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Let's take a look at some of the stocks on the move today in Europe. I'm to you added by It with Stephen Carroll and we're joined by Bloomberg reporter at Chloe Mallley.
So, Chloe, let's start with Shell.
It's reporting a significant profit beat. How are investors taking the news?
Yeah, so as expected.
Just like every other oil major, Shell has massively benefited, of course, from the surgeon oil and gas prices since the outbreak of the Iran War, and so of course that's been a really big boost of its oil trading business and there has more than an offset the impact of production cuts in the Middle East. But we are actually seeing some weakness in the shares this morning, and there's a few different reasons for that.
One of them is.
That expectations had been very high going into the earning shares have been up very strongly. Another thing as well is that the buyback has actually been cut and really steady sholder returns are a key part of the appeal for those oil companies, so there might be of course
some disappointment there as well. And then finally, another reason why Shell might be a bit weaker as well this morning is that it might be reacting to those oil prices of falling once again after the US is said to have presented a memo that could potentially lead to the reopening of the Strait of Hormus, and so all of those different things might have led to that weakness in the ches this morning, despite actually very strong earnings from Shell, but they were kind of expected.
Okay, So Shelle shares, as you say, lower this morning shares, and Zeman's health and years also down about three point six percent at the moment.
What's happened, Yeah, it's because it's cut its outlook. So it's facing a couple of challenges. Inflation inflationary pressures is one of them, but the main one is actually a changing in pricing policy in China that is quite unfavorable to its business. So it's a policy that is aimed at lowering a healthcare costs in preventing corruption by implementing
a more centralized procurement. But for Seema's health and is, what that's meant is that it has had the impact of really hurting cells and its diagnostics unit, which makes blood testing equipment, and the company did say that the impact would be temporary. It said that the men impact was seen in the first half of this fiscal year and that the adjustment process would take as about four to six quarters. But of course it has had the impact of that. It led it to cutting its outlook
this morning. And it's worth noting as well that the company is considering a cell of the diagnostics business anyway, so we'll be looking at that as well.
Okay, that's Siemens.
And finally Campari is plunging this morning at what's the latest.
Yeah, down massively this morning.
Much weaker than expected results for the first quarter and also very disappointing results of guidance for the year.
Actually, and some of.
This hip to performance was due to a time targeted inventory optimization, that's what it called a targeted inventory optimization in the US, which had an impact of about ten million euros, but a lot of it was just also generally due to really weak consumer sentiment, despite the benefit from an earlier easter, the benefit from the winter Olympics, although maybe people don't drink that much Apple or Sprits
training Olympics. I'm not sure, but it's been really interesting to see what's been happening for those alcohol companies this earning season, given we have the backdrop of inflation of those the uptake of weight loss drugs, of a lower alcohol consumption, but we actually saw Diadro and AB and BEV do better than expected thanks to exposure to markets
outside of the US, of China, of Europe. And it's actually a similar thing for Compari, where the developing markets were doing better and outperforming whilst other markets developed markets actually underwhelmed. So definitely an interesting trend that we can see appear there.
But for Comparis, it's definitely not been a.
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