WEBVTT - Shell Dips, Lufthansa Rises, Berkeley Tumbles 

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.400 --> 0:00:17.760
<v Speaker 3>Now, let's have a look at some of the stocks

0:00:17.760 --> 0:00:20.000
<v Speaker 3>on the move today here in Europe. I'm Caroline Hepga

0:00:20.280 --> 0:00:23.400
<v Speaker 3>and I'm joined by Binberg reporter Chloe Malay. Good morning, Chloe,

0:00:23.400 --> 0:00:27.639
<v Speaker 3>good morning. So we are thinking about a significant pairing

0:00:27.800 --> 0:00:31.240
<v Speaker 3>in the oil price on perhaps optimism around a resolution

0:00:31.520 --> 0:00:35.000
<v Speaker 3>of the US's war in Iran. Let's start by thinking

0:00:35.000 --> 0:00:39.600
<v Speaker 3>about Shell. How our investors reacting to the Iran war headlines.

0:00:39.840 --> 0:00:42.400
<v Speaker 4>Yeah, well, markets tend to react very strongly to what

0:00:42.440 --> 0:00:45.280
<v Speaker 4>Trump says, and so when Trump says that warren around

0:00:45.600 --> 0:00:48.280
<v Speaker 4>may soon come to an end, we get oil prices falling,

0:00:48.320 --> 0:00:50.240
<v Speaker 4>as you said, and therefore Oil.

0:00:49.960 --> 0:00:51.400
<v Speaker 1>Company is very much in the red.

0:00:51.479 --> 0:00:54.000
<v Speaker 4>So all of the major names within oil and guests

0:00:54.040 --> 0:00:58.279
<v Speaker 4>are definitely weaker this morning. So Shell, BP, any Repsol,

0:00:58.520 --> 0:01:01.040
<v Speaker 4>you name it, all of those natos names are definitely

0:01:01.440 --> 0:01:04.319
<v Speaker 4>struggling a little bit. And those companies that of course

0:01:04.319 --> 0:01:07.960
<v Speaker 4>really benefited from the disruption in global energy markets over

0:01:08.000 --> 0:01:11.480
<v Speaker 4>the last month or so. But now that Trump told

0:01:11.520 --> 0:01:14.240
<v Speaker 4>reporters in the US that the US could.

0:01:14.160 --> 0:01:15.680
<v Speaker 1>Leave around within two to three weeks.

0:01:15.680 --> 0:01:19.000
<v Speaker 4>We're seeing that sort of reversal in sentiment with those

0:01:19.080 --> 0:01:21.839
<v Speaker 4>oil and gas and majors. And this is, of course,

0:01:21.840 --> 0:01:25.120
<v Speaker 4>despite the fact that Trump has given some contradicting statements

0:01:25.120 --> 0:01:27.560
<v Speaker 4>about around recently, so you could very much go back

0:01:27.680 --> 0:01:29.400
<v Speaker 4>on his word, despite the fact that the strait of

0:01:29.440 --> 0:01:32.319
<v Speaker 4>horror moves is still largely closed. So the reality on

0:01:32.360 --> 0:01:35.680
<v Speaker 4>the ground and then how the markets are reacting maybe

0:01:36.200 --> 0:01:39.160
<v Speaker 4>a little bit different with the snock moves going forward,

0:01:39.160 --> 0:01:41.400
<v Speaker 4>are really going to depend on what Trump says this

0:01:41.560 --> 0:01:44.399
<v Speaker 4>evening about around when he addresses the nation.

0:01:44.640 --> 0:01:46.960
<v Speaker 1>So for now, though, it's a day in the red

0:01:46.959 --> 0:01:47.319
<v Speaker 1>for oil.

0:01:47.720 --> 0:01:52.400
<v Speaker 3>Yeah, in terms of airlines, how is the situation because

0:01:52.400 --> 0:01:55.280
<v Speaker 3>we know that jet fuel prices are going up and

0:01:55.320 --> 0:01:59.680
<v Speaker 3>that there's a scarcity, how's the situation affecting love tant.

0:02:00.240 --> 0:02:03.080
<v Speaker 4>Yeah, so airlines are up this morning for the same

0:02:03.080 --> 0:02:05.320
<v Speaker 4>reason that oil is down, which is this optimism of

0:02:05.360 --> 0:02:06.200
<v Speaker 4>course about.

0:02:06.240 --> 0:02:07.800
<v Speaker 1>The conflict potentially ending soon.

0:02:07.920 --> 0:02:10.480
<v Speaker 4>Those companies, as you mentioned, have really struggled when the

0:02:10.480 --> 0:02:13.680
<v Speaker 4>war broke out because of those higher jet fuel prices

0:02:13.880 --> 0:02:16.760
<v Speaker 4>and also because there had been so many flight cancelations,

0:02:16.760 --> 0:02:19.680
<v Speaker 4>in flight disruptions within those Middle Eastern herbs.

