WEBVTT - Greggs Up, Monte Paschi Slips, Airbus Down

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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>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll. I'm joined by

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<v Speaker 3>Bloomberg's Chloe Melee for more. Chloe, good morning.

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<v Speaker 2>Good.

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<v Speaker 3>Let's start in the UK with Greg's, an activist investor

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<v Speaker 3>urging the food chain to cut costs. What's the latest.

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<v Speaker 1>Yeah, so the activist investors said that greg Greg's could

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<v Speaker 1>be taken over if it doesn't cut a minimum of

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<v Speaker 1>twenty million pounds of annual costs. So Greg's share price

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<v Speaker 1>is down about forty percent this yet it's also London's

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<v Speaker 1>most shortaged stock, so it's clearly under quite a lot

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<v Speaker 1>of pressure. And the hedge fund Lower Asset Management, which

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<v Speaker 1>is a big shareholder in Greg's, said that Greg's management

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<v Speaker 1>was timid and that it should be a lot more

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<v Speaker 1>aggressive in trying to write size its costs. So it's

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<v Speaker 1>a company that's struggling with rising prices for it's rowing

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<v Speaker 1>radients and minimum wage increases as well. But David mccurio,

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<v Speaker 1>who heads up that Hedgephund said that the expected cost

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<v Speaker 1>growth next year of about eight percent was far too

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<v Speaker 1>high if we consider the context that the UK minimum

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<v Speaker 1>wages will be increasing by a by four percent in

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<v Speaker 1>twenty twenty six. So he said that there are efficiencies

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<v Speaker 1>that Greg's could find, but that A has so far

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<v Speaker 1>kind of ignored, and so it said that if it

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<v Speaker 1>doesn't kind of sort those things out, private equity in

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<v Speaker 1>particular could be circling. So there's quite a lot of

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<v Speaker 1>pressure there. But the shares have been of this morning

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<v Speaker 1>as all of those discussions are going on.

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<v Speaker 3>Okay, so that's in Greg's. Turning to Italy next, shares

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<v Speaker 3>in montet Pasco di Siena falling for the third consecutive

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<v Speaker 3>day investors digesting an investigation into its takeover of Italian

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<v Speaker 3>rival Medio Banco.

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<v Speaker 1>Yeah, we are seeing that weakness continue as we get

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<v Speaker 1>a little bit more details on that probe. So documents

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<v Speaker 1>from prosecutors alleged that the CEO of Montepesci and two

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<v Speaker 1>big Italian investors has had coordinated actions to seize control

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<v Speaker 1>of Mediobanker, with the ultimate goal of being to control Generale,

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<v Speaker 1>which is Italy's biggest insurer, and so a key step

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<v Speaker 1>in that plan was the purchase last year of a

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<v Speaker 1>Montepesci stake by the Italian government, and that is part

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<v Speaker 1>of a process that prosecutors have described as orchestrated and

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<v Speaker 1>lacking in transparency. And so this probe into this alleged

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<v Speaker 1>market manipulation is risking delaying the integration of Mediobanker and Montepesci,

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<v Speaker 1>which is already a process that's facing quite a lot

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<v Speaker 1>of challenges because the business models are already so different.

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<v Speaker 1>So this is just an additional obstacle there. And as

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<v Speaker 1>I have said that the merger was already in an

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<v Speaker 1>elevated risk of failing even before the investigation, and now

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<v Speaker 1>this is making it a lot more worse. So we're

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<v Speaker 1>just kind of a wait now for more details on

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<v Speaker 1>this as it comes.

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<v Speaker 3>Okay, and chares in the bank down two point eight

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<v Speaker 3>percent at the moment. Turning to air bos next and

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<v Speaker 3>an updates from the plane maker this morning after that

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<v Speaker 3>software glitch.

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<v Speaker 1>Yes, there's been quite a weakness in the shares this

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<v Speaker 1>morning after this disruption over the weekend. So the software

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<v Speaker 1>update for A three twenty aircraft required an urgent fix

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<v Speaker 1>because it left flight controls vulnerable to cosmic radiations, and

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<v Speaker 1>so that meant that airlines had to rush this weekend

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<v Speaker 1>to fix this to avoid grounding during what was obviously

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<v Speaker 1>a very busy Thanksgiving period, and most airlines actually managed

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<v Speaker 1>to fix things fairly quickly, and Ebers said this morning

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<v Speaker 1>that the vast majority of aircraft had received that necessary

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<v Speaker 1>modification over the weekend, that there were very few now

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<v Speaker 1>that were left to fix, but it's still quite a setback,

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<v Speaker 1>and that created some delays and also raised questions about

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<v Speaker 1>whether that software update was rolled out without the appropriate safeguards.

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<v Speaker 1>And Ebbus has been benefiting from a reputation of safety,

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<v Speaker 1>especially in contrast with Boeing and its well documented issues,

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<v Speaker 1>so that weakness in those shares this morning is not

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<v Speaker 1>surprising given the widespread issues that came from this from

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<v Speaker 1>this software update.

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