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Well, let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll and I'm joined by Bloomberg reporter Chloe Melachloy. Good morning. We're talking about a reversal in some senses on the market today versus what we saw yesterday. And I say, to an extent, let's start with the energy sector. BP shares rebounding today.
Yeah. Absolutely, So this is really what we've been chating for the last few weeks. We get some sense that peace might be coming, and so we're seeing oil prices tumbling and oil companies going into the red, and then we get that potential piece threatened once again, and then oil is then going back up. And this is very much what's been happening now. So the ceasefire seems quite fragile.
Fighting is very much continued in the Middle East, with a lot of Israeli strikes on Lebanon in particular, and Iran says that those strikes violate the terms of the seas Fire the strait of hormones is also still largely closed, and that was a key condition from the US side for the seas fire. So it's really unclear how long this will hold, and optimism as have faded a little bit, and that means that after suffering the biggest one day drop since April twenty twenty yesterday, oil is very much
rebounded today and that could continue. We're seeing analysting that Brent is set to average more than one hundred dollars a barrel through twenty twenty six if the straight of hormones is to remain closed for another month, and so as a result of that, as a result of oil rebounding, we're seeing the likes of VP, equanor any all of those names very much going back up again after that huge drop yesterday.
NOBP shares currently up two and a half percent in London. Of course, the opposite side to that story is what's been happening with airlines. We have seen shares an easy Jet fall this morning after the games we saw yesterday.
Yeah, exactly, So it's very much that same reversal story. The optimism around ceasefire had really boosted airlines yesterday because of how vulnerable that sector had been to the conflict, and today that optimism, as we said, is fading once again and the impact of the war on jet fuel prices is once again top of mind. And so it also means that we might see more of those jet fuel shortages that have started to happen and happened in
Italy for example. Bloomberg Aotangius analysts have also said that we're likely to see more cuts to earnings expectations for airlines because of those higher energy prices, and that is worth noting because we're of course now coming into earning season and that's really when we'll get more information from airlines about what the impact has been, how how much of a hit to the outlook for the entirety of twenty twenty six. This is going to take.
Well, let's turn next to the luxury sector. ALVIMH shares this morning down three point one percent. What's going on?
Yeah, So speaking of earning season that I've mentioned for airlines, it's very much starting next week in luxury is going to be the first big sector that we'll be hearing from, and LVMH is coming is the first one is coming on Monday, and it's reporting in quite a tough context. It's had the worst start of the year to year on record. It's done about twenty five percents since the
beginning of the year. It's also weaker today, as you mentioned, and a list aren't expecting the first quarter to have been fantastic. There's very much going to be a continuation of some of the challenges it's already seen during the fourth quarter. There's a note out today from JP Morgan saying that categories like jewelry will be more resilience. That's good news for a company like leish More and less
so for a company like LVMH. And it's going to be a bumpier quarter for leather goods and that happens to be one of the key businesses for LVMH. There's also some weakness still some weakness in the wines and spirits division that LVMH is going to have to contend with. So all of that is very much in focus and will also be getting updates from Caring NMS next week. So that's definitely going to be a big week for luxury.
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