WEBVTT - Wetherspoon Plunges, Santander Dips, Iberdrola Down

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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 stocks on the move today.

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<v Speaker 3>And you know, I'm James Walcot with Caroline Hepka, and

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<v Speaker 3>we are joined by Bloomberg's Breaking you said, Louise Moon.

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<v Speaker 3>Louise starting in the pub. Unusually at this point in

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<v Speaker 3>the week, Weatherspoon's issued its fourth profit warning this year.

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<v Speaker 3>What's going on?

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<v Speaker 1>Yeah, So it said that it's full year profit will

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<v Speaker 1>likely be below what is expected by the market. It's

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<v Speaker 1>saying that this fourth quarter sales rose about four percent.

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<v Speaker 1>That was less than expected. But essentially the main issue

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<v Speaker 1>is that higher costs are weighing on their business. So

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<v Speaker 1>it noted in particular labor, food, energy, business rates, all

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<v Speaker 1>those costs rising and weighing on things. So shares fell

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<v Speaker 1>twelve percent. As you said, it's their latest profit warning.

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<v Speaker 1>They've already issued three down to as I say, those

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<v Speaker 1>high costs as well as we consumer confidence and obviously

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<v Speaker 1>all the head ones that the industry is seeing. Interesting

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<v Speaker 1>that in the statement they didn't mention the world Cup,

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<v Speaker 1>given that a lot of their peers have mentioned the

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<v Speaker 1>World Cup is really boosting sales. We did. Bloomberg did

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<v Speaker 1>then have an interview with the chair Tim Martin. He

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<v Speaker 1>said they did get a boost from the World Cup,

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<v Speaker 1>but actually the timings of the matches favored home consumption

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<v Speaker 1>and he again really highlighted those rising costs. So and

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<v Speaker 1>this is saying that given the heat wave and the

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<v Speaker 1>World Cup all expected to kind of boost sales for pubs.

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<v Speaker 1>The profit warning another profit warning shows really highlights the

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<v Speaker 1>pressures on the sector. Okay, so that from Wetherspoon's Santander

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<v Speaker 1>beating out expectations but shares down, why was that? Indeed, Yes,

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<v Speaker 1>the SCD quarter results profits B estimates reaffirm their targets

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<v Speaker 1>both short and medium term. Essentially on the positive side,

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<v Speaker 1>they're being boosted by their recent takeover of TSB that

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<v Speaker 1>completed at the end of April. It's added four million

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<v Speaker 1>customers and it's all part of Santander's kind of wider

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<v Speaker 1>acceleration of adding customers spanning outwards also in the US

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<v Speaker 1>as well as the UK. But as you say, shares sliding.

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<v Speaker 1>Actually the worst performer on the sock six hundred Bank Index.

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<v Speaker 1>They had climbed over sixty five percent this year, but

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<v Speaker 1>sliding this morning. It wasn't enough to excite analysts. They're

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<v Speaker 1>saying it's unexciting results and they're expecting limited changes to expectations.

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<v Speaker 1>So despite those positive those positive elements from their second quarter,

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<v Speaker 1>not exciting enough for analysts and shares sliding on the

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<v Speaker 1>back of that.

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<v Speaker 3>You say, not exciting enough. I want to hear all

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<v Speaker 3>about what I'm being told. A robust networks businesses over

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<v Speaker 3>a patrol. Well let me tell you so.

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<v Speaker 1>Yeah, every Joylist's fantasy utility had their first quarter first

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<v Speaker 1>half sorry results and beat estimates. So essentially they're being

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<v Speaker 1>boosted by their global reach. They've got their home market,

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<v Speaker 1>they're also big in the UK. They've been ramping up

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<v Speaker 1>investment and growth in Brazil and in the US. But

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<v Speaker 1>despite that beat, they didn't raise guidance. That's one thing

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<v Speaker 1>that analysts noting has not been positive. On the other hand, sorry,

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<v Speaker 1>adding to that, they also another news bought a steak

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<v Speaker 1>in Finland's main electricity network. That's for two billion euros.

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<v Speaker 1>So entering new geography fits with a strategy. Positive, but

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<v Speaker 1>unless saying that it's a full what they're calling a

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<v Speaker 1>full price, So some mixed news there that you've got

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<v Speaker 1>the beat. You've got that buying of the steak in

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<v Speaker 1>the Finland's electricity network, but didn't raise guidance and quite

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<v Speaker 1>a hefty price, Sexo shares falling in Madrid to for

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<v Speaker 1>about three percent for the Spanish utilisee.

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