WEBVTT - Barratt Redrow Dips, Natwest Up, Rosebank Down

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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>Well, let's take a look at some stocks on the

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

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moon.

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<v Speaker 1>Louise, good morning.

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<v Speaker 3>Let's start with home builders in the UK under pressure

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<v Speaker 3>after the latest house price data.

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<v Speaker 1>You've been looking at Barras, Redrow on.

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<v Speaker 4>Others, Yes, indeed all of them really shares are lower.

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<v Speaker 4>So yeah, as you say, red Roy, which is the

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<v Speaker 4>UK's largest house builder, also includes Taylor Wimpe, Vestry, Berkeley Group, Belway, Personman,

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<v Speaker 4>all the main big names are down this morning. Losses

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<v Speaker 4>are so firstly, I'll say this is on the back

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<v Speaker 4>of as you say, new data from right moves. So

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<v Speaker 4>prices had surged in January and then this latest data

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<v Speaker 4>is for February and showing that those house prices have

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<v Speaker 4>stalled p rebably flat for February. That's because of essentially

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<v Speaker 4>there's so many properties on the market that it's giving

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<v Speaker 4>buyers more bargaining power, and so those prices are kind

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<v Speaker 4>of flatlining for this month, so weighing on all of

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<v Speaker 4>the stocks as a whole. But then if we do

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<v Speaker 4>also hone in on Barrett red Road, they're getting a

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<v Speaker 4>bit of extra bad news.

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<v Speaker 1>Losses are steeper there.

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<v Speaker 4>That's also because in addition to the right Move data,

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<v Speaker 4>they've had a note from pill Hunt, they've been downgraded

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<v Speaker 4>by pill Hunt and Deutsche Bank has cut their forecast

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<v Speaker 4>and price target as well for Barrett red Rod, so

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<v Speaker 4>a bit of a double whammy for them. But yeah,

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<v Speaker 4>the overall kind of sector news is that those prices

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<v Speaker 4>have stalled in February, and there was a sort of note,

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<v Speaker 4>one interesting note from an RBC analyst saying that even

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<v Speaker 4>though the housing market has had a relatively strong start

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<v Speaker 4>to the spring season, the second hand market is giving

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<v Speaker 4>house build around for their money. And he's saying one

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<v Speaker 4>match doesn't decide a season, but currently in twenty twenty

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<v Speaker 4>six it's do or up as one new build nil.

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<v Speaker 4>So there's a little quote to end that section for you.

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<v Speaker 4>But yeah, that's the current state of the house market

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<v Speaker 4>in the UK.

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<v Speaker 3>Nice has some good supporting analogies as well. Let's turn

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<v Speaker 3>to that West next. Their shares are at by four

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<v Speaker 3>point two percent today. What's happened, Yes, leading the one

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<v Speaker 3>hundred this morning. That's as a couple of things.

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<v Speaker 4>Firstly, their buyback is kicking in that was previously announced

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<v Speaker 4>for seven hundred and fifty million pounds that's starting today.

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<v Speaker 4>And then at the same time, City has also raised

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<v Speaker 4>their price target for that West, so they've raised their

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<v Speaker 4>estimates for pretext profit and EPs. This is after now

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<v Speaker 4>we're seen as essentially had quite a host of good news.

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<v Speaker 1>They had their results I.

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<v Speaker 4>Think it was last week, and they came in very

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<v Speaker 4>strong higher interest income.

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<v Speaker 1>Overall, it was very strong.

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<v Speaker 4>And then on top of that, about a week before,

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<v Speaker 4>there was also the deal for them to buy Evelyn Partners,

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<v Speaker 4>which is a wealth manager, so pushing into the wealth

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<v Speaker 4>manager spaces, they kind of diversify their revenue streams. And

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<v Speaker 4>all of this is proving to be positive as of yet.

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<v Speaker 4>And yeah, City has raised their price style on the

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<v Speaker 4>back of that. A bit of a double whammy for

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<v Speaker 4>out West.

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<v Speaker 3>Okay, we're going to turn next to Rose Bank Industries.

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<v Speaker 3>Are stock not moving because it's just been suspended in

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<v Speaker 3>the past few minutes.

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<v Speaker 1>What's going on? It has Yeah, this is a bit

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<v Speaker 1>of a breaking story.

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<v Speaker 4>So Rosebanks is so obviously the company that's relatively new,

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<v Speaker 4>set up by former Melros industry executives. They're in advanced

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<v Speaker 4>talks to buy to what they've said is to private

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<v Speaker 4>acuity owned US businesses, and this is for a headline

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<v Speaker 4>enterprise value of just over three billion dollars. They say

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<v Speaker 4>that will be funded through a combination of an equity

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<v Speaker 4>issue which will be about one point nine billion pounds,

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<v Speaker 4>and then also new debt facilities. So they released this

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<v Speaker 4>press statement about ten minutes ago saying that trading had

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<v Speaker 4>actually already been suspended because Sky broke the news, so

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<v Speaker 4>they had the report on this potential deal. Sky have

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<v Speaker 4>said that the businesses they've named the businesses or potential

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<v Speaker 4>businesses as being CPM and MW Industries, both US listed.

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<v Speaker 4>Rosebank haven't actually named them, but that was the report

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<v Speaker 4>from Sky, So potentially big MNA deal talks that they

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<v Speaker 4>say they're in advanced talks.

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<v Speaker 1>So whether or not it'll come to fruition, we'll be watching.

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<v Speaker 4>But as you say, yeah, share the actually been suspended

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<v Speaker 4>on the back of.

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