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 have a look at some of the stocks
Speaker 3: on the move today here in Europe. I'm Caroline Hepkitt
Speaker 3: and I'm joined by Bloomberg reporter of Chloe Malay. Good
Speaker 3: to see you. Chloe. On defense stocks up after President
Speaker 3: Trump has talked about NATO members should shoot down Russian
Speaker 3: planes that breach their airspace, so you know, quite combative
Speaker 3: stance when it comes to any incursions. Which names are
Speaker 3: moving in particular.
Speaker 1: Well all of them really, so rain Mettalivisi is the
Speaker 1: biggest name, the most recognizable one, and it was up
Speaker 1: this morning, but we have really got the entirety of
Speaker 1: their European defense sector moving higher. Leonardo and Italy for example,
Speaker 1: sub in the Nordic's Talis in France, by in the UK,
Speaker 1: and then also other names that are related to that
Speaker 1: defense sector without being a directly defense company, like companies
Speaker 1: like Empty Area for example, that makes actually engines for
Speaker 1: that sector. And that is, as you say, because of
Speaker 1: those remarks from Trump saying that NATO nations should shoot
Speaker 1: down those Russian jets that violate their airspace. There has
Speaker 1: been a series of incidents recently in which Russian aircraft
Speaker 1: have crossed into the airspace of NATO allies and that
Speaker 1: has been worrying the leaders of some of the smaller
Speaker 1: Eastern European nations, like Latvia for example. So Latvia's president
Speaker 1: called yesterday for a show of force from NATO in
Speaker 1: response to those Russian incursions. Another thing that Trump said
Speaker 1: is that Ukraine should be able to fight back and
Speaker 1: win back all of its territory in its original form,
Speaker 1: which is a much more sympathetic and optimistic statement on
Speaker 1: Ukraine's chances of winning than Trump has said before. So
Speaker 1: that is also a shift in narrative. So those two
Speaker 1: remarks really driven those defense names higher this morning. And
Speaker 1: you know, this is a sector that does well when
Speaker 1: tensions are high, and this is shown again today.
Speaker 3: Yeah, Saba is the top performer currently on the European market.
Speaker 3: You've also got Leonardo and Kinetic in their defense names
Speaker 3: top ten best performers. Turning to semiconductors next, There's been
Speaker 3: lots of news on this in terms of semiconductors erasing
Speaker 3: earlier losses. Why is that.
Speaker 1: Yeah, So we have some semiconductor companies this morning doing
Speaker 1: quite well, so not major moves on the kind of
Speaker 1: moves that we've seen in those defense names, but still
Speaker 1: still moving higher. So BE Semiconductor, for example in ASML
Speaker 1: were in positive territory today and that is because they
Speaker 1: were reacting to a very positive outlook for Micron Technology
Speaker 1: over in the US. So Micron makes computer memory chips
Speaker 1: and it provided a very upbeat outlook last night. It
Speaker 1: said that the AI rush, that AI boom was really
Speaker 1: amaze benefit for them, and so that is translating into
Speaker 1: a boost for some of those semiconductor equipment makers that
Speaker 1: are supplies to Micron. So that includes, for example, as
Speaker 1: I mentioned, BE Semi and ASML. This is quite good
Speaker 1: news because just yesterday we had actually a negative news
Speaker 1: flow for that sector, where we had ASM International cutting
Speaker 1: its outlook for the second half of the year due
Speaker 1: to weaker than expected demand. So it seems to have
Speaker 1: to be some contradictory sort of trends happening in that
Speaker 1: semiconductor market that is sending the shares kind of up
Speaker 1: and down depending on the day. So we'll have a
Speaker 1: look at what the third quarter ending season says about
Speaker 1: that outlook for all of those companies.
Speaker 3: Okay, so that's Semiconductors and to Travel on the Beach,
Speaker 3: How did there summer look? What are they expecting?
Speaker 1: Yeah, so on the Beach is a provider of package
Speaker 1: holidays for those who've not used it before, I haven't,
Speaker 1: but it is having a quite tough time this morning.
Speaker 1: The show is really plumited, and that is because their
Speaker 1: profit guidance, missed estimates are disappointed investors. So it said
Speaker 1: that I actually had a solid summer this summer, with
Speaker 1: bookings ahead of last year and then also ahead of
Speaker 1: that wider package holiday market. It also said that winter
Speaker 1: bookings were tracking ahead, so everything is fine there, but
Speaker 1: where things start to get a little bit tougher for
Speaker 1: them is actually for next summer. So it noted a
Speaker 1: trend towards later bookings, which was already mentioned by Jed two.
Speaker 1: They mentioned that people just go and buy their tickets
Speaker 1: more and more last minute, and that is obviously having
Speaker 1: an impact on that visibility for those companies, and it
Speaker 1: really seems to reflect that kind of lack of consumer
Speaker 1: confidence that doesn't seem to be getting any better.
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