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: Let's take a look at some of the stocks on
Speaker 3: the move today here in Europe. I'm Caroline Hepka with
Speaker 3: Tom McKenzie, and we're joined Berburenberg reporter Cloim Lay. Let's
Speaker 3: start with BP, which has agreed to divest its stake
Speaker 3: in US shale assets. How's the market responding to that
Speaker 3: in what is going to be a big week for earnings.
Speaker 1: Yeah, absolutely, so, it seems that the market is responding
Speaker 1: quite positively to that decision to divers states from BP.
Speaker 1: It's obviously part of this wider plan for the oil
Speaker 1: major to shore up its balance sheet and to win
Speaker 1: back some investor confidence after years and years of underperformance.
Speaker 1: This is also the underperformance that put it in the
Speaker 1: line of sight of the activist investor earlier investment management,
Speaker 1: and that has pushed BP to kind of refocus on
Speaker 1: oil and guess in divest some of the other assets.
Speaker 1: The new chairman, Albert Manifold, said that the company has
Speaker 1: to act with urgency to cut costs, sell those assets
Speaker 1: and improve profitability. So it's pledged to divest twenty billion
Speaker 1: dollars of assets by the end of twenty twenty seven.
Speaker 1: So far, it's managed to strike a deal to sell
Speaker 1: its US on shore wind business, which means that it
Speaker 1: has now completely exited a wind power generation. It's also
Speaker 1: agreed to offload its Dutch retail fuel sites and also
Speaker 1: electric vehicle charging hubs, so it is making that progress there.
Speaker 1: So we'll get more update on how it's kind of
Speaker 1: managing this turnaround at the third quarter result tomorrow, where
Speaker 1: we'll get probably an update on that strategy going forward.
Speaker 3: Okay, and we're going to switch Forcus to Compari Group
Speaker 3: now Chloe, which is dropping fow an Italian tax fraud probe.
Speaker 3: How potentially damaging is this?
Speaker 1: What are the details? Yeah, Well, Italian prosecutors ordered the
Speaker 1: seizure of around one point three billion euros in shares
Speaker 1: from the holding company that controls Compari, so it's not
Speaker 1: directly affected, but it is part of this tax fraud probe,
Speaker 1: so it relates to alleged unpaid taxes on assets moved abroad,
Speaker 1: and it is related to the Luxembour base holding company Elekfin,
Speaker 1: and this is related to the alleged failure to pay
Speaker 1: exit tax on about five point three billion euros of
Speaker 1: capital gains generated when it absorbed an Italian subsidiary. So
Speaker 1: Compare Yourself is not under investigation, and it's said that
Speaker 1: it does not expect the litigation to impact it or
Speaker 1: any of its subsidiaries. But analysts are saying that the
Speaker 1: news is likely to put that pressure on the shares
Speaker 1: regardless of that direct impact, with an overhang on the
Speaker 1: shes until that tax dispute is clarified. And as I've
Speaker 1: said that the shares seized amount of out to about
Speaker 1: sixteen percent of the Compari market capitalization, which could be
Speaker 1: material if the Italian authorities were going to monetize that
Speaker 1: to settle that tax to.
Speaker 3: That on Campari Group. We've also been looking at Ryanair today.
Speaker 3: The airline expects to exceed passenger growth targets, but the
Speaker 3: CEO also issued quite a fourth right. I guess it
Speaker 3: was a threat or the threat of a consequence for
Speaker 3: the government here too.
Speaker 1: Yeah. Absolutely, So there's quite a lot of news actually
Speaker 1: coming up Ryaner this morning. So a profit came in
Speaker 1: ahead of expectations, as you said, raise the target for
Speaker 1: passenger growth this year thanks to really strong travel demand
Speaker 1: and also improving Boeing deliveries. But then we also have
Speaker 1: the CEO and striking quite a cautious stone and saying
Speaker 1: that any taxes would lead to a refocus on production
Speaker 1: for Ryanair. It said that. He said also it was
Speaker 1: too early to provide a meaningful profit guidance for the
Speaker 1: four years, so that was also quite that cautious tone
Speaker 1: that I mentioned, and some analysts have noted that there
Speaker 1: was a lack of guidance upgrade on profit after tax,
Speaker 1: and so all of that has led to a bit
Speaker 1: of weakness in the chefs despite those Boing deliveries improving,
Speaker 1: despite the profit coming in ahead of expectors, and some
Speaker 1: of them I also have had had to do with
Speaker 1: a really strong share price performance recently. It's a company
Speaker 1: that has been really outperforming with and EasyJet, which are
Speaker 1: the closest budget airline arrivals, and so it has been
Speaker 1: pairing maybe some of those games. After really strong share
Speaker 1: price performance.
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