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 00:00:16,560 --> 00:00:18,160 Speaker 3: Now, let's take a look at some of the stocks 5 00:00:18,200 --> 00:00:20,720 Speaker 3: on the move today here in Europe. I'm Caroline Hebgar 6 00:00:20,800 --> 00:00:23,720 Speaker 3: with Stephen Carroll. How We're joined by Bloomberg's Breaking News 7 00:00:23,800 --> 00:00:28,000 Speaker 3: editor Louise Moon. Louise, Good morning. Ab Foods. Then, is 8 00:00:28,120 --> 00:00:32,480 Speaker 3: considering separating Primark from the rest of the business. Well, 9 00:00:32,920 --> 00:00:35,519 Speaker 3: does this come of as a huge surprise. It was 10 00:00:35,560 --> 00:00:40,280 Speaker 3: always quite strange, the business really divided between two very 11 00:00:40,320 --> 00:00:41,440 Speaker 3: different business lines. 12 00:00:41,880 --> 00:00:44,680 Speaker 1: Indeed, Yeah, and not too much of us of a surprise. 13 00:00:44,760 --> 00:00:47,360 Speaker 1: It's been kind of long discussed by lot of analysts 14 00:00:47,400 --> 00:00:50,040 Speaker 1: that cover the company, and this is being seen as 15 00:00:50,120 --> 00:00:53,599 Speaker 1: quite positive this morning. So there's one interesting quote from 16 00:00:53,640 --> 00:00:55,600 Speaker 1: one of the Barclays analysts saying they've been fans of 17 00:00:55,640 --> 00:00:58,320 Speaker 1: pure plays and have advocated for a spit for a 18 00:00:58,360 --> 00:01:00,639 Speaker 1: split for quite a long time. So they see this 19 00:01:00,680 --> 00:01:02,720 Speaker 1: is a positive surprise. They haven't seen it as a 20 00:01:02,760 --> 00:01:06,520 Speaker 1: realistic possibility, but now they're seeing it as a positive surprise. 21 00:01:06,600 --> 00:01:08,600 Speaker 1: So long being discussed, it's kind of one of the 22 00:01:08,680 --> 00:01:14,760 Speaker 1: last few remaining huge UK conglomerates, and Primark accounts for 23 00:01:14,959 --> 00:01:20,119 Speaker 1: most of ABF's ABE foods profits, so it's the largest 24 00:01:20,160 --> 00:01:22,440 Speaker 1: chunk of their business, and the chairman are saying that 25 00:01:22,640 --> 00:01:25,200 Speaker 1: this spin off, the potential spin off is being considered 26 00:01:25,240 --> 00:01:26,880 Speaker 1: because of the scale of its business. They want to 27 00:01:26,959 --> 00:01:30,679 Speaker 1: keep a majority stake, but because of that scale they 28 00:01:30,720 --> 00:01:32,280 Speaker 1: want to spin it off. So you know, if it's 29 00:01:32,280 --> 00:01:35,280 Speaker 1: by itself, it could be valued kind of more cleanly 30 00:01:35,319 --> 00:01:38,240 Speaker 1: against retail piers like m ands like Next and those 31 00:01:38,360 --> 00:01:40,679 Speaker 1: kind of companies. So it's early days, but it's being 32 00:01:40,720 --> 00:01:44,040 Speaker 1: taken as quite a positive sign, quite positive indication. And 33 00:01:44,360 --> 00:01:47,240 Speaker 1: I should note it is that they're also reviewing their 34 00:01:47,280 --> 00:01:51,280 Speaker 1: food unit as well, which includes Jordan Cereals, Twinings Tea, 35 00:01:51,520 --> 00:01:53,960 Speaker 1: so that they're reviewing kind of their whole structure and 36 00:01:54,000 --> 00:01:56,400 Speaker 1: those are two possible spin offs, both Primemark and the 37 00:01:56,440 --> 00:01:57,080 Speaker 1: food unit. 38 00:01:57,520 --> 00:01:59,160 Speaker 4: No, it's been argument for quite as well now that 39 00:01:59,160 --> 00:02:02,160 Speaker 4: that's been more soiated than Foods in the Associates British 40 00:02:02,200 --> 00:02:05,200 Speaker 4: Foods title from the dominance of Primark, which shares down 41 00:02:05,240 --> 00:02:07,320 Speaker 4: three point three percent of the moment, let's turn to 42 00:02:07,320 --> 00:02:09,960 Speaker 4: Telifonica now their shares down by nine point eight percent. 