WEBVTT - Delivery Hero Falls, SSE Dips, Michelin Down

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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 now at some of the stocks

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<v Speaker 3>on the mood today in Europe. I'm jas Walcock with

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<v Speaker 3>Caroline Hepger, and we are joined by Bloomberg's Breaking News

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<v Speaker 3>editor Louise Moon. Louise, let's start with Delivery Hero. So

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<v Speaker 3>Uber raised its stake in the company yesterday. How are

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<v Speaker 3>investors taking that news?

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<v Speaker 2>Well?

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<v Speaker 1>Seemingly, at least judging by the share price this morning,

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<v Speaker 1>not so well. So it's down over about five percent

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<v Speaker 1>Delivery Hero that is this morning. So as you say,

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<v Speaker 1>Uber have increased his stakes. So they were already the

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<v Speaker 1>largest shareholder, but late last night they bought Aspects Managements shares,

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<v Speaker 1>So this takes their overll stake now to almost thirty

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<v Speaker 1>seven percent. So the majority of that is voting, right,

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<v Speaker 1>it's attached to shares, and then the rest is in instruments.

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<v Speaker 1>So the level still actually falls just below the threshold

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<v Speaker 1>that would trigger mandatory offer, so they're not at that

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<v Speaker 1>threshold yet, but it does come after well, as they're

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<v Speaker 1>trying to negotiate a deal to buy Delivery Hero. So

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<v Speaker 1>Delivery Hero disclosed a bid from Uber over the weekend

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<v Speaker 1>that would value at about ten billion euros, but that

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<v Speaker 1>wasn't at a premium to the share price at that point.

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<v Speaker 1>So it's kind of this ongoing sagle with Uber trying

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<v Speaker 1>to increasingly raise its stake in Delivery Hero, trying to

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<v Speaker 1>obviously buy it out, and some resistance there at the

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<v Speaker 1>moment or negotiations continuing. But as I say, shares down

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<v Speaker 1>on the back of that news this morning.

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<v Speaker 4>Over five percent.

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<v Speaker 5>Yeah, okay, so kind of consolidating, perhaps all consolidating, aren't

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<v Speaker 5>they into kind of bigger and bigger offerings. Let's think

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<v Speaker 5>about utilities the company SSE, which is Scottish utility, a

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<v Speaker 5>big one here in the UK. How investors reacting They

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<v Speaker 5>had earnings out this morning and also they're thinking about

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<v Speaker 5>investment they are.

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<v Speaker 4>Yeah, so there's kind of twofold to this.

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<v Speaker 1>So one was their earnings this morning, so roughly in

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<v Speaker 1>line and less a kind of highlighting some progress particularly

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<v Speaker 1>at Doggerbank Offshore when project was obviously the huge one

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<v Speaker 1>in the UK. The SSE are across, so they're highlighting

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<v Speaker 1>progress there, they've said they've already been increasing a lot

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<v Speaker 1>of investment in upgrading the infrastructure and in renewable energy projects,

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<v Speaker 1>and they're increasing that even more to over five billion pounds.

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<v Speaker 1>They reconfirmed their guidance, so there's some reassurance there that

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<v Speaker 1>things are okay. So shares did slightly, but they're relatively steady.

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<v Speaker 1>That's really what analysts are focusing on. Despite the other

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<v Speaker 1>side of it is that sc within that statement said

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<v Speaker 1>that they are unlikely to meet their twenty thirty renewable

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<v Speaker 1>energy targets. So they had already called that an ambitious target,

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<v Speaker 1>but now they're saying that's unlikely to be achieved. So

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<v Speaker 1>they're citing things like a difficult market, environment, policy uncertainty,

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<v Speaker 1>delays to grid connections. So this is across a host

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<v Speaker 1>of things, but partly on shore wind projects as I

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<v Speaker 1>say that grid capacity is a major obstacle. So kind

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<v Speaker 1>of a twofold and quite a mixed statement, but what's

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<v Speaker 1>really being focused on is that earnings are on line

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<v Speaker 1>despite all those kind of wider difficulties in upgrading infratructure,

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<v Speaker 1>a lot of spending increases there. Things are looking relatively

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<v Speaker 1>steady in spite of all of that.

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<v Speaker 3>And then over to Michelin. I mean, back in February,

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<v Speaker 3>the CEO made news by warning that France was killing

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<v Speaker 3>its industry with taxes. Now they're looking to cut costs.

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<v Speaker 1>Indeed, yes, so they're considering cutting one thousand, five hundred

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<v Speaker 1>jobs in France over three years, so that's by twenty

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<v Speaker 1>twenty nine, all part of cutting costs more widely. As

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<v Speaker 1>you say, the CEO already kind of warned of this

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<v Speaker 1>over taxation in France and said that again this morning.

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<v Speaker 1>So they're pointing to things like economic and regulatory constraints,

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<v Speaker 1>so those high cost labor, energy and tax pressures in France.

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<v Speaker 1>So there won't be any force layoffs, but they're going

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<v Speaker 1>to you know that they are seeing those one thousand,

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<v Speaker 1>five hundred jobs and they're saying highly unstable economic environment.

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<v Speaker 1>The approach aims to optimize cost structure that's too high.

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<v Speaker 1>And shares fell slightly but not huge amounts. They've been

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<v Speaker 1>very volatile over the past year. They've had a lot

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<v Speaker 1>to contend with, partly you know, those comments, risks of

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<v Speaker 1>tariffs and more, and.

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<v Speaker 4>So shares slightly down this morning.

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<v Speaker 1>But as you say, given the comments, the CEO said

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<v Speaker 1>in February.

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<v Speaker 4>It's not it's not a major surprise that this is

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<v Speaker 4>now happening.

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