1 00:00:02,520 --> 00:00:07,360 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 00:00:16,600 --> 00:00:18,640 Speaker 3: Let's take a look at some of the individual stocks 5 00:00:18,680 --> 00:00:20,960 Speaker 3: on the move today here in Europe. I'm Caroline Hepga 6 00:00:21,079 --> 00:00:23,920 Speaker 3: and I'm joined by Blueberg reporter Chloe Mala. Good morning, 7 00:00:24,000 --> 00:00:26,799 Speaker 3: Good morning. Let's start with Akado shares in the online 8 00:00:26,840 --> 00:00:30,800 Speaker 3: grosser got some really bad news this week. What's happened? 9 00:00:31,000 --> 00:00:33,479 Speaker 1: Yeah, so very bad day yesterday for Okada and that 10 00:00:33,600 --> 00:00:36,680 Speaker 1: is continuing today. So shares actually dropped the most on 11 00:00:36,800 --> 00:00:40,080 Speaker 1: record yesterday, and there is after Kroger over in the 12 00:00:40,200 --> 00:00:43,680 Speaker 1: US said that it would close three automated facilities that 13 00:00:43,920 --> 00:00:48,919 Speaker 1: use Ocado's tech in January. So Crogo is Ocado's biggest 14 00:00:48,920 --> 00:00:52,040 Speaker 1: client and it has a partnership where it essentially the 15 00:00:52,080 --> 00:00:56,760 Speaker 1: automated It uses automated warehouses that has the robotic arms 16 00:00:56,760 --> 00:01:01,920 Speaker 1: provided by Ocado to package deliveries. So that's the partnership 17 00:01:01,960 --> 00:01:04,559 Speaker 1: that is existing. But yesterday Kroger said that it would 18 00:01:04,560 --> 00:01:09,200 Speaker 1: shift from completing online orders through those warehouses that use 19 00:01:09,400 --> 00:01:12,759 Speaker 1: that tech to using its own store network, at least 20 00:01:12,760 --> 00:01:15,280 Speaker 1: in some areas. So this is quite tough for Ocado 21 00:01:15,360 --> 00:01:19,400 Speaker 1: and that really throws into question the ambition of becoming 22 00:01:19,400 --> 00:01:21,760 Speaker 1: the tesla of grocery, which is something that the company 23 00:01:21,959 --> 00:01:24,760 Speaker 1: had said it wanted to be. So we're seeing that 24 00:01:24,800 --> 00:01:28,679 Speaker 1: weakness from yesterday extend into today and investors are continuing 25 00:01:28,720 --> 00:01:31,120 Speaker 1: to take stock of what that means for the company. 26 00:01:31,200 --> 00:01:33,800 Speaker 1: And obviously that's a company that's also been trying to 27 00:01:34,040 --> 00:01:37,039 Speaker 1: convince investors that going all in on robotics and then 28 00:01:37,040 --> 00:01:41,240 Speaker 1: technology is worth it. But so far Acado hasn't seen 29 00:01:41,520 --> 00:01:45,960 Speaker 1: a massive retunnel investment from this strategy, and this Kroger 30 00:01:46,440 --> 00:01:48,680 Speaker 1: change of heart is really a massive setback. 31 00:01:49,200 --> 00:01:53,520 Speaker 3: Yeah, they've still got five US locations in terms of 32 00:01:53,520 --> 00:01:56,320 Speaker 3: the deal between Akkada and Croger. But yes, it was 33 00:01:56,440 --> 00:01:59,280 Speaker 3: very very difficult, isn't it yesterday? And today? Let's also 34 00:01:59,320 --> 00:02:02,520 Speaker 3: think about so another British retailer, wh Smith. How are 35 00:02:02,520 --> 00:02:05,160 Speaker 3: the market's viewing the resignation of its CEO. 36 00:02:05,480 --> 00:02:07,960 Speaker 1: Yeah, so the CEO, Carl Counting, has just resigned in 37 00:02:08,000 --> 00:02:11,399 Speaker 1: that it is following an investigation into the accounting era 38 00:02:11,520 --> 00:02:14,040 Speaker 1: that was discovered earlier this year, and that is an 39 00:02:14,080 --> 00:02:17,079 Speaker 1: accounting era that had forced the company to cut its 40 00:02:17,080 --> 00:02:21,040 Speaker 1: profit outlook for North America. So over the summer, if 41 00:02:21,040 --> 00:02:23,400 Speaker 1: we can remember as far back as the wh Smith 42 00:02:23,440 --> 00:02:26,200 Speaker 1: has said that it'd found an overstatement of about thirty 43 00:02:26,280 --> 00:02:29,639 Speaker 1: million pounds in its profits for North America. Now it's 44 00:02:29,639 --> 00:02:31,480 Speaker 1: saying that it could be actually as much as fifty 45 00:02:31,760 --> 00:02:35,320 Speaker 1: million pounds and that is following an independent review by Deloitte. 