WEBVTT - Alstom Plunge, Bouygues Talks, Ericsson Down

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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 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's Breaking News editor Louise Me and Louise.

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<v Speaker 2>Good morning.

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<v Speaker 3>The worst performing share in Europe this morning is the

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<v Speaker 3>French trainmaker Alstom. They're down twenty nine percent currently. What's

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<v Speaker 3>gone wrong?

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<v Speaker 1>Yeah, they even plunged as much as thirty six percent

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<v Speaker 1>earlier this morning, So huge loss is there for them.

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<v Speaker 1>That's after they withdrew their financial guidance for this fiscal year,

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<v Speaker 1>or some of their financial guidance, I should say, so,

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<v Speaker 1>for example, they scrap their target for free cash flow,

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<v Speaker 1>among other things, essentially citing slow progress on some key

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<v Speaker 1>projects which is hitting their margins, etc. They didn't elaborate

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<v Speaker 1>on exactly which projects and which regions are hit by

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<v Speaker 1>these todays, but they're saying that they're slighting that slope

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<v Speaker 1>progress they have already it's known that they've been grappling

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<v Speaker 1>with quite slow progress relating to one of their big

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<v Speaker 1>projects in the UK, and they've already taken a series

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<v Speaker 1>of measures over the past few years to shore up

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<v Speaker 1>debt as a result of that deal. But this is

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<v Speaker 1>kind of, you know, bringing that problem to the four

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<v Speaker 1>even more so. Ad R's in the US fell overnight

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<v Speaker 1>and as you say, shares plunging this morning in Europe.

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<v Speaker 3>Yeah, indeed, we're actually staying in France for the next

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<v Speaker 3>story as well. And a trio of telecoms companies that

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<v Speaker 3>are making news.

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<v Speaker 1>Yes, So we have a consortium led by Buig, which

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<v Speaker 1>I am Buig, and they're inexclusive talks to buy SFR.

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<v Speaker 1>So that's part of Alti's France, which is owned by

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<v Speaker 1>billionaire Patrick Drahies, so it's his telecoms firm. It's France's

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<v Speaker 1>second second biggest mobile carrier. So you've got a trio

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<v Speaker 1>of French companies wanting to buy that. Their offerers for

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<v Speaker 1>just over twenty billion euros, twenty percent higher than they

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<v Speaker 1>previously offered. So they previously offered that was rejected as

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<v Speaker 1>being too low, and then their new price is kind

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<v Speaker 1>of more in line with what SFR had reportedly been seeking.

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<v Speaker 1>So you would expect this to be welcomed by them.

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<v Speaker 1>What it would be is a big consolidation of the

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<v Speaker 1>telecoms market in France, so cutting the players from four

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<v Speaker 1>to three. A lot of the companies have been pushing

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<v Speaker 1>for this, pushing for these combinations. They're arguing that a

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<v Speaker 1>lack of scale means that the investment in networks isn't

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<v Speaker 1>reaching the potential that it could. Essentially, so yes, we've

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<v Speaker 1>got Buigue, Orange and Iliad and shares actually fell in

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<v Speaker 1>the two that are listed there this morning, but will

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<v Speaker 1>be keeping a close eye on if this comes to fruition.

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<v Speaker 3>I can tell you that learning how to pronunce week

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<v Speaker 3>was a very important step in living in France. It

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<v Speaker 3>is one of those companies that has evolved in lots

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<v Speaker 3>of different things because other arms have as well, involved

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<v Speaker 3>in construction. But that's the telecoms company that we're taking

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<v Speaker 3>a look at this morning. Let's go to Sweden next,

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<v Speaker 3>and we've gotten news from Eric's and what's going on.

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<v Speaker 1>Yes, sticking with telecoms, they had their first quarter results,

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<v Speaker 1>profits missed estimates, the CEO saying they're in facing and

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<v Speaker 1>his words, facing increasing input costs, especially in semiconductors, so

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<v Speaker 1>rising chip costs partly on the rising demand for AI,

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<v Speaker 1>so costs are rising there, and then kind of wider

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<v Speaker 1>ongoing weakness in the telecoms market, so been struggling in

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<v Speaker 1>that week market for a while. They've also warned that

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<v Speaker 1>the Iram war code post challenges for production, with not

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<v Speaker 1>much more detail on that. If you look back at

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<v Speaker 1>their share price of the past year, shares have been

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<v Speaker 1>gaining quite a lot over the past year. They've been

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<v Speaker 1>responding to this week demand by cutting jobs, slashing costs,

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<v Speaker 1>and that's been welcomed by the market. They also announced

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<v Speaker 1>their first ever buy back in January. But these numbers

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<v Speaker 1>coming through today first quarter profits missing estimates, showing that

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<v Speaker 1>those troubles are really still will uh really still impacting

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<v Speaker 1>the company impacting Erickson.

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