WEBVTT - AB Foods, Telefonica Plunges, Royal Philips Rises

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.560 --> 0:00:18.160
<v Speaker 3>Now, let's take a look at some of the stocks

0:00:18.200 --> 0:00:20.720
<v Speaker 3>on the move today here in Europe. I'm Caroline Hebgar

0:00:20.800 --> 0:00:23.720
<v Speaker 3>with Stephen Carroll. How We're joined by Bloomberg's Breaking News

0:00:23.800 --> 0:00:28.000
<v Speaker 3>editor Louise Moon. Louise, Good morning. Ab Foods. Then, is

0:00:28.120 --> 0:00:32.480
<v Speaker 3>considering separating Primark from the rest of the business. Well,

0:00:32.920 --> 0:00:35.519
<v Speaker 3>does this come of as a huge surprise. It was

0:00:35.560 --> 0:00:40.280
<v Speaker 3>always quite strange, the business really divided between two very

0:00:40.320 --> 0:00:41.440
<v Speaker 3>different business lines.

0:00:41.880 --> 0:00:44.680
<v Speaker 1>Indeed, Yeah, and not too much of us of a surprise.

0:00:44.760 --> 0:00:47.360
<v Speaker 1>It's been kind of long discussed by lot of analysts

0:00:47.400 --> 0:00:50.040
<v Speaker 1>that cover the company, and this is being seen as

0:00:50.120 --> 0:00:53.599
<v Speaker 1>quite positive this morning. So there's one interesting quote from

0:00:53.640 --> 0:00:55.600
<v Speaker 1>one of the Barclays analysts saying they've been fans of

0:00:55.640 --> 0:00:58.320
<v Speaker 1>pure plays and have advocated for a spit for a

0:00:58.360 --> 0:01:00.639
<v Speaker 1>split for quite a long time. So they see this

0:01:00.680 --> 0:01:02.720
<v Speaker 1>is a positive surprise. They haven't seen it as a

0:01:02.760 --> 0:01:06.520
<v Speaker 1>realistic possibility, but now they're seeing it as a positive surprise.

0:01:06.600 --> 0:01:08.600
<v Speaker 1>So long being discussed, it's kind of one of the

0:01:08.680 --> 0:01:14.760
<v Speaker 1>last few remaining huge UK conglomerates, and Primark accounts for

0:01:14.959 --> 0:01:20.119
<v Speaker 1>most of ABF's ABE foods profits, so it's the largest

0:01:20.160 --> 0:01:22.440
<v Speaker 1>chunk of their business, and the chairman are saying that

0:01:22.640 --> 0:01:25.200
<v Speaker 1>this spin off, the potential spin off is being considered

0:01:25.240 --> 0:01:26.880
<v Speaker 1>because of the scale of its business. They want to

0:01:26.959 --> 0:01:30.679
<v Speaker 1>keep a majority stake, but because of that scale they

0:01:30.720 --> 0:01:32.280
<v Speaker 1>want to spin it off. So you know, if it's

0:01:32.280 --> 0:01:35.280
<v Speaker 1>by itself, it could be valued kind of more cleanly

0:01:35.319 --> 0:01:38.240
<v Speaker 1>against retail piers like m ands like Next and those

0:01:38.360 --> 0:01:40.679
<v Speaker 1>kind of companies. So it's early days, but it's being

0:01:40.720 --> 0:01:44.040
<v Speaker 1>taken as quite a positive sign, quite positive indication. And

0:01:44.360 --> 0:01:47.240
<v Speaker 1>I should note it is that they're also reviewing their

0:01:47.280 --> 0:01:51.280
<v Speaker 1>food unit as well, which includes Jordan Cereals, Twinings Tea,

0:01:51.520 --> 0:01:53.960
<v Speaker 1>so that they're reviewing kind of their whole structure and

0:01:54.000 --> 0:01:56.400
<v Speaker 1>those are two possible spin offs, both Primemark and the

0:01:56.440 --> 0:01:57.080
<v Speaker 1>food unit.

0:01:57.520 --> 0:01:59.160
<v Speaker 4>No, it's been argument for quite as well now that

0:01:59.160 --> 0:02:02.160
<v Speaker 4>that's been more soiated than Foods in the Associates British

0:02:02.200 --> 0:02:05.200
<v Speaker 4>Foods title from the dominance of Primark, which shares down

0:02:05.240 --> 0:02:07.320
<v Speaker 4>three point three percent of the moment, let's turn to

0:02:07.320 --> 0:02:09.960
<v Speaker 4>Telifonica now their shares down by nine point eight percent.

