1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,640 --> 00:00:18,279 Speaker 3: Well, let's take a look at some stocks on the 5 00:00:18,320 --> 00:00:20,759 Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined 6 00:00:20,800 --> 00:00:24,160 Speaker 3: by Bloomberg's Breaking News editor Louise men and Louise good morning. 7 00:00:24,280 --> 00:00:26,279 Speaker 3: Let's start with one of the big movers this morning. 8 00:00:26,360 --> 00:00:29,840 Speaker 3: Air France shares currently up ten percent in Paris. They've 9 00:00:29,840 --> 00:00:32,200 Speaker 3: been a little higher earlier in the session. What's driving 10 00:00:32,240 --> 00:00:33,040 Speaker 3: those shares higher? 11 00:00:33,720 --> 00:00:35,880 Speaker 4: Yeah, exactly, they were up as much as fourteen percent 12 00:00:35,920 --> 00:00:38,680 Speaker 4: this morning, so and then you know, looking back, that's 13 00:00:38,920 --> 00:00:42,239 Speaker 4: taking their twelve month gains to over fifty percent, so 14 00:00:42,640 --> 00:00:44,840 Speaker 4: really giving a big boost this morning. 15 00:00:44,920 --> 00:00:46,720 Speaker 1: That's after their fourth quarter earnings. 16 00:00:46,720 --> 00:00:49,239 Speaker 4: They came in much better than expected, so for example, 17 00:00:49,640 --> 00:00:53,120 Speaker 4: annual operating profit that exceeded two billion euros for the 18 00:00:53,159 --> 00:00:55,520 Speaker 4: first time, so all quite positive. 19 00:00:56,400 --> 00:00:57,800 Speaker 1: Their commentary was quite interesting. 20 00:00:57,840 --> 00:01:02,040 Speaker 4: They're very upbeat essentially about transit plantic travel, so they 21 00:01:02,160 --> 00:01:05,640 Speaker 4: expect that to continue. They're saying there's a lot of 22 00:01:06,160 --> 00:01:09,959 Speaker 4: premium demand, that's their bright spot. Expecting capacity to rise 23 00:01:10,080 --> 00:01:14,039 Speaker 4: essentially on the back of that. Going forward, their budget 24 00:01:14,080 --> 00:01:17,880 Speaker 4: side does slightly still remain under pressure, you know, with 25 00:01:17,959 --> 00:01:20,600 Speaker 4: wider kind of you know, the cost of living concerns 26 00:01:20,800 --> 00:01:26,240 Speaker 4: particularly impacting their budget section. But premium is a really 27 00:01:26,240 --> 00:01:30,959 Speaker 4: bright spot, and that transatlantic premium in particular, so good 28 00:01:31,000 --> 00:01:34,880 Speaker 4: news for them, particularly after in November they had said 29 00:01:34,880 --> 00:01:37,520 Speaker 4: that they were under a lot of pressure to review 30 00:01:38,040 --> 00:01:40,959 Speaker 4: the business model of KLEM because of a host of issues, 31 00:01:41,040 --> 00:01:44,399 Speaker 4: you know, partly on airport charges, inflation and a few 32 00:01:44,440 --> 00:01:48,360 Speaker 4: other things as well. So this set of results today 33 00:01:48,400 --> 00:01:51,520 Speaker 4: will well and is providing some reassurance, as you can 34 00:01:51,520 --> 00:01:54,120 Speaker 4: see in their share price, and they stuck as well 35 00:01:54,160 --> 00:01:56,680 Speaker 4: to their medium term guidance, so a lot of positive 36 00:01:56,800 --> 00:01:57,640 Speaker 4: indicators there. 37 00:01:58,000 --> 00:01:58,200 Speaker 1: Yeah. 38 00:01:58,240 --> 00:02:01,200 Speaker 3: Indeed, it was interesting the snow ice that hasrupted flights 39 00:02:01,360 --> 00:02:03,920 Speaker 3: at Amsterdam and Paris airports at the start of the 40 00:02:04,000 --> 00:02:06,400 Speaker 3: year going to cast them ninety million euros this quarter 41 00:02:06,440 --> 00:02:07,880 Speaker 3: as well, so perhaps a little bit of a fly 42 00:02:08,040 --> 00:02:10,920 Speaker 3: in the ointment of those results. In mayir France KLM, 43 00:02:11,000 --> 00:02:14,280 Speaker 3: let's stay with planes and turn to airbos next. Their 44 00:02:14,280 --> 00:02:17,720 Speaker 3: shares are down over seven percent this morning, and criticism 45 00:02:18,120 --> 00:02:21,080 Speaker 3: of the company that supplies them engines for their planes. 