WEBVTT - Sainsbury's Up, Orsted Discount, Saab Falls

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.800 --> 0:00:18.440
<v Speaker 3>Let's take a look at some stocks on the mood

0:00:18.480 --> 0:00:21.480
<v Speaker 3>today in Europe. I'm Jacksondents with Caroline Hepker. We're joined

0:00:21.480 --> 0:00:24.720
<v Speaker 3>by Bloomberg reporter Chloe Malay. Morning Chloe. Right, So let's

0:00:24.800 --> 0:00:28.120
<v Speaker 3>start with Sainsbury's delays to their sale of our goss

0:00:28.160 --> 0:00:29.840
<v Speaker 3>but still a positive share price move.

0:00:29.960 --> 0:00:30.120
<v Speaker 4>Yeah.

0:00:30.320 --> 0:00:33.040
<v Speaker 1>So Sainsbury's ended talks with Data dot Com over the

0:00:33.320 --> 0:00:35.279
<v Speaker 1>cell of Argos this weekend, and it seems like it

0:00:35.320 --> 0:00:37.600
<v Speaker 1>was quite a quick reversal. So there was a statement

0:00:37.640 --> 0:00:39.800
<v Speaker 1>on the talks on Saturday, and then on Sunday a

0:00:39.920 --> 0:00:42.760
<v Speaker 1>statement saying that the terms and commitments from JD dot

0:00:42.800 --> 0:00:45.680
<v Speaker 1>Com would not be in the best interests of shareholders.

0:00:46.200 --> 0:00:48.199
<v Speaker 1>Argos has been a little bit of a drag on

0:00:48.240 --> 0:00:51.440
<v Speaker 1>Sainsbury's over the last few years, but recently it's actually

0:00:51.479 --> 0:00:54.560
<v Speaker 1>been performing a little bit better. So the opinion among

0:00:54.560 --> 0:00:57.120
<v Speaker 1>analysts and investors is that a Celle would make a

0:00:57.160 --> 0:00:59.959
<v Speaker 1>lot of sense, but that this particular offer from JAJA

0:01:01.000 --> 0:01:04.440
<v Speaker 1>was not enough At the moment. The strategic rationale for

0:01:04.480 --> 0:01:06.920
<v Speaker 1>the cell is there, according to analysts, because it would

0:01:06.959 --> 0:01:10.000
<v Speaker 1>allow Sainsbury's to refocus on food, which is really the

0:01:10.040 --> 0:01:14.280
<v Speaker 1>core segment, and it will also address investor concerns around

0:01:14.959 --> 0:01:18.360
<v Speaker 1>around earning's volatility because the argoss business is quite a

0:01:18.360 --> 0:01:21.560
<v Speaker 1>cyclical business as well. So the rejection of this particular

0:01:21.600 --> 0:01:24.319
<v Speaker 1>offer was taken quite well by investors and shares were

0:01:24.400 --> 0:01:26.200
<v Speaker 1>up this morning on the back of that with the

0:01:26.240 --> 0:01:29.760
<v Speaker 1>expectation now that Sainsbury's will be only selling at a

0:01:29.800 --> 0:01:30.319
<v Speaker 1>good price.

0:01:31.240 --> 0:01:36.080
<v Speaker 4>Interesting. Meanwhile, Austed, we've been talking a lot about this

0:01:36.200 --> 0:01:41.119
<v Speaker 4>wind business selling shares, but there's an issue for investors

0:01:41.120 --> 0:01:43.040
<v Speaker 4>about how low the shares are being sold.

0:01:43.160 --> 0:01:45.600
<v Speaker 1>Yeah, it's kind of another day, another Austed story. We've

0:01:45.640 --> 0:01:48.360
<v Speaker 1>been talking a lot about it. It dropped this morning

0:01:48.400 --> 0:01:50.520
<v Speaker 1>after it's said that it plans to sell new shares

0:01:50.560 --> 0:01:53.560
<v Speaker 1>at a sixty seven percent discount of Friday's closed.

0:01:53.560 --> 0:01:54.520
<v Speaker 3>So this is the.

0:01:54.560 --> 0:01:57.920
<v Speaker 1>Terms of the nine point four billion dollar rights issue

0:01:57.960 --> 0:02:00.680
<v Speaker 1>that also first announced it in August, and that is

0:02:00.720 --> 0:02:03.480
<v Speaker 1>meant to shore up its finances. So the success of

0:02:03.520 --> 0:02:06.520
<v Speaker 1>that right's offering is crucial because it could maybe allow

0:02:06.600 --> 0:02:09.080
<v Speaker 1>it to turn turned the page on a crisis that

0:02:09.120 --> 0:02:12.040
<v Speaker 1>has lasted for a really long time that got really

0:02:12.320 --> 0:02:15.840
<v Speaker 1>much worse with Trump's arrival in the White House given

0:02:15.919 --> 0:02:20.679
<v Speaker 1>his aversion to offshore wind. The company's two biggest sholders

0:02:21.360 --> 0:02:24.040
<v Speaker 1>already said that they would back the offering, and if

0:02:24.080 --> 0:02:27.079
<v Speaker 1>the capital raise is successful, it will mean that investors

0:02:27.120 --> 0:02:30.760
<v Speaker 1>believe that there's the possibility for growth for Instead going forward.

0:02:31.080 --> 0:02:33.560
<v Speaker 3>And another name contending with a sagging share price at SAAB.

0:02:34.000 --> 0:02:35.919
<v Speaker 3>What's behind their move this morning?

0:02:36.440 --> 0:02:38.920
<v Speaker 1>So Sabia, the Swedish defense company. It is down on

0:02:39.000 --> 0:02:42.480
<v Speaker 1>reports that India will not be buying its Grippen fighter jets,

0:02:42.520 --> 0:02:44.800
<v Speaker 1>which would have been a massive order for SAB obviously,

0:02:45.520 --> 0:02:50.720
<v Speaker 1>so apparently India is buying Rafoul fighter jets from Dessa Aviation,

0:02:50.840 --> 0:02:54.639
<v Speaker 1>the French company instead. SAB has struggled to get countries

0:02:54.680 --> 0:02:58.320
<v Speaker 1>interested in its Grippen fighter jets. It won a really

0:02:58.320 --> 0:03:01.400
<v Speaker 1>big order from Brazil in twenty fourteen, in obviously a long,

0:03:01.720 --> 0:03:03.480
<v Speaker 1>long long time ago, and then there was a bit

0:03:03.480 --> 0:03:07.360
<v Speaker 1>of a drought up until Thailand and Columbia decided to

0:03:07.400 --> 0:03:11.520
<v Speaker 1>make those purchases. So having that setback there with India

0:03:11.560 --> 0:03:12.880
<v Speaker 1>is obviously quite important.

0:03:13.160 --> 0:03:19.040
<v Speaker 2>PSALM the Stock Movers report from Bloomberg Radio. Check back

0:03:19.080 --> 0:03:21.320
<v Speaker 2>with us throughout the day for the latest roundup of

0:03:21.360 --> 0:03:24.640
<v Speaker 2>companies making news on Wall Street and for the latest

0:03:24.680 --> 0:03:28.880
<v Speaker 2>market moving headlines. Listen to Bloomberg Radio Live, catch us

0:03:28.919 --> 0:03:32.680
<v Speaker 2>on YouTube, Bloomberg dot com, and on Applecarplay and Android

0:03:32.680 --> 0:03:34.640
<v Speaker 2>Auto with the Bloomberg Business app.