WEBVTT - Shell Climbs, BAE Systems Jumps, IAG Plunges

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.920 --> 0:00:19.240
<v Speaker 1>Let's take a look at some stocks on the move today.

0:00:19.280 --> 0:00:21.759
<v Speaker 1>Then in Europe, I'm Stephen Carroll with Caroline Hepger, and

0:00:21.800 --> 0:00:25.680
<v Speaker 1>we're joined by Bloomberg's Markets Today editor Sam Onstead. Sam,

0:00:25.840 --> 0:00:29.639
<v Speaker 1>good morning. Let's start with energy stocks this morning, the

0:00:29.760 --> 0:00:32.760
<v Speaker 1>likes of Shell reacting to the jump and oil prices

0:00:32.760 --> 0:00:33.200
<v Speaker 1>we've seen.

0:00:34.360 --> 0:00:37.560
<v Speaker 3>Yeah, I think quite a predictable move in oil companies

0:00:37.560 --> 0:00:41.040
<v Speaker 3>this morning. Oil prices up, not moving quite as much

0:00:41.080 --> 0:00:43.599
<v Speaker 3>as oil prices, so the crewed at the moment up

0:00:43.600 --> 0:00:46.120
<v Speaker 3>by around eight percent. Most of the big oil companies

0:00:46.120 --> 0:00:49.879
<v Speaker 3>are by somewhere between four and six percent. There is

0:00:50.400 --> 0:00:53.280
<v Speaker 3>obviously a knee jerk reaction to oil prices going higher.

0:00:53.320 --> 0:00:55.880
<v Speaker 3>That's obviously good for the sector in the short term.

0:00:55.920 --> 0:00:58.520
<v Speaker 3>The question, of course, and the question really across global

0:00:58.520 --> 0:01:01.880
<v Speaker 3>markets is how how sustained is this? How long does

0:01:01.920 --> 0:01:04.800
<v Speaker 3>this go on for? But the knee jerk reaction is

0:01:04.840 --> 0:01:07.640
<v Speaker 3>certainly one that's pushed it or prices up and European

0:01:07.840 --> 0:01:10.000
<v Speaker 3>energy stocks to another record high.

0:01:10.680 --> 0:01:14.600
<v Speaker 4>Sam, Good morning. Meanwhile, defense starts have also reacted sharply

0:01:14.760 --> 0:01:17.960
<v Speaker 4>to the news. How investors thinking about this when it

0:01:18.040 --> 0:01:20.720
<v Speaker 4>comes to BAE Systems and the other big defense names

0:01:20.760 --> 0:01:21.280
<v Speaker 4>in Europe.

0:01:22.560 --> 0:01:28.520
<v Speaker 3>So another similarly predictable move geopolitical and certainly an actual

0:01:28.600 --> 0:01:31.680
<v Speaker 3>conflict in this case in the Middle East underpins the

0:01:31.760 --> 0:01:34.199
<v Speaker 3>story that's been pushing defense stocks higher for the last

0:01:34.400 --> 0:01:37.759
<v Speaker 3>four or five years. Particularly you know, obviously since Ukraine

0:01:37.880 --> 0:01:41.960
<v Speaker 3>in twenty twenty two, global spending has been going up.

0:01:42.040 --> 0:01:44.600
<v Speaker 3>This will underpin that story and those companies because of

0:01:44.680 --> 0:01:48.000
<v Speaker 3>that outlook, Because of this enormous increase in spending which

0:01:48.080 --> 0:01:50.800
<v Speaker 3>goes out for years and years and years and gives

0:01:50.840 --> 0:01:53.760
<v Speaker 3>a very strong revenue outlook for many years to come,

0:01:54.680 --> 0:01:56.800
<v Speaker 3>this kind of underpins that narrative.

0:01:57.600 --> 0:02:00.440
<v Speaker 1>And of course there's also been major impact on travel

0:02:00.480 --> 0:02:04.400
<v Speaker 1>as a result of the conflict that began over the weekend.

0:02:04.560 --> 0:02:08.040
<v Speaker 1>What does that mean for the travel companies trading in Europe.

0:02:08.760 --> 0:02:10.359
<v Speaker 3>So it's a lot of the same questions, you know,

0:02:10.800 --> 0:02:12.480
<v Speaker 3>as to how long all of this goes on for.

0:02:12.760 --> 0:02:15.560
<v Speaker 3>But there are two key things happening. One is the

0:02:15.639 --> 0:02:18.720
<v Speaker 3>oil price story. There's again a knee jerk reaction to

0:02:19.040 --> 0:02:21.960
<v Speaker 3>higher oil prices, potentially meaning higher fuel costs and therefore

0:02:22.040 --> 0:02:25.760
<v Speaker 3>weighing on margins of airlines. But probably more significant today

0:02:26.440 --> 0:02:30.840
<v Speaker 3>is the effective shutdown of flights in and around particular

0:02:30.919 --> 0:02:33.799
<v Speaker 3>areas like Dubai kind of super connector airport. It's a

0:02:34.160 --> 0:02:38.280
<v Speaker 3>very significant moment, a very significant challenge for the airline

0:02:38.320 --> 0:02:42.000
<v Speaker 3>industry to move past. And you know, travel stocks in general,

0:02:42.120 --> 0:02:45.720
<v Speaker 3>you know across Europe are falling on this news because

0:02:45.760 --> 0:02:48.440
<v Speaker 3>of the impact it may well have on travel demand.

0:02:49.000 --> 0:02:50.960
<v Speaker 3>You know, you noted company like ac or, for example,

0:02:51.040 --> 0:02:53.239
<v Speaker 3>the hotel company, They're down nearly ten percent today, have

0:02:53.320 --> 0:02:56.079
<v Speaker 3>a slightly higher exposure to the Middle East, so that

0:02:56.240 --> 0:02:58.760
<v Speaker 3>whole sector taking a pretty heavy.

0:02:58.639 --> 0:03:03.920
<v Speaker 2>Hit Todaymover's report from Bloomberg Radio. Check back with us

0:03:03.960 --> 0:03:06.720
<v Speaker 2>throughout the day for the latest roundup of companies making

0:03:06.840 --> 0:03:10.399
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:03:10.680 --> 0:03:14.639
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:03:14.720 --> 0:03:17.760
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:03:17.800 --> 0:03:19.119
<v Speaker 2>Bloomberg Business app.