1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,520 --> 00:00:18,200 Speaker 3: Let's take a look at some stocks on the move 5 00:00:18,239 --> 00:00:21,840 Speaker 3: today in Europe. I'm Juanna Persacchi with Caroline Hapker, and 6 00:00:21,880 --> 00:00:24,000 Speaker 3: we're joined by Bloomberg reporter Chloy Meli. 7 00:00:24,640 --> 00:00:24,920 Speaker 1: Chloe. 8 00:00:25,600 --> 00:00:28,880 Speaker 3: Let's discuss what's been happening with European airlines. A hack 9 00:00:28,920 --> 00:00:31,200 Speaker 3: has been disrupting airports across Europe. 10 00:00:31,280 --> 00:00:32,920 Speaker 1: How are markets taking the news. 11 00:00:33,320 --> 00:00:37,000 Speaker 4: Well, quite badly so. Luftanza IAG, which owns British Airways 12 00:00:37,000 --> 00:00:39,640 Speaker 4: and easy Jet were all weaker at the open this 13 00:00:39,760 --> 00:00:42,559 Speaker 4: morning on the back of that cyber attack that you mentioned, 14 00:00:42,840 --> 00:00:46,239 Speaker 4: which calls delaser airports in Berlin, London and Brussels. 15 00:00:46,280 --> 00:00:48,919 Speaker 1: So this is all due to a cyber incident. 16 00:00:49,000 --> 00:00:53,519 Speaker 4: Which took down Colins Aerospace software which is used for 17 00:00:53,720 --> 00:00:57,160 Speaker 4: check in, boarding and baggage systems, which means that all 18 00:00:57,200 --> 00:01:01,000 Speaker 4: of those airports had to process passengers manually. The worst 19 00:01:01,080 --> 00:01:04,160 Speaker 4: hit was Brussels Airport and it took the toughest measures. 20 00:01:04,400 --> 00:01:08,200 Speaker 4: It asked some carriers to cancel some departures and there 21 00:01:08,200 --> 00:01:11,280 Speaker 4: were twenty five flights that were canceled on Saturday and 22 00:01:11,360 --> 00:01:14,480 Speaker 4: fifty canceled on Sunday as well. It said that more 23 00:01:14,520 --> 00:01:18,000 Speaker 4: cancelations and more delays were expected on Monday. We'll probably 24 00:01:18,000 --> 00:01:21,840 Speaker 4: see that in London and Berlin as well, And so 25 00:01:21,880 --> 00:01:25,119 Speaker 4: it really highlights how a cyber incident like this can 26 00:01:25,160 --> 00:01:28,640 Speaker 4: really disrupt European air travel for days, and it raises 27 00:01:28,920 --> 00:01:32,720 Speaker 4: questions about how well those key tech supplies like Colins 28 00:01:32,760 --> 00:01:36,800 Speaker 4: Aerospace are protected against cyber attacks, and it seems that 29 00:01:36,840 --> 00:01:39,479 Speaker 4: those tags are actually becoming a little bit more widespread. 30 00:01:39,920 --> 00:01:42,000 Speaker 4: There was a report by Tellis, which is a French 31 00:01:42,480 --> 00:01:45,959 Speaker 4: aerospace and defense company, that showed a six hundred percent 32 00:01:46,080 --> 00:01:49,840 Speaker 4: year on year increase in ransomware attacks in the aviation sector. 33 00:01:50,120 --> 00:01:52,800 Speaker 4: So this is definitely a growing problem. They'll need to 34 00:01:52,800 --> 00:01:53,360 Speaker 4: be addressed. 35 00:01:54,000 --> 00:01:59,760 Speaker 5: Yeah, Absolutely, cyber attacks increasingly difficult for businesses to deal with. 36 00:02:00,600 --> 00:02:03,800 Speaker 5: Other stories so that have caught our attention. Porsche putting 37 00:02:03,800 --> 00:02:07,240 Speaker 5: the brakes on its electric vehicle plans and that has 38 00:02:07,240 --> 00:02:08,919 Speaker 5: been really driving shares lower. 39 00:02:09,120 --> 00:02:12,120 Speaker 4: Yeah, absolutely, it was down quite a lot this morning, 40 00:02:12,160 --> 00:02:16,040 Speaker 4: as well as parent company at Volkswagen. So Porsche said 41 00:02:16,080 --> 00:02:19,440 Speaker 4: that it would shelve plans for a future battery powered 42 00:02:19,560 --> 00:02:22,480 Speaker 4: luxury suv, and it said that they would kind of move 43 00:02:22,639 --> 00:02:26,800 Speaker 4: more towards combustion engine and hybrid models to kind of 44 00:02:26,840 --> 00:02:30,520 Speaker 4: changing its portfolio, moving away from those a luxury cars 45 00:02:30,639 --> 00:02:33,720 Speaker 4: luxury electric cars because there's just not enough demand for it, 46 00:02:33,760 --> 00:02:36,760 Speaker 4: and that pivot is causing a one point eight billion 47 00:02:36,760 --> 00:02:41,600 Speaker 4: euro hit operating profit, which means that it would also 48 00:02:41,800 --> 00:02:45,360 Speaker 4: led its a Porsche and Volkswagen. 