Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now let's have a look at these stocks and on
Speaker 3: the move today here in Europe. I'm Caroline Hepcet alongside
Speaker 3: Bloomberg reporter at kloone Malay, Good morning, clothing. So it's September.
Speaker 3: We're back to business and Bae Systems big news involving
Speaker 3: them this morning.
Speaker 1: Yeah, so we've seen quite a lot of positive movements
Speaker 1: across the European defense sector this morning, but as you mentioned,
Speaker 1: BA was the particular winner and what is really driving
Speaker 1: that this morning is that Norway picked the UK as
Speaker 1: a supplier of warships to its navy and this is
Speaker 1: a ten billion pound deal in a deal that BAE
Speaker 1: will have a really key role to play in. So
Speaker 1: the UK Defense Ministry said that this would this deal
Speaker 1: would support four thousand jobs in the UK and more
Speaker 1: than half of them will be at the BAE shipyards
Speaker 1: in Glasgow. So this is definitely a major win for BA,
Speaker 1: which is obviously so central to the production of these frigates,
Speaker 1: but also other defense names like defense contractor Babcock engine
Speaker 1: maker ros Ros. They also have got a role to
Speaker 1: play in that in both of which both of those
Speaker 1: were also up.
Speaker 4: This morning on the back of that news.
Speaker 1: Norway has considered France, Germany in the US as potential partners,
Speaker 1: but the UK one. And that is obviously also a
Speaker 1: win for Kirstarma, who's been really talking a lot about
Speaker 1: boosting that British defense industry. Yeah.
Speaker 3: Absolutely, these are the tight twenty six frigates ten billion
Speaker 3: pound deal. It is huge news, isn't it, even as
Speaker 3: defense docs have been the outperformers over the course of
Speaker 3: this year in Europe's a very interesting that the UK
Speaker 3: is actually getting some of that money, isn't it in
Speaker 3: terms of defense spending. Let's think about things domestically too, though.
Speaker 3: Tesco on the move, why so?
Speaker 1: Tesco is also yeah up this morning, and that's on
Speaker 1: the back of a raised priced time at JP Morgan so.
Speaker 1: JP Morgan placed Tesco on the positive Catalyst Watch and
Speaker 1: it said that momentum looks really solid.
Speaker 4: That's both over the term and the medium term.
Speaker 1: It doesn't really expect it to raise its outlook just
Speaker 1: yet at the next earnings that we'll have in October,
Speaker 1: but said that the guidance range could be potentially narrowed
Speaker 1: towards the high end of that guidance. The latest update
Speaker 1: that we got from Tesco this summer was actually very positive,
Speaker 1: so that's.
Speaker 4: Kind of a continuation of this.
Speaker 1: We saw solid sales growth, growth in market share as well,
Speaker 1: so it's actually managed to do quite well despite a
Speaker 1: very competitive pricing environment in the UK where we saw
Speaker 1: you know, low cost retailers like Aldi and Liddle really
Speaker 1: driving down those prices. But Tesco has managed to hold
Speaker 1: up and really stand out in that environment.
Speaker 3: Even though we've seen huge pressure on prices and food
Speaker 3: inflation in the UK that's been very very difficult in
Speaker 3: recent months. Now President Chump is up and did so
Speaker 3: many industries, but including the wind farm production sector. And
Speaker 3: this is where Alsted comes in. European company with lots
Speaker 3: of US exposure.
Speaker 4: Yeah.
Speaker 1: Absolutely, So it was a bit of a relief this
Speaker 1: morning for Orsted after some very very tough weeks for
Speaker 1: that company. So Equinor, which is the second second biggest
Speaker 1: shareholder in Orsted, said that it intends to back Orsted's
Speaker 1: rights issue, which means that this is the first major
Speaker 1: investor after the Danish government to back that stock a sale.
Speaker 1: So if we cast our minds back to early August,
Speaker 1: or Staid had announced a nine point four billion dollar
Speaker 1: capital raise to try and shore up its business, and
Speaker 1: that is because of how vulnerable, as you mentioned it is,
Speaker 1: to Trump's hatred of wind energy and offshore wind energy
Speaker 1: in particular and all of his attempts to kind of
Speaker 1: block that particular industry, and that announcement about the share
Speaker 1: seale really led the stock plunging.
Speaker 4: It wiped a third of the company's a value.
Speaker 1: And then right after that, Trump also ordered or Start
Speaker 1: to stop working on a on a revolution wind farm,
Speaker 1: which is a six point three billion dollar project of
Speaker 1: the coast of the US and that was really close
Speaker 1: to completion. So that was kind of a double whammy
Speaker 1: for austed and that really hurt the shares. So having
Speaker 1: Equanor kind of saying that it plans to maintain its
Speaker 1: ten percent stake and that it will kind of support
Speaker 1: that rights issue, that is much needed support for the company.
Speaker 1: So the shares breathed a little site of relief, although
Speaker 1: of course the fact remains that Trump will likely continue
Speaker 1: to block those wind projects and so medium term prospects
Speaker 1: have deteriorated quite a bit for osteds regardless.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.