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The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
Now, let's take a look at some of the stocks on the move today in Europe.
I'm Caroline Hepgam. I'm joined by.
Bloomberg reportacloone Malay. Lots of earnings to think about today. Let's start with BNP Pariba. We heard from the CFO we saw a jump in profits and then also raising some midterm targets for them.
Yeah. Absolutely quite positive results across the board for BNP Barrier bu so as you said, they be expectations and then they also raised some targets for profitability. This is actually the second time in just a few months in the CEO has set more ambitious targets and part of why he did it last time and why he's done it again today was to reassure investors that all would be well despite some litigation risks that are facing the bank.
So in October, US court rule that BNP would need to compensate to three foremost student civilians who accused the bank of helping to finance students dictatorship which had committed human rights abuses, and so that meant that BNP could face some quite high settlements.
But right now this is still a big unknown.
BNP is appealing the ruling in the coming days, it said, and we'll have to see what kind of comes out of that.
But in the meantime, the really.
Good results, those raised targets, the fact that the bank is also revamping its French business to match that profitability for the rest of the business. That's what investors decided to focus on today and so we have seen the shares jump quite quite strongly this morning. Yeah.
Absolutely, I mean the concern is that that litigation could be in the billions because of the settlement with those three plaintiffs, and that might apply to many thousands of other people. So yes, they are also appealing, as you say, in the process of that, right. So that's BNP pariber on their results and litigation risks too. What about Ryan mettal We focused the great deal on defense names, haven't we.
Yeah, we have, we have and today it is down this morning, Ryandmatti is down because of a pre closed call with analysts which implied that guidance for twenty twenty six was maybe a little bit below expectation. So there should still be growth, but it looks like it might be a little more muted than investors at a hope.
So JP Morgan Analysts, for example, said that the ramp up in earnings and sales growth appears to be a little more challenging than they had previously thought, and so the messaging from Ryan Mettal on things like orders and cash flow was actually seen as reassuring, but maybe a little bit less so when it comes to the earnings growth.
So definitely, Ryemettel is in good shape. But when we have such lofty expectations for a company, you know, the company moderating some of those expectations always creates a bit of a negative reaction for investors, and we have seen that happening today.
We have got four year results actually in March for Ryan Mitzal's.
We have to wear a little bit longer until we get more detail on their outlook.
Okay, shipping in musk it's cutting jobs.
Why yeah, it's cutting jobs.
It's also trying to kind of get costs way down this year because the outlook is not looking great. So the reason for that is because the shipping companies as overall are set for quite difficult twenty twenty six because freight rates are coming down, and that is because there's
an existing kind of mismatch between supply and demand. There's too many ships, too little need for them, because partly of trade tensions, and that situation will get even worse because the Red Sea shipping route is set to be reopening, and so the container liner industry had really benefited from the extra time that it took for ships to sell around the tip of Africa rather than through the Red Sea, and that had lowered the capacity the vessel capacity worldwide
by as much as eight percent. But now Musk has made a couple of successful passages through the Red Sea, it looks like that route is set for reopening this year, and so that means that ships were have to go the long way around, and so there will be more vessel capacity, means that they'll be able to command less high prices and rates will be coming down, and rates will already on a downward trajectory, they'll be coming down even further, and so that means quite a lot of
pressure on earnings for those shipping companies, and so Musk is trying to tell investors now to moderate their expectations a little bit for this year.
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