WEBVTT - Ocado Slides, WH Smith Dips, Jet2 Jumps

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the individual stocks

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<v Speaker 3>on the move today here in Europe. I'm Caroline Hepga

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<v Speaker 3>and I'm joined by Blueberg reporter Chloe Mala. Good morning,

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<v Speaker 3>Good morning. Let's start with Akado shares in the online

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<v Speaker 3>grosser got some really bad news this week. What's happened?

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<v Speaker 1>Yeah, so very bad day yesterday for Okada and that

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<v Speaker 1>is continuing today. So shares actually dropped the most on

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<v Speaker 1>record yesterday, and there is after Kroger over in the

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<v Speaker 1>US said that it would close three automated facilities that

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<v Speaker 1>use Ocado's tech in January. So Crogo is Ocado's biggest

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<v Speaker 1>client and it has a partnership where it essentially the

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<v Speaker 1>automated It uses automated warehouses that has the robotic arms

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<v Speaker 1>provided by Ocado to package deliveries. So that's the partnership

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<v Speaker 1>that is existing. But yesterday Kroger said that it would

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<v Speaker 1>shift from completing online orders through those warehouses that use

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<v Speaker 1>that tech to using its own store network, at least

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<v Speaker 1>in some areas. So this is quite tough for Ocado

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<v Speaker 1>and that really throws into question the ambition of becoming

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<v Speaker 1>the tesla of grocery, which is something that the company

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<v Speaker 1>had said it wanted to be. So we're seeing that

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<v Speaker 1>weakness from yesterday extend into today and investors are continuing

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<v Speaker 1>to take stock of what that means for the company.

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<v Speaker 1>And obviously that's a company that's also been trying to

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<v Speaker 1>convince investors that going all in on robotics and then

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<v Speaker 1>technology is worth it. But so far Acado hasn't seen

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<v Speaker 1>a massive retunnel investment from this strategy, and this Kroger

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<v Speaker 1>change of heart is really a massive setback.

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<v Speaker 3>Yeah, they've still got five US locations in terms of

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<v Speaker 3>the deal between Akkada and Croger. But yes, it was

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<v Speaker 3>very very difficult, isn't it yesterday? And today? Let's also

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<v Speaker 3>think about so another British retailer, wh Smith. How are

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<v Speaker 3>the market's viewing the resignation of its CEO.

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<v Speaker 1>Yeah, so the CEO, Carl Counting, has just resigned in

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<v Speaker 1>that it is following an investigation into the accounting era

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<v Speaker 1>that was discovered earlier this year, and that is an

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<v Speaker 1>accounting era that had forced the company to cut its

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<v Speaker 1>profit outlook for North America. So over the summer, if

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<v Speaker 1>we can remember as far back as the wh Smith

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<v Speaker 1>has said that it'd found an overstatement of about thirty

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<v Speaker 1>million pounds in its profits for North America. Now it's

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<v Speaker 1>saying that it could be actually as much as fifty

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<v Speaker 1>million pounds and that is following an independent review by Deloitte.

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<v Speaker 1>And so the CEO handed his resignation following that probe,

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<v Speaker 1>and also the leadership in North America for the company

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<v Speaker 1>is also being a reviewed. This has been a massive

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<v Speaker 1>problem for the company. The shares plunged over forty percent

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<v Speaker 1>when that accounting era was discovered and announced, and they've

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<v Speaker 1>not really recovered and we are seeing even more weakness

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<v Speaker 1>this morning.

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<v Speaker 3>Meanwhile, and just lastly, the budget airline Jet two. It's

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<v Speaker 3>pre tax profits beat. What more do we know in earnings? Yeah,

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<v Speaker 3>so pre tax profit be.

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<v Speaker 1>It also said that it should meet a profit expectations

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<v Speaker 1>for this year. Also announced a one hundred million pound

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<v Speaker 1>buyback and that is all being really well received by

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<v Speaker 1>the market. The shares have jumped this morning on the

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<v Speaker 1>back of those results. It really really short investors that

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<v Speaker 1>you know, things might be getting a little bit better

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<v Speaker 1>after a lot of concerns around pricing weakness for budget airlines.

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<v Speaker 1>So back in September, Jet two had actually issued a

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<v Speaker 1>profit warning and had said that demand was a little

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<v Speaker 1>bit shaky because of the ongoing cost of living crisis,

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<v Speaker 1>and it had cut back its winter capacity. So this

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<v Speaker 1>had all also shaken that broader low cost airline industry.

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<v Speaker 1>We had seen the shares of easy Jet and Ryan

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<v Speaker 1>Air also being dragged down on the back of that

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<v Speaker 1>profit warning, and there were concerns that people were booking

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<v Speaker 1>flights later and later and sometimes not at all. But

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<v Speaker 1>this update from jet to today has been really reassuring

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<v Speaker 1>for the market and that things that maybe at least

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<v Speaker 1>not getting worse and potentially might be getting better next year.

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<v Speaker 3>That's interesting. I'm sure you have not escaped the jet too,

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<v Speaker 3>add that I have not millions of people around the world.

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<v Speaker 3>I mean, it was a clever advert, wasn't it very clever?

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<v Speaker 3>You know the camera you're sort of holding the hand

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<v Speaker 3>of the camera as you go on holiday. Yeah, there's

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<v Speaker 3>a clever little trick that went viral.

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<v Speaker 1>And I've still not used Jet two, but maybe i'll

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<v Speaker 1>maybe I'll try it out.

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