Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today in Europe. I'm to you added by
Speaker 3: It with Stephen Carroll and we're joined by Bloomberg reporter
Speaker 3: at Chloe Mallley.
Speaker 1: So, Chloe, let's start with Shell.
Speaker 3: It's reporting a significant profit beat. How are investors taking
Speaker 3: the news?
Speaker 1: Yeah, so as expected.
Speaker 4: Just like every other oil major, Shell has massively benefited,
Speaker 4: of course, from the surgeon oil and gas prices since
Speaker 4: the outbreak of the Iran War, and so of course
Speaker 4: that's been a really big boost of its oil trading
Speaker 4: business and there has more than an offset the impact
Speaker 4: of production cuts in the Middle East. But we are
Speaker 4: actually seeing some weakness in the shares this morning, and
Speaker 4: there's a few different reasons for that.
Speaker 1: One of them is.
Speaker 4: That expectations had been very high going into the earning
Speaker 4: shares have been up very strongly. Another thing as well
Speaker 4: is that the buyback has actually been cut and really
Speaker 4: steady sholder returns are a key part of the appeal
Speaker 4: for those oil companies, so there might be of course
Speaker 4: some disappointment there as well. And then finally, another reason
Speaker 4: why Shell might be a bit weaker as well this
Speaker 4: morning is that it might be reacting to those oil
Speaker 4: prices of falling once again after the US is said
Speaker 4: to have presented a memo that could potentially lead to
Speaker 4: the reopening of the Strait of Hormus, and so all
Speaker 4: of those different things might have led to that weakness
Speaker 4: in the ches this morning, despite actually very strong earnings
Speaker 4: from Shell, but they were kind of expected.
Speaker 2: Okay, So Shelle shares, as you say, lower this morning shares,
Speaker 2: and Zeman's health and years also down about three point
Speaker 2: six percent at the moment.
Speaker 4: What's happened, Yeah, it's because it's cut its outlook. So
Speaker 4: it's facing a couple of challenges. Inflation inflationary pressures is
Speaker 4: one of them, but the main one is actually a
Speaker 4: changing in pricing policy in China that is quite unfavorable
Speaker 4: to its business. So it's a policy that is aimed
Speaker 4: at lowering a healthcare costs in preventing corruption by implementing
Speaker 4: a more centralized procurement. But for Seema's health and is,
Speaker 4: what that's meant is that it has had the impact
Speaker 4: of really hurting cells and its diagnostics unit, which makes
Speaker 4: blood testing equipment, and the company did say that the
Speaker 4: impact would be temporary. It said that the men impact
Speaker 4: was seen in the first half of this fiscal year
Speaker 4: and that the adjustment process would take as about four
Speaker 4: to six quarters. But of course it has had the
Speaker 4: impact of that. It led it to cutting its outlook
Speaker 4: this morning. And it's worth noting as well that the
Speaker 4: company is considering a cell of the diagnostics business anyway,
Speaker 4: so we'll be looking at that as well.
Speaker 1: Okay, that's Siemens.
Speaker 3: And finally Campari is plunging this morning at what's the latest.
Speaker 1: Yeah, down massively this morning.
Speaker 4: Much weaker than expected results for the first quarter and
Speaker 4: also very disappointing results of guidance for the year.
Speaker 1: Actually, and some of.
Speaker 4: This hip to performance was due to a time targeted
Speaker 4: inventory optimization, that's what it called a targeted inventory optimization
Speaker 4: in the US, which had an impact of about ten
Speaker 4: million euros, but a lot of it was just also
Speaker 4: generally due to really weak consumer sentiment, despite the benefit
Speaker 4: from an earlier easter, the benefit from the winter Olympics,
Speaker 4: although maybe people don't drink that much Apple or Sprits
Speaker 4: training Olympics. I'm not sure, but it's been really interesting
Speaker 4: to see what's been happening for those alcohol companies this
Speaker 4: earning season, given we have the backdrop of inflation of
Speaker 4: those the uptake of weight loss drugs, of a lower
Speaker 4: alcohol consumption, but we actually saw Diadro and AB and
Speaker 4: BEV do better than expected thanks to exposure to markets
Speaker 4: outside of the US, of China, of Europe. And it's
Speaker 4: actually a similar thing for Compari, where the developing markets
Speaker 4: were doing better and outperforming whilst other markets developed markets
Speaker 4: actually underwhelmed. So definitely an interesting trend that we can
Speaker 4: see appear there.
Speaker 1: But for Comparis, it's definitely not been a.
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