WEBVTT - Akzo Nobel Plunges, Inditex Up, B&M Cuts

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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 Tima Adabaya with Caroline

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<v Speaker 3>HaCaT and we're joined by our reporter Chloe Melee. Chloe,

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<v Speaker 3>let's start with Partners Great. This is the Swiss private

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<v Speaker 3>markets firm. It's fallen to its lowest level in more

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<v Speaker 3>than six years. Can you tell us what's responsible for

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<v Speaker 3>the drop?

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<v Speaker 1>Yeah, So this company has kept withdrawals from one of

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<v Speaker 1>it's a private equity fund. So it's an evergreen private

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<v Speaker 1>equity fund. And so what that means is a fund

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<v Speaker 1>that typically allows investors to withdraw at least a portion

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<v Speaker 1>of their investments rather than locking up the capital for

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<v Speaker 1>a set period. And Partners Group is actually one of

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<v Speaker 1>the pioneers in that space of evergreen private equity funds.

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<v Speaker 1>But the problem here is that it said that it

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<v Speaker 1>has been there had been quite an important pickup in

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<v Speaker 1>a redemption request from private wealth clients across this evergreen portfolio,

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<v Speaker 1>and those clients make up a particularly large portion of

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<v Speaker 1>that investor base for Partners Group, and so that has

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<v Speaker 1>essentially forced the company to gate that fund to avoid

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<v Speaker 1>too many redemptions. And so what this shows is that

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<v Speaker 1>there's this anxiety around private credit that is starting to

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<v Speaker 1>really spill over into other parts of private markets. And

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<v Speaker 1>so that's kind of the broad thing, but then for

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<v Speaker 1>Partners specifically, it's kind of yet another challenge after a

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<v Speaker 1>short seller report recently also alleged that it systematically overvalues assets.

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<v Speaker 1>So there's quite a few things happening there for Partners Group,

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<v Speaker 1>and shares are taking quite the hit, as you mentioned, Ta.

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<v Speaker 2>Yeah, absolutely.

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<v Speaker 1>Meanwhile, ASML, your's largest company by market cap, benefiting from

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<v Speaker 1>an analyst upgrade. Yeah, so JP Morgan analyst gave ASML

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<v Speaker 1>a new Street high price tag and they also increase

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<v Speaker 1>their estimates by a quite big margin. Said consensus was

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<v Speaker 1>well behind the curve. So of course this fits within

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<v Speaker 1>this broader AI enthusiasm sort of narrative with really expectations

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<v Speaker 1>of continued growth for all of those companies within that sector,

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<v Speaker 1>the chip makers, the chip making equipment manufacturers. So shares

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<v Speaker 1>for ASML already up about sixty percent yet today, but

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<v Speaker 1>it seems that there might be even further to go.

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<v Speaker 1>This is, of course, as well a global story. If

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<v Speaker 1>we go over to the US, we recently had the

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<v Speaker 1>chip maker Micron joining that trillion dollar valuation club. We

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<v Speaker 1>had Nvidio CEO saying this week that Marvel Technology, which

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<v Speaker 1>is another company in that space, could be the next

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<v Speaker 1>one to join that one trillion dollar club. So this

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<v Speaker 1>really shows that the AI trade, the AI story is

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<v Speaker 1>not going anywhere, and that ASML is going to be,

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<v Speaker 1>of course one of the really big beneficiaries of that,

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<v Speaker 1>because it's the only company making the most advanced machines

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<v Speaker 1>for that chip making.

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<v Speaker 3>Okay, well, we're going from a joint street high price

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<v Speaker 3>target for ASML to the high street now for B

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<v Speaker 3>and M, and it seems like their turnaround plan might

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<v Speaker 3>just be working. Can you tell us a bit more

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<v Speaker 3>about the gains that the retailer are seeing this morning?

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<v Speaker 2>Yeah.

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<v Speaker 1>Absolutely, BNM is having a very good morning this morning,

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<v Speaker 1>but it has had quite a tough year. The thing

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<v Speaker 1>now that is really driving those shares is that it

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<v Speaker 1>is cautiously optimistic. So it said that it's starting to

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<v Speaker 1>see some of the benefits from the turnaround that had

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<v Speaker 1>launched in October, which was really about more competitive pricing

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<v Speaker 1>and better store availability as well, and so it said

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<v Speaker 1>that bnm UK was on track to return to stronger

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<v Speaker 1>margins over the medium term, and also that the company

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<v Speaker 1>would be able to offset the impact from higher energy costs,

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<v Speaker 1>higher shipping costs that we've seen because of the Iran War.

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<v Speaker 1>And so this echoes what we heard from Debenham's as

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<v Speaker 1>well this morning, which was known before as Boohoo, that

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<v Speaker 1>is a company that returned to growth this quarter, expects

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<v Speaker 1>very strong momentum for the rest of the year. And

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<v Speaker 1>so those two updates from those two companies point to

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<v Speaker 1>perhaps a more resilient retail sector than was feared by

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<v Speaker 1>some investors and analysts. The challenges are still there, you know,

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<v Speaker 1>we still have low consumer spending, still the prospect of

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<v Speaker 1>higher interest rates. But for now the sector is doing

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<v Speaker 1>okay despite all of those potential hurdles.

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

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