Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today in Europe. I'm Stephen Carroll with Caroline Hepker, and
Speaker 3: we're joined by Bloomberg reporter Chloe Melee. Chloe, good morning.
Speaker 3: Let's start with oil companies. As you might imagine on
Speaker 3: a day when we've got a big jump in oil prices,
Speaker 3: Equinor in Norway reporting, what did we learn from them?
Speaker 4: Yeah, so there's a couple of things happening with Equinor.
Speaker 4: There's the company specific and then there's the geopolitical context
Speaker 4: that you just alluded to. So the company specific update
Speaker 4: is that it is planning to split its marketing, midstream
Speaker 4: and processing unit into So what that essentially means is
Speaker 4: that it will allow it to really strengthen its trading business.
Speaker 4: So that is the first thing that investors are thinking
Speaker 4: about this morning, and that is driving those shares.
Speaker 1: And then, of course, also more.
Speaker 4: Importantly, perhaps the whole sector, really the whole oil sector
Speaker 4: is up because of that geopolitical context of those oil
Speaker 4: prices rising, So oil is rallying very strongly after attacks
Speaker 4: on major energy facilities throughout the Middle East, and that
Speaker 4: really raises concerns about what the impact on global energy
Speaker 4: supplies might be. And so of course when oil rallies
Speaker 4: in that way, we are seeing shares and oil companies
Speaker 4: following suit. Of course, so we have equanor, but also
Speaker 4: the likes of BP, nest Any all stronger, all in
Speaker 4: the green this morning, and oil has risen about fifty
Speaker 4: percent since.
Speaker 1: The start of the war. It's unclear how much further
Speaker 1: it will go.
Speaker 4: This is obviously band news for customers for some companies,
Speaker 4: but at least for oil companies, it is good news
Speaker 4: in that sense.
Speaker 5: Yes, in terms of the miners though, it's quite different.
Speaker 5: Gold slumping this morning, copper, zinc, aluminium. Why are the
Speaker 5: miners having such a bad day?
Speaker 1: Yeah, well, I mean everyone is having a bad day
Speaker 1: in the way exact. For energy.
Speaker 4: The socks across a lot of different sectors are down
Speaker 4: because of that surge and oil and gas prices. It
Speaker 4: creates a lot of concerns around inflation, around the impact
Speaker 4: on economic growth, and one of those sectors that's being
Speaker 4: hit at the moment is precious metals. So we'd seen
Speaker 4: gold and silver really benefiting from geopolitical tensions as the
Speaker 4: beginning of the year because there was this whole theme
Speaker 4: of a rush to save haven assets. But now there's
Speaker 4: a rebound in the US dollar, there's those higher oil
Speaker 4: prices that we've mentioned, those inflation concerns and all of
Speaker 4: that have triggered a pullback in some of those prices.
Speaker 4: And so what we're seeing today is precious metals prices
Speaker 4: retreating and as a result, hitting those share prices of
Speaker 4: the likes of Fresno and Anglo American and all of
Speaker 4: those big miners that has seen actually of really good
Speaker 4: performance at the beginning of the year, and so basic
Speaker 4: resources is one of the worst performing sectors at this morning,
Speaker 4: and Fresno in particular, it's done quite a bit okay.
Speaker 3: And we're also looking at the German chemicals company. This
Speaker 3: is Lengths and the latest from them.
Speaker 1: Yeah, chemical sector is a tough one to be in
Speaker 1: right now.
Speaker 4: There's essentially a lot of over capacity and not enough
Speaker 4: demand and that is really dragging down those prices. And
Speaker 4: Anxis is a company that makes things like plastics and
Speaker 4: rubber and it's one of the victims of that, and
Speaker 4: profit fell massively from a year earlier, and it seems
Speaker 4: that things really aren't getting any better anytime soon. So
Speaker 4: it announced today a new cost cutting program that is
Speaker 4: targeting about one hundred million euros in annual savings by
Speaker 4: twenty twenty eight, and part of that is going to
Speaker 4: be getting rid of five hundred and fifty jobs. And
Speaker 4: you know, some of those companies in the chemical sector
Speaker 4: will start seeing some benefits at some point of the
Speaker 4: big infrastructure investments that our due to be happening in Germany,
Speaker 4: but LANs has said that that will not be seen
Speaker 4: before the second half of the year, so there's a
Speaker 4: little bit to wait until some of those benefits come through.
Speaker 4: And then a big concern is that a lot of
Speaker 4: those companies in that chemicals industry have been struggling with
Speaker 4: high energy prices, and as we just mentioned earlier, those
Speaker 4: are rising very sharply at the moment, so that'll be
Speaker 4: a continuing challenge.
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