WEBVTT - Stellantis Tumbles, Societe Generale Drops, Sabadell Falls

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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>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 with Anna Edwards,

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

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<v Speaker 3>good morning. Let's start then with a big fall for

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<v Speaker 3>the carmaker Stilantis.

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<v Speaker 1>What's happened indeed, Yeah, so they've taken charges of about

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<v Speaker 1>twenty two billion euros. Essentially this is linked to Stilantis'

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<v Speaker 1>overhaul of its kind of entire operations. They've been trying

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<v Speaker 1>to overhaul since the CEO joined last June, all in

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<v Speaker 1>the name of kind of regaining market share. So this

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<v Speaker 1>is over one to do with higher costs, but also

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<v Speaker 1>it's all to do with the shift towards electric vehicles

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<v Speaker 1>and essentially more mute sales than they had been expecting

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<v Speaker 1>have kind of forced them to adjust their strategy. Essentially,

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<v Speaker 1>so the CEO this morning was saying they overestimated the

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<v Speaker 1>pace of the energy transition, and then these charge has

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<v Speaker 1>also shown the impact of what he's called port operational execution,

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<v Speaker 1>so they're taking charges of about twenty two billion. A

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<v Speaker 1>lot of that is payments to compensate suppliers and then

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<v Speaker 1>also other costs as well. And as you say, shares

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<v Speaker 1>reacted pretty badly, down fourteen percent this morning in Milan,

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<v Speaker 1>and if you look back even further, they're down forty

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<v Speaker 1>percent over the past year. So a lot of work

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<v Speaker 1>ahead for Slantis and this is quite a bump in

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<v Speaker 1>the rope, particularly on the EV journey.

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<v Speaker 2>We've had Louise.

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<v Speaker 1>We've had a lot of results out from banks this week.

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<v Speaker 1>We've got results from Society General this morning. How we're

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<v Speaker 1>investors digesting the news from there? Yeah, we had their

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<v Speaker 1>fourth quarter results, so one section kind of in particular

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<v Speaker 1>has really been focused on. So the numbers for trading

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<v Speaker 1>units missed estimates, so fixed income securities and currency trade

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<v Speaker 1>that fell thirteen percent. Equities trading also fell by over

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<v Speaker 1>five percent, and analyst had been expecting growth for both

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<v Speaker 1>of those units. So the reaction has been for chares

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<v Speaker 1>to fall on the back of that as obviously dismissed estimate,

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<v Speaker 1>so they dropped around four percent earlier this morning in Paris,

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<v Speaker 1>the CEO has said, you know, there's a lot of

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<v Speaker 1>work to do. He's kind of tried to have a

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<v Speaker 1>bit of positivity, saying they'll do everything they can to

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<v Speaker 1>ensure that there's more positive amendum head. They have seen

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<v Speaker 1>some positive developments more recently, they've grown their four year

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<v Speaker 1>revenue and their four year profit. So he's you know,

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<v Speaker 1>saying that there are some challenges ahead, but but and

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<v Speaker 1>there's still work to do, but that they're gonna make

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<v Speaker 1>sure that positive amentum kind of extends across across the bank.

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<v Speaker 1>But yeah, as I say, Chez still down on that news.

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<v Speaker 3>Another share in the move this morning the Spanish bank

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<v Speaker 3>Sabadell after their CEO departed.

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<v Speaker 1>Yeah, a slightly surprise exit. So the CEO is leaving,

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<v Speaker 1>that's likely to happen around May time at their next AGM,

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<v Speaker 1>and he's being replaced by a man called Mark Armongle.

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<v Speaker 1>So he currently runs TSB, which used to be owned

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<v Speaker 1>by Savadel and was sold to Santander last year. So

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<v Speaker 1>he's going to replace the CEO. It comes that. The

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<v Speaker 1>reason it's kind of a bit of a surprise in

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<v Speaker 1>terms of timing is it's only a few months after

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<v Speaker 1>the outgoing CEO he kind of led the bid to

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<v Speaker 1>fend off BBVA trying to buy Sabadel. So he was

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<v Speaker 1>a key component in convincing investors and shareholders that Sabadel

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<v Speaker 1>would be better off alone, and he achieved that. So

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<v Speaker 1>that was towards the end of last year. So in

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<v Speaker 1>that sense, you know, the timing slight surprise. He said

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<v Speaker 1>that the timing couldn't better if you look back at

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<v Speaker 1>the share price over the past five years or so

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<v Speaker 1>since he joined. He joined in early twenty twenty one,

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<v Speaker 1>shares of really swored under him, so he's saying it's

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<v Speaker 1>a good a good time to you know, exit, exit

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<v Speaker 1>on a high, but potentially not really being taken well

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<v Speaker 1>by investors. Shares fell about six percent this morning. They

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<v Speaker 1>did also have earnings this morning and those you know

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<v Speaker 1>met us saying that to buy back, so so relatively

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<v Speaker 1>inline and positive, but shares falling mostly on on that

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<v Speaker 1>news of a change at the helm.

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

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