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 3: Let's look at some of the starts on the move
Speaker 3: today here in Europe. I'm Caroline Hepgar with Tom McKenzie,
Speaker 3: and we're joined by Bloomberg reporter Chloe Malay. Chloe, good morning,
Speaker 3: Good morning. Now let's think about what is happening in
Speaker 3: Europe and particularly for Ryan Matta, one of the defense
Speaker 3: stocks which is falling. This is always quite a difficult
Speaker 3: market correlation. The idea of peace in Ukraine actually is
Speaker 3: a setback for the defense name.
Speaker 1: Yeah, absolutely very classic case of peace talks progressing and
Speaker 1: defense shares falling, and we have seen that for Ryan Mattel,
Speaker 1: but also other names like Hensalton and Leonardo this morning.
Speaker 1: So we are entering the second day of talks between
Speaker 1: Ukraine and the US in Berlin, and the big focus
Speaker 1: of the negotiations at the moment is around security are guarantees.
Speaker 1: So Zelenski has hinted that Ukraine could actually back away
Speaker 1: from its long term goal of joining NATO and instead
Speaker 1: accept bilateral security guarantees from the US, Europe and other
Speaker 1: states including Japan. So this actually signals quite good progress
Speaker 1: on those peace talks, and as a result, we're seeing
Speaker 1: that weakness today in those defense as shares. So this
Speaker 1: is actually even despite the fact that even if we
Speaker 1: do have peace in Ukraine doesn't necessarily mean that the
Speaker 1: countries will stop spending on defense. But there always seems
Speaker 1: to be that correlation in the market between news of
Speaker 1: peace and defense stocks prices.
Speaker 3: Automaker stocks in focus as well this morning, the focus
Speaker 3: on climate change rules and maybe some adjustments from the
Speaker 3: EU yees.
Speaker 1: So the EU is preparing to soften some of those
Speaker 1: rules around combuntion engine cars. So currently the rules are
Speaker 1: that the new combustion engine vehicles will actually be banned
Speaker 1: from twenty thirty five, but what the EU is considering
Speaker 1: now is either extend that deadline for five years or
Speaker 1: take the band filly off the table. So that would
Speaker 1: essentially allow those carmakers in Europe to transition to emission
Speaker 1: free cars over a longer period of time, and that
Speaker 1: could be a relief for those companies. You know, European
Speaker 1: car companies have struggled to remain competitive and the removal
Speaker 1: of maybe some of that regulatory burden could help with that,
Speaker 1: So that would be good breathing room. But then the
Speaker 1: risk is that it could actually slow development of some
Speaker 1: kind of new green technologies, slow also the reaching of
Speaker 1: some climate targets, and that could potentially widen the gap
Speaker 1: between what you know, US companies like Tesla can do
Speaker 1: in terms of technology versus what Mercedes Stellant's BMW etc.
Speaker 1: Could Have to offer here in Europe. So that has
Speaker 1: to be taken into account as well. So there's some
Speaker 1: caveat to that, and that explains some gains in Stellantis
Speaker 1: this morning, but quite modest, actually modest gains in those shares. Hm.
Speaker 3: Okay. Let's also think about the pharmaceuticals sector. Our Jenks
Speaker 3: has had an issue with one of its important drug trials.
Speaker 1: Yeah. So RJX is a biotech company based in the
Speaker 1: Netherlands and it essentially has one flagship drug that I
Speaker 1: will not attempt to pronounce, but one flagship drug and
Speaker 1: that is used for a variety of applications for autoimmune diseases.
Speaker 1: And the shares have actually rallied quite impressively over the
Speaker 1: last a few months because it's been able to get
Speaker 1: a lot of wins in terms of successful trials, but
Speaker 1: it has just encountered a big a setback, so it
Speaker 1: has it had to discontinue studies that were checking if
Speaker 1: it could use that flagship drug for a thyroage eye disease.
Speaker 1: And so this rules out now a population of about
Speaker 1: one hundred thousand in the US, and that puts pressure
Speaker 1: on these sales ambition for twenty thirty and also puts
Speaker 1: a little bit more scrutiny on the results of other
Speaker 1: trials or other catalysts that are coming next year in
Speaker 1: kind of better use perhaps for RGENX. And multiple analysts
Speaker 1: have said that the share price weakness today is actually
Speaker 1: a buying opportunity, so they say that the fundamentals do
Speaker 1: remain strong. It's kind of a temporary setback where we've
Speaker 1: seen a lot of weakness in the Chez VALSI.
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