1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:16,160 Speaker 2: in the stock market, Harnessing the power of Bloomberg Data. 4 00:00:16,640 --> 00:00:18,400 Speaker 3: Time out to take a look at some stocks on 5 00:00:18,480 --> 00:00:20,759 Speaker 3: the move in Europe. I'm Stephen Carroll and I'm joined 6 00:00:20,800 --> 00:00:22,840 Speaker 3: by Bloomberg's Breaking News editor Louise Moon. 7 00:00:22,920 --> 00:00:23,800 Speaker 1: Louise, good morning. 8 00:00:24,000 --> 00:00:28,120 Speaker 3: Let's start with Shell profit missing on lower crude prices, 9 00:00:28,200 --> 00:00:30,760 Speaker 3: weaker oil trading, shares down one point seven percent. 10 00:00:31,360 --> 00:00:33,599 Speaker 4: Indeed, yeah, so this is their fourth quarter results, as 11 00:00:33,640 --> 00:00:37,000 Speaker 4: you say, profits slumping for those two reasons that you mentioned, 12 00:00:37,040 --> 00:00:40,960 Speaker 4: as well as their struggling chemicals business, their chemicals unit. 13 00:00:41,240 --> 00:00:43,640 Speaker 1: So it missed expectations. 14 00:00:44,600 --> 00:00:47,680 Speaker 4: Well, not only did it miss expectations, but those expectations 15 00:00:47,680 --> 00:00:51,720 Speaker 4: had already been lowered. So last month Shell warned of 16 00:00:51,720 --> 00:00:54,840 Speaker 4: what they called significantly lower oil trading and as a result, 17 00:00:54,920 --> 00:00:57,200 Speaker 4: unless lowered their forecasts. And then the results that came 18 00:00:57,200 --> 00:01:00,520 Speaker 4: out today were even lower than that. So shares falling 19 00:01:00,920 --> 00:01:02,880 Speaker 4: on the back of that news. And what it really 20 00:01:02,920 --> 00:01:07,839 Speaker 4: highlights is the big task really that the CEO has. 21 00:01:07,880 --> 00:01:11,600 Speaker 4: He's been trying to close Shells valuation gap with their 22 00:01:11,720 --> 00:01:17,560 Speaker 4: US rivals. Like Chevron and others. That has become even 23 00:01:17,680 --> 00:01:20,839 Speaker 4: harder this year. Those US rivals, their shares have sowed. 24 00:01:21,000 --> 00:01:25,120 Speaker 4: They've had quite strong production in lower cost oil fields, 25 00:01:26,120 --> 00:01:28,840 Speaker 4: and then at the same time Shell is seeing its 26 00:01:28,840 --> 00:01:30,480 Speaker 4: own issues to that valuation gap. 27 00:01:31,000 --> 00:01:33,240 Speaker 1: It's a big task to close that. 28 00:01:33,319 --> 00:01:36,720 Speaker 4: So if you take the shares for example, last year, 29 00:01:36,959 --> 00:01:39,559 Speaker 4: Shell was actually the best performer among the world's top 30 00:01:39,560 --> 00:01:43,240 Speaker 4: five five oil companies. That's in Donna terms. That's now 31 00:01:43,280 --> 00:01:45,479 Speaker 4: been fizzling out, and it's been lagging so far this year. 32 00:01:45,520 --> 00:01:47,960 Speaker 4: And as I say, shares again the further this morning. 33 00:01:48,080 --> 00:01:50,160 Speaker 4: So there's a lot more for the CEO to do. 34 00:01:50,200 --> 00:01:53,080 Speaker 4: He's already been cutting cast he's already been shedding units, 35 00:01:53,120 --> 00:01:56,200 Speaker 4: but a big task if he wants to close that 36 00:01:56,280 --> 00:01:58,360 Speaker 4: gap and boost Shell again. 37 00:01:59,320 --> 00:02:01,680 Speaker 3: That's moved to five cars next. Their share is down 38 00:02:01,760 --> 00:02:04,240 Speaker 3: almost twenty three percent in Stockholm. 39 00:02:04,240 --> 00:02:06,600 Speaker 1: What's going on, Yeah, that's the most on record. 40 00:02:06,640 --> 00:02:08,760 Speaker 4: A similar story in the sense that it's fourth quarter 41 00:02:08,800 --> 00:02:12,160 Speaker 4: results weaker than expected. They've been dealing with quite a 42 00:02:12,240 --> 00:02:17,000 Speaker 4: host of issues, so weak demand, pricing, pressures, tariffs. There's 43 00:02:17,080 --> 00:02:20,079 Speaker 4: also been relatively recently the removal of ev incentives in 44 00:02:20,120 --> 00:02:22,919 Speaker 4: the US A lot of competition in China, obviously from 45 00:02:23,000 --> 00:02:26,200 Speaker 4: China car makers, so that's all hitting sales. The CEO 46 00:02:26,280 --> 00:02:29,600 Speaker 4: described it as, in his words, a very tough market. 