WEBVTT - BP Downgraded, Ocado Leaps, Greggs Up  

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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 of the socks on

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<v Speaker 3>the move today here in Europe. I'm Caroline Hepgive with

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<v Speaker 3>Valerie Title, and we're joined by Bloomberg's reporter at Chloe Malay.

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<v Speaker 3>Good morning, Chloe, it's Friday. We have a spring in

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<v Speaker 3>our step. Tell us about BP though, lower oil and

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<v Speaker 3>gas prices starting to filter into the sector, of.

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<v Speaker 1>Course, yeah, absolutely. We actually had two notes out today

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<v Speaker 1>on the oil sector as a whole for Europe and

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<v Speaker 1>both of them were quite negative. So we had Bank

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<v Speaker 1>of America analysts downgraded both BP and SHELL, and we

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<v Speaker 1>also had JP Morgan double downgrading any So both sets

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<v Speaker 1>of those analysts I've seen quite similar things that you've mentioned.

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<v Speaker 1>So we have got a risk of oil oversupply and

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<v Speaker 1>that is going to lead to lower oil prices, and

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<v Speaker 1>then there's also lower gas prices, lower refining margins, and

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<v Speaker 1>so that's expected to put a lot of pressure on

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<v Speaker 1>cash flow for all of those companies, and lower cash

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<v Speaker 1>flow it means also pressure on payouts to shareholders, of course,

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<v Speaker 1>and we know how important buybacks are for investors in

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<v Speaker 1>that oil and gas sector. So overall, JP Morgan analysts

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<v Speaker 1>said that the sector was precariously poised, so that doesn't

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<v Speaker 1>bode too well going into the next year. And we

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<v Speaker 1>are seeing those shares across BPNY and some of those

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<v Speaker 1>other oil majors really really down this morning on the

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<v Speaker 1>back of those downgrades.

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<v Speaker 2>Takers thro Occado, Big Surgeon the shares.

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<v Speaker 1>Today, yeah, Massive Surgeon. That is after it said that

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<v Speaker 1>it would receive a three hundred and fifty million dollar

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<v Speaker 1>a cash payment from Kroger to compensate for the for

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<v Speaker 1>Kroger's decision to close three automated warehouses that were operated

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<v Speaker 1>by Ocado. So this was an amount that was bigger

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<v Speaker 1>than what was previously announced. So we had an announcement

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<v Speaker 1>of two hundred and fifty million dollars initially. So it's

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<v Speaker 1>a big boost and that will really help with Ocado's

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<v Speaker 1>efforts to reduce its debt. So the shares in Occado

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<v Speaker 1>had fallen massively last month, and that was after Kroger,

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<v Speaker 1>which was it is as biggest customer as saying that

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<v Speaker 1>it would shift its e commerce business in some areas

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<v Speaker 1>to its own stores rather than using the automated warehouses

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<v Speaker 1>that are operated by Ocado. So Occado is still now

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<v Speaker 1>working with Kroger, just on fewer warehouses, and it's said

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<v Speaker 1>that it still expects to turn cash ver positive in

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<v Speaker 1>twenty twenty six, but there are still some setbacks and

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<v Speaker 1>some challenges for the company going forward, and its ambition

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<v Speaker 1>of becoming the tesla of grocery, which is what it

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<v Speaker 1>hads touted before, is kind of in limbo at the moment.

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<v Speaker 3>Well, thinking of retailers and food and so on.

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<v Speaker 2>Gregg's Boy.

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<v Speaker 1>It was this morning after being rated a new overweight

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<v Speaker 1>at JP Morgan and the analyst have said that it

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<v Speaker 1>is a structural winner in a food retail They expect

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<v Speaker 1>a very resilient performance and very solid earnings from twenty

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<v Speaker 1>twenty six, so from next year and also see scope

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<v Speaker 1>a major rerating of that stock. So that comes just

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<v Speaker 1>a few days after news that an activist investor was

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<v Speaker 1>pushing for Gregs to cut those costs to avoid being

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<v Speaker 1>taken over by private equity, and that had also led

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<v Speaker 1>the shares hire a few days ago, but shares are

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<v Speaker 1>still down about forty percent a year to date, so

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<v Speaker 1>there's still kind of a long way to go, a

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<v Speaker 1>long way for a recovery for Gregs. But the fact

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<v Speaker 1>that we have this vote of confidence from JP Morgan

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<v Speaker 1>and perhaps on some of those hopes that management will

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<v Speaker 1>actually listen to the activist investor and maybe try and

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<v Speaker 1>find some of those efficiencies is leading to a lot

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<v Speaker 1>of enthusiasm for that stock this morning, and therefore we

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<v Speaker 1>are seeing the shares definitely up.

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