novratil, head of Nespresso, replaces him and could bring stability and growth potential.
Instability Magnifies Nestlé's Volume Woes
- Nestlé already faced weak volumes and management churn, making the CEO dismissal an added challenge for recovery.
- A younger CEO with potential long tenure could help restore stability and investor confidence.
Doubts Over Tobacco's New-Product Profits
- RBC downgraded British American Tobacco, saying profit expectations for new-category products are 'seriously overblown.'
- Competition in vapes and BAT's small position in heated tobacco limit near-term profitability.