1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,400 --> 00:00:17,759 Speaker 1: Let's take a look at some of the stocks on 5 00:00:17,800 --> 00:00:19,919 Speaker 1: the move today here in Europe. I'm Caroline Hepgar with 6 00:00:20,040 --> 00:00:22,320 Speaker 1: Lizzie Burdener. We're joined by Bloomberg. We've brought a tia 7 00:00:22,360 --> 00:00:26,640 Speaker 1: adebayo tiva. Good morning, So we're looking at European stocks 8 00:00:26,840 --> 00:00:29,920 Speaker 1: really lifted up well over two percent this morning on 9 00:00:30,000 --> 00:00:32,760 Speaker 1: the back of some hopes of an end to the 10 00:00:32,840 --> 00:00:37,440 Speaker 1: war in Iran. We have seen gains for Rolls Royce 11 00:00:37,479 --> 00:00:39,200 Speaker 1: this morning. What is behind that move? 12 00:00:39,520 --> 00:00:43,000 Speaker 3: Yeah, Rolls Royces climbing this morning. They're up the most 13 00:00:43,080 --> 00:00:45,000 Speaker 3: in just over eight years, and the stock is the 14 00:00:45,040 --> 00:00:48,200 Speaker 3: best performer amongst its peers today. And really, as you mentioned, 15 00:00:48,200 --> 00:00:51,519 Speaker 3: that's coming amidst gains for equities more broadly, both the 16 00:00:51,560 --> 00:00:54,640 Speaker 3: footsy and the stock six hundred gaining today. But where 17 00:00:54,720 --> 00:00:58,720 Speaker 3: Rolls Royce is concerned, we have seen Wells Fargo initiate 18 00:00:58,760 --> 00:01:01,560 Speaker 3: coverage to day with an over weight waiting. But it 19 00:01:01,600 --> 00:01:04,000 Speaker 3: is also important to remember that Rolls Royce of course 20 00:01:04,080 --> 00:01:06,559 Speaker 3: does have interest in the world of defense and also 21 00:01:06,760 --> 00:01:11,200 Speaker 3: energy markets. It's famous for manufacturing engines and gas turbines 22 00:01:11,520 --> 00:01:15,520 Speaker 3: for military aircraft, also for producing equipment for oil and 23 00:01:15,560 --> 00:01:17,880 Speaker 3: gas pumping, so that does make the stock a little 24 00:01:17,880 --> 00:01:21,679 Speaker 3: bit more sensitive, especially given how closely investors are watching 25 00:01:21,920 --> 00:01:25,280 Speaker 3: defense and also energy firms amidst this ongoing conflict. We 26 00:01:25,319 --> 00:01:27,679 Speaker 3: can see that by the increased trading volume for Rolls 27 00:01:27,720 --> 00:01:30,880 Speaker 3: Royce today, but we are seeing other defense names as well, 28 00:01:31,000 --> 00:01:33,640 Speaker 3: like Babcock gaining today. So it just goes to show 29 00:01:33,640 --> 00:01:36,520 Speaker 3: that the Middle East conflict continues to be this enduring 30 00:01:36,640 --> 00:01:39,720 Speaker 3: theme for markets, and that's even despite the recent remarks 31 00:01:39,720 --> 00:01:42,880 Speaker 3: from President Trump suggesting that the war could be ending 32 00:01:42,920 --> 00:01:45,400 Speaker 3: in a matter of weeks. Tell us about airlines as 33 00:01:45,400 --> 00:01:46,800 Speaker 3: well as a sector. 34 00:01:46,920 --> 00:01:49,480 Speaker 1: Tea this morning, we've got lift Hans so for example, 35 00:01:49,520 --> 00:01:50,160 Speaker 1: moving higher. 36 00:01:50,520 --> 00:01:54,040 Speaker 3: Yeah, so airlines up as a sector today, positive morning 37 00:01:54,040 --> 00:01:56,960 Speaker 3: for Left Hands, its shares gaining as much as eight percent. 38 00:01:57,480 --> 00:02:00,320 Speaker 3: But in terms of the sector, we are seeing it 39 00:02:00,880 --> 00:02:04,919 Speaker 3: up more broadly. That's even as concerns are growing about 40 00:02:05,000 --> 00:02:07,280 Speaker 3: rising jet fuel costs, and this is also tied to 41 00:02:07,280 --> 00:02:10,239 Speaker 3: the Middle East crisis and its impact on energy markets. 