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The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
Well, let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll and I'm joined by Bloomberg reporter Chloe Malei Choch. Good morning. Let's start with two companies that could form the world's biggest miner.
Yeah, Saria Tinto and Glencore are in talks to create the world's largest mining company. This is coming a little over a year after initial talks had actually failed between those two companies, and it also comes at a really interesting time in the mining industry where companies are wanting to do more and more deals because they want to
gain more and more access to copper. So copper is metal that's really really in demand at the moment because it's really really essential to the energy transition to the AI boom as well, and it has been hitting a new record highs lately because they are growing concerns about whether or not there will be enough supply. So this potential deal between glen Core and Reintindo would mean creating
this kind of copper mining giant. But they are big hurdles to consider as well, and that might be explaining why we had some weakness in Rio's shares actually this morning, even though glen Core shares arose quite impressively. So the three kind of big challenges to think about are the core of business from glen Core, so that's the business that's really important for glen Corbert Reatinto has actually exited its coal business to refocus on iron ore and copper,
so there's a little bit of a difference there. There's also the need to get regulatory clearance across more than eight jurisdictions, and then there's also the problem of Rio having a dual listed company structure, which is really complicating
at the potential for an all share transaction. So there's a few things to consider here, some details to be ironed out, and analysts have said that also the ultimate size of the deal be a little bit smaller than expected because this all asset combination that's being talked about appears a little bit more unlikely because of those challenges. So there's a lot more developments to keep an eye on.
Yeah, indeed, and the share price movement of interest to gancre oup a eight point six percent, Riotento down one and a half percent in London. Let's turn next to some interesting upgrades that have come from BMP.
Yeah, so BNP a Paraba has been kind of been investors in analysts good graces lately, so JP Morgan upgraded the company today, saying it is likely to see improved profitability and saying also that there are fewer concerns now about the capital level at the French bank and that's company that needs that capital to cover some litigation risks.
And JP Morgan analyst said that this is all thanks to recent management initiatives and that it's really time to kind of get in on what they called the cheapest bank in Europe. And this is also be bnp second upgrade this week. We also had UBS upgrading the stock just a couple of days ago, saying that the evaluation was really cheap at the moment and also noted the same as JP Morgan analysts that the capital situation was improving
for BNP. So those two upgrades come a quite interesting time for the bank, given that it has just lost a bid to throw out a verdict against it which essentially accused it of funding a regime in Sedan that committed human rights abuses, and that means that now BNP is actually more likely to have to pay a big settlements,
which is where that stronger capital comes in. But it seems that from analyst perspective, those litigation risks are not they're not they're not going to be too bad for BNP, and that that profitability is going to be much better and therefore we've got those upgrades.
Okay, Well, staying in France, let's turn to Loreal. Let's shairs are five percent higher this morning, investors deciding they're worth it.
Yes, absolutely, and that's because Ubs upgraded Loreal this morning, saying that the sales are expected to grow quite strongly going forward. And this is a company that has seen quite a lot of ups and downs over the last year over twenty twenty five. It's part of the cosmetics industry, of course, which obviously had to deal with a few challenges last year, including tariffs, but also really quite muted
consumer confidence. But analysts seem a lot more optimistic about Loreal's prospects for this year, and Bloomberg Intelligence as well, for example, said that the company's expansion in emerging markets and a lot of product innovation as well would be a big boost for twenty twenty six, and also saying that there's going to be a renewed focus on affordability going forward because of course the consumer confidence a problem hasn't really gone away and will continue for this year.
But it seems that analysts and investors are quite optimistic that Loreal will be able to stand out in this industry this year.
The Stock Mover's Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.