WEBVTT - BMW Stalls, Hapag-Lloyd Up, AO World 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

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<v Speaker 3>today in euro banking. So all cot with Karen Hepka,

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<v Speaker 3>and we are joined by Bloomberg's Breaking News Out to

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<v Speaker 3>the Louise Moon. Louise BMW are stalling again today in

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<v Speaker 3>the markets.

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<v Speaker 1>Why so they have issued essentially quite a surprising downgrade

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<v Speaker 1>and a big one at that as well. There's just

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<v Speaker 1>one month into them having a new CEO to kind

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<v Speaker 1>of demonstrate demonstrates the huge task at hand for him.

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<v Speaker 1>So margins, they have forecasts as low as one percent

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<v Speaker 1>from six percent, and they're also planning additional cost savings

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<v Speaker 1>beyond those that they have already announced. So details of

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<v Speaker 1>those cost savings unclear. So there's obviously a question there

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<v Speaker 1>as to whether that could result in job cups. But

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<v Speaker 1>as I say, details unclear, but additional cost savings. Expect

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<v Speaker 1>all of this to weigh on their business in the

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<v Speaker 1>second half. And essentially they're saying that the main reasons

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<v Speaker 1>for this are one the impact of the Middle East

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<v Speaker 1>but two weak China demand. China is its biggest market,

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<v Speaker 1>and there's a whole host of reasons. You know, there's

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<v Speaker 1>the changing Chinese consumer. There's also the rise of and

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<v Speaker 1>the ongoing long kind of long term rise of local brands.

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<v Speaker 1>So yeah, wee could China demand for BMW? There showing

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<v Speaker 1>this change in forecast is showing the huge toll both

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<v Speaker 1>of those elements are taking on BMW had been viewed

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<v Speaker 1>as better position than rivals, but this latest data or

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<v Speaker 1>statement this morning essentially saying, essentially showing that that residence

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<v Speaker 1>hasn't been enough to shield it from what has been

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<v Speaker 1>quite a long ongoing shift in the European autos industry.

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<v Speaker 4>So shares lumped as much as twelve percent analysts.

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<v Speaker 1>One analyst called it a wake up call for the

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<v Speaker 1>auto industry. So that on BMW, what about the shipping

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<v Speaker 1>giant HAPAG Lloyd rising there looks like Deale's news.

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<v Speaker 4>Yeah, well potential deal's news.

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<v Speaker 1>So shares that was much a six point one percent

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<v Speaker 1>and then they paired that slightly in morning trading. There's

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<v Speaker 1>been a report that the Italian billionaire owner of Mediterranean

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<v Speaker 1>shipping company he's inquired with shareholders about buying a stake

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<v Speaker 1>in hapag Lloyd, so all very potential and any potential

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<v Speaker 1>approach if he does that would face obstacles. There's two

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<v Speaker 1>other anchor investors they're buying bound by an agreement that

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<v Speaker 1>has recently been extended through to twenty thirty, so a

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<v Speaker 1>few hurdles to get through if that approach were to happen,

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<v Speaker 1>but it is boosting shares.

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<v Speaker 4>Shares have been largely flat since April.

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<v Speaker 1>They rose quite significantly at the start of the ararmore

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<v Speaker 1>and then they declined, so it's giving a bit of

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<v Speaker 1>impetus behind those shares.

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<v Speaker 3>This morning, an AO World apparently giving the UK government

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<v Speaker 3>the whole music treatment tell us more well.

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<v Speaker 1>So, yeah, this is the midcaps makeap stock the electronics

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<v Speaker 1>retailer bit of a a mixed one. So initially looks

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<v Speaker 1>quite positive hitting what they're saying as record profits. They

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<v Speaker 1>sold far more TVs because of the World Cup, so

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<v Speaker 1>looks quite positive at first glance, but actually shares falling

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<v Speaker 1>as much as four point two percent this morning. Part

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<v Speaker 1>of that could be profit taking, they have been trading

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<v Speaker 1>at higher levels recently, but it's also potentially an example

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<v Speaker 1>of kind of the real world impact of all this

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<v Speaker 1>energy price shock of everything that is going on and

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<v Speaker 1>the impact on the consumer, they flagged and uncertain in

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<v Speaker 1>their words backdrop in its in their kind of look

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<v Speaker 1>ahead section of their statement this morning, and also flagged

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<v Speaker 1>rising input costs. It's the type of company that's very

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<v Speaker 1>exposed to consumer sentiment.

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<v Speaker 4>Obviously, it sells a lot of big ticket.

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<v Speaker 1>Items, so any changing in consumer behavior will really impact

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<v Speaker 1>AO world. So despite the good numbers that they cited

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<v Speaker 1>this morning, looking ahead, there's potentially a lot of untestiny

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<v Speaker 1>and that's impacting shares in morning trading.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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