1
00:00:02,520 --> 00:00:07,360
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:08,560 --> 00:00:12,440
Speaker 2: The Stock Movers report, your roundup of companies making moves

3
00:00:12,480 --> 00:00:15,880
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.

4
00:00:16,680 --> 00:00:18,160
Speaker 3: Let's have a look at some stocks on the move

5
00:00:18,200 --> 00:00:21,400
Speaker 3: today here in Europe. I'm Caroline Hepcat alongside Jamana Bassetti,

6
00:00:21,640 --> 00:00:25,799
Speaker 3: were joined by Bloomberg's equities reporter klue In Malay. Good morning, Chloe,

7
00:00:26,040 --> 00:00:30,920
Speaker 3: So President Trump demanding drug companies cut US prices or

8
00:00:30,960 --> 00:00:34,800
Speaker 3: prices for US buyers. What does it mean for stocks

9
00:00:34,840 --> 00:00:38,000
Speaker 3: in Europe? Big drops for nover Nordisk GSK.

10
00:00:38,320 --> 00:00:40,720
Speaker 1: Yeah. Absolutely, We've seen a lot of weakness in the

11
00:00:40,760 --> 00:00:44,320
Speaker 1: European pharma sectors, as you mentioned over Nordisk GSK. Also

12
00:00:44,320 --> 00:00:48,120
Speaker 1: AstraZeneca and Sanavie were also hit this morning. So Trump

13
00:00:48,159 --> 00:00:50,960
Speaker 1: sent send those letters to those drug makers asking that

14
00:00:51,159 --> 00:00:53,960
Speaker 1: then cut prices for existing drugs, but that they also

15
00:00:54,360 --> 00:00:57,320
Speaker 1: charged the US what other countries pay for new future

16
00:00:57,400 --> 00:01:00,920
Speaker 1: drugs in the future. So he gave sixty days to

17
00:01:01,080 --> 00:01:04,240
Speaker 1: voluntarily comply, an he threatened to deploy every tool in

18
00:01:04,280 --> 00:01:06,840
Speaker 1: our arsenal to make them comply, which is obviously quite

19
00:01:06,920 --> 00:01:10,720
Speaker 1: quite threatening. We won't get a reaction from Nevada's in Switzerland,

20
00:01:10,760 --> 00:01:14,000
Speaker 1: given that the Swiss market is close today. But Nevada's

21
00:01:14,040 --> 00:01:16,080
Speaker 1: actually faces a bit of a double whammy because it

22
00:01:16,120 --> 00:01:18,280
Speaker 1: faces of course that a letter, but then also the

23
00:01:18,360 --> 00:01:21,800
Speaker 1: thirty nine percent tariff that we've seen in posts on Switzerland.

24
00:01:22,640 --> 00:01:25,759
Speaker 1: Pharmaceutical companies across Europe have already kind of been bending

25
00:01:25,800 --> 00:01:29,120
Speaker 1: over backwards to try and win Trump's favor. They've announced,

26
00:01:29,120 --> 00:01:32,600
Speaker 1: you know, major investments like Ashra Zeneca for manufacturing and

27
00:01:32,680 --> 00:01:35,440
Speaker 1: drug development in the US. So we'll see what they

28
00:01:35,480 --> 00:01:37,520
Speaker 1: do to try and mitigate that and respond to this,

29
00:01:37,600 --> 00:01:38,800
Speaker 1: to this latest development.

30
00:01:39,440 --> 00:01:43,240
Speaker 2: Yeah, let's switch over to the air aerospace sector. Airline

31
00:01:43,280 --> 00:01:46,559
Speaker 2: operator IG posting strong results for the second quarter.

