WEBVTT - HSBC Drops, UniCredit Gains, AB InBev Rises

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

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<v Speaker 2>Stock Movers Report, 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 1>But 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 with Lizzie Burton

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<v Speaker 1>and we're joined by Bloomberg reporter Chloe made Chloe. Good morning.

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<v Speaker 1>We're going to start with HSBC, the worst performing share

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<v Speaker 1>in the stock six hundred at the moment, down over

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<v Speaker 1>five percent.

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<v Speaker 2>Why is that?

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<v Speaker 3>Yeah, quite a lot of weakness from HSBC this morning

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<v Speaker 3>after quite disappointing set of results. So the performance was

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<v Speaker 3>really weighed down by a couple of big charges, So

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<v Speaker 3>a four hundred million dollar charge related to a fraud

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<v Speaker 3>related exposure in the UK, and then also three hundred

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<v Speaker 3>million dollar charge were tied to the deteriorating economic outlook

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<v Speaker 3>because of what's happening in the Middle East. So there

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<v Speaker 3>were some stronger parts in the results. We had a

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<v Speaker 3>solid performance in the wealth segment for example, there was

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<v Speaker 3>an upgrade within their interest income guidance as well, but

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<v Speaker 3>the charges were very much top of mind for investors

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<v Speaker 3>and it's of course adding to worries about the future

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<v Speaker 3>of that region as a key growth market for banks.

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<v Speaker 3>You know, HSBC had planned for major wealth and corporate

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<v Speaker 3>banking expansion in the Middle East and now that is

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<v Speaker 3>of course at risk. And then it also adds to

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<v Speaker 3>worries more generally about what the regional tensions will mean

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<v Speaker 3>for the global economy the longer that the conflict goes on.

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<v Speaker 3>And so it's obviously not the first bank this earning

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<v Speaker 3>season to be taking those provisions and those charges into

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<v Speaker 3>warn about the impact. So there's certainly a lot of

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<v Speaker 3>caution around that banking sector, and AHSBC really the latest

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<v Speaker 3>to kind of mention.

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<v Speaker 1>That, well, yeah, diving into that sector.

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<v Speaker 2>You've also had UniCredit reporting results today.

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<v Speaker 1>You've also had that recent takeover related headline, all of

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<v Speaker 1>all the comments bank stuff.

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<v Speaker 2>What's been the reaction.

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<v Speaker 3>Yeah, unicreda is having a better day than HSBC for sure.

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<v Speaker 3>So profit hit a record that was boosted by fee

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<v Speaker 3>income in particular, which is really strong, and it also

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<v Speaker 3>upgraded its four year targets. And as you mentioned, this

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<v Speaker 3>of course comes at quite a pivotal moment for UniCredit

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<v Speaker 3>because it is preparing to submit it's takeover bid. Excuse me,

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<v Speaker 3>for Commas Bank, and so the bid is structor to

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<v Speaker 3>lift Unicredits holding just above the thirty percent threshold that

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<v Speaker 3>would trigger a mandatory offer. And so the plan A

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<v Speaker 3>values Commas Bank at about seven percent below my market

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<v Speaker 3>value actually, so that might mean that investors might be

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<v Speaker 3>reluctant to tender those shares. It's also worth noting, of course,

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<v Speaker 3>that Commas Bank, as well as the German government, which

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<v Speaker 3>is a major shareholder, are both very much opposed to

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<v Speaker 3>a takeover and have been opposed to it for the

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<v Speaker 3>entire time that UniCredit has been making that pursuit, and

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<v Speaker 3>so it's not a done deal at all, but at

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<v Speaker 3>least the results is suggesting that UniCredit is already very

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<v Speaker 3>strong on its own as we wait for more details

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<v Speaker 3>on that takeover bid.

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<v Speaker 1>Okay, so that's on UniCredit and turning to a bit

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<v Speaker 1>of phiz in ab Invert's latest results. Their shares over

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<v Speaker 1>six percent.

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<v Speaker 3>Yeah, it's pretty could serve results from AB and BEV

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<v Speaker 3>Volumes increased, not majorly, but they did increase compared to

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<v Speaker 3>expectations of a decline. It also beat across a lot

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<v Speaker 3>of different metrics, so a good set of results, and

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<v Speaker 3>that was driven primarily by really strong beer demand in Mexico, Peru,

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<v Speaker 3>and Colombia, and so that managed to offset some of

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<v Speaker 3>the weakness that we saw in the US and China.

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<v Speaker 3>And it's also really benefiting from the diversification of its

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<v Speaker 3>portfolio beyond just beers, so it has now a lot

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<v Speaker 3>of kind of what it calls ready to drink beverages,

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<v Speaker 3>so things like canned cocktails, and it's also making quite

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<v Speaker 3>a lot of inroads into non alcoholic beers as well.

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<v Speaker 3>So from the big three beer companies we've got in Europe,

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<v Speaker 3>so Heineken, Karsberg, and ab in Bev, ab in Bev

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<v Speaker 3>seems to be the most resilient one. Hankan and Carsburg

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<v Speaker 3>have warned about the conflict in the Middle East, the

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<v Speaker 3>impact on energy costs, on raw materials costs. They've also

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<v Speaker 3>been really hit by the weakness from a declining alcohol

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<v Speaker 3>consumption globally. But ab in Bev has seemed to be

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<v Speaker 3>much more resilient because of that diversification, but also because

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<v Speaker 3>it is really benefiting from that exposure to Latin America,

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<v Speaker 3>where it seems that people are still very much keen

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<v Speaker 3>for a.

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<v Speaker 2>Little bit of his The Stock Movers Report from Bloomberg Radio.

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