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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 take a look at some stocks on the move

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Speaker 3: today in Europe. I'm Stephen Carroll with Lizzie Burton, and

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Speaker 3: we're joined by Bloomberg's Breaking News editor Louise Moon. Louise,

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Speaker 3: good morning. Let's start with defense shares then in Europe

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Speaker 3: lower after Deutsche Bank down grade. How are the likes

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Speaker 3: of BA Systems faring?

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Speaker 1: Yeah, exactly. So this is a note from Deutsche Bank

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Speaker 1: targeting three main defense stocks. We've got BA Systems, Tallis

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Speaker 1: and Leonardo. So they've this analysis cut the ratings across

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Speaker 1: the board from a buy to a hold. Now this

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Speaker 1: isn't necessarily saying that, you know, the defense sector as

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Speaker 1: a whole isn't fairing as well. It's given kind of

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Speaker 1: individual reasons for the different stocks. So for BAE, they

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Speaker 1: say they're likely to beat their for your expectations, that

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Speaker 1: they're noting what they call disappointing time margins, and they've

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Speaker 1: also noted affordability concerns in the UK and the US markets.

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Speaker 1: For Leonardo, for example, they say there's not much upside

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Speaker 1: the stock, they're saying doesn't deserve a premium compared to

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Speaker 1: other defense stocks just yet. And fora Taala's, they say

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Speaker 1: there's an absence of imminent catalysts, so more uncertainties, particularly

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Speaker 1: around the French defense budget. They say they're lagging in

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Speaker 1: their cyber unit. So some individual reasons that they're pulling

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Speaker 1: down these ratings for the different for the different defense stocks.

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Speaker 1: If you look at them on a more kind of

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Speaker 1: a wider basis, if you look at the analyst ratings,

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Speaker 1: most of them are still they do still have a

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Speaker 1: majority of buy ratings. But interestingly, there have been a

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Speaker 1: couple of downngrades across the board over the past few

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Speaker 1: months or so. We'll be keeping an eye on those.

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Speaker 1: But obviously this is coming after defense has enjoyed a

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Speaker 1: huge rally on the back of this rise in spending.

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Speaker 1: So yeah, an interesting note there from deutsch Bank.

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Speaker 4: And yet still perhaps surprising given the geopolitical cubult with

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Speaker 4: which we've started twenty twenty six. I want to turn

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Speaker 4: to a very different sector, and that is because Diagio,

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Speaker 4: I'm going to say the script says could be thirsty

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Speaker 4: for an asset sale. I'll tell us Rollery.

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Speaker 2: Yeah.

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Speaker 1: So Diagio obviously the drinks giant in the UK, reviewing

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Speaker 1: options for their China assets and potentially that could include

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Speaker 1: a sale. So this is a Boomberg exclusive this morning.

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Speaker 1: They're working with Goldman and Ubs. They're essentially kind of

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Speaker 1: sounding out local buyers and private excy firms and obviously

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Speaker 1: no certainty a deal or any deal will come about,

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Speaker 1: but this is what's being spoken about. One of their

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Speaker 1: biggest assets over in China is a company called Suchuan

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Speaker 1: Swell Fung. They're known that they're listed already in Shanghai.

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Speaker 1: They're known in particular for bai Joh, which is a

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Speaker 1: Chinese liquor and one of the kind of drinks big

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Speaker 1: drinks companies in China. They've got a current market valuation

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Speaker 1: of about two point seven billion, so a big company.

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Speaker 1: You know, if this resulted in a sale, potentially some

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Speaker 1: big sums. They're for Yagio, And it kind of comes

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Speaker 1: in the context of two main reasons. So you know, firstly,

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Speaker 1: a lot of international brands are pulling out or reviewing

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Speaker 1: their portfolios in China. There's a lot more domestic and

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Speaker 1: growing domestic competition there. So, for example, Starbucks sold their

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Speaker 1: majority stake in their business relatively recently, and then on

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Speaker 1: theago's side, they've also globally been trimming down their portfolios.

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Speaker 1: So for example, they recently sold their arm, their East

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Speaker 1: African brewery arm that as there. You know, drinking habits

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Speaker 1: are changing. They're also struggling to get consumers to buy

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Speaker 1: more expensive drinks, so trading up and so their strategy

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Speaker 1: is to trim down and focus on their call. They've

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Speaker 1: got a new CEO that started this month and he's

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Speaker 1: known for having in the past turn Tesco around, so

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Speaker 1: he's kind of been tasked. We're turning the Iago around.

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Speaker 1: So yeah, the latest news is that they're reviewing options

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Speaker 1: for their China assets. We'll be keeping an eye to

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Speaker 1: see if and when this results in any sort of sale.

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Speaker 3: Okay, and news too from Raspberry Pie and the UK

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Speaker 3: shares hitting a record low earlier.

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Speaker 1: What's yeah, so shares slumping below the IPO price. So

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Speaker 1: Rasbery probably became known for listing in twenty twenty four

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Speaker 1: as at the time one of the few companies that

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Speaker 1: was listing in London's they're obviously the computer maker so

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Speaker 1: they had strong results, but this is being kind of

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Speaker 1: overshadowed by, at the same time, a warning saying that

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Speaker 1: the rapid increase in costs of a certain type of

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Speaker 1: memory chip is well, costs are increasing, this could potentially

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Speaker 1: weigh on the company. More supplies obviously being funneled into

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Speaker 1: other things as demand increases, like AI data centers. So

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Speaker 1: they're saying they have enough to meet demand in the

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Speaker 1: first half, but visibility in the second half is limited.

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Speaker 1: So yeah, as I say, record record low for them.

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Speaker 1: Shares slumped around ten percent this morning.

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