WEBVTT - UBS Jumps, Lufthansa Soars, Card Factory Falls

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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>Let's take a look at substocks on the move today

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<v Speaker 3>in Europe. I'm Stephen Carroll and we're joined by Bloomberg's

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<v Speaker 3>Breaking News editor Louise me and Louise good morning. Let's

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<v Speaker 3>start in Switzerland with UBS shares up four point three percent.

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<v Speaker 1>Indeed, yeah, a seventeen year high this morning. So this

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<v Speaker 1>is on the back of big news in Switzerland that

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<v Speaker 1>lawmakers are proposing watering down capital demands that the government

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<v Speaker 1>wants to impose on UBS. So there was quite kind

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<v Speaker 1>of a host of recommendations, but the main one being

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<v Speaker 1>that it would potentially allow UBS to use the kind

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<v Speaker 1>of junior debt it's known as at one bonds instead

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<v Speaker 1>of equity to meet these capital demands. So if this

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<v Speaker 1>all went ahead and went through, then that could potentially

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<v Speaker 1>end what's been quite a s and off between the

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<v Speaker 1>government from the government to tighten these rules on UBS

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<v Speaker 1>and has also faced a lot of criticism in the parliament.

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<v Speaker 1>So they were first kind of started to be discussed

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<v Speaker 1>last year and since then that so throughout that whole

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<v Speaker 1>time they've kind of clouded UBS's share price. You know,

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<v Speaker 1>the bankers indicated that if it went ahead, they might

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<v Speaker 1>need to reduce investor payments investor payouts, so it's really

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<v Speaker 1>been quite weighing down on their shares, and these potential

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<v Speaker 1>proposals are being seen as or they're being welcomed by

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<v Speaker 1>the market, as you can see from the share price

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<v Speaker 1>to share prices jumping. One analyst was saying, you know,

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<v Speaker 1>it could point to future voting behavior in the Parliament

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<v Speaker 1>and it has been taken as quite good news. So

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<v Speaker 1>we'll have to keep an eye to see if this

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<v Speaker 1>actually does go through, but yeah, very much being welcomed

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<v Speaker 1>and UBS shares reacting on the back of that.

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<v Speaker 3>Yeah, really interesting one to watch. In Switzerland, we've got

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<v Speaker 3>a Germany next Lo Tanza shares also out performing there,

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<v Speaker 3>up five and a half percent.

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<v Speaker 1>Indeed, so List has raised them to a buy. They

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<v Speaker 1>don't have if you look at all the analyst holdings,

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<v Speaker 1>they only have five buys including this latest one, fifteen

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<v Speaker 1>holds and four cells. So shares are reacting positively that

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<v Speaker 1>they're up this on the back of this news this

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<v Speaker 1>morning there now back at levels lasteing in kind of

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<v Speaker 1>early twenty twenty four. So essentially the analysts is saying that,

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<v Speaker 1>you know, there's been a change in global travels becoming

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<v Speaker 1>a luxury category with premiumization at its core, so they're

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<v Speaker 1>shifting more towards the type of operators that have exposure

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<v Speaker 1>to that premium international long haul and particularly in places

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<v Speaker 1>where demand is high but supply is quite constrained, so

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<v Speaker 1>they see Luftansa as attractive. On the back of that,

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<v Speaker 1>Loftandra has been you know, stepping into or stepping up

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<v Speaker 1>that they're pushed towards premiumization, and they recently said that

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<v Speaker 1>that's starting to kind of make progress and have quite

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<v Speaker 1>a lot of impact. So being upgraded on the back

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<v Speaker 1>of that, they did must say. They did also note

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<v Speaker 1>that there are stills some challenges, full of hander to

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<v Speaker 1>contend with, so there's pressure from unions, there's a lot

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<v Speaker 1>of competition in the middle least and so on. But

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<v Speaker 1>they've raised it to a buy on the back of

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<v Speaker 1>that change in global travel and that's lifting shares this morning.

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<v Speaker 3>Okay, and the question of the day, Louise, do you

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<v Speaker 3>send Christmas cards? I love Christmas cards. Sending them out already,

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<v Speaker 3>just one of these people who just receives them.

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<v Speaker 1>No, no, no, I've been writing away, sending them out.

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<v Speaker 1>You've got to keep the traditions alive.

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<v Speaker 3>True, but are you booking a trend? If we're looking

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<v Speaker 3>at what's coming out a card factory.

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<v Speaker 1>This morning, well it seems as though I am. We

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<v Speaker 1>need to get Christmas cards back in. Everyone's on everyone's agenda. Yeah,

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<v Speaker 1>card factory shares absolutely plummeting. It's quite remarkle if you

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<v Speaker 1>look at their share price graph, down twenty seven percent

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<v Speaker 1>this morning, the lowes since twenty twenty two. That's after

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<v Speaker 1>they cut their guidance this morning. So they're now expecting

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<v Speaker 1>maximum up to sixty million pounds in pretax profit next year.

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<v Speaker 1>They had expected growth from their sixty so last year

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<v Speaker 1>they achieved sixty six million. They had expected growth from that.

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<v Speaker 1>Now expecting maximum sixty million, So quite a cut from them.

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<v Speaker 1>And what they're really citing is the lack of consumer

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<v Speaker 1>confidence in the UK. They say that the UK stores

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<v Speaker 1>are performing worse than expected, and they pointed to other

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<v Speaker 1>businesses Islands North America being fine. So Alice saying this

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<v Speaker 1>is quite short warning that surprises in scale, so it

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<v Speaker 1>seems more people need to be sending Christmas cards. Keep

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<v Speaker 1>the card factory alive.

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