WEBVTT - Anglo American Surges, Monte Paschi Up, Saab Dips 

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<v Speaker 1>The fed's top names are on Bloomberg Radio, Boston FED

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<v Speaker 1>President Susan Collins.

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<v Speaker 2>I would say it's not a done deal in terms

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<v Speaker 2>of what we do at the next meeting.

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<v Speaker 1>Chicago FED President Austin Goilsby. I want to get more information.

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<v Speaker 1>I'm still undecided. Richmond FED President Thomas Barkin.

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<v Speaker 3>Absolutely critical the independence of the FED. That does not

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<v Speaker 3>mean that is not held accountable.

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<v Speaker 1>For the latest headlines from the FED, listen on Bloomberg

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<v Speaker 4>My mom has taken up going to the park to

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<v Speaker 1>How is Africa riding the crypto wave?

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<v Speaker 6>Why are record, coffee prices, a double edged sword, and

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<v Speaker 6>what do China's economic woes mean for African debt. I'm

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<v Speaker 6>Jennifer Zabasaja. Join me for Next Africa, a podcast from

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<v Speaker 4>Influential conversations from Bloomberg Television. Here's Matt Miller and Danny Berger.

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<v Speaker 7>Joining us now is Faru Katwari. Ethan Allen Chairman, President

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<v Speaker 7>and CEO. Ethan Allen manufacturers about seventy five percent of

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<v Speaker 7>its furniture in North America, about half in the US.

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<v Speaker 7>How are you setting up for these potential new taxes totys?

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<v Speaker 3>Back when manufacturing was leaving the United States, we decided

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<v Speaker 3>that we will stay in North America. Not an easy decision. Well,

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<v Speaker 3>it has given us a good opportunity. First is we

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<v Speaker 3>had to make sure that we had the more efficient

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<v Speaker 3>manufacturer in the United States. We've been very fortunate to

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<v Speaker 3>have great talent. We've got to treat them well. And

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<v Speaker 3>technology is important to right well, can I ask.

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<v Speaker 8>You then about that twenty five percent of your supply

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<v Speaker 8>chain that is still coming not from North America, with

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<v Speaker 8>those tariffs looming already some tariffs being put on them.

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<v Speaker 8>How are you thinking about it? What are you planning

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<v Speaker 8>to do with it? Do you adjust or do you

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<v Speaker 8>take the tariff hit.

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<v Speaker 3>A lot of that is affecting what we call non

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<v Speaker 3>furniture products, like for instant, accessory products, textile products, rugs,

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<v Speaker 3>some furniture also. I think as we go forward, we're

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<v Speaker 3>looking at two things. One is sharing with our partners

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<v Speaker 3>overseas and then then taking some price increases. And we

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<v Speaker 3>go to see both of that in the next few months.

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<v Speaker 1>This is a Blueberg Business flash.

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<v Speaker 9>Hey fifty three am in the city of London. GOODBONI

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<v Speaker 9>I'm Caroline HPKA. Your pinstocks are actually up by a

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<v Speaker 9>tenth of one percent, and even cat cow stocks gaining

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<v Speaker 9>four tenths of one percent. Is this something of a

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<v Speaker 9>relief rally as investors look to the next move in

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<v Speaker 9>terms of the appointment of a new premiere by Imanue

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<v Speaker 9>and Macon in Paris. In terms of the euro, right

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<v Speaker 9>now we trade at one seventeen fifty three softter a

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<v Speaker 9>tenth of one percent against a weaker US dollar. The

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<v Speaker 9>pound is firm on cable two tenths of one percent.

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<v Speaker 9>There's not much data, to be honest, to drive markets today.

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<v Speaker 9>We're waiting for the CPI, the PPI data out of

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<v Speaker 9>the US, and then the ECB rate decision and the

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<v Speaker 9>Fed next week. Obviously, S and P five hundred emaanies

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<v Speaker 9>are up by a tenth of one percent for futures

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<v Speaker 9>after we got close to it yes another record a yesterday,

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<v Speaker 9>and just last the gold is currently up to tens

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<v Speaker 9>of one percent. Keeping an arm that those are the

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<v Speaker 9>markets this hour.

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<v Speaker 2>Let's take a look at some stocks on the move

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<v Speaker 2>today in Europe. I'm Tom McKenzie with Caroline Hepcutt. We

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<v Speaker 2>are joined by Bloomberg reporter Chloe Melle and Chloe Anglo American.

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<v Speaker 2>The mining stocks very much in focus. This is a

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<v Speaker 2>Bloomberg scoop around a potential merger, and my goodness, the

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<v Speaker 2>move on Anglo is impressive, isn't it? Up seven point

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<v Speaker 2>seven percent right now? They're leading European stock in terms

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<v Speaker 2>of the gains coming through talk us through that mining

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<v Speaker 2>potential mining deal and what it's doing to the rest

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<v Speaker 2>of the sector.

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<v Speaker 9>Yeah.

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<v Speaker 10>Absolutely, So. Anglo American has agreed to combine with Tech

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<v Speaker 10>Resources over in Canada, as you said, and that would

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<v Speaker 10>be one of the biggest mining deals in over a decade.

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<v Speaker 10>This is a so called zero premium deal, which means

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<v Speaker 10>that there's a target company that is not offered a

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<v Speaker 10>premium over its current market value, so that's why they

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<v Speaker 10>called it a merger of equals. Anglo willpaid's investors four

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<v Speaker 10>point five billion dollar special dividend ahead of the combination,

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<v Speaker 10>which might to explain why that share price is up

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<v Speaker 10>and makes investors quite happy. It's interesting because both companies

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<v Speaker 10>have actually been pursued by bigger miners in recent years.

