WEBVTT - Rheinmetall Rises, BE Semiconductor Up, On The Beach Declines

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Now let's have a look at some of the stocks

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<v Speaker 3>on the move today here in Europe. I'm Caroline Hepkitt

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<v Speaker 3>and I'm joined by Bloomberg reporter of Chloe Malay. Good

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<v Speaker 3>to see you. Chloe. On defense stocks up after President

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<v Speaker 3>Trump has talked about NATO members should shoot down Russian

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<v Speaker 3>planes that breach their airspace, so you know, quite combative

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<v Speaker 3>stance when it comes to any incursions. Which names are

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<v Speaker 3>moving in particular.

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<v Speaker 1>Well all of them really, so rain Mettalivisi is the

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<v Speaker 1>biggest name, the most recognizable one, and it was up

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<v Speaker 1>this morning, but we have really got the entirety of

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<v Speaker 1>their European defense sector moving higher. Leonardo and Italy for example,

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<v Speaker 1>sub in the Nordic's Talis in France, by in the UK,

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<v Speaker 1>and then also other names that are related to that

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<v Speaker 1>defense sector without being a directly defense company, like companies

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<v Speaker 1>like Empty Area for example, that makes actually engines for

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<v Speaker 1>that sector. And that is, as you say, because of

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<v Speaker 1>those remarks from Trump saying that NATO nations should shoot

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<v Speaker 1>down those Russian jets that violate their airspace. There has

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<v Speaker 1>been a series of incidents recently in which Russian aircraft

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<v Speaker 1>have crossed into the airspace of NATO allies and that

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<v Speaker 1>has been worrying the leaders of some of the smaller

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<v Speaker 1>Eastern European nations, like Latvia for example. So Latvia's president

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<v Speaker 1>called yesterday for a show of force from NATO in

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<v Speaker 1>response to those Russian incursions. Another thing that Trump said

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<v Speaker 1>is that Ukraine should be able to fight back and

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<v Speaker 1>win back all of its territory in its original form,

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<v Speaker 1>which is a much more sympathetic and optimistic statement on

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<v Speaker 1>Ukraine's chances of winning than Trump has said before. So

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<v Speaker 1>that is also a shift in narrative. So those two

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<v Speaker 1>remarks really driven those defense names higher this morning. And

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<v Speaker 1>you know, this is a sector that does well when

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<v Speaker 1>tensions are high, and this is shown again today.

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<v Speaker 3>Yeah, Saba is the top performer currently on the European market.

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<v Speaker 3>You've also got Leonardo and Kinetic in their defense names

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<v Speaker 3>top ten best performers. Turning to semiconductors next, There's been

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<v Speaker 3>lots of news on this in terms of semiconductors erasing

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<v Speaker 3>earlier losses. Why is that.

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<v Speaker 1>Yeah, So we have some semiconductor companies this morning doing

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<v Speaker 1>quite well, so not major moves on the kind of

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<v Speaker 1>moves that we've seen in those defense names, but still

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<v Speaker 1>still moving higher. So BE Semiconductor, for example in ASML

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<v Speaker 1>were in positive territory today and that is because they

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<v Speaker 1>were reacting to a very positive outlook for Micron Technology

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<v Speaker 1>over in the US. So Micron makes computer memory chips

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<v Speaker 1>and it provided a very upbeat outlook last night. It

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<v Speaker 1>said that the AI rush, that AI boom was really

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<v Speaker 1>amaze benefit for them, and so that is translating into

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<v Speaker 1>a boost for some of those semiconductor equipment makers that

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<v Speaker 1>are supplies to Micron. So that includes, for example, as

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<v Speaker 1>I mentioned, BE Semi and ASML. This is quite good

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<v Speaker 1>news because just yesterday we had actually a negative news

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<v Speaker 1>flow for that sector, where we had ASM International cutting

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<v Speaker 1>its outlook for the second half of the year due

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<v Speaker 1>to weaker than expected demand. So it seems to have

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<v Speaker 1>to be some contradictory sort of trends happening in that

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<v Speaker 1>semiconductor market that is sending the shares kind of up

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<v Speaker 1>and down depending on the day. So we'll have a

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<v Speaker 1>look at what the third quarter ending season says about

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<v Speaker 1>that outlook for all of those companies.

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<v Speaker 3>Okay, so that's Semiconductors and to Travel on the Beach,

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<v Speaker 3>How did there summer look? What are they expecting?

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<v Speaker 1>Yeah, so on the Beach is a provider of package

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<v Speaker 1>holidays for those who've not used it before, I haven't,

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<v Speaker 1>but it is having a quite tough time this morning.

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<v Speaker 1>The show is really plumited, and that is because their

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<v Speaker 1>profit guidance, missed estimates are disappointed investors. So it said

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<v Speaker 1>that I actually had a solid summer this summer, with

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<v Speaker 1>bookings ahead of last year and then also ahead of

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<v Speaker 1>that wider package holiday market. It also said that winter

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<v Speaker 1>bookings were tracking ahead, so everything is fine there, but

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<v Speaker 1>where things start to get a little bit tougher for

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<v Speaker 1>them is actually for next summer. So it noted a

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<v Speaker 1>trend towards later bookings, which was already mentioned by Jed two.

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<v Speaker 1>They mentioned that people just go and buy their tickets

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<v Speaker 1>more and more last minute, and that is obviously having

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<v Speaker 1>an impact on that visibility for those companies, and it

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<v Speaker 1>really seems to reflect that kind of lack of consumer

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<v Speaker 1>confidence that doesn't seem to be getting any better.

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<v Speaker 2>The stock movers report from Bloomberg Radio. Check back with

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