WEBVTT - Stellantis Tumbles, Kongsberg Soars, Orsted 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>Now, let's have a look at some of the individual

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<v Speaker 3>stocks on the move today here in Europe. I'm Caroline Hepkin.

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<v Speaker 3>I'm joined by Bimberg Report A Chlo Malay. Good morning.

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<v Speaker 3>Let's start with Stilantis. The auto stocks had a really

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<v Speaker 3>bad day in Europe yesterday and Stilantis are whopping crop

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<v Speaker 3>dropped today.

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<v Speaker 1>Yeah, absolutely massive message drop in the shares this morning,

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<v Speaker 1>and that is because Silantis said that it will be

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<v Speaker 1>taking charges of about twenty two billion euros as part

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<v Speaker 1>of these kind of major restructuring of operations that includes

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<v Speaker 1>primarily moving away from electric vehicles. So just to give

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<v Speaker 1>an idea of some of where that money is going.

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<v Speaker 1>Within that twenty two billion year figure, we've got about

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<v Speaker 1>a six point five billion in payments to compensate suppliers,

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<v Speaker 1>for example. And the CEO said that the changes were

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<v Speaker 1>largely reflecting the cost of overestimating the pace of the

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<v Speaker 1>energy transition. So now they're kind of walking that back.

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<v Speaker 1>He's eliminated fully electric models and also left a joint

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<v Speaker 1>venture with the South Korean battery manufacturer, so very much

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<v Speaker 1>moving away from those previous ambitions under the previous the

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<v Speaker 1>previous CEO around those electric vehicles, and there's other big

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<v Speaker 1>parts of this restructuring strategy. One of the main things

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<v Speaker 1>as well is refocusing on the US market, moving a

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<v Speaker 1>little bit away from Europe as well. So charges were expected,

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<v Speaker 1>but they are actually way ahead of what analysts had anticipated,

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<v Speaker 1>which explains this really negative stock reaction this morning. And

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<v Speaker 1>now it really puts pressure on the CEO who joined

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<v Speaker 1>just last year in June, so he's not really been

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<v Speaker 1>at the HELM for that long, but it's really putting

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<v Speaker 1>pressure on him to show that those really big changes

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<v Speaker 1>around electric vehicles, around moving away from Europe are going

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<v Speaker 1>to start paying off at some point.

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<v Speaker 3>Yeah, and still Antis's chef price down as much is

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<v Speaker 3>eighteen and a half percent today. Sticking with automotives, how

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<v Speaker 3>is Kongsburg firing this morning?

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<v Speaker 1>Very well, we were talking about electric vehicles, but this

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<v Speaker 1>is about armored vehicles, and it seems that in this

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<v Speaker 1>environment is probably much better to be in the armored

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<v Speaker 1>vehicle business than the electric vehicle business. So Kongsburg operates

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<v Speaker 1>kind of across the range of industry, but the one

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<v Speaker 1>that is really going to be the focus today is

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<v Speaker 1>the defense side of the business. So it's signed a

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<v Speaker 1>contract that is valued at about one hundred and forty

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<v Speaker 1>million euros to deliver remote weapons stations to the German

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<v Speaker 1>and Swedish Armored Vehicle System. So a remote weapons station

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<v Speaker 1>is a system that allows to operate weapons using a

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<v Speaker 1>joystick from inside the protection of a vehicle. So essentially

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<v Speaker 1>we're talking about the gun that sticks out of a tank.

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<v Speaker 1>So they provide that and so that is a big contract.

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<v Speaker 1>And in Kongsburg also reported earning stay and you know,

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<v Speaker 1>it had all the divisions reporting double digit growth in

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<v Speaker 1>twenty twenty five and as well in the fourth quarter.

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<v Speaker 1>And it also said that they had a really strong

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<v Speaker 1>order backlog. So it seems that Consberg is in great

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<v Speaker 1>shape overall and that really contributed to this huge jump

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<v Speaker 1>in the shap price this morning.

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<v Speaker 3>Yeah, very interesting. As Europe of course grapples with the

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<v Speaker 3>fact that there are so many different tankers being built

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<v Speaker 3>by so many different countries. You know, that point has

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<v Speaker 3>been made frequently that there's sort of too much of

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<v Speaker 3>a range, lack of interoperability. Yeah, I think very interesting. Okay,

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<v Speaker 3>let's also think about all stared reporting a profit miss

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<v Speaker 3>how investors digesting that.

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<v Speaker 1>Well, it seems that they're actually fine with it because

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<v Speaker 1>the company also plans to reinstate dividends and to also

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<v Speaker 1>accelerate spending this year. So there seems to be an

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<v Speaker 1>effort from Austed now to kind of move on from

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<v Speaker 1>the troubles of last year when it had to deal

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<v Speaker 1>with so much pushback from the Trump administration against the

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<v Speaker 1>wind industry, and it also had to do this massive

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<v Speaker 1>rights offering to boost this balance sheet. That's the rights

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<v Speaker 1>issue that that's all we could talk about last summer,

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<v Speaker 1>I remember. But now the company wants to return castra

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<v Speaker 1>and for the first time since twenty twenty three, and

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<v Speaker 1>it wants to really focus on what is next. So

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<v Speaker 1>that's what investors are focusing on this morning, which explains

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<v Speaker 1>the share price actually actually jumping this morning. But it seems,

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<v Speaker 1>you know, that troubles are getting a little bit better,

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<v Speaker 1>but the outlook is still quite uncertain for the industry.

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<v Speaker 1>That Trump administration has not changed its stance on wind turbines.

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<v Speaker 1>It still hates them and still wants to kind of

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<v Speaker 1>hold the projects from for Austed and other companies within

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<v Speaker 1>that space. The costs are still high, supply chain issues

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<v Speaker 1>are still a problem, so it's not out of the

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<v Speaker 1>woods just yet, but the fact that the dividend was

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<v Speaker 1>reinstated was reassuring to investors.

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<v Speaker 2>The stock mover's report from Bloomberg Radio. Check back with

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