Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm met Tia Adebaya with Stephen Carroll,
Speaker 3: and we're joined by Bloomberg's Breaking News editor Louise Moon. Louise,
Speaker 3: let's start with the gambling company and Tain. It looks
Speaker 3: like they might have lost a key player.
Speaker 4: They have, indeed, so they're dropping the most on the
Speaker 4: Footy one hundred this morning, shares down almost five percent
Speaker 4: last time I checked. That's after one of their major shareholders,
Speaker 4: the hedge fund Eminence Capital, is shutting down. So this
Speaker 4: is their third largest shareholder. They own about a six
Speaker 4: point five percent stake of en Tain and they said that.
Speaker 1: So the news came late on Friday.
Speaker 4: Obviously, market reacting this morning that they're shutting down after
Speaker 4: twenty seven years. So they haven't been performing well enough
Speaker 4: in recent years to keep operating. CEO citing things like
Speaker 4: paul returns, the high cost of retaining talent, and other
Speaker 4: factors as well, and so obviously this poses questions as
Speaker 4: to what will happen with NTANE and their sake and
Speaker 4: their CEO, Ricky Sandler, he's been a non executive at
Speaker 4: NTANE since twenty twenty four early twenty twenty four as
Speaker 4: well for Ntane, it also comes as the whole the
Speaker 4: wider gambling industry is also facing a lot of headwinds,
Speaker 4: namely tax rises imposed by the UK government.
Speaker 1: Then most recent results were quite positive.
Speaker 4: Online gaming doing well, kind of propping up propping up
Speaker 4: weaknesses elsewhere.
Speaker 1: But shares over the past.
Speaker 4: Year or so have been declining and as I say,
Speaker 4: declining again and further this morning.
Speaker 1: Okay, so that's end TANE.
Speaker 2: Looking at Sainsbury's shares this morning down over three percent
Speaker 2: buy one, get one free on downgrades.
Speaker 4: Indeed, they've had a double downgrade from Goldman, So now
Speaker 4: Goldman is rating sainsbury at a cell and they've also
Speaker 4: been lowered by City so they've lowered their rating to
Speaker 4: a neutral. So taking them one at a time, well,
Speaker 4: it's similar factors. But Goldman for example, citing macro headwinds,
Speaker 4: saying that the outlook from here is challenging, citing in
Speaker 4: particular weaker growth in the UK and inflation, and it's
Speaker 4: a similar story from City also noting Sainsbury's weaker than
Speaker 4: expected guidance that came last week for twenty twenty seven,
Speaker 4: also noting inflation and a lot of competition in the space.
Speaker 4: So now if you look at overall analyst rating, Sainsbury's
Speaker 4: got six buys, four holds and three cells from analysts.
Speaker 4: That's kind of starting to even out across the board there.
Speaker 4: As I say, they had results last week and shares
Speaker 4: plunged after that as well. Their guidance, as I noticed,
Speaker 4: was weaker and expected, and they particularly cited of course
Speaker 4: the Middle East and the conflict and what the impact
Speaker 4: that that will have on profits. We're seeing this across retail.
Speaker 4: Tesco said similar recently. You know that there's a lot
Speaker 4: of headwinds there, consumers bending power being impacted, price inflation,
Speaker 4: a lot of competition among grossers, so therefore they're having
Speaker 4: to keep prices low to maintain that competitive stance. So
Speaker 4: there's quite a lot to contend with. And yeah, a
Speaker 4: double set of downgrades for Sainsbury's.
Speaker 3: That's a downgrade for Sainsbury's. But what about four via
Speaker 3: They are making a major sale.
Speaker 4: Yes, they're selling their auto interiors business, so four via
Speaker 4: a French company. They supply a lot of car big
Speaker 4: car brands Volkswagen, General Motors BMW, mostly supplying them with technology,
Speaker 4: so things like systems for automated driving and a lot
Speaker 4: of other things.
Speaker 1: That's what essentially they want to focus on.
Speaker 4: So they're selling their auto interiors business, which makes a
Speaker 4: lot of the interiors for cars, for an enterprier's value
Speaker 4: of one point eight two billion euros. So it's expected
Speaker 4: to complete in the second half. Apollo, the privactually firm
Speaker 4: is buying that. We knew that this could be close,
Speaker 4: but this is been confirmed and the price is being
Speaker 4: confirmed this morning. As I say, via trying to kind
Speaker 4: of streamline themselves focus on those technology driven activities. You know,
Speaker 4: it's a higher value add for them, boosting their own growth.
Speaker 4: So this deal is going to help them cut netdet
Speaker 4: by at least a billion euros and the CFO is
Speaker 4: saying that we're in a better situation financially. Shares rows
Speaker 4: initially and then actually dipped, so a bit of a
Speaker 4: mixed reaction from markets, but yeah, a big deal for the.
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