0:02:10.000 --> 0:02:13.080
<v Speaker 1>What's happening indeed, Yeah, wiping out all of their growth

0:02:13.400 --> 0:02:15.639
<v Speaker 1>in share price this year this morning. So this is

0:02:15.680 --> 0:02:17.560
<v Speaker 1>because of a new strategy under their chairman. So he

0:02:17.639 --> 0:02:20.920
<v Speaker 1>joined in January, and part of their strategy is to

0:02:21.000 --> 0:02:24.639
<v Speaker 1>slash dividends by half. So of course investors aren't very

0:02:24.639 --> 0:02:27.120
<v Speaker 1>happy about that. So the aim his aim, he wants

0:02:27.160 --> 0:02:29.120
<v Speaker 1>to redirect that cash back into the core of the

0:02:29.160 --> 0:02:33.359
<v Speaker 1>business and then also invest in other kind of side

0:02:33.360 --> 0:02:37.600
<v Speaker 1>areas like defense, like cybersecurity, and it really changes the

0:02:38.000 --> 0:02:41.680
<v Speaker 1>tact of Telefonica. They had for a long time focused

0:02:41.720 --> 0:02:47.200
<v Speaker 1>on shareholder distributions, but he's obviously switching that up. So

0:02:47.280 --> 0:02:48.840
<v Speaker 1>as I say, he wants to invest in different units,

0:02:48.880 --> 0:02:53.000
<v Speaker 1>also talking about acquisitions and redirect back in to their

0:02:53.040 --> 0:02:55.320
<v Speaker 1>own call. But there are some questions over you know,

0:02:55.560 --> 0:02:58.200
<v Speaker 1>how much savings will really be generated from that and

0:02:58.560 --> 0:03:02.359
<v Speaker 1>what that exactly will fund. So as you say, shares

0:03:02.840 --> 0:03:04.799
<v Speaker 1>sliding on the back of that news this morning in.

0:03:04.760 --> 0:03:09.640
<v Speaker 3>Spain, okay, And then to rule Phillips, what do we

0:03:09.680 --> 0:03:11.200
<v Speaker 3>know about third quarter earnings?

0:03:11.560 --> 0:03:14.560
<v Speaker 1>So this is the health tech company they listed in Amslam.

0:03:14.600 --> 0:03:17.919
<v Speaker 1>They make a whole wide range of things minges and yeah,

0:03:18.120 --> 0:03:22.440
<v Speaker 1>electric toothbrushes everything. But yeah, so the shares roads this

0:03:22.520 --> 0:03:24.359
<v Speaker 1>morning on the back of their third cause results, essentially

0:03:24.440 --> 0:03:27.359
<v Speaker 1>strong orders due to what they're saying is strong demand

0:03:27.400 --> 0:03:29.760
<v Speaker 1>in America, and that's really reassuring investors. They've had a

0:03:29.600 --> 0:03:32.440
<v Speaker 1>bit of a bumpy ride recently. They had warnings from

0:03:32.480 --> 0:03:34.560
<v Speaker 1>the FDA in the US saying some of their sites

0:03:34.800 --> 0:03:37.600
<v Speaker 1>don't meet standards. There were some safety concerns over sleep

0:03:37.640 --> 0:03:41.720
<v Speaker 1>appnear devices. There's some uncertainty continuing around tariffs. They say

0:03:41.760 --> 0:03:44.520
<v Speaker 1>that the China market is still weak, so there's a

0:03:44.520 --> 0:03:46.400
<v Speaker 1>lot of challenges. It's not all kind of rosy, but

0:03:46.440 --> 0:03:48.560
<v Speaker 1>some of these numbers this morning gave a bit of

0:03:48.600 --> 0:03:51.360
<v Speaker 1>confidence on the back of demand in America.

0:03:52.280 --> 0:03:56.320
<v Speaker 2>The Stock Mover's report from Bloomberg Radio. Check back with

0:03:56.400 --> 0:03:58.960
<v Speaker 2>us throughout the day for the latest roundup of companies

0:03:59.040 --> 0:04:03.040
<v Speaker 2>making news and and for the latest market moving headlines.

0:04:03.240 --> 0:04:07.240
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:07.320 --> 0:04:10.360
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:10.400 --> 0:04:11.760
<v Speaker 2>Bloomberg Business app.