WEBVTT - Alstom Plunge, Workspace Squeeze, Delivery Hero Sale

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.400 --> 0:00:17.880
<v Speaker 3>Well, let's take a look at some stocks on the

0:00:17.920 --> 0:00:20.200
<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

0:00:20.200 --> 0:00:23.880
<v Speaker 3>by Bloomberg reporter Chloe Melee. Chloe, good morning. Let's start

0:00:23.920 --> 0:00:26.400
<v Speaker 3>with the worst performing share on the stock six hundred

0:00:26.400 --> 0:00:29.840
<v Speaker 3>this morning, the French train maker Alsom, down twenty six

0:00:29.880 --> 0:00:30.840
<v Speaker 3>percent at the moment.

0:00:31.520 --> 0:00:33.480
<v Speaker 1>Yeah, not a good time, not a good day at

0:00:33.479 --> 0:00:34.120
<v Speaker 1>all for Alstom.

0:00:34.200 --> 0:00:36.880
<v Speaker 4>So the chas plunged, as you said, massively this morning,

0:00:36.880 --> 0:00:39.640
<v Speaker 4>and it is because it withdrew its guidance. And the

0:00:39.680 --> 0:00:42.479
<v Speaker 4>reason it gave is that there are some projects for

0:00:42.760 --> 0:00:46.960
<v Speaker 4>railway rolling stock, which it means trains essentially are facing

0:00:47.000 --> 0:00:50.360
<v Speaker 4>some really big delays and so that means lower margins

0:00:50.400 --> 0:00:54.000
<v Speaker 4>and cash for the company and that really impacts the outlook.

0:00:54.040 --> 0:00:57.280
<v Speaker 4>And Awsome didn't actually clarify which projects or in which

0:00:57.360 --> 0:01:00.520
<v Speaker 4>regions that was affected, but we know that it has

0:01:00.560 --> 0:01:03.840
<v Speaker 4>been dealing with really slow progress with a UK project

0:01:03.840 --> 0:01:07.280
<v Speaker 4>called Aventra, which is actually Elizabeth Lion Trains and that's

0:01:07.280 --> 0:01:10.800
<v Speaker 4>a contract it inherited from its acquisition in twenty twenty

0:01:10.840 --> 0:01:14.120
<v Speaker 4>one of a Canadian rival, and it has seen quite a

0:01:14.120 --> 0:01:16.600
<v Speaker 4>lot of delays and took a lot of different measures

0:01:16.959 --> 0:01:18.920
<v Speaker 4>in the last few years to kind of shore up

0:01:18.959 --> 0:01:21.119
<v Speaker 4>debt as a result of that deal.

0:01:21.720 --> 0:01:23.320
<v Speaker 1>So we know that there's issues there.

0:01:23.160 --> 0:01:25.520
<v Speaker 4>But then the rest of it is a little unclear.

0:01:25.560 --> 0:01:29.120
<v Speaker 4>And of course market, the market reacted very negatively this

0:01:29.160 --> 0:01:32.080
<v Speaker 4>morning to the company kind of pulling guidance all together

0:01:32.240 --> 0:01:35.600
<v Speaker 4>rather than just cutting it. So and this are talking

0:01:35.640 --> 0:01:39.840
<v Speaker 4>of a lack of cash, discipline and inconsistent execution as well.

0:01:39.880 --> 0:01:41.920
<v Speaker 4>So it's probably going to take a lot for Alstom

0:01:41.959 --> 0:01:42.640
<v Speaker 4>to get back on.

0:01:42.600 --> 0:01:46.480
<v Speaker 3>Track, back on track, Well, don't know. Let's turn to

0:01:47.040 --> 0:01:51.600
<v Speaker 3>office with unintentional or was that ye see, I mean

0:01:51.720 --> 0:01:54.560
<v Speaker 3>big magic. Let's turn to a company in London their

0:01:54.680 --> 0:01:56.840
<v Speaker 3>workspace warning of a profit squeeze.

0:01:57.320 --> 0:01:57.559
<v Speaker 1>Yeah.

0:01:57.600 --> 0:02:00.600
<v Speaker 4>So, having also very tough morning today, it said it

0:02:00.800 --> 0:02:04.920
<v Speaker 4>faces a substantial profit squeeze because of higher costs, lower

0:02:04.960 --> 0:02:07.880
<v Speaker 4>rents and of course the world on everybody's lips, which

0:02:07.920 --> 0:02:11.560
<v Speaker 4>is macro uncertainty. And it said that because of those pressures,

0:02:11.600 --> 0:02:13.600
<v Speaker 4>it was forced to cut its dividend, and if we

0:02:13.680 --> 0:02:15.960
<v Speaker 4>know anything about shareholders is that they obviously like their

0:02:15.960 --> 0:02:19.080
<v Speaker 4>shareholder return, so that was not taken very well this morning.

