1 00:00:02,520 --> 00:00:07,360 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 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,400 --> 00:00:18,040 Speaker 3: Well, let's take a look at some stocks on the 5 00:00:18,040 --> 00:00:20,960 Speaker 3: move today in Europe. I'm Stephen Carroll with Caroline Hepcker, 6 00:00:21,000 --> 00:00:24,400 Speaker 3: and we're joined by Bloomberg's Breaking News editor Louise Moon. Luise, 7 00:00:24,480 --> 00:00:27,440 Speaker 3: let's start then in the financial sector and some news 8 00:00:27,440 --> 00:00:28,400 Speaker 3: from HSBC. 9 00:00:29,720 --> 00:00:31,920 Speaker 1: Yeah, well it is in terms of kind of the 10 00:00:31,960 --> 00:00:35,880 Speaker 1: biggest stock move in London today, HSBC is leading those 11 00:00:35,920 --> 00:00:38,720 Speaker 1: declines on the foot Sea one hundred. There's an interesting 12 00:00:38,800 --> 00:00:43,040 Speaker 1: note from JP Morgan analysts saying that HSBC and Standard 13 00:00:43,120 --> 00:00:46,400 Speaker 1: Chartered are the most exposed to the Middle East, to 14 00:00:46,400 --> 00:00:48,680 Speaker 1: the war in the Middle East. So if HSBC the 15 00:00:48,680 --> 00:00:51,599 Speaker 1: Middle East represents four percent of pre tax profit and 16 00:00:51,680 --> 00:00:55,960 Speaker 1: for Standard Chartered twelve percent, so both shares heavily down. 17 00:00:56,000 --> 00:00:59,600 Speaker 1: It also said that, you know, while other European banks 18 00:00:59,640 --> 00:01:04,400 Speaker 1: have more limited exposure. Of course, the war is weighing 19 00:01:04,800 --> 00:01:07,160 Speaker 1: on the whole sector. Particularly day you look across Europe 20 00:01:07,200 --> 00:01:11,800 Speaker 1: and banking is really weighing on indexes across Europe. This 21 00:01:11,920 --> 00:01:15,520 Speaker 1: is you know, as of course, oil is surging, concerns 22 00:01:15,600 --> 00:01:18,880 Speaker 1: that the war could disrupt energy markets for a prolonged period, 23 00:01:19,280 --> 00:01:22,440 Speaker 1: and that's driving those moves across the broader market. So 24 00:01:22,880 --> 00:01:25,400 Speaker 1: worries that that will kind of reconder inflation and weigh 25 00:01:25,440 --> 00:01:28,279 Speaker 1: on economic growth, and that's really weighing on the banking sector. 26 00:01:28,319 --> 00:01:31,919 Speaker 1: But yeah, HSBC in particular leading those clients in London 27 00:01:32,360 --> 00:01:34,479 Speaker 1: on the back of that note and those wider concerns. 28 00:01:35,319 --> 00:01:40,399 Speaker 1: So European inequities down today, but defense stocks are moving, 29 00:01:41,200 --> 00:01:46,760 Speaker 1: Leonardo in particular, a major move higher. What's behind that, Yeah, 30 00:01:46,840 --> 00:01:49,920 Speaker 1: Leonardo shar is hitting our record this morning. So they've 31 00:01:49,960 --> 00:01:52,000 Speaker 1: had their kind of own individual news. They set some 32 00:01:52,040 --> 00:01:56,600 Speaker 1: new targets for twenty thirty, which analysts have described as bullish. 33 00:01:57,000 --> 00:02:00,720 Speaker 1: In particular, they're large kind of expectations for their order intake. 34 00:02:01,240 --> 00:02:04,600 Speaker 1: They've laid out a new plan. So essentially, Leonardo has 35 00:02:04,640 --> 00:02:07,360 Speaker 1: had a few years of focusing on cutting down debt, 36 00:02:07,800 --> 00:02:12,320 Speaker 1: improving their cash flow, and now they're turning to what's forward, 37 00:02:12,440 --> 00:02:16,960 Speaker 1: So they're putting at the core of their aims going forward. Essentially, 38 00:02:16,960 --> 00:02:20,720 Speaker 1: they're putting defense electronics, which are at a higher margin. 