1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,440 --> 00:00:18,000 Speaker 1: Well, let's take a look at some stocks on the 5 00:00:18,000 --> 00:00:20,400 Speaker 1: move today in Europe. I'm Stephen Carroll and I'm joined 6 00:00:20,400 --> 00:00:23,439 Speaker 1: by Bloomberg reporter Chloe Malei Choch. Good morning. Let's start 7 00:00:23,440 --> 00:00:26,400 Speaker 1: with two companies that could form the world's biggest miner. 8 00:00:27,120 --> 00:00:29,880 Speaker 3: Yeah, Saria Tinto and Glencore are in talks to create 9 00:00:29,920 --> 00:00:34,040 Speaker 3: the world's largest mining company. This is coming a little 10 00:00:34,080 --> 00:00:37,560 Speaker 3: over a year after initial talks had actually failed between 11 00:00:37,560 --> 00:00:40,080 Speaker 3: those two companies, and it also comes at a really 12 00:00:40,120 --> 00:00:43,640 Speaker 3: interesting time in the mining industry where companies are wanting 13 00:00:43,720 --> 00:00:45,680 Speaker 3: to do more and more deals because they want to 14 00:00:45,680 --> 00:00:48,640 Speaker 3: gain more and more access to copper. So copper is 15 00:00:48,720 --> 00:00:51,400 Speaker 3: metal that's really really in demand at the moment because 16 00:00:51,680 --> 00:00:54,960 Speaker 3: it's really really essential to the energy transition to the 17 00:00:55,000 --> 00:00:57,880 Speaker 3: AI boom as well, and it has been hitting a 18 00:00:58,000 --> 00:01:01,800 Speaker 3: new record highs lately because they are growing concerns about 19 00:01:01,840 --> 00:01:04,920 Speaker 3: whether or not there will be enough supply. So this 20 00:01:05,000 --> 00:01:08,840 Speaker 3: potential deal between glen Core and Reintindo would mean creating 21 00:01:08,959 --> 00:01:11,559 Speaker 3: this kind of copper mining giant. But they are big 22 00:01:11,640 --> 00:01:14,680 Speaker 3: hurdles to consider as well, and that might be explaining 23 00:01:14,720 --> 00:01:18,480 Speaker 3: why we had some weakness in Rio's shares actually this morning, 24 00:01:18,520 --> 00:01:22,160 Speaker 3: even though glen Core shares arose quite impressively. So the 25 00:01:22,200 --> 00:01:25,240 Speaker 3: three kind of big challenges to think about are the 26 00:01:25,640 --> 00:01:28,520 Speaker 3: core of business from glen Core, so that's the business 27 00:01:28,560 --> 00:01:32,160 Speaker 3: that's really important for glen Corbert Reatinto has actually exited 28 00:01:32,200 --> 00:01:35,640 Speaker 3: its coal business to refocus on iron ore and copper, 29 00:01:35,720 --> 00:01:39,560 Speaker 3: so there's a little bit of a difference there. There's 30 00:01:39,600 --> 00:01:42,200 Speaker 3: also the need to get regulatory clearance across more than 31 00:01:42,240 --> 00:01:45,800 Speaker 3: eight jurisdictions, and then there's also the problem of Rio 32 00:01:46,000 --> 00:01:49,880 Speaker 3: having a dual listed company structure, which is really complicating 33 00:01:49,960 --> 00:01:52,960 Speaker 3: at the potential for an all share transaction. So there's 34 00:01:53,160 --> 00:01:55,240 Speaker 3: a few things to consider here, some details to be 35 00:01:55,640 --> 00:01:58,440 Speaker 3: ironed out, and analysts have said that also the ultimate 36 00:01:58,480 --> 00:02:02,160 Speaker 3: size of the deal be a little bit smaller than 37 00:02:02,200 --> 00:02:05,720 Speaker 3: expected because this all asset combination that's being talked about 38 00:02:06,120 --> 00:02:09,440 Speaker 3: appears a little bit more unlikely because of those challenges. 39 00:02:09,520 --> 00:02:12,400 Speaker 3: So there's a lot more developments to keep an eye on. 40 00:02:13,160 --> 00:02:15,359 Speaker 1: Yeah, indeed, and the share price movement of interest to 41 00:02:15,639 --> 00:02:18,600 Speaker 1: gancre oup a eight point six percent, Riotento down one 42 00:02:18,600 --> 00:02:22,000 Speaker 1: and a half percent in London. Let's turn next to 43 00:02:22,760 --> 00:02:26,640 Speaker 1: some interesting upgrades that have come from BMP. 44 00:02:27,400 --> 00:02:30,000 Speaker 3: Yeah, so BNP a Paraba has been kind of been 45 00:02:30,080 --> 00:02:34,400 Speaker 3: investors in analysts good graces lately, so JP Morgan upgraded 46 00:02:34,480 --> 00:02:37,440 Speaker 3: the company today, saying it is likely to see improved 47 00:02:37,520 --> 00:02:41,079 Speaker 3: profitability and saying also that there are fewer concerns now 48 00:02:41,120 --> 00:02:44,880 Speaker 3: about the capital level at the French bank and that's 49 00:02:45,040 --> 00:02:49,000 Speaker 3: company that needs that capital to cover some litigation risks. 