WEBVTT - Shell Dips, Siemens Healthineers Down, Campari Plunges

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

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

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

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

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<v Speaker 3>the move today in Europe. I'm to you added by

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<v Speaker 3>It with Stephen Carroll and we're joined by Bloomberg reporter

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<v Speaker 3>at Chloe Mallley.

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<v Speaker 1>So, Chloe, let's start with Shell.

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<v Speaker 3>It's reporting a significant profit beat. How are investors taking

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<v Speaker 3>the news?

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<v Speaker 1>Yeah, so as expected.

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<v Speaker 4>Just like every other oil major, Shell has massively benefited,

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<v Speaker 4>of course, from the surgeon oil and gas prices since

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<v Speaker 4>the outbreak of the Iran War, and so of course

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<v Speaker 4>that's been a really big boost of its oil trading

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<v Speaker 4>business and there has more than an offset the impact

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<v Speaker 4>of production cuts in the Middle East. But we are

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<v Speaker 4>actually seeing some weakness in the shares this morning, and

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<v Speaker 4>there's a few different reasons for that.

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<v Speaker 1>One of them is.

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<v Speaker 4>That expectations had been very high going into the earning

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<v Speaker 4>shares have been up very strongly. Another thing as well

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<v Speaker 4>is that the buyback has actually been cut and really

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<v Speaker 4>steady sholder returns are a key part of the appeal

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<v Speaker 4>for those oil companies, so there might be of course

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<v Speaker 4>some disappointment there as well. And then finally, another reason

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<v Speaker 4>why Shell might be a bit weaker as well this

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<v Speaker 4>morning is that it might be reacting to those oil

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<v Speaker 4>prices of falling once again after the US is said

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<v Speaker 4>to have presented a memo that could potentially lead to

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<v Speaker 4>the reopening of the Strait of Hormus, and so all

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<v Speaker 4>of those different things might have led to that weakness

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<v Speaker 4>in the ches this morning, despite actually very strong earnings

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<v Speaker 4>from Shell, but they were kind of expected.

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<v Speaker 2>Okay, So Shelle shares, as you say, lower this morning shares,

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<v Speaker 2>and Zeman's health and years also down about three point

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<v Speaker 2>six percent at the moment.

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<v Speaker 4>What's happened, Yeah, it's because it's cut its outlook. So

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<v Speaker 4>it's facing a couple of challenges. Inflation inflationary pressures is

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<v Speaker 4>one of them, but the main one is actually a

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<v Speaker 4>changing in pricing policy in China that is quite unfavorable

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<v Speaker 4>to its business. So it's a policy that is aimed

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<v Speaker 4>at lowering a healthcare costs in preventing corruption by implementing

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<v Speaker 4>a more centralized procurement. But for Seema's health and is,

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<v Speaker 4>what that's meant is that it has had the impact

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<v Speaker 4>of really hurting cells and its diagnostics unit, which makes

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<v Speaker 4>blood testing equipment, and the company did say that the

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<v Speaker 4>impact would be temporary. It said that the men impact

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<v Speaker 4>was seen in the first half of this fiscal year

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<v Speaker 4>and that the adjustment process would take as about four

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<v Speaker 4>to six quarters. But of course it has had the

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<v Speaker 4>impact of that. It led it to cutting its outlook

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<v Speaker 4>this morning. And it's worth noting as well that the

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<v Speaker 4>company is considering a cell of the diagnostics business anyway,

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<v Speaker 4>so we'll be looking at that as well.

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<v Speaker 1>Okay, that's Siemens.

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<v Speaker 3>And finally Campari is plunging this morning at what's the latest.

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<v Speaker 1>Yeah, down massively this morning.

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<v Speaker 4>Much weaker than expected results for the first quarter and

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<v Speaker 4>also very disappointing results of guidance for the year.

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<v Speaker 1>Actually, and some of.

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<v Speaker 4>This hip to performance was due to a time targeted

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<v Speaker 4>inventory optimization, that's what it called a targeted inventory optimization

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<v Speaker 4>in the US, which had an impact of about ten

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<v Speaker 4>million euros, but a lot of it was just also

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<v Speaker 4>generally due to really weak consumer sentiment, despite the benefit

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<v Speaker 4>from an earlier easter, the benefit from the winter Olympics,

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<v Speaker 4>although maybe people don't drink that much Apple or Sprits

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<v Speaker 4>training Olympics. I'm not sure, but it's been really interesting

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<v Speaker 4>to see what's been happening for those alcohol companies this

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<v Speaker 4>earning season, given we have the backdrop of inflation of

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<v Speaker 4>those the uptake of weight loss drugs, of a lower

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<v Speaker 4>alcohol consumption, but we actually saw Diadro and AB and

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<v Speaker 4>BEV do better than expected thanks to exposure to markets

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<v Speaker 4>outside of the US, of China, of Europe. And it's

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<v Speaker 4>actually a similar thing for Compari, where the developing markets

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<v Speaker 4>were doing better and outperforming whilst other markets developed markets

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<v Speaker 4>actually underwhelmed. So definitely an interesting trend that we can

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<v Speaker 4>see appear there.

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<v Speaker 1>But for Comparis, it's definitely not been a.

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<v Speaker 2>Great morning Stockmovers report from Bloomberg Radio. Check back with

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