42 00:02:10,600 --> 00:02:13,440 Speaker 3: That effective closure of the straight of WO moves has 43 00:02:13,960 --> 00:02:17,960 Speaker 3: stranded really a significant proportion of global jet fuel shipments 44 00:02:18,280 --> 00:02:21,880 Speaker 3: and it's led some refineries actually to cut production. So 45 00:02:21,960 --> 00:02:25,320 Speaker 3: there are reports this morning that luft Hansa specifically is 46 00:02:25,400 --> 00:02:29,720 Speaker 3: considering its sort of contingency plans should demand fall because 47 00:02:29,760 --> 00:02:32,280 Speaker 3: of this war, So they're looking at plans to ground 48 00:02:32,360 --> 00:02:35,560 Speaker 3: their planes. We should mention that their spokesperson has said 49 00:02:35,560 --> 00:02:39,560 Speaker 3: they're developing responses that differ in severity, so grounding their 50 00:02:39,600 --> 00:02:42,320 Speaker 3: fleet perhaps not the only option, but it does tell 51 00:02:42,360 --> 00:02:45,960 Speaker 3: you just how seriously they're taking this situation. Those plans 52 00:02:46,040 --> 00:02:48,800 Speaker 3: are not just being driven by the rising price of 53 00:02:48,919 --> 00:02:52,320 Speaker 3: jet fuel, but there's also worries about how difficult it 54 00:02:52,440 --> 00:02:55,560 Speaker 3: might be to obtain it in the coming months. So 55 00:02:55,639 --> 00:02:58,840 Speaker 3: this latest update perhaps a little departure from luft Hansa's 56 00:02:58,840 --> 00:03:02,760 Speaker 3: previous response to this. Earlier they were seeing this as 57 00:03:02,760 --> 00:03:05,760 Speaker 3: a sort of short term shift, but perhaps this might 58 00:03:05,800 --> 00:03:09,160 Speaker 3: be evidence that they are preparing for more long term impact. 59 00:03:09,200 --> 00:03:11,560 Speaker 3: So definitely a sector to watch going forward. 60 00:03:12,160 --> 00:03:16,959 Speaker 1: Yeah, there's also been a big move for housebuilder Berkley. 61 00:03:17,040 --> 00:03:19,520 Speaker 1: I mean they were badly affected the housebuilders in the 62 00:03:19,600 --> 00:03:21,040 Speaker 1: UK last month. 63 00:03:21,560 --> 00:03:25,120 Speaker 3: Why, Yeah, a duratic tumble for Barkley this morning. That's 64 00:03:25,120 --> 00:03:27,960 Speaker 3: certainly how our reporters are describing it. On the terminal 65 00:03:27,960 --> 00:03:30,720 Speaker 3: shares of down the most in almost ten years, as 66 00:03:30,760 --> 00:03:32,919 Speaker 3: much as eighteen percent to day. But really, Caroline, the 67 00:03:32,960 --> 00:03:37,560 Speaker 3: trigger here is their announcement of smaller than anticipated earnings 68 00:03:37,560 --> 00:03:40,800 Speaker 3: in the medium term, so they are attributing this to 69 00:03:41,200 --> 00:03:44,880 Speaker 3: reduce chances of interest rate cuts. Given the Iran War 70 00:03:44,960 --> 00:03:49,160 Speaker 3: its rekindled fears of inflation and increasing mortgage costs in 71 00:03:49,200 --> 00:03:51,800 Speaker 3: the UK. But just to give you a scale of things, 72 00:03:52,000 --> 00:03:55,160 Speaker 3: their revised strategy update which came out today, it says 73 00:03:55,280 --> 00:03:58,440 Speaker 3: they're expecting to deliver more than one point four billion 74 00:03:58,480 --> 00:04:02,000 Speaker 3: in pre tax profit over the four years from twenty 75 00:04:02,040 --> 00:04:05,520 Speaker 3: twenty seven, but according to analysts, that's actually thirty three 76 00:04:05,600 --> 00:04:09,960 Speaker 3: percent lower than their previous estimates, and Barkley did publish 77 00:04:09,960 --> 00:04:12,480 Speaker 3: an outlook as recently as last month, so it's a 78 00:04:12,600 --> 00:04:16,280 Speaker 3: rapid decline in expectations here. Of course, the Middle East 79 00:04:16,360 --> 00:04:19,359 Speaker 3: conflict is one contributing factor, but it has been a 80 00:04:19,400 --> 00:04:23,520 Speaker 3: tougher time for UK housebuilders as a sector. It's they're 81 00:04:23,520 --> 00:04:27,800 Speaker 3: face to increase taxation and regulation, but investors certainly not 82 00:04:27,880 --> 00:04:29,440 Speaker 3: reacting well to this latest. 83 00:04:29,240 --> 00:04:34,440 Speaker 2: Nutlow the stock mover's report from Bloomberg Radio. Check back 84 00:04:34,480 --> 00:04:36,719 Speaker 2: with us throughout the day for the latest roundup of 85 00:04:36,760 --> 00:04:40,080 Speaker 2: companies making news on Wall Street and for the latest 86 00:04:40,080 --> 00:04:44,280 Speaker 2: market moving headlines. Listen to Bloomberg Radio Live, catch us 87 00:04:44,320 --> 00:04:48,039 Speaker 2: on YouTube, Bloomberg dot com, and on Applecarplay and Android 88 00:04:48,080 --> 00:04:50,080 Speaker 2: Auto with the Bloomberg Business app.