WEBVTT - CSG Soars, Babcock Down, Ericsson Jumps

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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 3>But let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Main and Luis. Good morning.

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<v Speaker 3>We're going to start with the blockbuster debut. It's the

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<v Speaker 3>defense firm CSG, and their shares are currently twenty six percent.

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<v Speaker 1>Yeah, a real performance for them debuting in Amsterdam this morning.

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<v Speaker 1>So they're a maker of armored vehicles and munition, so

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<v Speaker 1>defense company, as you say, chez jumped. That's after they

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<v Speaker 1>raised three point three billion euros in the IPOs that

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<v Speaker 1>already valued it at twenty five billion euros. That marked

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<v Speaker 1>the largest IPO ever globally for a pure play defense firm,

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<v Speaker 1>and the largest in Amsterdam for a decade. So it

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<v Speaker 1>was a big deal. And let's to say that under

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<v Speaker 1>score the defense theme and the demand in the sector

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<v Speaker 1>that we've been seeing as countries pile more money into

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<v Speaker 1>the sector over the past year longer, as well as

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<v Speaker 1>tight IPO availability. So this is kind of one of

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<v Speaker 1>the few that's been happening in Europe over the past

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<v Speaker 1>year or so. The CEO. We had an interview with

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<v Speaker 1>the CEO Bloomberg did, and he said he wasn't surprised

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<v Speaker 1>about the demand. He said the interest was great and

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<v Speaker 1>that wasn't a surprise to him. That's why they only

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<v Speaker 1>did three days of order taking, which is quite a

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<v Speaker 1>short period of time for an IPO. Interestingly, he's only

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<v Speaker 1>thirty three and he raised two point five billion euros,

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<v Speaker 1>which he says he's going to invest by his family office.

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<v Speaker 1>So a good day for him, a good day for CST,

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<v Speaker 1>and a good day for the Amsterdam Stock Exchange.

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<v Speaker 3>Yeah. Indeed, staying with the defense theme, though slightly less

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<v Speaker 3>partsitive storytell around Babcock. Their shaws are currently down one

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<v Speaker 3>point six percent. What's going on?

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<v Speaker 1>Yeah, So they've had a CEO change. So David Lockwood,

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<v Speaker 1>he's retiring at the end of the year. That will

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<v Speaker 1>be after five years with Babcock. He's going to be

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<v Speaker 1>succeeded by a man called Harry Holt who's currently with

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<v Speaker 1>the company. He's head of their nuclear unit. Alissa are

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<v Speaker 1>essentially saying that people liked Lockwood shares when he first

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<v Speaker 1>came in and shares kind of initially struggled, but then

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<v Speaker 1>since then they've been on quite a strong trajectory. He

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<v Speaker 1>had quite a strong affinity with investors. They welcomed a

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<v Speaker 1>lot of his achievements. So that is dragging the share

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<v Speaker 1>price this morning. It's not all negative that they do

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<v Speaker 1>see Holt still as a good appointment. He's meant to

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<v Speaker 1>be known to investors. He's done well in the unit

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<v Speaker 1>that he's been in charge of, in charge of that

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<v Speaker 1>nuclear unit, so he's been seen as quite a sensible

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<v Speaker 1>appointment and someone that should continue Babcock on its trajectory

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<v Speaker 1>that it's been on on it with its successful kind

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<v Speaker 1>of strategy. But I think it seems like the love

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<v Speaker 1>for Lockwood is overshadowing that and also overshadowing Babcock had

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<v Speaker 1>positive results this morning, they said they're on course to

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<v Speaker 1>me expectations, they could even beat them. But this change

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<v Speaker 1>is dragging that share byce down.

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<v Speaker 3>Okay, well no, so let's turn then to Ericsson, another

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<v Speaker 3>company saying its shares jump up eight point three percent

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<v Speaker 3>of the moment.

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<v Speaker 1>Yes, they had their fourth quarter earnings beat forecasts. Earnings

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<v Speaker 1>up about twenty four percent year on year, and they

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<v Speaker 1>also proposed their first ever buy back. This is all

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<v Speaker 1>on the back of efforts to cut costs and boost

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<v Speaker 1>their margins in what has been quite a sluggish telecoms markets.

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<v Speaker 1>This obviously ericson the telecoms firm based in Sweden, it's

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<v Speaker 1>not the only one that's been struggling. It's across the

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<v Speaker 1>whole market. That's on the back of kind of weak demand.

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<v Speaker 1>That had been quite an anticipation of spending on upgrades

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<v Speaker 1>to five gene networks, but that kind of failed to materialize.

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<v Speaker 1>So they've been cutting costs. They've cut about five thousand

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<v Speaker 1>jobs already last year, and the CEO told Bloomberg that

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<v Speaker 1>he'll continue cutting costs at the same rate this year.

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<v Speaker 1>So this is this is benefit benefiting their numbers and

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<v Speaker 1>fishing their share price this morning. They've also on top

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<v Speaker 1>of that, they've tried to kind of find ways to

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<v Speaker 1>capitalize on the boom and AI. Yeah, so shares reacting

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<v Speaker 1>positively to those efforts to boost margins.

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