WEBVTT - Rheinmetall Falls, UBS Up, Stellantis Rises 

0:00:02.520 --> 0:00:07.000
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.760 --> 0:00:18.360
<v Speaker 3>Let's take a look at some stocks on the move

0:00:18.400 --> 0:00:20.800
<v Speaker 3>today in Europe. I'm Stephen Kroll with Lizzie Burdon, and

0:00:20.840 --> 0:00:23.440
<v Speaker 3>we're joined by our reporter Chloe Melee. Chloe, good morning.

0:00:23.840 --> 0:00:27.840
<v Speaker 3>Let's start with defense stocks, all trading lower, it appears

0:00:27.880 --> 0:00:31.720
<v Speaker 3>this morning, this following the latest developments in the Ukraine

0:00:31.840 --> 0:00:34.360
<v Speaker 3>talks and the possibility of some progress. Now you've been

0:00:34.360 --> 0:00:35.760
<v Speaker 3>looking at Ryan Mettal in particular.

0:00:36.280 --> 0:00:39.880
<v Speaker 4>Yeah, absolutely, Ryan Mattau down more than four percent this morning.

0:00:39.920 --> 0:00:42.400
<v Speaker 4>But we are seeing that weakness across all of those

0:00:42.479 --> 0:00:46.319
<v Speaker 4>names like Hensoul to Tallis Bae this morning, because, as

0:00:46.320 --> 0:00:49.879
<v Speaker 4>you say, there is now progress on those Ukraine pre stalks,

0:00:49.880 --> 0:00:51.560
<v Speaker 4>and Trump has said that the end of the war

0:00:51.880 --> 0:00:55.160
<v Speaker 4>is getting closer than ever, and Zelenski has said that

0:00:55.200 --> 0:00:57.800
<v Speaker 4>he'd reached an agreement with the US to make security

0:00:57.800 --> 0:01:01.840
<v Speaker 4>guarantees legally binding. So now now all of that has

0:01:01.880 --> 0:01:05.080
<v Speaker 4>been really pushing those defense shares lower, and now the

0:01:05.120 --> 0:01:08.360
<v Speaker 4>focus is on the response from Putin, So the Russian

0:01:08.360 --> 0:01:12.399
<v Speaker 4>Deputy Foreign Minister told ABC News that he is very confident,

0:01:12.520 --> 0:01:15.440
<v Speaker 4>very much confident that the war is coming to an end,

0:01:16.080 --> 0:01:18.440
<v Speaker 4>but they are still thinks to iron out, and he

0:01:18.520 --> 0:01:22.640
<v Speaker 4>insisted that the territorial demands to remain unchanged from Russia's

0:01:22.920 --> 0:01:24.640
<v Speaker 4>point of view, and so that is really going to

0:01:24.680 --> 0:01:27.959
<v Speaker 4>be a sticking point going forward for the negotiations because

0:01:28.560 --> 0:01:31.160
<v Speaker 4>Ukraine has said that there had been no decisions on

0:01:31.440 --> 0:01:33.480
<v Speaker 4>Ukraine giving up any land, but Trump is said that

0:01:33.520 --> 0:01:34.240
<v Speaker 4>they would have to.

0:01:34.880 --> 0:01:37.119
<v Speaker 1>So they are still thinks to be figured out.

0:01:37.120 --> 0:01:40.040
<v Speaker 4>But the prospect of that piece deal is coming closer,

0:01:40.760 --> 0:01:44.160
<v Speaker 4>much closer than perhaps previous efforts, and therefore we are

0:01:44.160 --> 0:01:47.039
<v Speaker 4>seeing that weakness across the defense industry this morning.

0:01:47.319 --> 0:01:49.520
<v Speaker 5>You do wonder whether this is an overreaction, Chloe. If

0:01:49.600 --> 0:01:52.560
<v Speaker 5>Russia isn't busy with Ukraine, the Baltics and the Nordics

0:01:52.600 --> 0:01:55.080
<v Speaker 5>are going to have to rearm surely. And if Putin

0:01:55.120 --> 0:01:58.000
<v Speaker 5>concludes that the West rolled over, then you know you've

0:01:58.000 --> 0:02:00.520
<v Speaker 5>got other places in Europe that will be giving defense

0:02:01.120 --> 0:02:05.279
<v Speaker 5>industry companies business. But we'll park that for a moment,

0:02:05.320 --> 0:02:08.320
<v Speaker 5>and Lorque elsewhere to ubs moves upwards for them this

0:02:08.440 --> 0:02:12.440
<v Speaker 5>morning tell us more about their quote highly attractive proposition,

0:02:12.560 --> 0:02:13.760
<v Speaker 5>as one analyst put it.

0:02:13.800 --> 0:02:14.600
<v Speaker 1>Yeah, absolutely so.

