WEBVTT - Shell Down, Maersk Dips, Silex Microsystems Soars 

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.239 --> 0:00:17.520
<v Speaker 3>And let's look at some of the stocks on the

0:00:17.520 --> 0:00:20.160
<v Speaker 3>move today here in Europe. One Carolina Hetki with Guy Johnson,

0:00:20.160 --> 0:00:22.800
<v Speaker 3>and we're joined by Bloomberg's Breaking News editor Louis Moon.

0:00:22.840 --> 0:00:25.240
<v Speaker 4>Good morning, Louise. Let's start by looking at Shells.

0:00:25.239 --> 0:00:27.640
<v Speaker 3>So they reported a jump in profits, they're cutting their

0:00:27.960 --> 0:00:30.480
<v Speaker 3>quarterly share buyback, or they are higher dividend.

0:00:30.480 --> 0:00:32.000
<v Speaker 4>How do investors read all of this?

0:00:32.440 --> 0:00:35.159
<v Speaker 1>Well, shares are falling this morning, so, as you say,

0:00:35.159 --> 0:00:37.479
<v Speaker 1>a bit of a mixed news. So on the number side,

0:00:37.600 --> 0:00:40.959
<v Speaker 1>profit surged twenty four percent beat estimates. All of that

0:00:41.000 --> 0:00:43.400
<v Speaker 1>on the back of what we've been seeing across oil

0:00:43.440 --> 0:00:46.480
<v Speaker 1>major's results, you know, reaping the benefits of higher oil

0:00:46.520 --> 0:00:50.000
<v Speaker 1>and gas prices, huge energy market modecility and trading essentially

0:00:50.040 --> 0:00:52.479
<v Speaker 1>on the back of that. So the numbers came in

0:00:52.600 --> 0:00:55.080
<v Speaker 1>quite strong. But as you say, they did cut their

0:00:55.120 --> 0:00:58.000
<v Speaker 1>quarterly buybacks. That's just three billion dollars rather than three

0:00:58.000 --> 0:01:01.440
<v Speaker 1>point five billion, so slightly smaller. They raised dividends, but

0:01:01.640 --> 0:01:04.520
<v Speaker 1>essentially that's kind offsetting each other in terms of giving

0:01:04.520 --> 0:01:08.600
<v Speaker 1>back to shareholders, So shareholders not overly impressed and shares

0:01:08.720 --> 0:01:12.480
<v Speaker 1>dropping this morning. Yeah, but as I say that, the

0:01:12.520 --> 0:01:15.600
<v Speaker 1>strong numbers are being seen across across oil. So despite

0:01:15.600 --> 0:01:18.920
<v Speaker 1>that strong numbers, the lack of buybackers is what's being

0:01:18.959 --> 0:01:23.280
<v Speaker 1>focused on. A MESK mask falling as much as four

0:01:23.280 --> 0:01:25.960
<v Speaker 1>point seven percent. This morning, also had their first quarter results,

0:01:25.959 --> 0:01:29.400
<v Speaker 1>so again bit of a mixed picture, so numbers be estimates,

0:01:29.400 --> 0:01:32.160
<v Speaker 1>and they did reaffirm their four year guidance, but that

0:01:32.319 --> 0:01:35.080
<v Speaker 1>essentially disappointed. Consensus had already been at the upper end

0:01:35.080 --> 0:01:39.240
<v Speaker 1>of the range four guidance, so that reaffirmation of that

0:01:39.520 --> 0:01:43.319
<v Speaker 1>was disappointing. They also didn't increase their buybacks, and some

0:01:43.440 --> 0:01:46.199
<v Speaker 1>interesting comments from the CEO him saying that the oil

0:01:46.280 --> 0:01:50.640
<v Speaker 1>shock will significantly raise costs this quarter and next quarter.

0:01:50.800 --> 0:01:53.440
<v Speaker 1>So it's raised costs by about five hundred million dollars

0:01:53.440 --> 0:01:55.800
<v Speaker 1>a month for MESK and he's going to fully pass

0:01:55.880 --> 0:01:58.920
<v Speaker 1>that on to customers and that's essentially why they can

0:01:59.000 --> 0:01:59.760
<v Speaker 1>raise their guidance.

0:02:00.160 --> 0:02:01.400
<v Speaker 4>So there's it.

0:02:01.560 --> 0:02:03.040
<v Speaker 1>And they also saying, you know that the outlook for

0:02:03.120 --> 0:02:05.840
<v Speaker 1>demand is highly uncertain in their words, so a lot

0:02:05.840 --> 0:02:08.680
<v Speaker 1>of kind of negative commentary also on the back of

0:02:08.720 --> 0:02:10.160
<v Speaker 1>the situation in the Middle East.

0:02:11.160 --> 0:02:14.720
<v Speaker 3>Then there's also a really big IPO that we have

0:02:14.760 --> 0:02:19.359
<v Speaker 3>to talk about, Silex Microsystems in the debut today.

0:02:19.800 --> 0:02:21.160
<v Speaker 4>Tell us more about how they did.

0:02:21.320 --> 0:02:22.959
<v Speaker 1>Yeah, so this is a chip maker first day of

0:02:23.040 --> 0:02:26.200
<v Speaker 1>trading in Stockholm. So the IPO rais about two hundred

0:02:26.240 --> 0:02:30.920
<v Speaker 1>and twenty million dollars and then they surged. The price

0:02:31.000 --> 0:02:32.840
<v Speaker 1>was almost one hundred and sixty percent higher than the

0:02:32.880 --> 0:02:36.480
<v Speaker 1>IPO price in trading this morning. It's one of the

0:02:36.520 --> 0:02:40.800
<v Speaker 1>strongest openings for quite a sizable European IPO in almost

0:02:40.880 --> 0:02:41.440
<v Speaker 1>five years.

0:02:41.440 --> 0:02:42.519
<v Speaker 4>So good performance.

0:02:42.560 --> 0:02:42.840
<v Speaker 2>There.

0:02:43.800 --> 0:02:48.320
<v Speaker 1>Essentially two things, one showing the appetite for the chip

0:02:48.360 --> 0:02:52.640
<v Speaker 1>making industry, obviously this has been booming in recent years,

0:02:52.639 --> 0:02:56.560
<v Speaker 1>and also shows the kind of broader tests for European

0:02:57.040 --> 0:02:59.960
<v Speaker 1>IPO markets. So there's been a bit of slowness recently

0:03:00.080 --> 0:03:02.960
<v Speaker 1>on the back of geopolitical tensions, a bit of invested caution,

0:03:03.080 --> 0:03:06.120
<v Speaker 1>but this is showing a bit of appetite.

0:03:06.280 --> 0:03:07.720
<v Speaker 4>At least for chick making.

0:03:08.760 --> 0:03:13.000
<v Speaker 2>The Stockmovers report from Bloomberg Radio. Check back with us

0:03:13.040 --> 0:03:15.840
<v Speaker 2>throughout the day for the latest roundup of companies making

0:03:15.919 --> 0:03:19.520
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:03:19.720 --> 0:03:23.760
<v Speaker 2>Listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg

0:03:23.800 --> 0:03:26.880
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:03:26.880 --> 0:03:28.280
<v Speaker 2>Bloomberg Business app.