Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers podcast, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Okay, let's get to what's happening in course some of
Speaker 1: the individual names. I'm Tom McKenzie alongside Caroline Heckert. We're
Speaker 1: joined now by our Markets Today reporter Sam umstaed Stam.
Speaker 2: Let's start with one.
Speaker 1: Of the home builders and Barrett red Row, the UK's
Speaker 1: biggest house builder, releasing its earnings this morning. What stood
Speaker 1: out to you?
Speaker 3: So not a particularly good report from Barrett Roder so
Speaker 3: their shares have dropped about ten percent this morning. They're
Speaker 3: actually dragging almost all home builders in London down as well,
Speaker 3: so almost all of them are in the red. There
Speaker 3: are two things that stand out from this. So one
Speaker 3: is quite a bit of weakness in their London market,
Speaker 3: so they said in the last three months in particular,
Speaker 3: affordability issues there not just for domestic potential home buyers
Speaker 3: but also international ones as well, has weighed on their
Speaker 3: sales there. So that kind of hits quite a bit
Speaker 3: of the sector. And then the other thing is, you know,
Speaker 3: the UK government is in the midst of a major
Speaker 3: planning reform push.
Speaker 1: The problem with.
Speaker 3: That is that that does need to be embedded within
Speaker 3: local planning authorities, who at the moment are quite stretched
Speaker 3: as well in terms of what they can and can't
Speaker 3: get to, and that hasn't quite happened yet, so they
Speaker 3: are still facing planning delays what they call adverse planning decisions,
Speaker 3: which is basically when projects get rejected, and so that
Speaker 3: hasn't quite filtered through yet. So some of the boots
Speaker 3: that they were hoping for from the regulation side haven't quite.
Speaker 4: Come in, okay, so still waiting for those. In terms
Speaker 4: of shares in the retailer, B and M also down
Speaker 4: quite significantly today, why yeah.
Speaker 3: Actually touching a record low, down about thirteen percent. This
Speaker 3: is another quite weak trading update from B and M.
Speaker 3: So if we go back to the pandemic being M
Speaker 3: did very well during the pandemic because they stayed open
Speaker 3: because they also sell food, but they mostly sell things
Speaker 3: like garden furniture, so they did extremely well during the pandemic.
Speaker 3: That's come off a little bit, and what's happened over
Speaker 3: the course of the last year or so is the
Speaker 3: FMCG business. So the bit where they sell kind of
Speaker 3: household goods has been hit very hard by the very
Speaker 3: very competitive grocery market in the UK, so they have
Speaker 3: not been able to invest in prices in the same
Speaker 3: way that Tesco and Sainsbury's have. That's hit their sales
Speaker 3: a bit. So although they saw a little bit of
Speaker 3: extra positivity in their like for like sales, it wasn't
Speaker 3: enough to impress analysts this morning, who said that given
Speaker 3: the weather has been much better, and given that there's
Speaker 3: you know, the FMCG business for everyone else is doing
Speaker 3: quite well, they didn't quite meet expectations.
Speaker 4: And for anyone on the letters fast moving consumer goods.
Speaker 1: So yes, indeed, moving on from B and M, we
Speaker 1: are going to focus on what's happening in terms of
Speaker 1: wind turbine makers Danish energy firm or Stared, and analysts
Speaker 1: have been changing their mind on this company.
Speaker 2: Yeah.
Speaker 3: So it faced a lot of challenges over the course
Speaker 3: of the last couple of years, partly through issues with
Speaker 3: supply chains. Literally shipping a turbine takes much longer than
Speaker 3: it does to get a consumer good into a branch
Speaker 3: of B and M, for example, But they faced a
Speaker 3: lot of issues. They fort of regulatory issues, a lot
Speaker 3: of back and forth on the US on how much
Speaker 3: funding is going to go towards green energy. A lot
Speaker 3: of uncertainty there. Morgan Stanley this morning upgrading them and
Speaker 3: saying that they are now worth a look. They've hit
Speaker 3: a level where the risk reward has turned a little
Speaker 3: bit more positive and this is kind of a contrarian
Speaker 3: call within the market, so they're pushing that this morning
Speaker 3: and shares their up about six percent.
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