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<v Speaker 10>So we remember last year Anglo American fighting off the

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<v Speaker 10>approach from BHP. Glen Core was also was also tried

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<v Speaker 10>to buy a Tech in twenty twenty three, so maybe

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<v Speaker 10>that Tech and Anglo bonded over that. But there's been

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<v Speaker 10>a bit of a deal making frenzy over the last

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<v Speaker 10>couple of years in that mining sector, and so it's

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<v Speaker 10>worth keeping in mind that the announcement of the deal

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<v Speaker 10>could actually kick off new bids for Tech or Anglo

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<v Speaker 10>American on the back of that.

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<v Speaker 9>Yeah. Absolutely, it's interesting, isn't it. That's combined value. I mean,

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<v Speaker 9>something like fifty billion dollars is a safety billionaire in

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<v Speaker 9>terms of other stocks that we're thinking about. Then, So

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<v Speaker 9>that massive M and A deal aside outlook for the

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<v Speaker 9>Italian lender Monte Depasci after announce a take of Media Banker.

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<v Speaker 10>Yes, so more M and A news is actually quite

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<v Speaker 10>an M and A focus day to day is actually

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<v Speaker 10>was founded in fourteen seventy two. That's a fun little tidbits.

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<v Speaker 10>Considered is considered to be the world's oldest bank still

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<v Speaker 10>on operation. It's finally worn control over Medio Banker. So

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<v Speaker 10>this is a sixteen billion euro takeover deal and that

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<v Speaker 10>will create Italy's third largest bank with two hundred and

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<v Speaker 10>thirty billion euros in assets. This is kind of the

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<v Speaker 10>combination of a really impressive turnaround for Monte Tepesci, which

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<v Speaker 10>was nationalized in twenty seventeen, which is really not that

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<v Speaker 10>long ago and has only recently emerged from a really

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<v Speaker 10>deep restructuring. A lot of that is thanks to the

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<v Speaker 10>current CEO who managed to kind of boost profitability, which

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<v Speaker 10>in turn lifted the share price and then allowed the

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<v Speaker 10>government to sell down at that stake. The new deal

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<v Speaker 10>is also good news for Prime Minister Georgia Maloney, who

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<v Speaker 10>has been keen for a long time to establish a

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<v Speaker 10>new large lender that could kind of rival UniCredit in Tessa,

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<v Speaker 10>and that announcement of that deal really lifted the shares

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<v Speaker 10>for both Paski and also Medio Banker.

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<v Speaker 2>This morning, in terms of the fence Tech, SAB is down,

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<v Speaker 2>so it's feeling a bit of pressure.

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<v Speaker 1>The stock is under a bit of pressure today.

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<v Speaker 2>What is the rationale behind that on a day where

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<v Speaker 2>we have a massive defense event taking place here in London.

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<v Speaker 10>Yeah, so SAB was initiated at rating at Barkley's this morning,

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<v Speaker 10>which explains that weakness in the shares. It's perhaps not

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<v Speaker 10>as well positioned as some other pits in that defense

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<v Speaker 10>sector to take advantage fully of all that military build

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<v Speaker 10>up and defense spending that we see across Europe. It

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<v Speaker 10>also comes just a few days after another underweight rating

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<v Speaker 10>that it got at Morgan Stanley with and is being

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<v Speaker 10>quite cautious of the expectations for that sector, maybe being

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<v Speaker 10>a little bit too lofty. The Morgan Stanley analyst had

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<v Speaker 10>said that consensus was already fifty percent ahead of saab's

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<v Speaker 10>expansion targets, despite some risks with the execution. So something

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<v Speaker 10>kind of worth keeping in mind with that European defense

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<v Speaker 10>sector and the expectations that are being put on it.

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<v Speaker 9>Yeah, okay, so that's as we look at SARB and

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<v Speaker 9>these stocks to watch this morning. Thank you so much

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<v Speaker 9>Chloe for being with us cloone Millay there with our

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<v Speaker 9>Stock Movers reports. You can listen to those five minute

0:08:07.160 --> 0:08:09.360
<v Speaker 9>audio reports or the biggest winners and losers in the

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<v Speaker 9>stock market. Subscribe to Stock Movers on Apple podcast, Spotify

0:08:13.080 --> 0:08:15.920
<v Speaker 9>or anywhere else you listen. I was just picking up

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<v Speaker 9>on the defense story, so I was talking actually ahead

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<v Speaker 9>of this event. So London's opening the doors to thousands

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<v Speaker 9>of people who are coming for one of the biggest

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<v Speaker 9>defense events on the calendar in the year is happening

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<v Speaker 9>at Docklands, and it's the d SEI This is Defense

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<v Speaker 9>and Security Equipment International event. It's usually an event that

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<v Speaker 9>only kind of insiders go to, all though very big

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<v Speaker 9>company names. But now there is so much focus on

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<v Speaker 9>defense m and A on contracts after the UK one,

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<v Speaker 9>the shipbuilding deal for Norway for new frigates. It's going

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<v Speaker 9>to be a very very interesting event, isn't it.

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<v Speaker 2>Yeah. I'll be on the ground there later today as well,

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<v Speaker 2>having a look at what's being on, what's being displayed,

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<v Speaker 2>and speaking to executives and to your point of course,

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<v Speaker 2>at a time when the UK, France, Germany specifically are

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<v Speaker 2>spending heavily on defense and see, it's pretty consequential.

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<v Speaker 9>Okay, that's the one story we're thinking about today, but

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<v Speaker 9>also we'll bring you the latest on France in the

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<v Speaker 9>next part of Bloomberg Day, Baker, We're live from London

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<v Speaker 9>and Paris this morning. This is Gloomberg.

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