1 00:00:02,520 --> 00:00:10,440 Speaker 1: Bloomberg Audio Studios podcasts, radio news, The Stock Movers podcast, 2 00:00:10,800 --> 00:00:14,040 Speaker 1: your roundup of companies making moves in the stock market, 3 00:00:14,240 --> 00:00:16,480 Speaker 1: harnessing the power of Bloomberg Data. 4 00:00:17,880 --> 00:00:19,600 Speaker 2: Let's look at some of these stocks on the move 5 00:00:19,680 --> 00:00:22,720 Speaker 2: today in Europe, and I'm joined by Bluebag's Markets Today 6 00:00:22,840 --> 00:00:26,200 Speaker 2: editor Sam On said, good morning Sam, BP coming clean 7 00:00:26,239 --> 00:00:29,200 Speaker 2: with shareholders. What have they been saying so. 8 00:00:29,880 --> 00:00:34,480 Speaker 3: Good morning, Caroline, BP a few months ago, major restructuring 9 00:00:34,479 --> 00:00:36,640 Speaker 3: of the way they do things, or yes, in some respects, 10 00:00:36,680 --> 00:00:38,199 Speaker 3: a sort of going back to the past, you know, 11 00:00:38,240 --> 00:00:39,519 Speaker 3: sort of getting rid of a lot of the green 12 00:00:39,600 --> 00:00:42,200 Speaker 3: energy business they've been investing in, going back to fossil fuels. 13 00:00:42,640 --> 00:00:44,920 Speaker 3: So what investors are looking for now is signs of 14 00:00:44,920 --> 00:00:46,600 Speaker 3: any kind of progress, But it's very early in that 15 00:00:46,640 --> 00:00:49,480 Speaker 3: and turning a ship like BP around is quite difficult. 16 00:00:49,840 --> 00:00:53,680 Speaker 3: The earnings this morning really not very good, not very positive, 17 00:00:53,720 --> 00:00:57,000 Speaker 3: and profit below expectations. Debt rose, the buyback has been 18 00:00:57,040 --> 00:01:00,120 Speaker 3: slowed right to the low end of BP's guidance. I 19 00:01:00,120 --> 00:01:01,959 Speaker 3: think that the really key thing to look for here 20 00:01:01,960 --> 00:01:04,120 Speaker 3: is to cash flow. So BP's cash flow was at 21 00:01:04,120 --> 00:01:06,280 Speaker 3: the lowest level since the fourth quarter of twenty twenty 22 00:01:06,680 --> 00:01:09,040 Speaker 3: and that's at that point oil process was still around 23 00:01:09,040 --> 00:01:11,280 Speaker 3: forty dollars a barrel. They're now, you know, just about 24 00:01:11,280 --> 00:01:14,080 Speaker 3: sixty dollars a barrel. So that, plus the fact that 25 00:01:14,160 --> 00:01:16,880 Speaker 3: last year their operational performance in the first quarter was 26 00:01:16,959 --> 00:01:19,800 Speaker 3: hit by a refinery outage, cash flow going down to 27 00:01:19,840 --> 00:01:22,760 Speaker 3: that level is not great because that indeed points to 28 00:01:22,920 --> 00:01:25,039 Speaker 3: potential that buybacks are gonna get hit even further in 29 00:01:25,040 --> 00:01:26,960 Speaker 3: the future, and that is a major part of the 30 00:01:27,000 --> 00:01:28,839 Speaker 3: oyal major investment case. 31 00:01:28,920 --> 00:01:30,840 Speaker 2: Okay, so there's still have a hill to climb then 32 00:01:30,920 --> 00:01:34,760 Speaker 2: for Murray A. Cancloss, the CEO of BP, although he 33 00:01:34,800 --> 00:01:37,640 Speaker 2: did talk about saying I'm confident that our plans to 34 00:01:37,640 --> 00:01:40,160 Speaker 2: strengthen the balance sheet et cetera, et cetera will grow 35 00:01:40,240 --> 00:01:43,480 Speaker 2: long term she helder value and strengthen the resilience of BP. 36 00:01:43,600 --> 00:01:45,880 Speaker 2: So tried to put a brave face on it. Then 37 00:01:46,400 --> 00:01:51,040 Speaker 2: in terms of investors seeming rather to be a little 38 00:01:51,080 --> 00:01:52,000 Speaker 2: bit tired. 