Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some of the stocks
Speaker 3: on the move today here in Europe. I'm Caroline Hebgar
Speaker 3: with Stephen Carroll. How We're joined by Bloomberg's Breaking News
Speaker 3: editor Louise Moon. Louise, Good morning. Ab Foods. Then, is
Speaker 3: considering separating Primark from the rest of the business. Well,
Speaker 3: does this come of as a huge surprise. It was
Speaker 3: always quite strange, the business really divided between two very
Speaker 3: different business lines.
Speaker 1: Indeed, Yeah, and not too much of us of a surprise.
Speaker 1: It's been kind of long discussed by lot of analysts
Speaker 1: that cover the company, and this is being seen as
Speaker 1: quite positive this morning. So there's one interesting quote from
Speaker 1: one of the Barclays analysts saying they've been fans of
Speaker 1: pure plays and have advocated for a spit for a
Speaker 1: split for quite a long time. So they see this
Speaker 1: is a positive surprise. They haven't seen it as a
Speaker 1: realistic possibility, but now they're seeing it as a positive surprise.
Speaker 1: So long being discussed, it's kind of one of the
Speaker 1: last few remaining huge UK conglomerates, and Primark accounts for
Speaker 1: most of ABF's ABE foods profits, so it's the largest
Speaker 1: chunk of their business, and the chairman are saying that
Speaker 1: this spin off, the potential spin off is being considered
Speaker 1: because of the scale of its business. They want to
Speaker 1: keep a majority stake, but because of that scale they
Speaker 1: want to spin it off. So you know, if it's
Speaker 1: by itself, it could be valued kind of more cleanly
Speaker 1: against retail piers like m ands like Next and those
Speaker 1: kind of companies. So it's early days, but it's being
Speaker 1: taken as quite a positive sign, quite positive indication. And
Speaker 1: I should note it is that they're also reviewing their
Speaker 1: food unit as well, which includes Jordan Cereals, Twinings Tea,
Speaker 1: so that they're reviewing kind of their whole structure and
Speaker 1: those are two possible spin offs, both Primemark and the
Speaker 1: food unit.
Speaker 4: No, it's been argument for quite as well now that
Speaker 4: that's been more soiated than Foods in the Associates British
Speaker 4: Foods title from the dominance of Primark, which shares down
Speaker 4: three point three percent of the moment, let's turn to
Speaker 4: Telifonica now their shares down by nine point eight percent.
Speaker 1: What's happening indeed, Yeah, wiping out all of their growth
Speaker 1: in share price this year this morning. So this is
Speaker 1: because of a new strategy under their chairman. So he
Speaker 1: joined in January, and part of their strategy is to
Speaker 1: slash dividends by half. So of course investors aren't very
Speaker 1: happy about that. So the aim his aim, he wants
Speaker 1: to redirect that cash back into the core of the
Speaker 1: business and then also invest in other kind of side
Speaker 1: areas like defense, like cybersecurity, and it really changes the
Speaker 1: tact of Telefonica. They had for a long time focused
Speaker 1: on shareholder distributions, but he's obviously switching that up. So
Speaker 1: as I say, he wants to invest in different units,
Speaker 1: also talking about acquisitions and redirect back in to their
Speaker 1: own call. But there are some questions over you know,
Speaker 1: how much savings will really be generated from that and
Speaker 1: what that exactly will fund. So as you say, shares
Speaker 1: sliding on the back of that news this morning in.
Speaker 3: Spain, okay, And then to rule Phillips, what do we
Speaker 3: know about third quarter earnings?
Speaker 1: So this is the health tech company they listed in Amslam.
Speaker 1: They make a whole wide range of things minges and yeah,
Speaker 1: electric toothbrushes everything. But yeah, so the shares roads this
Speaker 1: morning on the back of their third cause results, essentially
Speaker 1: strong orders due to what they're saying is strong demand
Speaker 1: in America, and that's really reassuring investors. They've had a
Speaker 1: bit of a bumpy ride recently. They had warnings from
Speaker 1: the FDA in the US saying some of their sites
Speaker 1: don't meet standards. There were some safety concerns over sleep
Speaker 1: appnear devices. There's some uncertainty continuing around tariffs. They say
Speaker 1: that the China market is still weak, so there's a
Speaker 1: lot of challenges. It's not all kind of rosy, but
Speaker 1: some of these numbers this morning gave a bit of
Speaker 1: confidence on the back of demand in America.
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