1 00:00:01,320 --> 00:00:05,720 Speaker 1: The Stock Movers podcast, your roundup of companies making moves 2 00:00:05,760 --> 00:00:09,160 Speaker 1: in the stock market, harnessing the power of Bloomberg data. 3 00:00:10,760 --> 00:00:12,680 Speaker 2: Yeah, should we have a look at the markets then? Briefly, 4 00:00:13,080 --> 00:00:15,560 Speaker 2: let's look at the European stocks with flat at the moments, 5 00:00:15,560 --> 00:00:17,720 Speaker 2: are slightly negative fifty one hundred, down a tenth of 6 00:00:17,760 --> 00:00:21,239 Speaker 2: one percent. As for US DOT futures, they've tipped into 7 00:00:21,239 --> 00:00:23,360 Speaker 2: the green this morning, so we really do have quite 8 00:00:23,360 --> 00:00:26,520 Speaker 2: a muted reaction to this major event in the Middle 9 00:00:26,560 --> 00:00:29,120 Speaker 2: East over the weekend four thirty nine for usls do 10 00:00:29,120 --> 00:00:30,960 Speaker 2: at one and a half basis points. Bloombag Dollar Spot 11 00:00:30,960 --> 00:00:33,479 Speaker 2: Index also up by three tens of one percent. So 12 00:00:33,520 --> 00:00:34,880 Speaker 2: that's a look at the market. 13 00:00:35,000 --> 00:00:37,320 Speaker 3: Okay, let's get a bit of a deep dive in 14 00:00:37,360 --> 00:00:39,760 Speaker 3: terms of some of the individual stocks on the move 15 00:00:40,680 --> 00:00:44,199 Speaker 3: and bring in Bloomberg's equities reported Joe East and Joe. 16 00:00:44,240 --> 00:00:47,040 Speaker 3: We'll start with airlines, heavily influenced of course by the 17 00:00:47,040 --> 00:00:50,000 Speaker 3: conflict in the Middle East. We've seen some changes in 18 00:00:50,080 --> 00:00:53,440 Speaker 3: terms of routes, clearly concerned there, but also the your 19 00:00:53,520 --> 00:00:56,560 Speaker 3: price being factored in who's being hit hardest at this point. 20 00:00:56,720 --> 00:00:59,800 Speaker 4: Yes, so we've seen pretty decent moves lower in all 21 00:00:59,800 --> 00:01:02,120 Speaker 4: of the airlines today really, so left hands were down 22 00:01:02,120 --> 00:01:04,640 Speaker 4: one point one percent on that one. Air France as 23 00:01:04,680 --> 00:01:07,800 Speaker 4: well one point two percent in the red and also 24 00:01:07,840 --> 00:01:09,840 Speaker 4: some of the short haul airlines as well, so Easy Jet, 25 00:01:09,920 --> 00:01:12,680 Speaker 4: Ryanair slipping around the same amount as well. So it's 26 00:01:12,720 --> 00:01:15,640 Speaker 4: a twofold thing. As you mentioned, it is both the 27 00:01:15,680 --> 00:01:19,240 Speaker 4: issue of routes. We did see cancelations and a lot 28 00:01:19,280 --> 00:01:21,560 Speaker 4: of the data, the flight data showing actually a lot 29 00:01:21,560 --> 00:01:24,760 Speaker 4: of planes diverted away from the Middle East, away from 30 00:01:24,840 --> 00:01:27,440 Speaker 4: the parts of the Middle East that have been affected. 31 00:01:27,840 --> 00:01:31,560 Speaker 4: We saw an update from British Airways of IG specifically 32 00:01:31,880 --> 00:01:34,800 Speaker 4: warning of some cancellation, so that is one element to it. 33 00:01:35,160 --> 00:01:37,199 Speaker 4: And then the other element, of course is the oil 34 00:01:37,200 --> 00:01:39,880 Speaker 4: price as you mentioned, so whetherill coming up, there are 35 00:01:39,920 --> 00:01:44,160 Speaker 4: concerns around jet fuel and around whether companies are actually 36 00:01:44,240 --> 00:01:49,120 Speaker 4: hedged properly for Brent crude all heading up, and therefore 37 00:01:49,160 --> 00:01:52,160 Speaker 4: we are seeing airlines the weakest sector really in Europe today. 38 00:01:52,920 --> 00:01:56,000 Speaker 2: Okay, so that's on airlines, what about energy stocks and 39 00:01:56,040 --> 00:01:57,320 Speaker 2: how they're faring. 