WEBVTT - WHSmith and Workspace's New Bosses, BMW Plunges

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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>So let's take a look at sam stocks on the

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<v Speaker 3>mod today in Europe. I'm Jacksoners with Stephen Carroll. We

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<v Speaker 3>are joined by Bloomberg's Breaking news editor Louise Moon. Morning,

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<v Speaker 3>Louise wh Smith finding out if you say the words

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<v Speaker 3>Leo Quinn, you will share price grows up.

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<v Speaker 1>Indeed, yes, So they've named a new chairman, Leo Quinn.

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<v Speaker 1>That's from April. As you say, shares have been rallying

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<v Speaker 1>this morning on the back of that. Last time I

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<v Speaker 1>checked up over about nine percent. So Leo Quinn was

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<v Speaker 1>most recently CEO of Balfour Beatti, the construction firm in

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<v Speaker 1>the UK. And the reason that shares are really rallying

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<v Speaker 1>on his name on this new appointment is the woes

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<v Speaker 1>that wh Smith have been through since about August. They

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<v Speaker 1>announced a accounting eraor in their North American unit that

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<v Speaker 1>triggered a stock slump. Also their CEO to resign and

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<v Speaker 1>they're currently being investivated by the financial watchdog. So in

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<v Speaker 1>the release, the company noted his history of what they

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<v Speaker 1>call significant business transformation, so he's obviously the expectation there

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<v Speaker 1>is to return wh Smith to stability and deliver on

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<v Speaker 1>their growth strategy, their longer term growth strategy. So as

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<v Speaker 1>I say, shares arising on the back of that, they

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<v Speaker 1>were leading the thirty two fifty, but if you do

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<v Speaker 1>look back at a more kind of historical level, they're

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<v Speaker 1>still way off their level prior to that stock stump

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<v Speaker 1>from August, so there's a long way to go. So

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<v Speaker 1>they'll be counting on leo Quin to deliver that.

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<v Speaker 2>Okay, So that's w H. Smith turning them to Workspace

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<v Speaker 2>as well.

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<v Speaker 3>Another CEO change.

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<v Speaker 1>Yes, so Workspace obviously the flexible workspace landlord. They have

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<v Speaker 1>a new CEO, so their outgoing CEO, Lawrence Hutchings, he

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<v Speaker 1>had just over a year in the role, so somewhat

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<v Speaker 1>of a surprise announcement this morning given that time period,

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<v Speaker 1>but it comes after a very turbulent period for Workspace.

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<v Speaker 1>Their shares if you look back over the past year

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<v Speaker 1>or so, they've been very rocky down about ten over

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<v Speaker 1>the past year, and that's their second straight drop on

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<v Speaker 1>an annual basis. So they've got a new CEO Charlie Green.

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<v Speaker 1>He's called he's for the founder of a company that's

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<v Speaker 1>now known as Fora, which obviously also the Flexible Workspace Group.

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<v Speaker 1>It also follows a new CFO just before Christmas. And

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<v Speaker 1>this is all coming in the context of Workspace warning

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<v Speaker 1>last year of rising vacancies that would dent profits. Comes

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<v Speaker 1>on the back of a lot of smaller businesses struggling

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<v Speaker 1>with the wider kind of economic situation. They've been facing

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<v Speaker 1>calls from Access investor Saba Capital to wind down the company.

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<v Speaker 1>So these changes are being seen as a bit of

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<v Speaker 1>a signal that the board isn't prepared to do that,

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<v Speaker 1>and it's a bit more of an operational reset with

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<v Speaker 1>these new appointments, particularly with Green. This morning and blue

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<v Speaker 1>Og Intelligence had a note saying that this full cell

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<v Speaker 1>is kind of unlikely to achieve or if it were

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<v Speaker 1>to happen, would be unlikely to achieve good prices with

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<v Speaker 1>risk desjoy the value of company. So yeah, being seen

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<v Speaker 1>as a bit of a reset there for Workspace.

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<v Speaker 3>And BMW one of many automakers this morning wishing then

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<v Speaker 3>that they had never heard the word tariff.

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<v Speaker 1>Indeed, yeah, the big news obviously today as you have

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<v Speaker 1>been speaking about of Trump's threat to hike tariffs, isn't

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<v Speaker 1>it if a deal isn't reached over Greenland really hitting

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<v Speaker 1>automakers across Europe. Essentially the plan is to all the

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<v Speaker 1>plan would be to add additional duties of ten percent

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<v Speaker 1>on imports, and this is really hitting You see BMW

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<v Speaker 1>down about seven percent, Mercedes Volkswagen, a lot of these

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<v Speaker 1>German manufacturers that really rely on the US as a

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<v Speaker 1>big source of sales of profits and they're already under

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<v Speaker 1>massive pressure that they've got tariffs already of fifteen percent.

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<v Speaker 1>On top of that, there's slumping sales in China, you know,

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<v Speaker 1>slow the expected transition to electric vehicles. They're facing a

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<v Speaker 1>lot of headwinds and this, if it came through, would be,

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<v Speaker 1>you know, the latest headwinds. So there was an interesting

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<v Speaker 1>statistic from BI predicting that these latest tariffs, if they

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<v Speaker 1>were to come through, would hit German, UK and Swedish

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<v Speaker 1>carmakers their underlying earnings by about three billion euros on

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<v Speaker 1>an annualized basis, So it would be a big hit

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<v Speaker 1>to them. And we're seeing this across the board. So

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<v Speaker 1>Silantis also falling in Milan, as the martin In the UK,

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<v Speaker 1>TATO mootism, and biosurreal global impact on MACFA.

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