WEBVTT - GSK Up, Mercedes Soars, Equinor Slips

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some of the stocks on

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<v Speaker 1>the move today in Europe. I'm Stephen Carroll with Lizzie

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<v Speaker 1>Burdon and were joined by Bloomberg reporter Chloe Male. Chloe,

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<v Speaker 1>good morning. Let's start with Pharmaceuticals and GSK raising its

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<v Speaker 1>profit and sales Outlook, what's driving that?

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<v Speaker 3>Well? Yeah, so they upgraded that guidance by quite a

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<v Speaker 3>large margin, and also the quarterly EPs be expectations by

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<v Speaker 3>a long shot. A lot of that was due to sales,

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<v Speaker 3>really strong sales of HIV and immunology medicines. In particular,

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<v Speaker 3>vaccines actually ordered it better than expected, despite some pharmaceutical

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<v Speaker 3>rival saying that there was a lower vaccination raised specifically

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<v Speaker 3>in the US that were weighing a little bit down

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<v Speaker 3>BEFAU FORJSK, seems that that division is still doing quite well.

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<v Speaker 3>This was the last quarter of Emma Warmsley reporting as CEO,

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<v Speaker 3>and this is obviously quite a strong set of results

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<v Speaker 3>to go out on, so I'm sure that she's pretty

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<v Speaker 3>pleased by it. There's new CEO, Luke Mills, will be

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<v Speaker 3>coming in January, and although he has picking up a

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<v Speaker 3>company with very strong growth, there's a few challenges going ahead,

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<v Speaker 3>so there's a lot of There's been a lot of

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<v Speaker 3>investor pressure to update the pipeline of new benefits for

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<v Speaker 3>GSK because a lot of its top sellers, specifically in HIV,

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<v Speaker 3>are facing generic competition. And also GSK hasn't managed to

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<v Speaker 3>strike a deal with the Trump administration on tariff relief

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<v Speaker 3>like AstraZeneca has managed to do. So there's a couple

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<v Speaker 3>of things that the new CEO will have to focus

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<v Speaker 3>on when he comes in. But so far today, at least,

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<v Speaker 3>it seems that investors are reassured from this set of results,

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<v Speaker 3>and they seem quite convinced that GSK can deliver the

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<v Speaker 3>forty pounds in cells that it is targeting by twenty

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<v Speaker 3>thirty one.

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<v Speaker 4>We've also got to talk about Mercedes. It's one of

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<v Speaker 4>the best performing stocks this morning, confident that it's cash

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<v Speaker 4>generation will be strong ahead. Chloe, what are we looking

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<v Speaker 4>out for on the back of the carmaker's earnings.

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<v Speaker 3>Yeah, so it's not super often that we get a

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<v Speaker 3>really positive update like this from a European a carmaker.

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<v Speaker 3>But Mercedes, as you said, is moving much higher this

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<v Speaker 3>morning after confirming its outlook and announcing a two billion

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<v Speaker 3>euroshare buyback. So as you mentioned, that shows that the

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<v Speaker 3>company is confident in that ability to generate cash, and

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<v Speaker 3>that's really helped to reassure investors that the worst might

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<v Speaker 3>actually be behind for a Mercedes. It's the only major

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<v Speaker 3>German automaker that hasn't cut its outlook in recent weeks.

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<v Speaker 3>But it's obviously not completely immune to the challenges that

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<v Speaker 3>are faced by a portion and BMW and others. So

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<v Speaker 3>it's obviously still dealing with the cost of US tariffs,

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<v Speaker 3>which obviously is a key market for large SUVs in particular,

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<v Speaker 3>and China really is the main concern. So sales in

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<v Speaker 3>the country had their worst quarterly performance there since twenty sixteen,

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<v Speaker 3>and that's because demon foiluxury cars is falling and cheaper

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<v Speaker 3>domestic manufacturers like BOAD are gaining more and more market share.

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<v Speaker 3>So it's not out the woods just yet, but that

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<v Speaker 3>is somewhat reassuring today's update from Mercedes.

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<v Speaker 1>And shares up five point seven percent at the moment.

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<v Speaker 1>Let's go to nor Away now softening energy prices hitting

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<v Speaker 1>profits at ecuanor.

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<v Speaker 3>Yeah, not so good news over the energy sector. So

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<v Speaker 3>the third quarter earnings drop because of those weaker oil

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<v Speaker 3>prices and also weaker trading profits. So we knew coming

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<v Speaker 3>into the earning season that oil majors would face pressure

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<v Speaker 3>because oil prices over the third quarter were lower because

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<v Speaker 3>of OPEC ramping up those supplies. There's also the fact

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<v Speaker 3>that volatility and the energy market calmed down a little

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<v Speaker 3>bit as well over to period, which means that there

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<v Speaker 3>were fewer opportunities to profit from really large price swings,

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<v Speaker 3>which explains those weaker trading profits. So we have also

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<v Speaker 3>Shell intert Energies reporting tomorrow, so we'll get a bit

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<v Speaker 3>more detail on how much those companies have been hit

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<v Speaker 3>by those softer oil prices and whether they've been able

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<v Speaker 3>to mitigate that. Of course, the key thing for those

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<v Speaker 3>companies is whether they're able to maintain their shareholder distribution,

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<v Speaker 3>because the ability to withstand those commodity pressures and keep

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<v Speaker 3>up those payouts is really key to their appeal.

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