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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market. Harnessing the power of Bloomberg Data.

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Speaker 1: Let's take a look at some of the stocks on

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Speaker 1: the move today in Europe. I'm Stephen Carroll. Were joined

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Speaker 1: by Bloomberg's Breaking News editor Chloe Melee for more. Chloe,

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Speaker 1: good morning. Let's start with Rank this morning, their shares

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Speaker 1: are up. What's going on?

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Speaker 3: Yeah, so both Rank and Hansolt, which are two defense companies,

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Speaker 3: got upgraded by City Analysts two in neutral ratings, not

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Speaker 3: quite by just yet Burn Improvement, and therefore the shares

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Speaker 3: did go up this morning. City said that those two

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Speaker 3: will really benefit from a rise in defense spending in

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Speaker 3: Germany in particular, so Hensolt has around sixty percent of

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Speaker 3: its sales in Germany and Rank has twenty five percent

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Speaker 3: sales exposure to the country, so they're quite well positioned there.

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Speaker 3: And City Analysts mentioned that although shares continue to be

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Speaker 3: a little bit volatile and quite news flow driven, they

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Speaker 3: no longer appear to be fundamentally overvalued. And this bit

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Speaker 3: about defense shares being kind of news flow driven is

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Speaker 3: quite interesting because we have seen over the last few days,

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Speaker 3: defense stocks really go up or down constantly as news

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Speaker 3: of talks between Trump and Putin and then Trump and

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Speaker 3: Zelensky came out. Whenever the narrative turned to more of

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Speaker 3: the likelihood of peace in Ukraine, they went down and

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Speaker 3: then vice versa. So we'll probably continue to see that

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Speaker 3: as those talks kind of evolve. But while we wait

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Speaker 3: for the outcome of all of this city, does thing

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Speaker 3: that rank and hanceuled are in good shape?

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Speaker 1: Okay? Yeah, and rank shares up one and a half

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Speaker 1: percent in Germany at the moment. We're going to go

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Speaker 1: to Poland next and the banking sector and focus they're

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Speaker 1: PKO among the big followers.

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Speaker 3: Yeah, So we saw a lot of weakness across all

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Speaker 3: of those Polish banks of PKO as you mentioned, but

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Speaker 3: also Santande, Polska and Alior as well, and that is

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Speaker 3: because of brand new taxes on banks that were announced

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Speaker 3: by the Polish government, and that is to plug a

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Speaker 3: massive fiscal deficit. So for a bit of context, Poland's

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Speaker 3: deficit is the second widest in the EU after Romania.

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Speaker 3: So the government definitely has has that sense of urgency

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Speaker 3: when it comes to plugging that fiscal hole, and the

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Speaker 3: Finance Ministry proposed in increased in taxes for banks to

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Speaker 3: thirty percent from next year, and that is way up

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Speaker 3: from nineteen percent currently. And obviously banks were down on

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Speaker 3: the back of that today, but it's actually not the

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Speaker 3: only sector that's been kind of singled out for potential

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Speaker 3: tax rises. The ministry also plans to hike rates on

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Speaker 3: alcoholic drinks, and that is to reduce the negative impacts

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Speaker 3: of their overuse.

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Speaker 1: Okay, yeah, Pigo shares down around eight percent to the moment,

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Speaker 1: santander O Poska down by three point seven percent. Let's

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Speaker 1: go to the Netherlands next. Axo Noobel shares up by

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Speaker 1: the most in four months. Yeah, Acxi Nobel so Dutch

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Speaker 1: paint maker.

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Speaker 3: And this morning, the reason why the shares are up

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Speaker 3: is because activist investor Servian Capital acquired a three percent

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Speaker 3: stake in the company. And that is the first time

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Speaker 3: that this activist investor has a holding in the Netherlands.

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Speaker 3: And this is coming as Axo Noobel is undergoing a

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Speaker 3: kind of massive strategy turnaround at the moment that is

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Speaker 3: aimed at reducing costs but then also boosting competitiveness in

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Speaker 3: that kind of chemicals sector. It is cutting two thousand,

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Speaker 3: two hundred jobs by the end of this year, and

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Speaker 3: it has also closed several European sites to kind of

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Speaker 3: boost that competitiveness. Actually said that it looks forward to

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Speaker 3: serving Capital's constructive involvement and support, so we'll see, we'll

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Speaker 3: see how that goes, and so definitely something to keep

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Speaker 3: in mind after the latest result from Exonobil last month

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Speaker 3: where it was quite disappointing. Really it warned on the

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Speaker 3: caution around tires and the sales miss expectations. So we'll

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Speaker 3: see how that strategy turned around with Soviet Capital goes.

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Speaker 2: The Stock Mover's Report from Bloomberg Radio. Check back with

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Speaker 2: us throughout the day for the latest roundup of companies

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