WEBVTT - ASML Slumps, IAG Dips, Cerillion Down

0:00:02.540 --> 0:00:04.229
<v Speaker 1>Bloomberg Audio Studios.

0:00:04.690 --> 0:00:11.130
<v Speaker 2>Podcasts. Radio. News. The Stock Movers Report. Your roundup of

0:00:11.210 --> 0:00:14.780
<v Speaker 2>companies making moves in the stock market. Harnessing the power

0:00:14.840 --> 0:00:15.880
<v Speaker 2>of Bloomberg data.

0:00:16.680 --> 0:00:18.279
<v Speaker 1>Let's take a look at some of the stocks on

0:00:18.320 --> 0:00:19.480
<v Speaker 1>the move today here in Europe.

0:00:19.520 --> 0:00:21.270
<v Speaker 3>I'm Caroline Hepke with Stephen Carroll.

0:00:21.739 --> 0:00:24.750
<v Speaker 1>And we're joined by Bloomberg's breaking news editor, Louise Moon.

0:00:24.790 --> 0:00:25.450
<v Speaker 1>Good morning.

0:00:26.030 --> 0:00:29.810
<v Speaker 3>So, there is a lot of angst about AI and

0:00:29.830 --> 0:00:32.210
<v Speaker 3>that is really back in markets.

0:00:32.270 --> 0:00:34.550
<v Speaker 1>How is it affecting Europe and the UK?

0:00:35.080 --> 0:00:40.580
<v Speaker 4>Yeah, it's essentially pulling down tech stocks across the board, really. So,

0:00:40.600 --> 0:00:43.620
<v Speaker 4>if you look at There's chip makers, ASML, down over

0:00:43.640 --> 0:00:48.190
<v Speaker 4>about 5%. You've got Infineon and Nokia also related to

0:00:48.229 --> 0:00:51.630
<v Speaker 4>that story, down almost 8%. Obviously, as you say on

0:00:51.650 --> 0:00:55.690
<v Speaker 4>the back of the ANX, that proposal by major AI

0:00:55.730 --> 0:00:58.920
<v Speaker 4>company bosses to slow down the pace of model development

0:00:59.180 --> 0:01:02.100
<v Speaker 4>after a number of security breaches, so, you know, backed by...

0:01:02.660 --> 0:01:05.200
<v Speaker 4>Sam Altman, Elon Musk, and a number of other big names.

0:01:05.260 --> 0:01:08.980
<v Speaker 4>And we're seeing this played out globally. So, the similar

0:01:09.000 --> 0:01:10.610
<v Speaker 4>happened in Asia trading.

0:01:11.030 --> 0:01:11.250
<v Speaker 3>U.S.

0:01:11.290 --> 0:01:12.870
<v Speaker 1>Futures are down on the back of that also.

0:01:12.950 --> 0:01:16.530
<v Speaker 4>And then, yeah, as I say, happening across Europe, across

0:01:16.670 --> 0:01:18.970
<v Speaker 4>all kind of related tech stocks essentially.

0:01:20.209 --> 0:01:22.410
<v Speaker 1>Yeah, certainly one to continue to watch as well into

0:01:22.430 --> 0:01:22.830
<v Speaker 1>the U.S.

0:01:22.850 --> 0:01:24.030
<v Speaker 2>Session later on as well.

0:01:24.190 --> 0:01:28.740
<v Speaker 1>Next, though, to airlines and IAG. What's the news from them? So,

0:01:28.780 --> 0:01:31.720
<v Speaker 1>this is on the back of oil, really, today. So,

0:01:31.840 --> 0:01:32.520
<v Speaker 1>oil higher.

0:01:32.580 --> 0:01:36.480
<v Speaker 4>Saudi Arabia closed a major crude pipeline after attack.

0:01:36.500 --> 0:01:38.929
<v Speaker 1>So, that's disrupted a route that's.

