1 00:00:02,520 --> 00:00:08,840 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market, harnessing the power of Bloomberg data. 4 00:00:17,680 --> 00:00:19,159 Speaker 1: Let's take a look at some of the stocks on 5 00:00:19,200 --> 00:00:21,920 Speaker 1: the move today in Europe. Were joined by our equities 6 00:00:21,960 --> 00:00:25,239 Speaker 1: reporter Joe Easton for more. Joe, We're going to start 7 00:00:25,239 --> 00:00:27,040 Speaker 1: with European banks today. 8 00:00:27,240 --> 00:00:27,720 Speaker 2: How are they? 9 00:00:27,880 --> 00:00:29,240 Speaker 1: Should we be banking on banks? 10 00:00:29,880 --> 00:00:33,639 Speaker 3: We should be banking on banks, very very very good. 11 00:00:33,680 --> 00:00:35,240 Speaker 3: I'm trying to think where I can go with that 12 00:00:35,240 --> 00:00:38,120 Speaker 3: that pun I think I'll I'll probably have to come 13 00:00:38,120 --> 00:00:40,680 Speaker 3: back on that one. But the stocks hundred Banks index 14 00:00:40,800 --> 00:00:43,720 Speaker 3: surge in twenty five percent year to date. That is 15 00:00:43,800 --> 00:00:47,559 Speaker 3: the best three months since twenty twenty, so since pre 16 00:00:48,200 --> 00:00:53,000 Speaker 3: pandemic days. Now this is kind of twofold in terms 17 00:00:53,000 --> 00:00:56,880 Speaker 3: of the reasons. So the macroeconomic outlook improving slightly, given 18 00:00:57,360 --> 00:01:00,280 Speaker 3: hopes around the potential ceas far in Ukraine been a 19 00:01:00,320 --> 00:01:02,880 Speaker 3: key driver, so potentially a better outlook for loans. And 20 00:01:02,920 --> 00:01:06,640 Speaker 3: then also where we've had this big spending announcement, particularly 21 00:01:06,680 --> 00:01:09,479 Speaker 3: from Germany and a couple of other for governments, mainly 22 00:01:09,520 --> 00:01:13,039 Speaker 3: in Germany, that's actually pushed up the price of government debt, 23 00:01:13,319 --> 00:01:16,360 Speaker 3: and that feeds through into the money that banks have 24 00:01:16,600 --> 00:01:20,680 Speaker 3: hedged in all of their fixed income holdings, and therefore 25 00:01:20,720 --> 00:01:23,120 Speaker 3: they are going to see a big tail wind from 26 00:01:23,160 --> 00:01:27,040 Speaker 3: that increasing yields playing into their profit and loss accounts, 27 00:01:27,240 --> 00:01:29,399 Speaker 3: and also at the same time probably a bit better 28 00:01:29,400 --> 00:01:31,520 Speaker 3: in terms of the loan outlook and potentially the home 29 00:01:31,560 --> 00:01:34,320 Speaker 3: market as well. So it's a double boost for the sector. 30 00:01:34,400 --> 00:01:36,920 Speaker 3: And banks really the place to be, however, a little 31 00:01:36,959 --> 00:01:40,240 Speaker 3: bit lower today given that it is quarter around and 32 00:01:40,240 --> 00:01:42,959 Speaker 3: people booking a few profits will be the last day 33 00:01:42,959 --> 00:01:44,880 Speaker 3: of the quarter on Monday, so we're actually seeing the 34 00:01:44,920 --> 00:01:49,000 Speaker 3: best performing sectors declining, like banks, defense, etc. But broadly 35 00:01:49,240 --> 00:01:50,600 Speaker 3: it has been a good start of the year for 36 00:01:50,640 --> 00:01:51,120 Speaker 3: that sector. 37 00:01:51,280 --> 00:01:54,320 Speaker 4: Yeah, and Bank of America's latest survey did point to 38 00:01:54,360 --> 00:01:59,360 Speaker 4: investors increasing their exposure to European banks now European car 39 00:01:59,480 --> 00:02:02,720 Speaker 4: giants that have been stung, of course by Trump's auto 40 00:02:02,840 --> 00:02:07,680 Speaker 4: tariffs twenty five percent import tariff. But Barkley's says that 41 00:02:07,760 --> 00:02:12,680 Speaker 4: it still expects the prancing horse I Ferrari to gallop 42 00:02:12,760 --> 00:02:16,680 Speaker 4: to more games. Yeah, I mean there's one. I mean, 43 00:02:16,680 --> 00:02:19,760 Speaker 4: it's only one bit of good news in the European 44 00:02:19,800 --> 00:02:21,160 Speaker 4: auto space, though, isn't it. 45 00:02:21,400 --> 00:02:23,720 Speaker 3: Yeah, yeah, No, it's not been a not been a 46 00:02:23,720 --> 00:02:26,640 Speaker 3: great time for autos, has it at all? With getting 47 00:02:26,639 --> 00:02:28,800 Speaker 3: the news, of course from Trump that they're going to 48 00:02:28,800 --> 00:02:31,400 Speaker 3: do twenty five percent tariffs on auto's and that has 49 00:02:31,440 --> 00:02:35,920 Speaker 3: