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 some of the individual stocks
Speaker 3: on the move today here in Europe. I'm Caroline Hepga
Speaker 3: and I'm joined by Blueberg reporter Chloe Mala. Good morning,
Speaker 3: Good morning. Let's start with Akado shares in the online
Speaker 3: grosser got some really bad news this week. What's happened?
Speaker 1: Yeah, so very bad day yesterday for Okada and that
Speaker 1: is continuing today. So shares actually dropped the most on
Speaker 1: record yesterday, and there is after Kroger over in the
Speaker 1: US said that it would close three automated facilities that
Speaker 1: use Ocado's tech in January. So Crogo is Ocado's biggest
Speaker 1: client and it has a partnership where it essentially the
Speaker 1: automated It uses automated warehouses that has the robotic arms
Speaker 1: provided by Ocado to package deliveries. So that's the partnership
Speaker 1: that is existing. But yesterday Kroger said that it would
Speaker 1: shift from completing online orders through those warehouses that use
Speaker 1: that tech to using its own store network, at least
Speaker 1: in some areas. So this is quite tough for Ocado
Speaker 1: and that really throws into question the ambition of becoming
Speaker 1: the tesla of grocery, which is something that the company
Speaker 1: had said it wanted to be. So we're seeing that
Speaker 1: weakness from yesterday extend into today and investors are continuing
Speaker 1: to take stock of what that means for the company.
Speaker 1: And obviously that's a company that's also been trying to
Speaker 1: convince investors that going all in on robotics and then
Speaker 1: technology is worth it. But so far Acado hasn't seen
Speaker 1: a massive retunnel investment from this strategy, and this Kroger
Speaker 1: change of heart is really a massive setback.
Speaker 3: Yeah, they've still got five US locations in terms of
Speaker 3: the deal between Akkada and Croger. But yes, it was
Speaker 3: very very difficult, isn't it yesterday? And today? Let's also
Speaker 3: think about so another British retailer, wh Smith. How are
Speaker 3: the market's viewing the resignation of its CEO.
Speaker 1: Yeah, so the CEO, Carl Counting, has just resigned in
Speaker 1: that it is following an investigation into the accounting era
Speaker 1: that was discovered earlier this year, and that is an
Speaker 1: accounting era that had forced the company to cut its
Speaker 1: profit outlook for North America. So over the summer, if
Speaker 1: we can remember as far back as the wh Smith
Speaker 1: has said that it'd found an overstatement of about thirty
Speaker 1: million pounds in its profits for North America. Now it's
Speaker 1: saying that it could be actually as much as fifty
Speaker 1: million pounds and that is following an independent review by Deloitte.
Speaker 1: And so the CEO handed his resignation following that probe,
Speaker 1: and also the leadership in North America for the company
Speaker 1: is also being a reviewed. This has been a massive
Speaker 1: problem for the company. The shares plunged over forty percent
Speaker 1: when that accounting era was discovered and announced, and they've
Speaker 1: not really recovered and we are seeing even more weakness
Speaker 1: this morning.
Speaker 3: Meanwhile, and just lastly, the budget airline Jet two. It's
Speaker 3: pre tax profits beat. What more do we know in earnings? Yeah,
Speaker 3: so pre tax profit be.
Speaker 1: It also said that it should meet a profit expectations
Speaker 1: for this year. Also announced a one hundred million pound
Speaker 1: buyback and that is all being really well received by
Speaker 1: the market. The shares have jumped this morning on the
Speaker 1: back of those results. It really really short investors that
Speaker 1: you know, things might be getting a little bit better
Speaker 1: after a lot of concerns around pricing weakness for budget airlines.
Speaker 1: So back in September, Jet two had actually issued a
Speaker 1: profit warning and had said that demand was a little
Speaker 1: bit shaky because of the ongoing cost of living crisis,
Speaker 1: and it had cut back its winter capacity. So this
Speaker 1: had all also shaken that broader low cost airline industry.
Speaker 1: We had seen the shares of easy Jet and Ryan
Speaker 1: Air also being dragged down on the back of that
Speaker 1: profit warning, and there were concerns that people were booking
Speaker 1: flights later and later and sometimes not at all. But
Speaker 1: this update from jet to today has been really reassuring
Speaker 1: for the market and that things that maybe at least
Speaker 1: not getting worse and potentially might be getting better next year.
Speaker 3: That's interesting. I'm sure you have not escaped the jet too,
Speaker 3: add that I have not millions of people around the world.
Speaker 3: I mean, it was a clever advert, wasn't it very clever?
Speaker 3: You know the camera you're sort of holding the hand
Speaker 3: of the camera as you go on holiday. Yeah, there's
Speaker 3: a clever little trick that went viral.
Speaker 1: And I've still not used Jet two, but maybe i'll
Speaker 1: maybe I'll try it out.
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