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Speaker 2: The Stock Movers Report, your roundup of companies making moves
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Speaker 1: Let's take a look at some of the stocks on
Speaker 1: the move today in Europe. I'm Stephen Carroll with Lizzie
Speaker 1: Burdon and were joined by Bloomberg reporter Chloe Male. Chloe,
Speaker 1: good morning. Let's start with Pharmaceuticals and GSK raising its
Speaker 1: profit and sales Outlook, what's driving that?
Speaker 3: Well? Yeah, so they upgraded that guidance by quite a
Speaker 3: large margin, and also the quarterly EPs be expectations by
Speaker 3: a long shot. A lot of that was due to sales,
Speaker 3: really strong sales of HIV and immunology medicines. In particular,
Speaker 3: vaccines actually ordered it better than expected, despite some pharmaceutical
Speaker 3: rival saying that there was a lower vaccination raised specifically
Speaker 3: in the US that were weighing a little bit down
Speaker 3: BEFAU FORJSK, seems that that division is still doing quite well.
Speaker 3: This was the last quarter of Emma Warmsley reporting as CEO,
Speaker 3: and this is obviously quite a strong set of results
Speaker 3: to go out on, so I'm sure that she's pretty
Speaker 3: pleased by it. There's new CEO, Luke Mills, will be
Speaker 3: coming in January, and although he has picking up a
Speaker 3: company with very strong growth, there's a few challenges going ahead,
Speaker 3: so there's a lot of There's been a lot of
Speaker 3: investor pressure to update the pipeline of new benefits for
Speaker 3: GSK because a lot of its top sellers, specifically in HIV,
Speaker 3: are facing generic competition. And also GSK hasn't managed to
Speaker 3: strike a deal with the Trump administration on tariff relief
Speaker 3: like AstraZeneca has managed to do. So there's a couple
Speaker 3: of things that the new CEO will have to focus
Speaker 3: on when he comes in. But so far today, at least,
Speaker 3: it seems that investors are reassured from this set of results,
Speaker 3: and they seem quite convinced that GSK can deliver the
Speaker 3: forty pounds in cells that it is targeting by twenty
Speaker 3: thirty one.
Speaker 4: We've also got to talk about Mercedes. It's one of
Speaker 4: the best performing stocks this morning, confident that it's cash
Speaker 4: generation will be strong ahead. Chloe, what are we looking
Speaker 4: out for on the back of the carmaker's earnings.
Speaker 3: Yeah, so it's not super often that we get a
Speaker 3: really positive update like this from a European a carmaker.
Speaker 3: But Mercedes, as you said, is moving much higher this
Speaker 3: morning after confirming its outlook and announcing a two billion
Speaker 3: euroshare buyback. So as you mentioned, that shows that the
Speaker 3: company is confident in that ability to generate cash, and
Speaker 3: that's really helped to reassure investors that the worst might
Speaker 3: actually be behind for a Mercedes. It's the only major
Speaker 3: German automaker that hasn't cut its outlook in recent weeks.
Speaker 3: But it's obviously not completely immune to the challenges that
Speaker 3: are faced by a portion and BMW and others. So
Speaker 3: it's obviously still dealing with the cost of US tariffs,
Speaker 3: which obviously is a key market for large SUVs in particular,
Speaker 3: and China really is the main concern. So sales in
Speaker 3: the country had their worst quarterly performance there since twenty sixteen,
Speaker 3: and that's because demon foiluxury cars is falling and cheaper
Speaker 3: domestic manufacturers like BOAD are gaining more and more market share.
Speaker 3: So it's not out the woods just yet, but that
Speaker 3: is somewhat reassuring today's update from Mercedes.
Speaker 1: And shares up five point seven percent at the moment.
Speaker 1: Let's go to nor Away now softening energy prices hitting
Speaker 1: profits at ecuanor.
Speaker 3: Yeah, not so good news over the energy sector. So
Speaker 3: the third quarter earnings drop because of those weaker oil
Speaker 3: prices and also weaker trading profits. So we knew coming
Speaker 3: into the earning season that oil majors would face pressure
Speaker 3: because oil prices over the third quarter were lower because
Speaker 3: of OPEC ramping up those supplies. There's also the fact
Speaker 3: that volatility and the energy market calmed down a little
Speaker 3: bit as well over to period, which means that there
Speaker 3: were fewer opportunities to profit from really large price swings,
Speaker 3: which explains those weaker trading profits. So we have also
Speaker 3: Shell intert Energies reporting tomorrow, so we'll get a bit
Speaker 3: more detail on how much those companies have been hit
Speaker 3: by those softer oil prices and whether they've been able
Speaker 3: to mitigate that. Of course, the key thing for those
Speaker 3: companies is whether they're able to maintain their shareholder distribution,
Speaker 3: because the ability to withstand those commodity pressures and keep
Speaker 3: up those payouts is really key to their appeal.
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