WEBVTT - Rolls-Royce Gains, Lufthansa Rises, Berkeley Tumbles 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some of the stocks on

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<v Speaker 1>the move today here in Europe. I'm Caroline Hepgar with

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<v Speaker 1>Lizzie Burdener. We're joined by Bloomberg. We've brought a tia

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<v Speaker 1>adebayo tiva. Good morning, So we're looking at European stocks

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<v Speaker 1>really lifted up well over two percent this morning on

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<v Speaker 1>the back of some hopes of an end to the

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<v Speaker 1>war in Iran. We have seen gains for Rolls Royce

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<v Speaker 1>this morning. What is behind that move?

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<v Speaker 3>Yeah, Rolls Royces climbing this morning. They're up the most

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<v Speaker 3>in just over eight years, and the stock is the

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<v Speaker 3>best performer amongst its peers today. And really, as you mentioned,

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<v Speaker 3>that's coming amidst gains for equities more broadly, both the

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<v Speaker 3>footsy and the stock six hundred gaining today. But where

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<v Speaker 3>Rolls Royce is concerned, we have seen Wells Fargo initiate

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<v Speaker 3>coverage to day with an over weight waiting. But it

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<v Speaker 3>is also important to remember that Rolls Royce of course

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<v Speaker 3>does have interest in the world of defense and also

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<v Speaker 3>energy markets. It's famous for manufacturing engines and gas turbines

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<v Speaker 3>for military aircraft, also for producing equipment for oil and

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<v Speaker 3>gas pumping, so that does make the stock a little

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<v Speaker 3>bit more sensitive, especially given how closely investors are watching

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<v Speaker 3>defense and also energy firms amidst this ongoing conflict. We

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<v Speaker 3>can see that by the increased trading volume for Rolls

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<v Speaker 3>Royce today, but we are seeing other defense names as well,

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<v Speaker 3>like Babcock gaining today. So it just goes to show

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<v Speaker 3>that the Middle East conflict continues to be this enduring

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<v Speaker 3>theme for markets, and that's even despite the recent remarks

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<v Speaker 3>from President Trump suggesting that the war could be ending

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<v Speaker 3>in a matter of weeks. Tell us about airlines as

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<v Speaker 3>well as a sector.

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<v Speaker 1>Tea this morning, we've got lift Hans so for example,

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<v Speaker 1>moving higher.

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<v Speaker 3>Yeah, so airlines up as a sector today, positive morning

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<v Speaker 3>for Left Hands, its shares gaining as much as eight percent.

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<v Speaker 3>But in terms of the sector, we are seeing it

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<v Speaker 3>up more broadly. That's even as concerns are growing about

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<v Speaker 3>rising jet fuel costs, and this is also tied to

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<v Speaker 3>the Middle East crisis and its impact on energy markets.

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<v Speaker 3>That effective closure of the straight of WO moves has

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<v Speaker 3>stranded really a significant proportion of global jet fuel shipments

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<v Speaker 3>and it's led some refineries actually to cut production. So

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<v Speaker 3>there are reports this morning that luft Hansa specifically is

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<v Speaker 3>considering its sort of contingency plans should demand fall because

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<v Speaker 3>of this war, So they're looking at plans to ground

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<v Speaker 3>their planes. We should mention that their spokesperson has said

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<v Speaker 3>they're developing responses that differ in severity, so grounding their

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<v Speaker 3>fleet perhaps not the only option, but it does tell

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<v Speaker 3>you just how seriously they're taking this situation. Those plans

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<v Speaker 3>are not just being driven by the rising price of

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<v Speaker 3>jet fuel, but there's also worries about how difficult it

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<v Speaker 3>might be to obtain it in the coming months. So

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<v Speaker 3>this latest update perhaps a little departure from luft Hansa's

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<v Speaker 3>previous response to this. Earlier they were seeing this as

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<v Speaker 3>a sort of short term shift, but perhaps this might

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<v Speaker 3>be evidence that they are preparing for more long term impact.

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<v Speaker 3>So definitely a sector to watch going forward.

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<v Speaker 1>Yeah, there's also been a big move for housebuilder Berkley.

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<v Speaker 1>I mean they were badly affected the housebuilders in the

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<v Speaker 1>UK last month.

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<v Speaker 3>Why, Yeah, a duratic tumble for Barkley this morning. That's

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<v Speaker 3>certainly how our reporters are describing it. On the terminal

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<v Speaker 3>shares of down the most in almost ten years, as

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<v Speaker 3>much as eighteen percent to day. But really, Caroline, the

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<v Speaker 3>trigger here is their announcement of smaller than anticipated earnings

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<v Speaker 3>in the medium term, so they are attributing this to

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<v Speaker 3>reduce chances of interest rate cuts. Given the Iran War

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<v Speaker 3>its rekindled fears of inflation and increasing mortgage costs in

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<v Speaker 3>the UK. But just to give you a scale of things,

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<v Speaker 3>their revised strategy update which came out today, it says

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<v Speaker 3>they're expecting to deliver more than one point four billion

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<v Speaker 3>in pre tax profit over the four years from twenty

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<v Speaker 3>twenty seven, but according to analysts, that's actually thirty three

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<v Speaker 3>percent lower than their previous estimates, and Barkley did publish

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<v Speaker 3>an outlook as recently as last month, so it's a

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<v Speaker 3>rapid decline in expectations here. Of course, the Middle East

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<v Speaker 3>conflict is one contributing factor, but it has been a

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<v Speaker 3>tougher time for UK housebuilders as a sector. It's they're

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<v Speaker 3>face to increase taxation and regulation, but investors certainly not

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<v Speaker 3>reacting well to this latest.

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