WEBVTT - HSBC Down, Sainsbury's Dips, Inditex Soars

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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 tickle up now at some stocks on the move

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<v Speaker 3>today in Europe. I'm Stephen Carroll and I'm joined by

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<v Speaker 3>Bloomberg's Breaking News editor Louise Moon.

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<v Speaker 4>Luise, good morning.

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<v Speaker 3>Let's start with HSBC, then Europe's largest bank, appointing Brendan

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<v Speaker 3>Nelson as its next chair to replace Mark Tucker.

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<v Speaker 1>Indeed, yeah, so Brendan Nelson. He's been in an interim

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<v Speaker 1>position since October. That's after, as you say, Mark Tucker left.

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<v Speaker 1>He he had been chaired four much of the last decade.

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<v Speaker 1>He was very hands on and he left over the

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<v Speaker 1>summer or the end of summer to be the chair

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<v Speaker 1>of AIA, the insurer. So I've chosen Brendan Nelson to

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<v Speaker 1>replace him. As I say, he's been in the interim position.

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<v Speaker 1>He joined the board in twenty twenty three, but aside

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<v Speaker 1>from that he spent most of his career at KPMG.

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<v Speaker 1>So in terms of the UK, he's well known in

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<v Speaker 1>UK boardrooms, but he's being seen as quite a surprise

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<v Speaker 1>choice and a bit of a safe pair of hands

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<v Speaker 1>in a way. The surprise being that first he's kind

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<v Speaker 1>of indicated that he wouldn't expect to serve a long

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<v Speaker 1>term and that was echoed by the CEO yesterday. You

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<v Speaker 1>know that Nelson doesn't want to do the full six

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<v Speaker 1>to nine years, so potentially a short tenure for him.

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<v Speaker 1>And then also in terms of it being a surprise,

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<v Speaker 1>HBC have had a long process of trying to find

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<v Speaker 1>a chairman. There's been lots of kind of high profile

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<v Speaker 1>external candidates that have been named in various reports, you know,

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<v Speaker 1>people including the likes of George Osborne, the former UK Chancellor.

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<v Speaker 1>So the choice of Brendan Nelson kind of suggests that

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<v Speaker 1>they couldn't find a good external candidate. He also doesn't

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<v Speaker 1>have at least publicly much experience or any experience in Asia,

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<v Speaker 1>and obviously it comes as HSBC is overhauling itself and

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<v Speaker 1>kind of grappling with the tensions that are ongoing between

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<v Speaker 1>the US and China. That will be quite a key

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<v Speaker 1>thing to his role to navigate all that volatility. So

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<v Speaker 1>a bit of a surprise pick there, and yeah, it's

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<v Speaker 1>been seeing a bit of a safe pick just to

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<v Speaker 1>stick with the interim.

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<v Speaker 3>Interesting to see the shares in HSPC gennero one percent

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<v Speaker 3>this morning. Let's turn to Sainsbury's next, the Qatari Sovereign

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<v Speaker 3>Wealth Fund selling a large steak in the supermarket chain.

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<v Speaker 4>Indeed, so the Quitari is Sovereign Wealth fund.

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<v Speaker 1>They've been Sainsbury's largest shareholder for a long time. They

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<v Speaker 1>first invested in twenty in two thousand and seven. That

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<v Speaker 1>was one of their first investments in the UK. But

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<v Speaker 1>they've sold down now about eighty four just under eighty

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<v Speaker 1>four million shares, so that's worth two hundred and sixty.

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<v Speaker 4>Six million pounds.

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<v Speaker 1>So it brings their their almost two decade run as

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<v Speaker 1>the biggest sholder to an end. So now Sainsbury's biggest

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<v Speaker 1>shaholder will be the investment fund that's run by the

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<v Speaker 1>Czech billionaire Daniel Kratinski, so he will now be Sainsbury's

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<v Speaker 1>largest shareholder. Interesting, So since Katar have invested, Sainsbury's shares

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<v Speaker 1>have fallen about forty five percent. They've kind of struggled

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<v Speaker 1>to reshape their business as the competition heats up in.

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<v Speaker 4>The grocery space.

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<v Speaker 1>They have been doing a bit better recently, shared so

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<v Speaker 1>far this year risen about nineteen percent. They're tapping into

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<v Speaker 1>kind of cashtrup consumers wanting promotions, wanting loyalty cards, so

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<v Speaker 1>Bloomberg Intelligence. They're saying this morning that that sales growth

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<v Speaker 1>has kind of allowed that sharehold exit and they would

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<v Speaker 1>expect the wealth fund to sell down more of their

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<v Speaker 1>state to sell down the remaining stake. So an interesting one.

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<v Speaker 1>Sainsbury's falling on the news this morning.

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<v Speaker 3>Yeah, down three point nine percent at the moment, and

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<v Speaker 3>the latest move in a different direction from Intertext the

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<v Speaker 3>owner of Zara of eight percent in Spain.

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<v Speaker 1>Indeed a better day for Zara, so end of Techsara's owner, Yeah,

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<v Speaker 1>shares soaring the most in five years. That's after their

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<v Speaker 1>sales figures fought November, so sales accelerated, revenue up about

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<v Speaker 1>almost eleven percent.

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<v Speaker 4>Is being seen as kind of a bit of a relief.

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<v Speaker 1>They've had a spell of slightly lackluster sales, so it's

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<v Speaker 1>kind of easing investor concerns of it losing steam. Their

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<v Speaker 1>expansion has cooled quite a lot from their post pandemic

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<v Speaker 1>heart as they've been dealing with a whole host of things,

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<v Speaker 1>including trade frictions softer to consumer demand. But the figures

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<v Speaker 1>this morning are pointing to a bit of resilience despite

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<v Speaker 1>you know, there's still relatively weak consumer sentiment, but.

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<v Speaker 4>Showing some resilience.

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<v Speaker 1>It's coming out above their peers on the back of

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<v Speaker 1>a vast number of reasons, you know, including they've got

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<v Speaker 1>a relatively agile supply chain. The designs are seen as

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<v Speaker 1>being very on trend that kind of thing, so anlessa

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<v Speaker 1>pointing to that, pointing to their strong margins, their strong

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<v Speaker 1>cash flow, and they're expecting upward revisions on the back

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<v Speaker 1>of this.

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<v Speaker 4>So, as you say, shares accelerating on the back.

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<v Speaker 2>Of the news the Stock Movers report from Bloomberg Radio.

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