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 of the socks on
Speaker 3: the move today here in Europe. I'm Caroline Hepgive with
Speaker 3: Valerie Title, and we're joined by Bloomberg's reporter at Chloe Malay.
Speaker 3: Good morning, Chloe, it's Friday. We have a spring in
Speaker 3: our step. Tell us about BP though, lower oil and
Speaker 3: gas prices starting to filter into the sector, of.
Speaker 1: Course, yeah, absolutely. We actually had two notes out today
Speaker 1: on the oil sector as a whole for Europe and
Speaker 1: both of them were quite negative. So we had Bank
Speaker 1: of America analysts downgraded both BP and SHELL, and we
Speaker 1: also had JP Morgan double downgrading any So both sets
Speaker 1: of those analysts I've seen quite similar things that you've mentioned.
Speaker 1: So we have got a risk of oil oversupply and
Speaker 1: that is going to lead to lower oil prices, and
Speaker 1: then there's also lower gas prices, lower refining margins, and
Speaker 1: so that's expected to put a lot of pressure on
Speaker 1: cash flow for all of those companies, and lower cash
Speaker 1: flow it means also pressure on payouts to shareholders, of course,
Speaker 1: and we know how important buybacks are for investors in
Speaker 1: that oil and gas sector. So overall, JP Morgan analysts
Speaker 1: said that the sector was precariously poised, so that doesn't
Speaker 1: bode too well going into the next year. And we
Speaker 1: are seeing those shares across BPNY and some of those
Speaker 1: other oil majors really really down this morning on the
Speaker 1: back of those downgrades.
Speaker 2: Takers thro Occado, Big Surgeon the shares.
Speaker 1: Today, yeah, Massive Surgeon. That is after it said that
Speaker 1: it would receive a three hundred and fifty million dollar
Speaker 1: a cash payment from Kroger to compensate for the for
Speaker 1: Kroger's decision to close three automated warehouses that were operated
Speaker 1: by Ocado. So this was an amount that was bigger
Speaker 1: than what was previously announced. So we had an announcement
Speaker 1: of two hundred and fifty million dollars initially. So it's
Speaker 1: a big boost and that will really help with Ocado's
Speaker 1: efforts to reduce its debt. So the shares in Occado
Speaker 1: had fallen massively last month, and that was after Kroger,
Speaker 1: which was it is as biggest customer as saying that
Speaker 1: it would shift its e commerce business in some areas
Speaker 1: to its own stores rather than using the automated warehouses
Speaker 1: that are operated by Ocado. So Occado is still now
Speaker 1: working with Kroger, just on fewer warehouses, and it's said
Speaker 1: that it still expects to turn cash ver positive in
Speaker 1: twenty twenty six, but there are still some setbacks and
Speaker 1: some challenges for the company going forward, and its ambition
Speaker 1: of becoming the tesla of grocery, which is what it
Speaker 1: hads touted before, is kind of in limbo at the moment.
Speaker 3: Well, thinking of retailers and food and so on.
Speaker 2: Gregg's Boy.
Speaker 1: It was this morning after being rated a new overweight
Speaker 1: at JP Morgan and the analyst have said that it
Speaker 1: is a structural winner in a food retail They expect
Speaker 1: a very resilient performance and very solid earnings from twenty
Speaker 1: twenty six, so from next year and also see scope
Speaker 1: a major rerating of that stock. So that comes just
Speaker 1: a few days after news that an activist investor was
Speaker 1: pushing for Gregs to cut those costs to avoid being
Speaker 1: taken over by private equity, and that had also led
Speaker 1: the shares hire a few days ago, but shares are
Speaker 1: still down about forty percent a year to date, so
Speaker 1: there's still kind of a long way to go, a
Speaker 1: long way for a recovery for Gregs. But the fact
Speaker 1: that we have this vote of confidence from JP Morgan
Speaker 1: and perhaps on some of those hopes that management will
Speaker 1: actually listen to the activist investor and maybe try and
Speaker 1: find some of those efficiencies is leading to a lot
Speaker 1: of enthusiasm for that stock this morning, and therefore we
Speaker 1: are seeing the shares definitely up.
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