32
00:01:47,400 --> 00:01:51,120
Speaker 1: The reaction, Yeah, so IG is the parent of British Airways,

33
00:01:51,120 --> 00:01:54,160
Speaker 1: so shares really sold this morning thanks to really strong

34
00:01:54,160 --> 00:01:56,560
Speaker 1: results that we have both profit and sales ahead of

35
00:01:56,680 --> 00:01:59,960
Speaker 1: analyst expectations. We should be mindful of maybe some chat

36
00:02:00,560 --> 00:02:03,000
Speaker 1: in the second half of the year. So IG actually

37
00:02:03,080 --> 00:02:06,480
Speaker 1: also cut its projection for capacity growth, so it said

38
00:02:06,480 --> 00:02:11,200
Speaker 1: it faces challenges with engine reliability and also air traffic control.

39
00:02:11,800 --> 00:02:14,120
Speaker 1: The engine issues that is referring to are related to

40
00:02:14,560 --> 00:02:18,160
Speaker 1: it's Boeing seven eight to eleven Dreamliner models, which have

41
00:02:18,520 --> 00:02:22,080
Speaker 1: actually some of them have been grounded for maintenance. But

42
00:02:22,160 --> 00:02:25,200
Speaker 1: it did say that strong customer demand was continuing, that

43
00:02:25,320 --> 00:02:28,400
Speaker 1: it sees Frea cash flow increasing, margins increasing, So the

44
00:02:28,480 --> 00:02:30,920
Speaker 1: market has been really focused on that and the results

45
00:02:31,040 --> 00:02:33,480
Speaker 1: rather than those engine issues, which it thinks that it

46
00:02:33,520 --> 00:02:35,800
Speaker 1: can kind of move past and fixed quick, you know,

47
00:02:35,840 --> 00:02:36,799
Speaker 1: in the next few months.

48
00:02:37,440 --> 00:02:40,920
Speaker 3: Okay, so that's the airline operator IAG turning to Italy

49
00:02:40,960 --> 00:02:42,800
Speaker 3: and Campari shares gaining.

50
00:02:42,880 --> 00:02:47,240
Speaker 1: Why so, Campari the profit in sales be estimates and

51
00:02:47,280 --> 00:02:50,960
Speaker 1: it also delivered better than expected profitability. We saw, you know,

52
00:02:51,000 --> 00:02:53,160
Speaker 1: across that drink space. We saw for example, ab in

53
00:02:53,240 --> 00:02:56,120
Speaker 1: bev yesterday and you know, apparently people don't drink and

54
00:02:56,160 --> 00:02:58,240
Speaker 1: of beer, but it seems that for Compari, people are

55
00:02:58,280 --> 00:03:01,280
Speaker 1: drinking apple or sprits and it's it's doing quite well.

56
00:03:01,360 --> 00:03:04,240
Speaker 1: Because of that, it kept its guidance unchanged, but some

57
00:03:04,320 --> 00:03:07,639
Speaker 1: analysts are saying that the unchanged outlook actually looks a

58
00:03:07,639 --> 00:03:11,280
Speaker 1: bit conservative, especially that there's quite an encouraging start with

59
00:03:11,400 --> 00:03:14,840
Speaker 1: the key summer season. One thing to note is that

60
00:03:14,880 --> 00:03:17,880
Speaker 1: Compari actually increased its marketing spend, which is kind of

61
00:03:17,880 --> 00:03:21,760
Speaker 1: evidence that it is very, very positive and very confident

62
00:03:21,840 --> 00:03:25,320
Speaker 1: about that third quarter. Of course, the tariff impact on

63
00:03:25,360 --> 00:03:29,360
Speaker 1: consumer spending is still there. That Castill impacts names across

64
00:03:29,400 --> 00:03:32,840
Speaker 1: that consumer sector, which maybe explains that reluctance to increase

65
00:03:32,919 --> 00:03:34,279
Speaker 1: guidance at this stage.

66
00:03:35,760 --> 00:03:39,800
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with

67
00:03:39,880 --> 00:03:42,440
Speaker 2: us throughout the day for the latest roundup of companies

68
00:03:42,520 --> 00:03:45,640
Speaker 2: making news on Wall Street and for the latest market

69
00:03:45,640 --> 00:03:50,120
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

70
00:03:50,200 --> 00:03:53,720
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with

71
00:03:53,800 --> 00:03:55,280
Speaker 2: the Bloomberg Business app.