WEBVTT - Entain Falls, Sainsbury Drops, Forvia Deal

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.520 --> 0:00:18.680
<v Speaker 3>Now, let's take a look at some stocks on the

0:00:18.680 --> 0:00:22.040
<v Speaker 3>move today in Europe. I'm met Tia Adebaya with Stephen Carroll,

0:00:22.360 --> 0:00:26.520
<v Speaker 3>and we're joined by Bloomberg's Breaking News editor Louise Moon. Louise,

0:00:26.680 --> 0:00:29.960
<v Speaker 3>let's start with the gambling company and Tain. It looks

0:00:30.000 --> 0:00:31.640
<v Speaker 3>like they might have lost a key player.

0:00:32.120 --> 0:00:34.600
<v Speaker 4>They have, indeed, so they're dropping the most on the

0:00:34.640 --> 0:00:37.600
<v Speaker 4>Footy one hundred this morning, shares down almost five percent

0:00:38.080 --> 0:00:41.760
<v Speaker 4>last time I checked. That's after one of their major shareholders,

0:00:41.760 --> 0:00:44.760
<v Speaker 4>the hedge fund Eminence Capital, is shutting down. So this

0:00:44.840 --> 0:00:47.640
<v Speaker 4>is their third largest shareholder. They own about a six

0:00:47.680 --> 0:00:51.479
<v Speaker 4>point five percent stake of en Tain and they said that.

0:00:51.520 --> 0:00:52.880
<v Speaker 1>So the news came late on Friday.

0:00:52.960 --> 0:00:56.520
<v Speaker 4>Obviously, market reacting this morning that they're shutting down after

0:00:57.040 --> 0:00:59.560
<v Speaker 4>twenty seven years. So they haven't been performing well enough

0:00:59.600 --> 0:01:02.800
<v Speaker 4>in recent years to keep operating. CEO citing things like

0:01:02.880 --> 0:01:06.280
<v Speaker 4>paul returns, the high cost of retaining talent, and other

0:01:06.360 --> 0:01:10.360
<v Speaker 4>factors as well, and so obviously this poses questions as

0:01:10.360 --> 0:01:12.640
<v Speaker 4>to what will happen with NTANE and their sake and

0:01:12.680 --> 0:01:15.480
<v Speaker 4>their CEO, Ricky Sandler, he's been a non executive at

0:01:15.600 --> 0:01:19.720
<v Speaker 4>NTANE since twenty twenty four early twenty twenty four as

0:01:19.720 --> 0:01:23.959
<v Speaker 4>well for Ntane, it also comes as the whole the

0:01:24.000 --> 0:01:27.920
<v Speaker 4>wider gambling industry is also facing a lot of headwinds,

0:01:28.000 --> 0:01:31.640
<v Speaker 4>namely tax rises imposed by the UK government.

0:01:31.880 --> 0:01:34.360
<v Speaker 1>Then most recent results were quite positive.

0:01:34.040 --> 0:01:37.800
<v Speaker 4>Online gaming doing well, kind of propping up propping up

0:01:37.800 --> 0:01:38.800
<v Speaker 4>weaknesses elsewhere.

0:01:38.840 --> 0:01:40.640
<v Speaker 1>But shares over the past.

0:01:40.440 --> 0:01:43.479
<v Speaker 4>Year or so have been declining and as I say,

0:01:43.640 --> 0:01:46.080
<v Speaker 4>declining again and further this morning.

0:01:47.120 --> 0:01:48.600
<v Speaker 1>Okay, so that's end TANE.

0:01:48.640 --> 0:01:51.760
<v Speaker 2>Looking at Sainsbury's shares this morning down over three percent

0:01:51.920 --> 0:01:53.880
<v Speaker 2>buy one, get one free on downgrades.

0:01:54.640 --> 0:01:58.480
<v Speaker 4>Indeed, they've had a double downgrade from Goldman, So now

0:01:58.600 --> 0:02:01.840
<v Speaker 4>Goldman is rating sainsbury at a cell and they've also

0:02:01.920 --> 0:02:04.520
<v Speaker 4>been lowered by City so they've lowered their rating to

0:02:04.680 --> 0:02:07.280
<v Speaker 4>a neutral. So taking them one at a time, well,

0:02:07.520 --> 0:02:11.720
<v Speaker 4>it's similar factors. But Goldman for example, citing macro headwinds,

0:02:11.760 --> 0:02:15.480
<v Speaker 4>saying that the outlook from here is challenging, citing in

0:02:15.520 --> 0:02:19.840
<v Speaker 4>particular weaker growth in the UK and inflation, and it's

0:02:19.880 --> 0:02:23.520
<v Speaker 4>a similar story from City also noting Sainsbury's weaker than

0:02:23.520 --> 0:02:26.480
<v Speaker 4>expected guidance that came last week for twenty twenty seven,

0:02:26.919 --> 0:02:31.200
<v Speaker 4>also noting inflation and a lot of competition in the space.

