1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:16,600 --> 00:00:18,040 Speaker 1: Well, let's take a look at some of the stocks 5 00:00:18,040 --> 00:00:20,640 Speaker 1: on the move today here in Europe. Joe Easton from 6 00:00:20,640 --> 00:00:24,400 Speaker 1: our equities team joins us. Now, Joe isn't just any 7 00:00:24,480 --> 00:00:28,280 Speaker 1: stocks to watch segment, it's an MNS stop to watch segment. 8 00:00:28,320 --> 00:00:29,960 Speaker 1: What's going on with the UK retailer? 9 00:00:30,120 --> 00:00:33,239 Speaker 3: Yeah, that was fantastic So m ands now they are 10 00:00:33,280 --> 00:00:36,720 Speaker 3: reporting that this cyber attack that's hit their online business, 11 00:00:36,840 --> 00:00:39,280 Speaker 3: it's going to cost them three hundred million quid in 12 00:00:39,320 --> 00:00:42,000 Speaker 3: operating profit for the year ahead. Now that is a 13 00:00:42,000 --> 00:00:45,840 Speaker 3: lot of cash. Apparently the disruption to online and home 14 00:00:46,280 --> 00:00:49,960 Speaker 3: sales for clothing as well, so online clothing and home 15 00:00:50,120 --> 00:00:52,960 Speaker 3: costing them three million pounds a day in sales. So 16 00:00:53,080 --> 00:00:56,080 Speaker 3: really a massive impact for the stock. So the stock 17 00:00:56,680 --> 00:01:00,080 Speaker 3: is down around two percent at the moment, taking a 18 00:01:00,120 --> 00:01:03,240 Speaker 3: month long decline to around twelve percent. Of the stocks 19 00:01:03,240 --> 00:01:06,760 Speaker 3: lost twelve percent. It's news of this cyber attack did 20 00:01:06,959 --> 00:01:10,840 Speaker 3: break and as the market reaction is showing, and it's 21 00:01:10,880 --> 00:01:12,920 Speaker 3: probably not pricing in as much of a hit as this, 22 00:01:13,080 --> 00:01:16,160 Speaker 3: So three hundred million pounds hitting the profit and m 23 00:01:16,160 --> 00:01:17,440 Speaker 3: ands lower this morning. 24 00:01:17,520 --> 00:01:20,080 Speaker 4: Yeah, and cyber attacks really coming to the force. It's 25 00:01:20,120 --> 00:01:22,039 Speaker 4: not as if there hasn't been warning, but it's just 26 00:01:22,120 --> 00:01:24,720 Speaker 4: the names that are involved that you know. Obviously a 27 00:01:24,800 --> 00:01:27,680 Speaker 4: high street retailer like MNS, but also I think Harold's 28 00:01:27,720 --> 00:01:31,800 Speaker 4: and co Op and others have been affected to and targeted. 29 00:01:32,280 --> 00:01:34,000 Speaker 4: So I think something we're going to be hearing a 30 00:01:34,000 --> 00:01:36,480 Speaker 4: lot more about. Meanwhile, JD Sport getting a run for 31 00:01:36,560 --> 00:01:39,800 Speaker 4: its money because of a pretty bleak sales report. 32 00:01:40,200 --> 00:01:45,480 Speaker 3: I just got that one that just run it. I 33 00:01:45,480 --> 00:01:49,160 Speaker 3: need to stay on my toes with these. So JD 34 00:01:49,320 --> 00:01:51,360 Speaker 3: now they have reported a five and a half percent 35 00:01:51,440 --> 00:01:54,720 Speaker 3: decline in light flight sales in North America. So JD 36 00:01:55,040 --> 00:01:57,559 Speaker 3: is interesting because they spent a lot of money, several 37 00:01:57,600 --> 00:02:00,760 Speaker 3: billions of investing in the US to make business more 38 00:02:00,880 --> 00:02:04,560 Speaker 3: US focus. They did that just as a downturn in 39 00:02:04,800 --> 00:02:07,280 Speaker 3: the US consumer came around a year and a half ago, 40 00:02:07,560 --> 00:02:10,320 Speaker 3: and therefore they haven't really made the money that they've 41 00:02:10,360 --> 00:02:15,280 Speaker 3: looked to from that investment. Now, JD Sports shares dropping 42 00:02:15,440 --> 