WEBVTT - SSE Soars, RWE Up, Edenred Plunges

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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>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg reporter Chloe Mela Chloate. Good morning. Let's start

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<v Speaker 3>with SSE, the energy company in the UK. Shares are storing.

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<v Speaker 3>What's going on?

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<v Speaker 1>Yeah, SHARRE has jumped quite a lot this morning, actually

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<v Speaker 1>hit a record. That is after SC announced that it

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<v Speaker 1>will raise two billion pounds from investors. So this equity

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<v Speaker 1>raise will be used to fund major projects in grid

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<v Speaker 1>infrastructure and renewable energy projects like wind farms for example.

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<v Speaker 1>So SC will spend thirty three billion pounds overall on

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<v Speaker 1>those projects, with eighty percent of that going towards upgrading

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<v Speaker 1>the UK power grids. Journ the list said that investors

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<v Speaker 1>are welcoming the clarity that this provides over the next

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<v Speaker 1>few years for SSE. It gives visibility on the balance sheet,

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<v Speaker 1>gives visibility on the growth outlook as well for the company.

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<v Speaker 1>So this is seen as very positive and also a

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<v Speaker 1>way for that company to be part of the push

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<v Speaker 1>rwars electrification and the expansion of AIA data centers. So

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<v Speaker 1>now the question becomes of what is holding the shares

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<v Speaker 1>back from here, given that SEC has actually underperformed that

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<v Speaker 1>broader sector. But that might change on the back of

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<v Speaker 1>this equity raise.

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<v Speaker 3>Yeah, indeed the shares up nine point two percent and

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<v Speaker 3>NOND at the moment. Let's stay with energy companies. RWE

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<v Speaker 3>also on the rise. What's going on there?

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<v Speaker 1>Yeah, good morning for energy companies overall, it seems so

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<v Speaker 1>for r W the boost there is actually coming from

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<v Speaker 1>better than expected earning. So part of that was because

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<v Speaker 1>of a one off gain from the cell of a

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<v Speaker 1>data center development project in the UK, but then more interestingly,

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<v Speaker 1>the other factor there was a better performance in its

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<v Speaker 1>trading divisions. That's a division that's really struggled this year

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<v Speaker 1>because of geopolitical uncertainty, or at least the flavor of

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<v Speaker 1>geopolitical uncertainty that we have got at the moment, because

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<v Speaker 1>traders actually did really well after Russia's invasion of Ukraine.

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<v Speaker 1>But the kind of uncertainty that we have got now

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<v Speaker 1>with with Terrists and everything, that has actually proven much

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<v Speaker 1>harder to trade on for those traders, and so that

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<v Speaker 1>has really that has really hurt that division. The nine

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<v Speaker 1>month trading figure is still the worst in nearly a decade,

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<v Speaker 1>but it is taken quite well this morning because there

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<v Speaker 1>was improvement over the third quarter. So it seems that

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<v Speaker 1>that division is now back on track, back on the

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<v Speaker 1>road to recovery and our we will also benefit from

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<v Speaker 1>other divisions like the commissioning of on new onshore wind farms,

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<v Speaker 1>solar plants as well, and then battery storage system. So

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<v Speaker 1>there's optimism there for that company.

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<v Speaker 3>Okay, so from energy stocks, let's go to France next

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<v Speaker 3>and eden Rad shares down nine percent, an unpleasant surprise

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<v Speaker 3>coming for the company. Yeah, absolutely.

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<v Speaker 1>So that is a that is a provider of employee

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<v Speaker 1>benefits like meal vouchers, and it has been dealing with

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<v Speaker 1>some regulatory hurdles in the past a few years. So

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<v Speaker 1>the reason why it's down this morning is because Brazil

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<v Speaker 1>is planning a major regulatory changes to the country's mill

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<v Speaker 1>vouchers system. So in ninety days a cap of three

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<v Speaker 1>point six percent will be applying to the merchant discount way,

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<v Speaker 1>which is the fee that is charged to merchants per transaction,

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<v Speaker 1>and eden Redd said that it is really surprised by

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<v Speaker 1>this by this decree by Brazil and that it was

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<v Speaker 1>significantly different from the discussions that it had had with

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<v Speaker 1>the country. Bloomberg Intelligence analysts are calculating that that means

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<v Speaker 1>the eber dark could drop as much as sixteen percent

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<v Speaker 1>for eden Red on the back of those regulatory changes

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<v Speaker 1>in Brazil, which is quite an important market for the company,

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<v Speaker 1>and that really explains that major weakness that we've seen

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<v Speaker 1>in the stock. At least one good thing is that

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<v Speaker 1>there is now a bit more regulatory clarity, but obviously

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<v Speaker 1>it's not good news.

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<v Speaker 2>The stock Mover's report from Bloomberg Radio. Check back with

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