WEBVTT - AB Foods Falls, Crest Nicholson Tumbles, SSE

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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 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 1>by Bloomberg reporter Chloe Melee. Chloe, good morning. Let's start

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<v Speaker 1>with some news from AB Foods, a company name we've

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<v Speaker 1>often flagged is somewhat logical, and it's about to become

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<v Speaker 1>a little bit more logical.

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<v Speaker 2>Yeah.

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<v Speaker 3>Absolutely, So there's a couple of things for Maybe Foods

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<v Speaker 3>to flag this morning. So first of all, it mentioned

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<v Speaker 3>quite a lot of weakness across the board, so it

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<v Speaker 3>downgraded expectations for its sugar business. And they also said

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<v Speaker 3>that its fashion prime Mark, had experienced softer trading in

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<v Speaker 3>April because for the Middle East conflict really hitting that

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<v Speaker 3>consumer confidence. So that has led the shares weeker this morning.

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<v Speaker 3>But the bigger update in what you were hinting at,

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<v Speaker 3>is that the company is going ahead with the separation

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<v Speaker 3>of prime Mark from its food operation. So this is

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<v Speaker 3>a de merger that is set to complete by the

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<v Speaker 3>end of twenty twenty seven and it will result in

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<v Speaker 3>those two entities being listed separately under London Stock Exchange.

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<v Speaker 3>So that is a really massive change in the history

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<v Speaker 3>of the group. It's a breakup of one of the

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<v Speaker 3>UK's biggest conglomerate and it is a plan that was

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<v Speaker 3>first announced as a possibility back in November because Prime

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<v Speaker 3>Mark had just grown so much. And so now we've

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<v Speaker 3>got those two separate businesses and that will face really

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<v Speaker 3>different challenges. We've got those inflationary pressures that will be

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<v Speaker 3>a big challenge for the food business and then for

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<v Speaker 3>the Primark business. There's weak consumer confidence that obviously prime

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<v Speaker 3>market what ABE Foods are already flagged. But then there's

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<v Speaker 3>also this rising competition from online rivals like Shean as well,

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<v Speaker 3>so that's going to be a bit of a problem

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<v Speaker 3>as well. But we have the shares weaker this morning,

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<v Speaker 3>though that is mostly in reaction according to analysts to

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<v Speaker 3>that weaker Shulgar business and weaker Primark sales as well.

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<v Speaker 1>Okay, so that's for AB Foods and their shares down

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<v Speaker 1>four point three percent in London. Another share that's dropping

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<v Speaker 1>sharply this morning the UK home builder krest Nicholson. What's

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<v Speaker 1>going on yeah.

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<v Speaker 3>Really massive guidance cut at Chris Nicholson, and they said

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<v Speaker 3>that it was due to economic uncertainty, so saying essentially

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<v Speaker 3>that buyers were being deterred by interest rates still being

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<v Speaker 3>quite high, and then of course the macroeconomic backdrop that

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<v Speaker 3>has led to a deteriorating consumer confidence that has meant

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<v Speaker 3>a fewer land sales and that has forced Chres Nicholson

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<v Speaker 3>to prioritize cash a preservation and so this profit warning

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<v Speaker 3>has led the shares down massively this morning, really plummeting

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<v Speaker 3>and also dragging the rest of the UK home builders lower.

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<v Speaker 3>So we've got the likes of Barrett Redrow, Taylor, wimp

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<v Speaker 3>Person and all of those names in the red as

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<v Speaker 3>well today. So for Chres Nicholson specifically, it means a

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<v Speaker 3>lot of pain this year, but then potentially that is

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<v Speaker 3>necessary to get back on track. So for example, RBC

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<v Speaker 3>analysts have said that they have made a decision to

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<v Speaker 3>play at the long game and that this would have

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<v Speaker 3>really hit profit this year, but that they essentially agree

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<v Speaker 3>with the decision not to sell land at suboptimal prices

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<v Speaker 3>and to kind of wait it out. So the guidance

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<v Speaker 3>is going to put a lot of pressure on the

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<v Speaker 3>company right now, but we'll see if this was actually

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<v Speaker 3>a good decision to kind of get back on track later.

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<v Speaker 1>Okay, well, let's go to an energy company next, SSA.

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<v Speaker 1>What's the news from them?

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<v Speaker 3>Yeah, well, the renewable sector in the UK is fittingly

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<v Speaker 3>in the green today. That's because the UK is said

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<v Speaker 3>to be speeding up efforts to cut the costs of

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<v Speaker 3>green electricity by essentially reducing its exposure to more expensive

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<v Speaker 3>gas and de linking gas and power prices. So what

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<v Speaker 3>that actually means is that the UK will, for example,

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<v Speaker 3>offer new voluntary subsidies for older wind and solar farms

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<v Speaker 3>and encourage them to move to cheaper fixed contracts. So

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<v Speaker 3>of course that is very relevant the moment, given that

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<v Speaker 3>guess costs have been rising very sharply because of the

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<v Speaker 3>conflict in Iran, and therefore the government is under a

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<v Speaker 3>lot of pressure to reduce bills for consumers. So all

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<v Speaker 3>of that could be good news for us and for

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<v Speaker 3>our energy bills, but it's also good news for some

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<v Speaker 3>of those renewable names in the UK. So who've got

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<v Speaker 3>SSE and Santraca for example at Hire this morning.

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<v Speaker 2>On the back of that, the stock movers report from

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