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Well, let's take a look at some of the stops on the move today in Europe. I'm Stephen Carral with Tom McKenzie and we're joined by Bloomberg reporter Chloe Melee for that. Chloe, good morning. Let's start then with Ericson this morning, big jump in the shares of the Swedish telecoms company. What's going on?
Yeah, so I reported this morning a big jump in third quarter profit and a lot of that had to do with the sell of its core routing business I Connective. It also said that the margins were healthy, so that the gross margin forecast came in ahead of expectations. And then in addition to that, it also signed a five year programmable network deal with Vodafoot and so there was
another boost as well. So A Liz said this was a quarter of strong profitability and that despite end markets being quite tough for Ericson, it was able to kind
of execute strongly in that environment. This is quite a positive turned around for that company after a lot of weakness in previous quarters due to the week dollar, and then also it has been dealing with another big headwind for years now, which is very weak demand in that telecom equipment market because operators have continued to delay their five G technology upgrades. So it seems now that that
five G ramp up is showing progress. It seems that some efforts to cut costs and improve margins have also paid off in the third quarter, so this is quite a positive story. The chares of Nokia as well. We're up, so it seems that investors are thinking about this as kind of a broader sector story.
To EasyJet also taking off. THAT'STT up three percent and otherwise an otherwise challenged equity environment.
Easy Jet is also performing well. Yeah it is because it is It's reported that it is attracting some suitors EasyJet, So Mediterranean Shipping Company MSc is considering making an offer for EasyJet in partnership with an investment firm. That's according to the Italian newspaper Corrier. MSc denied involvement in this in the talks. EasyJet declined to comment, and then some
analysts also quite skeptical about the likelihood of this happening. So, for example, the Bunstein analysts said that there were no synergies between the container shipping business and an airline, But regardless of the feasibility of the deal, it seems that
investors are getting quite excited. This is happening in the context of easy Jet not really doing badly per se, but it has been performing its closest rival, Ryan Air for a while now, and the wider kind of low cost airline industry has been dealing with some weakness in demand. So that's the context in which those reports came in.
And Michelan, the tiremaker, doesn't seem too on a roll. What's behind their drop today?
It cut its outlook last night due to very weak sales of tires in North America. So it blamed in particular really slow demand for trucks and also for heavy duty vehicles that are used in agriculture. And it said, of course that US tariffs did not help either, and
that that really hurt margin. So the tariffs have essentially led logistics companies to scaleback purchases of trucks because there's been slower manufacturing activity, there's been slower trade activity, which means there's less important shipments to be transported and therefore less demond for tires, so we can see this knock on effect for Mischler and Liz said that the outlook was expected, but it was worse than feared, and that explains the massive drops that we saw in the shares
this morning. Indicates also broader risks across that market we can see with for example, the shares of Continental were dragged down this morning as a result as well, and that is becoming a tire's only business, so it's even more exposed now to slow down in this end market.
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