WEBVTT - BAE Up, Tesco Gains, Orsted Rises 

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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 3>Now let's have a look at these stocks and on

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<v Speaker 3>the move today here in Europe. I'm Caroline Hepcet alongside

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<v Speaker 3>Bloomberg reporter at kloone Malay, Good morning, clothing. So it's September.

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<v Speaker 3>We're back to business and Bae Systems big news involving

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<v Speaker 3>them this morning.

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<v Speaker 1>Yeah, so we've seen quite a lot of positive movements

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<v Speaker 1>across the European defense sector this morning, but as you mentioned,

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<v Speaker 1>BA was the particular winner and what is really driving

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<v Speaker 1>that this morning is that Norway picked the UK as

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<v Speaker 1>a supplier of warships to its navy and this is

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<v Speaker 1>a ten billion pound deal in a deal that BAE

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<v Speaker 1>will have a really key role to play in. So

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<v Speaker 1>the UK Defense Ministry said that this would this deal

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<v Speaker 1>would support four thousand jobs in the UK and more

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<v Speaker 1>than half of them will be at the BAE shipyards

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<v Speaker 1>in Glasgow. So this is definitely a major win for BA,

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<v Speaker 1>which is obviously so central to the production of these frigates,

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<v Speaker 1>but also other defense names like defense contractor Babcock engine

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<v Speaker 1>maker ros Ros. They also have got a role to

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<v Speaker 1>play in that in both of which both of those

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<v Speaker 1>were also up.

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<v Speaker 4>This morning on the back of that news.

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<v Speaker 1>Norway has considered France, Germany in the US as potential partners,

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<v Speaker 1>but the UK one. And that is obviously also a

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<v Speaker 1>win for Kirstarma, who's been really talking a lot about

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<v Speaker 1>boosting that British defense industry. Yeah.

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<v Speaker 3>Absolutely, these are the tight twenty six frigates ten billion

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<v Speaker 3>pound deal. It is huge news, isn't it, even as

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<v Speaker 3>defense docs have been the outperformers over the course of

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<v Speaker 3>this year in Europe's a very interesting that the UK

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<v Speaker 3>is actually getting some of that money, isn't it in

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<v Speaker 3>terms of defense spending. Let's think about things domestically too, though.

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<v Speaker 3>Tesco on the move, why so?

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<v Speaker 1>Tesco is also yeah up this morning, and that's on

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<v Speaker 1>the back of a raised priced time at JP Morgan so.

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<v Speaker 1>JP Morgan placed Tesco on the positive Catalyst Watch and

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<v Speaker 1>it said that momentum looks really solid.

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<v Speaker 4>That's both over the term and the medium term.

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<v Speaker 1>It doesn't really expect it to raise its outlook just

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<v Speaker 1>yet at the next earnings that we'll have in October,

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<v Speaker 1>but said that the guidance range could be potentially narrowed

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<v Speaker 1>towards the high end of that guidance. The latest update

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<v Speaker 1>that we got from Tesco this summer was actually very positive,

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<v Speaker 1>so that's.

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<v Speaker 4>Kind of a continuation of this.

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<v Speaker 1>We saw solid sales growth, growth in market share as well,

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<v Speaker 1>so it's actually managed to do quite well despite a

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<v Speaker 1>very competitive pricing environment in the UK where we saw

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<v Speaker 1>you know, low cost retailers like Aldi and Liddle really

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<v Speaker 1>driving down those prices. But Tesco has managed to hold

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<v Speaker 1>up and really stand out in that environment.

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<v Speaker 3>Even though we've seen huge pressure on prices and food

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<v Speaker 3>inflation in the UK that's been very very difficult in

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<v Speaker 3>recent months. Now President Chump is up and did so

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<v Speaker 3>many industries, but including the wind farm production sector. And

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<v Speaker 3>this is where Alsted comes in. European company with lots

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<v Speaker 3>of US exposure.

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<v Speaker 4>Yeah.

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<v Speaker 1>Absolutely, So it was a bit of a relief this

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<v Speaker 1>morning for Orsted after some very very tough weeks for

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<v Speaker 1>that company. So Equinor, which is the second second biggest

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<v Speaker 1>shareholder in Orsted, said that it intends to back Orsted's

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<v Speaker 1>rights issue, which means that this is the first major

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<v Speaker 1>investor after the Danish government to back that stock a sale.

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<v Speaker 1>So if we cast our minds back to early August,

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<v Speaker 1>or Staid had announced a nine point four billion dollar

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<v Speaker 1>capital raise to try and shore up its business, and

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<v Speaker 1>that is because of how vulnerable, as you mentioned it is,

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<v Speaker 1>to Trump's hatred of wind energy and offshore wind energy

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<v Speaker 1>in particular and all of his attempts to kind of

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<v Speaker 1>block that particular industry, and that announcement about the share

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<v Speaker 1>seale really led the stock plunging.

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<v Speaker 4>It wiped a third of the company's a value.

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<v Speaker 1>And then right after that, Trump also ordered or Start

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<v Speaker 1>to stop working on a on a revolution wind farm,

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<v Speaker 1>which is a six point three billion dollar project of

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<v Speaker 1>the coast of the US and that was really close

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<v Speaker 1>to completion. So that was kind of a double whammy

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<v Speaker 1>for austed and that really hurt the shares. So having

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<v Speaker 1>Equanor kind of saying that it plans to maintain its

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<v Speaker 1>ten percent stake and that it will kind of support

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<v Speaker 1>that rights issue, that is much needed support for the company.

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<v Speaker 1>So the shares breathed a little site of relief, although

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<v Speaker 1>of course the fact remains that Trump will likely continue

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<v Speaker 1>to block those wind projects and so medium term prospects

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<v Speaker 1>have deteriorated quite a bit for osteds regardless.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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