WEBVTT - Barratt Redrow Climbs, Zalando Plunges, Volkswagen Rises

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

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

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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<v Speaker 3>the move today in Europe. I'm Jacksitters with Caroline Hepcare.

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<v Speaker 3>We're joined by Bloomberg's Breaking news editor Louise Moon. Morning, Louis,

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<v Speaker 3>So starting with Barrett redro climbing this morning. What's driving games?

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<v Speaker 1>Yes, there's kind of a host of factors at play here.

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<v Speaker 1>So as you say, Barret Redbrow up this morning as

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<v Speaker 1>much as two point seven percent in morning trading. The

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<v Speaker 1>most immediate news is that they've been upgraded by Berenberg

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<v Speaker 1>to a buy. Belway has also been upgraded, which is

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<v Speaker 1>another obviously UK home builder, and the stock is also

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<v Speaker 1>rising up about two point three percent. So Behrenberg saying

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<v Speaker 1>that depressed valuations, strong balance sheets and attractive capital returns

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<v Speaker 1>all show opportunities for these two housebuilders despite what's kind

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<v Speaker 1>of the wider downbeat market outlook. And then it's kind

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<v Speaker 1>of stepping away from that, it's also just been relatively

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<v Speaker 1>strong weak for housebuilders anyway, partly on the back of

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<v Speaker 1>these you know, bets pairing back on Beerwie, raising interest rates,

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<v Speaker 1>and also for Barrett specifically, one of their shareholders has

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<v Speaker 1>said that while they support their longtime strategy, they think

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<v Speaker 1>they need a new approach to capital allocations, so essentially

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<v Speaker 1>should be increasing share buybacks to create value for shareholders

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<v Speaker 1>and that particularly has been boosting Barrett. So quite a

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<v Speaker 1>few things at play, but yeah, this morning is mostly

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<v Speaker 1>on the back of that upgrade from Barrenberg.

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<v Speaker 4>Okay, interesting. Yeah, and those home builders in the UK

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<v Speaker 4>always in focus to see actually how you translate the

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<v Speaker 4>political desire to have greater housebuilding, you know, into these

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<v Speaker 4>companies that are having quite a lot of difficulty delivering

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<v Speaker 4>a lot of the time, right J Yeah.

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<v Speaker 3>Absolutely. I mean, obviously, you know, mortgage raids being the

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<v Speaker 3>absolute key thing. But it'd be interesting to see how

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<v Speaker 3>the house bulders respond to potential Andy building premiership. I

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<v Speaker 3>think a sense from talking to executives there, he's been

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<v Speaker 3>relatively pro student as Mayor of Manchester in terms of

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<v Speaker 3>public private partnerships, the deals they've been willing to do

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<v Speaker 3>with the private sector, something that I think a lot

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<v Speaker 3>of them would welcome elsewhere. Yeah.

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<v Speaker 4>Absolutely, let's also think though about Volkswagen VW with some

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<v Speaker 4>big jobs news in terms of announcing cuts. How investors reacting.

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<v Speaker 1>Yes, So this is a report from a local media

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<v Speaker 1>organization over in Germany, right, essentially that Volkswagen are looking

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<v Speaker 1>to double job cuts. So that's the many as one

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<v Speaker 1>hundred thousand, which is pretty significant. It's about fifteen percent

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<v Speaker 1>of total headcount for Volkswagen. And they may also shut factories.

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<v Speaker 1>So they're saying that these plans will be presented by

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<v Speaker 1>the CEO at a board meeting this week, and it

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<v Speaker 1>also includes other things. So for example, more generally he

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<v Speaker 1>wants to cut over her costs by eleven billion euros

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<v Speaker 1>by the end of the decade. And as I say,

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<v Speaker 1>closing factories as well. Shares are actually little moved, partly

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<v Speaker 1>to kind of two key reasons. One, it's part of

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<v Speaker 1>a wider push anyway by the CEO to slim down Volkswagen.

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<v Speaker 1>You know that the sector is battling our host of

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<v Speaker 1>headwinds that we've spoken about before, taris, weakness in China,

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<v Speaker 1>more competition in Europe, so that's kind of known anyway.

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<v Speaker 1>And then two plans, initial plans often actually get watered

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<v Speaker 1>down by labor representatives that make up half of the board.

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<v Speaker 1>And that's so this, as I said, this is going

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<v Speaker 1>to be presented to the board. So that and they're

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<v Speaker 1>already kind of citing resistance to these plans anyway, So

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<v Speaker 1>whether or not this will come to fruition, so shares,

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<v Speaker 1>as I say, little moved this morning.

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<v Speaker 3>I finally a plunge for Zilando. Far bit for me

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<v Speaker 3>to say. But are they going out of style?

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<v Speaker 1>Well potentially, yeah, So the online fashion retailer again in Germany.

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<v Speaker 1>This is on the back of news that the financial

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<v Speaker 1>regulator there has launched a probe into their twenty twenty

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<v Speaker 1>five report their suspected violation of accounting rules. So what

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<v Speaker 1>this is all about is the takeover of another company,

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<v Speaker 1>Arrival called about You, and the issue being that the

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<v Speaker 1>regulator is saying that Zilando failed to disclose that its

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<v Speaker 1>largest shareholder was also a major shareholder in About You

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<v Speaker 1>before the deal. It was disclosed in the offer document

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<v Speaker 1>but not in their annual report. So Alice is saying

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<v Speaker 1>they don't expect, you know, much much of a material fine,

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<v Speaker 1>and Zelando is saying that it's in close contact with

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<v Speaker 1>the regulator, but shares are still down over ten percent

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<v Speaker 1>in Frankfurt despite that, so we'll be keeping a close

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<v Speaker 1>eye on that one.

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