46 00:02:35,720 --> 00:02:39,200 Speaker 1: And so the CEO handed his resignation following that probe, 47 00:02:39,280 --> 00:02:42,160 Speaker 1: and also the leadership in North America for the company 48 00:02:42,320 --> 00:02:46,360 Speaker 1: is also being a reviewed. This has been a massive 49 00:02:46,400 --> 00:02:49,960 Speaker 1: problem for the company. The shares plunged over forty percent 50 00:02:50,280 --> 00:02:53,240 Speaker 1: when that accounting era was discovered and announced, and they've 51 00:02:53,280 --> 00:02:56,119 Speaker 1: not really recovered and we are seeing even more weakness 52 00:02:56,360 --> 00:02:56,960 Speaker 1: this morning. 53 00:02:58,360 --> 00:03:03,119 Speaker 3: Meanwhile, and just lastly, the budget airline Jet two. It's 54 00:03:03,240 --> 00:03:07,320 Speaker 3: pre tax profits beat. What more do we know in earnings? Yeah, 55 00:03:07,360 --> 00:03:08,480 Speaker 3: so pre tax profit be. 56 00:03:08,760 --> 00:03:11,400 Speaker 1: It also said that it should meet a profit expectations 57 00:03:11,400 --> 00:03:14,160 Speaker 1: for this year. Also announced a one hundred million pound 58 00:03:14,200 --> 00:03:16,960 Speaker 1: buyback and that is all being really well received by 59 00:03:16,960 --> 00:03:19,840 Speaker 1: the market. The shares have jumped this morning on the 60 00:03:19,840 --> 00:03:23,160 Speaker 1: back of those results. It really really short investors that 61 00:03:24,480 --> 00:03:26,840 Speaker 1: you know, things might be getting a little bit better 62 00:03:27,160 --> 00:03:31,800 Speaker 1: after a lot of concerns around pricing weakness for budget airlines. 63 00:03:31,880 --> 00:03:34,920 Speaker 1: So back in September, Jet two had actually issued a 64 00:03:34,920 --> 00:03:37,400 Speaker 1: profit warning and had said that demand was a little 65 00:03:37,440 --> 00:03:40,720 Speaker 1: bit shaky because of the ongoing cost of living crisis, 66 00:03:41,000 --> 00:03:44,040 Speaker 1: and it had cut back its winter capacity. So this 67 00:03:44,080 --> 00:03:47,760 Speaker 1: had all also shaken that broader low cost airline industry. 68 00:03:48,000 --> 00:03:50,040 Speaker 1: We had seen the shares of easy Jet and Ryan 69 00:03:50,080 --> 00:03:52,720 Speaker 1: Air also being dragged down on the back of that 70 00:03:52,800 --> 00:03:56,560 Speaker 1: profit warning, and there were concerns that people were booking 71 00:03:56,560 --> 00:03:59,880 Speaker 1: flights later and later and sometimes not at all. But 72 00:04:00,080 --> 00:04:03,200 Speaker 1: this update from jet to today has been really reassuring 73 00:04:03,200 --> 00:04:05,600 Speaker 1: for the market and that things that maybe at least 74 00:04:05,640 --> 00:04:08,400 Speaker 1: not getting worse and potentially might be getting better next year. 75 00:04:08,680 --> 00:04:12,280 Speaker 3: That's interesting. I'm sure you have not escaped the jet too, 76 00:04:12,440 --> 00:04:15,400 Speaker 3: add that I have not millions of people around the world. 77 00:04:15,800 --> 00:04:18,839 Speaker 3: I mean, it was a clever advert, wasn't it very clever? 78 00:04:19,000 --> 00:04:22,280 Speaker 3: You know the camera you're sort of holding the hand 79 00:04:22,320 --> 00:04:25,160 Speaker 3: of the camera as you go on holiday. Yeah, there's 80 00:04:25,200 --> 00:04:27,360 Speaker 3: a clever little trick that went viral. 81 00:04:27,400 --> 00:04:29,600 Speaker 1: And I've still not used Jet two, but maybe i'll 82 00:04:29,720 --> 00:04:30,599 Speaker 1: maybe I'll try it out. 83 00:04:31,520 --> 00:04:35,560 Speaker 2: The stock movers report from Bloomberg Radio. 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