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Let's take a look now at some of the stocks on the move today in Europe. I'm Rachel Evans with Caroline Hepka. We're joined with Bloomberg reporter Chloe Malay. Chloe, thanks for coming. We had a rare primetime speech with President Trump yesterday relating to the Iran war. How are energy stocks reacting to that this morning? Likes of BP, for example.
Yesterday there was some signaling from Trump that the war might be coming to an end, and so that led oil down and then oil majors down as well. But then yesterday evening, in that primetime speech that you mentioned, Trump at a very different tone, saying that the US would hit Iran extremely hard over the next two to three weeks. He did not present any sort of concrete plan for exiting the war or also reopening at the
strait off of Hole Moves, which remains largely closed. So the markets interpreted this as the fact that the resolution to this conflict and might not come as easily or as swiftly as we thought yesterday, and so we saw oil jumping once again and then leading those oil majors higher once again this morning. So we might see more of this back and forth with oil jumping and retreating as the market is try and really figure out how
and when exactly this war might end. But in the meantime, BP is definitely in the green this morning.
Yeah. Absolutely.
Let's think about what it means for the airline business.
We had some news out of LIFTANSA today.
Yeah, so there was a big rally yesterday among those European airlines because oil was falling, so it was all part of this same story. Really. There was a sense of relief from airlines that had dealt with those flight disruptions, those higher fuel costs, and so they reacted quite positively to the news that the war might come to an end. But then today, as mentioned, we have oil jumping again
and therefore airlines down and so full liftans andticular. There's also another thing that is really weighing on the stock this morning, which is a downgrade from Morgan Stanley, with analyst saying that there is a risk that fuel costs could stay higher for longer and that Luftans is particularly
vulnerable to that. They said that even with a de escalation in the coming weeks, there would still be some refining capacity constraints, some constraints around logistics, around inventories, and that means that a shortage of jet fuel is harder and slower to resolve, and therefore would mean fuel costs of staying higher. And then a separate note from Blueberg
Intelligence this morning also mentioned the same thing. They said that companies like Luftanza but also appears like AAG and Air France and Ryanair do have fuel hedges and that stabilizes prices to an extent, but then that doesn't secure product delivery, and so that makes those airlines very vulnerable to supply shocks and that could in turn curtail flying as well. Sotander is definitely taking bit of a hit this morning as a result.
Interesting it starts hitting people's holidays. Finally, we had some news for Air France. How's the market reaction to that.
Yeah, so there's a different airline story this morning from fuel costs. So, Air France submitted the first bid for a stake in the Portuguese airline TAP, so that essentially kicks off the race for that company after Air France, but then also Liftans and IAG were all invited last
year to submit preliminary offers for that Portuguese airline. The Portuguese government is planning to sell as much as a forty nine point nine percent of the company, and it's said that it needs to be part of a larger groups that it can gain scale and really secure a long term future. So now the government will start reviewing some initial proposals and then the shortlisted bidders will have
ninety days after that to submit binding offers. So we are going to be waiting for Liftans and IAG to potentially also submit some of those non binding offers to start with. But Air France shares were a little bit weaker this morning, although they might have more to do with the oil story that we were mentioning rather than this potential m and A.
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