49 00:02:44,840 --> 00:02:46,560 Speaker 1: To slash their outlook for the year. 50 00:02:46,639 --> 00:02:50,000 Speaker 4: So they now expect a return on sales of two 51 00:02:50,080 --> 00:02:52,720 Speaker 4: percent for twenty twenty five, and for context, that number 52 00:02:52,840 --> 00:02:56,200 Speaker 4: was fourteen percent in twenty twenty four. This is also 53 00:02:56,320 --> 00:03:00,280 Speaker 4: the fourth guidance cut this year for Porsche. It's been 54 00:03:00,280 --> 00:03:03,280 Speaker 4: dealing of course with that low demon for electric vehicles, 55 00:03:03,280 --> 00:03:05,800 Speaker 4: but also tariffs have been weighing on it, and also 56 00:03:06,240 --> 00:03:09,120 Speaker 4: a slowdown in China where there's been so much competition 57 00:03:09,240 --> 00:03:13,239 Speaker 4: from a local TV manufacturers as well, and the shared 58 00:03:13,280 --> 00:03:15,639 Speaker 4: decline has been so great that it has dropped out 59 00:03:15,639 --> 00:03:17,240 Speaker 4: of Germany's taxing the index. 60 00:03:17,280 --> 00:03:19,320 Speaker 1: That's something that happened a couple of weeks ago. 61 00:03:19,400 --> 00:03:22,520 Speaker 4: So this is really yet another setback and doesn't really 62 00:03:22,600 --> 00:03:25,800 Speaker 4: spell good use for that car making sector in Europe, 63 00:03:25,800 --> 00:03:28,040 Speaker 4: which has already been having a tough time this year, 64 00:03:28,080 --> 00:03:31,440 Speaker 4: as we remember from the second quarter earning season, of course. 65 00:03:31,760 --> 00:03:35,480 Speaker 3: And European banking consolidation has been a big theme. Sabadel BBVA, 66 00:03:35,600 --> 00:03:37,880 Speaker 3: The saga continues. What's the latest there? 67 00:03:38,280 --> 00:03:41,840 Speaker 4: Yeah, so BBVA has increased its value for the takeover 68 00:03:41,960 --> 00:03:44,560 Speaker 4: for its takeover bit for Bank of Sabadel by about 69 00:03:44,600 --> 00:03:48,680 Speaker 4: ten percent, and it did that just before the September twenty. 70 00:03:48,440 --> 00:03:50,080 Speaker 1: Third deadline to improve that offer. 71 00:03:50,720 --> 00:03:53,920 Speaker 4: So the new deal now values the bank around seventeen 72 00:03:54,000 --> 00:03:58,240 Speaker 4: billion euros, which is around one point six percent premium 73 00:03:58,320 --> 00:04:01,560 Speaker 4: to the market value at Friday's close, and the previous 74 00:04:01,560 --> 00:04:04,320 Speaker 4: offer valued it at around fifteen point five bill in euros, 75 00:04:04,320 --> 00:04:08,960 Speaker 4: so quite quite an important boost there. The improved proposal 76 00:04:09,080 --> 00:04:12,360 Speaker 4: is a shift in strategy because BBBA spent the last 77 00:04:12,400 --> 00:04:15,360 Speaker 4: few months insisting there was really no need to sweeten 78 00:04:15,440 --> 00:04:18,960 Speaker 4: the offer, and while Sabadel continued to say that the 79 00:04:18,960 --> 00:04:21,599 Speaker 4: price was too low. But now BBBA seems to have 80 00:04:21,960 --> 00:04:24,720 Speaker 4: changed his mind. It's actually driven the chas lower for 81 00:04:24,839 --> 00:04:28,200 Speaker 4: both of those companies this morning. So it's unclear how 82 00:04:28,600 --> 00:04:32,680 Speaker 4: why the market is not rewarding this potential m and 83 00:04:32,720 --> 00:04:36,960 Speaker 4: a consolidation. But it seems BBVA changed its approach to 84 00:04:37,440 --> 00:04:39,400 Speaker 4: avoid what happened the last time that it tried to 85 00:04:39,400 --> 00:04:42,239 Speaker 4: buy Sabadel, which was five years ago, and that failed 86 00:04:42,279 --> 00:04:44,320 Speaker 4: because of a disagreement over price. 87 00:04:44,400 --> 00:04:46,680 Speaker 1: So now it's kind of changed its tuner bit of work. 88 00:04:47,480 --> 00:04:51,479 Speaker 2: The Stock Mover's report from Bloomberg Radio. Check back with 89 00:04:51,560 --> 00:04:54,160 Speaker 2: us throughout the day for the latest roundup of companies 90 00:04:54,240 --> 00:04:57,320 Speaker 2: making news on Wall Street and for the latest market 91 00:04:57,360 --> 00:05:01,839 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 92 00:05:01,920 --> 00:05:05,400 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 93 00:05:05,480 --> 00:05:06,960 Speaker 2: the Bloomberg Business app.