Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's have a look at some of the stocks
Speaker 3: on the move today here in Europe. I'm Caroline Hepga
Speaker 3: and I'm joined by Binberg reporter Chloe Malay. Good morning, Chloe,
Speaker 3: good morning. So we are thinking about a significant pairing
Speaker 3: in the oil price on perhaps optimism around a resolution
Speaker 3: of the US's war in Iran. Let's start by thinking
Speaker 3: about Shell. How our investors reacting to the Iran war headlines.
Speaker 4: Yeah, well, markets tend to react very strongly to what
Speaker 4: Trump says, and so when Trump says that warren around
Speaker 4: may soon come to an end, we get oil prices falling,
Speaker 4: as you said, and therefore Oil.
Speaker 1: Company is very much in the red.
Speaker 4: So all of the major names within oil and guests
Speaker 4: are definitely weaker this morning. So Shell, BP, any Repsol,
Speaker 4: you name it, all of those natos names are definitely
Speaker 4: struggling a little bit. And those companies that of course
Speaker 4: really benefited from the disruption in global energy markets over
Speaker 4: the last month or so. But now that Trump told
Speaker 4: reporters in the US that the US could.
Speaker 1: Leave around within two to three weeks.
Speaker 4: We're seeing that sort of reversal in sentiment with those
Speaker 4: oil and gas and majors. And this is, of course,
Speaker 4: despite the fact that Trump has given some contradicting statements
Speaker 4: about around recently, so you could very much go back
Speaker 4: on his word, despite the fact that the strait of
Speaker 4: horror moves is still largely closed. So the reality on
Speaker 4: the ground and then how the markets are reacting maybe
Speaker 4: a little bit different with the snock moves going forward,
Speaker 4: are really going to depend on what Trump says this
Speaker 4: evening about around when he addresses the nation.
Speaker 1: So for now, though, it's a day in the red
Speaker 1: for oil.
Speaker 3: Yeah, in terms of airlines, how is the situation because
Speaker 3: we know that jet fuel prices are going up and
Speaker 3: that there's a scarcity, how's the situation affecting love tant.
Speaker 4: Yeah, so airlines are up this morning for the same
Speaker 4: reason that oil is down, which is this optimism of
Speaker 4: course about.
Speaker 1: The conflict potentially ending soon.
Speaker 4: Those companies, as you mentioned, have really struggled when the
Speaker 4: war broke out because of those higher jet fuel prices
Speaker 4: and also because there had been so many flight cancelations,
Speaker 4: in flight disruptions within those Middle Eastern herbs.
Speaker 1: But now that war might be ending. With seeing all
Speaker 1: of those names moving.
Speaker 4: Higher, Luftanza, iad Ryanair, Twoy, all of those airlines are
Speaker 4: in the green this morning because this potential enter the war,
Speaker 4: it comes as a relief and it might mean that
Speaker 4: some drastic measures won't need to be implemented. Softanza was
Speaker 4: just preparing crisis plans to ground some planes in case
Speaker 4: demand dropped even further because of the Middle East conflict
Speaker 4: and because of those rising fuel prices and that scarcity
Speaker 4: in fuel. So you know, Europe is the main import
Speaker 4: of jet fuel from the Persian Gulf and the supplies
Speaker 4: from that region account for about half of the ease
Speaker 4: and the UK's imports of jet fuel. So the conflict
Speaker 4: getting resolved would be a major boost and a major
Speaker 4: relief for those companies. And so this explains that some
Speaker 4: of that optimism in the shares this morning.
Speaker 3: The event will perhaps weirdly also had to read across
Speaker 3: into home building and those stocks in the UK. So
Speaker 3: we should also think about Berkley.
Speaker 4: Yeah, so the house builder, Yeah, the London house builder
Speaker 4: said this morning that it would stop buying new land
Speaker 4: and instead really refocus only on its existing landholdings, and
Speaker 4: that is because of the text and regulatory burden on
Speaker 4: residential development made it so that it doesn't really make
Speaker 4: sense financially in terms of rate of return to purchase
Speaker 4: new land. So it's a very cautious outlook. And some
Speaker 4: of it has to do about the geopolitical attentions and
Speaker 4: that is something that Berkeley has mentioned before, and so
Speaker 4: this really led shares to tumble this morning, and it
Speaker 4: really doesn't bode well for the rest of that house
Speaker 4: building a sector. You know, we've seen the UK mortgage
Speaker 4: costs rising again because of the conflict in the Middle
Speaker 4: East that is triggering those fresh and float fears and
Speaker 4: really impacting sentiment, and that's putting really additional pressure on
Speaker 4: those companies that have faced, as Berkeley mentioned, increasing taxation
Speaker 4: and regulation in recent years. So that's tough for Berkeley
Speaker 4: and also not so great news for Starmer's housing targets.
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