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 3: Let's take a look at thumb stocks on the move
Speaker 3: today in Europe. I'm James Wilcock with Stephen Carroll and
Speaker 3: we're joined by Bloomberg's Breaking News editor Louise Moon. First up,
Speaker 3: Louise Wrathbones. It's a tough morning for the UK wealth manager.
Speaker 3: It has been a costly FCA review.
Speaker 4: Yeah, it has.
Speaker 1: Indeed, so there's been a review by the FCA, the
Speaker 1: regulator here in the UK, and essentially as a result,
Speaker 1: Wrathbones are having to pause some of their new onboarding
Speaker 1: of clients. Shares fell as much as eighteen percent as
Speaker 1: a result. This is because of that they need essentially
Speaker 1: to do extra due diligence and that could be up
Speaker 1: to a year, so that they say that they're expecting
Speaker 1: costs of about sixty million pounds over two years as
Speaker 1: a result. And lists well, there's particularly Jeffrey's analysts, I
Speaker 1: should note, are saying that the changes this changes the
Speaker 1: conditions that Rathbones twenty twenty seven targets were based on
Speaker 1: so presumably they'll be delayed in hitting those, so it's
Speaker 1: the scope for a hit of those twenty twenty seven profits.
Speaker 1: As I say, shares fell eighteen percent, the most ever
Speaker 1: for the Welsh manager.
Speaker 4: Okay, so that's on wrath bones.
Speaker 2: St Micro's shares are lower this morning, down over two
Speaker 2: percent at the moment.
Speaker 4: What's driving it.
Speaker 1: So they've offered one point five billion dollars of convertible bonds,
Speaker 1: so essentially they're looking to raise one point five billion
Speaker 1: dollars from selling debt and that will be exchanged into equity.
Speaker 4: This follows their share price.
Speaker 1: It's tripled in value so far this year, so it's
Speaker 1: the third best performer actually in the stocks Europe six
Speaker 1: hundred gage and that's obviously on the back of this
Speaker 1: boom in demand for AI and in particular for data
Speaker 1: center chips.
Speaker 4: Sc Micro, the chip maker.
Speaker 1: It is also kind of the latest of AI related
Speaker 1: companies to sell convertible bonds in recent months. Essentially, these
Speaker 1: companies are looking for cheaper ways to fund investments in
Speaker 1: those spaces, in data centers and those other AI plays
Speaker 1: as well.
Speaker 4: But as you say, shares dipped as a result.
Speaker 1: Essentially there's a risk of dilution, So the convertible bonds
Speaker 1: can lead to more ect issuance investors more likely to
Speaker 1: want to swap their debt into shares. So there's that
Speaker 1: dilution risk there which is pulling shares lower. But as
Speaker 1: I say, they have tripled in value so far this yes,
Speaker 1: still far higher than they were before.
Speaker 3: And so luis LASTI Porsche the car makers enjoying an
Speaker 3: upgrade and Barkery at least, but our trade is taking
Speaker 3: the stock for a ride.
Speaker 1: Well exactly, it's an interesting one. So initially shares rose
Speaker 1: on the back of this. I'd say Barklay's upgraded Porsche
Speaker 1: to equal weight, saying that they see improved investor sentiment
Speaker 1: and a lack of near term negative things negative catalysts,
Speaker 1: noting particularly that shares are recently outperformed peers. They say
Speaker 1: that recent twenty six twenty seven downgrades have already.
Speaker 4: Been digested by the byside.
Speaker 1: It also follows upgrade from Goldman recently, as well as
Speaker 1: upgrade from Ubs recently. These are all in June, and
Speaker 1: it's on the back of Porsche being in the middle
Speaker 1: of this turnaround, so some positive sentiment there, But as
Speaker 1: I say, shares initially rose and then and when they
Speaker 1: rose it was the highest level since March twenty twenty five,
Speaker 1: and then they dipped. So yeah, the potentity being taken
Speaker 1: for a bit of a ride. Maybe there's not as much,
Speaker 1: you know, of that positive sentiment really swirling as being
Speaker 1: indicated by a list. But again in a similar way
Speaker 1: to su Micro, if you look back, shares have since
Speaker 1: they announced their turnaround in March, shares have been heavily rising.
Speaker 1: So as much as there's a small dip this morning,
Speaker 1: there's still a lot higher than they were, so overall
Speaker 1: positivity in terms of their turnaround.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
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