Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today in Europe. I'm Juanna Persacchi with Caroline Hapker, and
Speaker 3: we're joined by Bloomberg reporter Chloy Meli.
Speaker 1: Chloe.
Speaker 3: Let's discuss what's been happening with European airlines. A hack
Speaker 3: has been disrupting airports across Europe.
Speaker 1: How are markets taking the news.
Speaker 4: Well, quite badly so. Luftanza IAG, which owns British Airways
Speaker 4: and easy Jet were all weaker at the open this
Speaker 4: morning on the back of that cyber attack that you mentioned,
Speaker 4: which calls delaser airports in Berlin, London and Brussels.
Speaker 1: So this is all due to a cyber incident.
Speaker 4: Which took down Colins Aerospace software which is used for
Speaker 4: check in, boarding and baggage systems, which means that all
Speaker 4: of those airports had to process passengers manually. The worst
Speaker 4: hit was Brussels Airport and it took the toughest measures.
Speaker 4: It asked some carriers to cancel some departures and there
Speaker 4: were twenty five flights that were canceled on Saturday and
Speaker 4: fifty canceled on Sunday as well. It said that more
Speaker 4: cancelations and more delays were expected on Monday. We'll probably
Speaker 4: see that in London and Berlin as well, And so
Speaker 4: it really highlights how a cyber incident like this can
Speaker 4: really disrupt European air travel for days, and it raises
Speaker 4: questions about how well those key tech supplies like Colins
Speaker 4: Aerospace are protected against cyber attacks, and it seems that
Speaker 4: those tags are actually becoming a little bit more widespread.
Speaker 4: There was a report by Tellis, which is a French
Speaker 4: aerospace and defense company, that showed a six hundred percent
Speaker 4: year on year increase in ransomware attacks in the aviation sector.
Speaker 4: So this is definitely a growing problem. They'll need to
Speaker 4: be addressed.
Speaker 5: Yeah, Absolutely, cyber attacks increasingly difficult for businesses to deal with.
Speaker 5: Other stories so that have caught our attention. Porsche putting
Speaker 5: the brakes on its electric vehicle plans and that has
Speaker 5: been really driving shares lower.
Speaker 4: Yeah, absolutely, it was down quite a lot this morning,
Speaker 4: as well as parent company at Volkswagen. So Porsche said
Speaker 4: that it would shelve plans for a future battery powered
Speaker 4: luxury suv, and it said that they would kind of move
Speaker 4: more towards combustion engine and hybrid models to kind of
Speaker 4: changing its portfolio, moving away from those a luxury cars
Speaker 4: luxury electric cars because there's just not enough demand for it,
Speaker 4: and that pivot is causing a one point eight billion
Speaker 4: euro hit operating profit, which means that it would also
Speaker 4: led its a Porsche and Volkswagen.
Speaker 1: To slash their outlook for the year.
Speaker 4: So they now expect a return on sales of two
Speaker 4: percent for twenty twenty five, and for context, that number
Speaker 4: was fourteen percent in twenty twenty four. This is also
Speaker 4: the fourth guidance cut this year for Porsche. It's been
Speaker 4: dealing of course with that low demon for electric vehicles,
Speaker 4: but also tariffs have been weighing on it, and also
Speaker 4: a slowdown in China where there's been so much competition
Speaker 4: from a local TV manufacturers as well, and the shared
Speaker 4: decline has been so great that it has dropped out
Speaker 4: of Germany's taxing the index.
Speaker 1: That's something that happened a couple of weeks ago.
Speaker 4: So this is really yet another setback and doesn't really
Speaker 4: spell good use for that car making sector in Europe,
Speaker 4: which has already been having a tough time this year,
Speaker 4: as we remember from the second quarter earning season, of course.
Speaker 3: And European banking consolidation has been a big theme. Sabadel BBVA,
Speaker 3: The saga continues. What's the latest there?
Speaker 4: Yeah, so BBVA has increased its value for the takeover
Speaker 4: for its takeover bit for Bank of Sabadel by about
Speaker 4: ten percent, and it did that just before the September twenty.
Speaker 1: Third deadline to improve that offer.
Speaker 4: So the new deal now values the bank around seventeen
Speaker 4: billion euros, which is around one point six percent premium
Speaker 4: to the market value at Friday's close, and the previous
Speaker 4: offer valued it at around fifteen point five bill in euros,
Speaker 4: so quite quite an important boost there. The improved proposal
Speaker 4: is a shift in strategy because BBBA spent the last
Speaker 4: few months insisting there was really no need to sweeten
Speaker 4: the offer, and while Sabadel continued to say that the
Speaker 4: price was too low. But now BBBA seems to have
Speaker 4: changed his mind. It's actually driven the chas lower for
Speaker 4: both of those companies this morning. So it's unclear how
Speaker 4: why the market is not rewarding this potential m and
Speaker 4: a consolidation. But it seems BBVA changed its approach to
Speaker 4: avoid what happened the last time that it tried to
Speaker 4: buy Sabadel, which was five years ago, and that failed
Speaker 4: because of a disagreement over price.
Speaker 1: So now it's kind of changed its tuner bit of work.
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