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Shownotes
Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Ryanair Holdings Plc Chief Executive Officer Michael O’Leary predicted the highest increase in European air fares in history next year as the Middle East war continues to drive up oil prices, forcing airlines to pass on their fuel costs to consumers.
- ABB shares fall as much as 6.7%, the most since April 2025, after strong third-quarter order intake in the electrification unit wasn’t enough to convince investors that the recent AI-driven rally has more room to run. Citi says a better overall mood toward the theme is needed to drive the shares higher.
- Bunzl shares fall as much as 4.7%, the most since December, after a third-quarter update that offered little fresh impetus for earnings despite solid underlying revenue growth of 3.7%.
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Bloomberg Audio Studios. Podcasts. Radio. News. 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 stocks on the move today here in Europe. I'm James Wilcock with Caroline Hepker, and we're joined in the studio by Bloomberg's breaking news editor, Louise Moon. Louise, I'm worried about my holiday. Let's start with Ryanair today.
Well, potentially a good reason to be so. We've had some comments from Ryanair CEO Michael O'Leary. He was speaking at a press conference in Brussels. And the main thing really that he said, he's predicted … the highest increase in European airfares in history next year. Obviously, on the back of higher oil prices, that's then raising fuel costs and that's then being passed on to consumers. So, he's saying that ticket prices will increase as much as 20% next year. And that even despite that jump in prices, that won't make up for the higher oil bill. So, airlines margins are still going to get very squeezed. So, overall, obviously, quite a bleak time for the industry. He's saying that on top of that, a lot of the European airlines,
including Ryanair, are lacking significant hedging for next year to protect them against those higher oil prices. There's also less capacity in markets as some airlines are struggling. There's higher taxes. So, a whole host of struggles, unsurprisingly. since the Middle East conflict. Ryanair has already cut its annual passenger target for this year. So, they're going to fly less seats in the winter season.
And shares falling this morning at about 2%. They've already lost about 23% so far this year as of close yesterday. And then a further about 2% this morning.
Yeah. They've got about 85% unhedged in terms of the fuel for next year. So, that's a big issue, isn't it? I suppose it could all turn around, though, if oil prices come down at some point. Yeah, so volatile. That is the risk. It's the thing that everybody's watching, isn't it? Let's think about shares of ABB. This is the Swiss automation company. Actually, their results are really good. Tell me about what's going on with the share price. Yeah.
So, they had third quarter, as you say, it was good. So, orders beat expectations. They jumped 40% over $ 12 billion.
Yeah.
Mostly on the back of demand for their electrical components that are used in data centers. So, this is all the AI demand there. Also pushing ahead with M & A. But as you say, shares dropping as almost 7% this morning. Essentially, analysts are saying that, yes, this points to further upside for 2027, 2028. But Citigroup in particular is saying they want to see an improvement in the broader market sentiment for AI, the AI theme. that will be necessary to drive shares higher. So, this is the theme that's playing out in markets that shares of companies that are AI beneficiaries are coming under pressure. Investors are rotating into more defensive names. There's concern over the trajectory of the boom
in AI demand. So, as much as their orders are beating expectations, there's worries there and that's what's dragging the shares lower.
And then I feel you're going to make this a triple negative Tuesday, Louise, with Bunzel. They've got lackluster earnings.
Yes.
Well, so, the third quarter, the revenue grew and they reiterated their four-year guidance. But in a similar way, shares dropped. They've dropped the most since December, down as much as about 5%. Analysts are saying there's little spark there, little impetus. Guidance is modest, really.
Ouch, little spark there.
Exactly. Guidance is modest. And if you compare that to the last year, growth was about almost 8%. So, In comparison to that, it's very modest, really, suggesting kind of limited near-term scope for things to accelerate further. So, shares dropping despite them sticking with that guidance there.
The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.