39 00:02:20,800 --> 00:02:25,240 Speaker 1: Defense electronics and network defense, so not just kind of 40 00:02:25,280 --> 00:02:33,480 Speaker 1: standalone platforms, but networking everything together as an offering. That is, yeah, 41 00:02:33,520 --> 00:02:35,919 Speaker 1: as I say, that's that's what they're going to focus 42 00:02:36,000 --> 00:02:39,359 Speaker 1: on going forward, and in particular, defense electronics has been 43 00:02:39,720 --> 00:02:44,600 Speaker 1: quite quite central to what's being used in the Middle East, 44 00:02:45,160 --> 00:02:48,120 Speaker 1: a lot of those systems. So this is part of Leonardo, 45 00:02:48,160 --> 00:02:49,920 Speaker 1: you know, taking a bigger piece of that pie of 46 00:02:50,240 --> 00:02:53,640 Speaker 1: European military spending, which has been on the rise for 47 00:02:53,720 --> 00:02:55,400 Speaker 1: the past couple of years. So their shares you know, 48 00:02:55,520 --> 00:02:58,040 Speaker 1: up almost forty percent over the pasty and as I say, 49 00:02:58,080 --> 00:03:00,640 Speaker 1: hitting a record today on those new aims and those 50 00:03:00,760 --> 00:03:01,440 Speaker 1: new targets. 51 00:03:02,080 --> 00:03:05,360 Speaker 3: Okay, so that's from Leonardo and the travel from on 52 00:03:05,480 --> 00:03:09,200 Speaker 3: the Beach. Their share is also responding to the travel disruption. 53 00:03:10,600 --> 00:03:13,960 Speaker 1: Indeed, yes, absolutely, you know, slumping at the open down 54 00:03:14,120 --> 00:03:17,360 Speaker 1: fourteen percent to the lower since late twenty twenty fourth 55 00:03:17,400 --> 00:03:20,079 Speaker 1: on the beach they've suspended their guidance on the back 56 00:03:20,120 --> 00:03:23,400 Speaker 1: of the Middle East conflict. So they're saying that while 57 00:03:23,440 --> 00:03:26,400 Speaker 1: they have kind of limited exposure in particular to the 58 00:03:26,400 --> 00:03:29,600 Speaker 1: Middle East, they've seen a significant slowdown in their words, 59 00:03:29,600 --> 00:03:33,040 Speaker 1: in demand and there's a lot of ancesty of course 60 00:03:33,080 --> 00:03:35,680 Speaker 1: as to how long this will last. So they've seen 61 00:03:35,720 --> 00:03:39,520 Speaker 1: a big slow down in demand for places like Turkey, Greece, Cyprus, Egypt. 62 00:03:39,920 --> 00:03:43,920 Speaker 1: They named those four in particular. And of course this 63 00:03:44,080 --> 00:03:46,640 Speaker 1: is as you know, we be speaking about in the 64 00:03:46,680 --> 00:03:49,360 Speaker 1: past few days, huge disruption to the travel industry. And 65 00:03:49,400 --> 00:03:52,680 Speaker 1: then if you look at airlines across the boards still 66 00:03:52,720 --> 00:03:55,600 Speaker 1: down today. Ig was Air Tui. But yeah, on the 67 00:03:55,600 --> 00:03:58,040 Speaker 1: beach to spending guidance or on the back of that conflict. 68 00:03:58,600 --> 00:04:02,040 Speaker 1: They have kept the medium turn goals intact, but but 69 00:04:02,200 --> 00:04:03,640 Speaker 1: they are seeing that flow down into pond. 70 00:04:04,680 --> 00:04:08,920 Speaker 2: The Stockmovers report from Bloomberg Radio. 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