0:01:38.790 --> 0:01:41.610
<v Speaker 4>Been quite key during the Iran war to bypass the

0:01:41.630 --> 0:01:43.950
<v Speaker 4>Strait of Hormuz. And there isn't much indication of or

0:01:44.010 --> 0:01:46.850
<v Speaker 4>any indication of when those operations will resume. So, that's

0:01:46.930 --> 0:01:51.160
<v Speaker 4>pulling down airlines. Obviously, if oil rises, that's higher fuel

0:01:51.180 --> 0:01:53.080
<v Speaker 4>costs for the airlines. And they're very sensitive to that,

0:01:53.140 --> 0:01:55.420
<v Speaker 4>as we've been seeing since the Iran war. So, you've

0:01:55.440 --> 0:01:59.820
<v Speaker 4>got IAG, for example, as you mentioned, down over 3%.

0:01:59.820 --> 0:02:02.419
<v Speaker 4>But we're really seeing it across the board as well. So, Ryanair, TUI,

0:02:02.480 --> 0:02:06.860
<v Speaker 4>also down those both over about 2%. So, it's not

0:02:07.710 --> 0:02:10.530
<v Speaker 4>almost a news story. As I say, we've been seeing

0:02:10.550 --> 0:02:11.950
<v Speaker 4>this through the war. But it does just show how

0:02:11.990 --> 0:02:15.050
<v Speaker 4>sensitive they are on the back of those oil price moves.

0:02:15.490 --> 0:02:16.380
<v Speaker 1>Yeah, interesting.

0:02:16.460 --> 0:02:20.840
<v Speaker 3>And then lastly, Carillion, which is a software company here

0:02:20.900 --> 0:02:24.549
<v Speaker 3>in the UK. not to be confused with the failed

0:02:24.610 --> 0:02:28.769
<v Speaker 3>construction giant Carillion, which, yeah, very, very close spelling.

0:02:29.370 --> 0:02:30.650
<v Speaker 1>Yes, a very different story.

0:02:31.330 --> 0:02:36.190
<v Speaker 4>But shares in Carillion, they've dropped as much as 21%

0:02:36.190 --> 0:02:39.050
<v Speaker 4>as their most ever this morning. That's after they said

0:02:39.090 --> 0:02:41.770
<v Speaker 4>that four-year revenue will be below expectations. Essentially, they've had

0:02:41.889 --> 0:02:45.130
<v Speaker 4>a lot of delays to customer orders. So, analysts are

0:02:45.169 --> 0:02:49.350
<v Speaker 4>saying that that confirms recent market caution. That shows it

0:02:49.400 --> 0:02:51.200
<v Speaker 4>was justified. If you look back at their share price,

0:02:52.260 --> 0:02:55.399
<v Speaker 4>pretty much fallen year to date um so that that

0:02:55.460 --> 0:02:59.190
<v Speaker 4>caution playing through um but they did say in a

0:02:59.990 --> 0:03:03.230
<v Speaker 4>slightly more positive indicator that the pipeline going forward is

0:03:03.810 --> 0:03:06.470
<v Speaker 4>still relatively strong and it's not alone in customer delays

0:03:06.550 --> 0:03:09.040
<v Speaker 4>but that is still weighing on shares as i say

0:03:09.080 --> 0:03:10.060
<v Speaker 4>dropped as much as about 21.

0:03:10.020 --> 0:03:16.109
<v Speaker 2>Percent The Stock Movers Report from Bloomberg Radio. Check back

0:03:16.150 --> 0:03:18.370
<v Speaker 2>with us throughout the day for the latest roundup of

0:03:18.450 --> 0:03:21.680
<v Speaker 2>companies making news on Wall Street. And for the latest

0:03:21.780 --> 0:03:27.740
<v Speaker 2>market-moving headlines, listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com,

0:03:27.960 --> 0:03:30.919
<v Speaker 2>and on Apple CarPlay and Android Auto with the Bloomberg

0:03:30.980 --> 0:03:31.620
<v Speaker 2>Business app.