WEBVTT - BP Writedowns, Maersk Cut, Vistry 'Subdued'

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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>Look at some of the stocks on the move today

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<v Speaker 3>here in Europe. I'm Caroline Hepkin with Lizzie Burden and

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<v Speaker 3>were joined by Bloomberg reporter clomer Ley. Good morning, BP,

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<v Speaker 3>continuing to show that green isn't the new black. Tell

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<v Speaker 3>us about the right downs.

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<v Speaker 1>Yeah, absolutely so. BP expects an impairment charge of as

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<v Speaker 1>much as five billion dollars for the fourth quarter, and

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<v Speaker 1>those charges are mostly related to its gas and low

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<v Speaker 1>carbon energy business, and it's not really like it's the

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<v Speaker 1>only segment that's not doing great. BP also said this

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<v Speaker 1>morning that oil trading results will be weaker, and that

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<v Speaker 1>is the second consecutive quarter for which there will be

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<v Speaker 1>weaker and also said that production will be flat, so

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<v Speaker 1>across the board, not really a great update from VP,

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<v Speaker 1>and we saw the shares moving a little lower as

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<v Speaker 1>a result of that this morning. It comes at quite

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<v Speaker 1>an interesting time for the company, given that has just

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<v Speaker 1>replaced its CEO and it's still in the middle of

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<v Speaker 1>this really big turnaround where it wants to move away

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<v Speaker 1>from low carbon and renewables and back into oil and gas,

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<v Speaker 1>and it is currently divesting some assets with that strategy

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<v Speaker 1>in mind. But then the timing of that itself is

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<v Speaker 1>not necessarily ideal because it's refocusing on oil and gas

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<v Speaker 1>at a time when oil prices are lower, and obviously

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<v Speaker 1>that might mean that it will have to squeeze buybacks.

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<v Speaker 1>So the next update is going to come in the

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<v Speaker 1>form of an earnings report next month, but this update

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<v Speaker 1>that we have today doesn't boat super well for that,

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<v Speaker 1>and so investors will be watching for what that means

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<v Speaker 1>for their buybacks. Really.

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<v Speaker 2>Also, Goldmun thinks freight's going to get a fright tell

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<v Speaker 2>us more.

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<v Speaker 1>Yeah, there's a new note today on the shipping and

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<v Speaker 1>a logistics sector from Goldman and Mask in particular is

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<v Speaker 1>one of the least favored and it was downgraded to

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<v Speaker 1>cell rating, which sent the charies lower today. So the

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<v Speaker 1>endlyst said that there's going to be a deterioration in

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<v Speaker 1>global trade with of course rising trade barriers, which will

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<v Speaker 1>really weigh on that industry in twenty twenty six, just

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<v Speaker 1>like it did in twenty twenty five. And then also

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<v Speaker 1>the Red Sea route it looks like it has the

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<v Speaker 1>potential for reopening, and Musk just confirmed yesterday that they

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<v Speaker 1>had made a second successful passage through the Red Sea

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<v Speaker 1>after a couple of years of ships avoiding that area,

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<v Speaker 1>of course, and the reopening of that route means that

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<v Speaker 1>freight rates might actually go down, and that means lower

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<v Speaker 1>earnings for those big shipping companies, and so according to analysts,

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<v Speaker 1>Mask faces declining earnings, declining free cash flow, and so

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<v Speaker 1>that doesn't bode super well for the rest of the sector.

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<v Speaker 1>They are named a little bit better position and DSB

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<v Speaker 1>in particular is a topic, according to Goldman.

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<v Speaker 3>Interesting, Okay, can you be cautiously optimistic after your annual

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<v Speaker 3>sales four by nine percent? This is a question related

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<v Speaker 3>to Vista.

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<v Speaker 1>Yeah, so the Vistory, the UK home builder, and the

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<v Speaker 1>outlook today that they shared was cautiously optimistic. But then

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<v Speaker 1>when we look at the numbers, as you said, that

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<v Speaker 1>it's sold nine percent, a fewer homes in twenty twenty

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<v Speaker 1>five because of that budget uncertainty that was really weighing

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<v Speaker 1>on the sector towards the second half of twenty twenty five.

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<v Speaker 1>And Vistory is also specialized in the more kind of

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<v Speaker 1>affordable end of the market, so that's not a very

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<v Speaker 1>reassuring either in that way, and so we are seeing

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<v Speaker 1>that reflected in the shest today. The last time I checked,

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<v Speaker 1>we were down almost eight percent, so really taking a

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<v Speaker 1>beating this morning on the back of that. And it

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<v Speaker 1>doesn't it means that probably it will be quite tough

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<v Speaker 1>in twenty twenty six, but the vistory is cautiously optimistic

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<v Speaker 1>and is saying that this is because interest rates will

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<v Speaker 1>be probably going lower this year, so that will help

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<v Speaker 1>the market, but then we still have the issue of

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<v Speaker 1>regulatory hurdles, UK tax changes. All of that at the

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<v Speaker 1>uncertainty will continue probably to weigh on the sector and

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<v Speaker 1>will be seeing what other home builders are saying when

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<v Speaker 1>they report over the next few weeks.

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