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Let's take a look at some of the socks on the move today here in Europe. I'm Caroline Hepgive with Valerie Title, and we're joined by Bloomberg's reporter at Chloe Malay. Good morning, Chloe, it's Friday. We have a spring in our step. Tell us about BP though, lower oil and gas prices starting to filter into the sector, of.
Course, yeah, absolutely. We actually had two notes out today on the oil sector as a whole for Europe and both of them were quite negative. So we had Bank of America analysts downgraded both BP and SHELL, and we also had JP Morgan double downgrading any So both sets of those analysts I've seen quite similar things that you've mentioned.
So we have got a risk of oil oversupply and that is going to lead to lower oil prices, and then there's also lower gas prices, lower refining margins, and so that's expected to put a lot of pressure on cash flow for all of those companies, and lower cash flow it means also pressure on payouts to shareholders, of course, and we know how important buybacks are for investors in that oil and gas sector. So overall, JP Morgan analysts said that the sector was precariously poised, so that doesn't
bode too well going into the next year. And we are seeing those shares across BPNY and some of those other oil majors really really down this morning on the back of those downgrades.
Takers thro Occado, Big Surgeon the shares.
Today, yeah, Massive Surgeon. That is after it said that it would receive a three hundred and fifty million dollar a cash payment from Kroger to compensate for the for Kroger's decision to close three automated warehouses that were operated by Ocado. So this was an amount that was bigger than what was previously announced. So we had an announcement of two hundred and fifty million dollars initially. So it's a big boost and that will really help with Ocado's
efforts to reduce its debt. So the shares in Occado had fallen massively last month, and that was after Kroger, which was it is as biggest customer as saying that it would shift its e commerce business in some areas to its own stores rather than using the automated warehouses
that are operated by Ocado. So Occado is still now working with Kroger, just on fewer warehouses, and it's said that it still expects to turn cash ver positive in twenty twenty six, but there are still some setbacks and some challenges for the company going forward, and its ambition of becoming the tesla of grocery, which is what it hads touted before, is kind of in limbo at the moment.
Well, thinking of retailers and food and so on.
Gregg's Boy.
It was this morning after being rated a new overweight at JP Morgan and the analyst have said that it is a structural winner in a food retail They expect a very resilient performance and very solid earnings from twenty twenty six, so from next year and also see scope
a major rerating of that stock. So that comes just a few days after news that an activist investor was pushing for Gregs to cut those costs to avoid being taken over by private equity, and that had also led the shares hire a few days ago, but shares are still down about forty percent a year to date, so there's still kind of a long way to go, a
long way for a recovery for Gregs. But the fact that we have this vote of confidence from JP Morgan and perhaps on some of those hopes that management will actually listen to the activist investor and maybe try and find some of those efficiencies is leading to a lot of enthusiasm for that stock this morning, and therefore we are seeing the shares definitely up.
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