1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:16,239 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,400 --> 00:00:18,000 Speaker 3: Let's take a look at some stocks on the move 5 00:00:18,040 --> 00:00:20,520 Speaker 3: today in Europe. I'm Rich Levins with Stephen Carroll, and 6 00:00:20,520 --> 00:00:23,160 Speaker 3: we're joined by Bloomberg's Breaking News editor Louise Moon. Louis, 7 00:00:23,200 --> 00:00:25,840 Speaker 3: thanks for joining us. Let's kick off with what looks 8 00:00:25,840 --> 00:00:28,560 Speaker 3: like it's going to be a difficult day for Universal Music. 9 00:00:28,640 --> 00:00:29,680 Speaker 3: What's been going on there? 10 00:00:29,880 --> 00:00:33,000 Speaker 1: Indeedas shares already down this morning at about twenty percent, 11 00:00:33,080 --> 00:00:35,280 Speaker 1: so it's the most in two years. Second quarter results, 12 00:00:35,320 --> 00:00:38,360 Speaker 1: the focus, the focus and the cores of that fall 13 00:00:38,440 --> 00:00:42,400 Speaker 1: is all on subscription revenue growth that fell short of expectations, 14 00:00:42,440 --> 00:00:44,760 Speaker 1: so it came in at about just under seventeen percent 15 00:00:44,880 --> 00:00:47,920 Speaker 1: rather than they expected just over nineteen percent. 16 00:00:49,320 --> 00:00:51,919 Speaker 4: Essentially, Universal it's been trying. 17 00:00:51,680 --> 00:00:54,840 Speaker 1: To capitalize on that shift to streaming across the music industry, 18 00:00:55,040 --> 00:00:58,600 Speaker 1: but there's concerns over the momentum of that, and obviously 19 00:00:58,600 --> 00:01:01,120 Speaker 1: there's a lot of strong competition as well. You know, 20 00:01:01,160 --> 00:01:04,720 Speaker 1: you've got Spotify, YouTube, Apple Music, so that competition is 21 00:01:04,800 --> 00:01:08,600 Speaker 1: kind of only rising, so Universal Music blamed or talked 22 00:01:08,640 --> 00:01:11,880 Speaker 1: of market share headwinds. They said that that offset what's 23 00:01:11,959 --> 00:01:16,480 Speaker 1: more expensive music subscription prices at their competitors, and as 24 00:01:16,520 --> 00:01:18,680 Speaker 1: I say, Shared fell twenty percent. Their largest shareholder of 25 00:01:18,680 --> 00:01:22,000 Speaker 1: a vendee also fell as well, and then just shares 26 00:01:22,080 --> 00:01:25,960 Speaker 1: more broadly for Universal Music have been lagging in recent years. 27 00:01:26,560 --> 00:01:29,080 Speaker 1: They had to takeover offer earlier this year from Bill Lackman. 28 00:01:29,160 --> 00:01:31,959 Speaker 1: He tried to take them over, that was rejected. He 29 00:01:32,000 --> 00:01:34,000 Speaker 1: then sold his stakes. So they've already been seeing kind 30 00:01:34,000 --> 00:01:36,039 Speaker 1: of a host of issues and then the results this 31 00:01:36,080 --> 00:01:38,840 Speaker 1: morning hinted at that kind of lack of momentum there 32 00:01:38,880 --> 00:01:40,320 Speaker 1: for subscription revenue growth. 33 00:01:41,360 --> 00:01:45,600 Speaker 4: Okay, to Sainsbury's next in the UK Louise and a 34 00:01:45,640 --> 00:01:47,760 Speaker 4: deal to sell Argas. 35 00:01:48,240 --> 00:01:51,000 Speaker 1: Yes, I find this a really interesting I've got memories 36 00:01:51,000 --> 00:01:53,040 Speaker 1: of when I was younger, of circling an August catalog 37 00:01:53,120 --> 00:01:54,600 Speaker 1: for Christmas presents. 38 00:01:55,920 --> 00:01:58,160 Speaker 4: Now exactly what times have changed? 