WEBVTT - Kone's Uplift, Aston Martin Stalls, UBS Beat

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

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<v Speaker 3>the move today. Then in Europe, I'm Tia Adabayo with

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<v Speaker 3>Stephen Carroll and we're joined by Bloomberg's Breaking News editor

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<v Speaker 3>Louise Moon. So, Louise, we're going to start in Finland

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<v Speaker 3>and there's some m and a news from the lift

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<v Speaker 3>and escalator company Kone.

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<v Speaker 1>Indeed, yes, so they're buying a company called TK Elevator

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<v Speaker 1>for twenty nine point four billion euros. That's including debt,

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<v Speaker 1>so twenty nine point four billion euros, and that's from

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<v Speaker 1>two private exc firms, Advent and Sinvin. So this is

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<v Speaker 1>one of Europe's biggest ever private XC exits from coone.

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<v Speaker 1>So Cone has been interested for years in buying TK Elevator.

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<v Speaker 1>They tried to buy in twenty twenty in collaboration with CVC,

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<v Speaker 1>and they lost out to Advent and Sinvin. When they

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<v Speaker 1>bought it, then it will be a big deal for

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<v Speaker 1>the company. So the combined group will be nearly double

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<v Speaker 1>Cone's existing size. More than one hundred thousand staff in

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<v Speaker 1>around one hundred countries, headquartered in Finland. And crucially what

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<v Speaker 1>it does is it gives them exposure to the US.

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<v Speaker 1>They currently have about a quarter of their revenue from

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<v Speaker 1>the US and about forty percent in Europe, so it

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<v Speaker 1>will boost that exposure to America which is expected sorry

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<v Speaker 1>that as well as you know, the whole business is

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<v Speaker 1>expected to generate annual sales of over twenty billions, so

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<v Speaker 1>it's a really big deal for them. Gives them a

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<v Speaker 1>lot more exposure, a lot more staff, and just really

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<v Speaker 1>grows the company and shares rising as a result of that.

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<v Speaker 1>So quite a bit higher in early trading.

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<v Speaker 2>So that's on kline in Finland.

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<v Speaker 3>Let's come back to the UK now, Lass is reported

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<v Speaker 3>at the Luxury Carmaker, asked Martin.

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<v Speaker 1>Yeah, so it's quite an interesting one in terms of

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<v Speaker 1>the sher reaction. This morning, shares have actually climbed at

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<v Speaker 1>one point up over about six percent. So this after

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<v Speaker 1>their first qusse of results numbers. Some of the numbers

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<v Speaker 1>came in ahead of expectations and Aston Martin stuck to guidance,

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<v Speaker 1>So it seems that's what analysts are focusing on. You know,

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<v Speaker 1>there's been more sales of top end cars to the

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<v Speaker 1>average selling price increased and there were some comments saying,

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<v Speaker 1>you know, it's good enough. It's going in the right

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<v Speaker 1>direction for Aston Martin. This is despite, as you say,

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<v Speaker 1>losses elsewhere, so there was a pretax loss. Revenue also

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<v Speaker 1>fell short overall deliveries missing expectations, and they've still got

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<v Speaker 1>really high levels of debt, so their debt levels over

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<v Speaker 1>one billion one point four to six billion pounds. This

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<v Speaker 1>is all in the background of Aston Martin. It's been

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<v Speaker 1>struggling for a long time and struggling to turn itself around,

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<v Speaker 1>stuck in first gear, if you will. The billionaire Lawrence

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<v Speaker 1>Schuld took control on twenty twenty. He's been trying to

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<v Speaker 1>rescue it. But essentially it's faced a lot of headwinds.

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<v Speaker 1>They've had products delays, tariffs slow down in China, quality problems,

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<v Speaker 1>a whole host of issues. They've been pulling back on

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<v Speaker 1>spending to try and control this, cutting jobs, putting some

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<v Speaker 1>models on review, but none of this has really been working,

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<v Speaker 1>and so what they've been doing so far is propping

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<v Speaker 1>themselves up by a series of capital raises, and they

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<v Speaker 1>actually announced another one this morning of about fifteen million

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<v Speaker 1>pounds to try and ease that pressure. So they've still

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<v Speaker 1>got a long way to go with this turnaround, but

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<v Speaker 1>essentially shares are rising on the indication that things are

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<v Speaker 1>going in the right direction because some of those numbers

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<v Speaker 1>came in better than expected.

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<v Speaker 3>Okay, so it seems like Aston Martin could be stalling,

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<v Speaker 3>yes again, But moving on to UBS. It's a big

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<v Speaker 3>story we've been talking about this morning. It's among the

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<v Speaker 3>big banking names that are reporting getting a positive reception

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<v Speaker 3>from investors.

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<v Speaker 1>Yes, it is, actually yeah. So they've had their first

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<v Speaker 1>course results. Profits driving ahead essentially, so traders driving those profits.

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<v Speaker 1>So net income beat estimates. Investment banking revenue is up

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<v Speaker 1>almost thirty percent. They've been capitalizing on that volatility as

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<v Speaker 1>you say that we've been seeing across banking earnings on

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<v Speaker 1>the back of the situation in the Middle East and

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<v Speaker 1>the market reaction. XTUS and effects also boosted. And they

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<v Speaker 1>say that client activity for the moment remains healthy, so

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<v Speaker 1>that's kind of reflecting an expectation that there might be

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<v Speaker 1>a solution in the release or will be reached, so

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<v Speaker 1>client activity healthy for the moments. They also say that

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<v Speaker 1>on track to meet a three billion dollar buy back

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<v Speaker 1>target that's for the third quarter, and then they aiming

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<v Speaker 1>to increase those payouts by the year end. So shares

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<v Speaker 1>Hire jumped almost six percent this morning. Did pair gain slightly,

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<v Speaker 1>but the still are higher. And that is also kind

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<v Speaker 1>of despite or in the face of a bit of

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<v Speaker 1>a lack of clarity over regulation. So a debate going

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<v Speaker 1>on in Switzerland over capital requirements and the bank's lobbying

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<v Speaker 1>hard against it. But yeah, traders driving profits and shares

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<v Speaker 1>driving higher.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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