WEBVTT - Volvo Surges, Dassault Tumbles, Rentokil Rises

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.

0:00:16.560 --> 0:00:18.160
<v Speaker 3>Let's take a look at some stocks on the move

0:00:18.200 --> 0:00:20.600
<v Speaker 3>today in Europe. I'm Stephen Carroll and we're joined by

0:00:20.600 --> 0:00:24.080
<v Speaker 3>Bloomberg's Breaking These editor Louise Moon. Louise, good morning. Let's

0:00:24.079 --> 0:00:27.120
<v Speaker 3>start with Volvo Cars. Then, pretty impressive jump in their

0:00:27.160 --> 0:00:30.080
<v Speaker 3>shares currently up thirty five percent. What's going on?

0:00:30.480 --> 0:00:34.280
<v Speaker 1>Indeed, you're absolutely soaring this morning in Stockholm where they're listed.

0:00:34.280 --> 0:00:36.560
<v Speaker 1>So they had their third quarter earnings and essentially best

0:00:36.600 --> 0:00:39.680
<v Speaker 1>than expected profit. But what it really indicates is that

0:00:39.720 --> 0:00:43.560
<v Speaker 1>they're benefiting from fast and expected cost savings. The CEO

0:00:43.680 --> 0:00:46.800
<v Speaker 1>has been ongoing a wide restructuring and this is really

0:00:46.800 --> 0:00:49.280
<v Speaker 1>starting to make an impact with pushing to rebuild profits,

0:00:49.320 --> 0:00:52.120
<v Speaker 1>cutting thousands of jobs as a result of that. And

0:00:52.120 --> 0:00:54.880
<v Speaker 1>analysts is saying it's a clear inflection point, a clear

0:00:54.960 --> 0:00:59.480
<v Speaker 1>inflection point, and it singles out Volvocars from its competitors.

0:01:00.080 --> 0:01:03.480
<v Speaker 1>Good news and move forward and analyster noting you know

0:01:03.760 --> 0:01:06.560
<v Speaker 1>now that there seems to be an inflection point. The

0:01:06.600 --> 0:01:10.560
<v Speaker 1>focus now will be on momentum, pricing pressure, supply chain

0:01:10.600 --> 0:01:14.120
<v Speaker 1>development to continuing that push forward as I say, as

0:01:14.160 --> 0:01:16.840
<v Speaker 1>you say, shares really soaring this morning.

0:01:17.200 --> 0:01:19.360
<v Speaker 3>And shares it moving in a dramatic way in the

0:01:19.400 --> 0:01:22.680
<v Speaker 3>other direction. Dasso system and France dropping by the most

0:01:22.720 --> 0:01:26.440
<v Speaker 3>since two thousand and two, now down almost seventeen percent

0:01:26.520 --> 0:01:27.480
<v Speaker 3>in Paris.

0:01:27.640 --> 0:01:31.000
<v Speaker 1>Indeed trading at their lower since April twenty twenty. They

0:01:31.040 --> 0:01:34.600
<v Speaker 1>lowered their full year revenue forecast. This is on the

0:01:34.640 --> 0:01:38.320
<v Speaker 1>back of Anlysser noting third quarter growth trends are weakening.

0:01:39.000 --> 0:01:40.720
<v Speaker 1>You know, one of the key problems here is is

0:01:40.760 --> 0:01:44.560
<v Speaker 1>that they're struggling really with the migration to subscriptions. This

0:01:44.600 --> 0:01:48.280
<v Speaker 1>is obviously that their software firm. There was a bigger

0:01:48.280 --> 0:01:51.600
<v Speaker 1>guidance cut than was expected, so it's essentially kind of

0:01:51.680 --> 0:01:56.240
<v Speaker 1>raising concerns about growth. Alys also noting that, you know,

0:01:56.280 --> 0:02:00.360
<v Speaker 1>the stock is at a valuation discount to Peers, and

0:02:00.400 --> 0:02:02.600
<v Speaker 1>they're also on top of that kind of delivering blow

0:02:02.640 --> 0:02:06.040
<v Speaker 1>average growth, So they're saying that they need better financial

0:02:06.040 --> 0:02:09.240
<v Speaker 1>messaging and improvements in the execution to close that gap

0:02:09.280 --> 0:02:12.880
<v Speaker 1>with Peers. So disappointing guidance cut there.

0:02:13.320 --> 0:02:16.040
<v Speaker 3>Okay, and we're coming back to the UK for our

0:02:16.160 --> 0:02:18.120
<v Speaker 3>last chair that you've been watching, Louise, and this is

0:02:18.120 --> 0:02:20.960
<v Speaker 3>another big gainer up eleven percent. Rental Kill.

0:02:21.520 --> 0:02:25.040
<v Speaker 1>Yes, the pest control firm which I always like to

0:02:25.040 --> 0:02:28.720
<v Speaker 1>talk about Cherry exactly slightly different, but it's actually it's

0:02:28.760 --> 0:02:31.120
<v Speaker 1>a blue tip in London. It's leading the Footsie one

0:02:31.200 --> 0:02:34.440
<v Speaker 1>hundred this morning, so huge gains. As you say, this

0:02:34.480 --> 0:02:35.800
<v Speaker 1>is on the back of their third course of results.

0:02:35.800 --> 0:02:38.840
<v Speaker 1>They had better than expected revenue driven by their US

0:02:38.960 --> 0:02:41.639
<v Speaker 1>business and the rest of their business you know globally

0:02:41.720 --> 0:02:44.280
<v Speaker 1>also came in quite well. It was quite quite solid

0:02:44.960 --> 0:02:47.840
<v Speaker 1>earnings from them. Quite a shot in the arm really

0:02:47.880 --> 0:02:50.560
<v Speaker 1>that their stock hasn't really gained much at all this year,

0:02:50.639 --> 0:02:53.640
<v Speaker 1>and that follows on from three straight years of declines

0:02:53.680 --> 0:02:55.640
<v Speaker 1>in their stock. So a shot on the arm this

0:02:55.720 --> 0:02:58.680
<v Speaker 1>morning with those gains singling. You know, they're getting back

0:02:58.680 --> 0:03:01.120
<v Speaker 1>on track. They're in the right direction. They maintain their

0:03:01.160 --> 0:03:04.960
<v Speaker 1>full ye outlook. So a glimmer of light for the

0:03:05.000 --> 0:03:06.400
<v Speaker 1>past control firm rent to cover.

0:03:07.560 --> 0:03:11.760
<v Speaker 2>The Stockmovers report from Bloomberg Radio. Check back with us

0:03:11.840 --> 0:03:14.639
<v Speaker 2>throughout the day for the latest roundup of companies making

0:03:14.680 --> 0:03:18.320
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:03:18.520 --> 0:03:22.520
<v Speaker 2>Listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg

0:03:22.560 --> 0:03:25.640
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:03:25.680 --> 0:03:27.040
<v Speaker 2>Bloomberg Business app.