WEBVTT - HSBC Down, On The Beach Falls, Leonardo Gains 

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.400 --> 0:00:18.040
<v Speaker 3>Well, let's take a look at some stocks on the

0:00:18.040 --> 0:00:20.960
<v Speaker 3>move today in Europe. I'm Stephen Carroll with Caroline Hepcker,

0:00:21.000 --> 0:00:24.400
<v Speaker 3>and we're joined by Bloomberg's Breaking News editor Louise Moon. Luise,

0:00:24.480 --> 0:00:27.440
<v Speaker 3>let's start then in the financial sector and some news

0:00:27.440 --> 0:00:28.400
<v Speaker 3>from HSBC.

0:00:29.720 --> 0:00:31.920
<v Speaker 1>Yeah, well it is in terms of kind of the

0:00:31.960 --> 0:00:35.880
<v Speaker 1>biggest stock move in London today, HSBC is leading those

0:00:35.920 --> 0:00:38.720
<v Speaker 1>declines on the foot Sea one hundred. There's an interesting

0:00:38.800 --> 0:00:43.040
<v Speaker 1>note from JP Morgan analysts saying that HSBC and Standard

0:00:43.120 --> 0:00:46.400
<v Speaker 1>Chartered are the most exposed to the Middle East, to

0:00:46.400 --> 0:00:48.680
<v Speaker 1>the war in the Middle East. So if HSBC the

0:00:48.680 --> 0:00:51.599
<v Speaker 1>Middle East represents four percent of pre tax profit and

0:00:51.680 --> 0:00:55.960
<v Speaker 1>for Standard Chartered twelve percent, so both shares heavily down.

0:00:56.000 --> 0:00:59.600
<v Speaker 1>It also said that, you know, while other European banks

0:00:59.640 --> 0:01:04.400
<v Speaker 1>have more limited exposure. Of course, the war is weighing

0:01:04.800 --> 0:01:07.160
<v Speaker 1>on the whole sector. Particularly day you look across Europe

0:01:07.200 --> 0:01:11.800
<v Speaker 1>and banking is really weighing on indexes across Europe. This

0:01:11.920 --> 0:01:15.520
<v Speaker 1>is you know, as of course, oil is surging, concerns

0:01:15.600 --> 0:01:18.880
<v Speaker 1>that the war could disrupt energy markets for a prolonged period,

0:01:19.280 --> 0:01:22.440
<v Speaker 1>and that's driving those moves across the broader market. So

0:01:22.880 --> 0:01:25.400
<v Speaker 1>worries that that will kind of reconder inflation and weigh

0:01:25.440 --> 0:01:28.279
<v Speaker 1>on economic growth, and that's really weighing on the banking sector.

0:01:28.319 --> 0:01:31.919
<v Speaker 1>But yeah, HSBC in particular leading those clients in London

0:01:32.360 --> 0:01:34.479
<v Speaker 1>on the back of that note and those wider concerns.

0:01:35.319 --> 0:01:40.399
<v Speaker 1>So European inequities down today, but defense stocks are moving,

0:01:41.200 --> 0:01:46.760
<v Speaker 1>Leonardo in particular, a major move higher. What's behind that, Yeah,

0:01:46.840 --> 0:01:49.920
<v Speaker 1>Leonardo shar is hitting our record this morning. So they've

0:01:49.960 --> 0:01:52.000
<v Speaker 1>had their kind of own individual news. They set some

0:01:52.040 --> 0:01:56.600
<v Speaker 1>new targets for twenty thirty, which analysts have described as bullish.

0:01:57.000 --> 0:02:00.720
<v Speaker 1>In particular, they're large kind of expectations for their order intake.

0:02:01.240 --> 0:02:04.600
<v Speaker 1>They've laid out a new plan. So essentially, Leonardo has

0:02:04.640 --> 0:02:07.360
<v Speaker 1>had a few years of focusing on cutting down debt,

0:02:07.800 --> 0:02:12.320
<v Speaker 1>improving their cash flow, and now they're turning to what's forward,

0:02:12.440 --> 0:02:16.960
<v Speaker 1>So they're putting at the core of their aims going forward. Essentially,

0:02:16.960 --> 0:02:20.720
<v Speaker 1>they're putting defense electronics, which are at a higher margin.

