Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market. Harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today in Europe. I'm to you Added Bay
Speaker 3: with Stephen Carroll, and we're joined by Bloomberg's Breaking News
Speaker 3: editor Louise Moon. Good morning, Louise. Let's start with HSBC.
Speaker 3: How are they faring after their second quarter earnings beat expectations.
Speaker 1: Yeah, quite strong set of news really, this one inform HSBC. So,
Speaker 1: as you say, second quarter profits beat. That was helped
Speaker 1: partly by their wealth unit, and despite China's been cracking
Speaker 1: down on cross border wealth flows, so that's even despite
Speaker 1: that their wealth unit performed particularly well. They also resume
Speaker 1: share buybacks, so they announced a one billion dollar share buyback,
Speaker 1: quite similar to peers that have already done so so
Speaker 1: Standard Shart to Barclay's they've already done so as well recently.
Speaker 1: And they also raise their cost cutting target, so kind
Speaker 1: of a sweep of quite positive news. They said on
Speaker 1: the back of that, you know, if this strong performance continues,
Speaker 1: they'll consider boosting their boat their bonus pool for bankers
Speaker 1: as well, and a CEO is essentially saying that this
Speaker 1: is showing that all his efforts have been ongoing to
Speaker 1: turn around the bank. This is demonstrating that it's becoming
Speaker 1: a stronger bank, and actually wealth, the wealth unit has
Speaker 1: been at the center of his transformation strategy. So it's
Speaker 1: kind of shown that that's all paying off. In terms
Speaker 1: of the share reaction. Shares initially moved higher, then they
Speaker 1: actually raised their gains to trade slightly lower and lesser,
Speaker 1: saying that.
Speaker 4: These earnings are kind of mixed and or in line.
Speaker 1: So, yeah, maybe not not the most positive reaction given
Speaker 1: the news, but it should be noted that shares have
Speaker 1: actually touched record highs in recent weeks, so potentially it's
Speaker 1: also got to take that into consideration as well.
Speaker 2: Yeah, indeed, and you're right to point out that the
Speaker 2: kind of muted nature, despite the headline figures being so strong,
Speaker 2: kind of the same story or MVP when we look
Speaker 2: at the share price reaction, shares just over one percent.
Speaker 4: Their ownings also very strong. Yeah, profits surging this morning.
Speaker 1: It's this story that we've been seeing played out across
Speaker 1: kind of the major oil companies the market upheaval caused
Speaker 1: by the Middle East conflict. They're profiting from that, so
Speaker 1: similar to Shell for example last week, so BP profit surge.
Speaker 1: They also said they'll reach their debt target sooner than planned.
Speaker 1: As you say, shares rose slightly, but not too much. Essentially,
Speaker 1: investors this is good news, but investors are more focused
Speaker 1: on the long term and in that light, the CEO
Speaker 1: was quite clear in her comments this morning, relatively new
Speaker 1: CEO in the need for further improvement. Obviously, BP has
Speaker 1: been underperforming for years, and they've also been on a
Speaker 1: big turnaround. The CEO is saying they're not making the
Speaker 1: most of their potential. She laid out priorities five priorities
Speaker 1: going forward, really focusing on strengthening the balance sheet, simplifying
Speaker 1: the portfolio, and as part of that, this morning they've
Speaker 1: announced another asset for sale, so they're selling their US
Speaker 1: biogas business. That's less than a week after last week
Speaker 1: they announced they were exiting or planning to exit the
Speaker 1: North Sea so they're still continuing selling off all these assets. So,
Speaker 1: as I say, shares did rise slightly on the back
Speaker 1: of those profits, but there's a lot I had.
Speaker 4: To do to continue that turnaround for BP.
Speaker 3: Yeah, quite a lot of honesty from the CEO of
Speaker 3: BP this morning. But finally we're seeing a drop for
Speaker 3: British medical equipment maker Smith and Nephew.
Speaker 4: Tell us more about the situation.
Speaker 1: Yeah, currently the biggest drag on the FOOTZEO hundred, So
Speaker 1: shares fell about eight percent or the biggest faller, i
Speaker 1: should say, and they've already fallen about eleven percent this year.
Speaker 1: So this is after their first half results weaker then
Speaker 1: expected revenue. They also cut their revenue growth forecast for
Speaker 1: the whole year. All on the back of this is
Speaker 1: ongoing weaker demand for hip and knee implants in the US,
Speaker 1: so generally the market has been moving towards kind of
Speaker 1: newer products, ones that don't contain cement, so unlike the
Speaker 1: ones at Smith. In their few currently offer, they've already
Speaker 1: been trying to kind of cut back costs, pair back
Speaker 1: older products. They are launching a cementless product and they
Speaker 1: say that they therefore expect sales to improve in the
Speaker 1: second half. But basically orthopedics is a key part of
Speaker 1: their sales, but it's been facing challenges and instill a drags.
Speaker 1: They're working to improve that there's also some external pressures
Speaker 1: as well, so they have an activist investor that's been
Speaker 1: building a stake and is now the largest shareholder, so
Speaker 1: shares as they say, for about in morning trading about
Speaker 1: eight percent on that.
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