1 00:00:02,520 --> 00:00:09,040 Speaker 1: Bloomberg Audio Studios podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,840 --> 00:00:19,960 Speaker 3: Let's look at some stocks on the move today here 5 00:00:19,960 --> 00:00:23,200 Speaker 3: in Europe. I'm Caroline Hepgat alongside Tom McKenzie and we're 6 00:00:23,239 --> 00:00:26,880 Speaker 3: joined by Bloomberg's Equities Report. To Sam Unsted. Good morning, 7 00:00:26,960 --> 00:00:30,319 Speaker 3: It's a really big day for the defense industry. We 8 00:00:30,720 --> 00:00:34,159 Speaker 3: got over the weekend and today we get the big 9 00:00:34,280 --> 00:00:38,720 Speaker 3: strategic defense review from the government. So how they're going 10 00:00:38,800 --> 00:00:41,880 Speaker 3: to address the kind of hollowing out of the defense 11 00:00:41,960 --> 00:00:45,839 Speaker 3: industry in the UK. How are arms stocks reacting in Britain. 12 00:00:46,159 --> 00:00:49,080 Speaker 4: So there are two stories actually to think about with 13 00:00:49,120 --> 00:00:52,080 Speaker 4: defense today. So we've had strikes from Ukraine, strikes from Russia. 14 00:00:52,120 --> 00:00:55,160 Speaker 4: There are peace talks next week. Not a great lead 15 00:00:55,200 --> 00:00:56,840 Speaker 4: into peace talks over the course of the week. So 16 00:00:56,840 --> 00:00:59,280 Speaker 4: actually defense stocks are kind of up across all of Europe. 17 00:00:59,760 --> 00:01:03,520 Speaker 4: The case specifically extra spending, particularly on submarines. That's the 18 00:01:03,560 --> 00:01:06,039 Speaker 4: one to note today because the big mover today is 19 00:01:06,120 --> 00:01:10,280 Speaker 4: Babcock and Babcock, a defense and engineering outsourcing company look 20 00:01:10,280 --> 00:01:12,640 Speaker 4: after the submarine fleet for the UK, so it's a 21 00:01:12,680 --> 00:01:15,759 Speaker 4: very direct benefit to them. But across the board, it's 22 00:01:15,840 --> 00:01:18,920 Speaker 4: the both the UK and the sort of broader geopolitical 23 00:01:18,959 --> 00:01:21,040 Speaker 4: tensions lifting defense stocks all over Europe. 24 00:01:21,160 --> 00:01:23,360 Speaker 1: Yeah, the top gainers, the top gainers so far on 25 00:01:23,400 --> 00:01:25,679 Speaker 1: the Stocks hundred are those German names and as you say, 26 00:01:25,760 --> 00:01:28,080 Speaker 1: UK names as well in terms of Henshalt Rank and 27 00:01:28,240 --> 00:01:31,760 Speaker 1: sarb Over in Sweden as well on those stories. Meanwhile, 28 00:01:31,760 --> 00:01:33,760 Speaker 1: we do have the geopolitics in terms of the trade 29 00:01:33,800 --> 00:01:36,320 Speaker 1: tensions is back in focus. We're talking about the fact 30 00:01:36,319 --> 00:01:38,360 Speaker 1: that the US kind of came out and blamed China 31 00:01:38,400 --> 00:01:40,319 Speaker 1: for walking back on that deal. They came to Engineera. 32 00:01:40,360 --> 00:01:42,000 Speaker 1: Then China came out today and said, actually it's the 33 00:01:42,040 --> 00:01:44,640 Speaker 1: US who's been walking back. It's not a great backdrop. 34 00:01:44,640 --> 00:01:46,680 Speaker 1: President Trump still still seems to think that you can 35 00:01:46,680 --> 00:01:49,200 Speaker 1: get President shooting being on the phone. It hasn't happened yet. 36 00:01:49,960 --> 00:01:53,320 Speaker 1: This is definitely having a dampling effect on the equity markets. 