WEBVTT - Vistry Falls, Aumovio Rises, Plus500 Gains

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.920 --> 0:00:18.360
<v Speaker 1>Now, let's take a look at some of the stocks

0:00:18.360 --> 0:00:21.079
<v Speaker 1>on the move today in Europe. Pamsy burdened with Stephen

0:00:21.160 --> 0:00:25.040
<v Speaker 1>Carroll and were joined by Bloomberg reporter Chloe Melley. Chloe,

0:00:25.360 --> 0:00:27.680
<v Speaker 1>there's really not much doing when it comes to the

0:00:27.720 --> 0:00:31.000
<v Speaker 1>index level. So let's pick out one stock here in

0:00:31.040 --> 0:00:34.279
<v Speaker 1>the UK, British home builder Vistry. Why is it having

0:00:34.320 --> 0:00:35.240
<v Speaker 1>a difficult morning?

0:00:35.560 --> 0:00:38.040
<v Speaker 3>Yeah, so there was a report over the weekend from

0:00:38.080 --> 0:00:42.640
<v Speaker 3>the ft that the credit insurer Allion's Trade was reducing

0:00:42.680 --> 0:00:46.480
<v Speaker 3>the cover extended to suppliers of Vistory. So the way

0:00:46.520 --> 0:00:50.280
<v Speaker 3>it works is that suppliers buy credit insurance to protect

0:00:50.280 --> 0:00:53.640
<v Speaker 3>themselves in case their customers failed to pay for goods

0:00:53.640 --> 0:00:56.960
<v Speaker 3>and services, and so when coverage is withdrawn or reduced

0:00:56.960 --> 0:01:00.440
<v Speaker 3>in this case, suppliers may request payment upfront. And so

0:01:00.960 --> 0:01:04.280
<v Speaker 3>that essentially means for Vistory that it's cash flow, which

0:01:04.319 --> 0:01:07.800
<v Speaker 3>is already under pressure, could be squeezed even further. So

0:01:07.840 --> 0:01:10.040
<v Speaker 3>it's already having a difficult time. You know, there's been

0:01:10.880 --> 0:01:13.920
<v Speaker 3>this slowdown in the housing market that's impacted all of

0:01:13.959 --> 0:01:16.720
<v Speaker 3>the home builders here in the UK, but Vistory has

0:01:16.760 --> 0:01:19.839
<v Speaker 3>been under particular pressure right now. It's in the middle

0:01:19.840 --> 0:01:22.800
<v Speaker 3>of a big turnaround with a focus on trying to

0:01:22.880 --> 0:01:25.640
<v Speaker 3>generate cash to pay down its debt, and so this

0:01:25.800 --> 0:01:28.800
<v Speaker 3>change made to credit insurance has the potential to be

0:01:29.120 --> 0:01:32.280
<v Speaker 3>a really massive headwind for this company. And so this

0:01:32.360 --> 0:01:35.520
<v Speaker 3>explains the quite significant hit that we've seen to the

0:01:35.600 --> 0:01:36.440
<v Speaker 3>shares this morning.

0:01:37.280 --> 0:01:38.399
<v Speaker 2>Okay, so that's on Vistree.

0:01:38.480 --> 0:01:40.960
<v Speaker 1>Let's go to Germany next, the Autopartes Rate or Ammovia,

0:01:41.040 --> 0:01:44.680
<v Speaker 1>which is seeing shares rising this morning after an analyst upgrade.

0:01:44.880 --> 0:01:48.840
<v Speaker 3>Yeah. So Bunstein Analysts of upgraded Homovia to a by

0:01:48.960 --> 0:01:53.120
<v Speaker 3>rating and essentially really highlighting the cost discipline from the

0:01:53.200 --> 0:01:56.560
<v Speaker 3>company and saying that the firm had clearly proven that

0:01:56.600 --> 0:02:01.400
<v Speaker 3>it can cost ahead of expectations. Also said that the

0:02:01.440 --> 0:02:04.760
<v Speaker 3>second quarter results which came last week were very strong

0:02:04.800 --> 0:02:07.400
<v Speaker 3>and really acted as a sort of clearing event for

0:02:07.440 --> 0:02:09.640
<v Speaker 3>the stock, which means that it is now in a

0:02:09.639 --> 0:02:12.240
<v Speaker 3>position where it can boost shareholder returns and it can

0:02:12.320 --> 0:02:16.079
<v Speaker 3>also probably beat expectations going forward as well into twenty

0:02:16.160 --> 0:02:20.560
<v Speaker 3>twenty seven. The analyst also noted that the resolution of

0:02:20.600 --> 0:02:25.160
<v Speaker 3>a dispute between BMW and Amovia was also a positive thing.

