1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,720 --> 00:00:18,599 Speaker 3: Now let's have a look at these stocks and on 5 00:00:18,600 --> 00:00:21,119 Speaker 3: the move today here in Europe. I'm Caroline Hepcet alongside 6 00:00:21,160 --> 00:00:24,760 Speaker 3: Bloomberg reporter at kloone Malay, Good morning, clothing. So it's September. 7 00:00:24,800 --> 00:00:29,520 Speaker 3: We're back to business and Bae Systems big news involving 8 00:00:29,560 --> 00:00:30,280 Speaker 3: them this morning. 9 00:00:30,440 --> 00:00:32,800 Speaker 1: Yeah, so we've seen quite a lot of positive movements 10 00:00:32,840 --> 00:00:35,640 Speaker 1: across the European defense sector this morning, but as you mentioned, 11 00:00:35,680 --> 00:00:39,200 Speaker 1: BA was the particular winner and what is really driving 12 00:00:39,240 --> 00:00:42,159 Speaker 1: that this morning is that Norway picked the UK as 13 00:00:42,159 --> 00:00:45,040 Speaker 1: a supplier of warships to its navy and this is 14 00:00:45,159 --> 00:00:47,800 Speaker 1: a ten billion pound deal in a deal that BAE 15 00:00:47,880 --> 00:00:50,280 Speaker 1: will have a really key role to play in. So 16 00:00:50,760 --> 00:00:53,640 Speaker 1: the UK Defense Ministry said that this would this deal 17 00:00:53,640 --> 00:00:56,480 Speaker 1: would support four thousand jobs in the UK and more 18 00:00:56,520 --> 00:00:59,800 Speaker 1: than half of them will be at the BAE shipyards 19 00:00:59,840 --> 00:01:03,160 Speaker 1: in Glasgow. So this is definitely a major win for BA, 20 00:01:03,480 --> 00:01:06,720 Speaker 1: which is obviously so central to the production of these frigates, 21 00:01:07,160 --> 00:01:11,360 Speaker 1: but also other defense names like defense contractor Babcock engine 22 00:01:11,360 --> 00:01:14,000 Speaker 1: maker ros Ros. They also have got a role to 23 00:01:14,000 --> 00:01:16,200 Speaker 1: play in that in both of which both of those 24 00:01:16,240 --> 00:01:17,480 Speaker 1: were also up. 25 00:01:17,280 --> 00:01:19,200 Speaker 4: This morning on the back of that news. 26 00:01:19,680 --> 00:01:24,160 Speaker 1: Norway has considered France, Germany in the US as potential partners, 27 00:01:24,800 --> 00:01:27,000 Speaker 1: but the UK one. And that is obviously also a 28 00:01:27,040 --> 00:01:30,000 Speaker 1: win for Kirstarma, who's been really talking a lot about 29 00:01:30,000 --> 00:01:32,160 Speaker 1: boosting that British defense industry. Yeah. 30 00:01:32,160 --> 00:01:36,160 Speaker 3: Absolutely, these are the tight twenty six frigates ten billion 31 00:01:36,280 --> 00:01:39,440 Speaker 3: pound deal. It is huge news, isn't it, even as 32 00:01:39,480 --> 00:01:42,520 Speaker 3: defense docs have been the outperformers over the course of 33 00:01:42,560 --> 00:01:45,920 Speaker 3: this year in Europe's a very interesting that the UK 34 00:01:46,080 --> 00:01:49,400 Speaker 3: is actually getting some of that money, isn't it in 35 00:01:49,880 --> 00:01:53,720 Speaker 3: terms of defense spending. Let's think about things domestically too, though. 36 00:01:53,880 --> 00:01:55,800 Speaker 3: Tesco on the move, why so? 37 00:01:55,960 --> 00:01:58,160 Speaker 1: Tesco is also yeah up this morning, and that's on 38 00:01:58,200 --> 00:02:01,280 Speaker 1: the back of a raised priced time at JP Morgan so. 39 00:02:01,600 --> 00:02:05,160 Speaker 1: JP Morgan placed Tesco on the positive Catalyst Watch and 40 00:02:05,200 --> 00:02:07,040 Speaker 1: it said that momentum looks really solid. 