37 00:01:53,400 --> 00:01:55,840 Speaker 4: Yeah, definitely, And this is something that's sort of happening 38 00:01:56,440 --> 00:01:59,080 Speaker 4: most days at the moment. I kind of pulled back 39 00:01:59,120 --> 00:02:00,920 Speaker 4: in one direction, pulled the other way. I think what 40 00:02:00,960 --> 00:02:03,360 Speaker 4: you're kind of seeing is negotiations that maybe in the 41 00:02:03,360 --> 00:02:05,400 Speaker 4: past would have taken place behind closed doors. Are kind 42 00:02:05,400 --> 00:02:08,080 Speaker 4: of all happening in the open, and you're seeing these 43 00:02:08,160 --> 00:02:10,560 Speaker 4: kind of go back and forth quite quite significantly. We're 44 00:02:10,600 --> 00:02:13,040 Speaker 4: just mentioning in Germany defense stocks doing very well. At 45 00:02:13,040 --> 00:02:15,200 Speaker 4: the other end of it, auto's not doing so well. 46 00:02:15,200 --> 00:02:18,679 Speaker 4: They tend to get hit very hard by any trade tensions, 47 00:02:18,800 --> 00:02:21,080 Speaker 4: and specifically when it comes to US China trade tensions. 48 00:02:21,120 --> 00:02:22,679 Speaker 4: If we look over to France as well and the 49 00:02:22,720 --> 00:02:25,519 Speaker 4: cut Quran, big drag there from luxury good stocks too, 50 00:02:25,560 --> 00:02:28,280 Speaker 4: who also tend to get hit a little bit when 51 00:02:28,280 --> 00:02:30,160 Speaker 4: there is a tension between the US and China. 52 00:02:30,440 --> 00:02:35,200 Speaker 3: Yeah. Absolutely. Also in terms of the color politics driving 53 00:02:35,280 --> 00:02:39,640 Speaker 3: the market story, it's the fact that the nationalist candidate 54 00:02:39,960 --> 00:02:43,400 Speaker 3: has won Poland's presidency this morning and actually quite a 55 00:02:43,400 --> 00:02:47,320 Speaker 3: negative impact on some individual Polish stock, especially the Polish 56 00:02:47,360 --> 00:02:48,120 Speaker 3: banks today. 57 00:02:48,600 --> 00:02:50,840 Speaker 4: Yeah, well, Polish banks, I mean really across the board, 58 00:02:51,360 --> 00:02:54,280 Speaker 4: you know, for Polish stocks, Polish bonds as well. Polish 59 00:02:54,280 --> 00:02:56,080 Speaker 4: stocks have been doing very well this year. They were 60 00:02:56,280 --> 00:03:00,639 Speaker 4: one of the best performing AS indexes globally up to 61 00:03:00,680 --> 00:03:02,720 Speaker 4: the last couple of weeks. Most of that has been 62 00:03:02,760 --> 00:03:06,200 Speaker 4: driven by them getting closer and closer to better EU 63 00:03:06,240 --> 00:03:08,920 Speaker 4: integration or having a stronger role within the EU. With 64 00:03:09,040 --> 00:03:11,960 Speaker 4: that comes funding from the block as well that now 65 00:03:12,080 --> 00:03:15,919 Speaker 4: is put at risk by this. So this candidate winning 66 00:03:16,000 --> 00:03:19,720 Speaker 4: is a very very close election that creates extra uncertainty 67 00:03:19,720 --> 00:03:22,800 Speaker 4: about what may come beyond this. So if indeed Donald 68 00:03:22,840 --> 00:03:25,920 Speaker 4: Tusk has to call a vote of confidence in the government, 69 00:03:26,200 --> 00:03:29,400 Speaker 4: the uncertainty is enormous because this was so close and 70 00:03:29,480 --> 00:03:33,040 Speaker 4: so really on a knife edge. So all of a sudden, 71 00:03:33,240 --> 00:03:36,320 Speaker 4: assets that have been benefiting enormously from a very clear 72 00:03:36,360 --> 00:03:40,400 Speaker 4: story of closer EU integration and you know, just generally 73 00:03:40,480 --> 00:03:43,680 Speaker 4: positive funding for the country and the economy that's been upended, 74 00:03:43,720 --> 00:03:46,800 Speaker 4: and you are seeing that come through, particularly with Polish Bank, 75 00:03:46,960 --> 00:03:49,720 Speaker 4: which of course are very closely related to the economy. 76 00:03:49,760 --> 00:03:55,000 Speaker 2: Now the Stock Movers podcast from Bloomberg Radio. Check back 77 00:03:55,040 --> 00:03:58,000 Speaker 2: with us throughout today for the latest roundup of companies 78 00:03:58,040 --> 00:04:02,000 Speaker 2: making news on Wall Street. 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