Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some of the stocks
Speaker 3: on the move today in Europe. I'm Lizzie Burden in
Speaker 3: London with Stephen Carroll in Brussels, and we're joined by
Speaker 3: Bloomberg's Chloe Melley.
Speaker 1: Good morning, Chloe.
Speaker 3: So Castle Lake latest bid for EasyJet sent the sares
Speaker 3: soaring this morning.
Speaker 1: What would it mean for the airline industry more broadly? Yeah,
Speaker 1: so it's a really really interesting story.
Speaker 4: So let's start with what it means for easy Jet
Speaker 4: and then we can talk a bit more about the
Speaker 4: impact for the airline industry. But easyjeir has finally said
Speaker 4: yes to Castle Lake. It only took five takeover proposals.
Speaker 4: This latest takeover offer is of one more than five
Speaker 4: pounds and the companies have until August the third to
Speaker 4: fully sign off on it. So easy Jet was first
Speaker 4: seen as an m and a target because of how
Speaker 4: much it's really struggle struggled of the weight of those
Speaker 4: higher fuel costs. But at first it did seem very
Speaker 4: reluctant to say yes to this approach. It called it
Speaker 4: highly opportunistic and said it was very confident and it's
Speaker 4: in a strategy. But the higher the office got from
Speaker 4: Castle Lake and the more amenable easy Jet became. And
Speaker 4: now we do have a deal, and they did send
Speaker 4: the shares much higher this morning. And this has implications
Speaker 4: beyond just Easyjets. So means the loss of yet another
Speaker 4: UK listed company, But then what it means for that
Speaker 4: broader airline industry is that we could see maybe a
Speaker 4: wave of m and A across that sector. You know,
Speaker 4: those smaller players are really feeling the impact of higher
Speaker 4: oil prices, of lower consumer confidence. And so that means
Speaker 4: that easy Jet might not be the only takeover target
Speaker 4: that we see in this sector. And we did it
Speaker 4: actually see this morning that shares across the aviation industry
Speaker 4: were up. We saw a British airways owner IAG, we
Speaker 4: saw Tooey, Ryanair, all of them in.
Speaker 1: The green this morning. So there has been some red
Speaker 1: cross from this deal with these Jet.
Speaker 5: Yeah, that's an interesting one to think about in terms
Speaker 5: of the London listing story. Let's go to Italy next though,
Speaker 5: where a report about Italy's plans to raise defense spending.
Speaker 5: It seems to be having some moves on the likes
Speaker 5: of Leonardo.
Speaker 4: Yes, so Leonardo actually very strongly this morning on the
Speaker 4: back of this higher defense spending in Italy. So, Italy
Speaker 4: is expected to raise military and security spending by about
Speaker 4: seventeen billion euros over the next couple of years. That
Speaker 4: is according to report by the Italian newspaper Republica. So
Speaker 4: that's an expected move from Italy, given that it does
Speaker 4: need to meet that nature target of five percent of
Speaker 4: defense spending by the middle of the next decade. But
Speaker 4: although it is not necessarily a surprise, it's still really
Speaker 4: good news for Leonardo, and that's why the shares were up.
Speaker 4: It's been a very interesting time for defense as a whole. Obviously,
Speaker 4: it's the sector that's been a really big beneficiary of
Speaker 4: this higher defense spending that we've seen across the world.
Speaker 4: That's become even more important by you know, as the
Speaker 4: conflict in the Middle East.
Speaker 1: Lasted for months and months.
Speaker 4: But there's also been a lot of volatility in that sector,
Speaker 4: you know, so much so that the tank maker K
Speaker 4: and Ds did postpone its IPO last week. But now
Speaker 4: we also have this rotation back into those defense stocks.
Speaker 4: So there's a lot happening at the moment there and
Speaker 4: so it's going to be definitely an interesting one to watch.
Speaker 1: Koe.
Speaker 3: We've seen Asian tech stock down after in Vidia's AI
Speaker 3: server delay this morning. How are weaknesses there in Asia
Speaker 3: spilling over here into Europe? How is the likes of
Speaker 3: B Semiconductor for example, doing.
Speaker 4: Yeah, so we've seen all of those names, those chip
Speaker 4: named air related names definitely in the red this morning
Speaker 4: after this kind of spillover from Asia. That was after
Speaker 4: a report that next generation AI servarak from system from
Speaker 4: Nvidia had been delayed by more than a year because
Speaker 4: of manufacturing difficulties, and so that sent names like B Semi,
Speaker 4: Infinian Asm, all of those names in Europe down this morning.
Speaker 4: And then in addition to that this something elsewheghing on
Speaker 4: B Semiconductors. There was a report that chip makers may
Speaker 4: further delay the full adoption of an advanced chip packaging technology,
Speaker 4: and so that's obviously bad news for that company.
Speaker 1: It comes on top of the Nvidia delay. That's really
Speaker 1: a hurting sentiment across the sector. So overall a pretty
Speaker 1: tough morning for that company.
Speaker 2: The stock movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street, and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.