1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,560 --> 00:00:18,160 Speaker 3: Let's take a look at some stocks on the move 5 00:00:18,200 --> 00:00:20,680 Speaker 3: today in Europe. I'm Stephen Carroll and I'm joined Bubloomberg's 6 00:00:20,760 --> 00:00:23,800 Speaker 3: Breaking news editor Louise Moon for more. Louise, let's start 7 00:00:23,800 --> 00:00:26,599 Speaker 3: in the UK with the retailer W. H. Smith on 8 00:00:26,720 --> 00:00:28,360 Speaker 3: news of the resignation of its CEO. 9 00:00:29,480 --> 00:00:32,280 Speaker 1: Indeed, this is quite a dramatic bit of news this morning. 10 00:00:32,400 --> 00:00:35,360 Speaker 1: So their CEO has resigned with the media effect. That is, 11 00:00:35,440 --> 00:00:40,080 Speaker 1: after a independent investigation from Deloitte into an accounting era 12 00:00:40,200 --> 00:00:42,720 Speaker 1: in North America. So this was previously disclosed. It came 13 00:00:42,760 --> 00:00:45,640 Speaker 1: to light in April and at the time it caused 14 00:00:45,680 --> 00:00:48,120 Speaker 1: a Bootsmith to cut its profit outlook in North America 15 00:00:48,159 --> 00:00:52,239 Speaker 1: and shares plunged also at the time. So Deloitte then 16 00:00:52,240 --> 00:00:57,040 Speaker 1: investigated discounting era and released their findings essentially today, so 17 00:00:57,360 --> 00:00:59,840 Speaker 1: they've blamed the problem partly on a lack of oversight. 18 00:01:00,280 --> 00:01:03,560 Speaker 1: And then there was also quite a punchy line saying 19 00:01:03,600 --> 00:01:06,240 Speaker 1: that the US unit had, in their words, insufficient systems, 20 00:01:06,280 --> 00:01:11,319 Speaker 1: controls and review procedures. So WA Smith have announced this 21 00:01:11,360 --> 00:01:13,920 Speaker 1: to market today. They also at the same time set 22 00:01:13,959 --> 00:01:16,520 Speaker 1: out an even bigger hit to the North America unit 23 00:01:16,760 --> 00:01:18,920 Speaker 1: then they had previously forecast, so not good news, and 24 00:01:18,959 --> 00:01:23,119 Speaker 1: the CEO is resigning with immediate effect. Shares only fell 25 00:01:23,160 --> 00:01:25,120 Speaker 1: modestly on the news, and then they're actually now just 26 00:01:25,160 --> 00:01:28,320 Speaker 1: slightly ticking up into the green as analysts are saying 27 00:01:28,360 --> 00:01:32,320 Speaker 1: that they're essentially finding some positives away from the CEO news, 28 00:01:32,360 --> 00:01:34,520 Speaker 1: so they're saying that there is still a long way 29 00:01:34,520 --> 00:01:37,920 Speaker 1: to go to rebuild credibility, but that w Smith have 30 00:01:37,959 --> 00:01:40,880 Speaker 1: given some kind of reassurance on the UK market and 31 00:01:40,920 --> 00:01:42,680 Speaker 1: the West the rest of the world as well, as 32 00:01:42,720 --> 00:01:44,959 Speaker 1: that's a bit of a relief net. Death is lower 33 00:01:44,959 --> 00:01:48,280 Speaker 1: than expected then so there is some potential sill for 34 00:01:48,320 --> 00:01:51,240 Speaker 1: it to return to kind of long term growth, focusing 35 00:01:51,320 --> 00:01:52,560 Speaker 1: on their travel. 36 00:01:52,320 --> 00:01:55,120 Speaker 4: Unit, which is their main unit, and in North America 37 00:01:55,160 --> 00:01:55,520 Speaker 4: as well. 38 00:01:56,640 --> 00:01:58,600 Speaker 3: Okay, so that's a very interesting one to be watching. 39 00:01:58,720 --> 00:02:01,640 Speaker 3: Let's go to France next. The media group for Vendi's 40 00:02:01,680 --> 00:02:04,320 Speaker 3: share is down thirteen percent nearly in Paris. 41 00:02:04,360 --> 00:02:08,600 Speaker 1: What's going on indeed, so the French market regulator has 42 00:02:08,680 --> 00:02:13,359 Speaker 1: essentially said that the Vendi's majority shareholders, so the billionaire 43 00:02:13,440 --> 00:02:17,160 Speaker 1: Vincent Belore and his company must make a public offer 44 00:02:17,280 --> 00:02:20,200 Speaker 1: for the Vendi shares within six months. So what's happened 45 00:02:20,280 --> 00:02:23,240 Speaker 1: is Vendi broke up last year and the regulator says 46 00:02:23,280 --> 00:02:25,120 Speaker 1: that at the time they should have offered to buy 47 00:02:25,160 --> 00:02:28,680 Speaker 1: out other shareholders, so that they already own thirty percent, 48 00:02:28,720 --> 00:02:31,440 Speaker 1: they're they're the majority shareholders, but they should have offered 49 00:02:31,480 --> 00:02:33,919 Speaker 1: to buy out other shareholders at the time, and saying 50 00:02:33,960 --> 00:02:36,880 Speaker 1: that they now should make a bid for the shares 51 00:02:36,919 --> 00:02:39,480 Speaker 1: of what remains of the original company that's still listed. 