46 00:02:22,040 --> 00:02:24,440 Speaker 1: Yeah, not so much of a positive story for them. 47 00:02:24,520 --> 00:02:30,200 Speaker 4: So this is all, as you say, centraling around Pratt 48 00:02:30,240 --> 00:02:34,040 Speaker 4: and Whitney, so the provider of engines. So air Boss 49 00:02:34,240 --> 00:02:37,760 Speaker 4: have forecast their deliveries, their overall aircraft deliveries for twenty 50 00:02:37,760 --> 00:02:40,440 Speaker 4: twenty six to be about eight hundred and seventy planes, 51 00:02:40,720 --> 00:02:44,519 Speaker 4: so that's lower than previous estimates. They also say that 52 00:02:44,600 --> 00:02:48,360 Speaker 4: going into by the end of next year, monthly production 53 00:02:48,440 --> 00:02:51,400 Speaker 4: of their A three twenties might fall short of seventy 54 00:02:51,400 --> 00:02:55,760 Speaker 4: five units. And this is all because of supply chain constraints, 55 00:02:56,280 --> 00:02:59,760 Speaker 4: all centered around Pratt and Whitney. What they say, Pratt 56 00:02:59,760 --> 00:03:03,560 Speaker 4: and will any falling short of contractual obligations. So you know, 57 00:03:03,800 --> 00:03:07,480 Speaker 4: this has been an ongoing story within the industry of 58 00:03:08,440 --> 00:03:13,160 Speaker 4: issues for Pratt and Whitney's engines and therefore the knock 59 00:03:13,160 --> 00:03:16,360 Speaker 4: on effect that has through the supply chain and so 60 00:03:16,760 --> 00:03:20,160 Speaker 4: of us really kind of came out with some fighting 61 00:03:20,200 --> 00:03:22,960 Speaker 4: talk this morning. The CEO was saying, we won't give up, 62 00:03:22,960 --> 00:03:26,480 Speaker 4: We're not satisfied with the low level it's insufficient, and 63 00:03:26,560 --> 00:03:29,720 Speaker 4: kind of opening up that confrontation between them and one 64 00:03:29,760 --> 00:03:33,120 Speaker 4: of their main parts suppliers, Pratt and Whitney, and they 65 00:03:33,120 --> 00:03:35,920 Speaker 4: said that they expect that issue to continue going forward, 66 00:03:35,960 --> 00:03:38,240 Speaker 4: but as I say, they're trying to tackle that. So 67 00:03:38,720 --> 00:03:41,680 Speaker 4: shares fell in France on the back of this, down 68 00:03:42,320 --> 00:03:45,480 Speaker 4: about well almost six percent at one point this morning. 69 00:03:46,320 --> 00:03:50,160 Speaker 3: Let's go from planes then to minors. Rio Tinto shares 70 00:03:50,240 --> 00:03:53,120 Speaker 3: down currently about three point nine percent, and this is 71 00:03:53,160 --> 00:03:54,480 Speaker 3: after their earnings out this morning. 72 00:03:55,320 --> 00:03:57,960 Speaker 4: Yeah, they had the for your earnings, they came in 73 00:03:58,000 --> 00:04:02,520 Speaker 4: relatively flat. Essentially, they had seen improvements in their copper 74 00:04:02,560 --> 00:04:05,960 Speaker 4: and aluminium space, but that failed to offset a lot 75 00:04:05,960 --> 00:04:09,280 Speaker 4: of other issues. So that was US tariff's one off 76 00:04:09,280 --> 00:04:12,400 Speaker 4: restructuring costs. And then in particular it's got very high 77 00:04:12,400 --> 00:04:14,960 Speaker 4: exposure to the iron or market, which has been a 78 00:04:14,960 --> 00:04:18,440 Speaker 4: lot weaker, particularly down to China. So even though they 79 00:04:18,480 --> 00:04:23,560 Speaker 4: had some improvements in some areas, those other areas and 80 00:04:23,600 --> 00:04:26,400 Speaker 4: as I say, particularly iron ore, failed to offset that. 81 00:04:27,520 --> 00:04:31,040 Speaker 4: It kind of shows or demonstrates why there's been a 82 00:04:31,120 --> 00:04:34,240 Speaker 4: lot of talk in the industry about m and A 83 00:04:34,760 --> 00:04:37,400 Speaker 4: within mining, and in particular when it comes to Rio. 84 00:04:38,560 --> 00:04:41,560 Speaker 4: There had obviously been talks of a tie up with Glencore, 85 00:04:41,600 --> 00:04:46,920 Speaker 4: which was abandoned earlier this month. But these miners potentially 86 00:04:47,320 --> 00:04:50,520 Speaker 4: merging or in some way or form is with the 87 00:04:50,520 --> 00:04:53,480 Speaker 4: aim to increase exposure to battles like Copper that are 88 00:04:53,520 --> 00:04:57,720 Speaker 4: providing the boost at the moment. So Rio said that 89 00:04:57,800 --> 00:05:01,719 Speaker 4: going forward, they're going to focus on own growth and 90 00:05:01,960 --> 00:05:04,320 Speaker 4: you know, go at it alone and prove that they 91 00:05:04,320 --> 00:05:06,279 Speaker 4: can do that without Glen Call. 92 00:05:07,680 --> 00:05:09,800 Speaker 1: And yeah, I mean mine is leading. 93 00:05:09,520 --> 00:05:13,640 Speaker 4: The declients across across Europe today, partly on the back 94 00:05:13,680 --> 00:05:15,000 Speaker 4: of Rio's result. 95 00:05:15,760 --> 00:05:19,800 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 96 00:05:19,880 --> 00:05:22,440 Speaker 2: us throughout the day for the latest roundup of companies 97 00:05:22,520 --> 00:05:25,599 Speaker 2: making news on Wall Street and for the latest market 98 00:05:25,640 --> 00:05:30,080 Speaker 2: moving headlines. 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