WEBVTT - Shell Dips, Volvo Car Down, Maersk Drops

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, Harnessing the power of Bloomberg Data.

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<v Speaker 3>Time out to take a look at some stocks on

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<v Speaker 3>the move in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moon.

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<v Speaker 1>Louise, good morning.

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<v Speaker 3>Let's start with Shell profit missing on lower crude prices,

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<v Speaker 3>weaker oil trading, shares down one point seven percent.

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<v Speaker 4>Indeed, yeah, so this is their fourth quarter results, as

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<v Speaker 4>you say, profits slumping for those two reasons that you mentioned,

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<v Speaker 4>as well as their struggling chemicals business, their chemicals unit.

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<v Speaker 1>So it missed expectations.

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<v Speaker 4>Well, not only did it miss expectations, but those expectations

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<v Speaker 4>had already been lowered. So last month Shell warned of

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<v Speaker 4>what they called significantly lower oil trading and as a result,

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<v Speaker 4>unless lowered their forecasts. And then the results that came

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<v Speaker 4>out today were even lower than that. So shares falling

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<v Speaker 4>on the back of that news. And what it really

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<v Speaker 4>highlights is the big task really that the CEO has.

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<v Speaker 4>He's been trying to close Shells valuation gap with their

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<v Speaker 4>US rivals. Like Chevron and others. That has become even

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<v Speaker 4>harder this year. Those US rivals, their shares have sowed.

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<v Speaker 4>They've had quite strong production in lower cost oil fields,

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<v Speaker 4>and then at the same time Shell is seeing its

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<v Speaker 4>own issues to that valuation gap.

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<v Speaker 1>It's a big task to close that.

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<v Speaker 4>So if you take the shares for example, last year,

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<v Speaker 4>Shell was actually the best performer among the world's top

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<v Speaker 4>five five oil companies. That's in Donna terms. That's now

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<v Speaker 4>been fizzling out, and it's been lagging so far this year.

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<v Speaker 4>And as I say, shares again the further this morning.

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<v Speaker 4>So there's a lot more for the CEO to do.

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<v Speaker 4>He's already been cutting cast he's already been shedding units,

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<v Speaker 4>but a big task if he wants to close that

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<v Speaker 4>gap and boost Shell again.

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<v Speaker 3>That's moved to five cars next. Their share is down

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<v Speaker 3>almost twenty three percent in Stockholm.

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<v Speaker 1>What's going on, Yeah, that's the most on record.

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<v Speaker 4>A similar story in the sense that it's fourth quarter

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<v Speaker 4>results weaker than expected. They've been dealing with quite a

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<v Speaker 4>host of issues, so weak demand, pricing, pressures, tariffs. There's

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<v Speaker 4>also been relatively recently the removal of ev incentives in

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<v Speaker 4>the US A lot of competition in China, obviously from

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<v Speaker 4>China car makers, so that's all hitting sales. The CEO

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<v Speaker 4>described it as, in his words, a very tough market.

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<v Speaker 4>And what makes it even kind of more of a

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<v Speaker 4>setback is that they had had quite a strong third

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<v Speaker 4>quarter and that had kind of lifted confidence that things

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<v Speaker 4>could be looking up and that the CEO's restructure could

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<v Speaker 4>be kind of taking hold. But then the fourth quarters

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<v Speaker 4>has potentially dampened those hopes. So as I say, he's

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<v Speaker 4>been embarking on a bit of a restructuring since last

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<v Speaker 4>year that's included, you know, thousands of jobs being slashed.

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<v Speaker 4>But a bit of a setback today with their fourth quarter.

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<v Speaker 4>But I always do do I like to add a

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<v Speaker 4>bit of light, so there was a small bit. They

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<v Speaker 4>have risen their sales targets and they're saying that they

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<v Speaker 4>will have what they say clearly better cash flow, so

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<v Speaker 4>a bit of positivity ahead as they're expecting demand for

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<v Speaker 4>new models.

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<v Speaker 3>Okay, that's a question of optism for Alouise. Let's talk

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<v Speaker 3>about another share that's on the decline this morning, and

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<v Speaker 3>that's say people are marsk.

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<v Speaker 4>Yeah, it's a bit of a trier of bad news

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<v Speaker 4>say ality, So as you say, Musk, they have announced

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<v Speaker 4>plans to cut job So that's about a thousand jobs,

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<v Speaker 4>so fifteen percent of corporate roles. But in totally if

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<v Speaker 4>you look at their total workforce, it's less than one percent,

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<v Speaker 4>but still one thousand jobs. And they're going to be

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<v Speaker 4>increasing their focus on costs, so predicting annual cost cuts

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<v Speaker 4>of one hundred and eighty million dollars. And this all

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<v Speaker 4>ties in with what they're calling a sharp focus on productivity. Essentially,

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<v Speaker 4>they're trying to protect themselves as Red Sea roots are

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<v Speaker 4>reopening and that is expected to lead to lower rates,

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<v Speaker 4>lower freight rates, they're trying to protect themselves against this.

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<v Speaker 4>The whole industry been benefiting from, you know, the longer

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<v Speaker 4>taking the longer route round the South of Africa takes

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<v Speaker 4>more time and that's coincided with competition lower capacity, So

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<v Speaker 4>the whole industry has been benefiting. But as the Red

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<v Speaker 4>Sea opens again, it's expected to have a bit of

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<v Speaker 4>a hit on rates. So this is Musk dealing with that,

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<v Speaker 4>and shares falling on the back of that quite sharply,

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<v Speaker 4>down about five percent. Last time I looked at Analysa saying,

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<v Speaker 4>you know, a bit of uncertainty ahead, which is weighing

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<v Speaker 4>on that.

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