1
00:00:02,520 --> 00:00:07,440
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 --> 00:00:15,880
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.

4
00:00:16,840 --> 00:00:18,360
Speaker 3: Let's look at some of the stocks on the move

5
00:00:18,400 --> 00:00:20,760
Speaker 3: today here in Europe. I'm Caroline Hepget. I'm joined bar

6
00:00:20,840 --> 00:00:25,240
Speaker 3: Blomberger portaclomb La. Good morning, Gary. Let's start with hst BC.

7
00:00:25,360 --> 00:00:28,320
Speaker 3: They're going big on Hong Kong. What about the investor

8
00:00:28,360 --> 00:00:29,360
Speaker 3: reaction though.

9
00:00:29,280 --> 00:00:31,800
Speaker 1: Yeah, they actually down quite a bit this morning after

10
00:00:31,840 --> 00:00:34,600
Speaker 1: announcing the plans to privatize Hanksang Bank, which is one

11
00:00:34,840 --> 00:00:37,200
Speaker 1: of its Hong Kong subsidiaries that has been in quite

12
00:00:37,200 --> 00:00:41,120
Speaker 1: a troubled spot lately. So HSBC owns about sixty three

13
00:00:41,159 --> 00:00:43,800
Speaker 1: percent of that bank and we'll spend around fourteen billion

14
00:00:43,840 --> 00:00:47,280
Speaker 1: dollars buying the shares it doesn't already hold. The problem

15
00:00:47,320 --> 00:00:49,360
Speaker 1: that investors seem to have with this is that to

16
00:00:49,440 --> 00:00:52,600
Speaker 1: keep its capital ratio within range, HSBC said it will

17
00:00:53,159 --> 00:00:55,240
Speaker 1: it will have to refrain from buybacks for the next

18
00:00:55,640 --> 00:00:58,520
Speaker 1: three quarters to investors, and investors tend to want those

19
00:00:58,800 --> 00:01:01,120
Speaker 1: buyo backs, So that explains at the shares being down

20
00:01:01,200 --> 00:01:04,600
Speaker 1: this morning. From a strategic perspective, though, this does represent

21
00:01:04,720 --> 00:01:06,680
Speaker 1: quite a big bet on Hong Kong and the time

22
00:01:06,720 --> 00:01:10,000
Speaker 1: when there's lots of happening there. At the moment, dealmaking

23
00:01:10,080 --> 00:01:12,080
Speaker 1: is on the up again, it's rising again. But then

24
00:01:12,120 --> 00:01:14,200
Speaker 1: at the same time the banking sector is under a

25
00:01:14,200 --> 00:01:16,720
Speaker 1: lot of stress from a real estate slam that has

26
00:01:16,800 --> 00:01:19,560
Speaker 1: left a lot of banks with bad, really bad commercial

27
00:01:19,560 --> 00:01:23,760
Speaker 1: real estate debt. The CEO, George Lderry, said that the

28
00:01:23,880 --> 00:01:26,280
Speaker 1: deal had nothing to do with the bad debt situation

29
00:01:26,360 --> 00:01:28,800
Speaker 1: and that it was very much an investment for growth.

30
00:01:28,840 --> 00:01:31,200
Speaker 1: But for now inversas aren't too keen on what that

31
00:01:31,240 --> 00:01:32,600
Speaker 1: means for their shareholder returns.

32
00:01:32,640 --> 00:01:37,120
Speaker 3: Of course, yeah, absolutely, HSBC shares also trading in Hong Kong.

33
00:01:37,160 --> 00:01:38,720
Speaker 3: We are lower overnight.

34
00:01:39,560 --> 00:01:39,880
Speaker 1: Now.

35
00:01:40,520 --> 00:01:45,440
Speaker 3: State agents normally love a client with a budget, but

36
00:01:45,720 --> 00:01:49,320
Speaker 3: the rumors around Rachel Reeves's upcoming budget is actually turning

37
00:01:49,360 --> 00:01:51,760
Speaker 3: things a bit more at sour in the property market.

38
00:01:51,880 --> 00:01:53,000
Speaker 3: Just to explain why.

