WEBVTT - Klöckner Jumps, Porsche Down, Gym Group Gains

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

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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

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<v Speaker 3>joined by Bloomberg's Breaking News editor Louise Man and Luise

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<v Speaker 3>good morning. Let's start with steel and a takeover on

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<v Speaker 3>the cards for the metals company Klockner.

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<v Speaker 1>Indeed, yes, so this is the German metals company, as

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<v Speaker 1>you say, takeover deal by a company called Worthington Steele

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<v Speaker 1>in the US. They've agreed to buy it for eleven

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<v Speaker 1>euros Persia in cash. They had already been in takeover talks.

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<v Speaker 1>This was reported in early December. Shares rose quite a

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<v Speaker 1>bit on that at the time and since then have

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<v Speaker 1>stayed higher. And then this morning shares have absolutely saw.

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<v Speaker 1>They've sawd thirty percent back to levels last scene in

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<v Speaker 1>twenty twenty two, hitting that eleven euro mark. Background Wise,

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<v Speaker 1>this comes as Clocklan has been selling off a lot of.

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<v Speaker 4>Its units, been trying units.

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<v Speaker 1>It's been trying to get rid of a lot of

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<v Speaker 1>these more volatile low margin businesses and focus on higher

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<v Speaker 1>value areas, essentially trying to boost profitability. So Anlys is

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<v Speaker 1>saying that, you know, this is a good price. This

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<v Speaker 1>is that they're kind of welcoming this deal, seeing a

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<v Speaker 1>high probability that goes through by the end of the year.

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<v Speaker 1>So shelving off those those kind of non performing units

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<v Speaker 1>and now getting this takeover offer.

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<v Speaker 3>Yeah, and shows up twenty eight percent on the back

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<v Speaker 3>of that as well. Let's start into portion next. Having

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<v Speaker 3>trouble delivering sales.

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<v Speaker 1>Yeah, slightly less good story this morning for them. So

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<v Speaker 1>deliveries fell ten percent last year. That's the steepest drop

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<v Speaker 1>since two thousand and nine, which is obviously the financial crisis,

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<v Speaker 1>So a bad year for them. This is all on

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<v Speaker 1>the back of weak demand for electric vehicles, a slump

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<v Speaker 1>in China. So but both China and Germany led those declines,

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<v Speaker 1>and it comes as a Porsche's been struggling heavily.

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<v Speaker 4>Last year was a bad year for the company.

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<v Speaker 1>It cut us out and look four times and it's

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<v Speaker 1>this has it's been struggling with kind of a host

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<v Speaker 1>of issues. You know, there was tariffs in the US,

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<v Speaker 1>which is its most important market. They've also been trying

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<v Speaker 1>to correct what was a bit of an overly ambitious

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<v Speaker 1>rollout of electric vehicles. In September, they dropped down from

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<v Speaker 1>the blue chip index, the DAX in Germany to the

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<v Speaker 1>m DAX, which is the MidCap. So they've pledged to

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<v Speaker 1>improve that this year. They've got a new CEO that

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<v Speaker 1>started in January. But yeah, this is all on the

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<v Speaker 1>back of last year not being a good year, deliveries

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<v Speaker 1>falling ten percent.

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<v Speaker 3>Okay, well want to watch as well from here a

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<v Speaker 3>more positive market reception though, for the gains at the

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<v Speaker 3>Gym Group are not just those from their clients.

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<v Speaker 1>Yes, they've been raised to an outperform by RBC. So

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<v Speaker 1>now Gym Group has got nine buys, one hold and

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<v Speaker 1>no cells, so good analyst ratings there. RBC are seeing

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<v Speaker 1>what they're calling revenue driven profit growth. That's after Gym

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<v Speaker 1>Group introduced even cheaper off peak memberships. Obviously they're known

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<v Speaker 1>for being a low costume that's their Murdos Operendi, and

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<v Speaker 1>they've introduced cheaper off peak memberships obviously of seeing potential

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<v Speaker 1>volume growth as well, and as you say, I mean

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<v Speaker 1>this comes in in the peak health season. Everyone's I'm

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<v Speaker 1>sure getting their memberships for January to start the year

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<v Speaker 1>well so.

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<v Speaker 4>Some good news ye at this morning for Gym Group.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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