WEBVTT - Ryanair Rises, BP Gains, Lottomatica Drops 

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<v Speaker 1>Bloomberg Audio Studios. Podcasts. Radio. News. The Stock Movers Report.

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<v Speaker 1>Your roundup of companies making moves in the stock market.

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<v Speaker 1>Harnessing the power of Bloomberg data.

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<v Speaker 2>Let's take a look at some stocks on the move

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<v Speaker 2>today in Europe. I'm Stephen Carroll and I'm joined by

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<v Speaker 2>Bloomberg's breaking news editor Louise Moon.

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<v Speaker 1>Louise, good morning.

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<v Speaker 2>Let's start with Ryanair moving to try and limit the

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<v Speaker 2>impact of higher oil prices.

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<v Speaker 1>Indeed, yes.

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<v Speaker 3>They've trimmed their full-year traffic goals. So, essentially, passenger numbers. So,

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<v Speaker 3>they've trimmed that by 2 million from 216 million to

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<v Speaker 3>214 million passengers for the full year. As you say,

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<v Speaker 3>that's to try and essentially limit their exposure to these

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<v Speaker 3>rising oil prices this winter. Aside from that, they also

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<v Speaker 3>said that traffic from November to March will be flat year-on-year.

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<v Speaker 3>And they also said if these higher oil prices continue

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<v Speaker 3>into 2027, they expect short haul airfares in Europe, so

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<v Speaker 3>not just themselves, but all of Europe to increase materially.

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<v Speaker 3>which they expect to put some pressure on rivals, is

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<v Speaker 3>what they said. So, kind of a host of negative

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<v Speaker 3>news and reactions, mostly to these rising oil prices, obviously,

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<v Speaker 3>all on the back of the Middle East. Having said that,

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<v Speaker 3>they do say that they're well-placed to be profitable this year,

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<v Speaker 3>but they expect those earnings to be below last year's

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<v Speaker 3>profit after tax. So, shares dipping on the back of this. Obviously,

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<v Speaker 3>not entirely unexpected, given everything that's going on. But it's

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<v Speaker 3>an indication of how much it's still continuing and will

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<v Speaker 3>likely continue going forward.

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<v Speaker 1>Yeah.

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<v Speaker 2>And really interesting to get a read from a company

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<v Speaker 2>as big as Ryanair in terms of their reliance on

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<v Speaker 2>energy prices as to how they're actually reacting to the

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<v Speaker 2>movements that we're seeing on markets too. So, that's on Ryanair.

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<v Speaker 2>We're going to stay tangentially with the energy sector. The

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<v Speaker 2>next story is we're going to BP and they're announcing

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<v Speaker 2>a new chair.

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<v Speaker 1>Yes.

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<v Speaker 3>Appointed Ian Tyler as their chair permanently. He's been interim

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<v Speaker 3>over the summer. And he's had a seat on the

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<v Speaker 3>board since last year as well. In terms of his background,

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<v Speaker 3>he's the former chief of Balfour Beatty here in the UK.

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<v Speaker 3>He worked there for over a decade in various positions.

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<v Speaker 3>And he's currently also chair of Grafton, the building supplier company. So,

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<v Speaker 3>he's been appointed permanently. Amanda Blunk, the chief of Aviva,

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<v Speaker 3>she led that search and she now plans to step

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<v Speaker 3>down from that board. So, that's the main news this morning.

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<v Speaker 3>The kind of Interesting bit, really, I guess, is the context.

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<v Speaker 3>It all comes after a lot of boardroom drama. So,

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<v Speaker 3>BP unexpectedly fired their previous chair in May after just

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<v Speaker 3>eight months. He was brought in to help turn the

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<v Speaker 3>company around. This is all under pressure. They've been underperforming

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<v Speaker 3>for years under pressure from activist investor Elliot. So, he

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<v Speaker 3>said he's let go of that explanation. BCP had other reasons. So,

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<v Speaker 3>a whole lot of boardroom drama. They'll be hoping that

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<v Speaker 3>this presumably will bring some stability and help turn themselves

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<v Speaker 3>around going forward. So, shares rising, not hugely, but just

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<v Speaker 3>over about 1%, 1.5%.

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<v Speaker 1>Yeah, indeed.

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<v Speaker 2>And look, it's interesting to think about BP shares because

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<v Speaker 2>they're flat at the moment in trading. But, of course,

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<v Speaker 2>have been boosted so dramatically by the rise in oil

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<v Speaker 2>prices this year, up by 25% year-to-date, despite all of

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<v Speaker 2>that changes that we've seen in the boardroom, as you described, Louise.

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<v Speaker 2>We're going to go to Italy next for your next talk.

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<v Speaker 2>Some big moves from Lottomatica, the Italian gaming company.

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<v Speaker 3>Yeah.

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<v Speaker 1>So, their shares.

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<v Speaker 3>Fell about 6.5% in Italy. This is after some deal news.

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<v Speaker 3>They've agreed to buy a Spanish rival in all-share deal. So,

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<v Speaker 3>that's Sir Enterprises in Spain. And their shares rose about 15%

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<v Speaker 3>on the back of that news. So, the deal is

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<v Speaker 3>valued at about € 2.

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<v Speaker 1>8 billion.

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<v Speaker 3>And that price is about a 21% premium compared to

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<v Speaker 3>Circe's previous close. It's expected to become effective second quarter

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<v Speaker 3>of next year. But it's a big deal in the space.

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<v Speaker 3>It will create the second largest listed gaming operator. So,

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<v Speaker 3>a huge deal there, as I say, € 2. 8 billion. And

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<v Speaker 3>shares moving in rather opposite directions for both parties.

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