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: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 3: by Bloomberg's Breaking News editor Louise Moon.
Speaker 1: Louise, good morning.
Speaker 3: You've come with a theme today, warnings easy Jet telling
Speaker 3: shareholders to fasten their seatouts.
Speaker 4: Indeed, yeah, and that's causing their shares to fall the
Speaker 4: most since twenty twenty two this morning, So almost nine
Speaker 4: percent down into the red this morning. So easy Jet
Speaker 4: warning of a first half loss all because of the
Speaker 4: Iran War and these disruptions that's caused, as well as
Speaker 4: higher fuel costs. So they're expecting a headline lost fotax
Speaker 4: of up to five hundred and sixty million pounds in
Speaker 4: the first half. They also said that the war has
Speaker 4: added twenty five million in fuel costs in March alone.
Speaker 4: And then on top of that, they've said that forward
Speaker 4: bookings so for the third quarter of the fourth quarter.
Speaker 1: For summer are down compared to a year ago.
Speaker 4: So a whole host of warnings and higher costs for Easier,
Speaker 4: and that's weighing on their share price. They're not the
Speaker 4: only airline to fall this morning. Jet two among the others,
Speaker 4: fell as much as five point five percent. That's after
Speaker 4: they were downgraded by Good Body from a buy to
Speaker 4: a hold, also on the back of this higher pricing
Speaker 4: for fuel. So investors there are saying they see lots
Speaker 4: of value on offer, but they want to clear a
Speaker 4: picture on how the summer trading is going to go
Speaker 4: before shares for Jet two can trade higher. So obviously
Speaker 4: this is all in the back of the arm war.
Speaker 4: There's been disruption to roots, disruptions to future bookings, higher costs,
Speaker 4: and this is all ahead of the peak summer seasons.
Speaker 4: There's growing concern about how this is going to impact airlines.
Speaker 4: Obviously we've had that EasyJet guidance this morning and growing
Speaker 4: concern about fuel supply shortages as well, so we'll be
Speaker 4: keeping an eye on how that goes. Easy Jet, Ryan
Speaker 4: Air and Virgin of all said that they've got about
Speaker 4: six weeks of secure supplies, so then pass that will
Speaker 4: be the thing that's in focus in terms of fuel there.
Speaker 3: Okay, so that's in terms of easy jet. Please, I'm
Speaker 3: going to take you on a journey because the next
Speaker 3: company that you've brought to us is a chocolate maker
Speaker 3: that has a very confusing name, which I was trying
Speaker 3: to decide whether I pronounce the French way, which will
Speaker 3: be Barry Calbo, or the Flemish way, which is Barry Calabout,
Speaker 3: because it is originally the name comes from Flanders in Belgium,
Speaker 3: and I've sort of led somewhere in between the two.
Speaker 3: But please tell us about Barry Calbo and what the
Speaker 3: news from them is this morning.
Speaker 1: That was a great history and pronunciation lesson. I love that. Yes,
Speaker 1: this is the Swiss chocolate maker.
Speaker 4: Shares dropped the most in a year, fell as much
Speaker 4: as fifteen percent this morning, so first half sales volume
Speaker 4: fell but did better than expected. So that was kind
Speaker 4: of a bit of positivity there. But what's really being
Speaker 4: focused on is that they've cut their outlook, so they
Speaker 4: said that profits will fall this year. They had previously
Speaker 4: said that they expected an increase in earnings, so a
Speaker 4: switch in tone there. Essentially, they're struggling to deal with
Speaker 4: the volatility and the sharp drop in cocol prices. So
Speaker 4: the CEO this morning, he cited that. He also cited
Speaker 4: supply disruption, a lot of competition and overcapacity in the market,
Speaker 4: as well as a potential impact from the Middle East
Speaker 4: as well. So they say that they're taking in their words,
Speaker 4: short term action to protect market share and prioritize growth,
Speaker 4: which they haven't exactly specified what that entails, but cutting
Speaker 4: their outlook shares dropping on the back of that, are
Speaker 4: raising all gains actually that they've made this year in
Speaker 4: terms of share price, so back to levels seen last November,
Speaker 4: all of the back of COCAW prices.
Speaker 3: Okay, so that for a barry car about as I
Speaker 3: put a full belt in on that and do it
Speaker 3: both ways to confuse everyone. Let's turn to Tesco then,
Speaker 3: interesting to get an update from them about inflation fears.
Speaker 4: Yeah, so shares are actually out for Tesco this morning
Speaker 4: and vests focusing on the core numbers. So four year
Speaker 4: profits rose, and it also committed to keeping prices low,
Speaker 4: which it has been doing for a while well, so
Speaker 4: shares rising on the back of that. They did, however,
Speaker 4: kind of add to this chorus of corporate warnings that
Speaker 4: the Iram war is clouding the outlook going forward. So
Speaker 4: in terms of forward guidance, it was very conservative for
Speaker 4: this fiscal year.
Speaker 1: It had quite a wide range.
Speaker 4: Essentially, there's a lot of uncertainty about costs, input costs
Speaker 4: for Tesco going forward, as well as the impact on
Speaker 4: the war on households, so on customer spending. So they
Speaker 4: said at the moment they're not seeing much meaningful inflation
Speaker 4: come through aside from to do with fuel, but the impact,
Speaker 4: the potential impact, will depend on how long the war
Speaker 4: goes on and the impact on households and spending. So
Speaker 4: a lot of uncertainty there going forward. We saw similar
Speaker 4: comments from Dunelm, the furniture retailer this morning, saying that
Speaker 4: they expect for your profits to be at the lower
Speaker 4: end because of that uncertainty, and their shares fell six percent.
Speaker 4: So as I say, adding to this chorus that we're
Speaker 4: seeing across corporates that this uncertainty and full listen.
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