1 00:00:02,520 --> 00:00:09,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,840 --> 00:00:19,520 Speaker 3: Let's take a look at some of the stocks on 5 00:00:19,560 --> 00:00:22,440 Speaker 3: the move today in Europe on Caroline Hepka with Tom mackenzie, 6 00:00:22,480 --> 00:00:26,160 Speaker 3: and we're joined by Bloomberg's Equities Report to Joe Eastern Morning, Joe. 7 00:00:26,320 --> 00:00:29,760 Speaker 3: UK markets were on holiday yesterday. They've brought back into 8 00:00:29,800 --> 00:00:34,240 Speaker 3: action though today with news of a potential Delivery acquisition. 9 00:00:34,360 --> 00:00:35,839 Speaker 3: How are markets reacting to that? 10 00:00:36,360 --> 00:00:39,360 Speaker 1: Yeah, so this is news that dow Dash in the 11 00:00:39,520 --> 00:00:43,479 Speaker 1: US is agreeing to buy the UK based company Delivery. 12 00:00:43,560 --> 00:00:47,199 Speaker 1: This is worth around two point nine billion pounds. Now, 13 00:00:47,200 --> 00:00:49,440 Speaker 1: we didn't get a speculation of that deal, or at 14 00:00:49,520 --> 00:00:51,919 Speaker 1: least news that they were in preliminary talks a couple 15 00:00:51,960 --> 00:00:55,040 Speaker 1: of weeks ago. The price is one hundred and eighty pence. 16 00:00:55,160 --> 00:00:59,360 Speaker 1: It is a twenty nine percent premium since before we 17 00:00:59,400 --> 00:01:03,920 Speaker 1: got the initial news this around a week ago. However, 18 00:01:04,240 --> 00:01:06,680 Speaker 1: this stock was worth a lot more back in the 19 00:01:06,760 --> 00:01:09,319 Speaker 1: COVID days when everyone was at home spending all their 20 00:01:09,360 --> 00:01:11,640 Speaker 1: money on takeaways, not going out of the house, not 21 00:01:11,680 --> 00:01:14,840 Speaker 1: going to restaurants. So in fact, some investors might not 22 00:01:14,959 --> 00:01:16,840 Speaker 1: be too happy with this if they've been in for 23 00:01:16,880 --> 00:01:19,480 Speaker 1: the longer term, but it is the latest bit of 24 00:01:19,520 --> 00:01:23,240 Speaker 1: news in this sector. We saw process agreeing by just 25 00:01:23,319 --> 00:01:26,759 Speaker 1: the takeaway previously after valuations come down. So I kind 26 00:01:26,760 --> 00:01:29,280 Speaker 1: of think that although it's deed some premium recently, if 27 00:01:29,280 --> 00:01:31,680 Speaker 1: you're a longer term investor in delivery one hundred and 28 00:01:31,720 --> 00:01:34,240 Speaker 1: eighty pence, it isn't the best deal. 29 00:01:35,360 --> 00:01:38,520 Speaker 4: From delivery companies to fashion, which I know is really 30 00:01:38,520 --> 00:01:43,320 Speaker 4: the sweet spot for Joe Easton. Hugo Boss seeing some 31 00:01:43,480 --> 00:01:46,160 Speaker 4: uplift this morning. We have some details the earnings. The 32 00:01:46,200 --> 00:01:48,280 Speaker 4: stock is up what six percent? Is this a David 33 00:01:48,320 --> 00:01:50,480 Speaker 4: Beckham effect? Did you see the underwear campaign Johns? 34 00:01:50,720 --> 00:01:52,920 Speaker 1: I did. Maybe it's a Joe Easton effect because I've 35 00:01:52,960 --> 00:01:55,920 Speaker 1: actually been building a bit of Hugo Boss collection recently, 36 00:01:56,160 --> 00:01:59,240 Speaker 1: don't I don't want it all likely. Yeah, I don't 37 00:01:59,240 --> 00:02:01,800 Speaker 1: want to give given too much credit, but they've had 38 00:02:01,800 --> 00:02:04,920 Speaker 1: some good deals recently. And actually I've been reading an 39 00:02:04,920 --> 00:02:07,920 Speaker 1: analyst report out of City today and they're saying that 40 00:02:07,960 --> 00:02:10,519 Speaker 1: the reason that Hugo Boss's sales have done well is 41 00:02:10,520 --> 00:02:13,600 Speaker 1: because they've actually been doing more discounting, so potentially this 42 00:02:13,720 --> 00:02:16,040 Speaker 1: doesn't mean that demand is strong. They've actually just been 43 00:02:16,160 --> 00:02:19,280 Speaker 1: giving some good offers on some of their products and 44 00:02:19,320 --> 00:02:21,600 Speaker 1: has been tighting people in not just me, other people 45 00:02:21,639 --> 00:02:24,600 Speaker 1: as well, and therefore that has boosted the sales. So 46 00:02:24,639 --> 00:02:27,280 Speaker 1: the sales have rebounded a bit in the latest court 47 00:02:27,360 --> 00:02:29,440 Speaker 1: so the company said today it's been a bit of 48 