WEBVTT - BP Rebounds, easyJet Drops, LVMH Down

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

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 1>by Bloomberg reporter Chloe Melachloy. Good morning. We're talking about

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<v Speaker 1>a reversal in some senses on the market today versus

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<v Speaker 1>what we saw yesterday. And I say, to an extent,

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<v Speaker 1>let's start with the energy sector. BP shares rebounding today.

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<v Speaker 3>Yeah. Absolutely, So this is really what we've been chating

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<v Speaker 3>for the last few weeks. We get some sense that

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<v Speaker 3>peace might be coming, and so we're seeing oil prices

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<v Speaker 3>tumbling and oil companies going into the red, and then

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<v Speaker 3>we get that potential piece threatened once again, and then

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<v Speaker 3>oil is then going back up. And this is very

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<v Speaker 3>much what's been happening now. So the ceasefire seems quite fragile.

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<v Speaker 3>Fighting is very much continued in the Middle East, with

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<v Speaker 3>a lot of Israeli strikes on Lebanon in particular, and

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<v Speaker 3>Iran says that those strikes violate the terms of the

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<v Speaker 3>seas Fire the strait of hormones is also still largely closed,

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<v Speaker 3>and that was a key condition from the US side

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<v Speaker 3>for the seas fire. So it's really unclear how long

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<v Speaker 3>this will hold, and optimism as have faded a little bit,

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<v Speaker 3>and that means that after suffering the biggest one day

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<v Speaker 3>drop since April twenty twenty yesterday, oil is very much

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<v Speaker 3>rebounded today and that could continue. We're seeing analysting that

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<v Speaker 3>Brent is set to average more than one hundred dollars

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<v Speaker 3>a barrel through twenty twenty six if the straight of

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<v Speaker 3>hormones is to remain closed for another month, and so

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<v Speaker 3>as a result of that, as a result of oil rebounding,

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<v Speaker 3>we're seeing the likes of VP, equanor any all of

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<v Speaker 3>those names very much going back up again after that

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<v Speaker 3>huge drop yesterday.

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<v Speaker 1>NOBP shares currently up two and a half percent in London.

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<v Speaker 1>Of course, the opposite side to that story is what's

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<v Speaker 1>been happening with airlines. We have seen shares an easy

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<v Speaker 1>Jet fall this morning after the games we saw yesterday.

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<v Speaker 3>Yeah, exactly, So it's very much that same reversal story.

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<v Speaker 3>The optimism around ceasefire had really boosted airlines yesterday because

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<v Speaker 3>of how vulnerable that sector had been to the conflict,

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<v Speaker 3>and today that optimism, as we said, is fading once

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<v Speaker 3>again and the impact of the war on jet fuel

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<v Speaker 3>prices is once again top of mind. And so it

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<v Speaker 3>also means that we might see more of those jet

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<v Speaker 3>fuel shortages that have started to happen and happened in

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<v Speaker 3>Italy for example. Bloomberg Aotangius analysts have also said that

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<v Speaker 3>we're likely to see more cuts to earnings expectations for

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<v Speaker 3>airlines because of those higher energy prices, and that is

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<v Speaker 3>worth noting because we're of course now coming into earning

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<v Speaker 3>season and that's really when we'll get more information from

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<v Speaker 3>airlines about what the impact has been, how how much

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<v Speaker 3>of a hit to the outlook for the entirety of

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<v Speaker 3>twenty twenty six. This is going to take.

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<v Speaker 1>Well, let's turn next to the luxury sector. ALVIMH shares

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<v Speaker 1>this morning down three point one percent. What's going on?

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<v Speaker 3>Yeah, So speaking of earning season that I've mentioned for airlines,

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<v Speaker 3>it's very much starting next week in luxury is going

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<v Speaker 3>to be the first big sector that we'll be hearing from,

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<v Speaker 3>and LVMH is coming is the first one is coming

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<v Speaker 3>on Monday, and it's reporting in quite a tough context.

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<v Speaker 3>It's had the worst start of the year to year

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<v Speaker 3>on record. It's done about twenty five percents since the

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<v Speaker 3>beginning of the year. It's also weaker today, as you mentioned,

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<v Speaker 3>and a list aren't expecting the first quarter to have

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<v Speaker 3>been fantastic. There's very much going to be a continuation

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<v Speaker 3>of some of the challenges it's already seen during the

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<v Speaker 3>fourth quarter. There's a note out today from JP Morgan

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<v Speaker 3>saying that categories like jewelry will be more resilience. That's

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<v Speaker 3>good news for a company like leish More and less

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<v Speaker 3>so for a company like LVMH. And it's going to

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<v Speaker 3>be a bumpier quarter for leather goods and that happens

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<v Speaker 3>to be one of the key businesses for LVMH. There's

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<v Speaker 3>also some weakness still some weakness in the wines and

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<v Speaker 3>spirits division that LVMH is going to have to contend with.

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<v Speaker 3>So all of that is very much in focus and

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<v Speaker 3>will also be getting updates from Caring NMS next week.

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<v Speaker 3>So that's definitely going to be a big week for luxury.

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