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: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll with Caroline Hepger
Speaker 3: and were joined by Bloomberg proporter Chloe Mela for more.
Speaker 2: Chloe, good morning.
Speaker 3: Let's start with the news out of France than the
Speaker 3: French Prime Minister Sebastian Lacorne, who has just resigned. We
Speaker 3: had French banks in focus before that, and I imagine
Speaker 3: even more so now.
Speaker 4: French banks STIG, ALBNP, Creteggricol, as well as some construction
Speaker 4: companies like Vincey and if I were already down this
Speaker 4: morning on the back of expectations that the French government
Speaker 4: would be on the brink of collapse, and now, of
Speaker 4: course the resignation is creating that added weakness. The French
Speaker 4: cocount has already been outperforming underperforming sorry at European piers
Speaker 4: since the snap election called by EMANUELA Corn last year,
Speaker 4: and this will probably not help any further. French stocks
Speaker 4: with domestic exposures are really the ones to watch there,
Speaker 4: So banks and construction, as I said, they're reacting quite
Speaker 4: negatively to this because it points to kind of more
Speaker 4: political instability, French bonds falling even more out of favor,
Speaker 4: and a continued budget deadlock as well. And then small
Speaker 4: caps and midcaps are also to watch because of also
Speaker 4: that domestic exposure as well. So we'll see how this
Speaker 4: pans out. But probably not a good morning this morning
Speaker 4: for those French stocks.
Speaker 1: Yeah. Indeed the cat carn't down one point nine percent
Speaker 1: in the first hour of European trading, so we'll continue
Speaker 1: to think about that for French stocks. Then, yes, as
Speaker 1: you say, banks and others down significantly, a moment to
Speaker 1: think about what's happening elsewhere in terms of Aston Martin.
Speaker 1: That's the other big mover downwards today.
Speaker 4: Yeah, so fail massively for as a Martain today because
Speaker 4: it cut its outlook for the second time this year.
Speaker 4: So first time was over the summer in July, and
Speaker 4: so it cuts out this morning. Blaming tariffs and also
Speaker 4: broader economic challenges. It's said, in particular with regards to
Speaker 4: the tariff that the quota system in the US, which
Speaker 4: cuts duties on up to one hundred thousand UK made cars,
Speaker 4: but then leaves any additional exports facing the higher rate,
Speaker 4: so that quota makes it really hard for British car
Speaker 4: makers to plan production and forecast as sales. So it
Speaker 4: blamed that in particular, it expects now sells to fall
Speaker 4: because of that weakness in the US but also in Asia,
Speaker 4: and expects profits to come in below the lower end
Speaker 4: of expectations despite cost control and raining in a capital spending.
Speaker 4: This is of course another below to the car industry
Speaker 4: in the UK. We obviously have the cyber attack that
Speaker 4: is continuing to idlink production in foot Jaguar len Rover,
Speaker 4: and also indicates really this broader slow down the luxury
Speaker 4: end of that car market.
Speaker 1: You know.
Speaker 4: Portion Mercedes have also flegged that there is a softer
Speaker 4: demand in markets like the US in China because of
Speaker 4: trade tensions kind of weighing on that consumer confidence. So
Speaker 4: that's really driving down the shares for US and Martin
Speaker 4: this morning.
Speaker 3: Well let's stay with auto stocks and actually one of
Speaker 3: the few shares that is rising on the cat Carn't
Speaker 3: today although less than it was a few minutes ago,
Speaker 3: Chloe Stilantis planning some major investments.
Speaker 4: Yeah, very different story for Silanta so up this morning
Speaker 4: because it is said to be planning about ten billion
Speaker 4: dollars of investments in the US. So this is part
Speaker 4: of the new CEO strategy of kind of refocusing on
Speaker 4: that key US market after previous management had decided instead
Speaker 4: to invest heavily in Europe and move production to companies
Speaker 4: like Mexico, for example, and of course that made Silanti's
Speaker 4: very vulnerable to tariff. So the investment in the US
Speaker 4: that really mirrors other moves by companies that we've seen
Speaker 4: trying to kind of woo Trump and gain exemptions from
Speaker 4: tariff by building those manufacturing facilities in the country. So
Speaker 4: we've seen, for example, in pharmaceuticals GSK and Ashra Zeneca
Speaker 4: announcing those major investments, and Silantis is planning this move
Speaker 4: at the same time as it's been lobbying the administration
Speaker 4: to waive or potentially soften the twenty five percent tariff
Speaker 4: that would affect its operations in Mexico. And so this
Speaker 4: move to kind of woo Trump has been welcomed quite
Speaker 4: warmly by the market and the shes We're up on
Speaker 4: the back of that this morning.
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