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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market, harnessing the power of Bloomberg Data.

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Speaker 3: Let's take a look at some stocks on the move

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Speaker 3: today in you. I'm Tom McKenzie with Stephen Carroll, joined

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Speaker 3: now by Bloomberg's Market Today editor Sam Unstead and Sam.

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Speaker 3: The wind seems to be going out of allsted sales?

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Speaker 3: What is behind their more than twenty five percent slump

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Speaker 3: in the markets today? What a hit for Austeed?

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Speaker 4: Yeah, so raising money? So they're doing a really very

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Speaker 4: significant rights issue. I think, actually, what's what's really hitting

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Speaker 4: them today. So when a company is a big rights

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Speaker 4: issue like this, their shares will almost always fall. But

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Speaker 4: what's behind this as well is that part of the

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Speaker 4: reason they're having to raise money is because they are

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Speaker 4: not able now to sell off a partial stake in

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Speaker 4: Sunrise Wind in the US because the market there has

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Speaker 4: got so much weaker. So they now have to keep

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Speaker 4: that and are having to raise funding in order to

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Speaker 4: keep that on their books and be able to fund

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Speaker 4: that business, you know, go forward. So that is you know,

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Speaker 4: underlying all of this very very negative There have been

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Speaker 4: lots of concerns about the balance sheet for a little

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Speaker 4: while as well. So this is all being compounded in

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Speaker 4: this very very large rights issue, which I think they

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Speaker 4: probably hope will be the kind of kitchen sync moment,

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Speaker 4: and then the new base that they can operate from.

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Speaker 1: Yeah, okay, but a pretty significant slump and those shares

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Speaker 1: you're down almost twenty six percent in Copenhagen. S for

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Speaker 1: Capital also some news from them this morning. MSQ would

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Speaker 1: with that together and get more than just a bad

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Speaker 1: scrable hunh.

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Speaker 4: Yes, So S for Capital so actually quite a small

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Speaker 4: stock now. So this is the company that was founded

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Speaker 4: by Martin Sorrel after he left WPP. From their peak

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Speaker 4: in twenty twenty one to now, their shares have dropped

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Speaker 4: about ninety seven percent, so very very significant drop. All

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Speaker 4: the kind of issues that have been going on in

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Speaker 4: the advertising industry have hit them very hard, particularly are

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Speaker 4: pulled back in spending by tech companies. They confirmed this

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Speaker 4: morning they are in talks to merge with MSQ, which

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Speaker 4: is another ad agency owned by private equity company one Equity. Interestingly,

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Speaker 4: it would be structured that S four Capital would buy

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Speaker 4: MSQ or sort of merge with MSQ that way, there's

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Speaker 4: no real details on that because the only statement we've

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Speaker 4: had out is very shorre so at the moment, so

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Speaker 4: the structure of it is a little bit confusing. But

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Speaker 4: sport capital shares up, but as I've just mentioned, they

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Speaker 4: are up from a very low level.

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Speaker 3: And in a very different space. So from advertising this

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Speaker 3: time to defense, Ryan met out leading the defense sector

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Speaker 3: down this morning. This has been a favorite bet, of

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Speaker 3: course for those expecting that physical stimulus and that physical

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Speaker 3: spend on defense, particularly out of Germany, and it's performed,

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Speaker 3: of course, incredibly well in the last eighteen months or so,

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Speaker 3: but today it's a slightly different story for raime metal yees.

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Speaker 4: So I think there's the key reason behind this is

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Speaker 4: this meeting that's coming up between Lami Pus and Donald Trump.

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Speaker 4: The question of whether that will lead to a ceasefire.

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Speaker 4: I think for the most part, you know that the

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Speaker 4: fundamental story for defense dots, which has sent them much

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Speaker 4: much higher over the last really sort of two and

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Speaker 4: a half three years, is higher defense spending, particularly across Europe,

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Speaker 4: but really globally. However, we actually had some comments out

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Speaker 4: over the course of the last week or so that

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Speaker 4: these companies. Now that story is already priced in, and

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Speaker 4: what investors are now looking for is that next catalyst

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Speaker 4: and particulate those orders and that increasing defense spending to

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Speaker 4: actually show up in the bottom line. So defense stocks

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Speaker 4: overall seeing a little bit of a sellout.

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Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with

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Speaker 2: us throughout the day for the latest roundup of companies

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