1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,920 --> 00:00:19,240 Speaker 1: Let's take a look at some stocks on the move today. 5 00:00:19,280 --> 00:00:21,759 Speaker 1: Then in Europe, I'm Stephen Carroll with Caroline Hepger, and 6 00:00:21,800 --> 00:00:25,680 Speaker 1: we're joined by Bloomberg's Markets Today editor Sam Onstead. Sam, 7 00:00:25,840 --> 00:00:29,639 Speaker 1: good morning. Let's start with energy stocks this morning, the 8 00:00:29,760 --> 00:00:32,760 Speaker 1: likes of Shell reacting to the jump and oil prices 9 00:00:32,760 --> 00:00:33,200 Speaker 1: we've seen. 10 00:00:34,360 --> 00:00:37,560 Speaker 3: Yeah, I think quite a predictable move in oil companies 11 00:00:37,560 --> 00:00:41,040 Speaker 3: this morning. Oil prices up, not moving quite as much 12 00:00:41,080 --> 00:00:43,599 Speaker 3: as oil prices, so the crewed at the moment up 13 00:00:43,600 --> 00:00:46,120 Speaker 3: by around eight percent. Most of the big oil companies 14 00:00:46,120 --> 00:00:49,879 Speaker 3: are by somewhere between four and six percent. There is 15 00:00:50,400 --> 00:00:53,280 Speaker 3: obviously a knee jerk reaction to oil prices going higher. 16 00:00:53,320 --> 00:00:55,880 Speaker 3: That's obviously good for the sector in the short term. 17 00:00:55,920 --> 00:00:58,520 Speaker 3: The question, of course, and the question really across global 18 00:00:58,520 --> 00:01:01,880 Speaker 3: markets is how how sustained is this? How long does 19 00:01:01,920 --> 00:01:04,800 Speaker 3: this go on for? But the knee jerk reaction is 20 00:01:04,840 --> 00:01:07,640 Speaker 3: certainly one that's pushed it or prices up and European 21 00:01:07,840 --> 00:01:10,000 Speaker 3: energy stocks to another record high. 22 00:01:10,680 --> 00:01:14,600 Speaker 4: Sam, Good morning. Meanwhile, defense starts have also reacted sharply 23 00:01:14,760 --> 00:01:17,960 Speaker 4: to the news. How investors thinking about this when it 24 00:01:18,040 --> 00:01:20,720 Speaker 4: comes to BAE Systems and the other big defense names 25 00:01:20,760 --> 00:01:21,280 Speaker 4: in Europe. 26 00:01:22,560 --> 00:01:28,520 Speaker 3: So another similarly predictable move geopolitical and certainly an actual 27 00:01:28,600 --> 00:01:31,680 Speaker 3: conflict in this case in the Middle East underpins the 28 00:01:31,760 --> 00:01:34,199 Speaker 3: story that's been pushing defense stocks higher for the last 29 00:01:34,400 --> 00:01:37,759 Speaker 3: four or five years. Particularly you know, obviously since Ukraine 30 00:01:37,880 --> 00:01:41,960 Speaker 3: in twenty twenty two, global spending has been going up. 31 00:01:42,040 --> 00:01:44,600 Speaker 3: This will underpin that story and those companies because of 32 00:01:44,680 --> 00:01:48,000 Speaker 3: that outlook, Because of this enormous increase in spending which 33 00:01:48,080 --> 00:01:50,800 Speaker 3: goes out for years and years and years and gives 34 00:01:50,840 --> 00:01:53,760 Speaker 3: a very strong revenue outlook for many years to come, 35 00:01:54,680 --> 00:01:56,800 Speaker 3: this kind of underpins that narrative. 36 00:01:57,600 --> 00:02:00,440 Speaker 1: And of course there's also been major impact on travel 37 00:02:00,480 --> 00:02:04,400 Speaker 1: as a result of the conflict that began over the weekend. 38 00:02:04,560 --> 00:02:08,040 Speaker 1: What does that mean for the travel companies trading in Europe. 39 00:02:08,760 --> 00:02:10,359 Speaker 3: So it's a lot of the same questions, you know, 40 00:02:10,800 --> 00:02:12,480 Speaker 3: as to how long all of this goes on for. 41 00:02:12,760 --> 00:02:15,560 Speaker 3: But there are two key things happening. One is the 42 00:02:15,639 --> 00:02:18,720 Speaker 3: oil price story. There's again a knee jerk reaction to 43 00:02:19,040 --> 00:02:21,960 Speaker 3: higher oil prices, potentially meaning higher fuel costs and therefore 44 00:02:22,040 --> 00:02:25,760 Speaker 3: weighing on margins of airlines. But probably more significant today 45 00:02:26,440 --> 00:02:30,840 Speaker 3: is the effective shutdown of flights in and around particular 46 00:02:30,919 --> 00:02:33,799 Speaker 3: areas like Dubai kind of super connector airport. It's a 47 00:02:34,160 --> 00:02:38,280 Speaker 3: very significant moment, a very significant challenge for the airline 48 00:02:38,320 --> 00:02:42,000 Speaker 3: industry to move past. And you know, travel stocks in general, 49 00:02:42,120 --> 00:02:45,720 Speaker 3: you know across Europe are falling on this news because 50 00:02:45,760 --> 00:02:48,440 Speaker 3: of the impact it may well have on travel demand. 51 00:02:49,000 --> 00:02:50,960 Speaker 3: You know, you noted company like ac or, for example, 52 00:02:51,040 --> 00:02:53,239 Speaker 3: the hotel company, They're down nearly ten percent today, have 53 00:02:53,320 --> 00:02:56,079 Speaker 3: a slightly higher exposure to the Middle East, so that 54 00:02:56,240 --> 00:02:58,760 Speaker 3: whole sector taking a pretty heavy. 55 00:02:58,639 --> 00:03:03,920 Speaker 2: Hit Todaymover's report from Bloomberg Radio. 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