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Well, let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Caroline Hepcker, and we're joined by Bloomberg's Breaking News editor Louise Moon. Luise, let's start then in the financial sector and some news from HSBC.
Yeah, well it is in terms of kind of the biggest stock move in London today, HSBC is leading those declines on the foot Sea one hundred. There's an interesting note from JP Morgan analysts saying that HSBC and Standard Chartered are the most exposed to the Middle East, to the war in the Middle East. So if HSBC the Middle East represents four percent of pre tax profit and for Standard Chartered twelve percent, so both shares heavily down. It also said that, you know, while other European banks
have more limited exposure. Of course, the war is weighing on the whole sector. Particularly day you look across Europe and banking is really weighing on indexes across Europe. This is you know, as of course, oil is surging, concerns that the war could disrupt energy markets for a prolonged period, and that's driving those moves across the broader market. So worries that that will kind of reconder inflation and weigh on economic growth, and that's really weighing on the banking sector.
But yeah, HSBC in particular leading those clients in London on the back of that note and those wider concerns. So European inequities down today, but defense stocks are moving, Leonardo in particular, a major move higher. What's behind that, Yeah, Leonardo shar is hitting our record this morning. So they've had their kind of own individual news. They set some new targets for twenty thirty, which analysts have described as bullish.
In particular, they're large kind of expectations for their order intake. They've laid out a new plan. So essentially, Leonardo has had a few years of focusing on cutting down debt, improving their cash flow, and now they're turning to what's forward, So they're putting at the core of their aims going forward. Essentially, they're putting defense electronics, which are at a higher margin. Defense electronics and network defense, so not just kind of
standalone platforms, but networking everything together as an offering. That is, yeah, as I say, that's that's what they're going to focus on going forward, and in particular, defense electronics has been quite quite central to what's being used in the Middle East, a lot of those systems. So this is part of Leonardo, you know, taking a bigger piece of that pie of European military spending, which has been on the rise for
the past couple of years. So their shares you know, up almost forty percent over the pasty and as I say, hitting a record today on those new aims and those new targets.
Okay, so that's from Leonardo and the travel from on the Beach. Their share is also responding to the travel disruption.
Indeed, yes, absolutely, you know, slumping at the open down fourteen percent to the lower since late twenty twenty fourth on the beach they've suspended their guidance on the back of the Middle East conflict. So they're saying that while they have kind of limited exposure in particular to the Middle East, they've seen a significant slowdown in their words, in demand and there's a lot of ancesty of course
as to how long this will last. So they've seen a big slow down in demand for places like Turkey, Greece, Cyprus, Egypt. They named those four in particular. And of course this is as you know, we be speaking about in the past few days, huge disruption to the travel industry. And then if you look at airlines across the boards still down today. Ig was Air Tui. But yeah, on the beach to spending guidance or on the back of that conflict.
They have kept the medium turn goals intact, but but they are seeing that flow down into pond.
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