WEBVTT - Natwest Beat, Diageo Scotch, Pearson Up

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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 look at some of the individual stocks on the

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<v Speaker 3>move today in Europe. I'm Caroline Hepgar with Lizzie Burden,

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<v Speaker 3>were joined by Bloomberg reporter Climb Malay. So megaweek of

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<v Speaker 3>earnings and we finish with nat West in terms of

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<v Speaker 3>banks in the UK.

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<v Speaker 1>Yeah, and on the face of it, for Networks it

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<v Speaker 1>looks pretty positive, so it'd be expectations for a lot

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<v Speaker 1>of different metrics. It said that customers were still borrowing

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<v Speaker 1>and saving quite a bit, and so that means that

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<v Speaker 1>it will be able to achieve the upper end of

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<v Speaker 1>its guidance for twenty twenty six. It also set aside

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<v Speaker 1>less than expected to cover bed loans, which is in

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<v Speaker 1>contrast with what other European banks have been saying throughout

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<v Speaker 1>the week, with a lot of them actually having higher provisions.

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<v Speaker 1>But Networks has actually fell this morning, so it seems

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<v Speaker 1>that all of this was not enough maybe for investors.

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<v Speaker 1>So a list noted that the improved guidance was actually

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<v Speaker 1>already expected and already priced in, and that some metrics

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<v Speaker 1>like net interest income missed estimates as well, So overall

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<v Speaker 1>there is a little bit of disappointment, but it's not

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<v Speaker 1>necessarily a worrying update from NETWIST. One analyst said that

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<v Speaker 1>this is the kind of update that bank investors can

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<v Speaker 1>work with in the really nervous market that we've got

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<v Speaker 1>at the moment. You know, it's an update that's not flawless,

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<v Speaker 1>but it's profitable, well capitalized, backed by a better guidance,

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<v Speaker 1>so it's essentially good enough. And overall UK banks this

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<v Speaker 1>week I've pointed to actually a fair bit of resilience

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<v Speaker 1>given the geopolitical context that we're operating in, and saying

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<v Speaker 1>that there is no sign of stress yet but signaling

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<v Speaker 1>that there might be a rise in unemployment, that there

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<v Speaker 1>might be some impact from that higher inflation, but perhaps

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<v Speaker 1>the second quarter will give a greater sense of what

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<v Speaker 1>the impact actually is.

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<v Speaker 3>Now, we've all been watching the King's visit to Washington

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<v Speaker 3>and New York, but no one more closely, it seems

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<v Speaker 3>in Diagia.

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<v Speaker 1>Yeah, absolutely. Diado's up this morning after Trump has said

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<v Speaker 1>that he would be removing some whiskey tariffs following a

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<v Speaker 1>visit from King Charles. So that's a big win for

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<v Speaker 1>the Scottish whiskey industry. You know, in twenty twenty five

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<v Speaker 1>Scotland sent almost one billion dollars of Scotch to the US,

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<v Speaker 1>so it's a really major market. And it also signals

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<v Speaker 1>that Trump really does have a soft spot for the

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<v Speaker 1>royal family. This is of course coming at a very

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<v Speaker 1>interesting sign for this so called special relationship between the

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<v Speaker 1>US and the UK, given how much Trump has been

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<v Speaker 1>a criticizing kised Armer over disagreements after the war in Iran,

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<v Speaker 1>but then also the threat to take over Greenland. So

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<v Speaker 1>we've got a special relationship now warming up once again,

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<v Speaker 1>thanks in part to how much Trump loves the Royals

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<v Speaker 1>and King Charles. And that's great news for Diado and

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<v Speaker 1>we're getting the results next week actually for that company,

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<v Speaker 1>and it seems that it does need that booster. Has

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<v Speaker 1>been dealing with a weak consumer confidence and people trading

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<v Speaker 1>down to cheaper brands, so this removed of tariffs would

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<v Speaker 1>be would be definitely a welcome relief.

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<v Speaker 3>You know what, it's none of these speeches actually from

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<v Speaker 3>that state visit by King Charles and Queen Camilla to

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<v Speaker 3>the us. That sticks in my mind's actually the fashion

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<v Speaker 3>that they wore, the fact that they reflected that the

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<v Speaker 3>King and Queen reflected the colors that the Trumps were wearing,

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<v Speaker 3>or maybe they had agreed it together. So what you know,

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<v Speaker 3>when Camilla was wearing dark series pink, you know, the

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<v Speaker 3>first lady was wearing light ping and so on, I

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<v Speaker 3>thought that spoke even more. You know, it's often the

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<v Speaker 3>royals have obviously focused on you know, those symbols much

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<v Speaker 3>more than speeches often, but I thought that spoke volumes. Anyway,

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<v Speaker 3>let's about that, and let's think about peers and traders

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<v Speaker 3>giving Pierson a passing grade.

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<v Speaker 1>Yes, indeed to piers and provides things like virtual learning

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<v Speaker 1>products and things like digital textbooks. And of course it

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<v Speaker 1>was one of the companies that got caught in that

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<v Speaker 1>software sellar from earlier this year. But as we've actually

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<v Speaker 1>seen throughout this earning season, those software companies are actually

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<v Speaker 1>doing better than expected. So we saw sap Doso Systems,

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<v Speaker 1>cap Gemini, all of those companies that seen that she

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<v Speaker 1>has really hurt by those fears around AI disruption, all

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<v Speaker 1>of them had quite resilient earnings, stronger sales than expected.

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<v Speaker 1>A brighter outlook than expected for a lot of them

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<v Speaker 1>as well. In Pearson is following in the same trajectory,

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<v Speaker 1>had strong sales confirmed its outlook. So there's what those

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<v Speaker 1>companies have been saying since the beginning of the sell

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<v Speaker 1>off was that they were going to be a winners,

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<v Speaker 1>not AI losers. But there was real reluctance from investors

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<v Speaker 1>to believe them. But now maybe after this earning season,

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<v Speaker 1>you know, some of those fears would have maybe eased

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<v Speaker 1>a little bit, and so we are seeing Pearson shares

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<v Speaker 1>up quite strongly this morning.

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<v Speaker 2>The Stock Mover's report from Bloomberg Radio. Check back with

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