40 00:01:57,440 --> 00:02:00,280 Speaker 4: So energy getting a decent boost BP. We were at 41 00:02:00,320 --> 00:02:02,800 Speaker 4: one point four percent on that one Repsol as well, 42 00:02:02,840 --> 00:02:05,800 Speaker 4: gaining a similar amount equanor all of the big names 43 00:02:05,800 --> 00:02:08,000 Speaker 4: of the big oil companies getting a boost from the 44 00:02:08,080 --> 00:02:11,120 Speaker 4: higher crude oil price. Bear in mind, Crew spiked around 45 00:02:11,120 --> 00:02:13,800 Speaker 4: five point six percent at the open of trading an agent, 46 00:02:13,840 --> 00:02:15,720 Speaker 4: but did come down a lot. As you've been discussing 47 00:02:15,760 --> 00:02:18,440 Speaker 4: with your guests, they're kind of the outlook is not 48 00:02:18,520 --> 00:02:21,240 Speaker 4: actually that clear on whether this will impact the strait 49 00:02:21,280 --> 00:02:25,160 Speaker 4: of Homus and the actual supply of oil. Therefore, the 50 00:02:25,200 --> 00:02:27,600 Speaker 4: Crew price coming down to around one point five percent, 51 00:02:27,639 --> 00:02:30,799 Speaker 4: and again we're not seeing a massive move in energy, 52 00:02:30,840 --> 00:02:33,359 Speaker 4: but it is still a move higher. And actually energy 53 00:02:33,400 --> 00:02:36,560 Speaker 4: the best performing sect over the past month given these 54 00:02:36,720 --> 00:02:39,440 Speaker 4: issues around around in the Middle East. The energy stocks 55 00:02:39,680 --> 00:02:42,800 Speaker 4: up around nine percent across that index over the past 56 00:02:42,840 --> 00:02:46,400 Speaker 4: month versus the actual broader index down around two percent. 57 00:02:46,440 --> 00:02:48,560 Speaker 4: So we can see that out performance and that is 58 00:02:48,639 --> 00:02:49,720 Speaker 4: continuing this morning. 59 00:02:50,840 --> 00:02:53,000 Speaker 3: Joe, what's happening with defense stocks in this environment? 60 00:02:53,520 --> 00:02:56,040 Speaker 4: So Defense, this is one that's really difficult to call 61 00:02:56,120 --> 00:02:59,000 Speaker 4: because we were seeing them higher on the trade gate 62 00:02:59,040 --> 00:03:01,120 Speaker 4: exchange to the exchange over in Germany. That gets to 63 00:03:01,160 --> 00:03:05,399 Speaker 4: the early trading, so we saw Ryan mattel bae Cohensburg 64 00:03:05,480 --> 00:03:07,880 Speaker 4: stab all of them gaining around two to three percent 65 00:03:07,919 --> 00:03:10,920 Speaker 4: in that early trade. Given these tensions are likely to 66 00:03:10,919 --> 00:03:15,160 Speaker 4: potentially put pressure further pressure on defense budgets. However, at 67 00:03:15,200 --> 00:03:17,560 Speaker 4: the moment they're actually declining, so we're seeing these docks 68 00:03:17,880 --> 00:03:21,079 Speaker 4: mostly lower by around two percent across the board. There's 69 00:03:21,120 --> 00:03:24,639 Speaker 4: a note out from city groups saying that potentially this 70 00:03:24,680 --> 00:03:27,640 Speaker 4: is all already priced in, and with an important summit 71 00:03:27,680 --> 00:03:30,519 Speaker 4: coming up in the Hague over the next couple of 72 00:03:30,600 --> 00:03:33,919 Speaker 4: days on NATO and on defense spending, if we only 73 00:03:33,960 --> 00:03:37,320 Speaker 4: see NATO hitting that target of three point five percent, 74 00:03:37,400 --> 00:03:40,600 Speaker 4: countries only committing to three point five percent of GDP 75 00:03:40,680 --> 00:03:43,840 Speaker 4: plus a little bit extra on related spending, that might 76 00:03:43,880 --> 00:03:47,240 Speaker 4: actually not be enough to lift the sector further. Therefore, 77 00:03:47,400 --> 00:03:49,600 Speaker 4: although we've seen these attacks over the weekend, we're not 78 00:03:49,720 --> 00:03:52,760 Speaker 4: actually seeing a positive move in defense stocks this morning, 79 00:03:53,000 --> 00:03:55,120 Speaker 4: and therefore that's probably the most surprising part of the 80 00:03:55,120 --> 00:03:55,760 Speaker 4: market today. 81 00:03:57,240 --> 00:04:01,360 Speaker 1: The Stock Movers podcast from Bloomberg Radio. Check back with 82 00:04:01,440 --> 00:04:04,200 Speaker 1: us throughout the day for the latest roundup of companies 83 00:04:04,240 --> 00:04:07,320 Speaker 1: making news on Wall Street and for the latest market 84 00:04:07,320 --> 00:04:11,720 Speaker 1: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 85 00:04:11,760 --> 00:04:15,000 Speaker 1: Bloomberg dot com, and on Applecarplay. And Android Auto with 86 00:04:15,080 --> 00:04:16,520 Speaker 1: the Bloomberg Business App.