WEBVTT - IAG Orders, Campari Down, BP M&A Target

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<v Speaker 1>Bloomberg Audio Studios podcasts, radio news.

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<v Speaker 2>The Stock Movers podcast, 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 Headgat with

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<v Speaker 3>Valerie Title, and we're joined by Bloomberg's Equities reported Joe

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<v Speaker 3>Easton Joe. IAG came out with earnings, a major order

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<v Speaker 3>and also a boost from the UK US trade deal.

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<v Speaker 1>Yeah, so this is a well several piece of news,

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<v Speaker 1>you say for IAG. So this big deal to buy

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<v Speaker 1>more wide body jets and more jets used for transatlantic travel,

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<v Speaker 1>mainly for British airways. So they are buying around ten

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<v Speaker 1>billion dollars worth of planes. This split between Boeing seven

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<v Speaker 1>eight sevens and also Airbus a three three to zero

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<v Speaker 1>neo plane specifically, and that is coming alongside their earnings.

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<v Speaker 1>The earnings looking pretty strong. Interestingly, they say that the

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<v Speaker 1>premium cabins so first class business class, making up for

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<v Speaker 1>weakness in the economy leisure business. They say that is

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<v Speaker 1>actually a little bit soft. But this stock had a

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<v Speaker 1>decent run recently. It actually doubled in value last year,

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<v Speaker 1>kind of extending those gains a little bit today and

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<v Speaker 1>also potentially you say, a bit of a boost from

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<v Speaker 1>the positive trade news as well.

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<v Speaker 2>All right, that's iag. But lots of high spirits this

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<v Speaker 2>week around both trade, nel use and the new pope.

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<v Speaker 2>But it's not all good news for one Italian company.

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<v Speaker 2>What's the story there, jell.

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<v Speaker 1>No, we've got that in there. That link worked very well,

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<v Speaker 1>I think, so yes, so Italy. A lot of focus

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<v Speaker 1>on Italy, of course, but we're going to talk about Campari,

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<v Speaker 1>which is an Italian drinks make. It makes apparole, which

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<v Speaker 1>everyone knows from those orange drinks that you see everywhere

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<v Speaker 1>over the summer. The aperol spirits Campari, though, saying that

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<v Speaker 1>the earnings have been hit by a weaker economy, sales

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<v Speaker 1>contractions spurred by consumer cautiousness, not drinking enough apparol spits apparently,

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<v Speaker 1>and the stock down around five percent to date. This

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<v Speaker 1>company has had a series of profit warnings because of

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<v Speaker 1>issues in at the drinks market. Some of that actually

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<v Speaker 1>related to tariffs and the impact on that given a

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<v Speaker 1>lot of exposure to China as well. But it's another

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<v Speaker 1>week one and the stock down around fifty five percent

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<v Speaker 1>in the past year. Maybe a few glasses raised to

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<v Speaker 1>the new pope over the weekend.

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<v Speaker 3>I don't know how we might just sadrich that link

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<v Speaker 3>in there between that I can't stand and the election

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<v Speaker 3>of a new paper and we went there. Okay, let's

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<v Speaker 3>let's poop on and talk about BP. Does this now

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<v Speaker 3>stand for buyout pending?

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<v Speaker 1>Yes, potentially potentially not British Petroleum anymore. It's got a

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<v Speaker 1>new name, but BP. So BP. There is a story

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<v Speaker 1>in the Financial Time saying that other companies like chevron

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<v Speaker 1>X or Mobile, Toto Energies and even Abu Dharby's Adnock

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<v Speaker 1>have been running the numbers on whether they could do

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<v Speaker 1>a takeover of BP. Now. This of course follows the

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<v Speaker 1>Bloomberg exclusive at the weekend saying that Shell was doing

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<v Speaker 1>some calculations working out whether it would be a good

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<v Speaker 1>company to buy given the declient in the share price.

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<v Speaker 1>But it looks like all of these companies are kind

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<v Speaker 1>of just gauging it and would wait for the stock

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<v Speaker 1>to come down any further. Now. BP stock price, of

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<v Speaker 1>course underperformed because they had this shift towards renewable energy,

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<v Speaker 1>and then they kind of backtracked on that, but the

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<v Speaker 1>stock hasn't really recovered, so it seems to be ripe

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<v Speaker 1>for a takeover and the stock actually reacting to this news.

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<v Speaker 1>This morning, it was up around two and a half

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<v Speaker 1>percent at the high in early training to BP potentially

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<v Speaker 1>in focus on the M and A front.

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