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Let's take a look at some stocks on the move today in Europe. I'm Stephen Kroll with Lizzie Burdon, and we're joined by our reporter Chloe Melee. Chloe, good morning. Let's start with defense stocks, all trading lower, it appears this morning, this following the latest developments in the Ukraine talks and the possibility of some progress. Now you've been looking at Ryan Mettal in particular.
Yeah, absolutely, Ryan Mattau down more than four percent this morning. But we are seeing that weakness across all of those names like Hensoul to Tallis Bae this morning, because, as you say, there is now progress on those Ukraine pre stalks, and Trump has said that the end of the war is getting closer than ever, and Zelenski has said that he'd reached an agreement with the US to make security
guarantees legally binding. So now now all of that has been really pushing those defense shares lower, and now the focus is on the response from Putin, So the Russian Deputy Foreign Minister told ABC News that he is very confident, very much confident that the war is coming to an end, but they are still thinks to iron out, and he insisted that the territorial demands to remain unchanged from Russia's point of view, and so that is really going to
be a sticking point going forward for the negotiations because Ukraine has said that there had been no decisions on Ukraine giving up any land, but Trump is said that they would have to.
So they are still thinks to be figured out.
But the prospect of that piece deal is coming closer, much closer than perhaps previous efforts, and therefore we are seeing that weakness across the defense industry this morning.
You do wonder whether this is an overreaction, Chloe. If Russia isn't busy with Ukraine, the Baltics and the Nordics are going to have to rearm surely. And if Putin concludes that the West rolled over, then you know you've got other places in Europe that will be giving defense industry companies business. But we'll park that for a moment, and Lorque elsewhere to ubs moves upwards for them this morning tell us more about their quote highly attractive proposition, as one analyst put it.
Yeah, absolutely so.
Bank of America a List upgraded UBS to a bio rating, and they said that the Swiss bank will be able to grow earnings per share at the fastest pace of any bank globally, so that's why it's such a highly attractive proposition from UBS. And it also added the bank to its Europe one list, which is a list of the top European stock ideas for twenty twenty six. And Lisa said that the bank will be benefiting from the
wealth markets in Asia. But the big boost really is going is coming from the fact that there is currently well there's now a way out of the political standoff that we've seen between UBS and the Swiss government. So the government have been trying to tighten rules around the banking sector and that would have threatened UBS with twenty
six billion dollars in new capital requirements. But the latest that we had on this is that last week a group of Swiss lawmakers proposed watering down those capital demands that the country wanted to impose on UBS, and that sent the shares much.
Higher last Friday.
And now, according to Beck of America, analyst, This really is paving the way for compromise and that offers a way out for ubs and therefore is really making that stock, as we said, highly attractive.
So that's really the main thing.
And then finally today, Chloe, we've heard the news that the EU is moving to a band and its combuston engine ban. How a carmaker is doing after that news.
Pretty well, it's a big, big win for them.
So, as you said, we've got confirmation for something that we had talked about yesterday, so that you expected to abandon that ban on those combintion engined cars, and that was due to effect in twenty thirty five, So that essentially leaves car makers a little bit more time to transition to emission free vehicles and that removes obviously some of that regulatory burden, those regulatory costs that would have
come with that. There will still be some attempts at hitting some climate target, so a carmakers will need to compensate for that additional pollution by using low carbon or renewable fuels or locally produced green steel, and the tailpipe emissions will need to be reduced by ninety percent by the middle of the next decade. And the previous score was of one hundred percent, but I guess it's still
pretty high. But this is overall wink for carmakers that had been really lobbying against those rules, and it's also a signaled that there is this wider pullback from green policies that we started, that got started in the US, but that we can see now kind of spilling over into Europe as well.
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