WEBVTT - Rightmove Plunges, ITV Soars, Monte Paschi Gains

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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>But 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 and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moon. Louise, good morning. Let's

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<v Speaker 3>start in the UK then with right Move. The property

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<v Speaker 3>website reporting earnings and shares certainly not making the right

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<v Speaker 3>move this morning.

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<v Speaker 4>Indeed absolutely plunging this morning. They were the biggest faller

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<v Speaker 4>on the foot seat one hundred. It's a really it's

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<v Speaker 4>a dramatic look at their share price move. They've been

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<v Speaker 4>on an absolute tear for years. They've gained huge market

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<v Speaker 4>share and then if you look today, it kind of

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<v Speaker 4>falls off a cliffs. They're back to levels last scene

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<v Speaker 4>in about August last year. So this is partly there's

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<v Speaker 4>someone's certainly around the budget. They flagged that, but also,

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<v Speaker 4>as you say, they're warning on revenue growth likely to

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<v Speaker 4>be flat in twenty twenty, they're saying growth of about

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<v Speaker 4>nine percent this year and much the same in twenty

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<v Speaker 4>twenty six.

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<v Speaker 1>So it's about eight percent to ten percent.

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<v Speaker 4>They've also delayed their goals for sales growth from twenty

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<v Speaker 4>twenty eight to twenty thirty, so they've pushed that back

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<v Speaker 4>as well. And this is all coming as they also

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<v Speaker 4>unveiled plans to boost AI investments, so a lot more

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<v Speaker 4>investment into AI potentially could impact their revenue, and analysts

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<v Speaker 4>are saying, you know, this could be two steps back

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<v Speaker 4>for three steps.

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<v Speaker 1>Forward kind of things.

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<v Speaker 4>So, and there's a lot of pressure to explain why

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<v Speaker 4>now is the time to do that, considering they've been

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<v Speaker 4>doing so well. So there's a really interesting note from

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<v Speaker 4>Bloomberg Intelligence and they're saying that they think that this

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<v Speaker 4>shows that management think that this kind of historic solid

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<v Speaker 4>top line trend is becoming tougher to sustain and they

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<v Speaker 4>need to spend more and invest more to keep that

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<v Speaker 4>going in the long run, even if this is going

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<v Speaker 4>to hamper or potentially hamper revenue growth in the short term.

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<v Speaker 3>Yeah, really interesting to see how that company is reacting

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<v Speaker 3>to those broader headwinds. Looking at ITV shares moving en

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<v Speaker 3>very much the opposite direction. After inning that it's in

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<v Speaker 3>talks with the owner of sky Comcast or at the

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<v Speaker 3>sale of its media and entertainment time.

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<v Speaker 1>Indeed, shares are soaring on the back of this.

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<v Speaker 4>They jumped about twenty percent this morning, so leading the

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<v Speaker 4>midcaps the foot C two fifty as you say. So

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<v Speaker 4>Sky is in talks to buy ITV's media and entertainment arms.

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<v Speaker 4>That would be for they're saying that would be for

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<v Speaker 4>about one point six billion pounds. So this is the

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<v Speaker 4>arm that is behind their free to air TV channel

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<v Speaker 4>and also their streaming platform. So if this deal went through,

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<v Speaker 4>it would leave ITV with their studios units, so that's

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<v Speaker 4>the unit that produces a lot of their entertainment shows.

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<v Speaker 4>So Britain's got Talent, Love Island, all those guilty pleasures.

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<v Speaker 4>But as you say, ultimately Comcast the US Chianet would

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<v Speaker 4>be the owner because they own the Sky, So it

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<v Speaker 4>would be if it goes through, it be a real

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<v Speaker 4>shake up in the broadcasting space. It would create a

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<v Speaker 4>broadcasting giant, and it follows years of ITV being tipped

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<v Speaker 4>as a potential takeover target.

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<v Speaker 1>Their shares have really struggled.

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<v Speaker 4>They're about seventy percent off a twenty fifteen peak, and

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<v Speaker 4>this was kind of those shares that I mean, they

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<v Speaker 4>plunged even more last month that their larger largest shareholder,

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<v Speaker 4>Liberty Global, cut their stake in half. They had previously

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<v Speaker 4>been touted as a buyer. So ITV has been struggling

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<v Speaker 4>for a long time as the media industry kind of

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<v Speaker 4>shifts away from traditional broadcasting. So Alice is saying that

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<v Speaker 4>this is a this is a positive surprise, and if

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<v Speaker 4>the deal goes through, it would be at quite a

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<v Speaker 4>healthy multiple. So as I say, shares reacting positively on

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<v Speaker 4>the back of that.

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<v Speaker 3>And last week to monitor PASCIDCNA, the Italian lender posting

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<v Speaker 3>better than expected profits in the third quarter.

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<v Speaker 4>Indeed, third quarter results, net income better than expected, they

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<v Speaker 4>increased their guidance for full year profit, and shares reacting

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<v Speaker 4>positively on the news. They were the best performer on

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<v Speaker 4>the stock six hundred bank indecks this morning. They're saying

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<v Speaker 4>that this reflects their recent takeover of Mediobanker that their

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<v Speaker 4>rival lender, their arrival Italian lender SAT completed in September

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<v Speaker 4>and it created Italy's third largest lender by assets. So yes,

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<v Speaker 4>doing well, strong third quarter results and listen noting those

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<v Speaker 4>strong revenues, better cost controls and all that positive news,

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<v Speaker 4>and so The next thing now to be looking for

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<v Speaker 4>will be in their first quarter next year. They're going

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<v Speaker 4>to present a new strategy, so how they're going to

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<v Speaker 4>move forward post that large takeover.

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<v Speaker 2>The stock Movers report from Bloomberg Radio. Check back with

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