0:02:20.800 --> 0:02:25.240
<v Speaker 1>Defense electronics and network defense, so not just kind of

0:02:25.280 --> 0:02:33.480
<v Speaker 1>standalone platforms, but networking everything together as an offering. That is, yeah,

0:02:33.520 --> 0:02:35.919
<v Speaker 1>as I say, that's that's what they're going to focus

0:02:36.000 --> 0:02:39.359
<v Speaker 1>on going forward, and in particular, defense electronics has been

0:02:39.720 --> 0:02:44.600
<v Speaker 1>quite quite central to what's being used in the Middle East,

0:02:45.160 --> 0:02:48.120
<v Speaker 1>a lot of those systems. So this is part of Leonardo,

0:02:48.160 --> 0:02:49.920
<v Speaker 1>you know, taking a bigger piece of that pie of

0:02:50.240 --> 0:02:53.640
<v Speaker 1>European military spending, which has been on the rise for

0:02:53.720 --> 0:02:55.400
<v Speaker 1>the past couple of years. So their shares you know,

0:02:55.520 --> 0:02:58.040
<v Speaker 1>up almost forty percent over the pasty and as I say,

0:02:58.080 --> 0:03:00.640
<v Speaker 1>hitting a record today on those new aims and those

0:03:00.760 --> 0:03:01.440
<v Speaker 1>new targets.

0:03:02.080 --> 0:03:05.360
<v Speaker 3>Okay, so that's from Leonardo and the travel from on

0:03:05.480 --> 0:03:09.200
<v Speaker 3>the Beach. Their share is also responding to the travel disruption.

0:03:10.600 --> 0:03:13.960
<v Speaker 1>Indeed, yes, absolutely, you know, slumping at the open down

0:03:14.120 --> 0:03:17.360
<v Speaker 1>fourteen percent to the lower since late twenty twenty fourth

0:03:17.400 --> 0:03:20.079
<v Speaker 1>on the beach they've suspended their guidance on the back

0:03:20.120 --> 0:03:23.400
<v Speaker 1>of the Middle East conflict. So they're saying that while

0:03:23.440 --> 0:03:26.400
<v Speaker 1>they have kind of limited exposure in particular to the

0:03:26.400 --> 0:03:29.600
<v Speaker 1>Middle East, they've seen a significant slowdown in their words,

0:03:29.600 --> 0:03:33.040
<v Speaker 1>in demand and there's a lot of ancesty of course

0:03:33.080 --> 0:03:35.680
<v Speaker 1>as to how long this will last. So they've seen

0:03:35.720 --> 0:03:39.520
<v Speaker 1>a big slow down in demand for places like Turkey, Greece, Cyprus, Egypt.

0:03:39.920 --> 0:03:43.920
<v Speaker 1>They named those four in particular. And of course this

0:03:44.080 --> 0:03:46.640
<v Speaker 1>is as you know, we be speaking about in the

0:03:46.680 --> 0:03:49.360
<v Speaker 1>past few days, huge disruption to the travel industry. And

0:03:49.400 --> 0:03:52.680
<v Speaker 1>then if you look at airlines across the boards still

0:03:52.720 --> 0:03:55.600
<v Speaker 1>down today. Ig was Air Tui. But yeah, on the

0:03:55.600 --> 0:03:58.040
<v Speaker 1>beach to spending guidance or on the back of that conflict.

0:03:58.600 --> 0:04:02.040
<v Speaker 1>They have kept the medium turn goals intact, but but

0:04:02.200 --> 0:04:03.640
<v Speaker 1>they are seeing that flow down into pond.

0:04:04.680 --> 0:04:08.920
<v Speaker 2>The Stockmovers report from Bloomberg Radio. Check back with us

0:04:08.920 --> 0:04:11.760
<v Speaker 2>throughout the day for the latest roundup of companies making

0:04:11.800 --> 0:04:15.440
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:04:15.640 --> 0:04:19.640
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:19.680 --> 0:04:22.760
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:22.800 --> 0:04:24.159
<v Speaker 2>Bloomberg Business app.