WEBVTT - Akzo Nobel Plunges, Inditex Up, B&M Cuts

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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>Now, let's take a look at some of the stocks

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

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<v Speaker 1>London alongside Stephen Carroll in Brussels and were joined by

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<v Speaker 1>Boomberg reporter Chloe Melly. So Clarie, let's start with Axo

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<v Speaker 1>no bell a dark hue from them this morning.

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<v Speaker 3>That's great, great stuff, Lizzie. So, Exo Nobel the paint maker,

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<v Speaker 3>and the suitors for Exo have backed off. So Nippon

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<v Speaker 3>Paint and Sherwin Williams have now ended their effort to

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<v Speaker 3>buy Exo Noobel, which means that EXO will go ahead

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<v Speaker 3>with its merger its planned merger with Exalter Coatings instead.

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<v Speaker 3>So EXOD rejected two offers from those two firms. So

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<v Speaker 3>the latest actually valued at twelve point five billion euros

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<v Speaker 3>and it involved plans to break up the business, but

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<v Speaker 3>it said that the agreement that it had with ex

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<v Speaker 3>which was agreed in November last year, was actually superior,

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<v Speaker 3>and so that's led to a massive plunge in the

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<v Speaker 3>chars this morning, so big reversal from the massive jump

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<v Speaker 3>that we had seen when Axo revealed that it had

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<v Speaker 3>received and then subsequently rejected those offers, and so the

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<v Speaker 3>sell off as actually eraised all of those prior gains.

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<v Speaker 3>And now the context behind this kind of m and

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<v Speaker 3>A activity in the paint making sector is that those

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<v Speaker 3>companies are chemical companies, and so they are dealing with

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<v Speaker 3>the same things that this chemical sector is dealing with,

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<v Speaker 3>which is really high raw materials costs, and then also

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<v Speaker 3>a lot of weakness in end markets and markets like

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<v Speaker 3>the industrial or the automotive and markets, and so this

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<v Speaker 3>creates this need for scale for consolidation in this sector,

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<v Speaker 3>and so we are seeing that. So we'll probably be

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<v Speaker 3>hearing more from this pain making sector. But in the

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<v Speaker 3>meantime we're getting and exalt merging apparently.

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<v Speaker 2>Okay, so that's actual abround the paint space. We're going

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<v Speaker 2>to go to the high street next into Text, the

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<v Speaker 2>owner of Zara and other fashion brands say the high

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<v Speaker 2>streets giving high margins.

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<v Speaker 3>Yes, so Zarah owner Intertext is doing very well. So

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<v Speaker 3>said that growth had really picked up at the start

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<v Speaker 3>of its second quarter. So it has the quarter that

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<v Speaker 3>starts in May, is what it means. So that came

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<v Speaker 3>as a relief for investors that have been obviously really

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<v Speaker 3>worried about the impact of the Iran war on retailers.

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<v Speaker 3>Of course, that's the sector that's been dealing with really

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<v Speaker 3>high energy costs, high shipping costs, and then at the

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<v Speaker 3>same time lower consumer spending. But it seems that Intertext

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<v Speaker 3>is quite resilient within this quite tough backdrop. It's benefited

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<v Speaker 3>from a strategy of investing in very big flagship stores

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<v Speaker 3>and then also trying to move more towards the higher

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<v Speaker 3>end of the fashion market because the lower end is

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<v Speaker 3>where it's actually much more competitive, because we've got names

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<v Speaker 3>like Sheen for example, really lowering prices, and so for investors,

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<v Speaker 3>this update from Intertext this morning was really seen as

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<v Speaker 3>evidence that it can probably better whether this current environment,

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<v Speaker 3>which is getting actually more and more difficult than some

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<v Speaker 3>of its peers, and perhaps it can do better than

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<v Speaker 3>a company's like H and M, which has actually been

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<v Speaker 3>seeing a bit of weakness. And so we were seeing

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<v Speaker 3>shares in Intertext rising on the back of this update,

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<v Speaker 3>which was seen as really reassuring from that retail perspective.

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<v Speaker 1>Were saying in retail, but moving to the bargain bin

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<v Speaker 1>because B and M seems to be really flying this morning.

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<v Speaker 3>Why, yeah, absolutely, So this is another positive retail story

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<v Speaker 3>for B and M. The context is that BNM has

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<v Speaker 3>had a very tough year, so the profit is actually down.

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<v Speaker 3>It's had to implement the big strategy reset in October

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<v Speaker 3>after a lot of poor execution has led to a

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<v Speaker 3>pressure on sales growth, and then there's of course still

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<v Speaker 3>that backdrop of a low consumer sentiment the prospect of

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<v Speaker 3>potentially higher interest rates as well in the UK. But

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<v Speaker 3>what the stock is reacting to today very positively is

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<v Speaker 3>that despite all of those challenges, B and M was

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<v Speaker 3>actually quite optimistic for the future. So it's said that

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<v Speaker 3>is starting to see some of the benefits of this turnaround.

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<v Speaker 3>Mented in October said that BNM UK in particular was

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<v Speaker 3>on track to return to higher and stronger margins and

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<v Speaker 3>also that it will actually be able to upset the

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<v Speaker 3>impact from those higher energy costs and higher shipping costs

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<v Speaker 3>as well, and so this is very positive. It also

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<v Speaker 3>echoes what we heard from Debenham's as well this morning,

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<v Speaker 3>formerly known as Boohoo, which actually was even more bullish.

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<v Speaker 3>It said that it expects very strong momentum this year

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<v Speaker 3>after returning to growth for this quarter. So maybe UK

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<v Speaker 3>retail is actually doing fairly well and better than feared.

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<v Speaker 2>Really. The Stock Movers report from Bloomberg Radio. Check back

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<v Speaker 2>with us throughout the day for the latest roundup of

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