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Let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Caroline Hepker, and we're joined by Bloomberg reporter Chloe Melee. Chloe, good morning. Let's start with oil companies. As you might imagine on a day when we've got a big jump in oil prices, Equinor in Norway reporting, what did we learn from them?
Yeah, so there's a couple of things happening with Equinor. There's the company specific and then there's the geopolitical context that you just alluded to. So the company specific update is that it is planning to split its marketing, midstream and processing unit into So what that essentially means is that it will allow it to really strengthen its trading business. So that is the first thing that investors are thinking about this morning, and that is driving those shares.
And then, of course, also more.
Importantly, perhaps the whole sector, really the whole oil sector is up because of that geopolitical context of those oil prices rising, So oil is rallying very strongly after attacks on major energy facilities throughout the Middle East, and that really raises concerns about what the impact on global energy supplies might be. And so of course when oil rallies in that way, we are seeing shares and oil companies
following suit. Of course, so we have equanor, but also the likes of BP, nest Any all stronger, all in the green this morning, and oil has risen about fifty percent since.
The start of the war. It's unclear how much further it will go.
This is obviously band news for customers for some companies, but at least for oil companies, it is good news in that sense.
Yes, in terms of the miners though, it's quite different. Gold slumping this morning, copper, zinc, aluminium. Why are the miners having such a bad day?
Yeah, well, I mean everyone is having a bad day in the way exact. For energy.
The socks across a lot of different sectors are down because of that surge and oil and gas prices. It creates a lot of concerns around inflation, around the impact on economic growth, and one of those sectors that's being hit at the moment is precious metals. So we'd seen gold and silver really benefiting from geopolitical tensions as the beginning of the year because there was this whole theme
of a rush to save haven assets. But now there's a rebound in the US dollar, there's those higher oil prices that we've mentioned, those inflation concerns and all of that have triggered a pullback in some of those prices.
And so what we're seeing today is precious metals prices retreating and as a result, hitting those share prices of the likes of Fresno and Anglo American and all of those big miners that has seen actually of really good performance at the beginning of the year, and so basic resources is one of the worst performing sectors at this morning, and Fresno in particular, it's done quite a bit okay.
And we're also looking at the German chemicals company. This is Lengths and the latest from them.
Yeah, chemical sector is a tough one to be in right now.
There's essentially a lot of over capacity and not enough demand and that is really dragging down those prices. And Anxis is a company that makes things like plastics and rubber and it's one of the victims of that, and profit fell massively from a year earlier, and it seems
that things really aren't getting any better anytime soon. So it announced today a new cost cutting program that is targeting about one hundred million euros in annual savings by twenty twenty eight, and part of that is going to
be getting rid of five hundred and fifty jobs. And you know, some of those companies in the chemical sector will start seeing some benefits at some point of the big infrastructure investments that our due to be happening in Germany, but LANs has said that that will not be seen before the second half of the year, so there's a little bit to wait until some of those benefits come through.
And then a big concern is that a lot of those companies in that chemicals industry have been struggling with high energy prices, and as we just mentioned earlier, those are rising very sharply at the moment, so that'll be a continuing challenge.
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