WEBVTT - HSBC Falls, BP Rises, Smith & Nephew 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>Let's take a look at some of the stocks on

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<v Speaker 3>the move today in Europe. I'm to you Added Bay

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<v Speaker 3>with Stephen Carroll, and we're joined by Bloomberg's Breaking News

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<v Speaker 3>editor Louise Moon. Good morning, Louise. Let's start with HSBC.

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<v Speaker 3>How are they faring after their second quarter earnings beat expectations.

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<v Speaker 1>Yeah, quite strong set of news really, this one inform HSBC. So,

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<v Speaker 1>as you say, second quarter profits beat. That was helped

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<v Speaker 1>partly by their wealth unit, and despite China's been cracking

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<v Speaker 1>down on cross border wealth flows, so that's even despite

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<v Speaker 1>that their wealth unit performed particularly well. They also resume

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<v Speaker 1>share buybacks, so they announced a one billion dollar share buyback,

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<v Speaker 1>quite similar to peers that have already done so so

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<v Speaker 1>Standard Shart to Barclay's they've already done so as well recently.

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<v Speaker 1>And they also raise their cost cutting target, so kind

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<v Speaker 1>of a sweep of quite positive news. They said on

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<v Speaker 1>the back of that, you know, if this strong performance continues,

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<v Speaker 1>they'll consider boosting their boat their bonus pool for bankers

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<v Speaker 1>as well, and a CEO is essentially saying that this

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<v Speaker 1>is showing that all his efforts have been ongoing to

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<v Speaker 1>turn around the bank. This is demonstrating that it's becoming

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<v Speaker 1>a stronger bank, and actually wealth, the wealth unit has

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<v Speaker 1>been at the center of his transformation strategy. So it's

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<v Speaker 1>kind of shown that that's all paying off. In terms

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<v Speaker 1>of the share reaction. Shares initially moved higher, then they

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<v Speaker 1>actually raised their gains to trade slightly lower and lesser,

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<v Speaker 1>saying that.

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<v Speaker 4>These earnings are kind of mixed and or in line.

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<v Speaker 1>So, yeah, maybe not not the most positive reaction given

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<v Speaker 1>the news, but it should be noted that shares have

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<v Speaker 1>actually touched record highs in recent weeks, so potentially it's

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<v Speaker 1>also got to take that into consideration as well.

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<v Speaker 2>Yeah, indeed, and you're right to point out that the

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<v Speaker 2>kind of muted nature, despite the headline figures being so strong,

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<v Speaker 2>kind of the same story or MVP when we look

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<v Speaker 2>at the share price reaction, shares just over one percent.

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<v Speaker 4>Their ownings also very strong. Yeah, profits surging this morning.

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<v Speaker 1>It's this story that we've been seeing played out across

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<v Speaker 1>kind of the major oil companies the market upheaval caused

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<v Speaker 1>by the Middle East conflict. They're profiting from that, so

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<v Speaker 1>similar to Shell for example last week, so BP profit surge.

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<v Speaker 1>They also said they'll reach their debt target sooner than planned.

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<v Speaker 1>As you say, shares rose slightly, but not too much. Essentially,

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<v Speaker 1>investors this is good news, but investors are more focused

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<v Speaker 1>on the long term and in that light, the CEO

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<v Speaker 1>was quite clear in her comments this morning, relatively new

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<v Speaker 1>CEO in the need for further improvement. Obviously, BP has

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<v Speaker 1>been underperforming for years, and they've also been on a

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<v Speaker 1>big turnaround. The CEO is saying they're not making the

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<v Speaker 1>most of their potential. She laid out priorities five priorities

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<v Speaker 1>going forward, really focusing on strengthening the balance sheet, simplifying

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<v Speaker 1>the portfolio, and as part of that, this morning they've

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<v Speaker 1>announced another asset for sale, so they're selling their US

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<v Speaker 1>biogas business. That's less than a week after last week

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<v Speaker 1>they announced they were exiting or planning to exit the

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<v Speaker 1>North Sea so they're still continuing selling off all these assets. So,

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<v Speaker 1>as I say, shares did rise slightly on the back

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<v Speaker 1>of those profits, but there's a lot I had.

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<v Speaker 4>To do to continue that turnaround for BP.

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<v Speaker 3>Yeah, quite a lot of honesty from the CEO of

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<v Speaker 3>BP this morning. But finally we're seeing a drop for

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<v Speaker 3>British medical equipment maker Smith and Nephew.

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<v Speaker 4>Tell us more about the situation.

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<v Speaker 1>Yeah, currently the biggest drag on the FOOTZEO hundred, So

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<v Speaker 1>shares fell about eight percent or the biggest faller, i

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<v Speaker 1>should say, and they've already fallen about eleven percent this year.

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<v Speaker 1>So this is after their first half results weaker then

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<v Speaker 1>expected revenue. They also cut their revenue growth forecast for

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<v Speaker 1>the whole year. All on the back of this is

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<v Speaker 1>ongoing weaker demand for hip and knee implants in the US,

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<v Speaker 1>so generally the market has been moving towards kind of

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<v Speaker 1>newer products, ones that don't contain cement, so unlike the

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<v Speaker 1>ones at Smith. In their few currently offer, they've already

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<v Speaker 1>been trying to kind of cut back costs, pair back

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<v Speaker 1>older products. They are launching a cementless product and they

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<v Speaker 1>say that they therefore expect sales to improve in the

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<v Speaker 1>second half. But basically orthopedics is a key part of

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<v Speaker 1>their sales, but it's been facing challenges and instill a drags.

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<v Speaker 1>They're working to improve that there's also some external pressures

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<v Speaker 1>as well, so they have an activist investor that's been

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<v Speaker 1>building a stake and is now the largest shareholder, so

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<v Speaker 1>shares as they say, for about in morning trading about

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<v Speaker 1>eight percent on that.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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