0:02:19.680 --> 0:02:22.160
<v Speaker 4>This puts really additional pressure on that company because it's

0:02:22.160 --> 0:02:26.280
<v Speaker 4>already the target of the activist investor Saba Capital Management,

0:02:26.360 --> 0:02:30.080
<v Speaker 4>and the new CEO is essentially trying to reposition the

0:02:30.120 --> 0:02:32.919
<v Speaker 4>business and trying to make it as the budget landlord

0:02:32.919 --> 0:02:36.720
<v Speaker 4>of choice for London startups and small businesses. But he

0:02:36.919 --> 0:02:39.240
<v Speaker 4>worn that, you know, that would have a short term

0:02:39.320 --> 0:02:42.480
<v Speaker 4>hit on performance, and the problem is that those London

0:02:42.639 --> 0:02:45.880
<v Speaker 4>small businesses are suffering at the moment from a really

0:02:45.880 --> 0:02:49.119
<v Speaker 4>difficult economic outlook and from higher taxes. So if there's

0:02:49.120 --> 0:02:50.960
<v Speaker 4>one thing that they might come back on is that

0:02:51.040 --> 0:02:52.600
<v Speaker 4>kind of flexible office space.

0:02:52.720 --> 0:02:54.320
<v Speaker 1>So Workspace does have.

0:02:54.280 --> 0:02:56.160
<v Speaker 4>A plan, but it might take time to kind of

0:02:56.200 --> 0:02:59.440
<v Speaker 4>deliver on it, and in the meantime, those shares are really.

0:02:59.320 --> 0:03:00.400
<v Speaker 1>Taking a hit this morning.

0:03:00.960 --> 0:03:03.520
<v Speaker 3>Yeah, I certainly are to some more upbeat news then

0:03:03.720 --> 0:03:07.720
<v Speaker 3>Adalyas say they're baffled by a major share sale Delivery

0:03:07.760 --> 0:03:08.679
<v Speaker 3>Hero Why.

0:03:08.960 --> 0:03:12.239
<v Speaker 4>Yeah, so Uber has raised its steak and delivery Hero

0:03:13.040 --> 0:03:16.200
<v Speaker 4>essentially purchasing a four point five percent steak from the

0:03:16.240 --> 0:03:19.360
<v Speaker 4>biggest shareholder and Delivery Hero, which is Process, and that

0:03:19.360 --> 0:03:22.240
<v Speaker 4>amounts about two hundred and seventy million euros. And that's

0:03:22.280 --> 0:03:24.760
<v Speaker 4>part of the process of a Process selling down at

0:03:24.800 --> 0:03:29.480
<v Speaker 4>steak in Delivery Hero, which was required by European antitrust

0:03:29.480 --> 0:03:33.280
<v Speaker 4>authorities after it completed. It still for just Eat, which

0:03:33.320 --> 0:03:36.320
<v Speaker 4>obviously is a direct kind of rival, and the shears

0:03:36.600 --> 0:03:39.280
<v Speaker 4>are rising this morning. But as you mentioned, one analyst

0:03:39.320 --> 0:03:42.480
<v Speaker 4>has said that he was baffled by the actions from

0:03:42.520 --> 0:03:45.800
<v Speaker 4>Process because he said there was no imminent pressure to

0:03:45.920 --> 0:03:47.880
<v Speaker 4>sell and they could have been a better price if

0:03:47.880 --> 0:03:49.640
<v Speaker 4>they had been a little more patient.

0:03:49.800 --> 0:03:50.760
<v Speaker 1>That's quite interesting.

0:03:51.640 --> 0:03:54.320
<v Speaker 4>Process is also said to be considering selling a ten

0:03:54.320 --> 0:03:58.320
<v Speaker 4>percent steak to Aspects Management, which would make Aspects the

0:03:58.440 --> 0:04:01.760
<v Speaker 4>new biggest shareholder, and that would have major implications for

0:04:01.840 --> 0:04:05.600
<v Speaker 4>Delivery Hero, given that Aspects has been threatening to try

0:04:05.680 --> 0:04:09.160
<v Speaker 4>and replace the Delivery Hero management if it doesn't try

0:04:09.200 --> 0:04:11.640
<v Speaker 4>and push ahead with the sell of more assets.

0:04:11.680 --> 0:04:13.280
<v Speaker 1>And so there's quite a lot of happening with a

0:04:13.360 --> 0:04:13.960
<v Speaker 1>Delivery Hero.

0:04:14.280 --> 0:04:17.240
<v Speaker 4>We'll be getting some news, some earnings and news as

0:04:17.240 --> 0:04:19.600
<v Speaker 4>well a little bit later this month, so definitely a

0:04:19.640 --> 0:04:20.440
<v Speaker 4>stock to watch out for.

0:04:21.680 --> 0:04:25.680
<v Speaker 2>The stock Movers report from Bloomberg Radio. Check back with

0:04:25.760 --> 0:04:28.360
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:28.400 --> 0:04:31.520
<v Speaker 2>making news on Wall Street and for the latest market

0:04:31.560 --> 0:04:36.040
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:36.120 --> 0:04:39.599
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:39.680 --> 0:04:41.159
<v Speaker 2>the Bloomberg Business app.