WEBVTT - StanChart's Swing, Telefonica & Unite Earnings

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.920 --> 0:00:18.280
<v Speaker 3>Now, let's take a look at some of the stocks

0:00:18.280 --> 0:00:20.360
<v Speaker 3>on the move today in Europe. I'm Lizzie Burden with

0:00:20.360 --> 0:00:23.320
<v Speaker 3>Stephen Carroll and were joined by Bloomberg's Breaking News editor

0:00:23.640 --> 0:00:27.520
<v Speaker 3>Louise Moon. Louise, let's start with Standard Chartered. Promising light

0:00:27.760 --> 0:00:28.639
<v Speaker 3>at the end of the tunnel.

0:00:29.120 --> 0:00:33.040
<v Speaker 4>Indeed, yeah, it's not necessarily benefiting their share price too

0:00:33.120 --> 0:00:36.479
<v Speaker 4>much today, kind of fluctuating up and down a bit

0:00:36.640 --> 0:00:39.279
<v Speaker 4>in London this morning and rising over in Hong Kong.

0:00:39.280 --> 0:00:41.920
<v Speaker 4>Obviously sunder Charters is listed in both. This was the

0:00:42.000 --> 0:00:44.559
<v Speaker 4>fourth quarter results, so they were weaker than expected, so

0:00:44.800 --> 0:00:47.760
<v Speaker 4>that side not positive, but as you say, promising things

0:00:47.840 --> 0:00:51.040
<v Speaker 4>are more positive in the future. They gave quite upbeat

0:00:51.200 --> 0:00:56.040
<v Speaker 4>guidance overall. Bloomberg Intelligence says that underscores a solid profitability

0:00:56.160 --> 0:00:59.000
<v Speaker 4>momentum for them, and they also issued a one point

0:00:59.040 --> 0:01:02.960
<v Speaker 4>five billion dollar buy back, so two sets of quite

0:01:03.200 --> 0:01:09.440
<v Speaker 4>good news essentially kind of painting the picture of positivity

0:01:09.640 --> 0:01:13.600
<v Speaker 4>going forward. That's obviously after their CFO quite abruptly left

0:01:13.640 --> 0:01:16.959
<v Speaker 4>earlier this month. He was seen as the inside front

0:01:17.000 --> 0:01:19.800
<v Speaker 4>runner to replace the CEO. Bill Winter's. Bill Winter's obviously

0:01:19.959 --> 0:01:21.800
<v Speaker 4>been there a long term. He's the longest serving boss

0:01:21.800 --> 0:01:26.280
<v Speaker 4>of a UK bank and the and he continues to

0:01:26.319 --> 0:01:30.120
<v Speaker 4>stay exactly so the CFO left at the time on

0:01:30.160 --> 0:01:32.120
<v Speaker 4>the day the shears tumbled quite a bit, kind of

0:01:32.200 --> 0:01:37.000
<v Speaker 4>reversed or slightly unraveled huge gains that Standard Chartered had

0:01:37.080 --> 0:01:40.720
<v Speaker 4>last year. So this update today was kind of seen

0:01:40.760 --> 0:01:43.400
<v Speaker 4>as a bit of a staying the course Standard Chartered,

0:01:43.480 --> 0:01:45.959
<v Speaker 4>you know, positivity going forward. Bill Winter saw the Bloomberg

0:01:46.040 --> 0:01:48.320
<v Speaker 4>TV saying, you know, they're not missing a beat.

0:01:48.880 --> 0:01:49.880
<v Speaker 1>It's full speed ahead.

0:01:49.920 --> 0:01:52.320
<v Speaker 4>They're investing substantially, they're going to set out in new

0:01:52.320 --> 0:01:53.120
<v Speaker 4>strata in May.

0:01:53.360 --> 0:01:55.000
<v Speaker 1>He wants to see it through. As you say, he's

0:01:55.600 --> 0:01:56.040
<v Speaker 1>staying on.

0:01:56.440 --> 0:02:00.080
<v Speaker 4>So, yeah, it seems as though, you know, positivity, but

0:02:00.200 --> 0:02:01.120
<v Speaker 4>Vester's potentially need.

0:02:01.000 --> 0:02:03.960
<v Speaker 1>A bit more convincing here in London as it stands.

0:02:04.360 --> 0:02:07.000
<v Speaker 2>Yeah, indeed, show so nine tens of one percent currently,

0:02:07.120 --> 0:02:11.800
<v Speaker 2>let's go to Spain next and Telefanaica some strengthen key markets,

0:02:11.800 --> 0:02:14.080
<v Speaker 2>helping to offset weakness that they've seen elsewhere.

0:02:14.360 --> 0:02:17.639
<v Speaker 4>Yeah, indeed, they also had their fourth quarter earnings essentially

0:02:17.720 --> 0:02:20.200
<v Speaker 4>kind of came in line as expected, met analyst estimates.