00:02:29,440 --> 00:02:32,320 Speaker 1: an uptick and the stock was gaining as much as 49 00:02:32,400 --> 00:02:34,920 Speaker 1: eight percent. I actually extended to around ten percent now 50 00:02:35,040 --> 00:02:37,480 Speaker 1: up around five percent, one of the best forms in Germany, 51 00:02:37,720 --> 00:02:39,400 Speaker 1: following strong numbers from Hugo. 52 00:02:39,160 --> 00:02:44,120 Speaker 3: Boss Okay, and finally Bloomberg reporting that Shell's exploring a 53 00:02:44,120 --> 00:02:47,440 Speaker 3: potential takeover of rival BP over the weekend. How the 54 00:02:47,480 --> 00:02:48,800 Speaker 3: market's thinking about that now? 55 00:02:48,880 --> 00:02:51,960 Speaker 1: Yes, so this is the interesting story from our deal's team. 56 00:02:51,960 --> 00:02:55,400 Speaker 1: As you say, Shell looking at BP. The kind of 57 00:02:55,480 --> 00:02:59,440 Speaker 1: small print to the story is that Shell wouldn't be 58 00:02:59,480 --> 00:03:03,160 Speaker 1: looking to pursue a deal unless BP's share price comes 59 00:03:03,240 --> 00:03:05,720 Speaker 1: down even more and the oil price comes down even more. 60 00:03:05,760 --> 00:03:08,000 Speaker 1: So it's kind of just saying they are having a 61 00:03:08,040 --> 00:03:11,119 Speaker 1: preliminary look at this and if the deal becomes more 62 00:03:11,120 --> 00:03:13,800 Speaker 1: attractive in the future, then they would look to go in. 63 00:03:13,880 --> 00:03:16,239 Speaker 1: But It is a really good story from our deal's 64 00:03:16,240 --> 00:03:19,519 Speaker 1: team actually lifting this stock. It was up around three 65 00:03:19,760 --> 00:03:22,360 Speaker 1: percent to four percent the opening of training is coming 66 00:03:22,400 --> 00:03:24,440 Speaker 1: back down a bit at the moment, We're up around 67 00:03:24,440 --> 00:03:27,520 Speaker 1: one percent for that stock. Shell stock meanwhile, going the 68 00:03:27,560 --> 00:03:30,440 Speaker 1: other way, that was down almost two percent earlier in 69 00:03:30,480 --> 00:03:34,119 Speaker 1: this session. So potentially the market is reacting in terms 70 00:03:34,160 --> 00:03:37,040 Speaker 1: of thinking this is something that could go and we 71 00:03:37,160 --> 00:03:40,760 Speaker 1: have seen considerable unperformance for BP versus Shell over the 72 00:03:40,800 --> 00:03:43,640 Speaker 1: past couple of years. Potentially the company is looking to 73 00:03:43,840 --> 00:03:46,280 Speaker 1: make a bit of a headway on that and therefore 74 00:03:46,320 --> 00:03:48,160 Speaker 1: the market reading into that following the story from the 75 00:03:48,160 --> 00:03:48,640 Speaker 1: deal's team. 76 00:03:48,760 --> 00:03:51,119 Speaker 4: Yeah, the market's cap of Shell is about what three 77 00:03:51,160 --> 00:03:53,840 Speaker 4: times that of BP. The elit investor, one of the 78 00:03:53,840 --> 00:03:57,320 Speaker 4: activist investors in BP, has an approximately five percent stakeies 79 00:03:57,560 --> 00:04:00,800 Speaker 4: and they have been pushing for sistructure. 80 00:04:00,840 --> 00:04:03,680 Speaker 1: Yeah, they used to really trade together those two stocks 81 00:04:03,680 --> 00:04:07,000 Speaker 1: when we saw a divergence where Shell just continued to 82 00:04:07,040 --> 00:04:09,120 Speaker 1: rally and VP came down. So it's kind of. 83 00:04:09,400 --> 00:04:12,280 Speaker 3: Yeah, not a great story for the London market is 84 00:04:12,400 --> 00:04:14,120 Speaker 3: even though this is going to if it were to 85 00:04:14,160 --> 00:04:16,280 Speaker 3: go ahead, it would end up being like the biggest 86 00:04:16,400 --> 00:04:18,760 Speaker 3: oil deal ever Yeah. 87 00:04:18,640 --> 00:04:20,760 Speaker 1: I think it would be the biggest in terms of 88 00:04:20,760 --> 00:04:22,120 Speaker 1: that sector anyway, for sure. 89 00:04:23,360 --> 00:04:27,480 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 90 00:04:27,560 --> 00:04:30,320 Speaker 2: us throughout the day for the latest roundup of companies 91 00:04:30,360 --> 00:04:33,400 Speaker 2: making news on Wall Street and for the latest market 92 00:04:33,440 --> 00:04:37,799 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 93 00:04:37,839 --> 00:04:41,080 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 94 00:04:41,160 --> 00:04:42,640 Speaker 2: the Bloomberg Business app.