WEBVTT - ASML Falls, Shell Up, Saab Gains 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move in Europe. I'm Stephen Carroll and I'm joined by

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<v Speaker 1>Bloomberg reporter Chloe Melee for more. Chloe, good morning. Good.

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<v Speaker 1>Let's start with a full for ASML talk us through

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<v Speaker 1>the move that we're seeing in TEG.

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<v Speaker 3>Yeah, so this is very much this read across from

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<v Speaker 3>these Samsung earnings that really disappointed investors. So the results

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<v Speaker 3>from Samsung were seen as something that was really going

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<v Speaker 3>to sort of set the tone for the AI trade

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<v Speaker 3>going forward, maybe say something about the durability of this

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<v Speaker 3>AI driven rally. And unfortunately for Samsung and for the

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<v Speaker 3>rest of that tech sector, the results really disappointed investors,

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<v Speaker 3>very much failed to impress. And it is worth noting

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<v Speaker 3>that the results themselves were not actually that bad. In fact,

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<v Speaker 3>they're very good. But this is more about very very

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<v Speaker 3>elevated expectations rather than kind of any problem with the

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<v Speaker 3>fundamentals themselves. And so we saw the Samsung shares plunging

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<v Speaker 3>and we are seeing now that weakness spilling over into Europe,

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<v Speaker 3>and so chip names like asml B Semiconductor or Infinian

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<v Speaker 3>are all struggling today. More broadly, the rest of that

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<v Speaker 3>kind of AI related sector with names like Semen's Energy

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<v Speaker 3>or Schneider Electric, all of those companies that provide the

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<v Speaker 3>equipment around the air infrastructure, they're all also in the

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<v Speaker 3>red today. So we have got very much this sector

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<v Speaker 3>wide move and this is all in the context of

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<v Speaker 3>the air trade seeing a lot of ups and downs

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<v Speaker 3>over the last few weeks, the main concern really being

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<v Speaker 3>around whether those massive investments into AI, those sky high

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<v Speaker 3>evaluations are justified, and today the mood is one of

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<v Speaker 3>caution and one of concern around those questions very much.

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<v Speaker 1>So okay, so that's on the tech sector. Let's go

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<v Speaker 1>to the energy sector next. A moves that we've seen

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<v Speaker 1>in Shell's share price after their latest trading update.

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<v Speaker 3>Yeah, so a bit of a boost for Shell this

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<v Speaker 3>morning in the share price on the back of that

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<v Speaker 3>production update for the second quarter. So they said that

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<v Speaker 3>oil trading had been in line with a very strong

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<v Speaker 3>first quarter, and that gas trading was significantly higher than

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<v Speaker 3>what was already a very robust first quarter. So overall

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<v Speaker 3>is very very positive. This is the first big oil

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<v Speaker 3>company to have a production update for this second quarter,

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<v Speaker 3>and so it gives a bit of an indication of

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<v Speaker 3>how this oil industry has performed over the course of

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<v Speaker 3>those three months, which were very turbulent when it comes

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<v Speaker 3>to energy markets. We saw crude prices soaring to the

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<v Speaker 3>highest level since twenty twenty two when Russia invaded Ukraine

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<v Speaker 3>and then plunging significantly when the Strait of Horn Moves

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<v Speaker 3>started to reopen and the oil flows started to be restored.

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<v Speaker 3>And so that volatility tends to be really really good

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<v Speaker 3>for oil and gas traders, and it's SEMs that shall

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<v Speaker 3>profited off of that turmoil, and it seems that the

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<v Speaker 3>third quarter is actually promising to be also potentially full

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<v Speaker 3>of twists and turns. We had a Qatari ship hit

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<v Speaker 3>in the stray of hor Mooz carrying liquify natural gas,

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<v Speaker 3>and that really caused some anxiety among ship owners, of course,

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<v Speaker 3>and that is also testing the strength of this US

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<v Speaker 3>around dyl and really raising questions on the durability of that.

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<v Speaker 3>And so we are probably going to see more volatility

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<v Speaker 3>and potentially more boosters on the back of that. For

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<v Speaker 3>shell in its spears.

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<v Speaker 1>Okay, so plenty to watch there as well. And let's

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<v Speaker 1>go to the defense sector next and shares in SAB rising.

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<v Speaker 3>Yeah, so there's a couple of things happening currently for SABS.

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<v Speaker 3>So the first thing is that it got raised to

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<v Speaker 3>a birating by Morgan Stanley analysts. There was also news

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<v Speaker 3>that NATO is set to procure up to ten aircraft

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<v Speaker 3>from the company. And all of that, of course, is

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<v Speaker 3>happening in the context of this NATO summit that's happening

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<v Speaker 3>this week. It's expected that the meeting will result in

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<v Speaker 3>additional funding, quite significant funding for the military. And of course,

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<v Speaker 3>as Trump is trying to push those European nations to

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<v Speaker 3>raise their defense spending and that should be something that

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<v Speaker 3>boosts those European defense names. It's the anticipation of that

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<v Speaker 3>has already lifted defense stocks to the highest level in

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<v Speaker 3>a little bit over a month. And so those defense

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<v Speaker 3>companies like SAB, like Ryan mettau Bea, etc. They're all

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<v Speaker 3>going to be very much in focus this week, and

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<v Speaker 3>this Nature summer is said to be a really important

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<v Speaker 3>catalyst for them as well going forward. So we are

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<v Speaker 3>seeing SAB up this morning in anticipation of that.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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