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: And let's look at some of the stocks on the
Speaker 3: move today here in Europe. One Carolina Hetki with Guy Johnson,
Speaker 3: and we're joined by Bloomberg's Breaking News editor Louis Moon.
Speaker 4: Good morning, Louise. Let's start by looking at Shells.
Speaker 3: So they reported a jump in profits, they're cutting their
Speaker 3: quarterly share buyback, or they are higher dividend.
Speaker 4: How do investors read all of this?
Speaker 1: Well, shares are falling this morning, so, as you say,
Speaker 1: a bit of a mixed news. So on the number side,
Speaker 1: profit surged twenty four percent beat estimates. All of that
Speaker 1: on the back of what we've been seeing across oil
Speaker 1: major's results, you know, reaping the benefits of higher oil
Speaker 1: and gas prices, huge energy market modecility and trading essentially
Speaker 1: on the back of that. So the numbers came in
Speaker 1: quite strong. But as you say, they did cut their
Speaker 1: quarterly buybacks. That's just three billion dollars rather than three
Speaker 1: point five billion, so slightly smaller. They raised dividends, but
Speaker 1: essentially that's kind offsetting each other in terms of giving
Speaker 1: back to shareholders, So shareholders not overly impressed and shares
Speaker 1: dropping this morning. Yeah, but as I say that, the
Speaker 1: strong numbers are being seen across across oil. So despite
Speaker 1: that strong numbers, the lack of buybackers is what's being
Speaker 1: focused on. A MESK mask falling as much as four
Speaker 1: point seven percent. This morning, also had their first quarter results,
Speaker 1: so again bit of a mixed picture, so numbers be estimates,
Speaker 1: and they did reaffirm their four year guidance, but that
Speaker 1: essentially disappointed. Consensus had already been at the upper end
Speaker 1: of the range four guidance, so that reaffirmation of that
Speaker 1: was disappointing. They also didn't increase their buybacks, and some
Speaker 1: interesting comments from the CEO him saying that the oil
Speaker 1: shock will significantly raise costs this quarter and next quarter.
Speaker 1: So it's raised costs by about five hundred million dollars
Speaker 1: a month for MESK and he's going to fully pass
Speaker 1: that on to customers and that's essentially why they can
Speaker 1: raise their guidance.
Speaker 4: So there's it.
Speaker 1: And they also saying, you know that the outlook for
Speaker 1: demand is highly uncertain in their words, so a lot
Speaker 1: of kind of negative commentary also on the back of
Speaker 1: the situation in the Middle East.
Speaker 3: Then there's also a really big IPO that we have
Speaker 3: to talk about, Silex Microsystems in the debut today.
Speaker 4: Tell us more about how they did.
Speaker 1: Yeah, so this is a chip maker first day of
Speaker 1: trading in Stockholm. So the IPO rais about two hundred
Speaker 1: and twenty million dollars and then they surged. The price
Speaker 1: was almost one hundred and sixty percent higher than the
Speaker 1: IPO price in trading this morning. It's one of the
Speaker 1: strongest openings for quite a sizable European IPO in almost
Speaker 1: five years.
Speaker 4: So good performance.
Speaker 2: There.
Speaker 1: Essentially two things, one showing the appetite for the chip
Speaker 1: making industry, obviously this has been booming in recent years,
Speaker 1: and also shows the kind of broader tests for European
Speaker 1: IPO markets. So there's been a bit of slowness recently
Speaker 1: on the back of geopolitical tensions, a bit of invested caution,
Speaker 1: but this is showing a bit of appetite.
Speaker 4: At least for chick making.
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