Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today. Then in Europe, I'm Caroline Hepgar with
Speaker 3: Valerie Title and we're joined by Binberg reporter Chloe Malay.
Speaker 4: Good morning.
Speaker 3: So automation and robotics in focus. Firstly, Schneider Electric. There's
Speaker 3: been a bullish view from JP Morgan. Does the market
Speaker 3: agree It seems like they do so.
Speaker 5: Schneider Electric shares were up this morning, as well as
Speaker 5: Semen's Energy, so both of those companies were upgraded by
Speaker 5: JP Morgan analysts, with those analysts saying that they have
Speaker 5: a really bullish view on the European capital goods sector
Speaker 5: going into twenty twenty six. They said that the sector
Speaker 5: setup is the best that it has been for quite
Speaker 5: a few years, and that is thanks to the sector's
Speaker 5: exposure to areas where there's a lot of momentum. So
Speaker 5: of course we're thinking about a power generation grid, expansion
Speaker 5: data centers. Of course, with this AI story that is continuing,
Speaker 5: there's also improvement in European PMIS, and so that's also
Speaker 5: helping out higher metal prices and improving outlook in China.
Speaker 5: Also the boost from the German fiscal stimulus that is
Speaker 5: going to come through next year, so all of those
Speaker 5: factors are essentially reunited for a good twenty twenty six
Speaker 5: for that sector, and Schneider Electric and Semen's Energy are
Speaker 5: set to be better fitling from that.
Speaker 4: In particular, Semen's Energy, the expectator.
Speaker 5: Of the particularly high Daena list said that the earnings
Speaker 5: growth is casting shade on the rest of the coverage.
Speaker 5: So there's also good freak cash flow potential through to
Speaker 5: the twenty forties. So it is quite the price for
Speaker 5: Semen's Energy and therefore we're seeing those two companies rising
Speaker 5: this morning.
Speaker 1: Well, let's shift to the auto sector because in the
Speaker 1: US session yesterday some of these autos were flying on
Speaker 1: the back of some helps around deregulation when it comes
Speaker 1: to Trump administration. We're seeing a positive session here in
Speaker 1: Europe today, Mercedes on the back of an upgrade.
Speaker 5: Yeah, Mercedes also and also Porsie were always at Bank
Speaker 5: of America, so there's really a vote of confidence in
Speaker 5: that car making sector after what has been quite a
Speaker 5: few setbacks.
Speaker 4: Of course this year.
Speaker 5: We had of course US tariffs that are really weighing
Speaker 5: on that industry, but also really continued competition in China
Speaker 5: where those European car makers are really struggling to maintain
Speaker 5: market share against Chinese manufacturers, and then also slow down
Speaker 5: in the electric vehicle market. So there were a lot
Speaker 5: of different challenges for that industry this year. But it
Speaker 5: seems that things might be turning around for the sect
Speaker 5: and as you mentioned, we have those news of deregulation
Speaker 5: boosting those stocks as well. We've also now got more
Speaker 5: clarity on tariffs. We also have signs that ev demand
Speaker 5: for affordable models specifically is also picking up in Europe,
Speaker 5: so it seems to be doing better. The main problem
Speaker 5: that we're going to have next year for that sector
Speaker 5: is going to be those competitive pressures in China that
Speaker 5: are expected to steal be there and city analysts. Just
Speaker 5: yesterday I actually cut some earnings estimates for BMW and
Speaker 5: Mercedes in particular because of that continued weakness in China.
Speaker 4: So there's just one negative spot there.
Speaker 3: Okay. We're keeping it on on what's going on in
Speaker 3: European stocks and especially positive EU stocks st Micro. What
Speaker 3: is driving that progress?
Speaker 5: So sc Micro, but also other kind of chip names
Speaker 5: like ASM, etc. Up this morning on this kind of
Speaker 5: optimism around the AI trade at the moment. We had
Speaker 5: that going on as well yesterday with some upbeat commentary
Speaker 5: bullish commentary from companies like Marvel and Microchip. We also
Speaker 5: have some read across today from a camera con saying
Speaker 5: that it will triple the production of AI chips in
Speaker 5: twenty twenty six.
Speaker 4: So those chip stocks in Europe have.
Speaker 5: Gone kind of up and down throughout the last few
Speaker 5: weeks as fears of an AI bubble kind of come
Speaker 5: back and retreat and then resurface again. But right now
Speaker 5: there seems to be actually quite positive as sentiment. Perhaps
Speaker 5: it's only a matter of time for the market starts
Speaker 5: to worry again about how much money is being spent
Speaker 5: on those AI investments, but for now it's quite a
Speaker 5: bullish positive view and st micro is benefiting from that.
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