1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:16,120 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,280 --> 00:00:17,919 Speaker 3: Let's take a look at some of the stocks on 5 00:00:17,960 --> 00:00:20,400 Speaker 3: the move today. Then in Europe, I'm Caroline Hepgar with 6 00:00:20,520 --> 00:00:23,560 Speaker 3: Valerie Title and we're joined by Binberg reporter Chloe Malay. 7 00:00:23,640 --> 00:00:24,279 Speaker 4: Good morning. 8 00:00:24,920 --> 00:00:30,200 Speaker 3: So automation and robotics in focus. Firstly, Schneider Electric. There's 9 00:00:30,240 --> 00:00:33,600 Speaker 3: been a bullish view from JP Morgan. Does the market 10 00:00:33,680 --> 00:00:35,960 Speaker 3: agree It seems like they do so. 11 00:00:36,120 --> 00:00:38,519 Speaker 5: Schneider Electric shares were up this morning, as well as 12 00:00:38,520 --> 00:00:41,879 Speaker 5: Semen's Energy, so both of those companies were upgraded by 13 00:00:41,960 --> 00:00:44,720 Speaker 5: JP Morgan analysts, with those analysts saying that they have 14 00:00:44,760 --> 00:00:48,080 Speaker 5: a really bullish view on the European capital goods sector 15 00:00:48,159 --> 00:00:50,920 Speaker 5: going into twenty twenty six. They said that the sector 16 00:00:51,040 --> 00:00:53,400 Speaker 5: setup is the best that it has been for quite 17 00:00:53,440 --> 00:00:56,840 Speaker 5: a few years, and that is thanks to the sector's 18 00:00:56,880 --> 00:00:59,560 Speaker 5: exposure to areas where there's a lot of momentum. So 19 00:00:59,600 --> 00:01:02,920 Speaker 5: of course we're thinking about a power generation grid, expansion 20 00:01:03,400 --> 00:01:07,640 Speaker 5: data centers. Of course, with this AI story that is continuing, 21 00:01:08,120 --> 00:01:11,720 Speaker 5: there's also improvement in European PMIS, and so that's also 22 00:01:11,760 --> 00:01:16,119 Speaker 5: helping out higher metal prices and improving outlook in China. 23 00:01:16,480 --> 00:01:18,840 Speaker 5: Also the boost from the German fiscal stimulus that is 24 00:01:18,880 --> 00:01:21,040 Speaker 5: going to come through next year, so all of those 25 00:01:21,040 --> 00:01:24,360 Speaker 5: factors are essentially reunited for a good twenty twenty six 26 00:01:24,600 --> 00:01:27,800 Speaker 5: for that sector, and Schneider Electric and Semen's Energy are 27 00:01:27,840 --> 00:01:29,200 Speaker 5: set to be better fitling from that. 28 00:01:29,560 --> 00:01:33,080 Speaker 4: In particular, Semen's Energy, the expectator. 29 00:01:32,600 --> 00:01:35,920 Speaker 5: Of the particularly high Daena list said that the earnings 30 00:01:35,959 --> 00:01:38,720 Speaker 5: growth is casting shade on the rest of the coverage. 31 00:01:39,400 --> 00:01:43,319 Speaker 5: So there's also good freak cash flow potential through to 32 00:01:43,360 --> 00:01:45,640 Speaker 5: the twenty forties. So it is quite the price for 33 00:01:45,640 --> 00:01:49,280 Speaker 5: Semen's Energy and therefore we're seeing those two companies rising 34 00:01:49,320 --> 00:01:49,800 Speaker 5: this morning. 35 00:01:49,920 --> 00:01:51,520 Speaker 1: Well, let's shift to the auto sector because in the 36 00:01:51,600 --> 00:01:54,400 Speaker 1: US session yesterday some of these autos were flying on 37 00:01:54,480 --> 00:01:57,320 Speaker 1: the back of some helps around deregulation when it comes 38 00:01:57,360 --> 00:02:00,320 Speaker 1: to Trump administration. We're seeing a positive session here in 39 00:02:00,360 --> 00:02:02,840 Speaker 1: Europe today, Mercedes on the back of an upgrade. 40 00:02:03,000 --> 00:02:07,120 Speaker 5: Yeah, Mercedes also and also Porsie were always at Bank 41 00:02:07,160 --> 00:02:10,040 Speaker 5: of America, so there's really a vote of confidence in 42 00:02:10,080 --> 00:02:12,600 Speaker 5: that car making sector after what has been quite a 43 00:02:12,600 --> 00:02:13,280 Speaker 5: few setbacks. 