00:02:17,600 Speaker 3: it the open today by around ten percent. I was 43 00:02:17,680 --> 00:02:20,160 Speaker 3: chatting to a couple of traders on this one, and 44 00:02:20,200 --> 00:02:21,960 Speaker 3: they say that one of the things, one of the 45 00:02:21,960 --> 00:02:24,320 Speaker 3: reasons people are trading the stock downstay is because they've 46 00:02:24,320 --> 00:02:28,880 Speaker 3: removed the specific numerical guidance in their statement and they've 47 00:02:28,919 --> 00:02:31,680 Speaker 3: just said it'll be a little bit weaker and that 48 00:02:31,760 --> 00:02:34,720 Speaker 3: has spooked traders today. So they've thought the stock hit hard. 49 00:02:34,760 --> 00:02:36,440 Speaker 3: And it's also one of those stocks that never seems 50 00:02:36,480 --> 00:02:39,480 Speaker 3: to trade up or down two percent. It's always either 51 00:02:39,560 --> 00:02:42,280 Speaker 3: up ten percent down ten percent. The moment is trading 52 00:02:42,320 --> 00:02:44,880 Speaker 3: down six percent after ten percent drop at the open, 53 00:02:44,960 --> 00:02:46,959 Speaker 3: down thirty percent over the past year. 54 00:02:47,120 --> 00:02:48,720 Speaker 1: All right, and just talk us through how that latest 55 00:02:48,800 --> 00:02:51,920 Speaker 1: UK inflation data is affecting the house builders because we've 56 00:02:51,919 --> 00:02:54,279 Speaker 1: got beats at the headline services and care levels. 57 00:02:54,680 --> 00:02:57,520 Speaker 3: Yeah, so with the move high in guilt yields, we're 58 00:02:57,520 --> 00:03:01,280 Speaker 3: seeing the likes of Taylor Wimp, Barrett Drove, Berkeley Person 59 00:03:01,280 --> 00:03:03,400 Speaker 3: and pretty much all of them down by one percent 60 00:03:03,400 --> 00:03:06,880 Speaker 3: to two percent extending declines as well. Now, this is 61 00:03:06,880 --> 00:03:10,320 Speaker 3: a sector where the valuations are so low they trade 62 00:03:10,360 --> 00:03:14,080 Speaker 3: below their book values. So essentially these companies they're worth 63 00:03:14,200 --> 00:03:16,960 Speaker 3: less than the land they own. So if essentially, if 64 00:03:16,960 --> 00:03:19,520 Speaker 3: you wanted to buy a plot of land, it'd be 65 00:03:19,720 --> 00:03:22,280 Speaker 3: cheaper to buy the actual home builder rather than land itself. 66 00:03:22,320 --> 00:03:23,960 Speaker 3: So it's kind of one of these weird things where 67 00:03:24,200 --> 00:03:27,079 Speaker 3: the valuations are so low and not pricing in a 68 00:03:27,200 --> 00:03:31,440 Speaker 3: recovery volumes. So the UK government looking to build one 69 00:03:31,440 --> 00:03:33,680 Speaker 3: point five million homes. Of course we only built around 70 00:03:33,720 --> 00:03:37,680 Speaker 3: three hundred thousand homes last year, so the market is 71 00:03:37,720 --> 00:03:40,520 Speaker 3: just not pricing that in atol. Really it's not giving 72 00:03:40,600 --> 00:03:44,120 Speaker 3: any value to the government's plan to boost home builders. 73 00:03:44,120 --> 00:03:46,600 Speaker 3: They're all waiting for rates to come down, and given 74 00:03:46,880 --> 00:03:49,240 Speaker 3: the hot than expected inflation, they're not pricing that in 75 00:03:49,280 --> 00:03:51,640 Speaker 3: today either, and the sector is lower once again. 76 00:03:52,960 --> 00:03:57,000 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 77 00:03:57,080 --> 00:03:59,600 Speaker 2: us throughout the day for the latest roundup of companies 78 00:03:59,680 --> 00:04:02,840 Speaker 2: Mickey News on Wall Street, and for the latest market 79 00:04:02,840 --> 00:04:07,320 Speaker 2: moving headlines. 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