WEBVTT - HSBC Falls, Intertek Jumps, Rheinmetall Gains 

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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>Now, let's have a look at the socks on the

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<v Speaker 3>move today here in Europe.

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<v Speaker 1>I'm Caroline Hepkin.

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<v Speaker 3>I'm joined by Bloomberg's Breaking News editor Louis Moon. Good morning, HSBC.

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<v Speaker 3>Let's start there. They released new numbers this morning. Investors

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<v Speaker 3>not reacting very positively.

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<v Speaker 4>Indie shares down in London and also in Hong Kong,

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<v Speaker 4>so in both locations where they are listed. This after

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<v Speaker 4>first quarter results. Profits missed estimates, so profits fell to

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<v Speaker 4>nine point four billion US dollars. Blow estimates down to

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<v Speaker 4>two main things. So one is four hundred dollars US dollars,

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<v Speaker 4>four hundred million US dollars charge links to what they

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<v Speaker 4>called HB called HSBC called fraud related secondary securitization exposure

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<v Speaker 4>with a financial sponsor in the UK. Now that's what

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<v Speaker 4>reporting reported to be the now collapsed mortgage firm MFS.

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<v Speaker 1>So that's four hundred million US dollars.

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<v Speaker 4>And then as well as that, they also set aside

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<v Speaker 4>three hundred million US dollars for impairments link to the.

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<v Speaker 1>Middle East War.

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<v Speaker 4>So a surprise fraud related charge and war related impairments

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<v Speaker 4>dragging down HSBC's profits. Now, we've had a lot of

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<v Speaker 4>banks reporting recently. Some others have also booked similar charges

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<v Speaker 4>linked to the war. But many banks have reported, and

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<v Speaker 4>particularly over in Wall Street, reported quite bonanza first quarter earnings.

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<v Speaker 4>You know, strong numbers to HBC missing out on those

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<v Speaker 4>in some bit of positivity and less are pointing to

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<v Speaker 4>kind of relative underlying strength. So HSBC's wealth unit did

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<v Speaker 4>quite well in the first quarter, and the Hong Kong

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<v Speaker 4>business also did quite well.

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<v Speaker 1>Obviously, they've been.

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<v Speaker 4>On a huge restructuring drive under the CEO since late

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<v Speaker 4>twenty twenty four roughly, and analysts that have welcomed that,

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<v Speaker 4>and shares have recently hit all time highs. But this

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<v Speaker 4>first quarter not performing well and dragging down shares.

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<v Speaker 3>Yeah, okay, so that's HSBC elsewhere take over interest in

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<v Speaker 3>inter Tech. How's that affecting its share price?

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<v Speaker 4>Shares reacting positively shut up this morning, up to about

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<v Speaker 4>fifty two pounds per share. They've already risen about ten

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<v Speaker 4>percent this year. That's after takeover interest by Swedish Privacy

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<v Speaker 4>firm EQT, So they've they've they've made a revised proposal

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<v Speaker 4>this morning, so for fifty eight pounds a share that

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<v Speaker 4>values into Tech. This is the Footsie one hundred company,

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<v Speaker 4>valuing it at almost nine billion pounds.

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<v Speaker 1>This is eqt's third attempt.

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<v Speaker 4>Intertech's already said no to two previous attempts for undervaluing it,

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<v Speaker 4>so and they've said they've they've responded this morning saying

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<v Speaker 4>that they're reviewing this office. So it's a bit of

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<v Speaker 4>a wait and see as to whether they might accept

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<v Speaker 4>this third proposal. So yeah, as I say, so, there's

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<v Speaker 4>EQT could potentially take over, but Intertect themselves are also

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<v Speaker 4>separately exploring whether they split up, so there's kind of

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<v Speaker 4>two things at play at the same time. So yeah,

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<v Speaker 4>a bit of a wait and see as to whether

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<v Speaker 4>this might go through this takeover.

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<v Speaker 1>Yeah, okay.

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<v Speaker 3>Meanwhile, Germany's Ryan Metta reporting today this company has been

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<v Speaker 3>hugely in focused given an increased defense spending across Europe

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<v Speaker 3>and especially in Germany.

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<v Speaker 4>It has so first quarter results this morning sales actually

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<v Speaker 4>fell short of estimates, and they're predicting a shift of

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<v Speaker 4>revenue into the second quarter.

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<v Speaker 1>So they've had some delays of shipments.

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<v Speaker 4>Part of that is down to one of their plants

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<v Speaker 4>in Spain, there was an accent there so production was affected.

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<v Speaker 4>So not doing so well this morning, but shares actually rising.

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<v Speaker 4>They rose as much as well, just over two percent

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<v Speaker 4>and disappointing set operating margins in line.

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<v Speaker 1>They can also confirm their guidance.

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<v Speaker 4>As I say, they're expecting a stronger performance than the

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<v Speaker 4>second half. So overall first half growth is expected to

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<v Speaker 4>be the same pace as last year, and there's early

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<v Speaker 4>signs of improvement in those orders, so there's a bit

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<v Speaker 4>of reassurance that's being kind of focused on.

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<v Speaker 1>There is some worries over some execution challenges.

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<v Speaker 4>There's obviously a lot more deliveries and orders, and there's

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<v Speaker 4>no kind of clear breakdown in their growth numbers. But

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<v Speaker 4>as I say, share the rising on that shift in

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<v Speaker 4>revenue to the second quarter, so some signs of more

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<v Speaker 4>hope going forward.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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