Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Well, let's take a look at some of the stocks
Speaker 3: on the move today in Europe. I'm Tea Adabai with
Speaker 3: Caroline Hapcat and we're joined by Bloomberg reporter Chloe Melly. Chloe,
Speaker 3: let's start with HSBC earnings. They were released this morning.
Speaker 3: How are they faring so far?
Speaker 1: Yeah, so, ESBC, it looks pretty positive across the board
Speaker 1: in terms of those earnings. So it resumed its buy back,
Speaker 1: the profit beat estimates, and then it also improved its
Speaker 1: cost cutting target. This was all quite a beat, but
Speaker 1: it maybe was not quite enough to sustain the massive
Speaker 1: rally that we had seen ahead of the results, and
Speaker 1: so we saw shares down in Hong Kong trading and
Speaker 1: they're a bit mixed in London this morning. So Samanda
Speaker 1: said that the limited chaines to guidance were maybe a
Speaker 1: little bit underwhelming, that perhaps the buy back itself was
Speaker 1: a little bit underwhelming as well. The expectations were just
Speaker 1: for more meaningful upgrade for HSBC, and so that's why
Speaker 1: it's a little bit mixed this morning. Another interesting thing
Speaker 1: to come out of those earnings today was the CEO
Speaker 1: saying that HSBC could boost its bonus pool for bankers
Speaker 1: if that strong performance continues. Barkley said something actually very
Speaker 1: similar just last month, and so it seems that those
Speaker 1: European banks are wanting to move to maybe similar page
Speaker 1: structures to Wall Street banks, and so maybe that could
Speaker 1: help with getting the best talent. We've obviously seen European
Speaker 1: banks underperformed slightly their Wall Street piers.
Speaker 2: Okay, so that on HSBC.
Speaker 3: Meanwhile, as you say, the difficulty of rising oil prices.
Speaker 3: The German airline leftans as seeing a really big drop today.
Speaker 3: But it's not just about oil prices.
Speaker 2: Interesting, Yeah, we lived out.
Speaker 1: There's just a bunch of challenges for that company. So
Speaker 1: it's yet another airline warning of that kind of growing
Speaker 1: uncertainty for its outlook, you know, giving up its capacity
Speaker 1: growth targets, just like AIG did earlier in the earning season.
Speaker 1: The second quarter profit was also a less than half
Speaker 1: what it was last year, and as you say, Caroline,
Speaker 1: a lot of that due to fuel costs. Of course,
Speaker 1: that has affected the entirety of that airline sector, but
Speaker 1: specifically full of Tansa. There was the added challenge of
Speaker 1: strike related costs as well, because there were walkouts from
Speaker 1: pilots and cabin crew earlier this year, and Liftansa has
Speaker 1: said that this was something that costs one hundred and
Speaker 1: fifty million euros in the quarter, so not insignificant. And
Speaker 1: this update from lust Tansa is really the latest sign
Speaker 1: of how much pressure there is right now on European airlines.
Speaker 1: You know, Luftanza has already announced plans to cut jobs.
Speaker 1: It's decommissioned alder planes. It's also got rid of about
Speaker 1: twenty thousand short haul flights, so it might have to
Speaker 1: take even more other drastic measures if things don't improve,
Speaker 1: if those costs keep rising. But it's not been a
Speaker 1: very good ending season for that sector for sure.
Speaker 3: Okay, so some difficulties for left handser. But on the
Speaker 3: other side of the equation we have Bayer. They saw
Speaker 3: an earnings beat this morning. What's the latest there.
Speaker 1: Yeah, so Bayer saw an unexpected increase in a profit
Speaker 1: for the second quarter and that was driven in particular
Speaker 1: by the crop science business doing very well. So it
Speaker 1: seems that things are starting to look up for Bayer
Speaker 1: after years of litigation issues related to its roundup weed killer,
Speaker 1: of course, and that had been kind of top of
Speaker 1: mind for investors for years and years, But it seems
Speaker 1: that things are starting to get a bit better in
Speaker 1: that regard for Bayer. It received a favorable US Supreme
Speaker 1: Court ruling back in June that sort of weakened a
Speaker 1: key argument that was underpinning the majority of those legal cases.
Speaker 1: And now the next big step for BYA is a
Speaker 1: hearing on August nineteenth of its settlement proposal of seven
Speaker 1: twenty five billion dollars, and so it got preliminary approval
Speaker 1: for that, but not full approval yet. The full approval
Speaker 1: would really allow by It to kind of finally get
Speaker 1: rid of this legal overhang and really move forward. And
Speaker 1: so we've seen the shares up significantly this year on
Speaker 1: hopes that it can successfully manage these legal problems, and
Speaker 1: now those positive earnings are adding to those games.
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