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: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 3: by Bloomberg reporter Chloe Mela Chloate. Good morning. Let's start
Speaker 3: with SSE, the energy company in the UK. Shares are storing.
Speaker 3: What's going on?
Speaker 1: Yeah, SHARRE has jumped quite a lot this morning, actually
Speaker 1: hit a record. That is after SC announced that it
Speaker 1: will raise two billion pounds from investors. So this equity
Speaker 1: raise will be used to fund major projects in grid
Speaker 1: infrastructure and renewable energy projects like wind farms for example.
Speaker 1: So SC will spend thirty three billion pounds overall on
Speaker 1: those projects, with eighty percent of that going towards upgrading
Speaker 1: the UK power grids. Journ the list said that investors
Speaker 1: are welcoming the clarity that this provides over the next
Speaker 1: few years for SSE. It gives visibility on the balance sheet,
Speaker 1: gives visibility on the growth outlook as well for the company.
Speaker 1: So this is seen as very positive and also a
Speaker 1: way for that company to be part of the push
Speaker 1: rwars electrification and the expansion of AIA data centers. So
Speaker 1: now the question becomes of what is holding the shares
Speaker 1: back from here, given that SEC has actually underperformed that
Speaker 1: broader sector. But that might change on the back of
Speaker 1: this equity raise.
Speaker 3: Yeah, indeed the shares up nine point two percent and
Speaker 3: NOND at the moment. Let's stay with energy companies. RWE
Speaker 3: also on the rise. What's going on there?
Speaker 1: Yeah, good morning for energy companies overall, it seems so
Speaker 1: for r W the boost there is actually coming from
Speaker 1: better than expected earning. So part of that was because
Speaker 1: of a one off gain from the cell of a
Speaker 1: data center development project in the UK, but then more interestingly,
Speaker 1: the other factor there was a better performance in its
Speaker 1: trading divisions. That's a division that's really struggled this year
Speaker 1: because of geopolitical uncertainty, or at least the flavor of
Speaker 1: geopolitical uncertainty that we have got at the moment, because
Speaker 1: traders actually did really well after Russia's invasion of Ukraine.
Speaker 1: But the kind of uncertainty that we have got now
Speaker 1: with with Terrists and everything, that has actually proven much
Speaker 1: harder to trade on for those traders, and so that
Speaker 1: has really that has really hurt that division. The nine
Speaker 1: month trading figure is still the worst in nearly a decade,
Speaker 1: but it is taken quite well this morning because there
Speaker 1: was improvement over the third quarter. So it seems that
Speaker 1: that division is now back on track, back on the
Speaker 1: road to recovery and our we will also benefit from
Speaker 1: other divisions like the commissioning of on new onshore wind farms,
Speaker 1: solar plants as well, and then battery storage system. So
Speaker 1: there's optimism there for that company.
Speaker 3: Okay, so from energy stocks, let's go to France next
Speaker 3: and eden Rad shares down nine percent, an unpleasant surprise
Speaker 3: coming for the company. Yeah, absolutely.
Speaker 1: So that is a that is a provider of employee
Speaker 1: benefits like meal vouchers, and it has been dealing with
Speaker 1: some regulatory hurdles in the past a few years. So
Speaker 1: the reason why it's down this morning is because Brazil
Speaker 1: is planning a major regulatory changes to the country's mill
Speaker 1: vouchers system. So in ninety days a cap of three
Speaker 1: point six percent will be applying to the merchant discount way,
Speaker 1: which is the fee that is charged to merchants per transaction,
Speaker 1: and eden Redd said that it is really surprised by
Speaker 1: this by this decree by Brazil and that it was
Speaker 1: significantly different from the discussions that it had had with
Speaker 1: the country. Bloomberg Intelligence analysts are calculating that that means
Speaker 1: the eber dark could drop as much as sixteen percent
Speaker 1: for eden Red on the back of those regulatory changes
Speaker 1: in Brazil, which is quite an important market for the company,
Speaker 1: and that really explains that major weakness that we've seen
Speaker 1: in the stock. At least one good thing is that
Speaker 1: there is now a bit more regulatory clarity, but obviously
Speaker 1: it's not good news.
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