WEBVTT - Standard Chartered Record, Whitbread Plan, Stellantis 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>Now, let's take a look at some of these stocks

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<v Speaker 3>on the move today here in Europe. I'm Caroline Hepga

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<v Speaker 3>and we joined by Bloomberg reporter Climbala. Good morning, Chloe,

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<v Speaker 3>So let's wade through all of these earnings in Europe.

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<v Speaker 3>What stands out to you this morning, Cloe.

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<v Speaker 1>Yeah, one of the big standouts for me this morning

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<v Speaker 1>was Standard Chartered, after you know, a week of very

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<v Speaker 1>very busy week of bank earnings, and so for Standard Chartered,

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<v Speaker 1>we had record a first quarter profit way ahead of

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<v Speaker 1>analyst estimates, and that was fueled primarily by really strong

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<v Speaker 1>inflows in its wealth business, and so that helped to

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<v Speaker 1>set higher charges that were linked to the tensions in

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<v Speaker 1>the Middle East. So it booked a credit impairment charge

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<v Speaker 1>of almost three hundred million dollars, which included almost two

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<v Speaker 1>hundred million in precautionary management overlays that were tied to

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<v Speaker 1>the Middle Lease situation in particular. So that is one thing.

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<v Speaker 1>But the wealth inflowers was so good that that really

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<v Speaker 1>offset that and investors on our really looking towards next

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<v Speaker 1>month when the bank is scheduled to unveil some new

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<v Speaker 1>medium term at targets. As well, it's been very busy

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<v Speaker 1>with other banks as well. Today we had SoC GEN,

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<v Speaker 1>we had BNP, we had BBVA as well, seeing really

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<v Speaker 1>strong lending which offset the impact of provisions as well.

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<v Speaker 1>So now that we're coming to the end of this

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<v Speaker 1>bank reporting season, it seems that the main takeaways are

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<v Speaker 1>that there are a lot of charges and provisions related

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<v Speaker 1>to the Middle East intentions, that trading is good, but

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<v Speaker 1>maybe not as good as it was on Wall Street,

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<v Speaker 1>and that there's still this continued uncertainty on the impact

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<v Speaker 1>of inflation going forward on both loan demand and on

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<v Speaker 1>provisions as well.

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<v Speaker 3>Yeah. Absolutely. So that then on the banks, what about

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<v Speaker 3>Whitbread embarking all overhaul. What does that look like for them?

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<v Speaker 1>Yeah, very tough morning for Woodbridshares are down quite significantly,

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<v Speaker 1>and that is after announcing a new five year plan.

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<v Speaker 1>So it's cutting capital spending, it's cutting thousands of jobs

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<v Speaker 1>as well, and the aim of all of that is

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<v Speaker 1>to return two billion pounds to shareholders by twenty thirty one.

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<v Speaker 1>So it plans to cut about thirty eight hundred jobs

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<v Speaker 1>in the Yeken Island, so that's thirteen percent of its workforce.

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<v Speaker 1>That's quite significant. And it also plans to reduce the

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<v Speaker 1>proportion of its properties that it owns outright, so essentially

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<v Speaker 1>it will sell some freehold properties and then sign long

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<v Speaker 1>term rental agreements instead, so there will free up some

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<v Speaker 1>cash and that will be used to fund more shareholder returns,

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<v Speaker 1>So that is the plan. It also plans to terms

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<v Speaker 1>some of its branded restaurants into hotels as well, into

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<v Speaker 1>which means more hotel rooms and therefore better margins. But

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<v Speaker 1>in versus are questioning a little bit this lease hold

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<v Speaker 1>strategy instead of the freehold and also the fact that

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<v Speaker 1>this is a lot of investment short term with maybe

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<v Speaker 1>unclear benefits in the medium term. And then there's the

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<v Speaker 1>added challenge of this higher inflation in this week, consumer

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<v Speaker 1>confidence hurting travel demand and therefore tomant for hotel rooms.

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<v Speaker 3>Yeah, okay, so that's wirdbred Stillantis managed to turn a profit,

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<v Speaker 3>but it hasn't turned its fortunes around as far as

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<v Speaker 3>investors are concerned.

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<v Speaker 1>Why. Yeah, it was quite interesting because recently Stillantas said

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<v Speaker 1>that I had seen a surge in shipments to North

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<v Speaker 1>America and so and list had really seen this as

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<v Speaker 1>a sign that this market was really back on track,

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<v Speaker 1>especially given that North America is such an important market

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<v Speaker 1>for Stillantis. But then today there was actually weaker than

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<v Speaker 1>expected performance in that region and a lower than expected margin,

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<v Speaker 1>and also a one term gain of around four hundred

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<v Speaker 1>million euros for expected future teriffory funds. So some of

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<v Speaker 1>that took the shine off the return to profit. And

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<v Speaker 1>excuse me. The CEO is now about to finanze a

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<v Speaker 1>review of the operations and then will present the results

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<v Speaker 1>in May so next month. And so we have already

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<v Speaker 1>seen Silantis invest billions of dollars in the US and

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<v Speaker 1>walking back its electrification plans and then also stashing some

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<v Speaker 1>prices to win back market share. So there's already some

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<v Speaker 1>parts of this review that are known, but we'll see

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<v Speaker 1>what else is in store and whether or not that

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<v Speaker 1>is investorized enough to turn things around for Silantis.

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