Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today in Europe. I'm Rachel Evans with Stephen Carroll and
Speaker 3: we're joined by Bloombergs twa at a bio Teawear. Thanks
Speaker 3: joining us abideus. Let's start there that they're up this morning.
Speaker 3: What is going on?
Speaker 4: Yeah, so that's the IT group. It processes transactions for
Speaker 4: the global travel and tourism industry, so for airlines, hotels,
Speaker 4: cruise lines, similar They're up as much as five point
Speaker 4: seven percent today, so that's a sizeable jump. One of
Speaker 4: the biggest winners on the stock six hundred as well,
Speaker 4: and it's after they've announced results which beat expectations in
Speaker 4: the first quarter and also crucially they reiterated their guidance.
Speaker 4: And that's despite the disruption that we're seeing caused by
Speaker 4: the Middle East conflicts. I think that's interesting because there
Speaker 4: is expected to be at least some disruption to travel
Speaker 4: this summer as a result of the closure of the
Speaker 4: Strait of Hormuz and the ongoing tension in the Middle East,
Speaker 4: but Amadaeus is expecting to be unperturbed by those headwinds,
Speaker 4: so analysts are really calling that out, describing the company
Speaker 4: as resilient in the midst of these difficulties. But it
Speaker 4: is worth noting as well that Jeffries has said in
Speaker 4: their assessment that travel trends will progressively improve from here,
Speaker 4: so they're using that as a basis to predict that
Speaker 4: Amadeus's results will only get better from here on out.
Speaker 4: So perhaps some hope for those counting on summer holiday
Speaker 4: plans after all.
Speaker 1: Yeah, indeed, well that's an interesting read from their results.
Speaker 1: Not quite the same picture they're coming from. IAG, the
Speaker 1: parent company of British Airways Iberian erlingis no well so.
Speaker 4: Now that travel related stock, but definitely moving in the
Speaker 4: opposite direction. This morning, their shares are down as much
Speaker 4: as five point nine percent, and that is the most
Speaker 4: in two months. And this drop has really been brought
Speaker 4: about by a warning from the group that their profits
Speaker 4: will be lower than previously anticipated, and that is all
Speaker 4: because of these increased fuel costs that we're seeing as
Speaker 4: a result of the conflict in the Middle East. Just
Speaker 4: to give you an idea of scale. They're forecasting that
Speaker 4: they'll pay about two billion euros more for fuel in
Speaker 4: twenty twenty six and that's going to lead to a
Speaker 4: total bill of about nine billion euros, So a big
Speaker 4: difference there. But this is something that we're seeing across
Speaker 4: the board this earning season in the airline space. The
Speaker 4: higher fuel costs of really curbing profit and forcing carriers
Speaker 4: to find ways to rain in costs. Some airlines canceling flights,
Speaker 4: others are decommissioning older aircraft that perhaps use more fuel to.
Speaker 3: Deal with that pressure.
Speaker 4: And of course there is not yet a resolution on
Speaker 4: that question of the strait of Hormus, so these problems
Speaker 4: could be likely to persist for the time being.
Speaker 3: Yes, indeed, finally we've got Ryan Metal also moving.
Speaker 4: Yeah, Rye Mittel falling this morning, one of the biggest
Speaker 4: followers on the stock, six hundred down as much six percent.
Speaker 4: It's coming off the back of a downgrade from JP Morgan.
Speaker 4: They've actually slashed their price target by almost thirty percent there,
Speaker 4: and the reason they're giving for this is that Ryan
Speaker 4: Mattal is starting to miss its own targets according to
Speaker 4: analys should note that they have admitted that those targets
Speaker 4: were already quite ambitious, but they're highlighting for missus versus
Speaker 4: consensus in the past six months. Some other investors also
Speaker 4: questioning whether Ryan Metal has the right product portfolio, but
Speaker 4: there are some bright sports, at least for JP Morgan.
Speaker 4: They are still positive on the outlook for German defense
Speaker 4: spending overall, and that's of course coming amidst this rising
Speaker 4: pressure that we're seeing across Europe to spend more on defense.
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