WEBVTT - Delivery Hero's Villain, BP Boost, Compass Up

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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 today here in Europe. I'm Caroline Hepkar with

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<v Speaker 3>Lizzie Burdon, and we're joined by Blomberg reporter clom Mala.

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<v Speaker 3>Good morning, Chloe. Delivery Hero appearing to have found an

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<v Speaker 3>activist villain.

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<v Speaker 1>Yeah, indeed, so Process has sold a five percent stake

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<v Speaker 1>in Delivery Hero to Aspects Management, which is an activist

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<v Speaker 1>investor that's been really trying to get Delivery Hero to

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<v Speaker 1>offload some assets. So the estate cell increases Aspects holding

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<v Speaker 1>to about fourteen percent. So that's quite a big stake,

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<v Speaker 1>and that means a lot of pressure piling on the CEO,

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<v Speaker 1>given the Aspects as previously campaigned to have him removed

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<v Speaker 1>unless he goes ahead and sells units to try and

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<v Speaker 1>boost performance. So Delivery Hero shares have not been doing

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<v Speaker 1>very well for a while now. They've never really recovered

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<v Speaker 1>from the heights that they managed to reach during the pandemic, when,

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<v Speaker 1>of course a lot of people were ordering things at home.

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<v Speaker 1>There's also a company that operates in a lot of countries,

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<v Speaker 1>but sixty five countries, and so Aspects is trying to

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<v Speaker 1>get it to get rid of some of those local

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<v Speaker 1>units and trying to streamline some of those operations. So

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<v Speaker 1>shares have been on a very steady downward trajectory as

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<v Speaker 1>I was saying. But the news of this stake cell,

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<v Speaker 1>which means likely there will see more asset disposals, that's

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<v Speaker 1>really boosting the stock this morning.

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<v Speaker 3>When we look to energy this morningployee, it's one of

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<v Speaker 3>the better performing sectors. Is that just because of the

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<v Speaker 3>oil price or other particular idiosyncratic moves here?

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<v Speaker 1>Yeah, there's a couple of things happening for BP in particular,

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<v Speaker 1>so doing pretty well for a couple of reasons. As

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<v Speaker 1>you mentioned, there's a sector wide move with all of

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<v Speaker 1>those oil majors up today because oil prices are up

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<v Speaker 1>after jumping around rejected each other's peace proposals. That makes

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<v Speaker 1>the ceasefire now look even more fragile than it did before.

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<v Speaker 1>And we also had the CEO of Aramco as saying

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<v Speaker 1>that the market could only begin to normalize in twenty

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<v Speaker 1>twenty seven, so next year, if shipping through the stray

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<v Speaker 1>of horn moves remains curtailed for more than a few

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<v Speaker 1>weeks from now. And then there's also a company specific

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<v Speaker 1>thing happening with BP, where OURBC analysts have upgraded the

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<v Speaker 1>company as saying that the current commodity price environment that

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<v Speaker 1>we have now actually creates a really good opportunity for

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<v Speaker 1>BP to de leverage and restore its financial health and

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<v Speaker 1>financial stability. So that's quite a big vote of confidence

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<v Speaker 1>for BP, given that it's in the middle of this

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<v Speaker 1>really big turnaround.

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<v Speaker 3>Okay, so that on BP obviously subject to all of

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<v Speaker 3>the oil price moves that we've seen recently, including today

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<v Speaker 3>what Brank Food trading around one hundred and four hundred

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<v Speaker 3>and five dollars about lastly, let's think about Compass, pointing

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<v Speaker 3>investors in a positive diffection.

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<v Speaker 1>Yeah, so Compass is a catering company is doing very,

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<v Speaker 1>really well. So it's raised this profit guidance this morning,

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<v Speaker 1>and that is after it's first half results actually hit

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<v Speaker 1>a record. So that was driven by increased demand for

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<v Speaker 1>outsourced catering and cleaning services across a range of industries.

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<v Speaker 1>So profit actually tripled from twenty twenty one to twenty

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<v Speaker 1>twenty five, and there's even more growth ahead for the companies.

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<v Speaker 1>There's a real momentum in outsourcing for offices, bars, restaurants, cafes,

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<v Speaker 1>et cetera. And the CEO said that was because companies

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<v Speaker 1>were facing increasing complexity like food regulations, like allergens as well,

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<v Speaker 1>and they also really wanted data led insights, and so

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<v Speaker 1>that means that lends itself really well to outsourcing some

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<v Speaker 1>services rather than doing it on your own. And there

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<v Speaker 1>had been some concern that perhaps we'd see some impacts

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<v Speaker 1>from you know, a lot of layoffs and AI displacement,

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<v Speaker 1>et cetera, in terms of demand from offices, but it

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<v Speaker 1>seems that really hasn't been the case, and so Compass

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<v Speaker 1>is doing really really well with very strong performance, and

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<v Speaker 1>that's really driving the shares as well.

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<v Speaker 2>This morning the Stock Movers Report from Bloomberg Radio. Check

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