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Well, let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll and I'm joined by Bloomberg reporter Chloe Melee. Chloe, good morning. Let's start with the worst performing share on the stock six hundred this morning, the French train maker Alsom, down twenty six percent at the moment.
Yeah, not a good time, not a good day at all for Alstom.
So the chas plunged, as you said, massively this morning, and it is because it withdrew its guidance. And the reason it gave is that there are some projects for railway rolling stock, which it means trains essentially are facing some really big delays and so that means lower margins and cash for the company and that really impacts the outlook.
And Awsome didn't actually clarify which projects or in which regions that was affected, but we know that it has been dealing with really slow progress with a UK project called Aventra, which is actually Elizabeth Lion Trains and that's a contract it inherited from its acquisition in twenty twenty one of a Canadian rival, and it has seen quite a lot of delays and took a lot of different measures in the last few years to kind of shore up debt as a result of that deal.
So we know that there's issues there.
But then the rest of it is a little unclear. And of course market, the market reacted very negatively this morning to the company kind of pulling guidance all together rather than just cutting it. So and this are talking of a lack of cash, discipline and inconsistent execution as well. So it's probably going to take a lot for Alstom to get back on.
Track, back on track, Well, don't know. Let's turn to office with unintentional or was that ye see, I mean big magic. Let's turn to a company in London their workspace warning of a profit squeeze.
Yeah.
So, having also very tough morning today, it said it faces a substantial profit squeeze because of higher costs, lower rents and of course the world on everybody's lips, which is macro uncertainty. And it said that because of those pressures, it was forced to cut its dividend, and if we know anything about shareholders is that they obviously like their shareholder return, so that was not taken very well this morning.
This puts really additional pressure on that company because it's already the target of the activist investor Saba Capital Management, and the new CEO is essentially trying to reposition the business and trying to make it as the budget landlord of choice for London startups and small businesses. But he worn that, you know, that would have a short term hit on performance, and the problem is that those London small businesses are suffering at the moment from a really
difficult economic outlook and from higher taxes. So if there's one thing that they might come back on is that kind of flexible office space.
So Workspace does have.
A plan, but it might take time to kind of deliver on it, and in the meantime, those shares are really.
Taking a hit this morning.
Yeah, I certainly are to some more upbeat news then Adalyas say they're baffled by a major share sale Delivery Hero Why.
Yeah, so Uber has raised its steak and delivery Hero essentially purchasing a four point five percent steak from the biggest shareholder and Delivery Hero, which is Process, and that amounts about two hundred and seventy million euros. And that's part of the process of a Process selling down at steak in Delivery Hero, which was required by European antitrust authorities after it completed. It still for just Eat, which obviously is a direct kind of rival, and the shears
are rising this morning. But as you mentioned, one analyst has said that he was baffled by the actions from Process because he said there was no imminent pressure to sell and they could have been a better price if they had been a little more patient.
That's quite interesting.
Process is also said to be considering selling a ten percent steak to Aspects Management, which would make Aspects the new biggest shareholder, and that would have major implications for Delivery Hero, given that Aspects has been threatening to try and replace the Delivery Hero management if it doesn't try and push ahead with the sell of more assets.
And so there's quite a lot of happening with a Delivery Hero.
We'll be getting some news, some earnings and news as well a little bit later this month, so definitely a stock to watch out for.
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