Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now let's look at some of the stocks on the
Speaker 3: move today here in UP I'm Caroline Hepka alongside Jamana
Speaker 3: Bassecci and we're joined by Bloomberg with Portocloi Malay, Good
Speaker 3: morning Moni. So let's talk about the high street retailer
Speaker 3: Next and what they see is happening with the UK consumer.
Speaker 3: Obviously it's led by a very well known business figure
Speaker 3: in the UK, that's Lord Wolfson.
Speaker 1: Yeah, absolutely, so quite a bad day for Next today
Speaker 1: and of course at that cynic by extension band news
Speaker 1: for that UK retail sector are given the status of
Speaker 1: next as kind of that bell weather for the UK economy. So,
Speaker 1: as you mentioned, the CEO said that there was the economy,
Speaker 1: the UK economy was struggling and that was dragging down
Speaker 1: sales and that sales in the second half of the
Speaker 1: year would be lower than the first half. He said
Speaker 1: that in particular, additional business taxes that came through in
Speaker 1: April of course really her employment and that in turn
Speaker 1: is hurting consumer spending. He also noted that employment was
Speaker 1: facing an additional challenge, which was displacement through mechanization and AI.
Speaker 1: There's a couple of other reasons for the fact that
Speaker 1: the sales will be lower in the second half. There's
Speaker 1: some positive factors that happen in the first half that
Speaker 1: won't be here again for the second half. Good weather
Speaker 1: for example, which in London now it's full autumn mode
Speaker 1: I think, and then also a cyber attack that her
Speaker 1: mns which really benefited next but obviously now that's not gone.
Speaker 1: But the real thing that is dragging down those sales
Speaker 1: will be that struggling UK economy, so we'll be keeping
Speaker 1: an eye on that for that wider retail sector as well.
Speaker 3: Yeah, it does feel very automical, doesn't the first lady
Speaker 3: arriving in full length of Burbury trench coach. Let's switch
Speaker 3: over and talk about a finish firm cone. I believe
Speaker 3: that's the way it's pronounced possible and a in that
Speaker 3: s faith.
Speaker 1: Yeah, I do believe it's has pronounced though I don't know,
Speaker 1: so I'm just going to that's the way I've been
Speaker 1: pronouncing it, so hopefully that's the right way. So there's
Speaker 1: some m and A action in that elevator market. So
Speaker 1: Conne in Finland is said to be considering a bit
Speaker 1: for its rival TK Elevator, and and Liz said that
Speaker 1: this could potentially reshape that global elevator market and for
Speaker 1: Conne it could boost growth and boost margins as well.
Speaker 1: It's not the first time that Connor has made an
Speaker 1: approach to TK Elevator. It's with CVC Capital Partners. They
Speaker 1: approached the firm back in twenty twenty, but then they
Speaker 1: eventually dropped out. Now the reason why they're coming back
Speaker 1: again is because the private equity owners of t K
Speaker 1: Elevator are preparing for a potential ip of the company,
Speaker 1: so that's now kind of renewed Connor's interests. There are
Speaker 1: some potential risks with a deal like that, and including
Speaker 1: antitrust scrutiny, so Connor would probably need to have a
Speaker 1: partner to avoid any anti trust issues. But the fact
Speaker 1: that the shares up this morning shows that investors are
Speaker 1: quite keen on a potential deal like this.
Speaker 3: And just lastly, Continental a big slump for their stock price.
Speaker 1: Why yeah, so Continental is content. How's first day of
Speaker 1: trading after the spinoff of its Omovio business, which is
Speaker 1: the parts supplier business, so it sells parts auto parts
Speaker 1: like sensors and brake systems, and it was spinned off
Speaker 1: today on the Frankfurt Stock Exchange. As expected, with the
Speaker 1: spin off like this, the shares do drop massively. Now
Speaker 1: the market will really start focusing on what the opportunities
Speaker 1: and the challenges are for those two separate companies. So
Speaker 1: for Amovia, the challenge now is rising competition. It's also
Speaker 1: rising costs. Car makers are increasingly bringing those capabilities those
Speaker 1: parts in house, and then technology firms are also moving
Speaker 1: into that territory that was usually reserved for those traditional
Speaker 1: parts makers, so it's facing that competition. And for Continental
Speaker 1: it's now focusing on being a tires only business, which
Speaker 1: of course allows it to focus on what it does best,
Speaker 1: but it also makes it dependent on how well the
Speaker 1: cor sector is doing.
Speaker 2: Really the Stockmover's report from Bloomberg Radio. Check back with
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