Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today in Europe. I'm Stephen Caroll and we're
Speaker 3: joining there by Bloomberg's Breaking News editor Louise Moon. Luise,
Speaker 3: good morning. Let's start with bank stocks, then dragging on
Speaker 3: the stock six.
Speaker 1: Hundred they are, indeed, and the two main ones that
Speaker 1: we're really looking at here is Lloyd's and HSBC, both
Speaker 1: down quite heavily into the red this morning for very
Speaker 1: different reasons, so i'll cover them both separately. So Lloyd's firstly,
Speaker 1: they issued a warning this morning saying they have to
Speaker 1: set aside more money and that's to compensate customers over
Speaker 1: the long, ongoing, long running Carlo and saga in the UK.
Speaker 1: So just to recap that, the UK's FCA, the regulator,
Speaker 1: said they expect banks or auto lenders relevant auto lenders
Speaker 1: to take about an eleven eleven pound hit and that's
Speaker 1: to compensate customers. This is less than expected, obviously still
Speaker 1: hefty and Lloyd's have responded to that this morning, saying
Speaker 1: that they have set aside more cash. They've already set
Speaker 1: aside over a billion pounds, but they say that this
Speaker 1: new provision might be material. So they didn't actually say
Speaker 1: exactly how much more they're going to have set aside,
Speaker 1: but that it might be material, and there's some estimates
Speaker 1: that's saying it could be as much as about five
Speaker 1: hundred million pounds. So shares are down, wiping out yesterday's gains.
Speaker 1: As I say, it was originally taken as quite positive
Speaker 1: news because it was a smaller hit than expected for
Speaker 1: the wider industry. And then secondly, HSBC planning to take
Speaker 1: their Hong Kong unit, Hangsng Bank private, so they're going
Speaker 1: to buy out minority investors. They'll spend about fourteen billion
Speaker 1: US dollars on that, but as a result to kind
Speaker 1: of have enough cash for this to finance this, they're
Speaker 1: going to refrain from buybacks for the next three quarters.
Speaker 1: So shareholders not reacting positively to that. So shares fell
Speaker 1: both in London and in Hong Kong where they're listed.
Speaker 3: Okay, let's go next to Frankfurst and an Ipo Auto Bank.
Speaker 1: Yeah, so Autobank's a really interesting firm. It's prosthetics firms.
Speaker 1: They make things like artificial limbs and they've actually partnered
Speaker 1: with the Paralympics since nineteen eighty eight. Interestingly, so they
Speaker 1: listened in Frankfurt this morning. It's the biggest ipo in
Speaker 1: Germany in over a year and shares are or where
Speaker 1: they've risen higher there. At one point they're about eleven
Speaker 1: percent higher than the offering price, and that was at
Speaker 1: sixty six euros a share, which was the top end
Speaker 1: of the range. So they raised about just over seven
Speaker 1: hundred million euros for their IPOs, as I say, the
Speaker 1: biggest one in Germany in more than a year, so
Speaker 1: a welcome boost to Germany. And then it also follows
Speaker 1: Verija that listed in Stockholm yesterday and that was the
Speaker 1: biggest European debut since twenty twenty two, So good news
Speaker 1: this week essentially for quite a lot of European exchanges.
Speaker 1: And this one's autobank.
Speaker 3: Okay, and Louise, you've also been looking at Ferrari.
Speaker 1: Yes, so they have scaled back their electric ambitions sally,
Speaker 1: so they now expect only twenty percent of their twenty
Speaker 1: thirty lineup is going to be fully electric. That's half
Speaker 1: of what they previously expected. They had expected forty percent,
Speaker 1: and essentially they're filling that gap with their fully their
Speaker 1: combustion cars, so that will now be forty percent. They're
Speaker 1: doubling their combustion offerings, essentially showing kind of a renewed
Speaker 1: focus on engines and that has obviously defined Ferrari for decades,
Speaker 1: so they're kind of going back to their core, following
Speaker 1: a lot of other car makers that have also pulled
Speaker 1: back from electric ambitions. It's obviously very expensive, there's been
Speaker 1: kind of a failure to get enough customers. So Ferrari
Speaker 1: shares are dropping on this. They dropped almost two percent
Speaker 1: this morning. We'll be keeping a close eye on them
Speaker 1: though throughout the morning because they've got a capital markets
Speaker 1: stay and they're planning to announce their financial targets. So
Speaker 1: an interesting one from Ferrari.
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