WEBVTT - BHP Gains, Danone Tariffs, Harbour Energy Deal

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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>Let's talk a little bit about these stocks on the

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<v Speaker 3>move today here in Europe. I'm Caroline Hepget and I'm

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<v Speaker 3>joined by Breaking News editor Louis Moon. Louis good to

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<v Speaker 3>speak to you. Let's drill down into some of the

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<v Speaker 3>gains that we're seeing in the mining space this morning,

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<v Speaker 3>even though the overall European market is down.

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<v Speaker 1>Indeed, yes, so mining stocks are really gaining from this

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<v Speaker 1>rallying commodities that we're seeing. So gold, silver, copper all

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<v Speaker 1>hitting record highs. You know, copper's approaching twelve thousand dollars

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<v Speaker 1>a ton, and mining stocks are gaining on the back

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<v Speaker 1>of this, particularly those with quite significant exposures copper. So

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<v Speaker 1>the likes of in London, BHP, Ria, Tinto, Anglo American

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<v Speaker 1>all higher on the back of this. And if you

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<v Speaker 1>look at the foot ye hundred, you know, mining stocks

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<v Speaker 1>as a whole are leading the index, so really rallying

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<v Speaker 1>on the back of that commodity's gains.

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<v Speaker 3>Okay, so that's interesting. We're also milking you for stocks news.

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<v Speaker 3>You're looking at EU dairy giants.

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<v Speaker 1>Why well, so so China has imposed duties on certain

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<v Speaker 1>dairy products that are being imported from Europe. So these

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<v Speaker 1>duties are up to forty two point seven percent, so

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<v Speaker 1>pretty high. And that's after they add a probe into

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<v Speaker 1>the sector and found that. They say that they found that,

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<v Speaker 1>you know, some of these dairy products were subsidized. They're

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<v Speaker 1>the ones that are being imported from Europe. So this

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<v Speaker 1>is going to be imposed from tomorrow and it's kind

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<v Speaker 1>of the latest a in a bit of a tip

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<v Speaker 1>tap trade dispute between China and the EUS. So if

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<v Speaker 1>you look at the Chinese side of things, their related

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<v Speaker 1>stocks are doing well on the back of this news.

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<v Speaker 1>But obviously if you look at the likes of dan

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<v Speaker 1>On Nesle in Europe, both are very exposed to the

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<v Speaker 1>Chinese market. Both down on the back of this. So

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<v Speaker 1>dan On more so about one point five percent last

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<v Speaker 1>time I checked just just a minute ago, and Nesle

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<v Speaker 1>also down almost one percent as well, So both into

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<v Speaker 1>the red on the back of those those duties that

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<v Speaker 1>will be imposed from China.

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<v Speaker 3>As off tomorrow. Yeah, there's been a real tip for

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<v Speaker 3>tat hasn't there between the EU and China. VU in

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<v Speaker 3>October imposing taras or electric vehicles from China as high

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<v Speaker 3>as forty five percent. So now there's dairy tariffs going

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<v Speaker 3>the other way. Okay. We also mentioned the other the

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<v Speaker 3>other commodities that are gaining, and that is oil. And

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<v Speaker 3>you have Harbor, which is a big UK oil company

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<v Speaker 3>looking abroad. Tell us a bit about that story.

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<v Speaker 2>It is Yees.

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<v Speaker 1>So it's one of the largest oil and gas companies,

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<v Speaker 1>one of the largest producers in the UK North Seat,

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<v Speaker 1>so a big player on this side of the pond.

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<v Speaker 1>They announced a big deal this morning. So they're buying

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<v Speaker 1>a company that's called Lelog Exploration. That's for three point

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<v Speaker 1>two billion US dollars, so two point seven billion will

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<v Speaker 1>be in cash and then five hundred million in voting shares.

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<v Speaker 1>So this company is it's a oil and gas company

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<v Speaker 1>in the US golf of Mexico. So this, as you say,

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<v Speaker 1>this is hard our energy expanding more abroad. They've been

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<v Speaker 1>adding operations abroad. You know, as the North Sea goes

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<v Speaker 1>into decline, there's high taxes, high windfill texas from the

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<v Speaker 1>UK government. There's been a lot of consolidation in the space,

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<v Speaker 1>and they've been establishing more units away from that, so

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<v Speaker 1>the likes of Norway and Argentina as well. So this

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<v Speaker 1>is their entry into the US Golf of Mexico. So

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<v Speaker 1>that's expected to complete in the first quarter of next

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<v Speaker 1>year of twenty twenty six. So, I mean, on the Facebook,

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<v Speaker 1>it looks quite positive, and there was an also a

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<v Speaker 1>note from Blombugo Intelligence saying, you know, there's strong strategic

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<v Speaker 1>rationale for this. It delivers a bit of a portfolio rebalancing,

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<v Speaker 1>as I kind of mentioned, towards the Gulf of Mexico,

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<v Speaker 1>which offers higher margins. You know, it reduces exposure to

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<v Speaker 1>the UK, so all of those factors. But if you

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<v Speaker 1>look at their stock, it was actually down on the news,

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<v Speaker 1>down about seven percent into the red, and traders are

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<v Speaker 1>saying this could be to do with the size of

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<v Speaker 1>the debt they're taking on to finance this deal. So

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<v Speaker 1>we'll be watching for for any more details or you know,

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<v Speaker 1>how the stock continues to react from that. But it's

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<v Speaker 1>a yeah, a play from harbor energy out of the UK,

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<v Speaker 1>pushing and diversifying the portfolio more.

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