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Speaker 1: Let's take a look at some of the stocks on
Speaker 1: the move today here in Europe. I'm Caroline Hepgar with
Speaker 1: Lizzie Burdener. We're joined by Bloomberg. We've brought a tia
Speaker 1: adebayo tiva. Good morning, So we're looking at European stocks
Speaker 1: really lifted up well over two percent this morning on
Speaker 1: the back of some hopes of an end to the
Speaker 1: war in Iran. We have seen gains for Rolls Royce
Speaker 1: this morning. What is behind that move?
Speaker 3: Yeah, Rolls Royces climbing this morning. They're up the most
Speaker 3: in just over eight years, and the stock is the
Speaker 3: best performer amongst its peers today. And really, as you mentioned,
Speaker 3: that's coming amidst gains for equities more broadly, both the
Speaker 3: footsy and the stock six hundred gaining today. But where
Speaker 3: Rolls Royce is concerned, we have seen Wells Fargo initiate
Speaker 3: coverage to day with an over weight waiting. But it
Speaker 3: is also important to remember that Rolls Royce of course
Speaker 3: does have interest in the world of defense and also
Speaker 3: energy markets. It's famous for manufacturing engines and gas turbines
Speaker 3: for military aircraft, also for producing equipment for oil and
Speaker 3: gas pumping, so that does make the stock a little
Speaker 3: bit more sensitive, especially given how closely investors are watching
Speaker 3: defense and also energy firms amidst this ongoing conflict. We
Speaker 3: can see that by the increased trading volume for Rolls
Speaker 3: Royce today, but we are seeing other defense names as well,
Speaker 3: like Babcock gaining today. So it just goes to show
Speaker 3: that the Middle East conflict continues to be this enduring
Speaker 3: theme for markets, and that's even despite the recent remarks
Speaker 3: from President Trump suggesting that the war could be ending
Speaker 3: in a matter of weeks. Tell us about airlines as
Speaker 3: well as a sector.
Speaker 1: Tea this morning, we've got lift Hans so for example,
Speaker 1: moving higher.
Speaker 3: Yeah, so airlines up as a sector today, positive morning
Speaker 3: for Left Hands, its shares gaining as much as eight percent.
Speaker 3: But in terms of the sector, we are seeing it
Speaker 3: up more broadly. That's even as concerns are growing about
Speaker 3: rising jet fuel costs, and this is also tied to
Speaker 3: the Middle East crisis and its impact on energy markets.
Speaker 3: That effective closure of the straight of WO moves has
Speaker 3: stranded really a significant proportion of global jet fuel shipments
Speaker 3: and it's led some refineries actually to cut production. So
Speaker 3: there are reports this morning that luft Hansa specifically is
Speaker 3: considering its sort of contingency plans should demand fall because
Speaker 3: of this war, So they're looking at plans to ground
Speaker 3: their planes. We should mention that their spokesperson has said
Speaker 3: they're developing responses that differ in severity, so grounding their
Speaker 3: fleet perhaps not the only option, but it does tell
Speaker 3: you just how seriously they're taking this situation. Those plans
Speaker 3: are not just being driven by the rising price of
Speaker 3: jet fuel, but there's also worries about how difficult it
Speaker 3: might be to obtain it in the coming months. So
Speaker 3: this latest update perhaps a little departure from luft Hansa's
Speaker 3: previous response to this. Earlier they were seeing this as
Speaker 3: a sort of short term shift, but perhaps this might
Speaker 3: be evidence that they are preparing for more long term impact.
Speaker 3: So definitely a sector to watch going forward.
Speaker 1: Yeah, there's also been a big move for housebuilder Berkley.
Speaker 1: I mean they were badly affected the housebuilders in the
Speaker 1: UK last month.
Speaker 3: Why, Yeah, a duratic tumble for Barkley this morning. That's
Speaker 3: certainly how our reporters are describing it. On the terminal
Speaker 3: shares of down the most in almost ten years, as
Speaker 3: much as eighteen percent to day. But really, Caroline, the
Speaker 3: trigger here is their announcement of smaller than anticipated earnings
Speaker 3: in the medium term, so they are attributing this to
Speaker 3: reduce chances of interest rate cuts. Given the Iran War
Speaker 3: its rekindled fears of inflation and increasing mortgage costs in
Speaker 3: the UK. But just to give you a scale of things,
Speaker 3: their revised strategy update which came out today, it says
Speaker 3: they're expecting to deliver more than one point four billion
Speaker 3: in pre tax profit over the four years from twenty
Speaker 3: twenty seven, but according to analysts, that's actually thirty three
Speaker 3: percent lower than their previous estimates, and Barkley did publish
Speaker 3: an outlook as recently as last month, so it's a
Speaker 3: rapid decline in expectations here. Of course, the Middle East
Speaker 3: conflict is one contributing factor, but it has been a
Speaker 3: tougher time for UK housebuilders as a sector. It's they're
Speaker 3: face to increase taxation and regulation, but investors certainly not
Speaker 3: reacting well to this latest.
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