WEBVTT - Rheinmetall Falls, Stellantis Rises, Argenx Down Nearly 10%

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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 3>Let's look at some of the starts on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hepgar with Tom McKenzie,

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<v Speaker 3>and we're joined by Bloomberg reporter Chloe Malay. Chloe, good morning,

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<v Speaker 3>Good morning. Now let's think about what is happening in

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<v Speaker 3>Europe and particularly for Ryan Matta, one of the defense

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<v Speaker 3>stocks which is falling. This is always quite a difficult

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<v Speaker 3>market correlation. The idea of peace in Ukraine actually is

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<v Speaker 3>a setback for the defense name.

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<v Speaker 1>Yeah, absolutely very classic case of peace talks progressing and

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<v Speaker 1>defense shares falling, and we have seen that for Ryan Mattel,

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<v Speaker 1>but also other names like Hensalton and Leonardo this morning.

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<v Speaker 1>So we are entering the second day of talks between

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<v Speaker 1>Ukraine and the US in Berlin, and the big focus

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<v Speaker 1>of the negotiations at the moment is around security are guarantees.

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<v Speaker 1>So Zelenski has hinted that Ukraine could actually back away

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<v Speaker 1>from its long term goal of joining NATO and instead

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<v Speaker 1>accept bilateral security guarantees from the US, Europe and other

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<v Speaker 1>states including Japan. So this actually signals quite good progress

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<v Speaker 1>on those peace talks, and as a result, we're seeing

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<v Speaker 1>that weakness today in those defense as shares. So this

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<v Speaker 1>is actually even despite the fact that even if we

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<v Speaker 1>do have peace in Ukraine doesn't necessarily mean that the

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<v Speaker 1>countries will stop spending on defense. But there always seems

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<v Speaker 1>to be that correlation in the market between news of

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<v Speaker 1>peace and defense stocks prices.

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<v Speaker 3>Automaker stocks in focus as well this morning, the focus

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<v Speaker 3>on climate change rules and maybe some adjustments from the

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<v Speaker 3>EU yees.

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<v Speaker 1>So the EU is preparing to soften some of those

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<v Speaker 1>rules around combuntion engine cars. So currently the rules are

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<v Speaker 1>that the new combustion engine vehicles will actually be banned

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<v Speaker 1>from twenty thirty five, but what the EU is considering

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<v Speaker 1>now is either extend that deadline for five years or

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<v Speaker 1>take the band filly off the table. So that would

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<v Speaker 1>essentially allow those carmakers in Europe to transition to emission

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<v Speaker 1>free cars over a longer period of time, and that

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<v Speaker 1>could be a relief for those companies. You know, European

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<v Speaker 1>car companies have struggled to remain competitive and the removal

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<v Speaker 1>of maybe some of that regulatory burden could help with that,

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<v Speaker 1>So that would be good breathing room. But then the

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<v Speaker 1>risk is that it could actually slow development of some

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<v Speaker 1>kind of new green technologies, slow also the reaching of

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<v Speaker 1>some climate targets, and that could potentially widen the gap

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<v Speaker 1>between what you know, US companies like Tesla can do

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<v Speaker 1>in terms of technology versus what Mercedes Stellant's BMW etc.

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<v Speaker 1>Could Have to offer here in Europe. So that has

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<v Speaker 1>to be taken into account as well. So there's some

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<v Speaker 1>caveat to that, and that explains some gains in Stellantis

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<v Speaker 1>this morning, but quite modest, actually modest gains in those shares. Hm.

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<v Speaker 3>Okay. Let's also think about the pharmaceuticals sector. Our Jenks

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<v Speaker 3>has had an issue with one of its important drug trials.

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<v Speaker 1>Yeah. So RJX is a biotech company based in the

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<v Speaker 1>Netherlands and it essentially has one flagship drug that I

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<v Speaker 1>will not attempt to pronounce, but one flagship drug and

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<v Speaker 1>that is used for a variety of applications for autoimmune diseases.

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<v Speaker 1>And the shares have actually rallied quite impressively over the

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<v Speaker 1>last a few months because it's been able to get

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<v Speaker 1>a lot of wins in terms of successful trials, but

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<v Speaker 1>it has just encountered a big a setback, so it

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<v Speaker 1>has it had to discontinue studies that were checking if

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<v Speaker 1>it could use that flagship drug for a thyroage eye disease.

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<v Speaker 1>And so this rules out now a population of about

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<v Speaker 1>one hundred thousand in the US, and that puts pressure

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<v Speaker 1>on these sales ambition for twenty thirty and also puts

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<v Speaker 1>a little bit more scrutiny on the results of other

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<v Speaker 1>trials or other catalysts that are coming next year in

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<v Speaker 1>kind of better use perhaps for RGENX. And multiple analysts

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<v Speaker 1>have said that the share price weakness today is actually

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<v Speaker 1>a buying opportunity, so they say that the fundamentals do

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<v Speaker 1>remain strong. It's kind of a temporary setback where we've

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<v Speaker 1>seen a lot of weakness in the Chez VALSI.

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<v Speaker 2>Next this morning the Stockmover's Report from Bloomberg Radio. Check

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