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Let's look at some of the starts on the move today here in Europe. I'm Caroline Hepgar with Tom McKenzie, and we're joined by Bloomberg reporter Chloe Malay. Chloe, good morning, Good morning. Now let's think about what is happening in Europe and particularly for Ryan Matta, one of the defense stocks which is falling. This is always quite a difficult market correlation. The idea of peace in Ukraine actually is a setback for the defense name.
Yeah, absolutely very classic case of peace talks progressing and defense shares falling, and we have seen that for Ryan Mattel, but also other names like Hensalton and Leonardo this morning. So we are entering the second day of talks between Ukraine and the US in Berlin, and the big focus of the negotiations at the moment is around security are guarantees.
So Zelenski has hinted that Ukraine could actually back away from its long term goal of joining NATO and instead accept bilateral security guarantees from the US, Europe and other states including Japan. So this actually signals quite good progress on those peace talks, and as a result, we're seeing that weakness today in those defense as shares. So this is actually even despite the fact that even if we do have peace in Ukraine doesn't necessarily mean that the
countries will stop spending on defense. But there always seems to be that correlation in the market between news of peace and defense stocks prices.
Automaker stocks in focus as well this morning, the focus on climate change rules and maybe some adjustments from the EU yees.
So the EU is preparing to soften some of those rules around combuntion engine cars. So currently the rules are that the new combustion engine vehicles will actually be banned from twenty thirty five, but what the EU is considering now is either extend that deadline for five years or take the band filly off the table. So that would essentially allow those carmakers in Europe to transition to emission free cars over a longer period of time, and that
could be a relief for those companies. You know, European car companies have struggled to remain competitive and the removal of maybe some of that regulatory burden could help with that,
So that would be good breathing room. But then the risk is that it could actually slow development of some kind of new green technologies, slow also the reaching of some climate targets, and that could potentially widen the gap between what you know, US companies like Tesla can do in terms of technology versus what Mercedes Stellant's BMW etc. Could Have to offer here in Europe. So that has
to be taken into account as well. So there's some caveat to that, and that explains some gains in Stellantis this morning, but quite modest, actually modest gains in those shares. Hm.
Okay. Let's also think about the pharmaceuticals sector. Our Jenks has had an issue with one of its important drug trials.
Yeah. So RJX is a biotech company based in the Netherlands and it essentially has one flagship drug that I will not attempt to pronounce, but one flagship drug and that is used for a variety of applications for autoimmune diseases.
And the shares have actually rallied quite impressively over the last a few months because it's been able to get a lot of wins in terms of successful trials, but it has just encountered a big a setback, so it has it had to discontinue studies that were checking if it could use that flagship drug for a thyroage eye disease.
And so this rules out now a population of about one hundred thousand in the US, and that puts pressure on these sales ambition for twenty thirty and also puts a little bit more scrutiny on the results of other trials or other catalysts that are coming next year in kind of better use perhaps for RGENX. And multiple analysts have said that the share price weakness today is actually a buying opportunity, so they say that the fundamentals do
remain strong. It's kind of a temporary setback where we've seen a lot of weakness in the Chez VALSI.
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