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: Let's take a look at some of the stocks on
Speaker 3: the move today in Europe. I'm Jacksitters with Caroline Hepcare.
Speaker 3: We're joined by Bloomberg's Breaking news editor Louise Moon. Morning, Louis,
Speaker 3: So starting with Barrett redro climbing this morning. What's driving games?
Speaker 1: Yes, there's kind of a host of factors at play here.
Speaker 1: So as you say, Barret Redbrow up this morning as
Speaker 1: much as two point seven percent in morning trading. The
Speaker 1: most immediate news is that they've been upgraded by Berenberg
Speaker 1: to a buy. Belway has also been upgraded, which is
Speaker 1: another obviously UK home builder, and the stock is also
Speaker 1: rising up about two point three percent. So Behrenberg saying
Speaker 1: that depressed valuations, strong balance sheets and attractive capital returns
Speaker 1: all show opportunities for these two housebuilders despite what's kind
Speaker 1: of the wider downbeat market outlook. And then it's kind
Speaker 1: of stepping away from that, it's also just been relatively
Speaker 1: strong weak for housebuilders anyway, partly on the back of
Speaker 1: these you know, bets pairing back on Beerwie, raising interest rates,
Speaker 1: and also for Barrett specifically, one of their shareholders has
Speaker 1: said that while they support their longtime strategy, they think
Speaker 1: they need a new approach to capital allocations, so essentially
Speaker 1: should be increasing share buybacks to create value for shareholders
Speaker 1: and that particularly has been boosting Barrett. So quite a
Speaker 1: few things at play, but yeah, this morning is mostly
Speaker 1: on the back of that upgrade from Barrenberg.
Speaker 4: Okay, interesting. Yeah, and those home builders in the UK
Speaker 4: always in focus to see actually how you translate the
Speaker 4: political desire to have greater housebuilding, you know, into these
Speaker 4: companies that are having quite a lot of difficulty delivering
Speaker 4: a lot of the time, right J Yeah.
Speaker 3: Absolutely. I mean, obviously, you know, mortgage raids being the
Speaker 3: absolute key thing. But it'd be interesting to see how
Speaker 3: the house bulders respond to potential Andy building premiership. I
Speaker 3: think a sense from talking to executives there, he's been
Speaker 3: relatively pro student as Mayor of Manchester in terms of
Speaker 3: public private partnerships, the deals they've been willing to do
Speaker 3: with the private sector, something that I think a lot
Speaker 3: of them would welcome elsewhere. Yeah.
Speaker 4: Absolutely, let's also think though about Volkswagen VW with some
Speaker 4: big jobs news in terms of announcing cuts. How investors reacting.
Speaker 1: Yes, So this is a report from a local media
Speaker 1: organization over in Germany, right, essentially that Volkswagen are looking
Speaker 1: to double job cuts. So that's the many as one
Speaker 1: hundred thousand, which is pretty significant. It's about fifteen percent
Speaker 1: of total headcount for Volkswagen. And they may also shut factories.
Speaker 1: So they're saying that these plans will be presented by
Speaker 1: the CEO at a board meeting this week, and it
Speaker 1: also includes other things. So for example, more generally he
Speaker 1: wants to cut over her costs by eleven billion euros
Speaker 1: by the end of the decade. And as I say,
Speaker 1: closing factories as well. Shares are actually little moved, partly
Speaker 1: to kind of two key reasons. One, it's part of
Speaker 1: a wider push anyway by the CEO to slim down Volkswagen.
Speaker 1: You know that the sector is battling our host of
Speaker 1: headwinds that we've spoken about before, taris, weakness in China,
Speaker 1: more competition in Europe, so that's kind of known anyway.
Speaker 1: And then two plans, initial plans often actually get watered
Speaker 1: down by labor representatives that make up half of the board.
Speaker 1: And that's so this, as I said, this is going
Speaker 1: to be presented to the board. So that and they're
Speaker 1: already kind of citing resistance to these plans anyway, So
Speaker 1: whether or not this will come to fruition, so shares,
Speaker 1: as I say, little moved this morning.
Speaker 3: I finally a plunge for Zilando. Far bit for me
Speaker 3: to say. But are they going out of style?
Speaker 1: Well potentially, yeah, So the online fashion retailer again in Germany.
Speaker 1: This is on the back of news that the financial
Speaker 1: regulator there has launched a probe into their twenty twenty
Speaker 1: five report their suspected violation of accounting rules. So what
Speaker 1: this is all about is the takeover of another company,
Speaker 1: Arrival called about You, and the issue being that the
Speaker 1: regulator is saying that Zilando failed to disclose that its
Speaker 1: largest shareholder was also a major shareholder in About You
Speaker 1: before the deal. It was disclosed in the offer document
Speaker 1: but not in their annual report. So Alice is saying
Speaker 1: they don't expect, you know, much much of a material fine,
Speaker 1: and Zelando is saying that it's in close contact with
Speaker 1: the regulator, but shares are still down over ten percent
Speaker 1: in Frankfurt despite that, so we'll be keeping a close
Speaker 1: eye on that one.
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