WEBVTT - BAE Systems Up, Trainline Gains, Fever Tree Rises 

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.720 --> 0:00:18.200
<v Speaker 1>Let's take a look at some stocks on the move

0:00:18.239 --> 0:00:21.119
<v Speaker 1>today here in Europe. I'm Caroline Hepcat alongside Tom McKenzie,

0:00:21.120 --> 0:00:23.520
<v Speaker 1>which joined by bing Big Sam Onsteed Sam. Good morning.

0:00:23.800 --> 0:00:27.280
<v Speaker 1>BAE Systems planning to speed up its shipbuilding in order

0:00:27.320 --> 0:00:29.480
<v Speaker 1>to meet demand. I mean this is music to the

0:00:29.560 --> 0:00:32.280
<v Speaker 1>years of the British government surely, and it's after the

0:00:32.280 --> 0:00:33.400
<v Speaker 1>big shipbuilding deal.

0:00:33.840 --> 0:00:35.560
<v Speaker 3>Yeah. Well, well, music to the ars of the government

0:00:35.560 --> 0:00:37.920
<v Speaker 3>and music to the years of investors in defense stocks.

0:00:38.040 --> 0:00:38.240
<v Speaker 1>Yeah.

0:00:38.520 --> 0:00:40.760
<v Speaker 3>I think the defense story has kind of moved onto

0:00:40.760 --> 0:00:42.600
<v Speaker 3>a new part of the cycle. Now you know that

0:00:43.000 --> 0:00:45.320
<v Speaker 3>the spending is known. Now it's a question of who's

0:00:45.320 --> 0:00:47.320
<v Speaker 3>going to pick up that spending and how are they

0:00:47.320 --> 0:00:49.480
<v Speaker 3>going to execute on it once they get those contracts through.

0:00:49.800 --> 0:00:51.839
<v Speaker 3>So BAE Systems coming out and saying we're going to

0:00:51.840 --> 0:00:54.279
<v Speaker 3>shave six months off of how long it takes us

0:00:54.280 --> 0:00:58.160
<v Speaker 3>to build warships. Music to those people, and so shares

0:00:58.240 --> 0:01:00.640
<v Speaker 3>up about three percent a day, having all ready rallied

0:01:00.680 --> 0:01:03.760
<v Speaker 3>by about sixty five percent this year and train Line

0:01:04.040 --> 0:01:06.679
<v Speaker 3>is in Fogers as well, so yeah, another UK company,

0:01:06.760 --> 0:01:10.680
<v Speaker 3>so an online ticket seller. Ticket sales stronger than expected

0:01:10.720 --> 0:01:12.520
<v Speaker 3>in the UK. That was partly down to a kind

0:01:12.520 --> 0:01:14.399
<v Speaker 3>of commuter recovery, so a little bit of a return

0:01:14.480 --> 0:01:17.240
<v Speaker 3>to office story going on in the background. There also

0:01:17.440 --> 0:01:20.600
<v Speaker 3>lapping period when there were more strikes. You know, this

0:01:20.640 --> 0:01:23.280
<v Speaker 3>is we're coming through a tube strike in London right now.

0:01:23.600 --> 0:01:25.600
<v Speaker 3>That doesn't really affect train lines so much because they're

0:01:25.680 --> 0:01:28.200
<v Speaker 3>much more about the National rail that hasn't happened so

0:01:28.280 --> 0:01:30.280
<v Speaker 3>much this year. That's been positive for them as well.

0:01:30.480 --> 0:01:32.520
<v Speaker 3>And they're buying back one hundred and fifty million pounds

0:01:32.520 --> 0:01:34.280
<v Speaker 3>of shares, which may not sound too much on the

0:01:34.280 --> 0:01:36.320
<v Speaker 3>face of it, but is about fourteen percent of their

0:01:36.480 --> 0:01:39.880
<v Speaker 3>entire market caps. That's very punchy. So the shares jumped

0:01:39.880 --> 0:01:41.400
<v Speaker 3>as much as fifteen percent earlier.

0:01:41.520 --> 0:01:44.040
<v Speaker 1>I'm so confused about why there isn't consolidation. You can

0:01:44.080 --> 0:01:46.760
<v Speaker 1>go to the train line and buy your train tickets

0:01:46.880 --> 0:01:49.160
<v Speaker 1>ever for any rail line across the UK, but you

0:01:49.160 --> 0:01:51.480
<v Speaker 1>could also go to the individual train lines website to

0:01:51.480 --> 0:01:55.880
<v Speaker 1>buy your tickets. Very weird anyway. Fever Tree also up today,

0:01:56.360 --> 0:01:58.280
<v Speaker 1>Pricey Tonics working wonders.

0:01:58.520 --> 0:02:00.880
<v Speaker 3>Yes, a bit of a mixed story though on fever Tree,

0:02:00.920 --> 0:02:03.400
<v Speaker 3>so their shares are up today. That's mostly because they're

0:02:03.400 --> 0:02:05.240
<v Speaker 3>doing very well in the US. They did this large

0:02:05.240 --> 0:02:07.800
<v Speaker 3>deal with multen Corez, so they have this huge distribution

0:02:07.880 --> 0:02:10.480
<v Speaker 3>network now that's working quite well in the US. In

0:02:10.560 --> 0:02:12.959
<v Speaker 3>the UK though, a little bit weaker, so you're seeing

0:02:12.960 --> 0:02:17.240
<v Speaker 3>people trade a little bit away from Priceatonics, so sales

0:02:17.280 --> 0:02:19.280
<v Speaker 3>have gone down a little bit actually for Fevertree in

0:02:19.280 --> 0:02:21.880
<v Speaker 3>the UK. That's partly people trading away from restaurants. They

0:02:21.880 --> 0:02:23.960
<v Speaker 3>make more margin on the stuff that they sell to

0:02:24.080 --> 0:02:26.760
<v Speaker 3>restaurants and then in stores as well. They are also

0:02:26.800 --> 0:02:28.320
<v Speaker 3>seeing a little bit of a trade down, so they're

0:02:28.320 --> 0:02:31.000
<v Speaker 3>getting hit by a kind of broader down trading story

0:02:31.000 --> 0:02:33.560
<v Speaker 3>amongst UK consumers. But the US story is taking the

0:02:33.560 --> 0:02:35.160
<v Speaker 3>precedents and shares up about eight percent.

0:02:36.760 --> 0:02:40.800
<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

0:02:40.880 --> 0:02:43.440
<v Speaker 2>us throughout the day for the latest roundup of companies

0:02:43.520 --> 0:02:46.600
<v Speaker 2>making news on Wall Street and for the latest market

0:02:46.639 --> 0:02:51.120
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:02:51.200 --> 0:02:54.720
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Otto with

0:02:54.800 --> 0:02:56.280
<v Speaker 2>the Bloomberg Business app