WEBVTT - Equinor Falls, Ryanair Gains, McBride Drops

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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>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move to Daniel obviously, I'm James Wilcock and

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<v Speaker 3>when with Caroline Hecker and we are joined as ever

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<v Speaker 3>at Bloomberg Reports to cloim Melee, let's start play with

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<v Speaker 3>some of the moves for equinor coming hot on the

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<v Speaker 3>heels of a new deal.

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<v Speaker 1>Yeah, so we were seeing a big drop in the

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<v Speaker 1>oil price today because it looks like we might get

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<v Speaker 1>a piece still in Iran, and so we are seeing

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<v Speaker 1>some of those oil majors reacting to that. Of course,

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<v Speaker 1>so Trump said that an agreement was closed and that

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<v Speaker 1>he wouldn't strike Iran, and so that came just hours

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<v Speaker 1>after he said that he would actually hit the Islamic

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<v Speaker 1>Republic very hard, very hard in all caps, and also

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<v Speaker 1>threatened to seize its oil infrastructure. Iran has not confirmed

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<v Speaker 1>anything about this potential peace still, and of course there's

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<v Speaker 1>been a hope of a deal quite a few times

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<v Speaker 1>since the war started a few months ago. So there

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<v Speaker 1>is nothing that is really set in stone yet, but

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<v Speaker 1>the markets reacted very strongly regardless, and we have oil

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<v Speaker 1>really plunging, and then in turn, of course, that is

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<v Speaker 1>leading all of this oil majors down. So Equinor in

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<v Speaker 1>the red today the one that is doing the worst.

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<v Speaker 1>But then we've also got Shell, any BP, all of

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<v Speaker 1>those names also in the red. So there's obviously been

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<v Speaker 1>quite a lot of up and down in that sector

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<v Speaker 1>as we've seen tensions ease and then flow up again.

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<v Speaker 1>But overall, since the beginning of the war, those companies

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<v Speaker 1>have been doing pretty well. You know, Shell is about

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<v Speaker 1>eighteen percent year today, Equinor up about forty seven percent.

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<v Speaker 1>But today yeah, seeing a little bit of weakness as

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<v Speaker 1>maybe that piece deal will actually happen. Yeah. Well, speaking

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<v Speaker 1>of which, it's also affecting other parts of the market.

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<v Speaker 3>You think about airline and travel and leisure. Talk to

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<v Speaker 3>us about Ryana.

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<v Speaker 1>Yeah, So usually when we get those oil majors down,

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<v Speaker 1>we get those airlines up, and so we are seeing

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<v Speaker 1>that happening today. Ryanair doing very well, very much in

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<v Speaker 1>the green. Of course, the enter the conflict would mean

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<v Speaker 1>the reopening of the Strait of Hormus, and then that

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<v Speaker 1>would potentially mean that then a normalization of oil flows

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<v Speaker 1>over time, and following on from that, normalization of fuel costs,

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<v Speaker 1>and so of course that would be great for all

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<v Speaker 1>of those airlines. Obviously that would take a while, even

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<v Speaker 1>if we do get a deal this weekend. You know,

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<v Speaker 1>the output would need to be to need to ram

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<v Speaker 1>back up some. A lot of the facilities in the

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<v Speaker 1>Middle East, the oil facilities have also been damaged, so

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<v Speaker 1>it could really take months or years to get back

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<v Speaker 1>on track. But there is still quite a lot of

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<v Speaker 1>optimism in that travel sector this morning, and I seeing

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<v Speaker 1>Ryanair a two E Leftanza, even some of the airport

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<v Speaker 1>operators themselves, so you know, companies like Aeroboda, Bari or

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<v Speaker 1>for Airport which operates the Frankfurt Airport, all of those

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<v Speaker 1>names in the green this morning. But again it is

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<v Speaker 1>worth noting that those fuel costs will not come down

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<v Speaker 1>overnight even if we do get that piece still this weekend.

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<v Speaker 3>And detergent Maker Bride have plunged this morning. Why have

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<v Speaker 3>they been cleaned out?

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<v Speaker 1>So yeah, I mean this is very much still within

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<v Speaker 1>this war theme. So McBride is an example of how

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<v Speaker 1>the Iran war has really affected so many different sectors

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<v Speaker 1>in both you know, major companies like Shell and Luftanza,

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<v Speaker 1>but also there's much smaller firms. So McBride makes cleaning products,

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<v Speaker 1>as you said, and it's down massively today because it

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<v Speaker 1>cut its guidance because of the higher costs from the

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<v Speaker 1>Iran war. So you know, cleaning products are made with

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<v Speaker 1>raw materials that are derived from the petrochemical industry, and

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<v Speaker 1>they are also packaged in plastic, which is also derived

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<v Speaker 1>from that industry, and then they need to be shipped

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<v Speaker 1>and those ships obviously need oil to transport goods, so

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<v Speaker 1>that means across the entire supply chain, McBride is facing

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<v Speaker 1>all of that cost pressure, and so it said that

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<v Speaker 1>it did not expect cost to rise further or to

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<v Speaker 1>decline any time soon, so at least it's steady, but

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<v Speaker 1>of course it does have a financial impact and it

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<v Speaker 1>expects profit to be down as much as ten percent

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<v Speaker 1>and lower than expectations, and so of course shares plunged

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<v Speaker 1>as a result.

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<v Speaker 2>From McBride the Stockmovers Report from Bloomberg Radio. Check back

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