47 00:02:30,440 --> 00:02:32,160 Speaker 4: And what makes it even kind of more of a 48 00:02:32,200 --> 00:02:34,960 Speaker 4: setback is that they had had quite a strong third 49 00:02:35,040 --> 00:02:37,799 Speaker 4: quarter and that had kind of lifted confidence that things 50 00:02:37,800 --> 00:02:40,960 Speaker 4: could be looking up and that the CEO's restructure could 51 00:02:40,960 --> 00:02:44,320 Speaker 4: be kind of taking hold. But then the fourth quarters 52 00:02:44,680 --> 00:02:48,680 Speaker 4: has potentially dampened those hopes. So as I say, he's 53 00:02:48,680 --> 00:02:50,799 Speaker 4: been embarking on a bit of a restructuring since last 54 00:02:50,880 --> 00:02:54,160 Speaker 4: year that's included, you know, thousands of jobs being slashed. 55 00:02:55,200 --> 00:02:59,000 Speaker 4: But a bit of a setback today with their fourth quarter. 56 00:02:59,240 --> 00:03:01,239 Speaker 4: But I always do do I like to add a 57 00:03:01,240 --> 00:03:04,720 Speaker 4: bit of light, so there was a small bit. They 58 00:03:04,760 --> 00:03:07,560 Speaker 4: have risen their sales targets and they're saying that they 59 00:03:07,560 --> 00:03:10,160 Speaker 4: will have what they say clearly better cash flow, so 60 00:03:10,200 --> 00:03:13,760 Speaker 4: a bit of positivity ahead as they're expecting demand for 61 00:03:13,880 --> 00:03:14,480 Speaker 4: new models. 62 00:03:14,600 --> 00:03:17,000 Speaker 3: Okay, that's a question of optism for Alouise. Let's talk 63 00:03:17,000 --> 00:03:19,040 Speaker 3: about another share that's on the decline this morning, and 64 00:03:19,040 --> 00:03:20,120 Speaker 3: that's say people are marsk. 65 00:03:20,520 --> 00:03:21,960 Speaker 4: Yeah, it's a bit of a trier of bad news 66 00:03:21,960 --> 00:03:25,240 Speaker 4: say ality, So as you say, Musk, they have announced 67 00:03:25,280 --> 00:03:27,280 Speaker 4: plans to cut job So that's about a thousand jobs, 68 00:03:27,320 --> 00:03:29,640 Speaker 4: so fifteen percent of corporate roles. But in totally if 69 00:03:29,680 --> 00:03:31,799 Speaker 4: you look at their total workforce, it's less than one percent, 70 00:03:32,400 --> 00:03:34,800 Speaker 4: but still one thousand jobs. And they're going to be 71 00:03:35,320 --> 00:03:39,800 Speaker 4: increasing their focus on costs, so predicting annual cost cuts 72 00:03:39,840 --> 00:03:43,320 Speaker 4: of one hundred and eighty million dollars. And this all 73 00:03:43,360 --> 00:03:47,560 Speaker 4: ties in with what they're calling a sharp focus on productivity. Essentially, 74 00:03:47,640 --> 00:03:51,760 Speaker 4: they're trying to protect themselves as Red Sea roots are 75 00:03:51,760 --> 00:03:55,440 Speaker 4: reopening and that is expected to lead to lower rates, 76 00:03:55,480 --> 00:03:59,200 Speaker 4: lower freight rates, they're trying to protect themselves against this. 77 00:03:59,240 --> 00:04:02,120 Speaker 4: The whole industry been benefiting from, you know, the longer 78 00:04:02,160 --> 00:04:04,560 Speaker 4: taking the longer route round the South of Africa takes 79 00:04:04,560 --> 00:04:08,760 Speaker 4: more time and that's coincided with competition lower capacity, So 80 00:04:08,800 --> 00:04:10,640 Speaker 4: the whole industry has been benefiting. But as the Red 81 00:04:10,680 --> 00:04:14,680 Speaker 4: Sea opens again, it's expected to have a bit of 82 00:04:14,680 --> 00:04:18,400 Speaker 4: a hit on rates. So this is Musk dealing with that, 83 00:04:19,080 --> 00:04:21,400 Speaker 4: and shares falling on the back of that quite sharply, 84 00:04:21,760 --> 00:04:24,400 Speaker 4: down about five percent. Last time I looked at Analysa saying, 85 00:04:24,640 --> 00:04:27,200 Speaker 4: you know, a bit of uncertainty ahead, which is weighing 86 00:04:27,200 --> 00:04:27,440 Speaker 4: on that. 87 00:04:27,480 --> 00:04:32,680 Speaker 2: This morning the Stock Movers Report from Bloomberg Radio. Check 88 00:04:32,760 --> 00:04:35,080 Speaker 2: back with us throughout the day for the latest roundup 89 00:04:35,120 --> 00:04:38,040 Speaker 2: of companies making news on Wall Street and for the 90 00:04:38,120 --> 00:04:42,560 Speaker 2: latest market moving headlines. 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