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The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.
Let's look at some stocks on the move today. Here in you have, I'm Caroline Hepge along side of Bloomberg Reportacloim Malay.
Good morning.
BMW declining quite significantly. I've been talking about Germany's industrial production figures. There's been a big hit to the German auto makers. Why is BMW particularly bad today.
Well, just last night it lowered its outlook, cut its guidance due to tariff costs and then also a continuation of week sales in China, and China is a big market for those carmakers, but European manufacturers are really struggling to compete with the cheaper Chinese manufacturers that are really
gaining attraction there. And of course those weekses in China are also compounded by weeks sales in Europe and in the US, where you know, we've got demond for luxury cars in particular that BMW makes, which is very.
Low at the moment.
You know, we saw a Porsche flagging that weakness for the luxury electric vehicles that it makes just a couple of weeks ago. So this really shows that the German car industry, which is very reliant on exports, is going to be facing kind of continued challenges going forward. Another thing worth mentioning is that BMW now expects to be reimburst custom duties next year instead of twenty twenty five. And that's, you know, after the US lower tariffs retroactively
to August first. So the guidance car definitely is driving the shares down today. We'll see how much more of these we get in that car making sector as the earning season progresses.
Yeah. Absolutely. BMW share price down well over six percent in the first hour of European trading. Arsalin Mittal, though, has some better tariff news.
Yeah, absolutely so. Osla Matal a steel company, a steel maker, so it was placed on positive catalyst watch at City and that's because the company will benefit from the European Union's plan to restrict foreign steel imports. So essentially the EU is mirroring the policy from the US, which currently
imposes fifty percent tariffs on those steel imports. So City analysts said that those measures should be very supportive to that European steel industry, which was one of the first sectors that Trump had singled out when he started and started slaffing those tariffs to all of the different industries, and that was obviously reflected in the shares kind of
tumbling across that steel industry. But hopefully this plan will turn things around for Aslo Matel Specifically, it has a thirty percent European market share, so more steeled shipments could translate into a profit boost up to seven fifty million dollars, which is not negligible of course, so that's quite positive for that company.
Now, interesting that overall European stocks after the first hour are actually up this morning. But ASML shares have been hit hard. Why Yeah, quite badly.
This, my ASML is because of the announcement of a US probe into semiconductor exports to China. So lawmakers in the US said that ASML, but also other companies like Tokyo Electron Applying Materials and Land Research, had fueled semiconductor manufacturing in China and made sizeable return selling equipment to
Chinese state owned and military linked companies. And the statement from that committee said that semiconductor development in China is a threat to US national security, so this could mean potentially even more export restrictions, which could hurt sales for ASML and those peers that I mentioned. This is a big setback for SML because it has really, it had
really benefited recently from quite positive newsflow around AI. Recently there were quite new high profile partnerships like the deal between AMD and open Ai, for example, and just quite generally bullish sentiment around that sector. But obviously this is a bit of a setback for SML. It's really really hit the shares. As you said this morning.
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