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European Stocks Steady Ahead of Micron Earnings | The Opening Trade 6/24/2026

Watch on YouTube ↗  |  June 24, 2026 at 10:58  |  1:36:13  |  Bloomberg Markets
Speakers
Jeremy — Head of Global Derivatives and European Equity Strategy, UBS Investment Bank
James Turner — Head of Global Fixed Income, BlackRock
Charlie Pellett — Anchor/Reporter, Bloomberg
Guy Johnson — Anchor, Bloomberg
Anthony Stevens — Bloomberg Market Producer
Aneeka Gupta — Reporter, Financial Times
Mark Cutmore — Executive Editor, Bloomberg Markets

Summary

Bloomberg's 'The Opening Trade' reviews European market steadiness following a tech-led selloff, with Micron earnings serving as the next major test for AI stocks. Guests offer investment ideas including staying long the AI supply chain, buying European pharma, avoiding defense, and rotating into U.S. cyclicals, while fixed income experts recommend UK Gilts and European bonds for yield. The program also covers geopolitical progress around the Strait of Hormuz, Europe's heatwave impact on power prices, and merger news for Subsea 7 and Saipem.

  • Equity markets steady after deep tech selloff; Micron earnings seen as critical catalyst for AI stocks.
  • UBS strategist Jeremy argues AI semiconductor supply chain remains a structural long, but favored European pharma, avoided defense, and recommended U.S. cyclicals on manufacturing recovery.
  • BlackRock's James Turner is bullish on UK Gilts and European government/corporate bonds, expecting central bank rate cuts and attractive yield.
  • Bloomberg's Charlie Pellett highlights Subsea 7/Saipem merger progress after Brazil approval as a key event to watch.
  • Defense stocks face headwinds from German frigate contract changes and upcoming KNDS IPO.
  • Heatwave in Europe pushes power prices to energy-crisis highs but no trade call made.
  • Strait of Hormuz sees more tanker traffic as U.S.-Iran peace talks continue, easing oil supply concerns.
Ideas
James Turner Head of Global Fixed Income, BlackRock 29:26
Buy UK Gilts; cuts coming, yields attractive.
UK Gilts offer attractive yields and income potential, with BlackRock willing to purchase on dips. The Bank of England is expected to cut rates as oil prices and inflation pressures subside, supporting a bullish duration view, particularly in the 3-5 year maturity segment.
UK Gilts (3-5 year) MED
James Turner Head of Global Fixed Income, BlackRock 33:47
Long European sovereign bonds; ECB to cut.
European government bonds offer an attractive opportunity to lock in yields at current levels. With expectations that the ECB will cut rates in September (not July) and inflation is set to drop, the 3-5 year maturity segment is favored despite ongoing volatility.
European government bonds (3-5 year) MED
James Turner Head of Global Fixed Income, BlackRock 37:17
Overweight European credit; fundamentals strong.
European corporate bonds are supported by resilient fundamentals, contained spreads, and an outlook that avoids recession. The asset class offers an attractive way to capture income and compound elevated yields, with selectivity still required.
European investment grade corporate bonds MED
Charlie Pellett Anchor/Reporter, Bloomberg 44:14
Watch Subsea 7/Saipem; Brazil OKs deal.
The approval by Brazil's regulator removes a key roadblock for the Subsea 7 and Saipem merger, and Morgan Stanley notes investors could start pricing in deal completion, making the event a positive catalyst worth watching for the two companies.
Saipem Subsea 7 LOW
Jeremy Head of Global Derivatives and European Equity Strategy, UBS Investment Bank 52:14
Stay long AI supply chain; earnings revisions persist.
The AI semiconductor supply chain continues to see structural data center growth with hyperscaler capex estimates being revised higher, driving further earnings upgrades across the entire supply chain. Despite near-term valuation froth, the medium-term fundamentals remain strong, offering opportunities for longer-term holders.
SMH MED
Jeremy Head of Global Derivatives and European Equity Strategy, UBS Investment Bank 52:46
Go long U.S. cyclicals; manufacturing accelerates.
U.S. cyclical stocks are benefiting from a significant destocking phase, with factory orders and manufacturing new orders surging to expansionary levels, and a weaker euro providing an additional tailwind for U.S. industrial and cyclical exposure.
U.S. cyclical stocks MED
Jeremy Head of Global Derivatives and European Equity Strategy, UBS Investment Bank 53:21
Buy European pharma; upgrades and cheap.
European pharmaceuticals have cheapened, are under-owned, and are starting to see earnings upgrades driven by GLP-1 drugs and oral versions coming through, providing a broadening opportunity away from over-concentrated AI positions.
European pharmaceuticals MED
Jeremy Head of Global Derivatives and European Equity Strategy, UBS Investment Bank 54:58
Avoid European defense; upgrade momentum gone.
European defense stocks have become crowded and expensive, with no further earnings upgrade momentum after NATO's 5% spending target was fully priced in. The sector is now range-bound and unattractive without new catalysts for upgrades.
ITA MED
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This Bloomberg Markets video, published June 24, 2026, features James Turner, Charlie Pellett, Jeremy discussing UK Gilts (3-5 year), European government bonds (3-5 year), European investment grade corporate bonds, Saipem, Subsea 7, SMH, U.S. cyclical stocks, European pharmaceuticals, ITA. 8 trade ideas extracted by AI with direction and confidence scoring.

Speakers: James Turner, Charlie Pellett, Jeremy  · Tickers: UK Gilts (3-5 year), European government bonds (3-5 year), European investment grade corporate bonds, Saipem, Subsea 7, SMH, U.S. cyclical stocks, European pharmaceuticals, ITA