WEBVTT - IAG's Outlook, Kingfisher Up, Ferrari's EV Launch

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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 3>Let's take a look at some of the stocks on

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<v Speaker 3>the move today in Europe. I'm Tiama Adabai with Caroline Habka,

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<v Speaker 3>and we're joined by Bloomberg's Breaking News editor Louise Moon.

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<v Speaker 3>Analysts are fueling moves in airline stocks this morning, taus,

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<v Speaker 3>Why Louise.

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<v Speaker 1>Yes, indeed. So there's been note from Morgan Stanley on

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<v Speaker 1>airline stocks, which is, as you say, impacting stock movements

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<v Speaker 1>this morning. So the main thing, the crucial thing is

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<v Speaker 1>it's saying complacency after sharp earnings cuts is offering opportunities

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<v Speaker 1>in the market. So it's downgraded Lufthansa and luft Hander's

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<v Speaker 1>stock is kind of tracking that falling this morning. Upgraded

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<v Speaker 1>air France, but its top pick is IAG, obviously the

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<v Speaker 1>owner of British Airways, so they're saying that things like

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<v Speaker 1>cost display and strong free cash flow sholder returns are

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<v Speaker 1>all reasons for IAG to be a top pick, and

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<v Speaker 1>this kind of echoes what unless have been saying. Anyway, saying,

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<v Speaker 1>so the kind of wider consensus is that IG's given

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<v Speaker 1>everything that's going on the Middle East, rising fuel costs

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<v Speaker 1>and everything that's come out of that conflict, the IEG

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<v Speaker 1>has been it is being seen as being in a

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<v Speaker 1>relatively strong position. They've got higher profitability and balance sheet

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<v Speaker 1>better positioned essentially to withstand all of these headwinds. So

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<v Speaker 1>if you look at the analyst ratings for IG, they've

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<v Speaker 1>got twenty seven buys, zero holds and just two cells

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<v Speaker 1>and their shares are higher, so also moving in line

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<v Speaker 1>with the others. On the back of that. Morgan Stanley note,

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<v Speaker 1>so one of the top prizes morning on the Foots

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<v Speaker 1>one hundred. So an interesting note there for Morgan Stanley

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<v Speaker 1>having quite impact on airline stocks today.

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<v Speaker 2>Okay interesting.

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<v Speaker 3>Meanwhile, Kingfisher, the DIY retailer seems to be reassuring investors.

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<v Speaker 1>Have they done that? Yes, So, shares up as much

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<v Speaker 1>as eight point three percent this morning, the top prizer

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<v Speaker 1>on the foot Sea hundred here in London, that's and

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<v Speaker 1>they briefly hit two month high within that, as you say,

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<v Speaker 1>reassuring update. They had their first quarter sales. Now interestingly,

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<v Speaker 1>sales actually fell and they blame a later spring coming

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<v Speaker 1>and which resulted in a in a weaker football essentially,

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<v Speaker 1>But the commentary is quite reassuring, is what Alice is saying.

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<v Speaker 1>So they're saying that they're resilient in the face of

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<v Speaker 1>kind of wider headwinds and they're on track to meet

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<v Speaker 1>their full year guidance, so holding up against a whole

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<v Speaker 1>host of challenges that we're seeing across the retail sector.

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<v Speaker 1>So you've got a weaker consumer, higher costs later spring,

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<v Speaker 1>as Kingfisher noted themselves, But Alice is saying that, yeah,

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<v Speaker 1>holding up reassuring after recent pressure on the stock screw

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<v Speaker 1>Fix one of their brands in particular performing very well,

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<v Speaker 1>so shares really rising this morning.

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<v Speaker 3>Okay, so perhaps a resurgence coming for Kingfisher. But finally, Louis,

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<v Speaker 3>everyone's talking about Ferrari this morning. It seems like the

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<v Speaker 3>business wants to go green, but it's stock price seems

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<v Speaker 3>to be going into the red.

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<v Speaker 2>It's going on there.

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<v Speaker 1>Yeah, So they've unveiled their first fully electric car. This

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<v Speaker 1>is the kind of the final step. They had a

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<v Speaker 1>three part reveal and Saunday evening presentation revealing the full

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<v Speaker 1>extent of it. So it's a five seater it costs

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<v Speaker 1>five hundred and fifty thousand euros. It's being seen as

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<v Speaker 1>a big test for Ferrari. It's a breakaway from their heritage.

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<v Speaker 1>You know, there's questions over how much demand they'll be,

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<v Speaker 1>the challenges of extending into battery when they're very much

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<v Speaker 1>used to combustion engines, So it's a tough challenge for them.

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<v Speaker 1>And it's a tough market. You've seen you know, rivals

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<v Speaker 1>like Lamborghini and port they've slowed their electrification plans citing

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<v Speaker 1>a lack of buying interest. So it's a tough market

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<v Speaker 1>to go into. And shares falling very heavily this morning,

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<v Speaker 1>so they fell over eight percent. Reviews essentially for this

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<v Speaker 1>are disappointing and saying they don't like the design, it's

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<v Speaker 1>too close to Tesla, and one saying, which I thought

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<v Speaker 1>is quite good quote, we are lost in translation with

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<v Speaker 1>Ferrari's new strategy. So a lot of questions over what's

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<v Speaker 1>going on, how how you know how successful this will

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<v Speaker 1>and so far the reception is not good.

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