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HSBC Down, On The Beach Falls, Leonardo Gains | Stock Movers

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HSBC Down, On The Beach Falls, Leonardo Gains | Stock Movers

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116 segments

0:02

Bloomberg Audio Studios podcasts, radio,

0:06

news.

0:08

>> The Stock Movers Report, your roundup of

0:11

companies making moves in the stock

0:13

market, harnessing the power of

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Bloomberg data. Well, let's take a look

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at some stocks on the move today in

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Europe. I'm Steven Carroll with Caroline

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Heepker and we're joined by Bloomberg's

0:22

breaking news editor, Louise Moon.

0:24

Louise, let's start then in the

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financial sector and some news from

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HSBC.

0:29

Yeah, well is is in terms of kind of the

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biggest uh stock move in London today.

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HBC is leading those declines on the

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Footsie 100. There was an interesting

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note from JP Morgan analysts saying that

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HSBC and Standard Chartered are the most

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exposed to the Middle East to the war in

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the Middle East. So for HSBC, the Middle

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East represents 4% of pre-tax profit and

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for Standard Chartered 12%. So both

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shares heavily down. It also said that

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you know while other European banks have

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more limited exposure um of course uh

1:02

the war is is weighing on the whole

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sector particularly today you look

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across Europe and banking is really uh

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weighing on on indexes across Europe.

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This is you know as of course oil is

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surging concerns that the war could

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disrupt energy markets for for a

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prolonged period and that's driving

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those moves across the broader market.

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worries that that will kind of rekindle

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inflation and weigh on economic growth

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and that's really weighing on the

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banking sector. But yeah, HSBC in

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particular leading those declines in

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London um on the back of that note and

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those wider concerns.

1:35

>> So European equities down today, but

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defense stocks uh are moving. Uh

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Leonardo in particular a major move

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higher. What's behind that?

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>> Yeah, Leonardo shares hitting a record

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this morning. So they've had their kind

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of own individual news. They set some

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new targets for 2030 with which analysts

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have described as bullish um in

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particular their their large kind of

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expectations for their order intake.

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They've laid out a new plan. So

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essentially Leonardo has had a few years

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of focusing on cutting down debt,

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improving their cash flow, and now

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they're they're turning to to what's

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forward. So they're putting at the core

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of of their aims going forward

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essentially they're putting defense

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electronics which are a higher margin

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defense electronics and network defense.

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So not just kind of standalone uh

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platforms but networking everything

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together as an offering. Um that is yeah

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as as I say that's that's what they're

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going to focus on going forward. and in

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particular defense electronics has been

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quite uh quite central to to uh what's

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being used in the Middle East um a lot

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of those systems. Uh so this is part of

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Leonardo you know taking a bigger piece

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of that pie of European military

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spending which has been on the rise um

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for the past couple of years. So their

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shares you know up almost 40% over the

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past year and as I say hitting a record

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today on those new aims and those new

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targets. Okay, so that's from Leonardo

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and the travel firm on the beach, uh,

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their shares also responding to the

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travel disruption.

3:10

>> Indeed. Yeah, it's absolutely, you know,

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slumping at the open, down 14% to the

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lowest since late 2024 for on the beach.

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They've suspended their guidance on the

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back of the Middle East um conflict. So,

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they're saying that while they have kind

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of limited exposure in particular to the

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Middle East, they've seen a significant

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slowdown, in their words, in demand. Um

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and there's a lot of uncertainty of

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course as to how long this will last. So

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they've seen a big slowdown in demand

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for places like Turkey, Greece, Cyprus,

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Egypt, they they named those four in

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particular. Um and of course this is

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this is as you know we've been speaking

3:46

about the past few days huge disruption

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to the travel industry. And then if you

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look at um airlines across the board

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still down today, I agui but yeah on the

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beach suspending guidance on the back of

3:57

that conflict. Um they have kept their

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mediumterm goals intact but but they are

4:02

seeing that slowdown in demand.

4:04

>> The stock movers report from Bloomberg

4:07

Radio. Check back with us throughout the

4:09

day for the latest roundup of companies

4:11

making news on Wall Street. And for the

4:13

latest market moving headlines, listen

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