41 00:02:07,480 --> 00:02:10,000 Speaker 4: That's both over the term and the medium term. 42 00:02:10,560 --> 00:02:12,800 Speaker 1: It doesn't really expect it to raise its outlook just 43 00:02:12,919 --> 00:02:16,000 Speaker 1: yet at the next earnings that we'll have in October, 44 00:02:16,120 --> 00:02:18,720 Speaker 1: but said that the guidance range could be potentially narrowed 45 00:02:18,720 --> 00:02:23,160 Speaker 1: towards the high end of that guidance. The latest update 46 00:02:23,200 --> 00:02:26,240 Speaker 1: that we got from Tesco this summer was actually very positive, 47 00:02:26,280 --> 00:02:26,720 Speaker 1: so that's. 48 00:02:26,639 --> 00:02:27,880 Speaker 4: Kind of a continuation of this. 49 00:02:28,440 --> 00:02:32,600 Speaker 1: We saw solid sales growth, growth in market share as well, 50 00:02:33,160 --> 00:02:35,680 Speaker 1: so it's actually managed to do quite well despite a 51 00:02:35,840 --> 00:02:39,400 Speaker 1: very competitive pricing environment in the UK where we saw 52 00:02:39,639 --> 00:02:43,200 Speaker 1: you know, low cost retailers like Aldi and Liddle really 53 00:02:43,320 --> 00:02:46,720 Speaker 1: driving down those prices. But Tesco has managed to hold 54 00:02:46,800 --> 00:02:49,200 Speaker 1: up and really stand out in that environment. 55 00:02:49,400 --> 00:02:52,359 Speaker 3: Even though we've seen huge pressure on prices and food 56 00:02:52,440 --> 00:02:56,600 Speaker 3: inflation in the UK that's been very very difficult in 57 00:02:56,680 --> 00:03:00,360 Speaker 3: recent months. Now President Chump is up and did so 58 00:03:00,400 --> 00:03:04,640 Speaker 3: many industries, but including the wind farm production sector. And 59 00:03:04,680 --> 00:03:08,120 Speaker 3: this is where Alsted comes in. European company with lots 60 00:03:08,200 --> 00:03:09,440 Speaker 3: of US exposure. 61 00:03:09,600 --> 00:03:09,840 Speaker 4: Yeah. 62 00:03:09,840 --> 00:03:12,120 Speaker 1: Absolutely, So it was a bit of a relief this 63 00:03:12,200 --> 00:03:15,880 Speaker 1: morning for Orsted after some very very tough weeks for 64 00:03:15,960 --> 00:03:19,240 Speaker 1: that company. So Equinor, which is the second second biggest 65 00:03:19,240 --> 00:03:24,079 Speaker 1: shareholder in Orsted, said that it intends to back Orsted's 66 00:03:24,240 --> 00:03:27,280 Speaker 1: rights issue, which means that this is the first major 67 00:03:27,320 --> 00:03:31,040 Speaker 1: investor after the Danish government to back that stock a sale. 68 00:03:31,080 --> 00:03:33,920 Speaker 1: So if we cast our minds back to early August, 69 00:03:34,080 --> 00:03:37,240 Speaker 1: or Staid had announced a nine point four billion dollar 70 00:03:37,480 --> 00:03:40,120 Speaker 1: capital raise to try and shore up its business, and 71 00:03:40,160 --> 00:03:42,520 Speaker 1: that is because of how vulnerable, as you mentioned it is, 72 00:03:42,560 --> 00:03:46,720 Speaker 1: to Trump's hatred of wind energy and offshore wind energy 73 00:03:46,760 --> 00:03:48,920 Speaker 1: in particular and all of his attempts to kind of 74 00:03:48,920 --> 00:03:52,720 Speaker 1: block that particular industry, and that announcement about the share 75 00:03:52,720 --> 00:03:54,720 Speaker 1: seale really led the stock plunging. 76 00:03:54,760 --> 00:03:57,520 Speaker 4: It wiped a third of the company's a value. 77 00:03:57,560 --> 00:04:00,360 Speaker 1: And then right after that, Trump also ordered or Start 78 00:04:00,440 --> 00:04:03,960 Speaker 1: to stop working on a on a revolution wind farm, 79 00:04:03,960 --> 00:04:07,120 Speaker 1: which is a six point three billion dollar project of 80 00:04:07,240 --> 00:04:09,760 Speaker 1: the coast of the US and that was really close 81 00:04:09,800 --> 00:04:12,040 Speaker 1: to completion. So that was kind of a double whammy 82 00:04:12,240 --> 00:04:15,160 Speaker 1: for austed and that really hurt the shares. So having 83 00:04:15,160 --> 00:04:18,360 Speaker 1: Equanor kind of saying that it plans to maintain its 84 00:04:18,440 --> 00:04:21,480 Speaker 1: ten percent stake and that it will kind of support 85 00:04:21,480 --> 00:04:25,120 Speaker 1: that rights issue, that is much needed support for the company. 86 00:04:25,520 --> 00:04:28,400 Speaker 1: So the shares breathed a little site of relief, although 87 00:04:28,520 --> 00:04:31,400 Speaker 1: of course the fact remains that Trump will likely continue 88 00:04:31,400 --> 00:04:35,160 Speaker 1: to block those wind projects and so medium term prospects 89 00:04:35,320 --> 00:04:38,760 Speaker 1: have deteriorated quite a bit for osteds regardless. 90 00:04:39,839 --> 00:04:43,880 Speaker 2: The Stock Movers report from Bloomberg Radio. 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