Peugeot, Volkswagen Surprise Euro Auto Market

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July 31 (Bloomberg) -- Bloomberg's Ryan Chilcote examines results from Peugeot and Volkswagen as both automakers topped expectations in spite of continued problems in the European car market. He speaks on Bloomberg Television's "The Pulse."

Peugeot shares jump the most in europe.

The chief executive sees the first sign of recovery.

Schneider electric makes its biggest takeover in years.

It is buying invents this -- invensys.

And rocking global -- the global potash market.

We asked the chief executive about output.

Welcome to "the pulse," live from bloomberg european headquarters in london.

Guy johnson is off today.

He is actually driving a lamborghini.

We will have that exclusive interview next week.

In the meantime, i have george magnus, senior adviser to ubs.

Another big day for earnings reports.

Jon ferro has highlights from the osseo -- from diageo.

First, ryan chilcote is here to run you through peugeot.

Let's kick it off with peugeot.

Shares rising significantly.

The biggest rising in more than a year.

Note to the ceo -- if you are going to lose money, lose less than expected.

That is exactly what happened.

They lost 65 million euros in the first half of the year.

Investors thought they might lose as much as 300 million.

Very please with that news.

Analysts say the company is doing a good job reining in costs.

They are even going to close a factory in france.

You do not need me to tell you how difficult that is.

Today, we heard the ceo say he is seeing the first signs of recovery.

Late yesterday, we had the news that they got eu approval for the french government to guarantee 7 billion euros worth of guarantees for their bonds.

Share price up the most in a year.

It was up as much as nine percent earlier in the day.

We also had results from volkswagen yesterday.

How did they compare?

Very different situation.

Volkswagen is the largest carmaker in europe as opposed to peugeot, the second-largest.

They had earnings after the close.

Surprisingly market with those earnings a day early and surprising them with results themselves.

They pulled in about $4.5 billion in profit, 400 million dollars more than investors thought.

A bit of a surprise, considering in the first quarter, vw reported a 25% decline in profit from a year on.

The situation in europe is not good.

Car sales at a 20-year low.

The lesson is they have the right geographic would print.

They are big in china, brazil, russia, and the u.s. that has helped them, particularly in the luxury side of things.

They have a huge stable of cars that includes porsche and audi.

Audi has been doing very well.

Maybe a lesson for peugeot.

Try to make less of your revenue in europe, where nobody is buying cars, and go for the higher end of the market as well.

And make more desirable cars.

From the roads to the skies.

A 23% profit gain but they announced they are taking on the airbus name for the entire group.

What is in a name?

Rob joins us to explain.

What is the significance of this?

Everybody understands what eads stands for.

You say that but you are based in europe and you are familiar with the name, something that was created a decade ago.

The airbus name has a longer heritage.

The view at eads was, internationally, the airbus name has far more weight and far more cachet.

Easdds is european.

As they target businesses overseas, they did not want that as the first thing people think of.

They are focusing more on civil aircraft.


Airbus has always been the bulk of the business.

The previous ceo , could you balance that with defense and space?

This text has been automatically generated. It may not be 100% accurate.


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