WEBVTT - HSBC Up, Aston Martin Cuts, Dismal Diageo 

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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 have a look now at some of the stocks

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

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<v Speaker 3>and I'm joined as usual by Bloomberg with portacloim Lay.

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<v Speaker 1>Good morning. So the turnaround.

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<v Speaker 3>Plans that HSBC has been undertaking, they seem to have

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<v Speaker 3>been quite big winners so far.

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<v Speaker 1>We'll get onto other turnaround plans in a moment.

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<v Speaker 4>Yeah, absolutely, so, very good results all around for HSBC

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<v Speaker 4>this morning. So we have got a better than expected

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<v Speaker 4>profit in twenty twenty five, things to strong performance in

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<v Speaker 4>the wealth business, but also really good results at the

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<v Speaker 4>Hong Kong franchise as well. And then the bank also

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<v Speaker 4>said that it would it would hit a cost saving

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<v Speaker 4>target ahead of schedule, six months ahead of schedule. So

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<v Speaker 4>this all seems to point, as you said, to a

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<v Speaker 4>turn of around that is paying off, that has paid off.

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<v Speaker 4>So since taking over as CEO in twenty twenty four

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<v Speaker 4>of George Elderry has led a really major restructuring of

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<v Speaker 4>the bank.

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<v Speaker 1>He's cut thousands of jobs.

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<v Speaker 4>He's sold some businesses, some other businesses have been merged,

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<v Speaker 4>some others have been closed, so a really major restructuring.

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<v Speaker 4>And he also doubled down on a strategy of focusing

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<v Speaker 4>on Asia and that's proven to be also very successful.

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<v Speaker 4>So all of that is now paying off and we

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<v Speaker 4>can see that in the earnings this morning, and the

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<v Speaker 4>shares rose very strongly as a result, hitting a record

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<v Speaker 4>as well, and that is after the market value for

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<v Speaker 4>HSBC also broke through two hundred billion dollars for the

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<v Speaker 4>first time in twenty twenty five, so that was a

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<v Speaker 4>really key milestone, and this really strong start to the

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<v Speaker 4>year that we can see today it might signal that

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<v Speaker 4>we might see more record breaking ahead.

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<v Speaker 1>For that bank.

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<v Speaker 3>Absolutely, HSBC's pre tax profit twenty nine point nine billion

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<v Speaker 3>dollars for a twenty twenty five on a slightly different scale,

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<v Speaker 3>but I think very interesting. Aston Martin Lagonda, they've been

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<v Speaker 3>in a turnaround for ages, but really struggling together.

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<v Speaker 1>Yeah, very much so.

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<v Speaker 4>But the market does love some efficiency measures, and so

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<v Speaker 4>the shares rose this morning because the company said it

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<v Speaker 4>would cut as much as twenty percent of its workforce,

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<v Speaker 4>so that's much more than the previous round of drop cuts,

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<v Speaker 4>which was about five percent of the workforce, and as

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<v Speaker 4>the Martains said that there would allow it to make

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<v Speaker 4>about forty million pounds in saving. So, as you mentioned,

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<v Speaker 4>that's part of those turnaround efforts that are taking quite

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<v Speaker 4>a while, and that is to kind of end those

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<v Speaker 4>years and years of losses and reduce a massive debt pile.

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<v Speaker 4>So the loss for twenty twenty five was of almost

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<v Speaker 4>five hundred million pounds and Asam Martin also said that

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<v Speaker 4>it doesn't expect cash flow to turn positive this year,

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<v Speaker 4>so that will be a bit of a disappointment. It

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<v Speaker 4>means that the company is not out of the woods

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<v Speaker 4>just yet. It's been dealing with product delays with a

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<v Speaker 4>slowdown in China, but the main problem really is US

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<v Speaker 4>tariffs because the US is the biggest market. So that

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<v Speaker 4>has led to three profit warnings this year. The latest

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<v Speaker 4>was just a few days ago, just a few days

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<v Speaker 4>before the earnings were released today.

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<v Speaker 1>So for now, job.

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<v Speaker 4>Cuts are making the market quite happy, but there's a

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<v Speaker 4>lot to iron app for that company.

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<v Speaker 3>Yeah, okay, then let's talk about Diaggio the drinks make

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<v Speaker 3>I mean, maybe they're going to need a stift drink

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<v Speaker 3>after today's earnings, can.

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<v Speaker 1>We say that, yeah, I think we can.

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<v Speaker 4>They cut guidance for the second time this fiscal year,

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<v Speaker 4>and that is going to be really the first big

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<v Speaker 4>challenge for the new ce who started just in January.

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<v Speaker 4>So the problem for the company is as a just

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<v Speaker 4>really weak demand in the US and China. Some of

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<v Speaker 4>it is because of discretionary spending being a little bit weaker,

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<v Speaker 4>but some of it is also because people are really

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<v Speaker 4>cutting back.

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<v Speaker 1>On their alcohol consumption.

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<v Speaker 4>And so the new CEO, Dave Lewis, was appointed because

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<v Speaker 4>he managed to turn around Tesco, so the hope was

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<v Speaker 4>that he would be able.

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<v Speaker 1>To turn around the JO as well.

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<v Speaker 4>Of course, it's too soon to say whether he's set

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<v Speaker 4>for success or not. Any will be revealing a strategy

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<v Speaker 4>later this year, considering maybe acid disposals as well. So

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<v Speaker 4>Jeffreys Andelist said that the first half was never going

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<v Speaker 4>to be the time for Diagro strategic resets, so we

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<v Speaker 4>have to wait a little bit more to see if

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<v Speaker 4>that works out. But in the meantime, that guidance cut

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<v Speaker 4>is really hitting the shots.

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<v Speaker 2>This morning, the Stock Movers report from Bloomberg Radio check

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