WEBVTT - BP's New CEO, Evolution's Big Downgrade, Currys Up

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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 look at some of the stocks on the move

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<v Speaker 3>today here in your f I'm Caroline Hepkar with Tom McKenzie.

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<v Speaker 3>We're joined by Bloomberg reporter Chloe Malay. I sent a

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<v Speaker 3>theme to today's stock Movers which is board games. BP and

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<v Speaker 3>housing a major shake up with a new CEO. How

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<v Speaker 3>are traders taking it? Well?

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<v Speaker 1>Not that well, So the shares did go up this

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<v Speaker 1>morning and then paed back some of those games. So

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<v Speaker 1>BP has appointed a CEO who comes with two first releases.

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<v Speaker 1>She's the first female CEO of a big oil company

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<v Speaker 1>and also the first time that BP has appointed an

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<v Speaker 1>outsider as CEO. So Meg O'Neil joins from Australian energy

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<v Speaker 1>company Woodside, and she has now a really big task

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<v Speaker 1>out of her, which is reviving the fortunes of BP

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<v Speaker 1>after quite a few years of under performance and lagging

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<v Speaker 1>behind its rivals. She also has to deliver on a

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<v Speaker 1>big strategic return to oil and gas and away from

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<v Speaker 1>the bet on renewables that BP had made and that

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<v Speaker 1>did not pay off. So some analysts had actually expected

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<v Speaker 1>the appointment to be received quite well by the markets

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<v Speaker 1>and have been saying that there was and there was

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<v Speaker 1>appetite for a more aggressive approach, and that the track

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<v Speaker 1>record that O'Neill had at Woodside of really aggressive moves

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<v Speaker 1>and a really strong execution that actually positioned.

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<v Speaker 3>Her quite well.

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<v Speaker 1>She's also someone who has had faith in fossil fuels

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<v Speaker 1>forever and a really particular belief in natural gas and

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<v Speaker 1>liquefied natural gas. So that appointment really symbolizes that completely

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<v Speaker 1>reverse all away from green energy and that commitment from BP.

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<v Speaker 1>But despite that kind of strategic alignment, the Chez did

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<v Speaker 1>go down. So perhaps it's because of how sudden of

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<v Speaker 1>a management shakeup we've got from BP.

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<v Speaker 3>What's happening with the so from oil to the gaming space,

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<v Speaker 3>that's quite the pivot.

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<v Speaker 1>What's happening with the gaming company evolution? Meanwhile, Chloe, well,

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<v Speaker 1>it's a company that does have a great twenty twenty

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<v Speaker 1>six ahead of it, according to to Barclays. So it

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<v Speaker 1>was double downgraded all the way from overweight to underweight

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<v Speaker 1>rating by Barclay's analysts because of continued pressure on the

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<v Speaker 1>earnings for Evolutions, So they said that a recovery in

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<v Speaker 1>Asia would take longer than expect, would be tougher than expected,

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<v Speaker 1>and that is after that region was already a big

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<v Speaker 1>drag on growth this year and a lot of that

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<v Speaker 1>had to do with a lot of cyber attacks on

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<v Speaker 1>its live casino streams in Asia, so that had really

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<v Speaker 1>held back the earnings for Evolution. There's also underperformance in

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<v Speaker 1>North America, so all around it looks like for Evolution

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<v Speaker 1>it's quite a difficult market for gambling companies. There's also

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<v Speaker 1>always the threat of regulatory risks that has to be

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<v Speaker 1>taken into account. And just a few days ago, just

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<v Speaker 1>last week, it was also downgraded by City Analysts this

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<v Speaker 1>time and the analyst saying that there was a real

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<v Speaker 1>lack of visibility around the earnings and that there was

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<v Speaker 1>no clear solution yet on this issue of cyber attacks

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<v Speaker 1>in Asia. So right now it doesn't look too good

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<v Speaker 1>for Evolution, and it has about seven cells on the

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<v Speaker 1>stocks and just four buys, so it doesn't seem to

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<v Speaker 1>be much of an analyst Darling, I don't think.

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<v Speaker 3>Okay, So that on Evolution and the electronics retailer Curries

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<v Speaker 3>is the last stock we're looking at. What sparked your

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<v Speaker 3>interest there.

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<v Speaker 1>Well, it was the shares rising massively, so therese about

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<v Speaker 1>fifteen percent this morning because of very good earnings for Curries,

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<v Speaker 1>and the region that was really driving there is actually

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<v Speaker 1>the Nordics, so the profit beat was driven primarily by

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<v Speaker 1>that region, and the UK, which is the other big market,

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<v Speaker 1>is actually a little bit softer at the margin there

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<v Speaker 1>for UK and Ireland did actually get worse because of

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<v Speaker 1>higher staffing costs, so of course we had wage inflation

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<v Speaker 1>and then those changes to National insurance and there that's

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<v Speaker 1>really weighed a little bit on that margin for that

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<v Speaker 1>UK business. So let's see if Curries is kind of

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<v Speaker 1>able to mitigate those challenges in the UK and continue

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<v Speaker 1>that momentum in the Nordics, if it wants to maintain

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<v Speaker 1>what's been really good share price performance lately. We're up

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<v Speaker 1>about forty five percent you today, so let's see if

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<v Speaker 1>it continues.

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