WEBVTT - Unicredit Up, Rathbones Plunges, Rheinmetall 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 1>Let's take a look at some of the stocks on

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<v Speaker 1>the move today in Europe. I'm Lizzie Burden with Caroline Hepka.

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<v Speaker 1>I'm re joined by our Bloomberg reporter, Chloe Melly. Chloe,

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<v Speaker 1>good morning. Let's start off with UniCredit, the Italian lender

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<v Speaker 1>up this morning after Germany rejected its takeover bid for

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<v Speaker 1>Comets Bank. Just tell us more.

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<v Speaker 3>Yeah, absolutely, So this is really the latest in this

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<v Speaker 3>ongoing Commerce Bank Uniticredit saga. So, as you said, Germany

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<v Speaker 3>rejected that takeover bid, saying that the offer does not

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<v Speaker 3>include an appropriate premium and also that Commerce Bank has

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<v Speaker 3>a very important role to play in the domestic economy

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<v Speaker 3>and partly through, for example, the jobs that it creates

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<v Speaker 3>in Frankfurt, where it's really a really big employer, which

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<v Speaker 3>means that it actually must keep its independence. So that's

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<v Speaker 3>what the German government is say, and it's not surprising

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<v Speaker 3>to hear about this rejection. Germany has been very opposed

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<v Speaker 3>to this potential takeover since twenty twenty four when UniCredit

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<v Speaker 3>first took a stake and first made its approach.

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<v Speaker 4>So the story is not done yet though.

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<v Speaker 3>We have this full blown takeover offer that UniCredit made

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<v Speaker 3>in March that will actually likely receive a two week

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<v Speaker 3>extension until July third, so we'll have to keep an

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<v Speaker 3>eye on that. And what's interesting is that for a

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<v Speaker 3>while the implied value of the offer was below the

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<v Speaker 3>market value of commers Bank, but now the discount has

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<v Speaker 3>narrowed quite a bit, so we'll see how shareholders think

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<v Speaker 3>about that. But while we wait for the next steps,

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<v Speaker 3>UniCredit shares are up this morning and commers Bank a

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<v Speaker 3>little bit weaker.

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<v Speaker 5>Yeah, it's really interesting, isn't it. This important kind of

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<v Speaker 5>cross border deal, whether it actually gets done or now,

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<v Speaker 5>it's going to be a massive test for Europe and

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<v Speaker 5>maybe for other similar situations. You know, think about the

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<v Speaker 5>Mario Draky reports. Is meant to be one European kind

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<v Speaker 5>of continent competing globally anyway. Rathbones in the UK, this

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<v Speaker 5>is the wealth manager facing an FCA review.

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<v Speaker 3>Why Yeah, a huge, huge palulenge this morning for the

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<v Speaker 3>wrath Bone shares. So it said that it expects sixty

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<v Speaker 3>million pounds of additional cost over the next two years

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<v Speaker 3>to address the findings from a regulator review from a

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<v Speaker 3>review from the FCA that identified areas of improvement regarding

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<v Speaker 3>how it implements consumer duty guidelines for its consumers and

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<v Speaker 3>then also found deficiencies in aspects of coliant compliance, oversight

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<v Speaker 3>and assurance arrangements. And so that means that Wrathbones has

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<v Speaker 3>to make changes now to its procedures and that it

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<v Speaker 3>will stop onboarding new clients for twelve months until it

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<v Speaker 3>has done that.

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<v Speaker 4>Of course that's going to have a financial impact.

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<v Speaker 3>It's already said that that will hit profit by about

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<v Speaker 3>nine million pounds for this year. But the bigger impact

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<v Speaker 3>is of course going to be around trust for that

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<v Speaker 3>company and for maybe the broader wealth management industry in

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<v Speaker 3>the UK as well.

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<v Speaker 1>And today ray Matal Shares are on a new South

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<v Speaker 1>Korean joint venture.

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<v Speaker 3>Kloe yeah So Mitaal and the South Korean company LIG

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<v Speaker 3>Defense and Aerospace have agreed to establish a strategic partnership

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<v Speaker 3>to provide air defense systems for the European countries and

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<v Speaker 3>the Native territories as well. So the two companies will

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<v Speaker 3>co develop new missiles and new capabilities for.

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<v Speaker 4>Those air defense systems.

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<v Speaker 3>So that's a very company specific boost that we're getting

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<v Speaker 3>for Ryan Mattau, but then there's a broader context that's

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<v Speaker 3>really helping that defense sector in general. This morning, so

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<v Speaker 3>we had the fifteen billion eurolone agreement for defense between

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<v Speaker 3>the EU and France yesterday, and then of course there's

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<v Speaker 3>this G seven summit happening right now with a lot

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<v Speaker 3>of discussion around Ukraine, around the Middle East, and of

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<v Speaker 3>course that puts defense into the heart of that global agenda.

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<v Speaker 3>There's still a lot to be worked out with the

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<v Speaker 3>situation in Iran.

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<v Speaker 4>Keep saying that things will get.

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<v Speaker 3>Better than the stranghormies will reopen by Friday.

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<v Speaker 4>Eliza in Europe are not so sure.

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<v Speaker 3>So all of this uncertainty that's leading Ryan Mattau, but

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<v Speaker 3>also other names in that sector like Sabon Ba higher

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<v Speaker 3>this morning all.

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<v Speaker 4>In the green.

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<v Speaker 2>There the Stockmover's Report from Bloomberg Radio. Check back with

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