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: Look at some of the stocks on the move today
Speaker 3: here in Europe. I'm Caroline Hepkin with Lizzie Burden and
Speaker 3: were joined by Bloomberg reporter clomer Ley. Good morning, BP,
Speaker 3: continuing to show that green isn't the new black. Tell
Speaker 3: us about the right downs.
Speaker 1: Yeah, absolutely so. BP expects an impairment charge of as
Speaker 1: much as five billion dollars for the fourth quarter, and
Speaker 1: those charges are mostly related to its gas and low
Speaker 1: carbon energy business, and it's not really like it's the
Speaker 1: only segment that's not doing great. BP also said this
Speaker 1: morning that oil trading results will be weaker, and that
Speaker 1: is the second consecutive quarter for which there will be
Speaker 1: weaker and also said that production will be flat, so
Speaker 1: across the board, not really a great update from VP,
Speaker 1: and we saw the shares moving a little lower as
Speaker 1: a result of that this morning. It comes at quite
Speaker 1: an interesting time for the company, given that has just
Speaker 1: replaced its CEO and it's still in the middle of
Speaker 1: this really big turnaround where it wants to move away
Speaker 1: from low carbon and renewables and back into oil and gas,
Speaker 1: and it is currently divesting some assets with that strategy
Speaker 1: in mind. But then the timing of that itself is
Speaker 1: not necessarily ideal because it's refocusing on oil and gas
Speaker 1: at a time when oil prices are lower, and obviously
Speaker 1: that might mean that it will have to squeeze buybacks.
Speaker 1: So the next update is going to come in the
Speaker 1: form of an earnings report next month, but this update
Speaker 1: that we have today doesn't boat super well for that,
Speaker 1: and so investors will be watching for what that means
Speaker 1: for their buybacks. Really.
Speaker 2: Also, Goldmun thinks freight's going to get a fright tell
Speaker 2: us more.
Speaker 1: Yeah, there's a new note today on the shipping and
Speaker 1: a logistics sector from Goldman and Mask in particular is
Speaker 1: one of the least favored and it was downgraded to
Speaker 1: cell rating, which sent the charies lower today. So the
Speaker 1: endlyst said that there's going to be a deterioration in
Speaker 1: global trade with of course rising trade barriers, which will
Speaker 1: really weigh on that industry in twenty twenty six, just
Speaker 1: like it did in twenty twenty five. And then also
Speaker 1: the Red Sea route it looks like it has the
Speaker 1: potential for reopening, and Musk just confirmed yesterday that they
Speaker 1: had made a second successful passage through the Red Sea
Speaker 1: after a couple of years of ships avoiding that area,
Speaker 1: of course, and the reopening of that route means that
Speaker 1: freight rates might actually go down, and that means lower
Speaker 1: earnings for those big shipping companies, and so according to analysts,
Speaker 1: Mask faces declining earnings, declining free cash flow, and so
Speaker 1: that doesn't bode super well for the rest of the sector.
Speaker 1: They are named a little bit better position and DSB
Speaker 1: in particular is a topic, according to Goldman.
Speaker 3: Interesting, Okay, can you be cautiously optimistic after your annual
Speaker 3: sales four by nine percent? This is a question related
Speaker 3: to Vista.
Speaker 1: Yeah, so the Vistory, the UK home builder, and the
Speaker 1: outlook today that they shared was cautiously optimistic. But then
Speaker 1: when we look at the numbers, as you said, that
Speaker 1: it's sold nine percent, a fewer homes in twenty twenty
Speaker 1: five because of that budget uncertainty that was really weighing
Speaker 1: on the sector towards the second half of twenty twenty five.
Speaker 1: And Vistory is also specialized in the more kind of
Speaker 1: affordable end of the market, so that's not a very
Speaker 1: reassuring either in that way, and so we are seeing
Speaker 1: that reflected in the shest today. The last time I checked,
Speaker 1: we were down almost eight percent, so really taking a
Speaker 1: beating this morning on the back of that. And it
Speaker 1: doesn't it means that probably it will be quite tough
Speaker 1: in twenty twenty six, but the vistory is cautiously optimistic
Speaker 1: and is saying that this is because interest rates will
Speaker 1: be probably going lower this year, so that will help
Speaker 1: the market, but then we still have the issue of
Speaker 1: regulatory hurdles, UK tax changes. All of that at the
Speaker 1: uncertainty will continue probably to weigh on the sector and
Speaker 1: will be seeing what other home builders are saying when
Speaker 1: they report over the next few weeks.
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