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: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll with Caroline Hepcker,
Speaker 3: and we're joined by Bloomberg's Breaking News editor Louise Moon. Luise,
Speaker 3: let's start then in the financial sector and some news
Speaker 3: from HSBC.
Speaker 1: Yeah, well it is in terms of kind of the
Speaker 1: biggest stock move in London today, HSBC is leading those
Speaker 1: declines on the foot Sea one hundred. There's an interesting
Speaker 1: note from JP Morgan analysts saying that HSBC and Standard
Speaker 1: Chartered are the most exposed to the Middle East, to
Speaker 1: the war in the Middle East. So if HSBC the
Speaker 1: Middle East represents four percent of pre tax profit and
Speaker 1: for Standard Chartered twelve percent, so both shares heavily down.
Speaker 1: It also said that, you know, while other European banks
Speaker 1: have more limited exposure. Of course, the war is weighing
Speaker 1: on the whole sector. Particularly day you look across Europe
Speaker 1: and banking is really weighing on indexes across Europe. This
Speaker 1: is you know, as of course, oil is surging, concerns
Speaker 1: that the war could disrupt energy markets for a prolonged period,
Speaker 1: and that's driving those moves across the broader market. So
Speaker 1: worries that that will kind of reconder inflation and weigh
Speaker 1: on economic growth, and that's really weighing on the banking sector.
Speaker 1: But yeah, HSBC in particular leading those clients in London
Speaker 1: on the back of that note and those wider concerns.
Speaker 1: So European inequities down today, but defense stocks are moving,
Speaker 1: Leonardo in particular, a major move higher. What's behind that, Yeah,
Speaker 1: Leonardo shar is hitting our record this morning. So they've
Speaker 1: had their kind of own individual news. They set some
Speaker 1: new targets for twenty thirty, which analysts have described as bullish.
Speaker 1: In particular, they're large kind of expectations for their order intake.
Speaker 1: They've laid out a new plan. So essentially, Leonardo has
Speaker 1: had a few years of focusing on cutting down debt,
Speaker 1: improving their cash flow, and now they're turning to what's forward,
Speaker 1: So they're putting at the core of their aims going forward. Essentially,
Speaker 1: they're putting defense electronics, which are at a higher margin.
Speaker 1: Defense electronics and network defense, so not just kind of
Speaker 1: standalone platforms, but networking everything together as an offering. That is, yeah,
Speaker 1: as I say, that's that's what they're going to focus
Speaker 1: on going forward, and in particular, defense electronics has been
Speaker 1: quite quite central to what's being used in the Middle East,
Speaker 1: a lot of those systems. So this is part of Leonardo,
Speaker 1: you know, taking a bigger piece of that pie of
Speaker 1: European military spending, which has been on the rise for
Speaker 1: the past couple of years. So their shares you know,
Speaker 1: up almost forty percent over the pasty and as I say,
Speaker 1: hitting a record today on those new aims and those
Speaker 1: new targets.
Speaker 3: Okay, so that's from Leonardo and the travel from on
Speaker 3: the Beach. Their share is also responding to the travel disruption.
Speaker 1: Indeed, yes, absolutely, you know, slumping at the open down
Speaker 1: fourteen percent to the lower since late twenty twenty fourth
Speaker 1: on the beach they've suspended their guidance on the back
Speaker 1: of the Middle East conflict. So they're saying that while
Speaker 1: they have kind of limited exposure in particular to the
Speaker 1: Middle East, they've seen a significant slowdown in their words,
Speaker 1: in demand and there's a lot of ancesty of course
Speaker 1: as to how long this will last. So they've seen
Speaker 1: a big slow down in demand for places like Turkey, Greece, Cyprus, Egypt.
Speaker 1: They named those four in particular. And of course this
Speaker 1: is as you know, we be speaking about in the
Speaker 1: past few days, huge disruption to the travel industry. And
Speaker 1: then if you look at airlines across the boards still
Speaker 1: down today. Ig was Air Tui. But yeah, on the
Speaker 1: beach to spending guidance or on the back of that conflict.
Speaker 1: They have kept the medium turn goals intact, but but
Speaker 1: they are seeing that flow down into pond.
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