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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market, harnessing the power of Bloomberg data.

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Speaker 3: Let's look at some stocks on the move today. Here

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Speaker 3: in you have, I'm Caroline Hepge along side of Bloomberg

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Speaker 3: Reportacloim Malay.

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Speaker 1: Good morning.

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Speaker 3: BMW declining quite significantly. I've been talking about Germany's industrial

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Speaker 3: production figures. There's been a big hit to the German

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Speaker 3: auto makers. Why is BMW particularly bad today.

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Speaker 1: Well, just last night it lowered its outlook, cut its

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Speaker 1: guidance due to tariff costs and then also a continuation

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Speaker 1: of week sales in China, and China is a big

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Speaker 1: market for those carmakers, but European manufacturers are really struggling

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Speaker 1: to compete with the cheaper Chinese manufacturers that are really

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Speaker 1: gaining attraction there. And of course those weekses in China

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Speaker 1: are also compounded by weeks sales in Europe and in

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Speaker 1: the US, where you know, we've got demond for luxury

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Speaker 1: cars in particular that BMW makes, which is very.

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Speaker 3: Low at the moment.

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Speaker 1: You know, we saw a Porsche flagging that weakness for

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Speaker 1: the luxury electric vehicles that it makes just a couple

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Speaker 1: of weeks ago. So this really shows that the German

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Speaker 1: car industry, which is very reliant on exports, is going

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Speaker 1: to be facing kind of continued challenges going forward. Another

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Speaker 1: thing worth mentioning is that BMW now expects to be

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Speaker 1: reimburst custom duties next year instead of twenty twenty five.

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Speaker 1: And that's, you know, after the US lower tariffs retroactively

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Speaker 1: to August first. So the guidance car definitely is driving

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Speaker 1: the shares down today. We'll see how much more of

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Speaker 1: these we get in that car making sector as the

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Speaker 1: earning season progresses.

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Speaker 3: Yeah. Absolutely. BMW share price down well over six percent

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Speaker 3: in the first hour of European trading. Arsalin Mittal, though,

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Speaker 3: has some better tariff news.

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Speaker 1: Yeah, absolutely so. Osla Matal a steel company, a steel maker,

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Speaker 1: so it was placed on positive catalyst watch at City

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Speaker 1: and that's because the company will benefit from the European

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Speaker 1: Union's plan to restrict foreign steel imports. So essentially the

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Speaker 1: EU is mirroring the policy from the US, which currently

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Speaker 1: imposes fifty percent tariffs on those steel imports. So City

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Speaker 1: analysts said that those measures should be very supportive to

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Speaker 1: that European steel industry, which was one of the first

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Speaker 1: sectors that Trump had singled out when he started and

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Speaker 1: started slaffing those tariffs to all of the different industries,

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Speaker 1: and that was obviously reflected in the shares kind of

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Speaker 1: tumbling across that steel industry. But hopefully this plan will

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Speaker 1: turn things around for Aslo Matel Specifically, it has a

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Speaker 1: thirty percent European market share, so more steeled shipments could

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Speaker 1: translate into a profit boost up to seven fifty million dollars,

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Speaker 1: which is not negligible of course, so that's quite positive

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Speaker 1: for that company.

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Speaker 3: Now, interesting that overall European stocks after the first hour

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Speaker 3: are actually up this morning. But ASML shares have been

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Speaker 3: hit hard. Why Yeah, quite badly.

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Speaker 1: This, my ASML is because of the announcement of a

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Speaker 1: US probe into semiconductor exports to China. So lawmakers in

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Speaker 1: the US said that ASML, but also other companies like

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Speaker 1: Tokyo Electron Applying Materials and Land Research, had fueled semiconductor

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Speaker 1: manufacturing in China and made sizeable return selling equipment to

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Speaker 1: Chinese state owned and military linked companies. And the statement

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Speaker 1: from that committee said that semiconductor development in China is

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Speaker 1: a threat to US national security, so this could mean

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Speaker 1: potentially even more export restrictions, which could hurt sales for

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Speaker 1: ASML and those peers that I mentioned. This is a

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Speaker 1: big setback for SML because it has really, it had

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Speaker 1: really benefited recently from quite positive newsflow around AI. Recently

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Speaker 1: there were quite new high profile partnerships like the deal

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Speaker 1: between AMD and open Ai, for example, and just quite

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Speaker 1: generally bullish sentiment around that sector. But obviously this is

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Speaker 1: a bit of a setback for SML. It's really really

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Speaker 1: hit the shares. As you said this morning.

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Speaker 2: The Stockmovers report from Bloomberg Radio. Check back with us

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Speaker 2: throughout the day for the latest roundup of companies making

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Speaker 2: news on Wall Street and for the latest market moving headlines.

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