Volkswagen Jumps, Daimler Truck Cut, Rockhopper Exploration Dips

0:00Here are 5 Reasons to Subscribe to Bloomberg News Now. 5. You Get the Latest News From Around the World Instantly 4. It saves you time. Your day's busy. Catching up takes just a few minutes. 3. It's available 24 hours a day whenever you need it. 2. It's Convenient. Listen on your smartphone or smart speaker. 1. It's Easy to Find. Subscribe on Apple Podcasts, Spotify or anywhere you listen. 5. Reasons. Stay on top of the news. Bloomberg News Now. Bloomberg Audio Studios. Podcasts, Radio, News. The Stock Movers Report. Your Roundup of Companies Making Moves in the Stock Market. Harnessing the Power of Bloomberg Data. Let's take a look at some of the stocks on the move today in Europe. I'm Lizzy Birdon alongside Stephen Carroll. We're joined by Bloomberg reporter Chloe Mele. Chloe, we have some news out of Volkswagen today. Talk us through what they've announced and the investor reaction so far seems positive.

1:02Yes, absolutely very positive. I think a big sigh of relief as well for management because the supervisory board has backed the massive restructuring plan, which includes 50,000 additional job cuts and also big changes to the car lineup that will result in much fewer models. This big restructuring was proposed by the CEO as a way to get the company back on track after years of sales declining and costs ramping up. Also the company dealing with particular weakness in the Chinese market because of the competition in that particular market, but also all of those Chinese car makers making their way as well into Europe and gaining market share there. There were quite a lot of challenges ahead for the CEO in trying to get that plan moving with a lot of pushback in particular from Labor unions. The fact that it got the backing that it needed that gives the CEO now a very clear mandate and that led the shares much higher this morning and overall investors and analysts are very positive on the restructuring plan with city analysts in particular calling it brave.

2:11So we'll see if it actually delivers what it's planning to deliver less positive investor reception though for and use from Daimler truck what's going on there. Yes, so don't try falling this morning a little bit after Morgan Stanley downgraded the stock. So that's not really because of fundamentals. So they said that there's a strong North American market that has meant that the North American margin trajectory is going to be very positive. And they also increased the price target and the estimates for earnings over 2027 and 2028. But they just said that the recent rally in the sector makes truck stocks a lot less attractive now. You know, share of Daimler up more than 20% this year. It's doing a lot better than it was in 2025. 2025 was really marked by tariffs. But this year has been a lot better after all of those companies in that truck sector tried to sort of adapt to this new tire framework by making more parts in the US for instance. And that's led Daimler to raise its outlook at the latest results.

3:14But from Morgan Stanley analyst perspective, the environment is positive, but there is actually not much further for the stock to go. And so we are seeing that impact the shares a little bit this morning. Now Chloe, I had been scratching my head as to what rock hopper does, but the name's on the tin. Obviously, it's an offshore oil exploration company. And then we've got the Falklands tensions heating up. So how is it moving off the back of those tensions? Yes, it's quite an interesting story. So yeah, rock hopper exploration, quite a small UK listed company working to extract oil around the Falkland Islands. And it's a project known as the sea lion project. And it's getting quite hard to hit quite hard today because tensions as you mentioned are revving up between the UK and Argentina over the Falklands more than 40 years after the Falklands war. So the Argentinian president, Javier Millay is now targeting a new oil project in the disputed area to try and revive his popularity at home. It also said that he would speed up sanctions against firms that are working around the islands without the approval from the government and also said that Argentina will build a naval base near the islands.

4:24And so that creates a lot of uncertainty around this sea lion project, which is set to start production in March 2020. And so that is leading a big drop in the shares today for a rock hopper exploration. This stock movers 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.com and on Apple CarPlay and Android Auto with the Bloomberg Business app. Hi, I'm Barry Rittultz inviting you to join me for the Masters in Business podcast. Every week we bring you conversations with the people who shake markets, investing and business. I speak with CEOs, Nobel laureates, market innovators and legendary investors. Whether you own stock bonds, real estate commodities, even crypto, these are discussions you absolutely need to hear.

5:26Subscribe to the Masters in Business podcast on Apple Spotify or anywhere you listen. Game insight on the innovators, disruptors and tech driven trends shaping today's complex economy. I'm Carol Maser. And I'm Tim Steneveck, wrap up your work day with the Bloomberg Business Week Daily Podcast. We bring you deeper dives into the story shaping your world from the evolution of AI to the shifting priorities of global business. Plus Silicon Valley power players and the latest tech trends. Catch up on the conversations you missed during the day. Subscribe to the Bloomberg Business Week Daily Podcast on Apple Spotify or anywhere you listen.