really hit the entire sector. But Ferrari, given its premium 50 00:02:35,960 --> 00:02:39,919 Speaker 3: offering and really unique market in terms of its clientele, 51 00:02:40,000 --> 00:02:42,919 Speaker 3: that is seen as essentially a safe haven. So today 52 00:02:42,960 --> 00:02:47,160 Speaker 3: we've got analyst at Barkley's and also Kepler Chevro both 53 00:02:47,240 --> 00:02:50,160 Speaker 3: upgrading their ratings on the stock to buy, both saying 54 00:02:50,160 --> 00:02:52,440 Speaker 3: exactly that in terms of being a bit of a 55 00:02:52,480 --> 00:02:55,640 Speaker 3: haven trader. We actually saw Ferrari yesterday come out and 56 00:02:55,680 --> 00:02:58,280 Speaker 3: reiterate their financial guidance, and that was seen as a 57 00:02:58,360 --> 00:03:01,600 Speaker 3: really re emphasizing the fact that this company is kind 58 00:03:01,639 --> 00:03:06,079 Speaker 3: of immune to the downturn because when the average pocket 59 00:03:06,120 --> 00:03:10,200 Speaker 3: is being squeezed, people buying Ferraris probably aren't as her 60 00:03:10,360 --> 00:03:12,720 Speaker 3: as the rest of the population, is the general thesis, 61 00:03:12,880 --> 00:03:17,000 Speaker 3: and therefore Ferrari outperforming stock up another three percent this morning. 62 00:03:18,000 --> 00:03:21,520 Speaker 1: Okay, well it is Friday. Neither of us addressed particularly casually, though, Joe, 63 00:03:21,600 --> 00:03:23,400 Speaker 1: I mean, you're in a full suit. So you're definitely 64 00:03:23,400 --> 00:03:24,840 Speaker 1: not picking up on the the app. 65 00:03:25,000 --> 00:03:27,880 Speaker 3: To take my tie off. I'm slamming slightly. 66 00:03:28,160 --> 00:03:31,519 Speaker 1: That's the sort of respect we expect in the studio, Joe. 67 00:03:32,000 --> 00:03:37,680 Speaker 1: We're thinking about app leisure clothing stocks. We had the 68 00:03:37,680 --> 00:03:39,800 Speaker 1: disappointing numbers out of Lulu Lemon, looking at the pre 69 00:03:39,880 --> 00:03:42,800 Speaker 1: market numbers of Lula Lemmon this morning, down eleven point 70 00:03:43,040 --> 00:03:46,080 Speaker 1: nine percent in the US. But what's the European knock 71 00:03:46,120 --> 00:03:46,360 Speaker 1: on of that? 72 00:03:47,160 --> 00:03:49,480 Speaker 3: Yeah, so we've seen a bit of weakness in shares 73 00:03:49,520 --> 00:03:52,000 Speaker 3: of Added Ass and Puma, both of those stocks dropping 74 00:03:52,000 --> 00:03:56,520 Speaker 3: around two percent in early trading in Europe. So, of 75 00:03:56,560 --> 00:03:59,280 Speaker 3: course Lulu being a big company in the US, but 76 00:03:59,320 --> 00:04:01,360 Speaker 3: also the rest of the on both those films do 77 00:04:01,480 --> 00:04:05,440 Speaker 3: have massive US exposure. So as a reminder, Lulu last 78 00:04:05,480 --> 00:04:08,480 Speaker 3: night coming out and saying that sales will only reach 79 00:04:08,560 --> 00:04:11,080 Speaker 3: about eleven billion dollars for the year sounds like quite 80 00:04:11,080 --> 00:04:13,440 Speaker 3: a lot, but actually that's a lot lower than Wall 81 00:04:13,440 --> 00:04:16,560 Speaker 3: Street had actually said. And they've also warned that a 82 00:04:16,600 --> 00:04:19,800 Speaker 3: lot of their shops are seeing fewer numbers in terms 83 00:04:19,839 --> 00:04:23,200 Speaker 3: of footfall, particularly in America, and they say that's a 84 00:04:23,320 --> 00:04:26,240 Speaker 3: key indicator of where their sales are going. Therefore, the 85 00:04:26,279 --> 00:04:30,120 Speaker 3: stock absolutely hammered in the European pre market as you 86 00:04:30,200 --> 00:04:32,919 Speaker 3: mentioned there, Stephen, and seeing a feed through into the 87 00:04:32,960 --> 00:04:36,520 Speaker 3: European names. Puhmann added, us notably weak at given given 88 00:04:36,520 --> 00:04:39,160 Speaker 3: the softness coming over from Lulu overnight. 89 00:04:39,839 --> 00:04:43,960 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 90 00:04:44,040 --> 00:04:46,800 Speaker 2: us throughout the day for the latest roundup of companies 91 00:04:46,839 --> 00:04:49,920 Speaker 2: making news on Wall Street and for the latest market 92 00:04:49,920 --> 00:04:54,320 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 93 00:04:54,360 --> 00:04:57,599 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Otto with 94 00:04:57,680 --> 00:04:59,119 Speaker 2: the Bloomberg Business app.