BHP Gains, Danone Tariffs, Harbour Energy Deal

On This episode of Stock Movers:
- BHP and other miners are up as gold rose to an all-time high, as escalating geopolitical tensions and bets on further US rate cuts added momentum to the best annual performance in more than four decades.
- Dairy makers are being hit after news that China will impose preliminary anti-subsidy duties of 21.9% to 42.7% on certain dairy products imports from the European Union from Dec. 23, according to a Ministry of Commerce statement.
- Harbour Energy agreed to acquire LLOG Exploration Co. for $3.2 billion, marking the UK company’s entry into the deepwater US Gulf of Mexico.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio News.

Speaker 2 (00:08):
The Stock Movers Report, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:16):
Let's talk a little bit about these stocks on the
move today here in Europe. I'm Caroline Hepget and I'm
joined by Breaking News editor Louis Moon. Louis good to
speak to you. Let's drill down into some of the
gains that we're seeing in the mining space this morning,
even though the overall European market is down.

Speaker 1 (00:33):
Indeed, yes, so mining stocks are really gaining from this
rallying commodities that we're seeing. So gold, silver, copper all
hitting record highs. You know, copper's approaching twelve thousand dollars
a ton, and mining stocks are gaining on the back
of this, particularly those with quite significant exposures copper. So
the likes of in London, BHP, Ria, Tinto, Anglo American

(00:56):
all higher on the back of this. And if you
look at the foot ye hundred, you know, mining stocks
as a whole are leading the index, so really rallying
on the back of that commodity's gains.

Speaker 3 (01:09):
Okay, so that's interesting. We're also milking you for stocks news.
You're looking at EU dairy giants.

Speaker 1 (01:15):
Why well, so so China has imposed duties on certain
dairy products that are being imported from Europe. So these
duties are up to forty two point seven percent, so
pretty high. And that's after they add a probe into
the sector and found that. They say that they found that,

(01:36):
you know, some of these dairy products were subsidized. They're
the ones that are being imported from Europe. So this
is going to be imposed from tomorrow and it's kind
of the latest a in a bit of a tip
tap trade dispute between China and the EUS. So if
you look at the Chinese side of things, their related
stocks are doing well on the back of this news.
But obviously if you look at the likes of dan
On Nesle in Europe, both are very exposed to the

(01:58):
Chinese market. Both down on the back of this. So
dan On more so about one point five percent last
time I checked just just a minute ago, and Nesle
also down almost one percent as well, So both into
the red on the back of those those duties that
will be imposed from China.

Speaker 3 (02:16):
As off tomorrow. Yeah, there's been a real tip for
tat hasn't there between the EU and China. VU in
October imposing taras or electric vehicles from China as high
as forty five percent. So now there's dairy tariffs going
the other way. Okay. We also mentioned the other the

(02:36):
other commodities that are gaining, and that is oil. And
you have Harbor, which is a big UK oil company
looking abroad. Tell us a bit about that story.

Speaker 2 (02:46):
It is Yees.

Speaker 1 (02:47):
So it's one of the largest oil and gas companies,
one of the largest producers in the UK North Seat,
so a big player on this side of the pond.
They announced a big deal this morning. So they're buying
a company that's called Lelog Exploration. That's for three point
two billion US dollars, so two point seven billion will
be in cash and then five hundred million in voting shares.
So this company is it's a oil and gas company

(03:11):
in the US golf of Mexico. So this, as you say,
this is hard our energy expanding more abroad. They've been
adding operations abroad. You know, as the North Sea goes
into decline, there's high taxes, high windfill texas from the
UK government. There's been a lot of consolidation in the space,
and they've been establishing more units away from that, so
the likes of Norway and Argentina as well. So this

(03:31):
is their entry into the US Golf of Mexico. So
that's expected to complete in the first quarter of next
year of twenty twenty six. So, I mean, on the Facebook,
it looks quite positive, and there was an also a
note from Blombugo Intelligence saying, you know, there's strong strategic
rationale for this. It delivers a bit of a portfolio rebalancing,
as I kind of mentioned, towards the Gulf of Mexico,

(03:52):
which offers higher margins. You know, it reduces exposure to
the UK, so all of those factors. But if you
look at their stock, it was actually down on the news,
down about seven percent into the red, and traders are
saying this could be to do with the size of
the debt they're taking on to finance this deal. So
we'll be watching for for any more details or you know,
how the stock continues to react from that. But it's

(04:12):
a yeah, a play from harbor energy out of the UK,
pushing and diversifying the portfolio more.

Speaker 2 (04:19):
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