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 1: Let's take a look at some of the stocks on
Speaker 1: the move today in Europe. I'm Lizzie Burden with Caroline Hepka.
Speaker 1: I'm re joined by our Bloomberg reporter, Chloe Melly. Chloe,
Speaker 1: good morning. Let's start off with UniCredit, the Italian lender
Speaker 1: up this morning after Germany rejected its takeover bid for
Speaker 1: Comets Bank. Just tell us more.
Speaker 3: Yeah, absolutely, So this is really the latest in this
Speaker 3: ongoing Commerce Bank Uniticredit saga. So, as you said, Germany
Speaker 3: rejected that takeover bid, saying that the offer does not
Speaker 3: include an appropriate premium and also that Commerce Bank has
Speaker 3: a very important role to play in the domestic economy
Speaker 3: and partly through, for example, the jobs that it creates
Speaker 3: in Frankfurt, where it's really a really big employer, which
Speaker 3: means that it actually must keep its independence. So that's
Speaker 3: what the German government is say, and it's not surprising
Speaker 3: to hear about this rejection. Germany has been very opposed
Speaker 3: to this potential takeover since twenty twenty four when UniCredit
Speaker 3: first took a stake and first made its approach.
Speaker 4: So the story is not done yet though.
Speaker 3: We have this full blown takeover offer that UniCredit made
Speaker 3: in March that will actually likely receive a two week
Speaker 3: extension until July third, so we'll have to keep an
Speaker 3: eye on that. And what's interesting is that for a
Speaker 3: while the implied value of the offer was below the
Speaker 3: market value of commers Bank, but now the discount has
Speaker 3: narrowed quite a bit, so we'll see how shareholders think
Speaker 3: about that. But while we wait for the next steps,
Speaker 3: UniCredit shares are up this morning and commers Bank a
Speaker 3: little bit weaker.
Speaker 5: Yeah, it's really interesting, isn't it. This important kind of
Speaker 5: cross border deal, whether it actually gets done or now,
Speaker 5: it's going to be a massive test for Europe and
Speaker 5: maybe for other similar situations. You know, think about the
Speaker 5: Mario Draky reports. Is meant to be one European kind
Speaker 5: of continent competing globally anyway. Rathbones in the UK, this
Speaker 5: is the wealth manager facing an FCA review.
Speaker 3: Why Yeah, a huge, huge palulenge this morning for the
Speaker 3: wrath Bone shares. So it said that it expects sixty
Speaker 3: million pounds of additional cost over the next two years
Speaker 3: to address the findings from a regulator review from a
Speaker 3: review from the FCA that identified areas of improvement regarding
Speaker 3: how it implements consumer duty guidelines for its consumers and
Speaker 3: then also found deficiencies in aspects of coliant compliance, oversight
Speaker 3: and assurance arrangements. And so that means that Wrathbones has
Speaker 3: to make changes now to its procedures and that it
Speaker 3: will stop onboarding new clients for twelve months until it
Speaker 3: has done that.
Speaker 4: Of course that's going to have a financial impact.
Speaker 3: It's already said that that will hit profit by about
Speaker 3: nine million pounds for this year. But the bigger impact
Speaker 3: is of course going to be around trust for that
Speaker 3: company and for maybe the broader wealth management industry in
Speaker 3: the UK as well.
Speaker 1: And today ray Matal Shares are on a new South
Speaker 1: Korean joint venture.
Speaker 3: Kloe yeah So Mitaal and the South Korean company LIG
Speaker 3: Defense and Aerospace have agreed to establish a strategic partnership
Speaker 3: to provide air defense systems for the European countries and
Speaker 3: the Native territories as well. So the two companies will
Speaker 3: co develop new missiles and new capabilities for.
Speaker 4: Those air defense systems.
Speaker 3: So that's a very company specific boost that we're getting
Speaker 3: for Ryan Mattau, but then there's a broader context that's
Speaker 3: really helping that defense sector in general. This morning, so
Speaker 3: we had the fifteen billion eurolone agreement for defense between
Speaker 3: the EU and France yesterday, and then of course there's
Speaker 3: this G seven summit happening right now with a lot
Speaker 3: of discussion around Ukraine, around the Middle East, and of
Speaker 3: course that puts defense into the heart of that global agenda.
Speaker 3: There's still a lot to be worked out with the
Speaker 3: situation in Iran.
Speaker 4: Keep saying that things will get.
Speaker 3: Better than the stranghormies will reopen by Friday.
Speaker 4: Eliza in Europe are not so sure.
Speaker 3: So all of this uncertainty that's leading Ryan Mattau, but
Speaker 3: also other names in that sector like Sabon Ba higher
Speaker 3: this morning all.
Speaker 4: In the green.
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