WEBVTT - Vistry Sags, Jet2 Beats, Repsol Rises

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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 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>All right, let's have a look at some stocks on

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<v Speaker 3>the move today here in EU. I'm Caroline Hepgar with

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<v Speaker 3>Lizzie Burton, and we're joined by our Bloomberg with Project

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<v Speaker 3>Clone Malay. An update from the home builder Vistry today.

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<v Speaker 3>It really does not seem to have please inveses at all.

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<v Speaker 4>Not at all.

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<v Speaker 5>No, so Vistrey is warning of quite a tough year ahead.

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<v Speaker 5>So it already had a profit warning back in May,

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<v Speaker 5>and it came back today with an update that's not

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<v Speaker 5>very reassuring. So it said that it expects a pretext

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<v Speaker 5>loss of about thirty million pounds for the first half

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<v Speaker 5>of the year. We just said that was because of

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<v Speaker 5>measures that it is taking to quickly raise cash.

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<v Speaker 4>And then in addition to that, there's.

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<v Speaker 5>An ongoing review that the CEO has started that could

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<v Speaker 5>hit profit even more. The results of the review will

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<v Speaker 5>be in now in September. But the company did give

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<v Speaker 5>a little bit of a taste of what's to come,

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<v Speaker 5>so it said it would reegotiate contracts and scale back

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<v Speaker 5>land purchases to try and bring down a debt. And

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<v Speaker 5>then in addition to all of this, the CFO is

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<v Speaker 5>also leaving. So it's a lot happening for history. It's

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<v Speaker 5>not very positive. It's obviously been a very difficult time

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<v Speaker 5>for home builders generally lately. Those high energy costs mean

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<v Speaker 5>that there's been a surge in the raw materials raw

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<v Speaker 5>material costs, and then the home buyers, potential home buyers

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<v Speaker 5>are not very confident at the moment because of those

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<v Speaker 5>high morbit rates.

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<v Speaker 3>Yeah, although I do wonder this is the new CEO,

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<v Speaker 3>isn't it, And so you sort of want to also

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<v Speaker 3>if it's kind of kitchen sink as they try to

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<v Speaker 3>turn things around.

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<v Speaker 1>Perhaps yes, maybe Okay, And let's also talk about another

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<v Speaker 1>stock in the airline space. Earlier this week we talked

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<v Speaker 1>a lot about EasyJet. Yes, but it's the summer season,

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<v Speaker 1>so let's talk about Jet too as well.

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<v Speaker 4>Yeah.

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<v Speaker 5>Absolutely so, a big jump for Jetsu this morning of

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<v Speaker 5>the back of quite an encouraging update for the company.

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<v Speaker 4>The results came in line with expectations.

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<v Speaker 5>It said that the bookings for this summer were currently

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<v Speaker 5>ahead of the summer last year that there was really

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<v Speaker 5>growing them on for the package holidays that Jetsu is

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<v Speaker 5>famous for.

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<v Speaker 4>And on the cost side, it seems that it's.

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<v Speaker 5>Doing okay actually with actually good fuel hedges, so the

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<v Speaker 5>same thing that Ryan there is benefiting from. And so

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<v Speaker 5>all of that means that it is able to return

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<v Speaker 5>cash to shareholders with a two hundred and fifty pound buyback.

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<v Speaker 5>So overall, very reassuring update from a company that is

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<v Speaker 5>part of this struggling sector. Of course, you mentioned that

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<v Speaker 5>we've been talking a lot about easy Jet and just

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<v Speaker 5>overall there's been so much talk about those higher fuel costs,

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<v Speaker 5>that low consumer confidence really hitting the airline industry. But

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<v Speaker 5>it's quite interesting to see a budget airline like Jet

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<v Speaker 5>to manage those challenges actually quite well.

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<v Speaker 4>It seems.

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<v Speaker 3>Yeah, absolutely so that on the holiday company Jet to

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<v Speaker 3>Repsol advancing in trading in Madrid.

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<v Speaker 4>What's behind that move? We're seeing all prices.

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<v Speaker 5>Yes, yeah, yeah, So there's a company specific reason and

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<v Speaker 5>then the kind of wider sector reason for reps So the

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<v Speaker 5>company specific reason is that they came out with some

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<v Speaker 5>updates about the refining margin, said that there was a

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<v Speaker 5>very strong refining margin in the second quarter, so echoing

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<v Speaker 5>what we heard from Shell in their production update earlier

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<v Speaker 5>in the week, and then the sector wide reason as

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<v Speaker 5>you mentioned, Caroline, this is about those oil prices rallying

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<v Speaker 5>because of this US around deal looking increasingly fragile, with

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<v Speaker 5>the US striking multiple targets and around after attacks on

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<v Speaker 5>ships in the Strait of Hormus. So this suggests that

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<v Speaker 5>there might be continued disruption to oil flows, and so

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<v Speaker 5>of course that is boosting crude prices. And you know,

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<v Speaker 5>we have seen that volatility be a really great earnings

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<v Speaker 5>boost for those companies in the second quarter, and it

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<v Speaker 5>seems that the third quarter is shaping up to be

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<v Speaker 5>just as volatile. If those strikes continue, that will have

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<v Speaker 5>obviously implications for the oil sector, but a bunch of

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<v Speaker 5>other sectors as well, So I'll be keeping an eye

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<v Speaker 5>on that.

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