1 00:00:02,520 --> 00:00:07,440 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 00:00:16,480 --> 00:00:18,160 Speaker 3: Now let's have a look at some of the individual 5 00:00:18,239 --> 00:00:20,439 Speaker 3: stocks on the move today here in Europe. I'm Caroline 6 00:00:20,480 --> 00:00:23,840 Speaker 3: Hepget and I'm joined by Bloomberg reporta Chloe Malay. So 7 00:00:23,880 --> 00:00:26,280 Speaker 3: we have a major route I think you have to 8 00:00:26,280 --> 00:00:29,960 Speaker 3: call it that for Nova Nordisks Shares. Why Yeah, and 9 00:00:30,000 --> 00:00:32,680 Speaker 3: a very very tough morning for Novo. So the reason 10 00:00:32,680 --> 00:00:35,080 Speaker 3: why is because it expects a very steep drop in 11 00:00:35,159 --> 00:00:37,800 Speaker 3: sales in twenty twenty six, and that is because it's 12 00:00:37,800 --> 00:00:40,520 Speaker 3: facing a lot of pricing pressure. So there's two main 13 00:00:40,560 --> 00:00:41,600 Speaker 3: reasons behind that. 14 00:00:41,640 --> 00:00:44,320 Speaker 1: There's, first of all, pricing pressure coming from the Trump 15 00:00:44,320 --> 00:00:48,280 Speaker 1: Administration's efforts to cap the price of drugs in the US. 16 00:00:48,560 --> 00:00:51,559 Speaker 1: And then there's also pricing pressure coming from a growing 17 00:00:51,600 --> 00:00:54,400 Speaker 1: price war between all of the companies that operate in 18 00:00:54,440 --> 00:00:57,960 Speaker 1: that obesity space. So that includes of course Nova's biggest rival, 19 00:00:58,000 --> 00:01:00,880 Speaker 1: Elay Lilly, but then also all of the smaller companies 20 00:01:00,920 --> 00:01:04,559 Speaker 1: that are selling those cheaper copycat versions of weight loss drugs. 21 00:01:04,560 --> 00:01:06,679 Speaker 1: So there's a lot of pricing pressure for Nova, and 22 00:01:06,720 --> 00:01:09,759 Speaker 1: it's really feeling that hit. And twenty twenty five had 23 00:01:09,800 --> 00:01:13,240 Speaker 1: already been a very difficult year for the company. There 24 00:01:13,240 --> 00:01:16,640 Speaker 1: had been leadership changes that had really rattled investors quite 25 00:01:16,640 --> 00:01:19,600 Speaker 1: a bit. Of course, that competition that I've just mentioned, 26 00:01:19,640 --> 00:01:22,640 Speaker 1: and also quite a few setbacks in terms of drug trials, 27 00:01:22,680 --> 00:01:25,600 Speaker 1: and so the results today were really an opportunity for 28 00:01:25,720 --> 00:01:28,640 Speaker 1: Nova to reassure the market, but instead they've painted a 29 00:01:28,760 --> 00:01:31,920 Speaker 1: very bleak picture of what can be expected for this year. 30 00:01:32,360 --> 00:01:35,679 Speaker 1: One bright spot maybe the obesity bill that Nova is launched. 31 00:01:35,680 --> 00:01:38,600 Speaker 1: Apparently that has been quite a strong launch, so we'll 32 00:01:38,600 --> 00:01:40,800 Speaker 1: see if that's actually enough to offset all of those 33 00:01:40,840 --> 00:01:41,640 Speaker 1: other challenges. 34 00:01:41,840 --> 00:01:45,200 Speaker 3: Yeah, I read in the Dow Jones apparently there are 35 00:01:45,200 --> 00:01:47,160 Speaker 3: one hundred and seventy thousand people on that tree and 36 00:01:47,200 --> 00:01:51,200 Speaker 3: in the first four weeks. So yeah, that report of 37 00:01:51,560 --> 00:01:54,320 Speaker 3: the pill, you know, being taken up swiftly. But as 38 00:01:54,320 --> 00:01:56,960 Speaker 3: you say, pricing pressures, I think you've made that really 39 00:01:57,000 --> 00:01:59,840 Speaker 3: clear in lots of different areas for Nova nor Disk. 40 00:02:00,000 --> 00:02:03,640 Speaker 3: Bloomberg's been speaking to the CEO about it. Also. What 41 00:02:03,760 --> 00:02:07,520 Speaker 3: about the bank earnings though, take us through Santander, a 42 00:02:07,560 --> 00:02:10,440 Speaker 3: big deal for the business is they've really head to 43 00:02:10,480 --> 00:02:11,320 Speaker 3: North America. 