1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:16,200 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,360 --> 00:00:17,880 Speaker 3: Now, let's take a look at some of the stocks 5 00:00:17,880 --> 00:00:19,759 Speaker 3: on the move today in Europe. 6 00:00:19,760 --> 00:00:21,400 Speaker 1: I'm Caroline Hepgam. I'm joined by. 7 00:00:21,280 --> 00:00:24,840 Speaker 3: Bloomberg reportacloone Malay. Lots of earnings to think about today. 8 00:00:24,920 --> 00:00:29,120 Speaker 3: Let's start with BNP Pariba. We heard from the CFO 9 00:00:29,360 --> 00:00:33,440 Speaker 3: we saw a jump in profits and then also raising 10 00:00:33,560 --> 00:00:35,440 Speaker 3: some midterm targets for them. 11 00:00:35,720 --> 00:00:38,880 Speaker 4: Yeah. Absolutely quite positive results across the board for BNP 12 00:00:39,000 --> 00:00:41,640 Speaker 4: Barrier bu so as you said, they be expectations and 13 00:00:41,680 --> 00:00:44,960 Speaker 4: then they also raised some targets for profitability. This is 14 00:00:44,960 --> 00:00:47,440 Speaker 4: actually the second time in just a few months in 15 00:00:47,520 --> 00:00:50,479 Speaker 4: the CEO has set more ambitious targets and part of 16 00:00:50,520 --> 00:00:52,479 Speaker 4: why he did it last time and why he's done 17 00:00:52,479 --> 00:00:56,000 Speaker 4: it again today was to reassure investors that all would 18 00:00:56,040 --> 00:00:59,240 Speaker 4: be well despite some litigation risks that are facing the bank. 19 00:00:59,320 --> 00:01:03,000 Speaker 4: So in October, US court rule that BNP would need 20 00:01:03,000 --> 00:01:06,480 Speaker 4: to compensate to three foremost student civilians who accused the 21 00:01:06,480 --> 00:01:10,959 Speaker 4: bank of helping to finance students dictatorship which had committed 22 00:01:11,040 --> 00:01:13,960 Speaker 4: human rights abuses, and so that meant that BNP could 23 00:01:13,959 --> 00:01:16,120 Speaker 4: face some quite high settlements. 24 00:01:16,160 --> 00:01:18,520 Speaker 1: But right now this is still a big unknown. 25 00:01:18,560 --> 00:01:21,520 Speaker 4: BNP is appealing the ruling in the coming days, it said, 26 00:01:21,560 --> 00:01:23,680 Speaker 4: and we'll have to see what kind of comes out 27 00:01:23,760 --> 00:01:24,080 Speaker 4: of that. 28 00:01:24,120 --> 00:01:25,920 Speaker 1: But in the meantime, the really. 29 00:01:25,720 --> 00:01:28,920 Speaker 4: Good results, those raised targets, the fact that the bank 30 00:01:29,000 --> 00:01:32,400 Speaker 4: is also revamping its French business to match that profitability 31 00:01:32,560 --> 00:01:36,280 Speaker 4: for the rest of the business. That's what investors decided 32 00:01:36,319 --> 00:01:38,520 Speaker 4: to focus on today and so we have seen the 33 00:01:38,560 --> 00:01:41,440 Speaker 4: shares jump quite quite strongly this morning. Yeah. 34 00:01:41,480 --> 00:01:45,040 Speaker 3: Absolutely, I mean the concern is that that litigation could 35 00:01:45,080 --> 00:01:47,560 Speaker 3: be in the billions because of the settlement with those 36 00:01:47,640 --> 00:01:51,720 Speaker 3: three plaintiffs, and that might apply to many thousands of 37 00:01:51,760 --> 00:01:56,480 Speaker 3: other people. So yes, they are also appealing, as you say, 38 00:01:56,560 --> 00:01:59,840 Speaker 3: in the process of that, right. So that's BNP pariber 39 00:02:00,080 --> 00:02:03,880 Speaker 3: on their results and litigation risks too. What about Ryan 40 00:02:04,000 --> 00:02:07,640 Speaker 3: mettal We focused the great deal on defense names, haven't we. 41 00:02:08,080 --> 00:02:10,959 Speaker 4: Yeah, we have, we have and today it is down 42 00:02:11,000 --> 00:02:13,840 Speaker 4: this morning, Ryandmatti is down because of a pre closed 43 00:02:13,840 --> 00:02:17,000 Speaker 4: call with analysts which implied that guidance for twenty twenty 44 00:02:17,000 --> 00:02:20,000 Speaker 4: six was maybe a little bit below expectation. So there 45 00:02:20,000 --> 00:02:22,480 Speaker 4: should still be growth, but it looks like it might 46 00:02:22,520 --> 00:02:25,280 Speaker 4: be a little more muted than investors at a hope. 47 00:02:25,320 --> 00:02:28,400 Speaker 4: So JP Morgan Analysts, for example, said that the ramp 48 00:02:28,520 --> 00:02:30,800 Speaker 4: up in earnings and sales growth appears to be a 49 00:02:30,800 --> 00:02:33,800 Speaker 4: little more challenging than they had previously thought, and so 50 00:02:33,880 --> 00:02:36,840 Speaker 4: the messaging from Ryan Mettal on things like orders and 51 00:02:36,880 --> 00:02:39,720 Speaker 4: cash flow was actually seen as reassuring, but maybe a 52 00:02:39,760 --> 00:02:41,960 Speaker 4: little bit less so when it comes to the earnings growth. 