WEBVTT - Edenred Rises, Tesco Dips, Evonik Down

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look. Had some stocks on the midday

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<v Speaker 3>and Europe imecas all up with Karen Hepger and we

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<v Speaker 3>enjoyed as ever by Bloomberg's breaking news edit, said Louise Moon.

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<v Speaker 3>So let's start with Eden. Read Louise. The payments firms

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<v Speaker 3>in the green this morning, up by double digits. What's

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<v Speaker 3>going on?

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<v Speaker 1>Yes, so shares up by eighteen percent. So if you

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<v Speaker 1>look at kind of back on their a graph of

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<v Speaker 1>their share price absolutely shot up this morning to levels

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<v Speaker 1>last scene in late last year, late twenty twenty five.

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<v Speaker 1>This is after they've been approached by BC Partners about

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<v Speaker 1>a potential takeover. So this was confirmed this morning, confirming

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<v Speaker 1>local media reporting in France that had said that they've

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<v Speaker 1>been approached by the takeover and also that BC Funds

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<v Speaker 1>had approached four other funds to create consortium to take

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<v Speaker 1>over Eden Red. So that's kind of all the detail

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<v Speaker 1>we have at the moment. There's no certainty about offer

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<v Speaker 1>that will be made, but on the back of that

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<v Speaker 1>limited News shares rose eighteen percent, and we'll be keeping

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<v Speaker 1>an eye to see if any deal is well, an

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<v Speaker 1>offer is made and any deal comes to fruition with that, okay,

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<v Speaker 1>So that on Eden read I. Meanwhile, every little is

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<v Speaker 1>not really helping the UK's largest supermarket chain, that's Tesco,

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<v Speaker 1>it is not. They had their first quarter results this

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<v Speaker 1>morning and essentially it was a combination of two very

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<v Speaker 1>British things. Wet weather and a bit of pessimism didn't

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<v Speaker 1>really help Tesco's taking a bit of a toll. So

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<v Speaker 1>like flight sales missed estimates. They rose, they did rise,

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<v Speaker 1>they rose one point eight percent, but it was expected

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<v Speaker 1>to rise two point seven percent, So missing those estimates.

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<v Speaker 1>Shares down. As you say, they're down almost four percent

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<v Speaker 1>at one point this morning. So as I say, they're

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<v Speaker 1>citing two main things, so one less consumer confidence essentially

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<v Speaker 1>obviously the Iram war hitting a host of costs, costs rising,

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<v Speaker 1>purse strings being tightened. And then on the other side,

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<v Speaker 1>it was quite a tough comparison to results last year.

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<v Speaker 1>Last year was very hot weather, this year less so

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<v Speaker 1>in that period. So last year's hot weather fuel sales

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<v Speaker 1>of items like barbecues, drinks, those kind of things. So

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<v Speaker 1>it was a tough comparison because of the weather, and

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<v Speaker 1>also there's a factor that last year was also even

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<v Speaker 1>better because there was a cyber attack at MNS which

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<v Speaker 1>essentially drove shoppers to Tesco. So a tough comparison and

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<v Speaker 1>weaker consumer sentiment has to be said. It's not all bad.

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<v Speaker 1>Tesco is still, as you said, the UK's largest supermarket

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<v Speaker 1>by a long way. It's also been ramping up sales

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<v Speaker 1>of its premium range that performed really well and it

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<v Speaker 1>kept its outlook steady, so analyst is saying they're not

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<v Speaker 1>too concerned. The online performance is still strong and actually

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<v Speaker 1>this fallen share by this morning could be treated as

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<v Speaker 1>a bit of a buying opportunity.

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<v Speaker 3>And finally, German chemicals company Evo nick now they've set

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<v Speaker 3>off a market reaction.

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<v Speaker 1>They have they are for not very happy reason. Potentially

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<v Speaker 1>they're shareding more jobs and they're exploring options for one

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<v Speaker 1>of their units, so they're polyester business, so this is

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<v Speaker 1>and that's obviously to raise cash. So it's another three thousand,

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<v Speaker 1>two hundred jobs, mostly in Germany, it's home country, and

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<v Speaker 1>that takes their total job cuts to about six thousand,

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<v Speaker 1>which is about fifth of its workforce. They're saying that

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<v Speaker 1>competition internationally is very fierce, increasingly fierce, particularly from Asia.

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<v Speaker 1>They also cited unpredictable politics globally, persistently weak economic growth,

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<v Speaker 1>and it's an ongoing story. They've been on a cost

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<v Speaker 1>cutting drive for about two years and it's happening across

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<v Speaker 1>the whole chemicals industry. So shares fell as much as

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<v Speaker 1>about three percent.

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<v Speaker 2>with the Bloomberg Business app. Mm hmm