WEBVTT - Amadeus Jumps, IAG Falls, Rheinmetall Slips

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move

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<v Speaker 3>today in Europe. I'm Rachel Evans with Stephen Carroll and

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<v Speaker 3>we're joined by Bloombergs twa at a bio Teawear. Thanks

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<v Speaker 3>joining us abideus. Let's start there that they're up this morning.

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<v Speaker 3>What is going on?

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<v Speaker 4>Yeah, so that's the IT group. It processes transactions for

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<v Speaker 4>the global travel and tourism industry, so for airlines, hotels,

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<v Speaker 4>cruise lines, similar They're up as much as five point

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<v Speaker 4>seven percent today, so that's a sizeable jump. One of

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<v Speaker 4>the biggest winners on the stock six hundred as well,

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<v Speaker 4>and it's after they've announced results which beat expectations in

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<v Speaker 4>the first quarter and also crucially they reiterated their guidance.

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<v Speaker 4>And that's despite the disruption that we're seeing caused by

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<v Speaker 4>the Middle East conflicts. I think that's interesting because there

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<v Speaker 4>is expected to be at least some disruption to travel

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<v Speaker 4>this summer as a result of the closure of the

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<v Speaker 4>Strait of Hormuz and the ongoing tension in the Middle East,

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<v Speaker 4>but Amadaeus is expecting to be unperturbed by those headwinds,

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<v Speaker 4>so analysts are really calling that out, describing the company

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<v Speaker 4>as resilient in the midst of these difficulties. But it

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<v Speaker 4>is worth noting as well that Jeffries has said in

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<v Speaker 4>their assessment that travel trends will progressively improve from here,

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<v Speaker 4>so they're using that as a basis to predict that

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<v Speaker 4>Amadeus's results will only get better from here on out.

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<v Speaker 4>So perhaps some hope for those counting on summer holiday

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<v Speaker 4>plans after all.

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<v Speaker 1>Yeah, indeed, well that's an interesting read from their results.

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<v Speaker 1>Not quite the same picture they're coming from. IAG, the

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<v Speaker 1>parent company of British Airways Iberian erlingis no well so.

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<v Speaker 4>Now that travel related stock, but definitely moving in the

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<v Speaker 4>opposite direction. This morning, their shares are down as much

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<v Speaker 4>as five point nine percent, and that is the most

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<v Speaker 4>in two months. And this drop has really been brought

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<v Speaker 4>about by a warning from the group that their profits

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<v Speaker 4>will be lower than previously anticipated, and that is all

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<v Speaker 4>because of these increased fuel costs that we're seeing as

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<v Speaker 4>a result of the conflict in the Middle East. Just

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<v Speaker 4>to give you an idea of scale. They're forecasting that

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<v Speaker 4>they'll pay about two billion euros more for fuel in

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<v Speaker 4>twenty twenty six and that's going to lead to a

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<v Speaker 4>total bill of about nine billion euros, So a big

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<v Speaker 4>difference there. But this is something that we're seeing across

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<v Speaker 4>the board this earning season in the airline space. The

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<v Speaker 4>higher fuel costs of really curbing profit and forcing carriers

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<v Speaker 4>to find ways to rain in costs. Some airlines canceling flights,

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<v Speaker 4>others are decommissioning older aircraft that perhaps use more fuel to.

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<v Speaker 3>Deal with that pressure.

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<v Speaker 4>And of course there is not yet a resolution on

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<v Speaker 4>that question of the strait of Hormus, so these problems

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<v Speaker 4>could be likely to persist for the time being.

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<v Speaker 3>Yes, indeed, finally we've got Ryan Metal also moving.

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<v Speaker 4>Yeah, Rye Mittel falling this morning, one of the biggest

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<v Speaker 4>followers on the stock, six hundred down as much six percent.

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<v Speaker 4>It's coming off the back of a downgrade from JP Morgan.

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<v Speaker 4>They've actually slashed their price target by almost thirty percent there,

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<v Speaker 4>and the reason they're giving for this is that Ryan

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<v Speaker 4>Mattal is starting to miss its own targets according to

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<v Speaker 4>analys should note that they have admitted that those targets

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<v Speaker 4>were already quite ambitious, but they're highlighting for missus versus

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<v Speaker 4>consensus in the past six months. Some other investors also

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<v Speaker 4>questioning whether Ryan Metal has the right product portfolio, but

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<v Speaker 4>there are some bright sports, at least for JP Morgan.

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<v Speaker 4>They are still positive on the outlook for German defense

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<v Speaker 4>spending overall, and that's of course coming amidst this rising

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<v Speaker 4>pressure that we're seeing across Europe to spend more on defense.

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