1 00:00:02,520 --> 00:00:10,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast, 2 00:00:10,800 --> 00:00:14,040 Speaker 1: your roundup of companies making moves in the stock market, 3 00:00:14,240 --> 00:00:16,480 Speaker 1: harnessing the power of Bloomberg data. 4 00:00:17,840 --> 00:00:19,599 Speaker 2: Let's take a look at some stocks on the move 5 00:00:19,640 --> 00:00:23,400 Speaker 2: today in Europe. We're joined now by Bloomberg. Sam Unstead Morning. 6 00:00:23,480 --> 00:00:26,599 Speaker 2: Sam Shell's earnings out this morning. Lots of headwinds. 7 00:00:26,640 --> 00:00:27,120 Speaker 3: How do they do? 8 00:00:27,800 --> 00:00:30,280 Speaker 2: Yeah, lots of headwinds for the oil industry generally. I've 9 00:00:30,280 --> 00:00:32,520 Speaker 2: had quite a lot of reporting. Excellent mobils out later 10 00:00:32,560 --> 00:00:34,760 Speaker 2: on today for those of you who can keeping an eye. 11 00:00:35,120 --> 00:00:39,320 Speaker 2: Shell overall pretty good. So the really key thing with 12 00:00:39,000 --> 00:00:42,400 Speaker 2: the oil industry and oil companies in particular is buybacks. 13 00:00:42,800 --> 00:00:44,519 Speaker 2: They kept the pace of their buybacks up three and 14 00:00:44,560 --> 00:00:47,000 Speaker 2: a half billion dollars a quarter. That was sort of 15 00:00:47,120 --> 00:00:51,000 Speaker 2: broadly expected but still welcome from investors. But the really 16 00:00:51,080 --> 00:00:53,080 Speaker 2: key thing is that their cash flow was pretty good. 17 00:00:53,080 --> 00:00:54,520 Speaker 2: So although they've had to take on a bit more 18 00:00:54,680 --> 00:00:57,200 Speaker 2: debt because the oil market has weakened a little bit 19 00:00:57,200 --> 00:00:59,720 Speaker 2: and the macro picture is weakened, they are still keeping 20 00:00:59,800 --> 00:01:01,760 Speaker 2: up the backpace and the cash flow is coming through, 21 00:01:01,800 --> 00:01:04,160 Speaker 2: so there's a sort of confidence that they may well 22 00:01:04,200 --> 00:01:06,000 Speaker 2: be able to navigate this a little bit better than 23 00:01:06,000 --> 00:01:06,640 Speaker 2: some of their peers. 24 00:01:07,000 --> 00:01:09,919 Speaker 3: Yeah, and it's interesting also the kind of oil market 25 00:01:09,959 --> 00:01:11,760 Speaker 3: moves that we've been tracking after the kind of big 26 00:01:12,160 --> 00:01:14,960 Speaker 3: leg lower on the worries around the US recession. Actually 27 00:01:15,040 --> 00:01:17,679 Speaker 3: they have come up a little bit because of the 28 00:01:17,720 --> 00:01:21,479 Speaker 3: possibility of US China trade talks and maybe even fresh 29 00:01:21,520 --> 00:01:24,280 Speaker 3: sanctions or at least a threat of that against Iranian 30 00:01:24,360 --> 00:01:27,480 Speaker 3: oil flows. So you've also seen a bigger move in 31 00:01:27,600 --> 00:01:31,680 Speaker 3: terms of the oil market as the backdrop. Moving though 32 00:01:31,720 --> 00:01:35,640 Speaker 3: to the chemicals, BASF they say in their earnings that 33 00:01:35,680 --> 00:01:37,840 Speaker 3: they're still waiting to see a reaction. 34 00:01:38,640 --> 00:01:41,840 Speaker 2: Yes, So this has been kind of a trend across 35 00:01:41,880 --> 00:01:44,360 Speaker 2: the earning season of companies saying that right now things 36 00:01:44,400 --> 00:01:46,840 Speaker 2: are so uncertain that it's really difficult for us to 37 00:01:46,880 --> 00:01:50,120 Speaker 2: give a very strong guidance. Very few companies completely pulling 38 00:01:50,160 --> 00:01:53,160 Speaker 2: their guidance, but definitely putting a lot of uncertainty over 39 00:01:53,200 --> 00:01:55,600 Speaker 2: all of it. And I think BASF is often a 40 00:01:55,680 --> 00:01:57,480 Speaker 2: very good company to look at in these things, and 41 00:01:57,520 --> 00:01:59,920 Speaker 2: chemicals companies in general, because they play such a key 42 00:02:00,200 --> 00:02:02,440 Speaker 2: role in the supply chain that isn't often sort of 43 00:02:02,520 --> 00:02:06,160 Speaker 2: noticed quite so clearly. So BASF saying that, you know, 44 00:02:06,240 --> 00:02:08,560 Speaker 2: prices have come under pressure in the first quarter, but 45 00:02:08,680 --> 00:02:11,200 Speaker 2: now they have to wait and see as exactly what 46 00:02:11,280 --> 00:02:12,840 Speaker 2: kind of effect tarraphs are going to have over the 47 00:02:12,840 --> 00:02:15,200 Speaker 2: course of the rest of the year. So really in 48 00:02:15,240 --> 00:02:17,320 Speaker 2: line with a lot of their industrial peers, you know, 49 00:02:17,440 --> 00:02:22,400 Speaker 2: over the course of this earning season, uncertainty overshadowing basically everything. 