WEBVTT - Kering Up, Holcim Gains, TKMS Rises

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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 1>Let's take a look at some stocks on the move

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<v Speaker 1>today in Europe. I'm Stephen Caroll and I'm joined by

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<v Speaker 1>Bloomberg reporter Chloe Melee. Chloe, good morning to you. Let's

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<v Speaker 1>start with the French luxury group carrying an announcement from

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<v Speaker 1>them selling off one of their divisions.

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<v Speaker 3>Yeah, so Karen sold their beauty division to Laurel in

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<v Speaker 3>a four billion euro deal and that is part of

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<v Speaker 3>a broader strategic partnerships between the the two company in

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<v Speaker 3>beauty and wellness in particular. So the move is a

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<v Speaker 3>reversal of the previous strategy from Caring, which had tried

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<v Speaker 3>to push into that beauty and cosmetics segment under previous

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<v Speaker 3>management because some luxury rivals like LVMH had found quite

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<v Speaker 3>a bit of success there. It's also seen as the

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<v Speaker 3>first really big move by Kring's new CEO, Luca de Meyer,

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<v Speaker 3>who started last month and has been trying to turn

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<v Speaker 3>around carrying the same way that he managed to turn

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<v Speaker 3>around Renault and one of his priorities has been to

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<v Speaker 3>slash costs in address carrying is really high debt burden,

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<v Speaker 3>and some analysts have said that the divestment of that

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<v Speaker 3>beauty business is good for the balance sheet and therefore

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<v Speaker 3>it has been rewarded by the market this morning with

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<v Speaker 3>shares higher. Demo is expected to unveil the strategic vision

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<v Speaker 3>next spring, but in the meantime he has been making

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<v Speaker 3>some moves already and that is being quite quite well

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<v Speaker 3>received so far.

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<v Speaker 1>Yeah, certainly those carrying shares up four point two percent

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<v Speaker 1>at the moment in Paris next to a spinoff from

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<v Speaker 1>Tissum Kroup. So the submarine maker and shipbuilder TKMS makes

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<v Speaker 1>its trading debut today.

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<v Speaker 3>Yeah, it made his trading debut in Frankfurt today. It's

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<v Speaker 3>very positive trading debut. So the spinoff decision by thisism

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<v Speaker 3>crop was made to kind of capitalize on the defense

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<v Speaker 3>spending boom in Europe and therefore the submarine in Warship

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<v Speaker 3>Manufacturing Division take Teams was a spin off TKMS. TRUW

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<v Speaker 3>is quite a good debut given it's been a very

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<v Speaker 3>positive day for the European defense sector today. We've seen

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<v Speaker 3>the shares in RAIMETTAW Han Salt Leonardo or rising today

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<v Speaker 3>as the ceasefire and Gaza looks a bit more fragile,

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<v Speaker 3>and there's no more progress that's been made on Ukraine,

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<v Speaker 3>so those tensions have been driving those shares in that

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<v Speaker 3>sector higher. Going forward, TKMS is likely to benefit from

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<v Speaker 3>that broader European defense spending a boost, but specifically German

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<v Speaker 3>defense spending. However, it is worth noting that Europe's reomnment

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<v Speaker 3>has been centering on land and air power, not so

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<v Speaker 3>much on submarines and warships, and the current naval procurement

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<v Speaker 3>from Germany foresees no major expansion of the submarine fleet.

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<v Speaker 3>So the opportunity is there and it seems to be

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<v Speaker 3>reflected in the shares, but perhaps not as massive as

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<v Speaker 3>was hoped.

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<v Speaker 1>Okay, so let's turn to Hulsom next, the Swiss construction

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<v Speaker 1>company announcing a new acquisition.

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<v Speaker 3>Yeah, so, provider of building materials at Wholesome is set

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<v Speaker 3>to acquire Exzella, which is a company that builds walls,

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<v Speaker 3>which I mean we all need those. It's a two

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<v Speaker 3>point two billion dollar deal, which is the largest in

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<v Speaker 3>four years for Wholesome and a deal that the market

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<v Speaker 3>is quite happy about. So it'll expand its offering beyond

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<v Speaker 3>the core cement cement business and then also part of

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<v Speaker 3>a strategy to have kind of more expensive and more

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<v Speaker 3>sustainable products, so it can have that value over volume

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<v Speaker 3>approach that's quite good for margins. Of course. It will

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<v Speaker 3>also boost the exposure to the German residential market, which

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<v Speaker 3>is expected to see an aptic inactivity, and it will

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<v Speaker 3>gain access to new markets like Norway, Sweden and Denmark.

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<v Speaker 3>Wholesome has changed quite a bit recently. Earlier this year,

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<v Speaker 3>the company spart off its North American operations in a

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<v Speaker 3>new dual listing between Switzerland and the US, and so

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<v Speaker 3>far the market has been quite happy about it. You know,

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<v Speaker 3>the shares are up more than fifty percent over the

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<v Speaker 3>last year, and this latest deal for Exella has been

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<v Speaker 3>also very well received.

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<v Speaker 2>The Stockmovers Report from Bloomberg Radio. Check back with us

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