BAE Systems Up, Trainline Gains, Fever Tree Rises

On this episode of Stock Movers:
- BAE Systems aims to be able to build one warship a year within two years, shaving six months off the current amount of time required to complete each vessel.
- Trainline shares gain as much as 15%, the most since December 2023, after the online ticket retailer reported first-half results including net ticket sales that beat estimates.
- Fever-tree reported adjusted Ebitda of £18.4 million for the first half-year that beat the average analyst estimate.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers Report, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:16):
Let's take a look at some stocks on the move
today here in Europe. I'm Caroline Hepcat alongside Tom McKenzie,
which joined by bing Big Sam Onsteed Sam. Good morning.
BAE Systems planning to speed up its shipbuilding in order
to meet demand. I mean this is music to the
years of the British government surely, and it's after the
big shipbuilding deal.

Speaker 3 (00:33):
Yeah. Well, well, music to the ars of the government
and music to the years of investors in defense stocks.

Speaker 1 (00:38):
Yeah.

Speaker 3 (00:38):
I think the defense story has kind of moved onto
a new part of the cycle. Now you know that
the spending is known. Now it's a question of who's
going to pick up that spending and how are they
going to execute on it once they get those contracts through.
So BAE Systems coming out and saying we're going to
shave six months off of how long it takes us
to build warships. Music to those people, and so shares
up about three percent a day, having all ready rallied

(01:00):
by about sixty five percent this year and train Line
is in Fogers as well, so yeah, another UK company,
so an online ticket seller. Ticket sales stronger than expected
in the UK. That was partly down to a kind
of commuter recovery, so a little bit of a return
to office story going on in the background. There also
lapping period when there were more strikes. You know, this
is we're coming through a tube strike in London right now.

(01:23):
That doesn't really affect train lines so much because they're
much more about the National rail that hasn't happened so
much this year. That's been positive for them as well.
And they're buying back one hundred and fifty million pounds
of shares, which may not sound too much on the
face of it, but is about fourteen percent of their
entire market caps. That's very punchy. So the shares jumped
as much as fifteen percent earlier.

Speaker 1 (01:41):
I'm so confused about why there isn't consolidation. You can
go to the train line and buy your train tickets
ever for any rail line across the UK, but you
could also go to the individual train lines website to
buy your tickets. Very weird anyway. Fever Tree also up today,
Pricey Tonics working wonders.

Speaker 3 (01:58):
Yes, a bit of a mixed story though on fever Tree,
so their shares are up today. That's mostly because they're
doing very well in the US. They did this large
deal with multen Corez, so they have this huge distribution
network now that's working quite well in the US. In
the UK though, a little bit weaker, so you're seeing
people trade a little bit away from Priceatonics, so sales
have gone down a little bit actually for Fevertree in

(02:19):
the UK. That's partly people trading away from restaurants. They
make more margin on the stuff that they sell to
restaurants and then in stores as well. They are also
seeing a little bit of a trade down, so they're
getting hit by a kind of broader down trading story
amongst UK consumers. But the US story is taking the
precedents and shares up about eight percent.

Speaker 2 (02:36):
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