0:02:14.720 --> 0:02:18.040
<v Speaker 4>Bank of America a List upgraded UBS to a bio rating,

0:02:18.080 --> 0:02:20.680
<v Speaker 4>and they said that the Swiss bank will be able

0:02:20.720 --> 0:02:23.400
<v Speaker 4>to grow earnings per share at the fastest pace of

0:02:23.480 --> 0:02:26.639
<v Speaker 4>any bank globally, so that's why it's such a highly

0:02:26.639 --> 0:02:30.399
<v Speaker 4>attractive proposition from UBS. And it also added the bank

0:02:30.480 --> 0:02:32.440
<v Speaker 4>to its Europe one list, which is a list of

0:02:32.480 --> 0:02:35.840
<v Speaker 4>the top European stock ideas for twenty twenty six. And

0:02:36.400 --> 0:02:39.120
<v Speaker 4>Lisa said that the bank will be benefiting from the

0:02:39.639 --> 0:02:42.520
<v Speaker 4>wealth markets in Asia. But the big boost really is

0:02:42.560 --> 0:02:45.120
<v Speaker 4>going is coming from the fact that there is currently

0:02:45.200 --> 0:02:47.520
<v Speaker 4>well there's now a way out of the political standoff

0:02:47.560 --> 0:02:50.440
<v Speaker 4>that we've seen between UBS and the Swiss government. So

0:02:50.919 --> 0:02:53.800
<v Speaker 4>the government have been trying to tighten rules around the

0:02:53.840 --> 0:02:57.040
<v Speaker 4>banking sector and that would have threatened UBS with twenty

0:02:57.080 --> 0:03:01.200
<v Speaker 4>six billion dollars in new capital requirements. But the latest

0:03:01.240 --> 0:03:02.880
<v Speaker 4>that we had on this is that last week a

0:03:02.880 --> 0:03:07.160
<v Speaker 4>group of Swiss lawmakers proposed watering down those capital demands

0:03:07.200 --> 0:03:10.079
<v Speaker 4>that the country wanted to impose on UBS, and that

0:03:10.200 --> 0:03:11.480
<v Speaker 4>sent the shares much.

0:03:11.360 --> 0:03:13.119
<v Speaker 1>Higher last Friday.

0:03:13.200 --> 0:03:15.960
<v Speaker 4>And now, according to Beck of America, analyst, This really

0:03:16.040 --> 0:03:18.679
<v Speaker 4>is paving the way for compromise and that offers a

0:03:18.720 --> 0:03:22.200
<v Speaker 4>way out for ubs and therefore is really making that stock,

0:03:22.600 --> 0:03:24.120
<v Speaker 4>as we said, highly attractive.

0:03:24.200 --> 0:03:25.399
<v Speaker 1>So that's really the main thing.

0:03:26.800 --> 0:03:29.120
<v Speaker 3>And then finally today, Chloe, we've heard the news that

0:03:29.240 --> 0:03:31.720
<v Speaker 3>the EU is moving to a band and its combuston

0:03:31.880 --> 0:03:35.240
<v Speaker 3>engine ban. How a carmaker is doing after that news.

0:03:35.520 --> 0:03:37.360
<v Speaker 1>Pretty well, it's a big, big win for them.

0:03:37.400 --> 0:03:39.680
<v Speaker 4>So, as you said, we've got confirmation for something that

0:03:39.720 --> 0:03:42.440
<v Speaker 4>we had talked about yesterday, so that you expected to

0:03:42.480 --> 0:03:46.080
<v Speaker 4>abandon that ban on those combintion engined cars, and that

0:03:46.200 --> 0:03:49.120
<v Speaker 4>was due to effect in twenty thirty five, So that

0:03:49.280 --> 0:03:52.120
<v Speaker 4>essentially leaves car makers a little bit more time to

0:03:52.160 --> 0:03:55.920
<v Speaker 4>transition to emission free vehicles and that removes obviously some

0:03:55.960 --> 0:03:59.200
<v Speaker 4>of that regulatory burden, those regulatory costs that would have

0:03:59.240 --> 0:04:01.840
<v Speaker 4>come with that. There will still be some attempts at

0:04:01.960 --> 0:04:05.120
<v Speaker 4>hitting some climate target, so a carmakers will need to

0:04:05.160 --> 0:04:08.840
<v Speaker 4>compensate for that additional pollution by using low carbon or

0:04:08.880 --> 0:04:13.440
<v Speaker 4>renewable fuels or locally produced green steel, and the tailpipe

0:04:13.480 --> 0:04:16.320
<v Speaker 4>emissions will need to be reduced by ninety percent by

0:04:16.360 --> 0:04:19.279
<v Speaker 4>the middle of the next decade. And the previous score

0:04:19.400 --> 0:04:21.320
<v Speaker 4>was of one hundred percent, but I guess it's still

0:04:21.560 --> 0:04:24.919
<v Speaker 4>pretty high. But this is overall wink for carmakers that

0:04:24.960 --> 0:04:27.760
<v Speaker 4>had been really lobbying against those rules, and it's also

0:04:27.760 --> 0:04:30.400
<v Speaker 4>a signaled that there is this wider pullback from green

0:04:30.440 --> 0:04:33.800
<v Speaker 4>policies that we started, that got started in the US,

0:04:33.839 --> 0:04:35.880
<v Speaker 4>but that we can see now kind of spilling over

0:04:36.240 --> 0:04:38.280
<v Speaker 4>into Europe as well.

0:04:38.360 --> 0:04:42.400
<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

0:04:42.480 --> 0:04:45.080
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:45.120 --> 0:04:48.240
<v Speaker 2>making news on Wall Street and for the latest market

0:04:48.279 --> 0:04:52.760
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:52.839 --> 0:04:56.320
<v Speaker 2>Bloomberg dot com, and on applecarplay and Android Auto with

0:04:56.400 --> 0:04:57.880
<v Speaker 2>the Bloomberg Business app.