0:02:20.680 --> 0:02:23.480
<v Speaker 4>As you say, so there's growth in Spain and Brazil

0:02:24.000 --> 0:02:28.320
<v Speaker 4>and that helped offset weakness in other European markets, so

0:02:28.360 --> 0:02:31.320
<v Speaker 4>as I say, it came kind of in line. They

0:02:31.320 --> 0:02:33.040
<v Speaker 4>also said that free cash flower this year will be

0:02:33.040 --> 0:02:36.320
<v Speaker 4>about three billion euros, also kind of in line with expectations.

0:02:36.760 --> 0:02:40.960
<v Speaker 4>Shares rose very slightly, but you know, it kind of

0:02:41.360 --> 0:02:45.200
<v Speaker 4>indicates our points to a bit of stability. Having if

0:02:45.240 --> 0:02:48.639
<v Speaker 4>you look back at their stock, they've fallen about fifteen

0:02:48.680 --> 0:02:51.560
<v Speaker 4>percent since they issued a new strategic plan in November

0:02:51.639 --> 0:02:53.800
<v Speaker 4>last year, so it's a bit of even though it's

0:02:53.840 --> 0:02:57.040
<v Speaker 4>in line, it's showing a bit of stability and shares

0:02:57.440 --> 0:02:59.959
<v Speaker 4>rising just slightly on the back of that in morning trading.

0:03:00.040 --> 0:03:03.000
<v Speaker 3>And we've seen some weakness for Unite, an unlikely victim

0:03:03.080 --> 0:03:06.080
<v Speaker 3>of the UK's migration debate across This isn't the Union,

0:03:06.200 --> 0:03:07.600
<v Speaker 3>it's the student accommodation group.

0:03:07.840 --> 0:03:12.399
<v Speaker 4>Yeah, so they have accommodation across the UK for universities predominantly.

0:03:12.480 --> 0:03:18.040
<v Speaker 4>So overall demand fell two kind of key headwinds being one,

0:03:18.200 --> 0:03:22.720
<v Speaker 4>as you say, international demand and two overbuilding in some areas.

0:03:22.720 --> 0:03:24.240
<v Speaker 1>So it's a bit of a mixed set of results.

0:03:24.240 --> 0:03:28.240
<v Speaker 4>So for international applications, they continued assentiity to prove a

0:03:28.240 --> 0:03:31.480
<v Speaker 4>weak spot, so they did grow, but not that well.

0:03:31.960 --> 0:03:33.679
<v Speaker 4>The strength there was China. China was a bit of

0:03:33.680 --> 0:03:37.440
<v Speaker 4>an exception. I think it was bookings for Chinese students

0:03:37.560 --> 0:03:40.800
<v Speaker 4>rose about ten percent to last year. And then aside

0:03:40.840 --> 0:03:43.240
<v Speaker 4>from that, there's some other interesting commentary. They've seen a

0:03:43.240 --> 0:03:45.720
<v Speaker 4>small uptick and students planning to live at home, which

0:03:45.760 --> 0:03:49.120
<v Speaker 4>is quite interesting. And then in terms of the positive

0:03:49.200 --> 0:03:52.080
<v Speaker 4>end of it is that demand was strongest at higher

0:03:52.160 --> 0:03:56.640
<v Speaker 4>quality universities, so UNITE are kind of shifting their portfolio

0:03:56.680 --> 0:03:59.960
<v Speaker 4>to reflect that sty're focusing more on those higher end universe.

0:04:00.360 --> 0:04:02.680
<v Speaker 4>I'd say it was slightly mixed out of results with

0:04:02.800 --> 0:04:06.160
<v Speaker 4>all those different sectors bringing some some interesting kind of

0:04:07.240 --> 0:04:11.240
<v Speaker 4>reflections on what's going on in the in the university world.

0:04:11.280 --> 0:04:14.600
<v Speaker 4>But shares slumped. Barkley saying that NITTOM outlook is challenging.

0:04:14.920 --> 0:04:18.159
<v Speaker 4>JP Morgan saying that the results confirm expectations of a

0:04:18.160 --> 0:04:20.279
<v Speaker 4>bit of a bumpy ride. Are the saying, you know,

0:04:20.640 --> 0:04:22.760
<v Speaker 4>it's enough to maintain quite a cautious stance, So it

0:04:22.880 --> 0:04:25.880
<v Speaker 4>just shows the situation in the university at.

0:04:25.839 --> 0:04:27.720
<v Speaker 1>The moment at how that's reflecting through accommodation.

0:04:27.760 --> 0:04:32.000
<v Speaker 2>Before you know, the Stock Movers report from Bloomberg Radio.

0:04:32.520 --> 0:04:34.680
<v Speaker 2>Check back with us throughout the day for the latest

0:04:34.720 --> 0:04:37.919
<v Speaker 2>roundup of companies making news on Wall Street and for

0:04:38.000 --> 0:04:41.960
<v Speaker 2>the latest market moving headlines. Listen to Bloomberg Radio Live,

0:04:42.360 --> 0:04:45.960
<v Speaker 2>catch us on YouTube, Bloomberg dot com, and on Applecarplay

0:04:45.960 --> 0:04:48.559
<v Speaker 2>and Android Auto with the Bloomberg Business app.