53 00:02:42,360 --> 00:02:45,079 Speaker 4: So definitely, Ryemettel is in good shape. But when we 54 00:02:45,160 --> 00:02:48,720 Speaker 4: have such lofty expectations for a company, you know, the 55 00:02:48,760 --> 00:02:52,200 Speaker 4: company moderating some of those expectations always creates a bit 56 00:02:52,200 --> 00:02:54,800 Speaker 4: of a negative reaction for investors, and we have seen 57 00:02:55,040 --> 00:02:56,200 Speaker 4: that happening today. 58 00:02:56,280 --> 00:02:58,840 Speaker 1: We have got four year results actually in March for 59 00:02:58,880 --> 00:02:59,520 Speaker 1: Ryan Mitzal's. 60 00:02:59,520 --> 00:03:01,760 Speaker 4: We have to wear a little bit longer until we 61 00:03:01,800 --> 00:03:03,320 Speaker 4: get more detail on their outlook. 62 00:03:03,960 --> 00:03:07,600 Speaker 3: Okay, shipping in musk it's cutting jobs. 63 00:03:07,680 --> 00:03:09,240 Speaker 1: Why yeah, it's cutting jobs. 64 00:03:09,240 --> 00:03:11,639 Speaker 4: It's also trying to kind of get costs way down 65 00:03:11,639 --> 00:03:13,800 Speaker 4: this year because the outlook is not looking great. So 66 00:03:13,840 --> 00:03:16,320 Speaker 4: the reason for that is because the shipping companies as 67 00:03:16,639 --> 00:03:19,760 Speaker 4: overall are set for quite difficult twenty twenty six because 68 00:03:19,800 --> 00:03:22,600 Speaker 4: freight rates are coming down, and that is because there's 69 00:03:22,680 --> 00:03:25,680 Speaker 4: an existing kind of mismatch between supply and demand. There's 70 00:03:25,800 --> 00:03:28,360 Speaker 4: too many ships, too little need for them, because partly 71 00:03:28,360 --> 00:03:31,519 Speaker 4: of trade tensions, and that situation will get even worse 72 00:03:31,600 --> 00:03:35,080 Speaker 4: because the Red Sea shipping route is set to be reopening, 73 00:03:35,160 --> 00:03:38,920 Speaker 4: and so the container liner industry had really benefited from 74 00:03:39,040 --> 00:03:42,480 Speaker 4: the extra time that it took for ships to sell 75 00:03:42,560 --> 00:03:45,720 Speaker 4: around the tip of Africa rather than through the Red Sea, 76 00:03:46,080 --> 00:03:49,560 Speaker 4: and that had lowered the capacity the vessel capacity worldwide 77 00:03:49,760 --> 00:03:52,440 Speaker 4: by as much as eight percent. But now Musk has 78 00:03:52,440 --> 00:03:55,360 Speaker 4: made a couple of successful passages through the Red Sea, 79 00:03:55,440 --> 00:03:58,000 Speaker 4: it looks like that route is set for reopening this year, 80 00:03:58,560 --> 00:04:00,440 Speaker 4: and so that means that ships were have to go 81 00:04:00,520 --> 00:04:02,560 Speaker 4: the long way around, and so there will be more 82 00:04:02,640 --> 00:04:05,920 Speaker 4: vessel capacity, means that they'll be able to command less 83 00:04:06,160 --> 00:04:09,560 Speaker 4: high prices and rates will be coming down, and rates 84 00:04:09,560 --> 00:04:12,600 Speaker 4: will already on a downward trajectory, they'll be coming down 85 00:04:12,640 --> 00:04:14,880 Speaker 4: even further, and so that means quite a lot of 86 00:04:14,960 --> 00:04:17,919 Speaker 4: pressure on earnings for those shipping companies, and so Musk 87 00:04:18,080 --> 00:04:21,880 Speaker 4: is trying to tell investors now to moderate their expectations 88 00:04:21,920 --> 00:04:22,960 Speaker 4: a little bit for this year. 89 00:04:24,440 --> 00:04:28,480 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 90 00:04:28,560 --> 00:04:31,120 Speaker 2: us throughout the day for the latest roundup of companies 91 00:04:31,200 --> 00:04:34,279 Speaker 2: making news on Wall Street and for the latest market 92 00:04:34,320 --> 00:04:38,800 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 93 00:04:38,880 --> 00:04:42,400 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 94 00:04:42,440 --> 00:04:43,960 Speaker 2: the Bloomberg Business app.