Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,
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Speaker 2: Now, let's have a look at the socks on the
Speaker 2: mood today here in Europe. I'm Caroline Hepkin. I'm joined
Speaker 2: bub Boomberg reported Tiva out of Bio. Good morning, Tia.
Speaker 2: Let's think about the energy price impact on market and
Speaker 2: in particularly those energy stocks. How is BP faring today?
Speaker 3: Well, one thing is for sure, Caroline, in terms of
Speaker 3: energy markets, we're seeing a bit of a reversal of
Speaker 3: what we saw yesterday. So yesterday oil price is tempering slightly.
Speaker 3: That's all changed after President Trump made a rare primetime
Speaker 3: appearance yesterday and he gave an update on the Iran war.
Speaker 3: What he did do is dash the optimism that we
Speaker 3: saw swirling amongst investors that the war could be perhaps
Speaker 3: on course for a resolution in the next few weeks,
Speaker 3: and also that disruption to crude and gas flows would ease.
Speaker 3: As a result, there are some escalation feares now mounting
Speaker 3: and we're beginning to see that in the market as well.
Speaker 3: So in short stocks are down and oil are surging.
Speaker 3: Brent crude jumping as much as six point seven percent today.
Speaker 3: That's having an impact on names like BP. It's near
Speaker 3: the top of the stock six hundred gainers list today,
Speaker 3: also accompanied by others like Shell and Total Energy. So
Speaker 3: BP up just over four percent. But Caroline, you do
Speaker 3: have to wonder how long this is going to last.
Speaker 3: We've seen some real sort of whips or moves, and
Speaker 3: that inverse relationship between stocks and energy really come to
Speaker 3: the fore in recent weeks during this conflict. It's really
Speaker 3: headline driven too, so there's nothing that's certain for very long.
Speaker 3: So as ever, an area to watch as the Middle
Speaker 3: East unrest continues.
Speaker 2: Yeah, Indeed, another sector that we're thinking about in terms
Speaker 2: of travel and tourism, the airlines, worries around fuel costs
Speaker 2: really beginning to set in, and Lifter is quite interesting.
Speaker 3: Today exactly, so another gear shift for this stock today.
Speaker 3: Yesterday we saw shares climbing for Lift hands that today's
Speaker 3: down as much as five point four percent. And you're right,
Speaker 3: this job is centered around fears about fuel prices. We've
Speaker 3: mentioned how oil is surging this morning. That's also the
Speaker 3: case for jet fuel and diesel. European diesel futures hit
Speaker 3: two hundred dollars a barrel earlier this hour. So analysts
Speaker 3: and Morgan Stanley are taking note of this. They've cut
Speaker 3: price targets for a number of airlines and they have
Speaker 3: downgraded Left hands are specifically to equal weight.
Speaker 1: That's on the.
Speaker 3: Risk that fuel costs could prove materially higher for longer
Speaker 3: due to this conflict. That's what Morgan Stanley is saying.
Speaker 3: There's an interesting point from another analyst too, that this
Speaker 3: disruption is felt more severely in refined products than crude oil.
Speaker 3: So deficits in jet fuel are structurally harder and slower
Speaker 3: to resolve, which does mean, of course, if we even
Speaker 3: see a resolution soon, it will take a while for
Speaker 3: jet fuel supplies to return to normal. And that's why
Speaker 3: you're seeing the likes of Morgan Stanley downgrading Left Hands
Speaker 3: and they're stop falling this morning.
Speaker 2: Yeah, and we also have more moves in metals and mining.
Speaker 3: Yeah, we are seeing losses across the board in precious
Speaker 3: mining and metals. That's as the US is preparing to
Speaker 3: outline this new tiered system for its broader tariffs on
Speaker 3: steel and aluminium products. The headline here is that we
Speaker 3: understand currently they're going to maintain fifty percent tariffs on
Speaker 3: a large number of derivative products and the duty will
Speaker 3: be calculated by the value of the actual imported good.
Speaker 3: So that announcement is expected as early as today. According
Speaker 3: to the latest reports, miners falling, so the likes of
Speaker 3: Fresnio Pan African resources to all down Fresnos down as
Speaker 3: much as six point four percent, could be likely to
Speaker 3: move again when that announcement is confirmed, but definitely one
Speaker 3: to keep an eye on heading into the Eastern weekend.
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