52 00:02:40,360 --> 00:02:43,480 Speaker 1: So this this kind of falls in favor of an 53 00:02:43,560 --> 00:02:46,760 Speaker 1: activist investor. They've argued that the break up kind of 54 00:02:46,760 --> 00:02:50,040 Speaker 1: gave preferential treatment to Belore over minority shareholders. And it 55 00:02:50,440 --> 00:02:53,480 Speaker 1: all comes down to how much control the company has 56 00:02:53,520 --> 00:02:56,600 Speaker 1: over decisions due to the structure of a Vendi of 57 00:02:56,680 --> 00:02:57,240 Speaker 1: the company. 58 00:02:58,120 --> 00:03:00,400 Speaker 4: So we'll have to say see. 59 00:03:00,280 --> 00:03:04,280 Speaker 1: What happens if this this ruling by the regulator could 60 00:03:04,320 --> 00:03:07,480 Speaker 1: be overturned in appeal, and it's not clear how much 61 00:03:07,480 --> 00:03:10,519 Speaker 1: he would have to offer shareholders. But as you say, 62 00:03:10,639 --> 00:03:13,400 Speaker 1: shares a moving on that news this morning, and you know, 63 00:03:13,440 --> 00:03:16,920 Speaker 1: if this all goes through and shareholders to accept the offer, 64 00:03:16,960 --> 00:03:18,640 Speaker 1: then Vivendi could potentially dealist. 65 00:03:18,680 --> 00:03:20,520 Speaker 4: So we'll be keeping a close eye on what happens 66 00:03:20,520 --> 00:03:20,760 Speaker 4: with that. 67 00:03:21,160 --> 00:03:21,359 Speaker 2: Yeah. 68 00:03:21,400 --> 00:03:25,240 Speaker 3: Indeed, an opinion from the French Advocate General, so one 69 00:03:25,240 --> 00:03:28,200 Speaker 3: of the legal advisors to the court being reported by 70 00:03:28,240 --> 00:03:32,200 Speaker 3: Lamand newspaper this morning. Keep part of that share moving story. 71 00:03:32,480 --> 00:03:36,000 Speaker 3: Let's stay in France though and talk about caring warnings 72 00:03:36,000 --> 00:03:38,600 Speaker 3: that will have to scale back reliance on Gucci. 73 00:03:39,160 --> 00:03:42,520 Speaker 1: Indeed, Yeah, this so this was a report saying, yeah, 74 00:03:42,560 --> 00:03:45,200 Speaker 1: that they would reduce their reliance on Gucci, which is 75 00:03:45,200 --> 00:03:48,320 Speaker 1: obviously Carring's biggest brand, by kind of you know, developing 76 00:03:48,360 --> 00:03:51,960 Speaker 1: other brands and focusing on other ones like Blentciaga. Also 77 00:03:51,960 --> 00:03:54,000 Speaker 1: saying that they would need to scale back their store 78 00:03:54,040 --> 00:03:57,920 Speaker 1: network and have a rethink about their price positioning as well. 79 00:03:57,960 --> 00:04:00,840 Speaker 4: And this is all to return to growth. 80 00:04:01,800 --> 00:04:04,840 Speaker 1: Shares fell on the back of that the most nearly 81 00:04:04,880 --> 00:04:07,720 Speaker 1: two weeks unless is saying it's all quite vague, there's 82 00:04:07,760 --> 00:04:10,880 Speaker 1: no definition of growth targets, there's no kind of hard facts, 83 00:04:11,960 --> 00:04:15,760 Speaker 1: and the report did note that the actual officially official 84 00:04:15,800 --> 00:04:19,440 Speaker 1: strategy plan will be presented next year, so those details 85 00:04:19,520 --> 00:04:22,479 Speaker 1: potentially to come, but it just had to take a 86 00:04:22,520 --> 00:04:24,679 Speaker 1: step back with the wider context. So that the CEO 87 00:04:24,800 --> 00:04:27,360 Speaker 1: joined in June, and he was very welcome by investors. 88 00:04:28,320 --> 00:04:30,520 Speaker 1: And one of the key things was was a revival 89 00:04:30,520 --> 00:04:33,599 Speaker 1: of Gucci. So that hasn't yet happened. He has made 90 00:04:33,600 --> 00:04:36,400 Speaker 1: some changes, there's a new boss and you vowing to 91 00:04:36,440 --> 00:04:39,719 Speaker 1: cut costs and other measures. But all of these efforts 92 00:04:39,720 --> 00:04:41,920 Speaker 1: pointed to a revival, but potentially a bit of a 93 00:04:42,000 --> 00:04:45,000 Speaker 1: change in tone now saying that that Caring must reduce 94 00:04:45,040 --> 00:04:48,080 Speaker 1: their alliance on Gucci, so shares not reacting positively on 95 00:04:48,120 --> 00:04:48,640 Speaker 1: the back of that. 96 00:04:50,200 --> 00:04:54,200 Speaker 2: The Stock Mover's report from Bloomberg Radio. 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