WEBVTT - Lloyds Dips, Intertek Rises, Greggs Up

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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>And 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 Caroline Hepger

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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>let's start with the banks in the UK. We are

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<v Speaker 3>seeing shares lower this morning, and we're looking at this

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<v Speaker 3>in the context of the political instability.

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<v Speaker 1>Indeed, yeah, that's some of the biggest foolers in London

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<v Speaker 1>this morning.

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<v Speaker 4>So we've got the likes of nat West, Barclay's, Lloyd's

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<v Speaker 4>all down over about four percent. And as you say,

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<v Speaker 4>this is all in the back of this political risk

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<v Speaker 4>that's being felt in the UK. A big day for Starmer,

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<v Speaker 4>questions over whether he'll survive. He has just told cabinet

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<v Speaker 4>that he's staying as Prime Minister and he takes responsibility

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<v Speaker 4>for the election result.

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<v Speaker 1>But bank stocks are lower.

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<v Speaker 4>There was a note this morning from JP Morgan and

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<v Speaker 4>List saying that if there is a change in leadership

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<v Speaker 4>or a shift to the left with that change that

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<v Speaker 4>could impact the sector via guilt yields, weaker growth outlook.

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<v Speaker 4>There's also worries about the potential for higher taxation if

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<v Speaker 4>that happens. So they're saying that their base case now

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<v Speaker 4>assumes if that happened, that the UK banking surcharge will

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<v Speaker 4>increase to five percent from the current three percent. So

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<v Speaker 4>worries there and that's being played out across banks this

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<v Speaker 4>morning in London.

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<v Speaker 5>Yeah, okay, so that's interesting on the repercussions. Then for

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<v Speaker 5>the UK. Let's think about m and A though into

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<v Speaker 5>tech rising after the private equity firm.

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<v Speaker 1>EQT made another bid. Tell us about this, Yes, yes,

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<v Speaker 1>another bid.

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<v Speaker 4>So fourth and final bid from EQT for Intertech is

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<v Speaker 4>obviously the foot seat one hundred firm.

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<v Speaker 1>They've said they're considering it.

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<v Speaker 4>They have rejected it three times before for what they

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<v Speaker 4>call undervaluing the firm, but they're coming under more and

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<v Speaker 4>more pressure from their own investors to pursue this deal.

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<v Speaker 4>So one of those key investors pushing for that is

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<v Speaker 4>the activist investor Pallaser Capital. They've built a stake they

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<v Speaker 4>want that takeover to happen. So the latest offer is

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<v Speaker 4>for about sixty pounds a share in cash and it

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<v Speaker 4>would value Intertech at about nine point two billion pounds.

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<v Speaker 4>So it comes less than a week after they rejected

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<v Speaker 4>the last one, so we'll have to wait and see

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<v Speaker 4>whether that comes through. Intertect themselves at the same time

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<v Speaker 4>have been pushing for a strategic review considering splitting the business.

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<v Speaker 4>So two things at play here and ongoing kind of

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<v Speaker 4>potential m and a sagus.

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<v Speaker 1>We're keeping a close eye on that one. Coming back

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<v Speaker 1>to the UK.

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<v Speaker 3>Then for Greggs, the high street baker revealing accelerating growth

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<v Speaker 3>thanks to new menu items.

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<v Speaker 1>Yeah, so it's a good and much needed good news story. Really.

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<v Speaker 4>For Greg's, they're leading gains on the foot seed two

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<v Speaker 4>fifty so sales rising, helped by some of their new offerings,

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<v Speaker 4>as you say, so chicken rolls among them, which they

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<v Speaker 4>called a standout performer. And less is saying this this

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<v Speaker 4>this sales update, it's enough to kind of clear a

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<v Speaker 4>low bar.

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<v Speaker 1>Expectations are very low.

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<v Speaker 4>Greg's has been among some of the most shorted stocks

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<v Speaker 4>in London lately. You know, there's been doubts over its

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<v Speaker 4>expansion plans, in particularly they had big expansion plans. But

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<v Speaker 4>these sales show a pickup in momentum, even if it

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<v Speaker 4>is slightly modest. And then also in terms of the

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<v Speaker 4>Middle East impact, they say that they've got forward buying

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<v Speaker 4>in place for about five months worth of food and packaging,

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<v Speaker 4>and eighty five percent of energy and fuel needs have

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<v Speaker 4>been fixed, so they're sheltered for the moment from those impacts.

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<v Speaker 4>But they did warn of higher cost inflation if the

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<v Speaker 4>conflict continues, so potentially some headwinds ahead, but for the moment,

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<v Speaker 4>sales are positive for Quicks.

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