Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some of the stocks
Speaker 3: on the move to Daniel obviously, I'm James Wilcock and
Speaker 3: when with Caroline Hecker and we are joined as ever
Speaker 3: at Bloomberg Reports to cloim Melee, let's start play with
Speaker 3: some of the moves for equinor coming hot on the
Speaker 3: heels of a new deal.
Speaker 1: Yeah, so we were seeing a big drop in the
Speaker 1: oil price today because it looks like we might get
Speaker 1: a piece still in Iran, and so we are seeing
Speaker 1: some of those oil majors reacting to that. Of course,
Speaker 1: so Trump said that an agreement was closed and that
Speaker 1: he wouldn't strike Iran, and so that came just hours
Speaker 1: after he said that he would actually hit the Islamic
Speaker 1: Republic very hard, very hard in all caps, and also
Speaker 1: threatened to seize its oil infrastructure. Iran has not confirmed
Speaker 1: anything about this potential peace still, and of course there's
Speaker 1: been a hope of a deal quite a few times
Speaker 1: since the war started a few months ago. So there
Speaker 1: is nothing that is really set in stone yet, but
Speaker 1: the markets reacted very strongly regardless, and we have oil
Speaker 1: really plunging, and then in turn, of course, that is
Speaker 1: leading all of this oil majors down. So Equinor in
Speaker 1: the red today the one that is doing the worst.
Speaker 1: But then we've also got Shell, any BP, all of
Speaker 1: those names also in the red. So there's obviously been
Speaker 1: quite a lot of up and down in that sector
Speaker 1: as we've seen tensions ease and then flow up again.
Speaker 1: But overall, since the beginning of the war, those companies
Speaker 1: have been doing pretty well. You know, Shell is about
Speaker 1: eighteen percent year today, Equinor up about forty seven percent.
Speaker 1: But today yeah, seeing a little bit of weakness as
Speaker 1: maybe that piece deal will actually happen. Yeah. Well, speaking
Speaker 1: of which, it's also affecting other parts of the market.
Speaker 3: You think about airline and travel and leisure. Talk to
Speaker 3: us about Ryana.
Speaker 1: Yeah, So usually when we get those oil majors down,
Speaker 1: we get those airlines up, and so we are seeing
Speaker 1: that happening today. Ryanair doing very well, very much in
Speaker 1: the green. Of course, the enter the conflict would mean
Speaker 1: the reopening of the Strait of Hormus, and then that
Speaker 1: would potentially mean that then a normalization of oil flows
Speaker 1: over time, and following on from that, normalization of fuel costs,
Speaker 1: and so of course that would be great for all
Speaker 1: of those airlines. Obviously that would take a while, even
Speaker 1: if we do get a deal this weekend. You know,
Speaker 1: the output would need to be to need to ram
Speaker 1: back up some. A lot of the facilities in the
Speaker 1: Middle East, the oil facilities have also been damaged, so
Speaker 1: it could really take months or years to get back
Speaker 1: on track. But there is still quite a lot of
Speaker 1: optimism in that travel sector this morning, and I seeing
Speaker 1: Ryanair a two E Leftanza, even some of the airport
Speaker 1: operators themselves, so you know, companies like Aeroboda, Bari or
Speaker 1: for Airport which operates the Frankfurt Airport, all of those
Speaker 1: names in the green this morning. But again it is
Speaker 1: worth noting that those fuel costs will not come down
Speaker 1: overnight even if we do get that piece still this weekend.
Speaker 3: And detergent Maker Bride have plunged this morning. Why have
Speaker 3: they been cleaned out?
Speaker 1: So yeah, I mean this is very much still within
Speaker 1: this war theme. So McBride is an example of how
Speaker 1: the Iran war has really affected so many different sectors
Speaker 1: in both you know, major companies like Shell and Luftanza,
Speaker 1: but also there's much smaller firms. So McBride makes cleaning products,
Speaker 1: as you said, and it's down massively today because it
Speaker 1: cut its guidance because of the higher costs from the
Speaker 1: Iran war. So you know, cleaning products are made with
Speaker 1: raw materials that are derived from the petrochemical industry, and
Speaker 1: they are also packaged in plastic, which is also derived
Speaker 1: from that industry, and then they need to be shipped
Speaker 1: and those ships obviously need oil to transport goods, so
Speaker 1: that means across the entire supply chain, McBride is facing
Speaker 1: all of that cost pressure, and so it said that
Speaker 1: it did not expect cost to rise further or to
Speaker 1: decline any time soon, so at least it's steady, but
Speaker 1: of course it does have a financial impact and it
Speaker 1: expects profit to be down as much as ten percent
Speaker 1: and lower than expectations, and so of course shares plunged
Speaker 1: as a result.
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