1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,520 --> 00:00:17,920 Speaker 1: Well, let's take a look at some of the stops 5 00:00:17,920 --> 00:00:20,000 Speaker 1: on the move today in Europe. I'm Stephen Carral with 6 00:00:20,040 --> 00:00:23,640 Speaker 1: Tom McKenzie and we're joined by Bloomberg reporter Chloe Melee for that. Chloe, 7 00:00:23,680 --> 00:00:27,120 Speaker 1: good morning. Let's start then with Ericson this morning, big 8 00:00:27,200 --> 00:00:29,240 Speaker 1: jump in the shares of the Swedish telecoms company. What's 9 00:00:29,280 --> 00:00:29,600 Speaker 1: going on? 10 00:00:29,960 --> 00:00:31,960 Speaker 3: Yeah, so I reported this morning a big jump in 11 00:00:32,000 --> 00:00:34,000 Speaker 3: third quarter profit and a lot of that had to 12 00:00:34,000 --> 00:00:36,800 Speaker 3: do with the sell of its core routing business I Connective. 13 00:00:37,400 --> 00:00:39,479 Speaker 3: It also said that the margins were healthy, so that 14 00:00:39,560 --> 00:00:42,920 Speaker 3: the gross margin forecast came in ahead of expectations. And 15 00:00:42,960 --> 00:00:45,080 Speaker 3: then in addition to that, it also signed a five 16 00:00:45,159 --> 00:00:47,680 Speaker 3: year programmable network deal with Vodafoot and so there was 17 00:00:47,920 --> 00:00:50,280 Speaker 3: another boost as well. So A Liz said this was 18 00:00:50,560 --> 00:00:53,960 Speaker 3: a quarter of strong profitability and that despite end markets 19 00:00:54,000 --> 00:00:56,360 Speaker 3: being quite tough for Ericson, it was able to kind 20 00:00:56,360 --> 00:00:59,600 Speaker 3: of execute strongly in that environment. This is quite a 21 00:00:59,640 --> 00:01:02,320 Speaker 3: positive turned around for that company after a lot of 22 00:01:02,360 --> 00:01:05,760 Speaker 3: weakness in previous quarters due to the week dollar, and 23 00:01:05,800 --> 00:01:08,320 Speaker 3: then also it has been dealing with another big headwind 24 00:01:08,760 --> 00:01:11,080 Speaker 3: for years now, which is very weak demand in that 25 00:01:11,160 --> 00:01:15,800 Speaker 3: telecom equipment market because operators have continued to delay their 26 00:01:15,800 --> 00:01:18,760 Speaker 3: five G technology upgrades. So it seems now that that 27 00:01:18,800 --> 00:01:21,679 Speaker 3: five G ramp up is showing progress. It seems that 28 00:01:21,959 --> 00:01:24,679 Speaker 3: some efforts to cut costs and improve margins have also 29 00:01:25,120 --> 00:01:27,920 Speaker 3: paid off in the third quarter, so this is quite 30 00:01:27,920 --> 00:01:31,479 Speaker 3: a positive story. The chares of Nokia as well. We're up, 31 00:01:31,480 --> 00:01:33,880 Speaker 3: so it seems that investors are thinking about this as 32 00:01:33,959 --> 00:01:35,640 Speaker 3: kind of a broader sector story. 33 00:01:35,360 --> 00:01:38,520 Speaker 1: To EasyJet also taking off. THAT'STT up three percent and 34 00:01:38,560 --> 00:01:40,760 Speaker 1: otherwise an otherwise challenged equity environment. 