WEBVTT - Dismal Diageo, Santander's Vow, Trainline's Exit

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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>Now let's take a look at some of the stocks

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<v Speaker 3>on the move today in Europe. I'm Lizzie Birding with

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<v Speaker 3>Stephen Carroll and we're joined by Bloomberg's Breaking News editor

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<v Speaker 3>Louise Moon.

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<v Speaker 4>Do we want to start with Daggio?

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<v Speaker 3>Their top team might want to have one of their

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<v Speaker 3>own stiff drinks after this set of numbers.

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<v Speaker 1>Indeed, yes, So the focus is really on ahead, what's next?

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<v Speaker 1>So do Ido have cut guidance for the second time

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<v Speaker 1>this fiscal year.

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<v Speaker 4>They also cut their dividend.

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<v Speaker 1>That's to shore up their own balance sheet, and it's

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<v Speaker 1>not being taken too well by market. So Chares slumped,

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<v Speaker 1>they're the biggest well, they are the biggest fallow on

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<v Speaker 1>the foot Sea hundred at the moment, extending losses over

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<v Speaker 1>the past year, so not being taken too well. Essentially,

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<v Speaker 1>this is all Dadio continuing to grapple with ongoing challenges

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<v Speaker 1>been facing for a while. So that's you know, changing

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<v Speaker 1>and waning demand for alcohol, particularly a slump in China tariffs,

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<v Speaker 1>increased competition, so they're facing a lot of headwinds. And

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<v Speaker 1>while a reset kind of wasn't expected today, it kind

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<v Speaker 1>of laid bare the scale of the challenge of a recovery. Obviously,

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<v Speaker 1>they had a new CEO who came in at the

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<v Speaker 1>beginning of January, Dave Lewis. He's known his nickname Drastic Dave.

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<v Speaker 1>He's known for his turnarounds at Tesco and a Unilever,

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<v Speaker 1>so quite a lot of expectation there as to what

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<v Speaker 1>he will do. He said on various calls with reporters.

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<v Speaker 1>He said that the dividend cut was hard but necessary.

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<v Speaker 1>He's working on an updated strategy, so that will come later.

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<v Speaker 1>He's pledged to act, in his words, more decisively to

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<v Speaker 1>boost both d IGO's competitiveness and also broadness portfolio out

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<v Speaker 1>and he said that there will be some disposals.

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<v Speaker 4>THEO has already been cutting some units.

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<v Speaker 1>He said that there will be some disposals when needed,

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<v Speaker 1>but they won't do that cheaply. They won't do that

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<v Speaker 1>on the cheap And he sees, you know, more opportunity

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<v Speaker 1>and more what he calls mass market drinks, so's there's

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<v Speaker 1>a potentially a lot of change coming and that's what's

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<v Speaker 1>really what people are really waiting for, what he's going

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<v Speaker 1>to implement as given his past. But what's really been

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<v Speaker 1>focused on this morning is that cut to guidance, send

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<v Speaker 1>that cut to the dividend.

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<v Speaker 4>Okay, so that's on Diagio though, shows down five point

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<v Speaker 4>eight percent of the moment.

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<v Speaker 1>Let's go to Santander next and their owningxide this morning

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<v Speaker 1>as well. Yeah, so big numbers from Santa DA this morning.

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<v Speaker 1>They have vowed to grow their net income to more

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<v Speaker 1>than twenty billion euros in twenty twenty eight. So alys

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<v Speaker 1>forecast had been for just under nineteen billion, so a

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<v Speaker 1>big well quite a bit bigger than that, you know,

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<v Speaker 1>one more billion, just over one more billion, bigger than that.

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<v Speaker 1>Then income last year, for a bit of context in comparison,

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<v Speaker 1>was already at a record that was about fourteen billion,

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<v Speaker 1>so really a pusher head for their financial targets going forward.

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<v Speaker 1>Profitability has already surged over the past few years, partly

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<v Speaker 1>due to higher interest rates and you know, the shares

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<v Speaker 1>more than doublin trying to twenty fives that are already

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<v Speaker 1>doing well, but boosting those financial goals and this all

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<v Speaker 1>essentially follows their buy out of a US lenders that's

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<v Speaker 1>Webster Financial Corporation, that was the largest takeover of US

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<v Speaker 1>bank by a continent or European bank. Obviously increases their

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<v Speaker 1>customer base and on the back of that, they're really

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<v Speaker 1>boosting those financial targets. So shares in Santander rising in

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<v Speaker 1>Spain this morning.

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<v Speaker 3>No, Laois, I'm sure we all fantasize about how much

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<v Speaker 3>our colleagues are going to cry when we leave a job.

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<v Speaker 3>Not that any of us are planning to do that

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<v Speaker 3>anytime soon, but the CEO of train Line seems to

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<v Speaker 3>have made the market cry.

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<v Speaker 4>Shareholders are crying, so.

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<v Speaker 1>Going the Yeah, Shares fell over eight percent this morning

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<v Speaker 1>for train Line, which is obviously the ticketing app in

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<v Speaker 1>the UK, so that was of their CEO.

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<v Speaker 4>Jody Ford said that he plans to step down.

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<v Speaker 1>He's been in the role for about five years, so

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<v Speaker 1>a search for successor is in place, and as I say,

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<v Speaker 1>shares falling on that news so not being taken away

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<v Speaker 1>by the market. They hit the lowest level since March

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<v Speaker 1>twenty twenty to this morning, so under him, train Line

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<v Speaker 1>essentially has been doing well.

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<v Speaker 4>Ticket sales roughly doubled in the UK.

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<v Speaker 1>The international business is also doing well, the enter neew markets,

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<v Speaker 1>so places like France, Spain, Italy, So yeah, not being

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<v Speaker 1>taken well. JP Morgan's saying it's untimely. They say that

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<v Speaker 1>train line is facing quite a challenging chapter ahead. There's

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<v Speaker 1>you know, nationalization potentially of the market in the UK.

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<v Speaker 1>There's more competition, there's AI. So despite them reconfirming their guidance,

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<v Speaker 1>that wasn't quite enough to distract from the CEO change,

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<v Speaker 1>so shares falling.

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