50 00:02:22,560 --> 00:02:24,200 Speaker 3: Yeah, uncertainty, uncertainty, ncerty. 51 00:02:24,240 --> 00:02:26,680 Speaker 2: But that West, they say their earnings point them in 52 00:02:26,680 --> 00:02:30,280 Speaker 2: a good direction. Almost no uncertainty from that West actually. 53 00:02:30,360 --> 00:02:32,600 Speaker 2: So in Thatwest again we've had all the UK banks 54 00:02:32,639 --> 00:02:35,560 Speaker 2: reporting over the course of this week that West pretty 55 00:02:35,560 --> 00:02:38,440 Speaker 2: strong results again, big boots from mortgage lending. We've seen that, 56 00:02:38,480 --> 00:02:40,200 Speaker 2: you know, the run up to the stamp duty threshold 57 00:02:40,200 --> 00:02:43,040 Speaker 2: there was a huge rise in mortgage lending, saw that mployees. 58 00:02:43,080 --> 00:02:45,440 Speaker 2: We've seen that in that West as well. For that West, 59 00:02:45,520 --> 00:02:47,240 Speaker 2: you know, in comparison to the ones that have come 60 00:02:47,280 --> 00:02:49,160 Speaker 2: earlier in the week, they have a much lower in 61 00:02:49,200 --> 00:02:51,960 Speaker 2: fact almost no international exposure in the way the Barclays does. 62 00:02:52,160 --> 00:02:54,720 Speaker 2: They also have a much smaller motor finance business, you know, 63 00:02:54,720 --> 00:02:56,880 Speaker 2: compared to Lloyd's which is the largest lender in that space, 64 00:02:56,880 --> 00:03:01,000 Speaker 2: and there's an ongoing probe there, so their results much cleaner. Really. 65 00:03:01,000 --> 00:03:02,880 Speaker 2: The only drawback that analysts have said, and you know 66 00:03:02,919 --> 00:03:04,880 Speaker 2: shares are up this morning, is that actually it could 67 00:03:04,880 --> 00:03:06,960 Speaker 2: have been slightly better on the guidance. So the guidance 68 00:03:07,000 --> 00:03:09,760 Speaker 2: has been at the top end of expectations, analysts saying 69 00:03:09,760 --> 00:03:11,400 Speaker 2: that it is very possible over the course of the 70 00:03:11,400 --> 00:03:13,760 Speaker 2: rest of the year they're actually top that that guidance. 71 00:03:14,040 --> 00:03:16,000 Speaker 3: Yeah, you've got four more Bank of England quarter point 72 00:03:16,080 --> 00:03:19,119 Speaker 3: ratecar are so priced in for this year. So yes, 73 00:03:19,160 --> 00:03:22,440 Speaker 3: it's interesting, isn't it. And also those high street lenders 74 00:03:22,480 --> 00:03:24,360 Speaker 3: seem to be entering a phase of a bit of 75 00:03:24,360 --> 00:03:26,400 Speaker 3: a battle in terms of the mortgage market at least, 76 00:03:26,440 --> 00:03:27,240 Speaker 3: which is quite they. 77 00:03:27,160 --> 00:03:29,280 Speaker 2: Do, they do. But there's something that's quite interesting within 78 00:03:29,320 --> 00:03:30,920 Speaker 2: the UK banks, and this has been talked about by 79 00:03:30,919 --> 00:03:34,000 Speaker 2: analysts for quite a bit, is the structural hedges right 80 00:03:34,040 --> 00:03:35,840 Speaker 2: that they have in place. These are these fixed income 81 00:03:35,880 --> 00:03:39,160 Speaker 2: portfolios that help to smooth out fluctuations in lending rates. 82 00:03:39,280 --> 00:03:41,600 Speaker 2: The UK banks have looked at as being as having 83 00:03:41,680 --> 00:03:43,800 Speaker 2: much better structural hedges in place than a lot of 84 00:03:43,800 --> 00:03:46,400 Speaker 2: the European banks. So although the rate cut bets have 85 00:03:46,760 --> 00:03:49,119 Speaker 2: ramped up for the UK banks, they should be able 86 00:03:49,120 --> 00:03:51,200 Speaker 2: to navigate that at least through to twenty twenty six, 87 00:03:51,480 --> 00:03:52,160 Speaker 2: fairly speaking. 88 00:03:53,440 --> 00:03:57,560 Speaker 1: The Stock Movers podcast from Bloomberg Radio. 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