WEBVTT - Ericsson Jumps, EasyJet Surges, Michelin Drops 

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Well, let's take a look at some of the stops

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<v Speaker 1>on the move today in Europe. I'm Stephen Carral with

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<v Speaker 1>Tom McKenzie and we're joined by Bloomberg reporter Chloe Melee for that. Chloe,

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<v Speaker 1>good morning. Let's start then with Ericson this morning, big

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<v Speaker 1>jump in the shares of the Swedish telecoms company. What's

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<v Speaker 1>going on?

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<v Speaker 3>Yeah, so I reported this morning a big jump in

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<v Speaker 3>third quarter profit and a lot of that had to

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<v Speaker 3>do with the sell of its core routing business I Connective.

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<v Speaker 3>It also said that the margins were healthy, so that

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<v Speaker 3>the gross margin forecast came in ahead of expectations. And

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<v Speaker 3>then in addition to that, it also signed a five

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<v Speaker 3>year programmable network deal with Vodafoot and so there was

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<v Speaker 3>another boost as well. So A Liz said this was

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<v Speaker 3>a quarter of strong profitability and that despite end markets

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<v Speaker 3>being quite tough for Ericson, it was able to kind

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<v Speaker 3>of execute strongly in that environment. This is quite a

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<v Speaker 3>positive turned around for that company after a lot of

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<v Speaker 3>weakness in previous quarters due to the week dollar, and

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<v Speaker 3>then also it has been dealing with another big headwind

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<v Speaker 3>for years now, which is very weak demand in that

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<v Speaker 3>telecom equipment market because operators have continued to delay their

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<v Speaker 3>five G technology upgrades. So it seems now that that

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<v Speaker 3>five G ramp up is showing progress. It seems that

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<v Speaker 3>some efforts to cut costs and improve margins have also

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<v Speaker 3>paid off in the third quarter, so this is quite

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<v Speaker 3>a positive story. The chares of Nokia as well. We're up,

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<v Speaker 3>so it seems that investors are thinking about this as

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<v Speaker 3>kind of a broader sector story.

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<v Speaker 1>To EasyJet also taking off. THAT'STT up three percent and

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<v Speaker 1>otherwise an otherwise challenged equity environment.

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<v Speaker 3>Easy Jet is also performing well. Yeah it is because

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<v Speaker 3>it is It's reported that it is attracting some suitors EasyJet,

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<v Speaker 3>So Mediterranean Shipping Company MSc is considering making an offer

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<v Speaker 3>for EasyJet in partnership with an investment firm. That's according

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<v Speaker 3>to the Italian newspaper Corrier. MSc denied involvement in this

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<v Speaker 3>in the talks. EasyJet declined to comment, and then some

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<v Speaker 3>analysts also quite skeptical about the likelihood of this happening. So,

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<v Speaker 3>for example, the Bunstein analysts said that there were no

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<v Speaker 3>synergies between the container shipping business and an airline, But

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<v Speaker 3>regardless of the feasibility of the deal, it seems that

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<v Speaker 3>investors are getting quite excited. This is happening in the

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<v Speaker 3>context of easy Jet not really doing badly per se,

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<v Speaker 3>but it has been performing its closest rival, Ryan Air

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<v Speaker 3>for a while now, and the wider kind of low

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<v Speaker 3>cost airline industry has been dealing with some weakness in demand.

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<v Speaker 3>So that's the context in which those reports came in.

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<v Speaker 1>And Michelan, the tiremaker, doesn't seem too on a roll.

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<v Speaker 1>What's behind their drop today?

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<v Speaker 3>It cut its outlook last night due to very weak

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<v Speaker 3>sales of tires in North America. So it blamed in

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<v Speaker 3>particular really slow demand for trucks and also for heavy

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<v Speaker 3>duty vehicles that are used in agriculture. And it said,

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<v Speaker 3>of course that US tariffs did not help either, and

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<v Speaker 3>that that really hurt margin. So the tariffs have essentially

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<v Speaker 3>led logistics companies to scaleback purchases of trucks because there's

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<v Speaker 3>been slower manufacturing activity, there's been slower trade activity, which

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<v Speaker 3>means there's less important shipments to be transported and therefore

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<v Speaker 3>less demond for tires, so we can see this knock

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<v Speaker 3>on effect for Mischler and Liz said that the outlook

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<v Speaker 3>was expected, but it was worse than feared, and that

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<v Speaker 3>explains the massive drops that we saw in the shares

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<v Speaker 3>this morning. Indicates also broader risks across that market we

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<v Speaker 3>can see with for example, the shares of Continental were

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<v Speaker 3>dragged down this morning as a result as well, and

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<v Speaker 3>that is becoming a tire's only business, so it's even

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<v Speaker 3>more exposed now to slow down in this end market.

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<v Speaker 2>The Stock Mover's report from Bloomberg Radio. Check back with

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