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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market, harnessing the power of Bloomberg Data.

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Speaker 3: That's take a look now at some stocks on the

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Speaker 3: move in Europe. I'm Stephen Kral with Tom McKenzie and

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Speaker 3: we're joined by Bloomberg reporter Chloe Melee Chloy. Great to

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Speaker 3: talk to you. Let's start with UBS. Then its future

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Speaker 3: in Switzerland could be in doubt.

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Speaker 4: Yeah, absolutely so. UBS has reiterated its critique of Switzerland's

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Speaker 4: plan to increase its capital requirements. It said that would

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Speaker 4: really hurt competitiveness and that it would put its future

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Speaker 4: in doubt. So there was reports that there was a

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Speaker 4: willingness to compromise on both sides on those capital requirements,

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Speaker 4: but then the CEO just said this morning that it

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Speaker 4: is actually not discussing any compromise with the Swiss government.

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Speaker 4: So the rhetoric from UBS here is quite strong because

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Speaker 4: it's really trying to push back on what's estimated to

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Speaker 4: be twenty six billion dollars in capital demands, and it's

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Speaker 4: previously said that it is looking at different options to

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Speaker 4: potentially mitigate that impact. One of those options could be

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Speaker 4: a potential move of the headquarters. So one of the

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Speaker 4: main shareholders, seven Capital, actually said that the bank had

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Speaker 4: no other choice but to either leave Switzerland or be

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Speaker 4: acquired by a competitor. If the reforms are implemented as

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Speaker 4: they are, the move is quite unlikely, and a more

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Speaker 4: likely outcome would be that lawmakers actually dilute some of

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Speaker 4: those proposals when they're debated in parliament. So we'll have

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Speaker 4: to keep an eye on that for UBS.

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Speaker 1: And in a very different space, Cloorie Aesos saying its

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Speaker 1: earnings will likely be lower or at least at the

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Speaker 1: lower end of expectations. Has there been a market reaction?

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Speaker 1: What is underpinning that has the market reacted negatively?

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Speaker 4: It has reacted quite negatively, that to Asource tempering those

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Speaker 4: expectations this morning. So as you said, it said that

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Speaker 4: full year earnings would be at the lower end of

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Speaker 4: those expectations, that sales would actually be lower than expected,

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Speaker 4: and that is because it is going through turnaround plant

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Speaker 4: that is taking a little bit longer than expected. There's

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Speaker 4: been a lot of competition from Sheen of course, the

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Speaker 4: Chinese fast fashion retailer, and then also the fact that

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Speaker 4: there's been some marketing initiatives to kind of win backshoppers

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Speaker 4: to re engage customers, but those have not really fed

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Speaker 4: through into cells yet. So Asos has actually managed to

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Speaker 4: solve its inventory problem, but some of those other actions

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Speaker 4: have not fed through yet. And obviously that photos on

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Speaker 4: from the update that we got from Next a couple

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Speaker 4: of weeks ago flagging lower sales because of the weakening

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Speaker 4: UK economy. So this kind of UK retail sector is

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Speaker 4: definitely something to keep in mind as well as the

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Speaker 4: earnings start to roll through.

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Speaker 3: Yeah, shows down nine percent and asas this morning, Close

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Speaker 3: Brothers down the other end of the spectrum, a beat

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Speaker 3: for them, but also dispose of a key unit.

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Speaker 4: Yeah, quite tough morning. So the shears were down this

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Speaker 4: morning on the news of that disposal. So it is

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Speaker 4: going to be exitinct its vehicle higher business to try

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Speaker 4: and boost a profit. Close Brothers just came out on

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Speaker 4: the other side of quite a long legal battle over

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Speaker 4: motor finance, its motive finance business, and it recorded a

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Speaker 4: thirty million pound impairment charge in relation to the disposal

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Speaker 4: of that vehicle higher business, and it set aside another

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Speaker 4: thirty three million to implement a redress program for customers.

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Speaker 4: They are potentially some bright days ahead for Close Brothers.

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Speaker 4: Despite this short term hit to finances, it received a

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Speaker 4: big boost from the UK Supreme Court last month in

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Speaker 4: that lawsuit over car finance commissions, with a big reduction

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Speaker 4: in the worst case amount that lenders are needing to

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Speaker 4: pay out in compensation. And now some analysts also saying

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Speaker 4: that that decision to exit the vehicle higher business will

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Speaker 4: provide the foundation for future growth. Even though it's not

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Speaker 4: great right now, but long term it could be quite

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Speaker 4: positive for Close Brothers.

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Speaker 2: The Stock Mover's report from Bloomberg Radio. Check back with

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Speaker 2: us throughout the day for the latest roundup of companies

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