50 00:02:49,040 --> 00:02:51,680 Speaker 3: And JP Morgan analyst said that this is all thanks 51 00:02:51,680 --> 00:02:54,679 Speaker 3: to recent management initiatives and that it's really time to 52 00:02:54,760 --> 00:02:57,480 Speaker 3: kind of get in on what they called the cheapest 53 00:02:57,480 --> 00:03:00,880 Speaker 3: bank in Europe. And this is also be bnp second upgrade 54 00:03:01,000 --> 00:03:04,840 Speaker 3: this week. We also had UBS upgrading the stock just 55 00:03:04,919 --> 00:03:07,480 Speaker 3: a couple of days ago, saying that the evaluation was 56 00:03:07,520 --> 00:03:10,359 Speaker 3: really cheap at the moment and also noted the same 57 00:03:10,400 --> 00:03:14,119 Speaker 3: as JP Morgan analysts that the capital situation was improving 58 00:03:14,160 --> 00:03:18,080 Speaker 3: for BNP. So those two upgrades come a quite interesting 59 00:03:18,120 --> 00:03:20,800 Speaker 3: time for the bank, given that it has just lost 60 00:03:20,840 --> 00:03:23,400 Speaker 3: a bid to throw out a verdict against it which 61 00:03:23,480 --> 00:03:27,160 Speaker 3: essentially accused it of funding a regime in Sedan that 62 00:03:27,240 --> 00:03:30,960 Speaker 3: committed human rights abuses, and that means that now BNP 63 00:03:31,120 --> 00:03:33,840 Speaker 3: is actually more likely to have to pay a big settlements, 64 00:03:33,880 --> 00:03:36,960 Speaker 3: which is where that stronger capital comes in. But it 65 00:03:37,000 --> 00:03:41,400 Speaker 3: seems that from analyst perspective, those litigation risks are not 66 00:03:41,800 --> 00:03:44,040 Speaker 3: they're not they're not going to be too bad for BNP, 67 00:03:44,160 --> 00:03:46,800 Speaker 3: and that that profitability is going to be much better 68 00:03:46,840 --> 00:03:48,280 Speaker 3: and therefore we've got those upgrades. 69 00:03:49,200 --> 00:03:51,720 Speaker 1: Okay, Well, staying in France, let's turn to Loreal. Let's 70 00:03:51,760 --> 00:03:55,119 Speaker 1: shairs are five percent higher this morning, investors deciding they're 71 00:03:55,120 --> 00:03:55,400 Speaker 1: worth it. 72 00:03:56,000 --> 00:04:00,480 Speaker 3: Yes, absolutely, and that's because Ubs upgraded Loreal this morning, 73 00:04:00,560 --> 00:04:04,000 Speaker 3: saying that the sales are expected to grow quite strongly 74 00:04:04,400 --> 00:04:07,200 Speaker 3: going forward. And this is a company that has seen 75 00:04:07,360 --> 00:04:09,160 Speaker 3: quite a lot of ups and downs over the last 76 00:04:09,240 --> 00:04:12,760 Speaker 3: year over twenty twenty five. It's part of the cosmetics industry, 77 00:04:12,800 --> 00:04:15,000 Speaker 3: of course, which obviously had to deal with a few 78 00:04:15,080 --> 00:04:18,919 Speaker 3: challenges last year, including tariffs, but also really quite muted 79 00:04:19,279 --> 00:04:23,200 Speaker 3: consumer confidence. But analysts seem a lot more optimistic about 80 00:04:23,240 --> 00:04:26,960 Speaker 3: Loreal's prospects for this year, and Bloomberg Intelligence as well, 81 00:04:27,000 --> 00:04:30,960 Speaker 3: for example, said that the company's expansion in emerging markets 82 00:04:31,000 --> 00:04:34,120 Speaker 3: and a lot of product innovation as well would be 83 00:04:34,320 --> 00:04:37,400 Speaker 3: a big boost for twenty twenty six, and also saying 84 00:04:37,440 --> 00:04:40,480 Speaker 3: that there's going to be a renewed focus on affordability 85 00:04:40,880 --> 00:04:44,160 Speaker 3: going forward because of course the consumer confidence a problem 86 00:04:44,200 --> 00:04:46,400 Speaker 3: hasn't really gone away and will continue for this year. 87 00:04:46,839 --> 00:04:49,960 Speaker 3: But it seems that analysts and investors are quite optimistic 88 00:04:50,080 --> 00:04:52,640 Speaker 3: that Loreal will be able to stand out in this 89 00:04:52,760 --> 00:04:53,760 Speaker 3: industry this year. 90 00:04:55,120 --> 00:04:59,120 Speaker 2: The Stock Mover's Report from Bloomberg Radio. 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