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: Now let's take a look at some of the stocks
Speaker 3: on the move today in Europe. I'm Lizzie Birding with
Speaker 3: Stephen Carroll and we're joined by Bloomberg's Breaking News editor
Speaker 3: Louise Moon.
Speaker 4: Do we want to start with Daggio?
Speaker 3: Their top team might want to have one of their
Speaker 3: own stiff drinks after this set of numbers.
Speaker 1: Indeed, yes, So the focus is really on ahead, what's next?
Speaker 1: So do Ido have cut guidance for the second time
Speaker 1: this fiscal year.
Speaker 4: They also cut their dividend.
Speaker 1: That's to shore up their own balance sheet, and it's
Speaker 1: not being taken too well by market. So Chares slumped,
Speaker 1: they're the biggest well, they are the biggest fallow on
Speaker 1: the foot Sea hundred at the moment, extending losses over
Speaker 1: the past year, so not being taken too well. Essentially,
Speaker 1: this is all Dadio continuing to grapple with ongoing challenges
Speaker 1: been facing for a while. So that's you know, changing
Speaker 1: and waning demand for alcohol, particularly a slump in China tariffs,
Speaker 1: increased competition, so they're facing a lot of headwinds. And
Speaker 1: while a reset kind of wasn't expected today, it kind
Speaker 1: of laid bare the scale of the challenge of a recovery. Obviously,
Speaker 1: they had a new CEO who came in at the
Speaker 1: beginning of January, Dave Lewis. He's known his nickname Drastic Dave.
Speaker 1: He's known for his turnarounds at Tesco and a Unilever,
Speaker 1: so quite a lot of expectation there as to what
Speaker 1: he will do. He said on various calls with reporters.
Speaker 1: He said that the dividend cut was hard but necessary.
Speaker 1: He's working on an updated strategy, so that will come later.
Speaker 1: He's pledged to act, in his words, more decisively to
Speaker 1: boost both d IGO's competitiveness and also broadness portfolio out
Speaker 1: and he said that there will be some disposals.
Speaker 4: THEO has already been cutting some units.
Speaker 1: He said that there will be some disposals when needed,
Speaker 1: but they won't do that cheaply. They won't do that
Speaker 1: on the cheap And he sees, you know, more opportunity
Speaker 1: and more what he calls mass market drinks, so's there's
Speaker 1: a potentially a lot of change coming and that's what's
Speaker 1: really what people are really waiting for, what he's going
Speaker 1: to implement as given his past. But what's really been
Speaker 1: focused on this morning is that cut to guidance, send
Speaker 1: that cut to the dividend.
Speaker 4: Okay, so that's on Diagio though, shows down five point
Speaker 4: eight percent of the moment.
Speaker 1: Let's go to Santander next and their owningxide this morning
Speaker 1: as well. Yeah, so big numbers from Santa DA this morning.
Speaker 1: They have vowed to grow their net income to more
Speaker 1: than twenty billion euros in twenty twenty eight. So alys
Speaker 1: forecast had been for just under nineteen billion, so a
Speaker 1: big well quite a bit bigger than that, you know,
Speaker 1: one more billion, just over one more billion, bigger than that.
Speaker 1: Then income last year, for a bit of context in comparison,
Speaker 1: was already at a record that was about fourteen billion,
Speaker 1: so really a pusher head for their financial targets going forward.
Speaker 1: Profitability has already surged over the past few years, partly
Speaker 1: due to higher interest rates and you know, the shares
Speaker 1: more than doublin trying to twenty fives that are already
Speaker 1: doing well, but boosting those financial goals and this all
Speaker 1: essentially follows their buy out of a US lenders that's
Speaker 1: Webster Financial Corporation, that was the largest takeover of US
Speaker 1: bank by a continent or European bank. Obviously increases their
Speaker 1: customer base and on the back of that, they're really
Speaker 1: boosting those financial targets. So shares in Santander rising in
Speaker 1: Spain this morning.
Speaker 3: No, Laois, I'm sure we all fantasize about how much
Speaker 3: our colleagues are going to cry when we leave a job.
Speaker 3: Not that any of us are planning to do that
Speaker 3: anytime soon, but the CEO of train Line seems to
Speaker 3: have made the market cry.
Speaker 4: Shareholders are crying, so.
Speaker 1: Going the Yeah, Shares fell over eight percent this morning
Speaker 1: for train Line, which is obviously the ticketing app in
Speaker 1: the UK, so that was of their CEO.
Speaker 4: Jody Ford said that he plans to step down.
Speaker 1: He's been in the role for about five years, so
Speaker 1: a search for successor is in place, and as I say,
Speaker 1: shares falling on that news so not being taken away
Speaker 1: by the market. They hit the lowest level since March
Speaker 1: twenty twenty to this morning, so under him, train Line
Speaker 1: essentially has been doing well.
Speaker 4: Ticket sales roughly doubled in the UK.
Speaker 1: The international business is also doing well, the enter neew markets,
Speaker 1: so places like France, Spain, Italy, So yeah, not being
Speaker 1: taken well. JP Morgan's saying it's untimely. They say that
Speaker 1: train line is facing quite a challenging chapter ahead. There's
Speaker 1: you know, nationalization potentially of the market in the UK.
Speaker 1: There's more competition, there's AI. So despite them reconfirming their guidance,
Speaker 1: that wasn't quite enough to distract from the CEO change,
Speaker 1: so shares falling.
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