44 00:02:13,280 --> 00:02:14,000 Speaker 4: Of course this year. 45 00:02:14,040 --> 00:02:16,680 Speaker 5: We had of course US tariffs that are really weighing 46 00:02:16,720 --> 00:02:20,640 Speaker 5: on that industry, but also really continued competition in China 47 00:02:20,760 --> 00:02:24,360 Speaker 5: where those European car makers are really struggling to maintain 48 00:02:24,440 --> 00:02:29,000 Speaker 5: market share against Chinese manufacturers, and then also slow down 49 00:02:29,040 --> 00:02:31,440 Speaker 5: in the electric vehicle market. So there were a lot 50 00:02:31,480 --> 00:02:34,320 Speaker 5: of different challenges for that industry this year. But it 51 00:02:34,320 --> 00:02:37,320 Speaker 5: seems that things might be turning around for the sect 52 00:02:37,360 --> 00:02:39,600 Speaker 5: and as you mentioned, we have those news of deregulation 53 00:02:39,880 --> 00:02:42,600 Speaker 5: boosting those stocks as well. We've also now got more 54 00:02:42,600 --> 00:02:46,080 Speaker 5: clarity on tariffs. We also have signs that ev demand 55 00:02:46,320 --> 00:02:50,000 Speaker 5: for affordable models specifically is also picking up in Europe, 56 00:02:50,120 --> 00:02:53,560 Speaker 5: so it seems to be doing better. The main problem 57 00:02:53,560 --> 00:02:55,480 Speaker 5: that we're going to have next year for that sector 58 00:02:55,600 --> 00:02:58,440 Speaker 5: is going to be those competitive pressures in China that 59 00:02:58,480 --> 00:03:01,960 Speaker 5: are expected to steal be there and city analysts. Just 60 00:03:02,040 --> 00:03:05,080 Speaker 5: yesterday I actually cut some earnings estimates for BMW and 61 00:03:05,120 --> 00:03:08,560 Speaker 5: Mercedes in particular because of that continued weakness in China. 62 00:03:08,600 --> 00:03:11,000 Speaker 4: So there's just one negative spot there. 63 00:03:11,840 --> 00:03:15,640 Speaker 3: Okay. We're keeping it on on what's going on in 64 00:03:15,639 --> 00:03:20,560 Speaker 3: European stocks and especially positive EU stocks st Micro. What 65 00:03:20,760 --> 00:03:22,679 Speaker 3: is driving that progress? 66 00:03:23,320 --> 00:03:25,800 Speaker 5: So sc Micro, but also other kind of chip names 67 00:03:25,840 --> 00:03:28,960 Speaker 5: like ASM, etc. Up this morning on this kind of 68 00:03:29,040 --> 00:03:32,200 Speaker 5: optimism around the AI trade at the moment. We had 69 00:03:32,320 --> 00:03:35,840 Speaker 5: that going on as well yesterday with some upbeat commentary 70 00:03:35,880 --> 00:03:39,720 Speaker 5: bullish commentary from companies like Marvel and Microchip. We also 71 00:03:39,760 --> 00:03:42,760 Speaker 5: have some read across today from a camera con saying 72 00:03:42,760 --> 00:03:45,280 Speaker 5: that it will triple the production of AI chips in 73 00:03:45,320 --> 00:03:46,200 Speaker 5: twenty twenty six. 74 00:03:46,280 --> 00:03:48,160 Speaker 4: So those chip stocks in Europe have. 75 00:03:48,120 --> 00:03:50,400 Speaker 5: Gone kind of up and down throughout the last few 76 00:03:50,440 --> 00:03:52,840 Speaker 5: weeks as fears of an AI bubble kind of come 77 00:03:52,880 --> 00:03:55,600 Speaker 5: back and retreat and then resurface again. But right now 78 00:03:55,600 --> 00:03:58,760 Speaker 5: there seems to be actually quite positive as sentiment. Perhaps 79 00:03:58,800 --> 00:04:00,960 Speaker 5: it's only a matter of time for the market starts 80 00:04:01,000 --> 00:04:03,480 Speaker 5: to worry again about how much money is being spent 81 00:04:03,560 --> 00:04:06,080 Speaker 5: on those AI investments, but for now it's quite a 82 00:04:06,120 --> 00:04:09,120 Speaker 5: bullish positive view and st micro is benefiting from that. 83 00:04:09,960 --> 00:04:14,000 Speaker 2: The Stock Moover's report from Bloomberg Radio. Check back with 84 00:04:14,080 --> 00:04:16,640 Speaker 2: us throughout the day for the latest roundup of companies 85 00:04:16,720 --> 00:04:19,840 Speaker 2: making news on Wall Street and for the latest market 86 00:04:19,839 --> 00:04:24,320 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, 87 00:04:24,400 --> 00:04:27,919 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 88 00:04:27,960 --> 00:04:29,480 Speaker 2: the Bloomberg Business App.