Stellantis Rallies, ASML Up, Heineken Slows

On this episode of Stock Movers:
- Shares in automakers led a relief rally in European stocks on Monday after the US and EU agreed to a trade deal, with the bloc facing 15% tariffs on most of its exports, including cars.
- ASML and other European semiconductor equipment stocks gain after their key customer, Samsung, wins a contract to make AI chips for Tesla. Meanwhile, a US-EU trade agreement has staved off trade war fears, offering an additional boost to the sector after its two-week long slide.
- Heineken saw a decline in beer volumes, as retailer disputes across Europe dragged on sales and limited its ability to take advantage of the summer heat wave.

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Episode Transcript

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

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

Speaker 3 (00:17):
Now, let's look at some of the stocks on the
move today here in Europe. I'm Caroline Hepka and we're
joined bub Blomberg's Equities with porter Chloe Malay. Good morning, Chloe.
Let's start with Stilantis, which has rallied after the US
EU tariff agreement. Tell us a bit more about that.

Speaker 1 (00:32):
Yeah, so we've seen quite a big movement, quite a
big movement on the up across the car making sector
in Europe, and Stilanta's really led the charge as well
as Porsche. They've kind of been cited before as being
some of the car makers in Europe that are most
exposed to tariff and that tariff uncertainty because of their
manufacturing footprint and the supply chains as well. You know,
Stilante's obviously reported a surprise loss earlier in the season.

(00:55):
Porsche is reporting this weekend it is expected to to
cut its guidance due to tariffs. So both of those
companies are very exposed to it. But the news and
the clarity that this brings is really was really helpful
for the shares this morning, and we can see it
really kind of reassured investors. It might it Vanillis are
saying that it's kind of a double edged sword though,

(01:17):
because you know it is it allows for better planning,
but it also means that the tariffs are still above
pre Trump era, so that may impact competitiveness over the
long term, but that's maybe for later.

Speaker 3 (01:28):
Do Yeah, it's interesting. I mean also in car parts
manufacturers are off, but they're way down in terms of
the sector breakdown, so they're not really seeing the biggest gains.
Healthcares are more than one percent. Technology also are one
point four percent this morning. But the chip maker ASML
is one standout.

Speaker 1 (01:48):
Why Oh yeah, So ASML were on the back of
this trade deal as well. So across that chip making
sector we have seen we have seen gains, but for
a SML as well, it's also benefiting from something else,
Samsung's deal to provide chips to Tesla. So you know,
the cells of that semiconductor equipment could get a boost
because Samsung is ramping up that manufacturing capacity, ramping up

(02:10):
the output, and it really needs this equipment those machines
from ASML. So it's kind of a duke of good
news this morning for that stock, and that explains the
kind of investor enthusiasm around it.

Speaker 3 (02:23):
Yeah, they're going to be making yes, Tesla AI chips,
aren't they in a major deal that Elon Musk was
talking about too. Lastly, Heineken's beer sales have fallen. How
is the market thinking about this?

Speaker 1 (02:36):
Yeah, so Heineken was actually a bit of volatile this morning.
It's kind of settled now and it is down because
the results were a bit of a mixed bag. So
there was enthusiasm generally around the trade deal, but it
seems that investors were less excited about that and a
little bit more concerned about the fact that there's quite
weak beer sales. So beer volumes fell because of disputes

(02:58):
of a price increases with retailers, but also really weak
consumers bending and that that's a really big problem. It's
really weak in Europe and in the America's as well,
which are kind of key markets of course for Heineken
this year said that the beer markets have declined at
a pace that Heinegan has rarely seen before. So this
is quite concerning going forward. It did maintain its guidance

(03:19):
for the year, but that was not enough to reassure
the market.

Speaker 3 (03:22):
Okay, so that from Heineken. Now, Chloe, I can't help
but notice that your voice is a little huskier than
usual today. It is Were you out there shipping for
the football?

Speaker 2 (03:32):
Yes?

Speaker 1 (03:32):
I was, I was. I don't regret it, but I
do need I do need some honey and lemon, I
think now, Oh lovely stuff.

Speaker 2 (03:40):
The Stock Movers podcast from Bloomberg Radio. Check back with
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