0:02:20.120 --> 0:02:22.320
<v Speaker 1>But now that war might be ending. With seeing all

0:02:22.360 --> 0:02:23.680
<v Speaker 1>of those names moving.

0:02:23.480 --> 0:02:27.680
<v Speaker 4>Higher, Luftanza, iad Ryanair, Twoy, all of those airlines are

0:02:27.720 --> 0:02:30.880
<v Speaker 4>in the green this morning because this potential enter the war,

0:02:31.080 --> 0:02:33.280
<v Speaker 4>it comes as a relief and it might mean that

0:02:33.400 --> 0:02:37.200
<v Speaker 4>some drastic measures won't need to be implemented. Softanza was

0:02:37.320 --> 0:02:40.640
<v Speaker 4>just preparing crisis plans to ground some planes in case

0:02:40.680 --> 0:02:43.959
<v Speaker 4>demand dropped even further because of the Middle East conflict

0:02:44.000 --> 0:02:47.040
<v Speaker 4>and because of those rising fuel prices and that scarcity

0:02:47.440 --> 0:02:50.160
<v Speaker 4>in fuel. So you know, Europe is the main import

0:02:50.160 --> 0:02:53.240
<v Speaker 4>of jet fuel from the Persian Gulf and the supplies

0:02:53.360 --> 0:02:56.160
<v Speaker 4>from that region account for about half of the ease

0:02:56.280 --> 0:02:59.680
<v Speaker 4>and the UK's imports of jet fuel. So the conflict

0:02:59.720 --> 0:03:02.639
<v Speaker 4>getting resolved would be a major boost and a major

0:03:02.680 --> 0:03:05.240
<v Speaker 4>relief for those companies. And so this explains that some

0:03:05.280 --> 0:03:07.320
<v Speaker 4>of that optimism in the shares this morning.

0:03:08.400 --> 0:03:11.880
<v Speaker 3>The event will perhaps weirdly also had to read across

0:03:11.919 --> 0:03:16.760
<v Speaker 3>into home building and those stocks in the UK. So

0:03:16.760 --> 0:03:18.560
<v Speaker 3>we should also think about Berkley.

0:03:18.760 --> 0:03:22.200
<v Speaker 4>Yeah, so the house builder, Yeah, the London house builder

0:03:22.240 --> 0:03:24.760
<v Speaker 4>said this morning that it would stop buying new land

0:03:24.800 --> 0:03:28.640
<v Speaker 4>and instead really refocus only on its existing landholdings, and

0:03:28.680 --> 0:03:31.800
<v Speaker 4>that is because of the text and regulatory burden on

0:03:31.960 --> 0:03:34.679
<v Speaker 4>residential development made it so that it doesn't really make

0:03:34.720 --> 0:03:37.920
<v Speaker 4>sense financially in terms of rate of return to purchase

0:03:38.000 --> 0:03:40.320
<v Speaker 4>new land. So it's a very cautious outlook. And some

0:03:40.360 --> 0:03:43.840
<v Speaker 4>of it has to do about the geopolitical attentions and

0:03:43.880 --> 0:03:46.600
<v Speaker 4>that is something that Berkeley has mentioned before, and so

0:03:46.680 --> 0:03:49.520
<v Speaker 4>this really led shares to tumble this morning, and it

0:03:49.560 --> 0:03:51.600
<v Speaker 4>really doesn't bode well for the rest of that house

0:03:51.600 --> 0:03:54.840
<v Speaker 4>building a sector. You know, we've seen the UK mortgage

0:03:54.880 --> 0:03:57.600
<v Speaker 4>costs rising again because of the conflict in the Middle

0:03:57.640 --> 0:04:00.760
<v Speaker 4>East that is triggering those fresh and float fears and

0:04:00.840 --> 0:04:04.360
<v Speaker 4>really impacting sentiment, and that's putting really additional pressure on

0:04:04.480 --> 0:04:08.800
<v Speaker 4>those companies that have faced, as Berkeley mentioned, increasing taxation

0:04:08.920 --> 0:04:12.680
<v Speaker 4>and regulation in recent years. So that's tough for Berkeley

0:04:12.680 --> 0:04:15.280
<v Speaker 4>and also not so great news for Starmer's housing targets.

0:04:16.360 --> 0:04:20.400
<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

0:04:20.480 --> 0:04:23.040
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:23.120 --> 0:04:26.200
<v Speaker 2>making news on Wall Street and for the latest market

0:04:26.240 --> 0:04:30.719
<v Speaker 2>moving headlines. Listen to Bloomberg Radio live. Catch us on YouTube,

0:04:30.800 --> 0:04:34.320
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:34.360 --> 0:04:35.839
<v Speaker 2>the Bloomberg Business app.