WEBVTT - Paschi Up, Renault Down, CTS Eventim Drops

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move today in Europe. I'm Charles Cape with

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<v Speaker 3>Stephen Carroll. We're joined by Bloomberg reporter Chloe Meilee. First

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<v Speaker 3>at Montepshki. Looks like we have a flurry of Italian

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<v Speaker 3>bank bids.

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<v Speaker 1>Yeah, em Anda, and Italy is really a kind of

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<v Speaker 1>never ending saga. So the latest update, as you mentioned,

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<v Speaker 1>is that we've got Monte Deepesci seeking to buy two

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<v Speaker 1>separate banks, and so it wants to buy a bank

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<v Speaker 1>of BPM for about twenty five billion euros and then

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<v Speaker 1>also Banker generally for about nine billion euros, so for

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<v Speaker 1>a combined prize of thirty four billion euros.

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<v Speaker 4>So big a bid there for Monte Diepesci.

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<v Speaker 1>All of that is to avoid being taken over by

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<v Speaker 1>Intessa San Paolo, which is it's much a bigger rival,

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<v Speaker 1>and so we had seen a previous attempt you fend

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<v Speaker 1>off this takeover by in Tessa, which was an option

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<v Speaker 1>of a merger of equals with Banco VPM, but that

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<v Speaker 1>fell through, and so now Monte de Pesci is looking

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<v Speaker 1>at alternative defenses. If this bit from this bank does

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<v Speaker 1>go through, it would create a massive, massive lender and

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<v Speaker 1>able to kind of compete with in Tessa and UniCredit,

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<v Speaker 1>which are the two massive Italian banks, But the transactions

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<v Speaker 1>would be quite difficult to pull off, especially two at

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<v Speaker 1>the same time, especially given the fact that Peski is

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<v Speaker 1>also currently busy integrating a medio banker, which is another

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<v Speaker 1>deal that happened before.

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<v Speaker 3>Okay, so that's in the Italian banks, and I feel

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<v Speaker 3>like we all need our spider diagrams.

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<v Speaker 4>I have to try and track exactly who's trying to

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<v Speaker 4>buy who and when. Let's do something much more simple

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<v Speaker 4>next and talk about cars Reno.

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<v Speaker 1>Yeah, so got downgraded by Barclays this morning, and Lisz

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<v Speaker 1>mentioned two things in particular, two big challenges, which is

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<v Speaker 1>a lot of competition and then also the need for

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<v Speaker 1>major cost.

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<v Speaker 4>Cuts from that company.

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<v Speaker 1>They said that while the new CEO has managed to

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<v Speaker 1>really instill this sort of sense of urgency in the company,

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<v Speaker 1>a lot is needed on the costs in particular. Obviously,

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<v Speaker 1>it's been a very difficult few months for European carmakers. Overall,

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<v Speaker 1>we've seen a lot of profit warnings from different companies

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<v Speaker 1>and they're all kind of mentioning the same hurdles, which

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<v Speaker 1>are the competition in China and then a slow down

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<v Speaker 1>in demand in other parts of the world as well.

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<v Speaker 1>And if we look at Reno specifically, the latest earnings

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<v Speaker 1>were quite mixed, although there were in the grand scheme

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<v Speaker 1>of things, actually better than some of its competitors. It

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<v Speaker 1>made good progress on electric vehicles, It made progress on

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<v Speaker 1>cost cutting, but there were still those question marks on

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<v Speaker 1>this underlying demand. The raw materials costs as well are

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<v Speaker 1>a big question mark. And then the Chinese manufacturers are

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<v Speaker 1>obviously also starting to gain ground in the European market

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<v Speaker 1>and that is a big problem foreign now. So we

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<v Speaker 1>are seeing at the shares down this morning on the

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<v Speaker 1>back of this downgrade and those challenges that are really

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<v Speaker 1>set to continue.

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<v Speaker 3>And lastly, you're tracking cts a venum they sell tickets

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<v Speaker 3>for concerts, yes, theater and sporting events.

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<v Speaker 1>What's the latest, Yeah, for CITs, it's the latest earnings

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<v Speaker 1>that were maybe a bit disappointing. So they did come

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<v Speaker 1>in line the expectations, They kept their guidance but the

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<v Speaker 1>shares are down a fair bit this morning, so it

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<v Speaker 1>seems that that was not enough to reassure investors, perhaps

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<v Speaker 1>because expectations are actually quite high for this company. It

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<v Speaker 1>has fourteen by ratings from analysts, only just one cell rating,

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<v Speaker 1>so that reflects some enthusiasm around the stock. We had

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<v Speaker 1>AUTOBHF analysts saying last month that they expect and improvement

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<v Speaker 1>in the earnings momentum that you know that was really

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<v Speaker 1>driven by the closure of some loss making festivals lower

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<v Speaker 1>integration costs as well. So there seems to be a

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<v Speaker 1>lot of enthusiasm around the stock, and the problem is

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<v Speaker 1>that maybe CTS has not delivered to the extent that

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<v Speaker 1>was hoped, and so bnp p Are is the only

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<v Speaker 1>a cell rating on that stock. They mentioned that there

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<v Speaker 1>was disruption that was starting to come to ticket marketplaces.

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<v Speaker 4>And so it might be that they are the ones

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<v Speaker 4>that end up being right on this stuff.

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<v Speaker 2>But we'll see the stock movers report from Bloomberg Radio.

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<v Speaker 2>Check back with us throughout the day for the latest

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<v Speaker 2>roundup of companies making news on Wall Street and for

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<v Speaker 2>the latest market moving headlines. Listen to Bloomberg Radio Live.

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