0:02:31.240 --> 0:02:33.560
<v Speaker 4>So now if you look at overall analyst rating, Sainsbury's

0:02:33.600 --> 0:02:37.040
<v Speaker 4>got six buys, four holds and three cells from analysts.

0:02:37.080 --> 0:02:40.239
<v Speaker 4>That's kind of starting to even out across the board there.

0:02:40.320 --> 0:02:42.720
<v Speaker 4>As I say, they had results last week and shares

0:02:42.760 --> 0:02:45.400
<v Speaker 4>plunged after that as well. Their guidance, as I noticed,

0:02:45.480 --> 0:02:48.359
<v Speaker 4>was weaker and expected, and they particularly cited of course

0:02:48.639 --> 0:02:52.320
<v Speaker 4>the Middle East and the conflict and what the impact

0:02:52.360 --> 0:02:54.960
<v Speaker 4>that that will have on profits. We're seeing this across retail.

0:02:55.040 --> 0:02:58.280
<v Speaker 4>Tesco said similar recently. You know that there's a lot

0:02:58.320 --> 0:03:02.800
<v Speaker 4>of headwinds there, consumers bending power being impacted, price inflation,

0:03:02.880 --> 0:03:06.000
<v Speaker 4>a lot of competition among grossers, so therefore they're having

0:03:06.000 --> 0:03:09.520
<v Speaker 4>to keep prices low to maintain that competitive stance. So

0:03:09.560 --> 0:03:12.360
<v Speaker 4>there's quite a lot to contend with. And yeah, a

0:03:12.400 --> 0:03:14.400
<v Speaker 4>double set of downgrades for Sainsbury's.

0:03:14.880 --> 0:03:18.040
<v Speaker 3>That's a downgrade for Sainsbury's. But what about four via

0:03:18.200 --> 0:03:20.720
<v Speaker 3>They are making a major sale.

0:03:20.320 --> 0:03:24.520
<v Speaker 4>Yes, they're selling their auto interiors business, so four via

0:03:24.600 --> 0:03:28.720
<v Speaker 4>a French company. They supply a lot of car big

0:03:28.840 --> 0:03:34.080
<v Speaker 4>car brands Volkswagen, General Motors BMW, mostly supplying them with technology,

0:03:34.440 --> 0:03:37.280
<v Speaker 4>so things like systems for automated driving and a lot

0:03:37.280 --> 0:03:37.880
<v Speaker 4>of other things.

0:03:38.280 --> 0:03:40.040
<v Speaker 1>That's what essentially they want to focus on.

0:03:40.080 --> 0:03:42.880
<v Speaker 4>So they're selling their auto interiors business, which makes a

0:03:42.920 --> 0:03:46.440
<v Speaker 4>lot of the interiors for cars, for an enterprier's value

0:03:46.480 --> 0:03:49.160
<v Speaker 4>of one point eight two billion euros. So it's expected

0:03:49.200 --> 0:03:52.120
<v Speaker 4>to complete in the second half. Apollo, the privactually firm

0:03:52.240 --> 0:03:55.200
<v Speaker 4>is buying that. We knew that this could be close,

0:03:55.280 --> 0:03:57.160
<v Speaker 4>but this is been confirmed and the price is being

0:03:57.200 --> 0:04:01.080
<v Speaker 4>confirmed this morning. As I say, via trying to kind

0:04:01.080 --> 0:04:07.320
<v Speaker 4>of streamline themselves focus on those technology driven activities. You know,

0:04:07.480 --> 0:04:10.560
<v Speaker 4>it's a higher value add for them, boosting their own growth.

0:04:10.640 --> 0:04:12.560
<v Speaker 4>So this deal is going to help them cut netdet

0:04:12.560 --> 0:04:15.320
<v Speaker 4>by at least a billion euros and the CFO is

0:04:15.360 --> 0:04:19.240
<v Speaker 4>saying that we're in a better situation financially. Shares rows

0:04:19.320 --> 0:04:21.520
<v Speaker 4>initially and then actually dipped, so a bit of a

0:04:21.520 --> 0:04:25.000
<v Speaker 4>mixed reaction from markets, but yeah, a big deal for the.

0:04:25.000 --> 0:04:30.240
<v Speaker 2>Other The stock movers report from Bloomberg Radio check back

0:04:30.240 --> 0:04:32.479
<v Speaker 2>with US throughout the day. For the latest roundup of

0:04:32.560 --> 0:04:35.839
<v Speaker 2>companies making news on Wall Street, and for the latest

0:04:35.880 --> 0:04:40.080
<v Speaker 2>market moving headlines. Listen to Bloomberg Radio Live, catch us

0:04:40.080 --> 0:04:43.839
<v Speaker 2>on YouTube, Bloomberg dot com, and on Applecarplay and Android

0:04:43.880 --> 0:04:45.839
<v Speaker 2>Auto with the Bloomberg Business app.