Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Well, let's take a look at some stocks on the
Speaker 1: move in Europe. I'm Stephen Carroll and I'm joined by
Speaker 1: Bloomberg reporter Chloe Melee for more. Chloe, good morning. Good.
Speaker 1: Let's start with a full for ASML talk us through
Speaker 1: the move that we're seeing in TEG.
Speaker 3: Yeah, so this is very much this read across from
Speaker 3: these Samsung earnings that really disappointed investors. So the results
Speaker 3: from Samsung were seen as something that was really going
Speaker 3: to sort of set the tone for the AI trade
Speaker 3: going forward, maybe say something about the durability of this
Speaker 3: AI driven rally. And unfortunately for Samsung and for the
Speaker 3: rest of that tech sector, the results really disappointed investors,
Speaker 3: very much failed to impress. And it is worth noting
Speaker 3: that the results themselves were not actually that bad. In fact,
Speaker 3: they're very good. But this is more about very very
Speaker 3: elevated expectations rather than kind of any problem with the
Speaker 3: fundamentals themselves. And so we saw the Samsung shares plunging
Speaker 3: and we are seeing now that weakness spilling over into Europe,
Speaker 3: and so chip names like asml B Semiconductor or Infinian
Speaker 3: are all struggling today. More broadly, the rest of that
Speaker 3: kind of AI related sector with names like Semen's Energy
Speaker 3: or Schneider Electric, all of those companies that provide the
Speaker 3: equipment around the air infrastructure, they're all also in the
Speaker 3: red today. So we have got very much this sector
Speaker 3: wide move and this is all in the context of
Speaker 3: the air trade seeing a lot of ups and downs
Speaker 3: over the last few weeks, the main concern really being
Speaker 3: around whether those massive investments into AI, those sky high
Speaker 3: evaluations are justified, and today the mood is one of
Speaker 3: caution and one of concern around those questions very much.
Speaker 1: So okay, so that's on the tech sector. Let's go
Speaker 1: to the energy sector next. A moves that we've seen
Speaker 1: in Shell's share price after their latest trading update.
Speaker 3: Yeah, so a bit of a boost for Shell this
Speaker 3: morning in the share price on the back of that
Speaker 3: production update for the second quarter. So they said that
Speaker 3: oil trading had been in line with a very strong
Speaker 3: first quarter, and that gas trading was significantly higher than
Speaker 3: what was already a very robust first quarter. So overall
Speaker 3: is very very positive. This is the first big oil
Speaker 3: company to have a production update for this second quarter,
Speaker 3: and so it gives a bit of an indication of
Speaker 3: how this oil industry has performed over the course of
Speaker 3: those three months, which were very turbulent when it comes
Speaker 3: to energy markets. We saw crude prices soaring to the
Speaker 3: highest level since twenty twenty two when Russia invaded Ukraine
Speaker 3: and then plunging significantly when the Strait of Horn Moves
Speaker 3: started to reopen and the oil flows started to be restored.
Speaker 3: And so that volatility tends to be really really good
Speaker 3: for oil and gas traders, and it's SEMs that shall
Speaker 3: profited off of that turmoil, and it seems that the
Speaker 3: third quarter is actually promising to be also potentially full
Speaker 3: of twists and turns. We had a Qatari ship hit
Speaker 3: in the stray of hor Mooz carrying liquify natural gas,
Speaker 3: and that really caused some anxiety among ship owners, of course,
Speaker 3: and that is also testing the strength of this US
Speaker 3: around dyl and really raising questions on the durability of that.
Speaker 3: And so we are probably going to see more volatility
Speaker 3: and potentially more boosters on the back of that. For
Speaker 3: shell in its spears.
Speaker 1: Okay, so plenty to watch there as well. And let's
Speaker 1: go to the defense sector next and shares in SAB rising.
Speaker 3: Yeah, so there's a couple of things happening currently for SABS.
Speaker 3: So the first thing is that it got raised to
Speaker 3: a birating by Morgan Stanley analysts. There was also news
Speaker 3: that NATO is set to procure up to ten aircraft
Speaker 3: from the company. And all of that, of course, is
Speaker 3: happening in the context of this NATO summit that's happening
Speaker 3: this week. It's expected that the meeting will result in
Speaker 3: additional funding, quite significant funding for the military. And of course,
Speaker 3: as Trump is trying to push those European nations to
Speaker 3: raise their defense spending and that should be something that
Speaker 3: boosts those European defense names. It's the anticipation of that
Speaker 3: has already lifted defense stocks to the highest level in
Speaker 3: a little bit over a month. And so those defense
Speaker 3: companies like SAB, like Ryan mettau Bea, etc. They're all
Speaker 3: going to be very much in focus this week, and
Speaker 3: this Nature summer is said to be a really important
Speaker 3: catalyst for them as well going forward. So we are
Speaker 3: seeing SAB up this morning in anticipation of that.
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