39
00:01:52,920 --> 00:01:55,840
Speaker 1: Yeah, absolutely so we have some of the key US

40
00:01:56,120 --> 00:01:58,280
Speaker 1: UK Sorry a house builder names this morning down so

41
00:01:58,400 --> 00:02:02,120
Speaker 1: Taylor wimpy person about red Row, and that is because

42
00:02:02,160 --> 00:02:04,520
Speaker 1: there's new data showing that there's even more pressure on

43
00:02:04,560 --> 00:02:07,760
Speaker 1: the UK housing market at the moment. So we've had

44
00:02:08,080 --> 00:02:11,120
Speaker 1: a new research that shows that ukstate agents have turned

45
00:02:11,120 --> 00:02:13,720
Speaker 1: pessimistic for the first time in two years, and that

46
00:02:13,800 --> 00:02:16,600
Speaker 1: is due to those fears of tax rises and wider

47
00:02:16,680 --> 00:02:19,600
Speaker 1: economic concerns. So a lot of that gloomy feeling can

48
00:02:19,639 --> 00:02:22,440
Speaker 1: be attributed to those rising worries that there will be

49
00:02:23,000 --> 00:02:26,280
Speaker 1: more tax increases in the budget in November as Chancellor

50
00:02:26,240 --> 00:02:28,880
Speaker 1: of ragel Reeves really tries to plug that fiscal hole,

51
00:02:29,600 --> 00:02:32,280
Speaker 1: and those tax rises will probably weigh even more on

52
00:02:32,320 --> 00:02:34,400
Speaker 1: a housing market that's already not in the best spot.

53
00:02:34,440 --> 00:02:37,040
Speaker 1: It's already had to deal with stamp duty increases in

54
00:02:37,080 --> 00:02:42,240
Speaker 1: April and just wider economic concerns. So some agents have

55
00:02:42,320 --> 00:02:45,880
Speaker 1: said that the usual pickup post summer has not materialized

56
00:02:46,160 --> 00:02:49,600
Speaker 1: yet because buyers are actually delaying decisions until we get

57
00:02:49,639 --> 00:02:51,360
Speaker 1: that budget. So we'll have to keep an eye on that.

58
00:02:51,400 --> 00:02:53,720
Speaker 1: But in the meantime, it seems like the house building

59
00:02:53,760 --> 00:02:57,160
Speaker 1: sector doesn't have the best outlook so far. Yeah.

60
00:02:57,160 --> 00:03:00,000
Speaker 3: Absolutely, you got to think that the stamp duty tax

61
00:03:00,160 --> 00:03:03,519
Speaker 3: on property purchases goes from zero if you're buying the

62
00:03:03,600 --> 00:03:06,239
Speaker 3: least expenses up to one hundred and twenty five thousand pounds,

63
00:03:06,240 --> 00:03:08,720
Speaker 3: but then if you're over one point five million, it

64
00:03:08,720 --> 00:03:13,120
Speaker 3: gets up to twelve percent twelve percent tax on the

65
00:03:13,160 --> 00:03:15,960
Speaker 3: price the value of that property that has to be paid,

66
00:03:15,960 --> 00:03:20,240
Speaker 3: so it is a significant tax. Lloyd's also has responded

67
00:03:20,240 --> 00:03:23,480
Speaker 3: to the FCA's long running motor finance saga, just briefly

68
00:03:23,520 --> 00:03:24,480
Speaker 3: on their share price.

69
00:03:24,720 --> 00:03:27,040
Speaker 1: Yeah well, it put out as stament today is saying

70
00:03:27,040 --> 00:03:29,720
Speaker 1: they will have to set aside additional provision to compensate

71
00:03:29,760 --> 00:03:32,680
Speaker 1: customers who have missed all those carloons. It did not

72
00:03:32,720 --> 00:03:34,800
Speaker 1: give a figure, but it said the provision might be

73
00:03:35,200 --> 00:03:38,440
Speaker 1: materials already set aside one point fifteen billion pounds and

74
00:03:38,520 --> 00:03:41,120
Speaker 1: probably have to set aside another five hundred million, and

75
00:03:41,160 --> 00:03:42,640
Speaker 1: that is driving down the sheds.

76
00:03:43,960 --> 00:03:48,000
Speaker 2: The stock Mover's report from Bloomberg Radio. Check back with

77
00:03:48,080 --> 00:03:50,640
Speaker 2: us throughout the day for the latest roundup of companies

78
00:03:50,720 --> 00:03:53,800
Speaker 2: making news on Wall Street and for the latest market

79
00:03:53,840 --> 00:03:58,320
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

80
00:03:58,400 --> 00:04:01,760
Speaker 2: Bloomberg dot com, and on Apple CarPlay and Android Auto

81
00:04:01,840 --> 00:04:03,440
Speaker 2: with the Bloomberg Business app.