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Speaker 2: Stock Movers Report, your roundup of companies making moves in
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Speaker 1: Well, let's take a look at some of the stops
Speaker 1: on the move today in Europe. I'm Stephen Carral with
Speaker 1: Tom McKenzie and we're joined by Bloomberg reporter Chloe Melee for that. Chloe,
Speaker 1: good morning. Let's start then with Ericson this morning, big
Speaker 1: jump in the shares of the Swedish telecoms company. What's
Speaker 1: going on?
Speaker 3: Yeah, so I reported this morning a big jump in
Speaker 3: third quarter profit and a lot of that had to
Speaker 3: do with the sell of its core routing business I Connective.
Speaker 3: It also said that the margins were healthy, so that
Speaker 3: the gross margin forecast came in ahead of expectations. And
Speaker 3: then in addition to that, it also signed a five
Speaker 3: year programmable network deal with Vodafoot and so there was
Speaker 3: another boost as well. So A Liz said this was
Speaker 3: a quarter of strong profitability and that despite end markets
Speaker 3: being quite tough for Ericson, it was able to kind
Speaker 3: of execute strongly in that environment. This is quite a
Speaker 3: positive turned around for that company after a lot of
Speaker 3: weakness in previous quarters due to the week dollar, and
Speaker 3: then also it has been dealing with another big headwind
Speaker 3: for years now, which is very weak demand in that
Speaker 3: telecom equipment market because operators have continued to delay their
Speaker 3: five G technology upgrades. So it seems now that that
Speaker 3: five G ramp up is showing progress. It seems that
Speaker 3: some efforts to cut costs and improve margins have also
Speaker 3: paid off in the third quarter, so this is quite
Speaker 3: a positive story. The chares of Nokia as well. We're up,
Speaker 3: so it seems that investors are thinking about this as
Speaker 3: kind of a broader sector story.
Speaker 1: To EasyJet also taking off. THAT'STT up three percent and
Speaker 1: otherwise an otherwise challenged equity environment.
Speaker 3: Easy Jet is also performing well. Yeah it is because
Speaker 3: it is It's reported that it is attracting some suitors EasyJet,
Speaker 3: So Mediterranean Shipping Company MSc is considering making an offer
Speaker 3: for EasyJet in partnership with an investment firm. That's according
Speaker 3: to the Italian newspaper Corrier. MSc denied involvement in this
Speaker 3: in the talks. EasyJet declined to comment, and then some
Speaker 3: analysts also quite skeptical about the likelihood of this happening. So,
Speaker 3: for example, the Bunstein analysts said that there were no
Speaker 3: synergies between the container shipping business and an airline, But
Speaker 3: regardless of the feasibility of the deal, it seems that
Speaker 3: investors are getting quite excited. This is happening in the
Speaker 3: context of easy Jet not really doing badly per se,
Speaker 3: but it has been performing its closest rival, Ryan Air
Speaker 3: for a while now, and the wider kind of low
Speaker 3: cost airline industry has been dealing with some weakness in demand.
Speaker 3: So that's the context in which those reports came in.
Speaker 1: And Michelan, the tiremaker, doesn't seem too on a roll.
Speaker 1: What's behind their drop today?
Speaker 3: It cut its outlook last night due to very weak
Speaker 3: sales of tires in North America. So it blamed in
Speaker 3: particular really slow demand for trucks and also for heavy
Speaker 3: duty vehicles that are used in agriculture. And it said,
Speaker 3: of course that US tariffs did not help either, and
Speaker 3: that that really hurt margin. So the tariffs have essentially
Speaker 3: led logistics companies to scaleback purchases of trucks because there's
Speaker 3: been slower manufacturing activity, there's been slower trade activity, which
Speaker 3: means there's less important shipments to be transported and therefore
Speaker 3: less demond for tires, so we can see this knock
Speaker 3: on effect for Mischler and Liz said that the outlook
Speaker 3: was expected, but it was worse than feared, and that
Speaker 3: explains the massive drops that we saw in the shares
Speaker 3: this morning. Indicates also broader risks across that market we
Speaker 3: can see with for example, the shares of Continental were
Speaker 3: dragged down this morning as a result as well, and
Speaker 3: that is becoming a tire's only business, so it's even
Speaker 3: more exposed now to slow down in this end market.
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