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 have a look at the socks on the
Speaker 3: move today here in Europe.
Speaker 1: I'm Caroline Hepkin.
Speaker 3: I'm joined by Bloomberg's Breaking News editor Louis Moon. Good morning, HSBC.
Speaker 3: Let's start there. They released new numbers this morning. Investors
Speaker 3: not reacting very positively.
Speaker 4: Indie shares down in London and also in Hong Kong,
Speaker 4: so in both locations where they are listed. This after
Speaker 4: first quarter results. Profits missed estimates, so profits fell to
Speaker 4: nine point four billion US dollars. Blow estimates down to
Speaker 4: two main things. So one is four hundred dollars US dollars,
Speaker 4: four hundred million US dollars charge links to what they
Speaker 4: called HB called HSBC called fraud related secondary securitization exposure
Speaker 4: with a financial sponsor in the UK. Now that's what
Speaker 4: reporting reported to be the now collapsed mortgage firm MFS.
Speaker 1: So that's four hundred million US dollars.
Speaker 4: And then as well as that, they also set aside
Speaker 4: three hundred million US dollars for impairments link to the.
Speaker 1: Middle East War.
Speaker 4: So a surprise fraud related charge and war related impairments
Speaker 4: dragging down HSBC's profits. Now, we've had a lot of
Speaker 4: banks reporting recently. Some others have also booked similar charges
Speaker 4: linked to the war. But many banks have reported, and
Speaker 4: particularly over in Wall Street, reported quite bonanza first quarter earnings.
Speaker 4: You know, strong numbers to HBC missing out on those
Speaker 4: in some bit of positivity and less are pointing to
Speaker 4: kind of relative underlying strength. So HSBC's wealth unit did
Speaker 4: quite well in the first quarter, and the Hong Kong
Speaker 4: business also did quite well.
Speaker 1: Obviously, they've been.
Speaker 4: On a huge restructuring drive under the CEO since late
Speaker 4: twenty twenty four roughly, and analysts that have welcomed that,
Speaker 4: and shares have recently hit all time highs. But this
Speaker 4: first quarter not performing well and dragging down shares.
Speaker 3: Yeah, okay, so that's HSBC elsewhere take over interest in
Speaker 3: inter Tech. How's that affecting its share price?
Speaker 4: Shares reacting positively shut up this morning, up to about
Speaker 4: fifty two pounds per share. They've already risen about ten
Speaker 4: percent this year. That's after takeover interest by Swedish Privacy
Speaker 4: firm EQT, So they've they've they've made a revised proposal
Speaker 4: this morning, so for fifty eight pounds a share that
Speaker 4: values into Tech. This is the Footsie one hundred company,
Speaker 4: valuing it at almost nine billion pounds.
Speaker 1: This is eqt's third attempt.
Speaker 4: Intertech's already said no to two previous attempts for undervaluing it,
Speaker 4: so and they've said they've they've responded this morning saying
Speaker 4: that they're reviewing this office. So it's a bit of
Speaker 4: a wait and see as to whether they might accept
Speaker 4: this third proposal. So yeah, as I say, so, there's
Speaker 4: EQT could potentially take over, but Intertect themselves are also
Speaker 4: separately exploring whether they split up, so there's kind of
Speaker 4: two things at play at the same time. So yeah,
Speaker 4: a bit of a wait and see as to whether
Speaker 4: this might go through this takeover.
Speaker 1: Yeah, okay.
Speaker 3: Meanwhile, Germany's Ryan Metta reporting today this company has been
Speaker 3: hugely in focused given an increased defense spending across Europe
Speaker 3: and especially in Germany.
Speaker 4: It has so first quarter results this morning sales actually
Speaker 4: fell short of estimates, and they're predicting a shift of
Speaker 4: revenue into the second quarter.
Speaker 1: So they've had some delays of shipments.
Speaker 4: Part of that is down to one of their plants
Speaker 4: in Spain, there was an accent there so production was affected.
Speaker 4: So not doing so well this morning, but shares actually rising.
Speaker 4: They rose as much as well, just over two percent
Speaker 4: and disappointing set operating margins in line.
Speaker 1: They can also confirm their guidance.
Speaker 4: As I say, they're expecting a stronger performance than the
Speaker 4: second half. So overall first half growth is expected to
Speaker 4: be the same pace as last year, and there's early
Speaker 4: signs of improvement in those orders, so there's a bit
Speaker 4: of reassurance that's being kind of focused on.
Speaker 1: There is some worries over some execution challenges.
Speaker 4: There's obviously a lot more deliveries and orders, and there's
Speaker 4: no kind of clear breakdown in their growth numbers. But
Speaker 4: as I say, share the rising on that shift in
Speaker 4: revenue to the second quarter, so some signs of more
Speaker 4: hope going forward.
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