1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,720 --> 00:00:18,680 Speaker 3: Let's look at some of the stocks on the move 5 00:00:18,760 --> 00:00:21,120 Speaker 3: today here in Europe. I'm Caroline Hepget and I'm joined 6 00:00:21,120 --> 00:00:24,799 Speaker 3: by Bloombates Equities reporter Chloe Malay. Good morning, Chloe. So 7 00:00:24,920 --> 00:00:28,240 Speaker 3: shares and the chocolate maker Lint are down. I mean, 8 00:00:28,240 --> 00:00:31,440 Speaker 3: this is a big picture story around Switzerland, isn't it. 9 00:00:31,600 --> 00:00:34,800 Speaker 1: Yeah. Absolutely, So. We've seen weakness across the Swiss market 10 00:00:34,840 --> 00:00:37,000 Speaker 1: this morning because of the news of that thirty nine 11 00:00:37,280 --> 00:00:40,600 Speaker 1: percent tariffs are on Switzerland, which was announced last week. 12 00:00:40,720 --> 00:00:42,879 Speaker 1: But we didn't get a reaction on Friday from Switzerland 13 00:00:42,920 --> 00:00:45,000 Speaker 1: because there was a holiday on the first of August 14 00:00:45,000 --> 00:00:47,920 Speaker 1: on Friday. But today we can see how that the 15 00:00:47,960 --> 00:00:51,120 Speaker 1: market is kind of digesting that news, and we are 16 00:00:51,120 --> 00:00:54,000 Speaker 1: down across kind of three of the biggest sectors with Switzerland. 17 00:00:54,120 --> 00:00:57,000 Speaker 1: So you mentioned Lint, that's the chocolate making sector which 18 00:00:57,040 --> 00:00:59,720 Speaker 1: is really important for Switzerland and Lint Lint was down 19 00:00:59,760 --> 00:01:03,720 Speaker 1: this We've also got watchmakers, so that include Richmond for example. 20 00:01:03,840 --> 00:01:07,760 Speaker 1: We see across that luxury market, but particularly known for 21 00:01:08,040 --> 00:01:10,880 Speaker 1: its watches and Swatch, so those two are also down. 22 00:01:11,080 --> 00:01:14,200 Speaker 1: And of course pharmaceuticals, so Nevartis and Rash actually make 23 00:01:14,319 --> 00:01:17,920 Speaker 1: thirty percent of the Swiss market index weight, so those 24 00:01:17,959 --> 00:01:21,160 Speaker 1: are really important. And the pharma sector is facing pressure 25 00:01:21,360 --> 00:01:25,280 Speaker 1: from those tariffs but also from Trump trying to lower 26 00:01:25,440 --> 00:01:27,959 Speaker 1: US drug prices, so they faced those kind of two 27 00:01:28,000 --> 00:01:31,040 Speaker 1: major obstacles. And we have seen that weakness in the 28 00:01:31,080 --> 00:01:34,199 Speaker 1: Swiss market as a whole, perhaps not as as down 29 00:01:34,240 --> 00:01:37,280 Speaker 1: as we originally thought. That's probably because a lot of 30 00:01:37,280 --> 00:01:41,319 Speaker 1: analysts and economists are expecting that this is actually the 31 00:01:41,360 --> 00:01:44,440 Speaker 1: opening of negotiations rather than the final rate. So that's 32 00:01:44,440 --> 00:01:46,640 Speaker 1: a caveat to keep in mind. And it's probably not 33 00:01:46,720 --> 00:01:49,080 Speaker 1: the last that we hear about that Swiss tariff story. 34 00:01:49,200 --> 00:01:52,320 Speaker 3: No, absolutely. I mean the Swiss was celebrating their national day. 35 00:01:52,360 --> 00:01:55,440 Speaker 3: You normally see fireworks and bonbfires and all sorts of things, 36 00:01:55,440 --> 00:02:00,000 Speaker 3: but yeah, it must have been a pretty difficult day. Yeah, absolutely. Yeah. 37 00:02:00,280 --> 00:02:03,600 Speaker 3: In terms of the UK, let's think about lenders here, 38 00:02:04,240 --> 00:02:07,360 Speaker 3: because there was also an important court decision on Friday. 