WEBVTT - B&M 'Weak', Shell's Rebound, Hello Fresh Slumps

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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 2>take a.

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<v Speaker 1>Look at some of the stocks on the move today

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<v Speaker 1>in Europe.

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<v Speaker 2>Were joined by our Bloomberg reporter Louise Moon. Louise Week.

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<v Speaker 2>That's how the CEO of British retailer B and M

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<v Speaker 2>has described its results.

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<v Speaker 1>Shares is hitting an all time low.

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<v Speaker 2>What's going on there?

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<v Speaker 1>Indeed, Ya, they plunged twenty two percent when markets open

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<v Speaker 1>this morning, so record dropped to a record low, adding

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<v Speaker 1>to losses already this year. They're already down about almost

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<v Speaker 1>forty percent so far this year. And essentially this is

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<v Speaker 1>because of a profit warning this morning. So anelys is

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<v Speaker 1>saying what bn M and now forecasting for the year

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<v Speaker 1>is significantly below guidance, so far below what was previously expected.

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<v Speaker 1>On the back of that, then new CEO is starting

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<v Speaker 1>a new plan that they're doing a bit of a

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<v Speaker 1>revamp of the business. So he joined in July. He's

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<v Speaker 1>been doing a review of the business and as you say,

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<v Speaker 1>he says that things are looking weak in his words,

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<v Speaker 1>and perhaps no surprise that shares is dropping as much

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<v Speaker 1>as they are. The problems he's noted are a wide

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<v Speaker 1>ranging things like too many product ranges, duplication of promotions,

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<v Speaker 1>poor availability on the shelves. He says, they need to

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<v Speaker 1>shop and they're pricing and this new plan is essentially

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<v Speaker 1>him going back what he says, back to basics, and

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<v Speaker 1>he says that could take up to eighteen months to achieve,

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<v Speaker 1>So twelve to eighteen months to achieve that, and the

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<v Speaker 1>core focus is really on growing their UK market, which

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<v Speaker 1>is their core. So back to basics. After a profit

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<v Speaker 1>warning this morning for BNM okay, meanwhile, Shell the all

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<v Speaker 1>giant rebounding. Why so, they had a third quarter update.

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<v Speaker 1>This is ahead of their actual earnings that are coming

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<v Speaker 1>later this month, and one of their biggest profit boosters,

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<v Speaker 1>one of their units that's the biggest contribution to profits,

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<v Speaker 1>has made a come back, essentially, so their energy trading unit,

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<v Speaker 1>that was the key focus. They're saying that gas trading

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<v Speaker 1>was significantly higher and oil trading was higher, and this

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<v Speaker 1>is a turnaround from the previous quarter it was hit

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<v Speaker 1>by they said, it was hit by a geopolitical kind

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<v Speaker 1>of volatility that was hitting the wider market and really

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<v Speaker 1>hit Shell and the energy trading unit, so and Lis

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<v Speaker 1>is saying it's a strong update. They also noted a

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<v Speaker 1>strong free cash flow for Shell as well, so shares

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<v Speaker 1>a rising on the back of that, and it just

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<v Speaker 1>shows that the efforts under Shell CEO are really paying off.

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<v Speaker 1>He's been focusing a lot on cost cutting, improving reliability,

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<v Speaker 1>and sharing a lot of underperforming units. So good work

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<v Speaker 1>from him and this is paying off and showing in

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<v Speaker 1>their share games this morning. Should note that there is

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<v Speaker 1>still some weakness that's come through from this update. So

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<v Speaker 1>they're expecting a six hundred million dollar hit from shelving

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<v Speaker 1>a biofuels project in Rotterdam, so that's one thing, and

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<v Speaker 1>then also continued losses in their chemicals unit. So this

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<v Speaker 1>has been hasn't been performing well over some time and

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<v Speaker 1>they've been played ding to turn it around, but losses

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<v Speaker 1>are continuing there. But overall things are improving, and that's

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<v Speaker 1>kind of des bite a broader weaker market.

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<v Speaker 2>And Louise, what's happening at Hello Fresh all we be

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<v Speaker 2>calling them Hello Rotten.

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<v Speaker 1>We could be soon. So their shares dropping as much

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<v Speaker 1>as seven percent today, so they're lower since about June

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<v Speaker 1>last year, and this is on a public health alert

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<v Speaker 1>in the US, so saying that some of they're ready

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<v Speaker 1>to eat meals that are sold by the company that

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<v Speaker 1>the spinach within them might be contaminated with a type

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<v Speaker 1>of bacteria and this bacteria can cause it will typically

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<v Speaker 1>cause kind of fever like symptoms. This is items that

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<v Speaker 1>are shipped directly to consumers, and HelloFresh notified the US

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<v Speaker 1>Food Safety Department that it could be contaminated, so that

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<v Speaker 1>the department is saying that they do expect more products

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<v Speaker 1>to be identified that could contain this bacteria, so potential

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<v Speaker 1>safety concerns there.

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

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