WEBVTT - Equinor Split, Fresnillo Shaken, Lanxess Cuts

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move

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<v Speaker 3>today in Europe. I'm Stephen Carroll with Caroline Hepker, and

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<v Speaker 3>we're joined by Bloomberg reporter Chloe Melee. Chloe, good morning.

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<v Speaker 3>Let's start with oil companies. As you might imagine on

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<v Speaker 3>a day when we've got a big jump in oil prices,

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<v Speaker 3>Equinor in Norway reporting, what did we learn from them?

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<v Speaker 4>Yeah, so there's a couple of things happening with Equinor.

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<v Speaker 4>There's the company specific and then there's the geopolitical context

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<v Speaker 4>that you just alluded to. So the company specific update

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<v Speaker 4>is that it is planning to split its marketing, midstream

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<v Speaker 4>and processing unit into So what that essentially means is

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<v Speaker 4>that it will allow it to really strengthen its trading business.

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<v Speaker 4>So that is the first thing that investors are thinking

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<v Speaker 4>about this morning, and that is driving those shares.

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<v Speaker 1>And then, of course, also more.

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<v Speaker 4>Importantly, perhaps the whole sector, really the whole oil sector

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<v Speaker 4>is up because of that geopolitical context of those oil

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<v Speaker 4>prices rising, So oil is rallying very strongly after attacks

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<v Speaker 4>on major energy facilities throughout the Middle East, and that

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<v Speaker 4>really raises concerns about what the impact on global energy

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<v Speaker 4>supplies might be. And so of course when oil rallies

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<v Speaker 4>in that way, we are seeing shares and oil companies

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<v Speaker 4>following suit. Of course, so we have equanor, but also

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<v Speaker 4>the likes of BP, nest Any all stronger, all in

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<v Speaker 4>the green this morning, and oil has risen about fifty

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<v Speaker 4>percent since.

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<v Speaker 1>The start of the war. It's unclear how much further

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<v Speaker 1>it will go.

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<v Speaker 4>This is obviously band news for customers for some companies,

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<v Speaker 4>but at least for oil companies, it is good news

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<v Speaker 4>in that sense.

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<v Speaker 5>Yes, in terms of the miners though, it's quite different.

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<v Speaker 5>Gold slumping this morning, copper, zinc, aluminium. Why are the

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<v Speaker 5>miners having such a bad day?

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<v Speaker 1>Yeah, well, I mean everyone is having a bad day

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<v Speaker 1>in the way exact. For energy.

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<v Speaker 4>The socks across a lot of different sectors are down

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<v Speaker 4>because of that surge and oil and gas prices. It

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<v Speaker 4>creates a lot of concerns around inflation, around the impact

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<v Speaker 4>on economic growth, and one of those sectors that's being

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<v Speaker 4>hit at the moment is precious metals. So we'd seen

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<v Speaker 4>gold and silver really benefiting from geopolitical tensions as the

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<v Speaker 4>beginning of the year because there was this whole theme

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<v Speaker 4>of a rush to save haven assets. But now there's

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<v Speaker 4>a rebound in the US dollar, there's those higher oil

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<v Speaker 4>prices that we've mentioned, those inflation concerns and all of

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<v Speaker 4>that have triggered a pullback in some of those prices.

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<v Speaker 4>And so what we're seeing today is precious metals prices

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<v Speaker 4>retreating and as a result, hitting those share prices of

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<v Speaker 4>the likes of Fresno and Anglo American and all of

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<v Speaker 4>those big miners that has seen actually of really good

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<v Speaker 4>performance at the beginning of the year, and so basic

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<v Speaker 4>resources is one of the worst performing sectors at this morning,

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<v Speaker 4>and Fresno in particular, it's done quite a bit okay.

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<v Speaker 3>And we're also looking at the German chemicals company. This

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<v Speaker 3>is Lengths and the latest from them.

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<v Speaker 1>Yeah, chemical sector is a tough one to be in

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<v Speaker 1>right now.

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<v Speaker 4>There's essentially a lot of over capacity and not enough

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<v Speaker 4>demand and that is really dragging down those prices. And

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<v Speaker 4>Anxis is a company that makes things like plastics and

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<v Speaker 4>rubber and it's one of the victims of that, and

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<v Speaker 4>profit fell massively from a year earlier, and it seems

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<v Speaker 4>that things really aren't getting any better anytime soon. So

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<v Speaker 4>it announced today a new cost cutting program that is

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<v Speaker 4>targeting about one hundred million euros in annual savings by

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<v Speaker 4>twenty twenty eight, and part of that is going to

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<v Speaker 4>be getting rid of five hundred and fifty jobs. And

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<v Speaker 4>you know, some of those companies in the chemical sector

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<v Speaker 4>will start seeing some benefits at some point of the

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<v Speaker 4>big infrastructure investments that our due to be happening in Germany,

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<v Speaker 4>but LANs has said that that will not be seen

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<v Speaker 4>before the second half of the year, so there's a

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<v Speaker 4>little bit to wait until some of those benefits come through.

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<v Speaker 4>And then a big concern is that a lot of

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<v Speaker 4>those companies in that chemicals industry have been struggling with

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<v Speaker 4>high energy prices, and as we just mentioned earlier, those

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<v Speaker 4>are rising very sharply at the moment, so that'll be

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<v Speaker 4>a continuing challenge.

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<v Speaker 2>The Stockmovers Report from Bloomberg Radio. Check back with us

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<v Speaker 2>throughout the day for the latest roundup of companies making

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<v Speaker 2>news on Wall Street and for the latest market moving headlines.

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