39 00:01:58,400 --> 00:02:01,160 Speaker 1: So Sainsbury's selling off Ourgossip bought Argus about a decade 40 00:02:01,200 --> 00:02:04,279 Speaker 1: ago for over a billion pounds under a previous CEO. 41 00:02:04,840 --> 00:02:07,800 Speaker 1: But since then August well more recently Argus has been 42 00:02:07,840 --> 00:02:10,520 Speaker 1: quite a drag on Sainsbury's, so they're now selling it 43 00:02:10,600 --> 00:02:13,840 Speaker 1: for at least one hundred and twenty million pounds in cash. 44 00:02:14,160 --> 00:02:17,160 Speaker 1: Shares have jumped on this news, almost about seven percent 45 00:02:17,200 --> 00:02:19,880 Speaker 1: this morning. They've hit a twelve year high. Essentially, it's 46 00:02:19,960 --> 00:02:24,440 Speaker 1: being really welcomed by the market by analysts. As I say, 47 00:02:24,480 --> 00:02:26,239 Speaker 1: it's been a drug for a while, and this will 48 00:02:26,280 --> 00:02:29,160 Speaker 1: allow Sainsbury's now to really focus on its core of 49 00:02:29,240 --> 00:02:31,560 Speaker 1: food and kind of get rid. 50 00:02:32,040 --> 00:02:33,400 Speaker 4: Of that drag. 51 00:02:33,680 --> 00:02:35,560 Speaker 1: And it's also saying it kind of removes a reason 52 00:02:35,639 --> 00:02:38,680 Speaker 1: not to buy shares for investors. So it's being bought 53 00:02:38,680 --> 00:02:41,400 Speaker 1: by a company called Swift Partners, which is an investment firm. 54 00:02:41,680 --> 00:02:44,400 Speaker 1: It was set up specifically to buy argos by a 55 00:02:44,440 --> 00:02:47,680 Speaker 1: trio of kind of retail executives. So for example, the 56 00:02:47,680 --> 00:02:51,480 Speaker 1: former boss of co Op, a former executive at Morrison's. 57 00:02:51,600 --> 00:02:53,080 Speaker 1: So they've got a lot of history in the industry 58 00:02:53,080 --> 00:02:57,000 Speaker 1: and they're taking argus away from Sainsbury's and yeah, as 59 00:02:57,040 --> 00:02:59,440 Speaker 1: I said, being welcomed by the market there. 60 00:03:00,080 --> 00:03:02,680 Speaker 3: Finally, then Taylor Wimpy, the home builderut, what's driving their 61 00:03:02,680 --> 00:03:03,119 Speaker 3: share price? 62 00:03:03,200 --> 00:03:07,000 Speaker 1: Job, Yes, a less positive news. They've slashed their payout 63 00:03:07,040 --> 00:03:11,360 Speaker 1: policy essentially trying to preserve cash given the all of 64 00:03:11,360 --> 00:03:15,160 Speaker 1: the headwinds that the housing market is seeing, and because 65 00:03:15,200 --> 00:03:17,959 Speaker 1: of those same headwinds, they expect their completions for the 66 00:03:18,080 --> 00:03:20,400 Speaker 1: year of houses to be at the lower end of 67 00:03:20,440 --> 00:03:24,200 Speaker 1: the range that they had previously given. So all the 68 00:03:24,240 --> 00:03:29,200 Speaker 1: headwinds in terms of affordability stretched from buyers, material prices 69 00:03:29,280 --> 00:03:32,880 Speaker 1: rising across the industry and really hitting all of these companies. 70 00:03:32,919 --> 00:03:34,600 Speaker 4: And Taylor Wimpy in particularly. 71 00:03:34,600 --> 00:03:36,160 Speaker 1: You can see that this morning, SO shares down as 72 00:03:36,200 --> 00:03:38,720 Speaker 1: much as eight percent, and the CEO said, you know 73 00:03:38,800 --> 00:03:42,680 Speaker 1: that that decision to cut payouts reflects and I quote 74 00:03:42,720 --> 00:03:46,000 Speaker 1: the prolonged nature of the downturn, which has reduced expected 75 00:03:46,040 --> 00:03:49,760 Speaker 1: profitability and cash generation. So tough times being faced there 76 00:03:49,800 --> 00:03:52,000 Speaker 1: and a drag on their share price this morning. 77 00:03:53,360 --> 00:03:57,400 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 78 00:03:57,480 --> 00:03:59,960 Speaker 2: us throughout the day for the latest roundup of companies 79 00:04:00,160 --> 00:04:03,200 Speaker 2: making news on Wall Street and for the latest market 80 00:04:03,240 --> 00:04:07,680 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 81 00:04:07,800 --> 00:04:11,280 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 82 00:04:11,360 --> 00:04:12,840 Speaker 2: the Bloomberg Business app.