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But let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Lizzie Burton and we're joined by Bloomberg reporter Chloe made Chloe. Good morning. We're going to start with HSBC, the worst performing share in the stock six hundred at the moment, down over five percent.
Why is that?
Yeah, quite a lot of weakness from HSBC this morning after quite disappointing set of results. So the performance was really weighed down by a couple of big charges, So a four hundred million dollar charge related to a fraud related exposure in the UK, and then also three hundred million dollar charge were tied to the deteriorating economic outlook because of what's happening in the Middle East. So there
were some stronger parts in the results. We had a solid performance in the wealth segment for example, there was an upgrade within their interest income guidance as well, but the charges were very much top of mind for investors and it's of course adding to worries about the future of that region as a key growth market for banks. You know, HSBC had planned for major wealth and corporate banking expansion in the Middle East and now that is
of course at risk. And then it also adds to worries more generally about what the regional tensions will mean for the global economy the longer that the conflict goes on. And so it's obviously not the first bank this earning season to be taking those provisions and those charges into warn about the impact. So there's certainly a lot of caution around that banking sector, and AHSBC really the latest to kind of mention.
That, well, yeah, diving into that sector.
You've also had UniCredit reporting results today.
You've also had that recent takeover related headline, all of all the comments bank stuff.
What's been the reaction.
Yeah, unicreda is having a better day than HSBC for sure. So profit hit a record that was boosted by fee income in particular, which is really strong, and it also upgraded its four year targets. And as you mentioned, this of course comes at quite a pivotal moment for UniCredit because it is preparing to submit it's takeover bid. Excuse me, for Commas Bank, and so the bid is structor to lift Unicredits holding just above the thirty percent threshold that
would trigger a mandatory offer. And so the plan A values Commas Bank at about seven percent below my market value actually, so that might mean that investors might be
reluctant to tender those shares. It's also worth noting, of course, that Commas Bank, as well as the German government, which is a major shareholder, are both very much opposed to a takeover and have been opposed to it for the entire time that UniCredit has been making that pursuit, and so it's not a done deal at all, but at least the results is suggesting that UniCredit is already very strong on its own as we wait for more details on that takeover bid.
Okay, so that's on UniCredit and turning to a bit of phiz in ab Invert's latest results. Their shares over six percent.
Yeah, it's pretty could serve results from AB and BEV Volumes increased, not majorly, but they did increase compared to expectations of a decline. It also beat across a lot of different metrics, so a good set of results, and that was driven primarily by really strong beer demand in Mexico, Peru, and Colombia, and so that managed to offset some of the weakness that we saw in the US and China.
And it's also really benefiting from the diversification of its portfolio beyond just beers, so it has now a lot of kind of what it calls ready to drink beverages, so things like canned cocktails, and it's also making quite a lot of inroads into non alcoholic beers as well. So from the big three beer companies we've got in Europe, so Heineken, Karsberg, and ab in Bev, ab in Bev seems to be the most resilient one. Hankan and Carsburg have warned about the conflict in the Middle East, the
impact on energy costs, on raw materials costs. They've also been really hit by the weakness from a declining alcohol consumption globally. But ab in Bev has seemed to be much more resilient because of that diversification, but also because it is really benefiting from that exposure to Latin America, where it seems that people are still very much keen for a.
Little bit of his The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.