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Speaker 1: Well, let's take a look at some stocks on the
Speaker 1: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 1: by Bloomberg reporter Chloe Melachloy. Good morning. We're talking about
Speaker 1: a reversal in some senses on the market today versus
Speaker 1: what we saw yesterday. And I say, to an extent,
Speaker 1: let's start with the energy sector. BP shares rebounding today.
Speaker 3: Yeah. Absolutely, So this is really what we've been chating
Speaker 3: for the last few weeks. We get some sense that
Speaker 3: peace might be coming, and so we're seeing oil prices
Speaker 3: tumbling and oil companies going into the red, and then
Speaker 3: we get that potential piece threatened once again, and then
Speaker 3: oil is then going back up. And this is very
Speaker 3: much what's been happening now. So the ceasefire seems quite fragile.
Speaker 3: Fighting is very much continued in the Middle East, with
Speaker 3: a lot of Israeli strikes on Lebanon in particular, and
Speaker 3: Iran says that those strikes violate the terms of the
Speaker 3: seas Fire the strait of hormones is also still largely closed,
Speaker 3: and that was a key condition from the US side
Speaker 3: for the seas fire. So it's really unclear how long
Speaker 3: this will hold, and optimism as have faded a little bit,
Speaker 3: and that means that after suffering the biggest one day
Speaker 3: drop since April twenty twenty yesterday, oil is very much
Speaker 3: rebounded today and that could continue. We're seeing analysting that
Speaker 3: Brent is set to average more than one hundred dollars
Speaker 3: a barrel through twenty twenty six if the straight of
Speaker 3: hormones is to remain closed for another month, and so
Speaker 3: as a result of that, as a result of oil rebounding,
Speaker 3: we're seeing the likes of VP, equanor any all of
Speaker 3: those names very much going back up again after that
Speaker 3: huge drop yesterday.
Speaker 1: NOBP shares currently up two and a half percent in London.
Speaker 1: Of course, the opposite side to that story is what's
Speaker 1: been happening with airlines. We have seen shares an easy
Speaker 1: Jet fall this morning after the games we saw yesterday.
Speaker 3: Yeah, exactly, So it's very much that same reversal story.
Speaker 3: The optimism around ceasefire had really boosted airlines yesterday because
Speaker 3: of how vulnerable that sector had been to the conflict,
Speaker 3: and today that optimism, as we said, is fading once
Speaker 3: again and the impact of the war on jet fuel
Speaker 3: prices is once again top of mind. And so it
Speaker 3: also means that we might see more of those jet
Speaker 3: fuel shortages that have started to happen and happened in
Speaker 3: Italy for example. Bloomberg Aotangius analysts have also said that
Speaker 3: we're likely to see more cuts to earnings expectations for
Speaker 3: airlines because of those higher energy prices, and that is
Speaker 3: worth noting because we're of course now coming into earning
Speaker 3: season and that's really when we'll get more information from
Speaker 3: airlines about what the impact has been, how how much
Speaker 3: of a hit to the outlook for the entirety of
Speaker 3: twenty twenty six. This is going to take.
Speaker 1: Well, let's turn next to the luxury sector. ALVIMH shares
Speaker 1: this morning down three point one percent. What's going on?
Speaker 3: Yeah, So speaking of earning season that I've mentioned for airlines,
Speaker 3: it's very much starting next week in luxury is going
Speaker 3: to be the first big sector that we'll be hearing from,
Speaker 3: and LVMH is coming is the first one is coming
Speaker 3: on Monday, and it's reporting in quite a tough context.
Speaker 3: It's had the worst start of the year to year
Speaker 3: on record. It's done about twenty five percents since the
Speaker 3: beginning of the year. It's also weaker today, as you mentioned,
Speaker 3: and a list aren't expecting the first quarter to have
Speaker 3: been fantastic. There's very much going to be a continuation
Speaker 3: of some of the challenges it's already seen during the
Speaker 3: fourth quarter. There's a note out today from JP Morgan
Speaker 3: saying that categories like jewelry will be more resilience. That's
Speaker 3: good news for a company like leish More and less
Speaker 3: so for a company like LVMH. And it's going to
Speaker 3: be a bumpier quarter for leather goods and that happens
Speaker 3: to be one of the key businesses for LVMH. There's
Speaker 3: also some weakness still some weakness in the wines and
Speaker 3: spirits division that LVMH is going to have to contend with.
Speaker 3: So all of that is very much in focus and
Speaker 3: will also be getting updates from Caring NMS next week.
Speaker 3: So that's definitely going to be a big week for luxury.
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