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: Now, let's take a look at some of the stocks
Speaker 3: on the move today in Europe.
Speaker 1: I'm Caroline Hepgam. I'm joined by.
Speaker 3: Bloomberg reportacloone Malay. Lots of earnings to think about today.
Speaker 3: Let's start with BNP Pariba. We heard from the CFO
Speaker 3: we saw a jump in profits and then also raising
Speaker 3: some midterm targets for them.
Speaker 4: Yeah. Absolutely quite positive results across the board for BNP
Speaker 4: Barrier bu so as you said, they be expectations and
Speaker 4: then they also raised some targets for profitability. This is
Speaker 4: actually the second time in just a few months in
Speaker 4: the CEO has set more ambitious targets and part of
Speaker 4: why he did it last time and why he's done
Speaker 4: it again today was to reassure investors that all would
Speaker 4: be well despite some litigation risks that are facing the bank.
Speaker 4: So in October, US court rule that BNP would need
Speaker 4: to compensate to three foremost student civilians who accused the
Speaker 4: bank of helping to finance students dictatorship which had committed
Speaker 4: human rights abuses, and so that meant that BNP could
Speaker 4: face some quite high settlements.
Speaker 1: But right now this is still a big unknown.
Speaker 4: BNP is appealing the ruling in the coming days, it said,
Speaker 4: and we'll have to see what kind of comes out
Speaker 4: of that.
Speaker 1: But in the meantime, the really.
Speaker 4: Good results, those raised targets, the fact that the bank
Speaker 4: is also revamping its French business to match that profitability
Speaker 4: for the rest of the business. That's what investors decided
Speaker 4: to focus on today and so we have seen the
Speaker 4: shares jump quite quite strongly this morning. Yeah.
Speaker 3: Absolutely, I mean the concern is that that litigation could
Speaker 3: be in the billions because of the settlement with those
Speaker 3: three plaintiffs, and that might apply to many thousands of
Speaker 3: other people. So yes, they are also appealing, as you say,
Speaker 3: in the process of that, right. So that's BNP pariber
Speaker 3: on their results and litigation risks too. What about Ryan
Speaker 3: mettal We focused the great deal on defense names, haven't we.
Speaker 4: Yeah, we have, we have and today it is down
Speaker 4: this morning, Ryandmatti is down because of a pre closed
Speaker 4: call with analysts which implied that guidance for twenty twenty
Speaker 4: six was maybe a little bit below expectation. So there
Speaker 4: should still be growth, but it looks like it might
Speaker 4: be a little more muted than investors at a hope.
Speaker 4: So JP Morgan Analysts, for example, said that the ramp
Speaker 4: up in earnings and sales growth appears to be a
Speaker 4: little more challenging than they had previously thought, and so
Speaker 4: the messaging from Ryan Mettal on things like orders and
Speaker 4: cash flow was actually seen as reassuring, but maybe a
Speaker 4: little bit less so when it comes to the earnings growth.
Speaker 4: So definitely, Ryemettel is in good shape. But when we
Speaker 4: have such lofty expectations for a company, you know, the
Speaker 4: company moderating some of those expectations always creates a bit
Speaker 4: of a negative reaction for investors, and we have seen
Speaker 4: that happening today.
Speaker 1: We have got four year results actually in March for
Speaker 1: Ryan Mitzal's.
Speaker 4: We have to wear a little bit longer until we
Speaker 4: get more detail on their outlook.
Speaker 3: Okay, shipping in musk it's cutting jobs.
Speaker 1: Why yeah, it's cutting jobs.
Speaker 4: It's also trying to kind of get costs way down
Speaker 4: this year because the outlook is not looking great. So
Speaker 4: the reason for that is because the shipping companies as
Speaker 4: overall are set for quite difficult twenty twenty six because
Speaker 4: freight rates are coming down, and that is because there's
Speaker 4: an existing kind of mismatch between supply and demand. There's
Speaker 4: too many ships, too little need for them, because partly
Speaker 4: of trade tensions, and that situation will get even worse
Speaker 4: because the Red Sea shipping route is set to be reopening,
Speaker 4: and so the container liner industry had really benefited from
Speaker 4: the extra time that it took for ships to sell
Speaker 4: around the tip of Africa rather than through the Red Sea,
Speaker 4: and that had lowered the capacity the vessel capacity worldwide
Speaker 4: by as much as eight percent. But now Musk has
Speaker 4: made a couple of successful passages through the Red Sea,
Speaker 4: it looks like that route is set for reopening this year,
Speaker 4: and so that means that ships were have to go
Speaker 4: the long way around, and so there will be more
Speaker 4: vessel capacity, means that they'll be able to command less
Speaker 4: high prices and rates will be coming down, and rates
Speaker 4: will already on a downward trajectory, they'll be coming down
Speaker 4: even further, and so that means quite a lot of
Speaker 4: pressure on earnings for those shipping companies, and so Musk
Speaker 4: is trying to tell investors now to moderate their expectations
Speaker 4: a little bit for this year.
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.