WEBVTT - Stock Movers: IAG Disrupted, Porsche Down, Sabadell Saga 

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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>Let's take a look at some stocks on the move

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<v Speaker 3>today in Europe. I'm Juanna Persacchi with Caroline Hapker, and

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<v Speaker 3>we're joined by Bloomberg reporter Chloy Meli.

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<v Speaker 1>Chloe.

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<v Speaker 3>Let's discuss what's been happening with European airlines. A hack

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<v Speaker 3>has been disrupting airports across Europe.

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<v Speaker 1>How are markets taking the news.

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<v Speaker 4>Well, quite badly so. Luftanza IAG, which owns British Airways

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<v Speaker 4>and easy Jet were all weaker at the open this

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<v Speaker 4>morning on the back of that cyber attack that you mentioned,

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<v Speaker 4>which calls delaser airports in Berlin, London and Brussels.

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<v Speaker 1>So this is all due to a cyber incident.

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<v Speaker 4>Which took down Colins Aerospace software which is used for

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<v Speaker 4>check in, boarding and baggage systems, which means that all

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<v Speaker 4>of those airports had to process passengers manually. The worst

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<v Speaker 4>hit was Brussels Airport and it took the toughest measures.

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<v Speaker 4>It asked some carriers to cancel some departures and there

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<v Speaker 4>were twenty five flights that were canceled on Saturday and

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<v Speaker 4>fifty canceled on Sunday as well. It said that more

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<v Speaker 4>cancelations and more delays were expected on Monday. We'll probably

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<v Speaker 4>see that in London and Berlin as well, And so

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<v Speaker 4>it really highlights how a cyber incident like this can

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<v Speaker 4>really disrupt European air travel for days, and it raises

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<v Speaker 4>questions about how well those key tech supplies like Colins

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<v Speaker 4>Aerospace are protected against cyber attacks, and it seems that

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<v Speaker 4>those tags are actually becoming a little bit more widespread.

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<v Speaker 4>There was a report by Tellis, which is a French

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<v Speaker 4>aerospace and defense company, that showed a six hundred percent

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<v Speaker 4>year on year increase in ransomware attacks in the aviation sector.

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<v Speaker 4>So this is definitely a growing problem. They'll need to

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<v Speaker 4>be addressed.

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<v Speaker 5>Yeah, Absolutely, cyber attacks increasingly difficult for businesses to deal with.

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<v Speaker 5>Other stories so that have caught our attention. Porsche putting

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<v Speaker 5>the brakes on its electric vehicle plans and that has

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<v Speaker 5>been really driving shares lower.

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<v Speaker 4>Yeah, absolutely, it was down quite a lot this morning,

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<v Speaker 4>as well as parent company at Volkswagen. So Porsche said

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<v Speaker 4>that it would shelve plans for a future battery powered

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<v Speaker 4>luxury suv, and it said that they would kind of move

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<v Speaker 4>more towards combustion engine and hybrid models to kind of

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<v Speaker 4>changing its portfolio, moving away from those a luxury cars

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<v Speaker 4>luxury electric cars because there's just not enough demand for it,

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<v Speaker 4>and that pivot is causing a one point eight billion

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<v Speaker 4>euro hit operating profit, which means that it would also

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<v Speaker 4>led its a Porsche and Volkswagen.

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<v Speaker 1>To slash their outlook for the year.

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<v Speaker 4>So they now expect a return on sales of two

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<v Speaker 4>percent for twenty twenty five, and for context, that number

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<v Speaker 4>was fourteen percent in twenty twenty four. This is also

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<v Speaker 4>the fourth guidance cut this year for Porsche. It's been

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<v Speaker 4>dealing of course with that low demon for electric vehicles,

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<v Speaker 4>but also tariffs have been weighing on it, and also

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<v Speaker 4>a slowdown in China where there's been so much competition

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<v Speaker 4>from a local TV manufacturers as well, and the shared

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<v Speaker 4>decline has been so great that it has dropped out

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<v Speaker 4>of Germany's taxing the index.

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<v Speaker 1>That's something that happened a couple of weeks ago.

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<v Speaker 4>So this is really yet another setback and doesn't really

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<v Speaker 4>spell good use for that car making sector in Europe,

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<v Speaker 4>which has already been having a tough time this year,

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<v Speaker 4>as we remember from the second quarter earning season, of course.

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<v Speaker 3>And European banking consolidation has been a big theme. Sabadel BBVA,

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<v Speaker 3>The saga continues. What's the latest there?

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<v Speaker 4>Yeah, so BBVA has increased its value for the takeover

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<v Speaker 4>for its takeover bit for Bank of Sabadel by about

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<v Speaker 4>ten percent, and it did that just before the September twenty.

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<v Speaker 1>Third deadline to improve that offer.

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<v Speaker 4>So the new deal now values the bank around seventeen

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<v Speaker 4>billion euros, which is around one point six percent premium

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<v Speaker 4>to the market value at Friday's close, and the previous

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<v Speaker 4>offer valued it at around fifteen point five bill in euros,

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<v Speaker 4>so quite quite an important boost there. The improved proposal

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<v Speaker 4>is a shift in strategy because BBBA spent the last

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<v Speaker 4>few months insisting there was really no need to sweeten

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<v Speaker 4>the offer, and while Sabadel continued to say that the

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<v Speaker 4>price was too low. But now BBBA seems to have

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<v Speaker 4>changed his mind. It's actually driven the chas lower for

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<v Speaker 4>both of those companies this morning. So it's unclear how

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<v Speaker 4>why the market is not rewarding this potential m and

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<v Speaker 4>a consolidation. But it seems BBVA changed its approach to

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<v Speaker 4>avoid what happened the last time that it tried to

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<v Speaker 4>buy Sabadel, which was five years ago, and that failed

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<v Speaker 4>because of a disagreement over price.

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<v Speaker 1>So now it's kind of changed its tuner bit of work.

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<v Speaker 2>The Stock Mover's report from Bloomberg Radio. Check back with

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