43 00:02:10,000 --> 00:02:13,080 Speaker 1: What's happening indeed, Yeah, wiping out all of their growth 44 00:02:13,400 --> 00:02:15,639 Speaker 1: in share price this year this morning. So this is 45 00:02:15,680 --> 00:02:17,560 Speaker 1: because of a new strategy under their chairman. So he 46 00:02:17,639 --> 00:02:20,920 Speaker 1: joined in January, and part of their strategy is to 47 00:02:21,000 --> 00:02:24,639 Speaker 1: slash dividends by half. So of course investors aren't very 48 00:02:24,639 --> 00:02:27,120 Speaker 1: happy about that. So the aim his aim, he wants 49 00:02:27,160 --> 00:02:29,120 Speaker 1: to redirect that cash back into the core of the 50 00:02:29,160 --> 00:02:33,359 Speaker 1: business and then also invest in other kind of side 51 00:02:33,360 --> 00:02:37,600 Speaker 1: areas like defense, like cybersecurity, and it really changes the 52 00:02:38,000 --> 00:02:41,680 Speaker 1: tact of Telefonica. They had for a long time focused 53 00:02:41,720 --> 00:02:47,200 Speaker 1: on shareholder distributions, but he's obviously switching that up. So 54 00:02:47,280 --> 00:02:48,840 Speaker 1: as I say, he wants to invest in different units, 55 00:02:48,880 --> 00:02:53,000 Speaker 1: also talking about acquisitions and redirect back in to their 56 00:02:53,040 --> 00:02:55,320 Speaker 1: own call. But there are some questions over you know, 57 00:02:55,560 --> 00:02:58,200 Speaker 1: how much savings will really be generated from that and 58 00:02:58,560 --> 00:03:02,359 Speaker 1: what that exactly will fund. So as you say, shares 59 00:03:02,840 --> 00:03:04,799 Speaker 1: sliding on the back of that news this morning in. 60 00:03:04,760 --> 00:03:09,640 Speaker 3: Spain, okay, And then to rule Phillips, what do we 61 00:03:09,680 --> 00:03:11,200 Speaker 3: know about third quarter earnings? 62 00:03:11,560 --> 00:03:14,560 Speaker 1: So this is the health tech company they listed in Amslam. 63 00:03:14,600 --> 00:03:17,919 Speaker 1: They make a whole wide range of things minges and yeah, 64 00:03:18,120 --> 00:03:22,440 Speaker 1: electric toothbrushes everything. But yeah, so the shares roads this 65 00:03:22,520 --> 00:03:24,359 Speaker 1: morning on the back of their third cause results, essentially 66 00:03:24,440 --> 00:03:27,359 Speaker 1: strong orders due to what they're saying is strong demand 67 00:03:27,400 --> 00:03:29,760 Speaker 1: in America, and that's really reassuring investors. They've had a 68 00:03:29,600 --> 00:03:32,440 Speaker 1: bit of a bumpy ride recently. They had warnings from 69 00:03:32,480 --> 00:03:34,560 Speaker 1: the FDA in the US saying some of their sites 70 00:03:34,800 --> 00:03:37,600 Speaker 1: don't meet standards. There were some safety concerns over sleep 71 00:03:37,640 --> 00:03:41,720 Speaker 1: appnear devices. There's some uncertainty continuing around tariffs. They say 72 00:03:41,760 --> 00:03:44,520 Speaker 1: that the China market is still weak, so there's a 73 00:03:44,520 --> 00:03:46,400 Speaker 1: lot of challenges. It's not all kind of rosy, but 74 00:03:46,440 --> 00:03:48,560 Speaker 1: some of these numbers this morning gave a bit of 75 00:03:48,600 --> 00:03:51,360 Speaker 1: confidence on the back of demand in America. 76 00:03:52,280 --> 00:03:56,320 Speaker 2: The Stock Mover's report from Bloomberg Radio. 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