WEBVTT - DHL Jumps, Continental Falls, BP Rises

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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 2>Let's look at some of the stocks on the move

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<v Speaker 2>today here in Europe.

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<v Speaker 1>I'm Caroline Hepcat alongside Jamana Basecci and we're joined Pipelin

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<v Speaker 1>Bank's equity support to Chloemer leg Good morning, Chloe. DHL

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<v Speaker 1>shares have jumped twice that Yeah, so for DHL profit

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<v Speaker 1>be estimates by a good margin. So if we dig

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<v Speaker 1>into the segments a little bit more, we can see

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<v Speaker 1>where exposure to global trade comes in and what kind

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<v Speaker 1>of segments have been impacted and not impacted. So it's

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<v Speaker 1>doing quite well because the post and parcel segment was

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<v Speaker 1>really resilient things to price increases. But then the global

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<v Speaker 1>forwarding division, which is the one that's really exposed to

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<v Speaker 1>tariff's was actually weighed down quite a bit by lower

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<v Speaker 1>trade volumes. But crucially DHL, and that's the reason why

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<v Speaker 1>it's doing well is because it's not as exposed to

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<v Speaker 1>transpecific trade as much as some other companies in that sector.

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<v Speaker 1>And the ongoing kind of cost cutting initiatives that it's

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<v Speaker 1>started really helped and so it maintained its guidance, so

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<v Speaker 1>we can see the shares responding to that. We have

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<v Speaker 1>Musk reporting a little bit later this week, and that's

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<v Speaker 1>still in that shipping industry, so we'll see how it's

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<v Speaker 1>actually dealing with those lower rates. On the flip side,

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<v Speaker 1>Continental has missed analyst estimates some weakness showing up in

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<v Speaker 1>its tire division.

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<v Speaker 2>How's the market responding today?

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<v Speaker 1>So yeah, for Continental, the shares shares are down, but

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<v Speaker 1>it's a bit of kind of two stories, and the

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<v Speaker 1>market seems to be responding, maybe quite harshly to that

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<v Speaker 1>type weakness in tires. But the automotive business, which makes

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<v Speaker 1>sense and break system is actually in pretty good shape

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<v Speaker 1>and that's the one that will be spun off in September.

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<v Speaker 1>So that division cut costs and it raised prices ahead

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<v Speaker 1>of its IPO which is scheduled for September, and is

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<v Speaker 1>therefore doing quite well. But then on the other hand,

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<v Speaker 1>the tire's business, which is the business that Continental is keeping,

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<v Speaker 1>that disappointed. And it's the problem here is that the

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<v Speaker 1>margins are really weighed down by the costs from tariffs

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<v Speaker 1>and then also really strong euro compared to the dollar.

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<v Speaker 1>But Continental is reversing its portfolio expansion and only becoming

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<v Speaker 1>now it tires only business. But that's the division where

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<v Speaker 1>we see a little bit more weakness. We'll see how

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<v Speaker 1>that kind of goes, you know, going forward.

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<v Speaker 2>Okay, so that's Continental.

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<v Speaker 1>Moving on to BP in the oil and gas sector,

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<v Speaker 1>share prices up as much as two point eight percent

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<v Speaker 1>this morning following the earnings.

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<v Speaker 2>Tell us more about that.

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<v Speaker 1>Yeah, a really big earnings beat this morning for BP.

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<v Speaker 1>So that really much better just net income than what

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<v Speaker 1>was expected. But we also have a seven hundred and

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<v Speaker 1>fifty million dollar buyback and also an increased dividends, So

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<v Speaker 1>shares are moving on that. But they're also moving on

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<v Speaker 1>the updates on its turnaround plan. So it said that

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<v Speaker 1>it was cutting nine hundred million dollars of structural cost

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<v Speaker 1>or it had cut that in the first half, and

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<v Speaker 1>it also expects to receive about three billion dollars from

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<v Speaker 1>their investments, and it said it's new chairman will cond

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<v Speaker 1>review of the entire portfolio. So BP is obviously under

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<v Speaker 1>pressure from activist investor Elliott, and that activist investor is

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<v Speaker 1>trying to get BP to ctcasts in to refocus on

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<v Speaker 1>oil and gas, and it seems that BP is responding

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<v Speaker 1>to those demands, and shares have moved higher on that response.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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