39 00:02:07,520 --> 00:02:09,960 Speaker 1: Yeah, a lot's happening on Friday, actually, and we're seeing 40 00:02:10,000 --> 00:02:13,400 Speaker 1: everything happening today as a result, so quite a big 41 00:02:13,400 --> 00:02:15,760 Speaker 1: boost for Lloyd's but and also for Close Brothers, which 42 00:02:15,840 --> 00:02:19,120 Speaker 1: was more than twenty percent this morning and SNU. So 43 00:02:19,440 --> 00:02:21,320 Speaker 1: those three names are kind of the key names that 44 00:02:21,320 --> 00:02:24,799 Speaker 1: we're associated with the UK motor finance case. So the 45 00:02:24,880 --> 00:02:27,640 Speaker 1: latest update with that is on Friday, the UK Supreme 46 00:02:27,680 --> 00:02:30,680 Speaker 1: Court ruled in favor of the lenders, which means that 47 00:02:30,680 --> 00:02:33,480 Speaker 1: they're on the hook for lower compensation than the originally 48 00:02:33,720 --> 00:02:36,040 Speaker 1: it expected says, because the court said that the banks 49 00:02:36,040 --> 00:02:39,200 Speaker 1: should only pay a compensation in the most serious cases 50 00:02:39,200 --> 00:02:42,400 Speaker 1: of motor finance misselling. So now we're actually looking at 51 00:02:42,440 --> 00:02:44,840 Speaker 1: a figure of at least nine billion pounds, which is 52 00:02:44,840 --> 00:02:47,440 Speaker 1: obviously quite steep, but really not as bad as the 53 00:02:47,560 --> 00:02:51,120 Speaker 1: thirty billion, more than thirty billion that was originally estimated. 54 00:02:51,160 --> 00:02:53,360 Speaker 1: And that is a major relief for the industry and 55 00:02:53,400 --> 00:02:56,200 Speaker 1: we can see that with those ches across that sector 56 00:02:56,240 --> 00:02:56,720 Speaker 1: this morning. 57 00:02:57,720 --> 00:03:00,000 Speaker 3: Now what is providing a lift to air France? 58 00:03:00,440 --> 00:03:04,799 Speaker 1: Yeah, so again also sector a story there with multiple names. 59 00:03:04,840 --> 00:03:07,960 Speaker 1: So we've got actually upgrades from underweight to equal it 60 00:03:08,000 --> 00:03:10,560 Speaker 1: from Barclays for three of the key names in that 61 00:03:10,720 --> 00:03:13,400 Speaker 1: air airline sector in the in Europe, so we've got 62 00:03:13,400 --> 00:03:17,399 Speaker 1: air France, but also Lufthansa and IAG, which owns British Airways. 63 00:03:17,880 --> 00:03:21,799 Speaker 1: This follows recent earnings reports from all three of those airlines, 64 00:03:21,840 --> 00:03:25,440 Speaker 1: which all reported actually very solid, fairly solid results with 65 00:03:25,520 --> 00:03:27,880 Speaker 1: profit a head of estimates for all three. So this 66 00:03:28,000 --> 00:03:30,480 Speaker 1: is kind of a of confidence in the sector. And 67 00:03:30,760 --> 00:03:33,840 Speaker 1: one of the major things that those two three airlines 68 00:03:33,840 --> 00:03:36,640 Speaker 1: have benefited from is that they performed really well on 69 00:03:36,760 --> 00:03:41,560 Speaker 1: premium cabins actually especially on transatlantic routes, which helped offset 70 00:03:41,600 --> 00:03:45,720 Speaker 1: weakness in the economy cabins, and they also benefited from 71 00:03:45,760 --> 00:03:49,520 Speaker 1: lower fuel prices. But they are rated equal it but 72 00:03:49,560 --> 00:03:51,840 Speaker 1: not overweight yet because there are a couple of challenges 73 00:03:52,240 --> 00:03:55,800 Speaker 1: to keep in mind. There's currency headwinds, geopolitical tensions of 74 00:03:55,840 --> 00:03:58,720 Speaker 1: course that are disrupting travel routes, you know, still still 75 00:03:58,720 --> 00:04:02,800 Speaker 1: happening now highly because so some of those things are 76 00:04:02,840 --> 00:04:05,440 Speaker 1: still weighing on the sector. So burt of confidence, but 77 00:04:05,480 --> 00:04:07,480 Speaker 1: we're not completely out of the woods yet. 78 00:04:08,760 --> 00:04:12,800 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 79 00:04:12,880 --> 00:04:15,440 Speaker 2: us throughout the day for the latest roundup of companies 80 00:04:15,520 --> 00:04:18,599 Speaker 2: making news on Wall Street and for the latest market 81 00:04:18,640 --> 00:04:23,120 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. 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