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Speaker 2: Stock Movers Report, your roundup of companies making moves in
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Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: Then in Europe, I'm Stephen Carroll with Caroline Hepger, and
Speaker 1: we're joined by Bloomberg's Markets Today editor Sam Onstead. Sam,
Speaker 1: good morning. Let's start with energy stocks this morning, the
Speaker 1: likes of Shell reacting to the jump and oil prices
Speaker 1: we've seen.
Speaker 3: Yeah, I think quite a predictable move in oil companies
Speaker 3: this morning. Oil prices up, not moving quite as much
Speaker 3: as oil prices, so the crewed at the moment up
Speaker 3: by around eight percent. Most of the big oil companies
Speaker 3: are by somewhere between four and six percent. There is
Speaker 3: obviously a knee jerk reaction to oil prices going higher.
Speaker 3: That's obviously good for the sector in the short term.
Speaker 3: The question, of course, and the question really across global
Speaker 3: markets is how how sustained is this? How long does
Speaker 3: this go on for? But the knee jerk reaction is
Speaker 3: certainly one that's pushed it or prices up and European
Speaker 3: energy stocks to another record high.
Speaker 4: Sam, Good morning. Meanwhile, defense starts have also reacted sharply
Speaker 4: to the news. How investors thinking about this when it
Speaker 4: comes to BAE Systems and the other big defense names
Speaker 4: in Europe.
Speaker 3: So another similarly predictable move geopolitical and certainly an actual
Speaker 3: conflict in this case in the Middle East underpins the
Speaker 3: story that's been pushing defense stocks higher for the last
Speaker 3: four or five years. Particularly you know, obviously since Ukraine
Speaker 3: in twenty twenty two, global spending has been going up.
Speaker 3: This will underpin that story and those companies because of
Speaker 3: that outlook, Because of this enormous increase in spending which
Speaker 3: goes out for years and years and years and gives
Speaker 3: a very strong revenue outlook for many years to come,
Speaker 3: this kind of underpins that narrative.
Speaker 1: And of course there's also been major impact on travel
Speaker 1: as a result of the conflict that began over the weekend.
Speaker 1: What does that mean for the travel companies trading in Europe.
Speaker 3: So it's a lot of the same questions, you know,
Speaker 3: as to how long all of this goes on for.
Speaker 3: But there are two key things happening. One is the
Speaker 3: oil price story. There's again a knee jerk reaction to
Speaker 3: higher oil prices, potentially meaning higher fuel costs and therefore
Speaker 3: weighing on margins of airlines. But probably more significant today
Speaker 3: is the effective shutdown of flights in and around particular
Speaker 3: areas like Dubai kind of super connector airport. It's a
Speaker 3: very significant moment, a very significant challenge for the airline
Speaker 3: industry to move past. And you know, travel stocks in general,
Speaker 3: you know across Europe are falling on this news because
Speaker 3: of the impact it may well have on travel demand.
Speaker 3: You know, you noted company like ac or, for example,
Speaker 3: the hotel company, They're down nearly ten percent today, have
Speaker 3: a slightly higher exposure to the Middle East, so that
Speaker 3: whole sector taking a pretty heavy.
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