WEBVTT - Delivery Hero Rallies, Easyjet Rises, Whitbread Drops 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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<v Speaker 3>the move in your up today. I'm Caroline Hepka with

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<v Speaker 3>Tom McKenzie, I joined by Blomberg Report to Chloe Malay.

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<v Speaker 3>Good morning, Chloe. So it's Friday. Let's think about who's

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<v Speaker 3>under pressure then? Today Delivery Hero. They are rallying though, why.

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<v Speaker 1>Yeah, So they are under pressure from several big shareholders

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<v Speaker 1>to potentially consider a cell of the business, or at

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<v Speaker 1>least parts of the business. So this is coming at

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<v Speaker 1>a time of growing consolidation within that food delivery industry,

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<v Speaker 1>and it seems that investors in Delivery here are quite

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<v Speaker 1>keen for the company to get in on that. The

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<v Speaker 1>shares of that company have been on a big downward

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<v Speaker 1>trajectory over the last few months. It's down nearly ninety

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<v Speaker 1>percent from a peak in twenty twenty one. So this

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<v Speaker 1>explains the first stration from shareholders that feel like the

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<v Speaker 1>company isn't really making progress in streamlining its operations and

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<v Speaker 1>trying to boost that performance. So Delivery Hero did try

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<v Speaker 1>to sell its Taiwan unit to Uber, but that wasn't successful,

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<v Speaker 1>So now investors are calling for a broader, perhaps more ambitious,

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<v Speaker 1>strategic review of the entire portfolio. There's companies like Uber

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<v Speaker 1>Metron in China or Grab in Singapore that could be

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<v Speaker 1>potentially interested. So all of this m and A activity

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<v Speaker 1>around deliver here is definitely something that we need to

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<v Speaker 1>watch out for in the next few months.

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<v Speaker 3>And an upgrade Chlory for easy Jets marketing action.

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<v Speaker 1>Yeah, well it was well received by the markets. It

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<v Speaker 1>was upgraded at Bernstein. The analyst said that EasyJet was

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<v Speaker 1>a really cheap play for investors to benefit from the

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<v Speaker 1>supply constraints in the airline industry, essentially because those constraints

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<v Speaker 1>boost pricing, so that's a tailwind. And then the analyst

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<v Speaker 1>also said that some of the headwinds faced by the company,

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<v Speaker 1>including a rising expenses and reduce cash flow, are mostly

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<v Speaker 1>priced in. They all said that easy Jet is currently

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<v Speaker 1>trading at a very steep discount to Ryan Are, so

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<v Speaker 1>essentially time to kind of get in on there. It's

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<v Speaker 1>not all rosy for easy Jay analysts to have flaged

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<v Speaker 1>that twenty twenty six will be perhaps quite tough on

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<v Speaker 1>that budget airline after it reported earnings earlier this week.

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<v Speaker 1>Summer is going to be very key because winter looks

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<v Speaker 1>quite weak at the moment, but there's also very little

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<v Speaker 1>visibility on summer so far. There's also ongoing air traffic

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<v Speaker 1>control disruption and then also the hit from having to

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<v Speaker 1>hold flights in the Middle East due to conflict. So

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<v Speaker 1>definitely a few challenges ahead for that company in the

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<v Speaker 1>next year.

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<v Speaker 3>Okay, that's interesting. On what about Whitbread.

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<v Speaker 1>Today, Yeah, so the that's the owner of Premiere in

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<v Speaker 1>of course it was double downgraded at Bernstein as well,

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<v Speaker 1>and that is because of the budget. So analysts have

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<v Speaker 1>said that the government's adjustment of business rates the business

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<v Speaker 1>rates system is creating a material hit to profitability for Witbread.

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<v Speaker 1>So the Yuka government announced that the retail, hospitality leisure

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<v Speaker 1>businesses with property values below five hundred one thousand pounds

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<v Speaker 1>will enjoy permanently lower business rates, but that is funded

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<v Speaker 1>by higher rates on larger properties. And the analysts have

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<v Speaker 1>done a little analysis on this and they've found that

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<v Speaker 1>a sample of sixty seven premier in hotels across England,

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<v Speaker 1>most of those actually exceed at that five hundred K

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<v Speaker 1>relief level, and so they met an impact on profit

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<v Speaker 1>of up to thirty million pounds in a twenty twenty

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<v Speaker 1>six twenty seven and then ninety million in twenty seven

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<v Speaker 1>twenty twenty eight. So that essentially puts that company's efficiency

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<v Speaker 1>plan at risk for the next few years and creates

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<v Speaker 1>a really big hit to prompt.

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