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