WEBVTT - Aramco Up, Lufthansa Dips, Rheinmetall Down

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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 have a look at these stocks on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hebgar with Stephen Cawen.

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<v Speaker 3>We're joined by Bloomberg reporter Louise Moon. Louise, should we

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<v Speaker 3>start with Aramco and the latest moves given what's happening

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<v Speaker 3>in the Middle East?

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<v Speaker 1>Yeah, exactly. So there's been energy as a whole is

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<v Speaker 1>or has been, and is today, you know, the key focus.

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<v Speaker 1>There's been a step up in efforts to kind of

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<v Speaker 1>calm the energy markets after of course a hugely volatile

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<v Speaker 1>few days. So the IEA, the International Energy Agency, is

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<v Speaker 1>there's a report that's proposing to release the largest ever

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<v Speaker 1>emergency reserves that it would exceed you know, the amount

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<v Speaker 1>they released after Russia and by Ukraine for example, and

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<v Speaker 1>they're expected to decide on that today. That plus you know,

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<v Speaker 1>comments by Trump earlier this week suggesting that the US

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<v Speaker 1>might be close to achieving their military goals. It's kind

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<v Speaker 1>of easing this surge of energy prices that we have

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<v Speaker 1>been seeing, so it's a bit of a mixed bag today. Aramco,

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<v Speaker 1>as you mentioned, is higher shell, very slightly higher BP,

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<v Speaker 1>very slightly in the red, Varlet Energy and also in

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<v Speaker 1>Oslo also slightly in the red. So there's a lot

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<v Speaker 1>of mixed messages, a lot of uncertainty still and those

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<v Speaker 1>kind of major energy stocks almost wavering as they await that.

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<v Speaker 1>But ultimately there's there seems to be at the moment

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<v Speaker 1>a lot more calm after a few days of hugely

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<v Speaker 1>volatile and major moves in those stocks.

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<v Speaker 2>Okay, So that's the position with energy stocks.

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<v Speaker 1>Another sector though, that has been very much affected by

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<v Speaker 1>the Iran war has been airlines.

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<v Speaker 2>What's the latest this morning?

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<v Speaker 1>Indeed, Yes, obviously as you say exposed, you know, fuel

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<v Speaker 1>costs going up, jets displaced, they're flying different routes to

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<v Speaker 1>longer routes, using more fuel. So shares have been hugely

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<v Speaker 1>hit today. Again also a slightly mixed bag. There's that

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<v Speaker 1>uncertainty that I mentioned. So you look at Ryanair slightly

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<v Speaker 1>into the green whizz a slightly lower IAG are seeing

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<v Speaker 1>losses a bit more contained today. There's been kind of

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<v Speaker 1>separate news from them that they're adding flights to Asia

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<v Speaker 1>and Africa. There's obviously more long haul demand as people

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<v Speaker 1>want alternatives to Middle East carriers, so iag are putting

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<v Speaker 1>on more flights from London to Singapore and Bangkok, so

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<v Speaker 1>they're using that aircraft that they're not needing at the moment.

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<v Speaker 1>In the Gulf region, Lufthansa is also doing the same,

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<v Speaker 1>so from Germany to Singapore and other locations. And one

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<v Speaker 1>of it, there was a good quote from an aviation

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<v Speaker 1>analyst saying that this is understandable, you know, using of

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<v Speaker 1>their resources. So that's kind of containing some of those

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<v Speaker 1>losses stay and as I say, it's also part of

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<v Speaker 1>that wider story of a bit of a wait and see.

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<v Speaker 1>So a slight mixed bag for.

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<v Speaker 3>Airlines, okay, and what about defense companies inarticular Ryan Mattal

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<v Speaker 3>the latest there.

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<v Speaker 1>Yeah, Rhyme Mattal falling as much as five point five

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<v Speaker 1>percent today, So kind of an individual story there in

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<v Speaker 1>a sense that this is after their twenty twenty six

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<v Speaker 1>sales outlook fell short of estimates. They're predicting sales as

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<v Speaker 1>high as fifteen point five billion euros, that is, gains

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<v Speaker 1>of forty five percent on the year before. But it's

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<v Speaker 1>still short of expectations, So it just shows how high

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<v Speaker 1>the bar is from investors at the moment for defense contractors,

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<v Speaker 1>but also particularly Rhyme Mettal. Obviously it's been a huge

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<v Speaker 1>beneficiary of this uptic in defense spending that we've been

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<v Speaker 1>seeing since Ukraine War in twenty twenty two. Rhyme Mettal

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<v Speaker 1>in particularly, their shares have gained nearly one thousand, eight

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<v Speaker 1>hundred percent since then. So Alyss is saying that, you know,

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<v Speaker 1>disappointing results is disappointing guidance, especially as consensus had already

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<v Speaker 1>dropped a bit in recent weeks, and that that narrative

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<v Speaker 1>has really changed, so investors are really now focused on

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<v Speaker 1>Ryemettal's execution and they're a bit to convert these orders

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<v Speaker 1>into sales. And then they had a slight bit of

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<v Speaker 1>commentary on the Iran War. They're saying that they see

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<v Speaker 1>themselves as world positioned to replenish the US's stockpiles for

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<v Speaker 1>Iran and that some of their air defense systems are

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<v Speaker 1>already in use in the region. But all of that,

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<v Speaker 1>despite that, you know, uptick in sales that fell short

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<v Speaker 1>investments and shares a dragging on.

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<v Speaker 2>That morning, the stock movers report from Bloomberg Radio. Check

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