WEBVTT - WH Smith Probe, BBVA Buyback, Ipsen Falls

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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 3>Time now to take a look at some of the

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<v Speaker 3>stocks on the move today in Europe. I'm Stephen Carroll

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<v Speaker 3>and I'm joined by Bloomberg's Breaking News editor Louise Moon. Louise,

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<v Speaker 3>good morning. Let's start with W H Smith sheristown six

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<v Speaker 3>over six percent in London. What's going wrong? So?

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<v Speaker 1>WH Smith had confirmed this morning that they're under investigation

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<v Speaker 1>by the FCA, so that's obviously the financial regulator here

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<v Speaker 1>in London. So this is all This is an ongoing

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<v Speaker 1>saga that's been happening for the last few months over

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<v Speaker 1>a accounting era for W Smith and that the accounting

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<v Speaker 1>era was focused in America. So W Smith set out

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<v Speaker 1>their own findings. They had a probe that Deloitte implemented.

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<v Speaker 1>They set up those findings in November and essentially one

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<v Speaker 1>of the reasons that Deloitte found was that there was

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<v Speaker 1>a lack of oversight for W. Brick Smith that led

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<v Speaker 1>to the CEO resigning, their stock also slumping, and so

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<v Speaker 1>today it's been announced that the financial regulator is looking

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<v Speaker 1>into this, so that was kind of a key bit

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<v Speaker 1>of news it's really been focused on. But also on

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<v Speaker 1>top of that, and as a result of all of this,

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<v Speaker 1>they've also cut their dividend for the first time since

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<v Speaker 1>the pandemic. And these results were already delayed. They've been

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<v Speaker 1>pushed back twice and in that time w Smith has

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<v Speaker 1>lowered its outlook twice. So unsurprisingly, as you say that

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<v Speaker 1>the stock is tumbling this morning and it's not recovering

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<v Speaker 1>from the last few months, you know, you look back,

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<v Speaker 1>I mean, well the year to date that they're down

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<v Speaker 1>over about forty percent, and then there's the added losses today,

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<v Speaker 1>so it could be heading for its worst year on

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<v Speaker 1>record as a stock. So and this is saying, you know,

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<v Speaker 1>the whole credibility hangs in the balance here, so we

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<v Speaker 1>keep a close eye on the FCA's probe and what

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<v Speaker 1>they find and what that could result in.

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<v Speaker 3>Yeah, and want to watch, as you say, let's go

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<v Speaker 3>to Spain next, BBVA announcing it's largest ever share buyback.

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<v Speaker 1>Yeah, a slight slightly different story. They're a bit more

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<v Speaker 1>of a positive one. So they're announcing just under four

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<v Speaker 1>billion euros buy back. Yeah, large as ever, as you say,

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<v Speaker 1>that's going to be in two stages and run for

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<v Speaker 1>about a year, about twelve months, so the first stage

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<v Speaker 1>will start on Monday. That's worth about one point five

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<v Speaker 1>billion euros. This was quite expected. This large power was

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<v Speaker 1>quite expected. So shares are hire but only just slightly

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<v Speaker 1>ticking into the green. And the reason it's expected. It

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<v Speaker 1>all comes after bbva's failed bid for Sabadults that collapse

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<v Speaker 1>in October, which was quite a big setback for the CEO.

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<v Speaker 1>He'd been working on that for about a year and

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<v Speaker 1>a half and at the time they said that they

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<v Speaker 1>would carry out what they called significant a significant share

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<v Speaker 1>buyback instead. So this is part of their strategy to

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<v Speaker 1>kind of draw a line under that failed bid and

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<v Speaker 1>move forward. So this was quite expected. Estimates had ranged

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<v Speaker 1>up to about six billion. But yeah, so announcing their

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<v Speaker 1>largest ever buy back this morning and shares ticking higher

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<v Speaker 1>on that.

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<v Speaker 3>Okay, And you're also looking at shars and the French

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<v Speaker 3>pharmaceutical firm Ibsen as well, they're lower this morning. What's

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<v Speaker 3>going on they are?

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<v Speaker 1>So just a quick one on them. Their midstage trial

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<v Speaker 1>for one of their experimental drugs failed essentially, so this

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<v Speaker 1>was for. This was an oral drug for a very

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<v Speaker 1>rare bone disease, and it didn't meet the primary endpoints.

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<v Speaker 1>The study gone on for five years and it's now

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<v Speaker 1>going to be closed. So Alyss saying, you know, the

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<v Speaker 1>hopes are dashed of developing this treatment. And I was

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<v Speaker 1>just reading a good note from Bloombone Intelligence saying that

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<v Speaker 1>this is disappointing. It was one of the few tools

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<v Speaker 1>that Ibsen had to offset a lot of competition, and

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<v Speaker 1>that this failure to develop this drug now highlights how

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<v Speaker 1>important it is for them to go ahead with M

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<v Speaker 1>and A to boost their growth. So, as you say,

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<v Speaker 1>shares are falling quite heavily on the back of that.

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