WEBVTT - Ericsson Jumps, BASF Down, Maersk Cut 

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

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

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

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<v Speaker 3>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll with Lizzie Burdon,

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<v Speaker 3>and we're joined by Bloomberg reporter Chloe Malet.

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<v Speaker 2>Chloe, good morning.

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<v Speaker 3>Let's start with the big jump then in Ericson's shares.

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<v Speaker 3>What's driving the games?

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<v Speaker 1>Well, Ericson really delighted investors today with both a really

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<v Speaker 1>big beat on earnings and then also its first ever buyback.

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<v Speaker 1>So this is really good news for the company given

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<v Speaker 1>that it has struggled a little bit recently, just like

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<v Speaker 1>other makers of telecom equipment, and that is because demand

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<v Speaker 1>has been very weak from operators. You did not spend

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<v Speaker 1>as much on five G upgrades as expected and as

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<v Speaker 1>needed by that industry, and so demand is still a

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<v Speaker 1>little bit sluggish. But the earning stay from Ericson showed

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<v Speaker 1>that its efforts to cut costs in this quite difficult

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<v Speaker 1>telecoms market are paying off, and earlier this month it

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<v Speaker 1>said that they would get rid of about thirteen percent

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<v Speaker 1>of its staff in Sweden, which represents about sixteen hundred jobs,

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<v Speaker 1>and there will be other jobs worldwide there will also

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<v Speaker 1>be slashed this year. And now future growth is really

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<v Speaker 1>going to be focused on the AI boom for Ericson

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<v Speaker 1>because that technology really requires networks to be updated, and

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<v Speaker 1>the CEO, for example, said that things like drones or

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<v Speaker 1>the AI glasses that are being developed by Meta that

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<v Speaker 1>creates a lot of strain on networks and therefore that

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<v Speaker 1>needs to be updated. So AI is going to be

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<v Speaker 1>a really big growth driver for Ericson and for its

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<v Speaker 1>biggest rival, Nokia, which is a reporting next week as well,

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<v Speaker 1>so we'll be watching if Nokia gets that that boost

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<v Speaker 1>as well when it reports. Okay, and then meanwhile, the

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<v Speaker 1>chemicals company BASF posting some losses, Chloe, are we seeing

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<v Speaker 1>that reflected in markets? Yeah, So BSF fail this morning,

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<v Speaker 1>and that is because it said that earnings had a

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<v Speaker 1>dropped this year because of a drag from currency fluctuations

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<v Speaker 1>and then also lower prices for its products. So this

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<v Speaker 1>is really indictive of the long lasting downturn that we

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<v Speaker 1>have seen in that chemical sector in Europe for a

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<v Speaker 1>while now, and there's been essentially too much capacity and

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<v Speaker 1>too little demand, and especially from the car making industry,

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<v Speaker 1>which is one of the main customers for BSF. So

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<v Speaker 1>that's one of the really big problems. Though of course

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<v Speaker 1>that might get better if the auto industry recovers this year.

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<v Speaker 1>And then the other thing that's been a drag is

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<v Speaker 1>that energy costs have been really quite high in Europe

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<v Speaker 1>and that's making it a lot more difficult for chemicals

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<v Speaker 1>manufacturers in the region to compete with lower cost rivals

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<v Speaker 1>from China, for example. So for BASF, those things have

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<v Speaker 1>really dragged it down, but they are some good news,

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<v Speaker 1>including the cash flow that is in pretty good shape

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<v Speaker 1>and so that might meet a buyback and that usually

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<v Speaker 1>gets investors a little bit more excited.

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<v Speaker 3>Okay, looking next to Denmark, APMOL and MASKS shares down

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<v Speaker 3>two point nine percent. What's happening?

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<v Speaker 1>It was cut to an underperform rating by Bank of

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<v Speaker 1>America analysts and analysts have called essentially what's happening structural

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<v Speaker 1>overcapacity issues, which essentially means that they are now a

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<v Speaker 1>lot of ships and perhaps maybe too little demand given

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<v Speaker 1>those global trade tensions, and that overcapacity is going to

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<v Speaker 1>become probably even more of a problem when the red

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<v Speaker 1>Sea shipping route reopens, which had happened at some point

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<v Speaker 1>this year, and Musk has already said that it had

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<v Speaker 1>managed to complete a couple of successful passages through that

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<v Speaker 1>route which has been closed for a while. And when

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<v Speaker 1>that reopens, that means that ships don't have to take

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<v Speaker 1>the long way around around the Cape of Good Hope

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<v Speaker 1>in at the southern tip of Africa, and so that

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<v Speaker 1>means that the higher rates that shipping companies have been

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<v Speaker 1>able to ask for over the last couple of years

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<v Speaker 1>are going to come down. And all of that that

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<v Speaker 1>means lower earnings for Musk and so perhaps quite a

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<v Speaker 1>tough year for that company.

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

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