WEBVTT - BT Deal, BAT Cuts, Prosus Rises 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Now, let's take a look at some of the stocks

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<v Speaker 1>on the move today in Europe. I'm Lidie Burden in

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<v Speaker 1>London with Stephen Carroll in Brussels, when we're joined by

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<v Speaker 1>Bloomberg's Teawa Ada Bio. Good morning teawear So you're here

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<v Speaker 1>with the British theme today, starting off with BT.

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<v Speaker 3>Yes, well, we received the news this morning that US

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<v Speaker 3>firm Verizon Communications and of course the UK's BT have

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<v Speaker 3>agreed to create this joint venture which is for their

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<v Speaker 3>international businesses. It's set to have a combined yearly revenue

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<v Speaker 3>of about four billion dollars, so quite a big deal.

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<v Speaker 3>But as part of it, interestingly, Verizon has agreed to

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<v Speaker 3>this equalization payment of six hundred and twenty five million

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<v Speaker 3>dollars to BET. That's according to a statement from the

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<v Speaker 3>companies today. It can firms an earlier Bloomberg report, and

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<v Speaker 3>it says that the companies will continue to hold equal

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<v Speaker 3>voting rights in the venture and it is subject to

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<v Speaker 3>regulatory approval still but this balancing payment from Verizon does

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<v Speaker 3>imply quite a generous sale multiple for BP. It's more

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<v Speaker 3>than ten times ebit darts according to some research which

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<v Speaker 3>has come out, one analyst saying that the deal looks

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<v Speaker 3>like a neat and attractive exit for BT. It does

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<v Speaker 3>come after BT has been looking for options for its

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<v Speaker 3>international business for quite some time now that international business

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<v Speaker 3>has been weighing on its growth for years. It does

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<v Speaker 3>offer a service to multinational corporations in about one hundred

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<v Speaker 3>and eighty countries. But in terms of investor reaction, positive

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<v Speaker 3>reaction so far today in terms of BT up as

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<v Speaker 3>much as two point three percent this morning on the news.

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<v Speaker 3>Verizon also closed up just over one percent yesterday in

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<v Speaker 3>the US. But BT has cut its sales guidance after

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<v Speaker 3>announcing this deal, and it says that's because the international

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<v Speaker 3>business and other divestments will be treated as non core assets.

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<v Speaker 3>So a positive reaction for this deal for BT this morning.

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<v Speaker 2>Okay, So next to British American tobacco and news of

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<v Speaker 2>big job cuts.

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<v Speaker 3>Yes, looking at British American Tobacco, it is reducing its

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<v Speaker 3>workforce by about one fifth. That's part of a sweeping

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<v Speaker 3>plan to bring down costs and also simplify operations. So

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<v Speaker 3>we're looking at by the end of this year, BAT

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<v Speaker 3>slashing five thousand over five thousand actually jobs and outsourcing

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<v Speaker 3>a further three thousand, five hundred. That's according to an

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<v Speaker 3>internal notice our Bloomberg has seen these numbers, and I

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<v Speaker 3>can tell you they don't include Bat's US business that's

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<v Speaker 3>operated through a subsidiary. But nevertheless, we're seeing shares falling

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<v Speaker 3>on this news, down just under two percent. It's a

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<v Speaker 3>bit of a change because we've seen bt B eighty

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<v Speaker 3>rather do pretty well. It's up at nearly thirteen percent

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<v Speaker 3>since the start of the year through Friday's close. But

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<v Speaker 3>it is contending with this falling demand that we're seeing

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<v Speaker 3>in the sector for traditional cigarettes, and this needs to

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<v Speaker 3>invest in and develop more sustainable alternatives. We're seeing the

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<v Speaker 3>likes of vapes, for example, soaring in popularity people looking

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<v Speaker 3>to quit smoking. And we're also seeing this change or

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<v Speaker 3>this shift from rivals like Philip Morris as well. Like BAT,

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<v Speaker 3>they also want to generate more than half of their

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<v Speaker 3>revenue from smoke free nicotine products. We've seen BAT partner

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<v Speaker 3>with Accenture to outsource a number of their functions as

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<v Speaker 3>they look to make this broader shift. That's including service centers,

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<v Speaker 3>which typically employ quite a big proportion of the workforce.

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<v Speaker 3>So it's likely we'll see further cuts before the end

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<v Speaker 3>of the year there from B eight.

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<v Speaker 1>Just finally, Tea worths I'm insight into the much talked

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<v Speaker 1>about tech trade with moves for investor Process. So I

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<v Speaker 1>was speaking to the CEO earlier.

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<v Speaker 3>Yeah, so Process one of the biggest winners on the

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<v Speaker 3>stock six hundred this morning. That's the global consumer and

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<v Speaker 3>Internet investor. They've revealed today that profit has more than

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<v Speaker 3>doubled in the last fiscal year. That's ahead of analyst estimates,

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<v Speaker 3>and primarily this is due to an increase in the

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<v Speaker 3>value of the state that it has in ten cent

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<v Speaker 3>in China, so that's really boosted earnings adjusted ebit was

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<v Speaker 3>over one billion in the twelve months through March. So

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<v Speaker 3>investors are reacting well to this news. Shares up just

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<v Speaker 3>under four percent, a positive move. This morning. We saw

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<v Speaker 3>a new CEO come on board in twenty twenty four.

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<v Speaker 3>Is that you mentioned you spoke to him this morning.

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<v Speaker 3>He's really working to drive up the company's growth rate.

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<v Speaker 3>So he's made large investments in companies including just Eat

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<v Speaker 3>and Just last week as well four hundred million euro

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<v Speaker 3>investment in French health tech company Alan. So it's certainly

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<v Speaker 3>one to watch, especially as we see the tech story

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<v Speaker 3>continuing to make these twists and turns, specifically in Asia.

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<v Speaker 3>Of course, the news this morning that South Korea is

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<v Speaker 3>orchestrating those investments into chips and data centers as it

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<v Speaker 3>tries to drive the digital infrastructure. So want to watch

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<v Speaker 3>in the coming weeks and months.

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