WEBVTT - EasyJet Soars, Leonardo Rises, BE Semiconductor Slips

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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>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move today in Europe. I'm Lizzie Burden in

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<v Speaker 3>London with Stephen Carroll in Brussels, and we're joined by

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<v Speaker 3>Bloomberg's Chloe Melley.

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<v Speaker 1>Good morning, Chloe.

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<v Speaker 3>So Castle Lake latest bid for EasyJet sent the sares

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<v Speaker 3>soaring this morning.

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<v Speaker 1>What would it mean for the airline industry more broadly? Yeah,

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<v Speaker 1>so it's a really really interesting story.

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<v Speaker 4>So let's start with what it means for easy Jet

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<v Speaker 4>and then we can talk a bit more about the

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<v Speaker 4>impact for the airline industry. But easyjeir has finally said

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<v Speaker 4>yes to Castle Lake. It only took five takeover proposals.

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<v Speaker 4>This latest takeover offer is of one more than five

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<v Speaker 4>pounds and the companies have until August the third to

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<v Speaker 4>fully sign off on it. So easy Jet was first

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<v Speaker 4>seen as an m and a target because of how

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<v Speaker 4>much it's really struggle struggled of the weight of those

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<v Speaker 4>higher fuel costs. But at first it did seem very

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<v Speaker 4>reluctant to say yes to this approach. It called it

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<v Speaker 4>highly opportunistic and said it was very confident and it's

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<v Speaker 4>in a strategy. But the higher the office got from

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<v Speaker 4>Castle Lake and the more amenable easy Jet became. And

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<v Speaker 4>now we do have a deal, and they did send

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<v Speaker 4>the shares much higher this morning. And this has implications

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<v Speaker 4>beyond just Easyjets. So means the loss of yet another

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<v Speaker 4>UK listed company, But then what it means for that

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<v Speaker 4>broader airline industry is that we could see maybe a

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<v Speaker 4>wave of m and A across that sector. You know,

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<v Speaker 4>those smaller players are really feeling the impact of higher

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<v Speaker 4>oil prices, of lower consumer confidence. And so that means

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<v Speaker 4>that easy Jet might not be the only takeover target

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<v Speaker 4>that we see in this sector. And we did it

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<v Speaker 4>actually see this morning that shares across the aviation industry

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<v Speaker 4>were up. We saw a British airways owner IAG, we

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<v Speaker 4>saw Tooey, Ryanair, all of them in.

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<v Speaker 1>The green this morning. So there has been some red

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<v Speaker 1>cross from this deal with these Jet.

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<v Speaker 5>Yeah, that's an interesting one to think about in terms

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<v Speaker 5>of the London listing story. Let's go to Italy next though,

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<v Speaker 5>where a report about Italy's plans to raise defense spending.

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<v Speaker 5>It seems to be having some moves on the likes

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<v Speaker 5>of Leonardo.

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<v Speaker 4>Yes, so Leonardo actually very strongly this morning on the

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<v Speaker 4>back of this higher defense spending in Italy. So, Italy

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<v Speaker 4>is expected to raise military and security spending by about

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<v Speaker 4>seventeen billion euros over the next couple of years. That

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<v Speaker 4>is according to report by the Italian newspaper Republica. So

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<v Speaker 4>that's an expected move from Italy, given that it does

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<v Speaker 4>need to meet that nature target of five percent of

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<v Speaker 4>defense spending by the middle of the next decade. But

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<v Speaker 4>although it is not necessarily a surprise, it's still really

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<v Speaker 4>good news for Leonardo, and that's why the shares were up.

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<v Speaker 4>It's been a very interesting time for defense as a whole. Obviously,

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<v Speaker 4>it's the sector that's been a really big beneficiary of

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<v Speaker 4>this higher defense spending that we've seen across the world.

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<v Speaker 4>That's become even more important by you know, as the

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<v Speaker 4>conflict in the Middle East.

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<v Speaker 1>Lasted for months and months.

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<v Speaker 4>But there's also been a lot of volatility in that sector,

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<v Speaker 4>you know, so much so that the tank maker K

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<v Speaker 4>and Ds did postpone its IPO last week. But now

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<v Speaker 4>we also have this rotation back into those defense stocks.

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<v Speaker 4>So there's a lot happening at the moment there and

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<v Speaker 4>so it's going to be definitely an interesting one to watch.

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<v Speaker 1>Koe.

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<v Speaker 3>We've seen Asian tech stock down after in Vidia's AI

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<v Speaker 3>server delay this morning. How are weaknesses there in Asia

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<v Speaker 3>spilling over here into Europe? How is the likes of

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<v Speaker 3>B Semiconductor for example, doing.

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<v Speaker 4>Yeah, so we've seen all of those names, those chip

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<v Speaker 4>named air related names definitely in the red this morning

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<v Speaker 4>after this kind of spillover from Asia. That was after

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<v Speaker 4>a report that next generation AI servarak from system from

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<v Speaker 4>Nvidia had been delayed by more than a year because

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<v Speaker 4>of manufacturing difficulties, and so that sent names like B Semi,

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<v Speaker 4>Infinian Asm, all of those names in Europe down this morning.

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<v Speaker 4>And then in addition to that this something elsewheghing on

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<v Speaker 4>B Semiconductors. There was a report that chip makers may

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<v Speaker 4>further delay the full adoption of an advanced chip packaging technology,

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<v Speaker 4>and so that's obviously bad news for that company.

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<v Speaker 1>It comes on top of the Nvidia delay. That's really

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<v Speaker 1>a hurting sentiment across the sector. So overall a pretty

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<v Speaker 1>tough morning for that company.

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