44 00:02:11,400 --> 00:02:13,560 Speaker 1: Yeah, yeah, they really do. So they are buying a 45 00:02:13,600 --> 00:02:16,600 Speaker 1: Webster Financial in a twelve billion dollar deal, so really 46 00:02:16,840 --> 00:02:20,240 Speaker 1: really big acquisition. And so this marks an expansion in 47 00:02:20,280 --> 00:02:22,720 Speaker 1: the US for Santander, and that is part of the 48 00:02:22,760 --> 00:02:26,640 Speaker 1: company's broader strategy of wanting to expand in growth markets 49 00:02:26,680 --> 00:02:29,200 Speaker 1: and maybe cutting back a little bit more from the 50 00:02:29,240 --> 00:02:32,000 Speaker 1: exposure that it has to Europe and shows. We're actually 51 00:02:32,080 --> 00:02:34,639 Speaker 1: down this morning with Alis saying that the deal might 52 00:02:34,720 --> 00:02:37,800 Speaker 1: not be super well received because shareholders would have maybe 53 00:02:37,840 --> 00:02:41,160 Speaker 1: preferred more shareholder returns rather than rather than the deal. 54 00:02:41,600 --> 00:02:44,960 Speaker 1: And there's also some questions about how tricky the integration 55 00:02:45,120 --> 00:02:48,000 Speaker 1: is going to be for those two companies, given that 56 00:02:48,240 --> 00:02:51,480 Speaker 1: Santander has to integrate both Webster and TSB as well, 57 00:02:51,480 --> 00:02:53,920 Speaker 1: which had brought back in July at the same time. 58 00:02:54,040 --> 00:02:57,880 Speaker 1: So any successful integration will be really key and perhaps 59 00:02:57,960 --> 00:03:01,280 Speaker 1: once that transition period is over, will be able to 60 00:03:01,280 --> 00:03:04,240 Speaker 1: see the benefits a little more clearly. It's quite an 61 00:03:04,240 --> 00:03:06,760 Speaker 1: interesting move for Santandier because it's now one of the 62 00:03:06,880 --> 00:03:09,840 Speaker 1: very few European banks to gain that foothold and want 63 00:03:09,880 --> 00:03:12,440 Speaker 1: to grow that foothold in the US. You know, BBVA 64 00:03:12,840 --> 00:03:16,560 Speaker 1: sold as US operations, BNP exited the US retail market, 65 00:03:16,680 --> 00:03:20,960 Speaker 1: so it's definitely kind of doing something that is kind 66 00:03:20,960 --> 00:03:22,160 Speaker 1: of against the grain a little bit. 67 00:03:23,040 --> 00:03:26,799 Speaker 3: Yes, that's interesting. So that on banks. Then what about 68 00:03:26,960 --> 00:03:30,920 Speaker 3: the continuation of the AI disruption trade because it is 69 00:03:30,960 --> 00:03:34,200 Speaker 3: affecting a number of names, including LSEG in Europe. 70 00:03:34,480 --> 00:03:37,120 Speaker 1: Yeah, so that is definitely continuing today after the massive 71 00:03:37,160 --> 00:03:40,120 Speaker 1: sell off in those software and financial services stocks that 72 00:03:40,160 --> 00:03:43,360 Speaker 1: we saw yesterday, after of course, Anthropic announced this new 73 00:03:43,400 --> 00:03:46,760 Speaker 1: AI tour to automate legal work, and investors saw that 74 00:03:46,840 --> 00:03:50,480 Speaker 1: as another sign that AI might be a major disruptor 75 00:03:50,520 --> 00:03:53,840 Speaker 1: to those software companies, and so they rush to limit 76 00:03:54,040 --> 00:03:56,360 Speaker 1: their exposure to any company that might be seen as 77 00:03:56,400 --> 00:03:59,240 Speaker 1: an AI loser, and LSEG is seen as one of those, 78 00:03:59,240 --> 00:04:03,800 Speaker 1: you know, provides software data analytics tools to financial professionals 79 00:04:03,800 --> 00:04:07,000 Speaker 1: like research analysts or traders, and the worry is that 80 00:04:07,040 --> 00:04:09,280 Speaker 1: AA tools might actually be able to do this faster 81 00:04:09,400 --> 00:04:13,440 Speaker 1: and cheaper, and so that is really dragging down those 82 00:04:13,600 --> 00:04:17,000 Speaker 1: shares in LSEG. This morning, JPMorgan analysts did say that 83 00:04:17,080 --> 00:04:20,480 Speaker 1: software and it services stocks were being sentenced before trial 84 00:04:20,760 --> 00:04:23,200 Speaker 1: by investors and part of This might perhaps be a 85 00:04:23,240 --> 00:04:25,640 Speaker 1: little bit of an overreaction, but there has been growing 86 00:04:25,680 --> 00:04:28,520 Speaker 1: concerns and it looks like what was perhaps more more 87 00:04:28,560 --> 00:04:31,120 Speaker 1: intangible worry is now become a lot more a lot 88 00:04:31,160 --> 00:04:33,160 Speaker 1: more tangible for investors. 89 00:04:34,200 --> 00:04:38,200 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 90 00:04:38,320 --> 00:04:40,880 Speaker 2: us throughout the day for the latest roundup of companies 91 00:04:40,960 --> 00:04:44,040 Speaker 2: making news on Wall Street and for the latest market 92 00:04:44,080 --> 00:04:48,560 Speaker 2: moving headlines. 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