WEBVTT - Easyjet, Barry Callebaut, Tesco Warnings

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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>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moon.

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<v Speaker 1>Louise, good morning.

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<v Speaker 3>You've come with a theme today, warnings easy Jet telling

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<v Speaker 3>shareholders to fasten their seatouts.

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<v Speaker 4>Indeed, yeah, and that's causing their shares to fall the

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<v Speaker 4>most since twenty twenty two this morning, So almost nine

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<v Speaker 4>percent down into the red this morning. So easy Jet

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<v Speaker 4>warning of a first half loss all because of the

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<v Speaker 4>Iran War and these disruptions that's caused, as well as

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<v Speaker 4>higher fuel costs. So they're expecting a headline lost fotax

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<v Speaker 4>of up to five hundred and sixty million pounds in

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<v Speaker 4>the first half. They also said that the war has

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<v Speaker 4>added twenty five million in fuel costs in March alone.

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<v Speaker 4>And then on top of that, they've said that forward

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<v Speaker 4>bookings so for the third quarter of the fourth quarter.

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<v Speaker 1>For summer are down compared to a year ago.

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<v Speaker 4>So a whole host of warnings and higher costs for Easier,

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<v Speaker 4>and that's weighing on their share price. They're not the

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<v Speaker 4>only airline to fall this morning. Jet two among the others,

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<v Speaker 4>fell as much as five point five percent. That's after

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<v Speaker 4>they were downgraded by Good Body from a buy to

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<v Speaker 4>a hold, also on the back of this higher pricing

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<v Speaker 4>for fuel. So investors there are saying they see lots

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<v Speaker 4>of value on offer, but they want to clear a

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<v Speaker 4>picture on how the summer trading is going to go

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<v Speaker 4>before shares for Jet two can trade higher. So obviously

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<v Speaker 4>this is all in the back of the arm war.

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<v Speaker 4>There's been disruption to roots, disruptions to future bookings, higher costs,

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<v Speaker 4>and this is all ahead of the peak summer seasons.

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<v Speaker 4>There's growing concern about how this is going to impact airlines.

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<v Speaker 4>Obviously we've had that EasyJet guidance this morning and growing

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<v Speaker 4>concern about fuel supply shortages as well, so we'll be

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<v Speaker 4>keeping an eye on how that goes. Easy Jet, Ryan

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<v Speaker 4>Air and Virgin of all said that they've got about

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<v Speaker 4>six weeks of secure supplies, so then pass that will

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<v Speaker 4>be the thing that's in focus in terms of fuel there.

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<v Speaker 3>Okay, so that's in terms of easy jet. Please, I'm

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<v Speaker 3>going to take you on a journey because the next

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<v Speaker 3>company that you've brought to us is a chocolate maker

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<v Speaker 3>that has a very confusing name, which I was trying

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<v Speaker 3>to decide whether I pronounce the French way, which will

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<v Speaker 3>be Barry Calbo, or the Flemish way, which is Barry Calabout,

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<v Speaker 3>because it is originally the name comes from Flanders in Belgium,

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<v Speaker 3>and I've sort of led somewhere in between the two.

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<v Speaker 3>But please tell us about Barry Calbo and what the

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<v Speaker 3>news from them is this morning.

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<v Speaker 1>That was a great history and pronunciation lesson. I love that. Yes,

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<v Speaker 1>this is the Swiss chocolate maker.

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<v Speaker 4>Shares dropped the most in a year, fell as much

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<v Speaker 4>as fifteen percent this morning, so first half sales volume

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<v Speaker 4>fell but did better than expected. So that was kind

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<v Speaker 4>of a bit of positivity there. But what's really being

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<v Speaker 4>focused on is that they've cut their outlook, so they

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<v Speaker 4>said that profits will fall this year. They had previously

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<v Speaker 4>said that they expected an increase in earnings, so a

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<v Speaker 4>switch in tone there. Essentially, they're struggling to deal with

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<v Speaker 4>the volatility and the sharp drop in cocol prices. So

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<v Speaker 4>the CEO this morning, he cited that. He also cited

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<v Speaker 4>supply disruption, a lot of competition and overcapacity in the market,

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<v Speaker 4>as well as a potential impact from the Middle East

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<v Speaker 4>as well. So they say that they're taking in their words,

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<v Speaker 4>short term action to protect market share and prioritize growth,

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<v Speaker 4>which they haven't exactly specified what that entails, but cutting

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<v Speaker 4>their outlook shares dropping on the back of that, are

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<v Speaker 4>raising all gains actually that they've made this year in

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<v Speaker 4>terms of share price, so back to levels seen last November,

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<v Speaker 4>all of the back of COCAW prices.

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<v Speaker 3>Okay, so that for a barry car about as I

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<v Speaker 3>put a full belt in on that and do it

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<v Speaker 3>both ways to confuse everyone. Let's turn to Tesco then,

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<v Speaker 3>interesting to get an update from them about inflation fears.

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<v Speaker 4>Yeah, so shares are actually out for Tesco this morning

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<v Speaker 4>and vests focusing on the core numbers. So four year

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<v Speaker 4>profits rose, and it also committed to keeping prices low,

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<v Speaker 4>which it has been doing for a while well, so

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<v Speaker 4>shares rising on the back of that. They did, however,

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<v Speaker 4>kind of add to this chorus of corporate warnings that

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<v Speaker 4>the Iram war is clouding the outlook going forward. So

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<v Speaker 4>in terms of forward guidance, it was very conservative for

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<v Speaker 4>this fiscal year.

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<v Speaker 1>It had quite a wide range.

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<v Speaker 4>Essentially, there's a lot of uncertainty about costs, input costs

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<v Speaker 4>for Tesco going forward, as well as the impact on

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<v Speaker 4>the war on households, so on customer spending. So they

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<v Speaker 4>said at the moment they're not seeing much meaningful inflation

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<v Speaker 4>come through aside from to do with fuel, but the impact,

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<v Speaker 4>the potential impact, will depend on how long the war

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<v Speaker 4>goes on and the impact on households and spending. So

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<v Speaker 4>a lot of uncertainty there going forward. We saw similar

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<v Speaker 4>comments from Dunelm, the furniture retailer this morning, saying that

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<v Speaker 4>they expect for your profits to be at the lower

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<v Speaker 4>end because of that uncertainty, and their shares fell six percent.

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<v Speaker 4>So as I say, adding to this chorus that we're

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<v Speaker 4>seeing across corporates that this uncertainty and full listen.

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