39 00:01:51,880 --> 00:01:54,520 Speaker 3: Of Porsche, yeah, I think that's the way to put it. 40 00:01:54,560 --> 00:01:57,440 Speaker 3: I mean, so Porsche is getting hit hard on two sides, 41 00:01:57,480 --> 00:01:59,240 Speaker 3: like most auto makers are at the moment. You got 42 00:01:59,280 --> 00:02:01,280 Speaker 3: the tariff story, and then for them, they've invested very 43 00:02:01,280 --> 00:02:03,960 Speaker 3: heavily in EV's. There's a slow down there, there's higher 44 00:02:04,000 --> 00:02:06,680 Speaker 3: costs there, so that twin hit has been hitting them 45 00:02:06,720 --> 00:02:07,080 Speaker 3: quite hard. 46 00:02:07,680 --> 00:02:10,480 Speaker 2: Thought their price tag is so high that anybody's buying 47 00:02:10,520 --> 00:02:12,320 Speaker 2: one wouldn't be that bothered if it goes up a 48 00:02:12,360 --> 00:02:12,880 Speaker 2: little bit more. 49 00:02:12,960 --> 00:02:15,080 Speaker 3: That's a really interesting question there is that, you know, 50 00:02:15,080 --> 00:02:16,960 Speaker 3: with the tariffs coming through and with those extra costs 51 00:02:16,960 --> 00:02:19,720 Speaker 3: on evs, prices will probably have to rise. But there's 52 00:02:19,720 --> 00:02:21,840 Speaker 3: then becomes a delicate balance because you know, they're not 53 00:02:21,880 --> 00:02:24,320 Speaker 3: the only luxury car maker in town, and so there 54 00:02:24,320 --> 00:02:26,320 Speaker 3: are others who will maybe do that or play that 55 00:02:26,360 --> 00:02:28,320 Speaker 3: game a little bit better. It does appear at the 56 00:02:28,360 --> 00:02:30,880 Speaker 3: moment like Porsche is struggling to get that balance just 57 00:02:30,960 --> 00:02:34,560 Speaker 3: right and seeing slow down, particularly in China, as most 58 00:02:34,720 --> 00:02:37,360 Speaker 3: auto makers are at the moment, but the EV tariff 59 00:02:37,400 --> 00:02:38,840 Speaker 3: story hitting them from both sides. 60 00:02:39,320 --> 00:02:43,440 Speaker 2: So that's on Porsche, Ryan Mettal, We've seen such strength 61 00:02:43,520 --> 00:02:47,960 Speaker 2: and gains for the usually deeply unloved defense sector. But 62 00:02:48,040 --> 00:02:50,720 Speaker 2: Ryan Mettal continuing an extraordinary search. 63 00:02:51,080 --> 00:02:53,920 Speaker 3: Yeah, that's right. I think it's quite easy to forget 64 00:02:54,000 --> 00:02:55,919 Speaker 3: right that, you know, since the beginning of April, tariffs 65 00:02:55,960 --> 00:02:58,520 Speaker 3: have dominated absolutely everything but you only have to go 66 00:02:58,639 --> 00:03:02,360 Speaker 3: back a few weeks for a huge generational shift in 67 00:03:02,400 --> 00:03:04,839 Speaker 3: the way that German spending works, German fiscal rules change 68 00:03:04,840 --> 00:03:06,600 Speaker 3: in the way that defense spending is going to flow 69 00:03:06,600 --> 00:03:09,040 Speaker 3: through in Europe. And if you go back to that, 70 00:03:09,040 --> 00:03:11,400 Speaker 3: I think what you see with Ryan Mattow's report this morning, 71 00:03:11,440 --> 00:03:14,760 Speaker 3: so revenue up by seventy three percent, their order book 72 00:03:14,800 --> 00:03:18,160 Speaker 3: is at about sixty three billion euros. You know, almost everything 73 00:03:18,240 --> 00:03:21,000 Speaker 3: is just going through the roof for them. You're seeing 74 00:03:21,080 --> 00:03:23,760 Speaker 3: that generational shift that happened earlier in the year come 75 00:03:23,840 --> 00:03:27,040 Speaker 3: through in Ryan Metel's results. And indeed their shares rising 76 00:03:27,080 --> 00:03:28,840 Speaker 3: another sort of seven percent this year. And if you 77 00:03:28,880 --> 00:03:30,600 Speaker 3: look go go back sort of two or three years, 78 00:03:30,840 --> 00:03:33,480 Speaker 3: their shares have absolutely surged and sort of add out 79 00:03:33,520 --> 00:03:35,480 Speaker 3: before most defense stops across all of Europe. 80 00:03:36,640 --> 00:03:40,760 Speaker 1: The Stock Movers podcast from Bloomberg Radio. Check back with 81 00:03:40,880 --> 00:03:43,640 Speaker 1: us throughout the day for the latest roundup of companies 82 00:03:43,640 --> 00:03:46,720 Speaker 1: making news on Wall Street and for the latest market 83 00:03:46,720 --> 00:03:51,120 Speaker 1: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 84 00:03:51,160 --> 00:03:54,400 Speaker 1: Bloomberg dot com, and on Applecarplay and Android Auto with 85 00:03:54,480 --> 00:03:55,960 Speaker 1: the Bloomberg Business app.