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Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: But let's take a look at some stocks on the
Speaker 1: move today in Europe. I'm Stephen Carroll with Lizzie Burton
Speaker 1: and we're joined by Bloomberg reporter Chloe made Chloe. Good morning.
Speaker 1: We're going to start with HSBC, the worst performing share
Speaker 1: in the stock six hundred at the moment, down over
Speaker 1: five percent.
Speaker 2: Why is that?
Speaker 3: Yeah, quite a lot of weakness from HSBC this morning
Speaker 3: after quite disappointing set of results. So the performance was
Speaker 3: really weighed down by a couple of big charges, So
Speaker 3: a four hundred million dollar charge related to a fraud
Speaker 3: related exposure in the UK, and then also three hundred
Speaker 3: million dollar charge were tied to the deteriorating economic outlook
Speaker 3: because of what's happening in the Middle East. So there
Speaker 3: were some stronger parts in the results. We had a
Speaker 3: solid performance in the wealth segment for example, there was
Speaker 3: an upgrade within their interest income guidance as well, but
Speaker 3: the charges were very much top of mind for investors
Speaker 3: and it's of course adding to worries about the future
Speaker 3: of that region as a key growth market for banks.
Speaker 3: You know, HSBC had planned for major wealth and corporate
Speaker 3: banking expansion in the Middle East and now that is
Speaker 3: of course at risk. And then it also adds to
Speaker 3: worries more generally about what the regional tensions will mean
Speaker 3: for the global economy the longer that the conflict goes on.
Speaker 3: And so it's obviously not the first bank this earning
Speaker 3: season to be taking those provisions and those charges into
Speaker 3: warn about the impact. So there's certainly a lot of
Speaker 3: caution around that banking sector, and AHSBC really the latest
Speaker 3: to kind of mention.
Speaker 1: That, well, yeah, diving into that sector.
Speaker 2: You've also had UniCredit reporting results today.
Speaker 1: You've also had that recent takeover related headline, all of
Speaker 1: all the comments bank stuff.
Speaker 2: What's been the reaction.
Speaker 3: Yeah, unicreda is having a better day than HSBC for sure.
Speaker 3: So profit hit a record that was boosted by fee
Speaker 3: income in particular, which is really strong, and it also
Speaker 3: upgraded its four year targets. And as you mentioned, this
Speaker 3: of course comes at quite a pivotal moment for UniCredit
Speaker 3: because it is preparing to submit it's takeover bid. Excuse me,
Speaker 3: for Commas Bank, and so the bid is structor to
Speaker 3: lift Unicredits holding just above the thirty percent threshold that
Speaker 3: would trigger a mandatory offer. And so the plan A
Speaker 3: values Commas Bank at about seven percent below my market
Speaker 3: value actually, so that might mean that investors might be
Speaker 3: reluctant to tender those shares. It's also worth noting, of course,
Speaker 3: that Commas Bank, as well as the German government, which
Speaker 3: is a major shareholder, are both very much opposed to
Speaker 3: a takeover and have been opposed to it for the
Speaker 3: entire time that UniCredit has been making that pursuit, and
Speaker 3: so it's not a done deal at all, but at
Speaker 3: least the results is suggesting that UniCredit is already very
Speaker 3: strong on its own as we wait for more details
Speaker 3: on that takeover bid.
Speaker 1: Okay, so that's on UniCredit and turning to a bit
Speaker 1: of phiz in ab Invert's latest results. Their shares over
Speaker 1: six percent.
Speaker 3: Yeah, it's pretty could serve results from AB and BEV
Speaker 3: Volumes increased, not majorly, but they did increase compared to
Speaker 3: expectations of a decline. It also beat across a lot
Speaker 3: of different metrics, so a good set of results, and
Speaker 3: that was driven primarily by really strong beer demand in Mexico, Peru,
Speaker 3: and Colombia, and so that managed to offset some of
Speaker 3: the weakness that we saw in the US and China.
Speaker 3: And it's also really benefiting from the diversification of its
Speaker 3: portfolio beyond just beers, so it has now a lot
Speaker 3: of kind of what it calls ready to drink beverages,
Speaker 3: so things like canned cocktails, and it's also making quite
Speaker 3: a lot of inroads into non alcoholic beers as well.
Speaker 3: So from the big three beer companies we've got in Europe,
Speaker 3: so Heineken, Karsberg, and ab in Bev, ab in Bev
Speaker 3: seems to be the most resilient one. Hankan and Carsburg
Speaker 3: have warned about the conflict in the Middle East, the
Speaker 3: impact on energy costs, on raw materials costs. They've also
Speaker 3: been really hit by the weakness from a declining alcohol
Speaker 3: consumption globally. But ab in Bev has seemed to be
Speaker 3: much more resilient because of that diversification, but also because
Speaker 3: it is really benefiting from that exposure to Latin America,
Speaker 3: where it seems that people are still very much keen
Speaker 3: for a.
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