WEBVTT - HSBC Slumps, Taylor Wimpey Down, Lloyds Falls 

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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 stocks on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hepget. I'm joined bar

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<v Speaker 3>Blomberger portaclomb La. Good morning, Gary. Let's start with hst BC.

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<v Speaker 3>They're going big on Hong Kong. What about the investor

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<v Speaker 3>reaction though.

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<v Speaker 1>Yeah, they actually down quite a bit this morning after

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<v Speaker 1>announcing the plans to privatize Hanksang Bank, which is one

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<v Speaker 1>of its Hong Kong subsidiaries that has been in quite

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<v Speaker 1>a troubled spot lately. So HSBC owns about sixty three

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<v Speaker 1>percent of that bank and we'll spend around fourteen billion

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<v Speaker 1>dollars buying the shares it doesn't already hold. The problem

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<v Speaker 1>that investors seem to have with this is that to

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<v Speaker 1>keep its capital ratio within range, HSBC said it will

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<v Speaker 1>it will have to refrain from buybacks for the next

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<v Speaker 1>three quarters to investors, and investors tend to want those

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<v Speaker 1>buyo backs, So that explains at the shares being down

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<v Speaker 1>this morning. From a strategic perspective, though, this does represent

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<v Speaker 1>quite a big bet on Hong Kong and the time

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<v Speaker 1>when there's lots of happening there. At the moment, dealmaking

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<v Speaker 1>is on the up again, it's rising again. But then

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<v Speaker 1>at the same time the banking sector is under a

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<v Speaker 1>lot of stress from a real estate slam that has

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<v Speaker 1>left a lot of banks with bad, really bad commercial

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<v Speaker 1>real estate debt. The CEO, George Lderry, said that the

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<v Speaker 1>deal had nothing to do with the bad debt situation

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<v Speaker 1>and that it was very much an investment for growth.

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<v Speaker 1>But for now inversas aren't too keen on what that

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<v Speaker 1>means for their shareholder returns.

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<v Speaker 3>Of course, yeah, absolutely, HSBC shares also trading in Hong Kong.

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<v Speaker 3>We are lower overnight.

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<v Speaker 1>Now.

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<v Speaker 3>State agents normally love a client with a budget, but

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<v Speaker 3>the rumors around Rachel Reeves's upcoming budget is actually turning

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<v Speaker 3>things a bit more at sour in the property market.

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<v Speaker 3>Just to explain why.

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<v Speaker 1>Yeah, absolutely so we have some of the key US

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<v Speaker 1>UK Sorry a house builder names this morning down so

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<v Speaker 1>Taylor wimpy person about red Row, and that is because

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<v Speaker 1>there's new data showing that there's even more pressure on

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<v Speaker 1>the UK housing market at the moment. So we've had

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<v Speaker 1>a new research that shows that ukstate agents have turned

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<v Speaker 1>pessimistic for the first time in two years, and that

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<v Speaker 1>is due to those fears of tax rises and wider

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<v Speaker 1>economic concerns. So a lot of that gloomy feeling can

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<v Speaker 1>be attributed to those rising worries that there will be

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<v Speaker 1>more tax increases in the budget in November as Chancellor

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<v Speaker 1>of ragel Reeves really tries to plug that fiscal hole,

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<v Speaker 1>and those tax rises will probably weigh even more on

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<v Speaker 1>a housing market that's already not in the best spot.

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<v Speaker 1>It's already had to deal with stamp duty increases in

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<v Speaker 1>April and just wider economic concerns. So some agents have

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<v Speaker 1>said that the usual pickup post summer has not materialized

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<v Speaker 1>yet because buyers are actually delaying decisions until we get

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<v Speaker 1>that budget. So we'll have to keep an eye on that.

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<v Speaker 1>But in the meantime, it seems like the house building

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<v Speaker 1>sector doesn't have the best outlook so far. Yeah.

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<v Speaker 3>Absolutely, you got to think that the stamp duty tax

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<v Speaker 3>on property purchases goes from zero if you're buying the

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<v Speaker 3>least expenses up to one hundred and twenty five thousand pounds,

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<v Speaker 3>but then if you're over one point five million, it

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<v Speaker 3>gets up to twelve percent twelve percent tax on the

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<v Speaker 3>price the value of that property that has to be paid,

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<v Speaker 3>so it is a significant tax. Lloyd's also has responded

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<v Speaker 3>to the FCA's long running motor finance saga, just briefly

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<v Speaker 3>on their share price.

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<v Speaker 1>Yeah well, it put out as stament today is saying

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<v Speaker 1>they will have to set aside additional provision to compensate

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<v Speaker 1>customers who have missed all those carloons. It did not

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<v Speaker 1>give a figure, but it said the provision might be

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<v Speaker 1>materials already set aside one point fifteen billion pounds and

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<v Speaker 1>probably have to set aside another five hundred million, and

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<v Speaker 1>that is driving down the sheds.

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