WEBVTT - Next Slumps, Kone Up, Continental Spin Off

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

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

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

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<v Speaker 3>Now let's look at some of the stocks on the

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<v Speaker 3>move today here in UP I'm Caroline Hepka alongside Jamana

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<v Speaker 3>Bassecci and we're joined by Bloomberg with Portocloi Malay, Good

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<v Speaker 3>morning Moni. So let's talk about the high street retailer

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<v Speaker 3>Next and what they see is happening with the UK consumer.

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<v Speaker 3>Obviously it's led by a very well known business figure

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<v Speaker 3>in the UK, that's Lord Wolfson.

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<v Speaker 1>Yeah, absolutely, so quite a bad day for Next today

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<v Speaker 1>and of course at that cynic by extension band news

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<v Speaker 1>for that UK retail sector are given the status of

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<v Speaker 1>next as kind of that bell weather for the UK economy. So,

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<v Speaker 1>as you mentioned, the CEO said that there was the economy,

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<v Speaker 1>the UK economy was struggling and that was dragging down

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<v Speaker 1>sales and that sales in the second half of the

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<v Speaker 1>year would be lower than the first half. He said

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<v Speaker 1>that in particular, additional business taxes that came through in

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<v Speaker 1>April of course really her employment and that in turn

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<v Speaker 1>is hurting consumer spending. He also noted that employment was

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<v Speaker 1>facing an additional challenge, which was displacement through mechanization and AI.

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<v Speaker 1>There's a couple of other reasons for the fact that

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<v Speaker 1>the sales will be lower in the second half. There's

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<v Speaker 1>some positive factors that happen in the first half that

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<v Speaker 1>won't be here again for the second half. Good weather

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<v Speaker 1>for example, which in London now it's full autumn mode

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<v Speaker 1>I think, and then also a cyber attack that her

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<v Speaker 1>mns which really benefited next but obviously now that's not gone.

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<v Speaker 1>But the real thing that is dragging down those sales

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<v Speaker 1>will be that struggling UK economy, so we'll be keeping

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<v Speaker 1>an eye on that for that wider retail sector as well.

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<v Speaker 3>Yeah, it does feel very automical, doesn't the first lady

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<v Speaker 3>arriving in full length of Burbury trench coach. Let's switch

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<v Speaker 3>over and talk about a finish firm cone. I believe

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<v Speaker 3>that's the way it's pronounced possible and a in that

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<v Speaker 3>s faith.

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<v Speaker 1>Yeah, I do believe it's has pronounced though I don't know,

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<v Speaker 1>so I'm just going to that's the way I've been

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<v Speaker 1>pronouncing it, so hopefully that's the right way. So there's

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<v Speaker 1>some m and A action in that elevator market. So

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<v Speaker 1>Conne in Finland is said to be considering a bit

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<v Speaker 1>for its rival TK Elevator, and and Liz said that

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<v Speaker 1>this could potentially reshape that global elevator market and for

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<v Speaker 1>Conne it could boost growth and boost margins as well.

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<v Speaker 1>It's not the first time that Connor has made an

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<v Speaker 1>approach to TK Elevator. It's with CVC Capital Partners. They

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<v Speaker 1>approached the firm back in twenty twenty, but then they

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<v Speaker 1>eventually dropped out. Now the reason why they're coming back

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<v Speaker 1>again is because the private equity owners of t K

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<v Speaker 1>Elevator are preparing for a potential ip of the company,

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<v Speaker 1>so that's now kind of renewed Connor's interests. There are

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<v Speaker 1>some potential risks with a deal like that, and including

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<v Speaker 1>antitrust scrutiny, so Connor would probably need to have a

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<v Speaker 1>partner to avoid any anti trust issues. But the fact

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<v Speaker 1>that the shares up this morning shows that investors are

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<v Speaker 1>quite keen on a potential deal like this.

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<v Speaker 3>And just lastly, Continental a big slump for their stock price.

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<v Speaker 1>Why yeah, so Continental is content. How's first day of

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<v Speaker 1>trading after the spinoff of its Omovio business, which is

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<v Speaker 1>the parts supplier business, so it sells parts auto parts

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<v Speaker 1>like sensors and brake systems, and it was spinned off

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<v Speaker 1>today on the Frankfurt Stock Exchange. As expected, with the

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<v Speaker 1>spin off like this, the shares do drop massively. Now

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<v Speaker 1>the market will really start focusing on what the opportunities

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<v Speaker 1>and the challenges are for those two separate companies. So

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<v Speaker 1>for Amovia, the challenge now is rising competition. It's also

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<v Speaker 1>rising costs. Car makers are increasingly bringing those capabilities those

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<v Speaker 1>parts in house, and then technology firms are also moving

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<v Speaker 1>into that territory that was usually reserved for those traditional

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<v Speaker 1>parts makers, so it's facing that competition. And for Continental

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<v Speaker 1>it's now focusing on being a tires only business, which

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<v Speaker 1>of course allows it to focus on what it does best,

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<v Speaker 1>but it also makes it dependent on how well the

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<v Speaker 1>cor sector is doing.

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<v Speaker 2>Really the Stockmover's report from Bloomberg Radio. Check back with

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