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: Let's take a look at some stocks on the move
Speaker 3: today in Europe. I'm Stephen Kroll with Lizzie Burdon, and
Speaker 3: we're joined by our reporter Chloe Melee. Chloe, good morning.
Speaker 3: Let's start with defense stocks, all trading lower, it appears
Speaker 3: this morning, this following the latest developments in the Ukraine
Speaker 3: talks and the possibility of some progress. Now you've been
Speaker 3: looking at Ryan Mettal in particular.
Speaker 4: Yeah, absolutely, Ryan Mattau down more than four percent this morning.
Speaker 4: But we are seeing that weakness across all of those
Speaker 4: names like Hensoul to Tallis Bae this morning, because, as
Speaker 4: you say, there is now progress on those Ukraine pre stalks,
Speaker 4: and Trump has said that the end of the war
Speaker 4: is getting closer than ever, and Zelenski has said that
Speaker 4: he'd reached an agreement with the US to make security
Speaker 4: guarantees legally binding. So now now all of that has
Speaker 4: been really pushing those defense shares lower, and now the
Speaker 4: focus is on the response from Putin, So the Russian
Speaker 4: Deputy Foreign Minister told ABC News that he is very confident,
Speaker 4: very much confident that the war is coming to an end,
Speaker 4: but they are still thinks to iron out, and he
Speaker 4: insisted that the territorial demands to remain unchanged from Russia's
Speaker 4: point of view, and so that is really going to
Speaker 4: be a sticking point going forward for the negotiations because
Speaker 4: Ukraine has said that there had been no decisions on
Speaker 4: Ukraine giving up any land, but Trump is said that
Speaker 4: they would have to.
Speaker 1: So they are still thinks to be figured out.
Speaker 4: But the prospect of that piece deal is coming closer,
Speaker 4: much closer than perhaps previous efforts, and therefore we are
Speaker 4: seeing that weakness across the defense industry this morning.
Speaker 5: You do wonder whether this is an overreaction, Chloe. If
Speaker 5: Russia isn't busy with Ukraine, the Baltics and the Nordics
Speaker 5: are going to have to rearm surely. And if Putin
Speaker 5: concludes that the West rolled over, then you know you've
Speaker 5: got other places in Europe that will be giving defense
Speaker 5: industry companies business. But we'll park that for a moment,
Speaker 5: and Lorque elsewhere to ubs moves upwards for them this
Speaker 5: morning tell us more about their quote highly attractive proposition,
Speaker 5: as one analyst put it.
Speaker 1: Yeah, absolutely so.
Speaker 4: Bank of America a List upgraded UBS to a bio rating,
Speaker 4: and they said that the Swiss bank will be able
Speaker 4: to grow earnings per share at the fastest pace of
Speaker 4: any bank globally, so that's why it's such a highly
Speaker 4: attractive proposition from UBS. And it also added the bank
Speaker 4: to its Europe one list, which is a list of
Speaker 4: the top European stock ideas for twenty twenty six. And
Speaker 4: Lisa said that the bank will be benefiting from the
Speaker 4: wealth markets in Asia. But the big boost really is
Speaker 4: going is coming from the fact that there is currently
Speaker 4: well there's now a way out of the political standoff
Speaker 4: that we've seen between UBS and the Swiss government. So
Speaker 4: the government have been trying to tighten rules around the
Speaker 4: banking sector and that would have threatened UBS with twenty
Speaker 4: six billion dollars in new capital requirements. But the latest
Speaker 4: that we had on this is that last week a
Speaker 4: group of Swiss lawmakers proposed watering down those capital demands
Speaker 4: that the country wanted to impose on UBS, and that
Speaker 4: sent the shares much.
Speaker 1: Higher last Friday.
Speaker 4: And now, according to Beck of America, analyst, This really
Speaker 4: is paving the way for compromise and that offers a
Speaker 4: way out for ubs and therefore is really making that stock,
Speaker 4: as we said, highly attractive.
Speaker 1: So that's really the main thing.
Speaker 3: And then finally today, Chloe, we've heard the news that
Speaker 3: the EU is moving to a band and its combuston
Speaker 3: engine ban. How a carmaker is doing after that news.
Speaker 1: Pretty well, it's a big, big win for them.
Speaker 4: So, as you said, we've got confirmation for something that
Speaker 4: we had talked about yesterday, so that you expected to
Speaker 4: abandon that ban on those combintion engined cars, and that
Speaker 4: was due to effect in twenty thirty five, So that
Speaker 4: essentially leaves car makers a little bit more time to
Speaker 4: transition to emission free vehicles and that removes obviously some
Speaker 4: of that regulatory burden, those regulatory costs that would have
Speaker 4: come with that. There will still be some attempts at
Speaker 4: hitting some climate target, so a carmakers will need to
Speaker 4: compensate for that additional pollution by using low carbon or
Speaker 4: renewable fuels or locally produced green steel, and the tailpipe
Speaker 4: emissions will need to be reduced by ninety percent by
Speaker 4: the middle of the next decade. And the previous score
Speaker 4: was of one hundred percent, but I guess it's still
Speaker 4: pretty high. But this is overall wink for carmakers that
Speaker 4: had been really lobbying against those rules, and it's also
Speaker 4: a signaled that there is this wider pullback from green
Speaker 4: policies that we started, that got started in the US,
Speaker 4: but that we can see now kind of spilling over
Speaker 4: into Europe as well.
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