WEBVTT - Rheinmetall Up, Fresnillo Rises, ASML Rallies

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

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

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

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<v Speaker 3>Let's say a close to look at the stocks on

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

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<v Speaker 3>Lizzie Burden, and we're joined by Bloomberg reporter Chloe Malay.

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<v Speaker 3>Today we're looking at big defense stocks hire this morning.

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<v Speaker 3>Who are you tracking and amidst of course a broader.

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<v Speaker 1>Move Yeah, absolutely, This is all of course on the

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<v Speaker 1>back of the Venezuela situation, and we are seeing at

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<v Speaker 1>the defense industry having a really strong showing this morning

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<v Speaker 1>with with Ryan Mittau almost almost seven percent, but then

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<v Speaker 1>also really positive moves for Leonardo Hensalt, all of those

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<v Speaker 1>names also up this morning. We're seeing a heightened geopolitical tensions.

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<v Speaker 1>There's of course uncertainty about what the next moves from

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<v Speaker 1>Trump are going to be, in certainty of what about

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<v Speaker 1>what that means for Cuba and for Greenland, and all

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<v Speaker 1>of that turmoil is leading investors to kind of rush

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<v Speaker 1>towards those defense stocks, with the expectation being that all

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<v Speaker 1>of those tensions will lead to more defense as spending,

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<v Speaker 1>and that's of course great news for the companies that

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<v Speaker 1>make weapons. And this follows an enter twenty twenty five

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<v Speaker 1>for the defense industry that was kind of up and

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<v Speaker 1>down because there was obviously a lot of progress that

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<v Speaker 1>had been made on the piece deal in Ukraine and

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<v Speaker 1>that had sent shares lower across the board for that sector.

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<v Speaker 1>But now we're starting the year with kind of renewed

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<v Speaker 1>turbulence and that means that there's probably further to go

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<v Speaker 1>for Rye, Matausches and all of those peers as well.

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<v Speaker 3>And Chlorine perhaps on the same theme, but a different sector.

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<v Speaker 3>Drill down for us Why the miners are doing so well.

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<v Speaker 1>Yeah, it's a very similar dynamic here for minors where

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<v Speaker 1>we have got geopolitical tensions being always kind of positive

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<v Speaker 1>for those for names like glen Core, for as Neo, etc.

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<v Speaker 1>Because the kind of global turmoil that we see now

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<v Speaker 1>is pushing investors to parer money into safe haven's like

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<v Speaker 1>silver and gold, and that's in turn boosting the price

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<v Speaker 1>for precious metals and in turn, of course that's great

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<v Speaker 1>news for miners and for a company like Fresneo in particular.

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<v Speaker 1>We've been talking a lot lately about that company, because

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<v Speaker 1>it's in the really interesting position of being specifically a

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<v Speaker 1>gold and silver minor at a time when gold and

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<v Speaker 1>silver are rising very very strongly. Gold has just posted

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<v Speaker 1>its best annual performance since nineteen seventy nine. It hit

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<v Speaker 1>record after record in twenty twenty five, and now, of course,

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<v Speaker 1>with this Venezuela situation, we're seeing kind of another boost

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<v Speaker 1>for those precious metals, and that's a big boost as

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<v Speaker 1>well for Fresno. For context, the shares rose about four

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<v Speaker 1>hundred and fifty twenty twenty five for their company. So

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<v Speaker 1>let's see what the ceiling is actually there for for Reresnio.

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<v Speaker 3>Okay, well, the markets also seem to have some New

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<v Speaker 3>Year's resolutions. Maybe buy more chips is one.

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<v Speaker 1>Yeah, absolutely, and that's good news for ASML, which rose

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<v Speaker 1>that morning quite strongly as well to actually to a record,

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<v Speaker 1>and that's because of a couple of things. But first,

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<v Speaker 1>we had an upgrade from Bernstein analysts saying that ASML

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<v Speaker 1>will benefit a lot from a memory chip demand, which

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<v Speaker 1>is of course driven by AI. But ASML is also

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<v Speaker 1>riding the wave of quite a lot of enthusiasm in

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<v Speaker 1>general for tech and AI stocks. This morning. There's still

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<v Speaker 1>concerns about the AI bubble, but investors are still continuing

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<v Speaker 1>to put money into that AI theme. That we saw

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<v Speaker 1>TSMC shares in particular, for example, rallying massively after Goldman

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<v Speaker 1>Sex lifted the price target by thirty five percent for

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<v Speaker 1>that company, saying that AI will be really a multi

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<v Speaker 1>year growth engine for TSMC, and ASML is a big

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<v Speaker 1>supplier to that company. So there always tends to be

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<v Speaker 1>that kind of reader cross where if TSMC is in

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<v Speaker 1>a good spot and has kinds of years of growth ahead,

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<v Speaker 1>then that bodes really well for ASML, and so we

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<v Speaker 1>are seeing that reflected in those chests.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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