Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in 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's Breaking News editor Louise Me and Louise.
Speaker 2: Good morning.
Speaker 3: The worst performing share in Europe this morning is the
Speaker 3: French trainmaker Alstom. They're down twenty nine percent currently. What's
Speaker 3: gone wrong?
Speaker 1: Yeah, they even plunged as much as thirty six percent
Speaker 1: earlier this morning, So huge loss is there for them.
Speaker 1: That's after they withdrew their financial guidance for this fiscal year,
Speaker 1: or some of their financial guidance, I should say, so,
Speaker 1: for example, they scrap their target for free cash flow,
Speaker 1: among other things, essentially citing slow progress on some key
Speaker 1: projects which is hitting their margins, etc. They didn't elaborate
Speaker 1: on exactly which projects and which regions are hit by
Speaker 1: these todays, but they're saying that they're slighting that slope
Speaker 1: progress they have already it's known that they've been grappling
Speaker 1: with quite slow progress relating to one of their big
Speaker 1: projects in the UK, and they've already taken a series
Speaker 1: of measures over the past few years to shore up
Speaker 1: debt as a result of that deal. But this is
Speaker 1: kind of, you know, bringing that problem to the four
Speaker 1: even more so. Ad R's in the US fell overnight
Speaker 1: and as you say, shares plunging this morning in Europe.
Speaker 3: Yeah, indeed, we're actually staying in France for the next
Speaker 3: story as well. And a trio of telecoms companies that
Speaker 3: are making news.
Speaker 1: Yes, So we have a consortium led by Buig, which
Speaker 1: I am Buig, and they're inexclusive talks to buy SFR.
Speaker 1: So that's part of Alti's France, which is owned by
Speaker 1: billionaire Patrick Drahies, so it's his telecoms firm. It's France's
Speaker 1: second second biggest mobile carrier. So you've got a trio
Speaker 1: of French companies wanting to buy that. Their offerers for
Speaker 1: just over twenty billion euros, twenty percent higher than they
Speaker 1: previously offered. So they previously offered that was rejected as
Speaker 1: being too low, and then their new price is kind
Speaker 1: of more in line with what SFR had reportedly been seeking.
Speaker 1: So you would expect this to be welcomed by them.
Speaker 1: What it would be is a big consolidation of the
Speaker 1: telecoms market in France, so cutting the players from four
Speaker 1: to three. A lot of the companies have been pushing
Speaker 1: for this, pushing for these combinations. They're arguing that a
Speaker 1: lack of scale means that the investment in networks isn't
Speaker 1: reaching the potential that it could. Essentially, so yes, we've
Speaker 1: got Buigue, Orange and Iliad and shares actually fell in
Speaker 1: the two that are listed there this morning, but will
Speaker 1: be keeping a close eye on if this comes to fruition.
Speaker 3: I can tell you that learning how to pronunce week
Speaker 3: was a very important step in living in France. It
Speaker 3: is one of those companies that has evolved in lots
Speaker 3: of different things because other arms have as well, involved
Speaker 3: in construction. But that's the telecoms company that we're taking
Speaker 3: a look at this morning. Let's go to Sweden next,
Speaker 3: and we've gotten news from Eric's and what's going on.
Speaker 1: Yes, sticking with telecoms, they had their first quarter results,
Speaker 1: profits missed estimates, the CEO saying they're in facing and
Speaker 1: his words, facing increasing input costs, especially in semiconductors, so
Speaker 1: rising chip costs partly on the rising demand for AI,
Speaker 1: so costs are rising there, and then kind of wider
Speaker 1: ongoing weakness in the telecoms market, so been struggling in
Speaker 1: that week market for a while. They've also warned that
Speaker 1: the Iram war code post challenges for production, with not
Speaker 1: much more detail on that. If you look back at
Speaker 1: their share price of the past year, shares have been
Speaker 1: gaining quite a lot over the past year. They've been
Speaker 1: responding to this week demand by cutting jobs, slashing costs,
Speaker 1: and that's been welcomed by the market. They also announced
Speaker 1: their first ever buy back in January. But these numbers
Speaker 1: coming through today first quarter profits missing estimates, showing that
Speaker 1: those troubles are really still will uh really still impacting
Speaker 1: the company impacting Erickson.
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