WEBVTT - Vistry Falls, Intertek Gains, Siemens Dips

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

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<v Speaker 3>the move today here in Europe. I'm Caroline Hepget with

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<v Speaker 3>Lizzie Burden. I were joined by a Blueberg reporta clom Lay.

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<v Speaker 3>Good morning. Let's start with vest with Vistory rather, which

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<v Speaker 3>is a UK home builder issuing a profit warning.

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<v Speaker 1>Yeah, yet another one. So it's been quite a tough

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<v Speaker 1>day for Vistry this morning. It's said that it had

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<v Speaker 1>to take measures to try and reduce their and generate cash,

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<v Speaker 1>and so that includes things like discounts on home sales,

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<v Speaker 1>but also delaying the building of some sites as well,

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<v Speaker 1>and so it said that all of those measures would

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<v Speaker 1>hurt profit more than expected in the short term, and

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<v Speaker 1>so that echoes what we've heard from Berkeley, another house

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<v Speaker 1>builder already, when in April it actually revised its outlook

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<v Speaker 1>as well and said that profit would also be weaker

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<v Speaker 1>than anticipated. And that's because of the inflationary pressures triggered

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<v Speaker 1>by the Iran war, which means that we could see

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<v Speaker 1>fewer interest rate cuts and therefore higher more get rate

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<v Speaker 1>ridges for longer And the other problem is also that

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<v Speaker 1>high energy prices mean higher prices for raw materials, so

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<v Speaker 1>housebuilders are essentially getting squeezed from all sides. And if

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<v Speaker 1>we add the political instability that we're seeing in the

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<v Speaker 1>UK right now with Starmer trying and really struggling to

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<v Speaker 1>hold onto his job, that creates even more uncertainty in

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<v Speaker 1>the housing market. And so that spells some really bad

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<v Speaker 1>news for those housebuilders and we've seen that with Vivistry

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<v Speaker 1>this morning.

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<v Speaker 3>Al KOI, you take me to the UK.

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<v Speaker 1>One stock that's doing well is into Tech. Why it's

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<v Speaker 1>warming up to the idea of getting bought and getting

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<v Speaker 1>bought by EQT, so it said this morning and was

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<v Speaker 1>leaning towards recommending a fourth and final takeover offer from

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<v Speaker 1>the private equity firm EQT, and this then offered that

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<v Speaker 1>values into Tech at nine point two billion pounds and

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<v Speaker 1>so Intertech, which is the product testing firm, obviously rejected

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<v Speaker 1>three different bids from EQT, saying that they had undervalued

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<v Speaker 1>the company. But it's outcome under more and more pressure

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<v Speaker 1>recently from some of its biggest shareholders to engage with EQT,

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<v Speaker 1>and so we've seen that happening now. Before the takeover

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<v Speaker 1>Saga started, Into Tech had announced a strategic review. It's

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<v Speaker 1>been struggling actually quite a bit since the end of

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<v Speaker 1>the pandemic, given that demand for its testing services was

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<v Speaker 1>obviously very important during that time, but never really quite recovered.

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<v Speaker 1>But it is now pausing that review and that paves

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<v Speaker 1>the way for being taken private. That's perhaps a wind

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<v Speaker 1>for shareholders, but it does mean that yet another exit

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<v Speaker 1>from the London Stock Exchange that that's probably not good

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<v Speaker 1>use for that stock exchange. Yeah.

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<v Speaker 3>Absolutely, And just lastly on Siemens, what's the latest for them.

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<v Speaker 1>Yeah, they would buy back as much as six billion

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<v Speaker 1>euros of shares after a big surgeon orders, really benefiting

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<v Speaker 1>from demand for factory software for smart building infrastructure. But

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<v Speaker 1>at the same time it did say we really cautious

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<v Speaker 1>on the outlook because of the war and the impact

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<v Speaker 1>of the war on both supply chains and also inflation.

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<v Speaker 1>And so we've seen some weakness in the shares this

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<v Speaker 1>morning because of this cautious outlook, but also because some

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<v Speaker 1>analysts have said that they had actually expected a higher

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<v Speaker 1>number for that buyback, even though it came earlier than expected,

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<v Speaker 1>and so we're seeing a little bit of weakness for Semas.

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<v Speaker 2>This morning the Stock Movers Report from Bloomberg Radio. Check

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