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