35 00:01:40,760 --> 00:01:43,240 Speaker 3: Easy Jet is also performing well. Yeah it is because 36 00:01:43,360 --> 00:01:47,039 Speaker 3: it is It's reported that it is attracting some suitors EasyJet, 37 00:01:47,080 --> 00:01:51,120 Speaker 3: So Mediterranean Shipping Company MSc is considering making an offer 38 00:01:51,400 --> 00:01:54,360 Speaker 3: for EasyJet in partnership with an investment firm. That's according 39 00:01:54,440 --> 00:01:58,960 Speaker 3: to the Italian newspaper Corrier. MSc denied involvement in this 40 00:01:59,320 --> 00:02:01,840 Speaker 3: in the talks. EasyJet declined to comment, and then some 41 00:02:01,880 --> 00:02:05,400 Speaker 3: analysts also quite skeptical about the likelihood of this happening. So, 42 00:02:05,440 --> 00:02:07,920 Speaker 3: for example, the Bunstein analysts said that there were no 43 00:02:08,000 --> 00:02:11,760 Speaker 3: synergies between the container shipping business and an airline, But 44 00:02:11,800 --> 00:02:13,960 Speaker 3: regardless of the feasibility of the deal, it seems that 45 00:02:14,000 --> 00:02:17,480 Speaker 3: investors are getting quite excited. This is happening in the 46 00:02:17,520 --> 00:02:20,360 Speaker 3: context of easy Jet not really doing badly per se, 47 00:02:20,520 --> 00:02:23,840 Speaker 3: but it has been performing its closest rival, Ryan Air 48 00:02:23,880 --> 00:02:26,320 Speaker 3: for a while now, and the wider kind of low 49 00:02:26,440 --> 00:02:30,680 Speaker 3: cost airline industry has been dealing with some weakness in demand. 50 00:02:30,720 --> 00:02:33,320 Speaker 3: So that's the context in which those reports came in. 51 00:02:34,320 --> 00:02:37,120 Speaker 1: And Michelan, the tiremaker, doesn't seem too on a roll. 52 00:02:37,240 --> 00:02:38,560 Speaker 1: What's behind their drop today? 53 00:02:39,200 --> 00:02:41,680 Speaker 3: It cut its outlook last night due to very weak 54 00:02:41,760 --> 00:02:44,440 Speaker 3: sales of tires in North America. So it blamed in 55 00:02:44,520 --> 00:02:48,120 Speaker 3: particular really slow demand for trucks and also for heavy 56 00:02:48,200 --> 00:02:51,239 Speaker 3: duty vehicles that are used in agriculture. And it said, 57 00:02:51,240 --> 00:02:54,320 Speaker 3: of course that US tariffs did not help either, and 58 00:02:54,360 --> 00:02:57,720 Speaker 3: that that really hurt margin. So the tariffs have essentially 59 00:02:57,840 --> 00:03:02,959 Speaker 3: led logistics companies to scaleback purchases of trucks because there's 60 00:03:02,960 --> 00:03:06,720 Speaker 3: been slower manufacturing activity, there's been slower trade activity, which 61 00:03:06,760 --> 00:03:10,040 Speaker 3: means there's less important shipments to be transported and therefore 62 00:03:10,080 --> 00:03:12,280 Speaker 3: less demond for tires, so we can see this knock 63 00:03:12,280 --> 00:03:15,400 Speaker 3: on effect for Mischler and Liz said that the outlook 64 00:03:15,680 --> 00:03:18,480 Speaker 3: was expected, but it was worse than feared, and that 65 00:03:18,520 --> 00:03:21,079 Speaker 3: explains the massive drops that we saw in the shares 66 00:03:21,080 --> 00:03:25,240 Speaker 3: this morning. Indicates also broader risks across that market we 67 00:03:25,320 --> 00:03:28,120 Speaker 3: can see with for example, the shares of Continental were 68 00:03:28,160 --> 00:03:30,560 Speaker 3: dragged down this morning as a result as well, and 69 00:03:30,600 --> 00:03:33,320 Speaker 3: that is becoming a tire's only business, so it's even 70 00:03:33,320 --> 00:03:36,080 Speaker 3: more exposed now to slow down in this end market. 71 00:03:36,960 --> 00:03:41,000 Speaker 2: The Stock Mover's report from Bloomberg Radio. Check back with 72 00:03:41,080 --> 00:03:43,640 Speaker 2: us throughout the day for the latest roundup of companies 73 00:03:43,720 --> 00:03:46,840 Speaker 2: making news on Wall Street and for the latest market 74 00:03:46,840 --> 00:03:51,320 Speaker 2: moving headlines. 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