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PG&E price sinks amid $2 billion investment slash: AlphaSpace breakdown

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Yahoo Finance Senior Reporter Brooke DiPalma joins host Josh Lipton to go over the day's trending prices, including PG&E ( PCG ), BP ( BP ), and Brown-Forman ( BF-B ).

00:07 Speaker A

Let's get into some trending tickers now. Brooke De Palma joining me. All right, uh first, Brooke, let's talk PG&E because they're plans to defer around two billion of investments next year. Sounds like this is part of a strategic review of its business. What do you make of that?

00:22 Brooke De Palma

Yeah, you can definitely see the stock having some significant movement down about 4.8% as we make our way towards the close. I was looking at Alpha space right before we jumped on. The stock now sitting around $13.27. Over the past six months, obviously you can see that sharp decline on the chart here after this announcement. We also heard from Bank of America saying that they're downgrading the company to neutral from buy. They're also cutting their price target to $13 from $24, largely after this bill was passed that ultimately fails to resolve long-term wildfire liability risk for utility companies. So obviously this company feeling the impact of that and Wall Street certainly weighing in this afternoon.

01:02 Speaker A

Yeah, let's look at that street. Nine buys, eight holds, so pretty divided there.

01:06 Speaker A

Uh topic two, BP, naming Ian Tyler chairman, per Bloomberg. This ends a period of boardroom drama, they say, allowing CEO Meg O'Neal to continue reshaping the company. What do you think?

01:19 Brooke De Palma

Boardroom drama indeed. and this has been going on since May. and so it seems like investors not really too much of a reaction as we make our way towards the close, but certainly optimistic that they could this could sort of sunset this uncertainty that investors have had over recent months. There's this new chairman now stepping in, the company ultimately saying that he's their man for the job. Their recent chairman that had to step down was accused of allegations relating to governance standards, oversight and conduct. So this new executive director now stepping in will ultimately hopefully has a good rep here, worked with more than 15 CEOs, certainly stepping in at the right time. Wall Street not really reacting too much, but year to date this stock has done pretty well.

01:52 Speaker A

Yes, you analyst at Barclay's, I see quoted as saying the appointment of the sitting interim chair signals a deliberate choice, they say for stability after a turbulent 18 months at board level.

02:03 Speaker A

Topic three, Brown Foreman. All right, this one profit looks like rising more than expected, uh getting an assist there. looks like by a drop in ad expenses. sales though, look like they remained under pressure in the US and and developed markets. What do you see?

02:15 Brooke De Palma

Yeah, what we are seeing right now is a stock pop up about 5% on the year to date, up about 4% today. And certainly this is a company that has really struggled. We know the US consumers are pulling back when it comes to alcohol demand and so they've been trying to face that. another potential headwin is those tariffs from Canada and the impact that that could have on the company as well. and so investors are really trying to understand the dynamics of how they're continuing to perform in this uncertain environment. and it seems like ready to drink cocktails are doing well for them.

02:41 Speaker A

Yeah, well Jack Daniels, right? iconic Jack Daniels. there you go.

02:45 Brooke De Palma

Yeah. Absolutely.

02:47 Speaker A

Thank you, Brooke, appreciate it.

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