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Now, let's take a look at some of the stocks on the move today here in Europe. I'm Caroline Hebgar with Stephen Carroll. How We're joined by Bloomberg's Breaking News editor Louise Moon. Louise, Good morning. Ab Foods. Then, is considering separating Primark from the rest of the business. Well, does this come of as a huge surprise. It was always quite strange, the business really divided between two very different business lines.
Indeed, Yeah, and not too much of us of a surprise. It's been kind of long discussed by lot of analysts that cover the company, and this is being seen as quite positive this morning. So there's one interesting quote from one of the Barclays analysts saying they've been fans of pure plays and have advocated for a spit for a split for quite a long time. So they see this is a positive surprise. They haven't seen it as a realistic possibility, but now they're seeing it as a positive surprise.
So long being discussed, it's kind of one of the last few remaining huge UK conglomerates, and Primark accounts for most of ABF's ABE foods profits, so it's the largest chunk of their business, and the chairman are saying that this spin off, the potential spin off is being considered because of the scale of its business. They want to keep a majority stake, but because of that scale they
want to spin it off. So you know, if it's by itself, it could be valued kind of more cleanly against retail piers like m ands like Next and those kind of companies. So it's early days, but it's being
taken as quite a positive sign, quite positive indication. And I should note it is that they're also reviewing their food unit as well, which includes Jordan Cereals, Twinings Tea, so that they're reviewing kind of their whole structure and those are two possible spin offs, both Primemark and the food unit.
No, it's been argument for quite as well now that that's been more soiated than Foods in the Associates British Foods title from the dominance of Primark, which shares down three point three percent of the moment, let's turn to Telifonica now their shares down by nine point eight percent.
What's happening indeed, Yeah, wiping out all of their growth in share price this year this morning. So this is because of a new strategy under their chairman. So he joined in January, and part of their strategy is to slash dividends by half. So of course investors aren't very happy about that. So the aim his aim, he wants to redirect that cash back into the core of the business and then also invest in other kind of side areas like defense, like cybersecurity, and it really changes the
tact of Telefonica. They had for a long time focused on shareholder distributions, but he's obviously switching that up. So as I say, he wants to invest in different units, also talking about acquisitions and redirect back in to their own call. But there are some questions over you know, how much savings will really be generated from that and what that exactly will fund. So as you say, shares sliding on the back of that news this morning in.
Spain, okay, And then to rule Phillips, what do we know about third quarter earnings?
So this is the health tech company they listed in Amslam. They make a whole wide range of things minges and yeah, electric toothbrushes everything. But yeah, so the shares roads this morning on the back of their third cause results, essentially strong orders due to what they're saying is strong demand in America, and that's really reassuring investors. They've had a bit of a bumpy ride recently. They had warnings from the FDA in the US saying some of their sites
don't meet standards. There were some safety concerns over sleep appnear devices. There's some uncertainty continuing around tariffs. They say that the China market is still weak, so there's a lot of challenges. It's not all kind of rosy, but some of these numbers this morning gave a bit of confidence on the back of demand in America.
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