0:02:25.840 --> 0:02:29.600
<v Speaker 3>So this was an issue around the breaking system from Ammovia,

0:02:29.680 --> 0:02:33.320
<v Speaker 3>which had prompted BMW to recall about one point five

0:02:33.440 --> 0:02:36.520
<v Speaker 3>million cars, and so there was a settlement of three

0:02:36.639 --> 0:02:40.120
<v Speaker 3>hundred and fifty million euros and so that means that

0:02:40.160 --> 0:02:43.880
<v Speaker 3>there's no longer this issue sort of hanging over at Ammovio,

0:02:44.080 --> 0:02:47.360
<v Speaker 3>and so this is obviously quite positive. Amovia is also

0:02:47.400 --> 0:02:50.400
<v Speaker 3>flagged that it will have the possibility of having a

0:02:50.440 --> 0:02:54.359
<v Speaker 3>buyback after this settlement. So essentially Benstein thinks Tomovia is

0:02:54.400 --> 0:02:57.400
<v Speaker 3>in great shape and has that potential for more shareholder returns,

0:02:57.440 --> 0:03:00.320
<v Speaker 3>which of course is something that analysts and investors always

0:03:00.360 --> 0:03:01.160
<v Speaker 3>quite excited about.

0:03:01.280 --> 0:03:03.959
<v Speaker 1>And finally, Clarie has many happy returns for trading firm

0:03:04.080 --> 0:03:05.919
<v Speaker 1>plus five hundred tell us more.

0:03:06.120 --> 0:03:09.480
<v Speaker 3>Yeah, plus five hundred is a trading platform that's doing

0:03:09.639 --> 0:03:11.720
<v Speaker 3>very well. So they had a trading update a little

0:03:11.760 --> 0:03:14.120
<v Speaker 3>bit earlier this earning season and now came out with

0:03:14.160 --> 0:03:17.440
<v Speaker 3>the full first half results which are really positively solid,

0:03:17.960 --> 0:03:20.960
<v Speaker 3>and then also announced a buyback and some and dividend

0:03:21.000 --> 0:03:24.360
<v Speaker 3>as well. Which of course was welcomed by investors. The

0:03:24.400 --> 0:03:26.520
<v Speaker 3>company said, the first half of the year had been

0:03:26.560 --> 0:03:29.800
<v Speaker 3>really outstanding period for the company. It's been sort of

0:03:29.840 --> 0:03:34.800
<v Speaker 3>widening is geographic footprint. It's also making headway into new

0:03:34.920 --> 0:03:39.120
<v Speaker 3>sort of areas of prediction markets. For example, recently with Launch,

0:03:39.160 --> 0:03:42.040
<v Speaker 3>they launched sports contracts and so that's proven to be

0:03:42.160 --> 0:03:45.800
<v Speaker 3>quite popular and there's just been generally a real enthusiasm

0:03:46.000 --> 0:03:48.640
<v Speaker 3>among retail investors. Of course, some of that might have

0:03:48.720 --> 0:03:51.760
<v Speaker 3>to do with the share volatility in markets that we

0:03:51.840 --> 0:03:54.880
<v Speaker 3>have seen recently, and so all of that has resulted

0:03:54.920 --> 0:03:58.560
<v Speaker 3>in some very strong, very solid numbers for that trading platform,

0:03:58.800 --> 0:04:02.040
<v Speaker 3>and that's driven a big shap price boost. This morning.

0:04:03.840 --> 0:04:08.040
<v Speaker 2>The Stockmover's Report from Bloomberg Radio. Check back with us

0:04:08.120 --> 0:04:10.920
<v Speaker 2>throughout the day for the latest roundup of companies making

0:04:10.960 --> 0:04:14.600
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:04:14.800 --> 0:04:18.799
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:18.839 --> 0:04:21.919
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:21.960 --> 0:04:23.320
<v Speaker 2>Bloomberg Business app.