Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg data.
Speaker 3: Let's look at some stocks on the move today. Here
Speaker 3: in you have, I'm Caroline Hepge along side of Bloomberg
Speaker 3: Reportacloim Malay.
Speaker 1: Good morning.
Speaker 3: BMW declining quite significantly. I've been talking about Germany's industrial
Speaker 3: production figures. There's been a big hit to the German
Speaker 3: auto makers. Why is BMW particularly bad today.
Speaker 1: Well, just last night it lowered its outlook, cut its
Speaker 1: guidance due to tariff costs and then also a continuation
Speaker 1: of week sales in China, and China is a big
Speaker 1: market for those carmakers, but European manufacturers are really struggling
Speaker 1: to compete with the cheaper Chinese manufacturers that are really
Speaker 1: gaining attraction there. And of course those weekses in China
Speaker 1: are also compounded by weeks sales in Europe and in
Speaker 1: the US, where you know, we've got demond for luxury
Speaker 1: cars in particular that BMW makes, which is very.
Speaker 3: Low at the moment.
Speaker 1: You know, we saw a Porsche flagging that weakness for
Speaker 1: the luxury electric vehicles that it makes just a couple
Speaker 1: of weeks ago. So this really shows that the German
Speaker 1: car industry, which is very reliant on exports, is going
Speaker 1: to be facing kind of continued challenges going forward. Another
Speaker 1: thing worth mentioning is that BMW now expects to be
Speaker 1: reimburst custom duties next year instead of twenty twenty five.
Speaker 1: And that's, you know, after the US lower tariffs retroactively
Speaker 1: to August first. So the guidance car definitely is driving
Speaker 1: the shares down today. We'll see how much more of
Speaker 1: these we get in that car making sector as the
Speaker 1: earning season progresses.
Speaker 3: Yeah. Absolutely. BMW share price down well over six percent
Speaker 3: in the first hour of European trading. Arsalin Mittal, though,
Speaker 3: has some better tariff news.
Speaker 1: Yeah, absolutely so. Osla Matal a steel company, a steel maker,
Speaker 1: so it was placed on positive catalyst watch at City
Speaker 1: and that's because the company will benefit from the European
Speaker 1: Union's plan to restrict foreign steel imports. So essentially the
Speaker 1: EU is mirroring the policy from the US, which currently
Speaker 1: imposes fifty percent tariffs on those steel imports. So City
Speaker 1: analysts said that those measures should be very supportive to
Speaker 1: that European steel industry, which was one of the first
Speaker 1: sectors that Trump had singled out when he started and
Speaker 1: started slaffing those tariffs to all of the different industries,
Speaker 1: and that was obviously reflected in the shares kind of
Speaker 1: tumbling across that steel industry. But hopefully this plan will
Speaker 1: turn things around for Aslo Matel Specifically, it has a
Speaker 1: thirty percent European market share, so more steeled shipments could
Speaker 1: translate into a profit boost up to seven fifty million dollars,
Speaker 1: which is not negligible of course, so that's quite positive
Speaker 1: for that company.
Speaker 3: Now, interesting that overall European stocks after the first hour
Speaker 3: are actually up this morning. But ASML shares have been
Speaker 3: hit hard. Why Yeah, quite badly.
Speaker 1: This, my ASML is because of the announcement of a
Speaker 1: US probe into semiconductor exports to China. So lawmakers in
Speaker 1: the US said that ASML, but also other companies like
Speaker 1: Tokyo Electron Applying Materials and Land Research, had fueled semiconductor
Speaker 1: manufacturing in China and made sizeable return selling equipment to
Speaker 1: Chinese state owned and military linked companies. And the statement
Speaker 1: from that committee said that semiconductor development in China is
Speaker 1: a threat to US national security, so this could mean
Speaker 1: potentially even more export restrictions, which could hurt sales for
Speaker 1: ASML and those peers that I mentioned. This is a
Speaker 1: big setback for SML because it has really, it had
Speaker 1: really benefited recently from quite positive newsflow around AI. Recently
Speaker 1: there were quite new high profile partnerships like the deal
Speaker 1: between AMD and open Ai, for example, and just quite
Speaker 1: generally bullish sentiment around that sector. But obviously this is
Speaker 1: a bit of a setback for SML. It's really really
Speaker 1: hit the shares. As you said this morning.
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