WEBVTT - ITV Surges, Novo Nordisk Down, IAG 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 3>Let's have a look at some stocks on the move

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<v Speaker 3>today here in Europe. I'm Caroline Hepget and I'm joined

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<v Speaker 3>by Boomberger portacloimb Malay. Good morning, good morning, Happy Friday.

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<v Speaker 3>So ITV is in talks with Comcasts about a sale,

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<v Speaker 3>so potentially a bit of amna.

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<v Speaker 1>Yeah, absolutely, and that's really boosted the shares this morning.

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<v Speaker 1>So ITV confirmed that it was in early talks to

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<v Speaker 1>sell its media and entertainment unit to Sky, which is

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<v Speaker 1>owned by a Comcast, for six sorry, one point six

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<v Speaker 1>billion pounds. And so it seems that investors are very happy.

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<v Speaker 1>After years and years of ITV being discussed as a

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<v Speaker 1>takeover target, it seems that now it is finally happening.

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<v Speaker 1>This is interesting because this is a doubling down on

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<v Speaker 1>the UK broadcasting market from Comcast after buying Sky, which

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<v Speaker 1>is an interesting bet given that it's not necessarily worked

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<v Speaker 1>out super well for them so far. So Compcast has

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<v Speaker 1>written down the valley of Sky by billions of dollars

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<v Speaker 1>since it acquired it in twenty eighteen, and the division

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<v Speaker 1>of ITV that it wants to buy, this media and

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<v Speaker 1>entertainment unit, is struggling quite a bit because of a

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<v Speaker 1>slowdown in advertising and this move away from kind of

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<v Speaker 1>traditional media as well. So the CEO said of ITV

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<v Speaker 1>said just yesterday that businesses were really holding back on

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<v Speaker 1>spending on advertising because of the uncertainty surrounding the UK

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<v Speaker 1>budget that's coming later this month and that it will

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<v Speaker 1>mean lower revenue in that division for the fourth quarter.

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<v Speaker 1>So it's quite an interesting move to be buying this

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<v Speaker 1>particular division which has been a struggling a little bit.

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<v Speaker 1>But let's see if the deal goes through. But so

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<v Speaker 1>far it seems that investors are very very keen on it.

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<v Speaker 3>Yeah. Absolutely, So that's on ITV in terms of never

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<v Speaker 3>more disc they've increased their bid for Metsarah. We're talking

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<v Speaker 3>about this yesterday't way this offer and a battle to

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<v Speaker 3>buy a company that's also making vival obest jugs.

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<v Speaker 1>Yeah, absolutely, but it is Actually Nova was actually down

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<v Speaker 1>this morning after raising that bid for the OBC startup

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<v Speaker 1>mid Serah. So it's another escalation in that take of

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<v Speaker 1>a battle between Phiser and Nova for for that company,

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<v Speaker 1>getting mid Sarah is really going to be crucial for

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<v Speaker 1>both of them. So Novo has fallen behind its closest

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<v Speaker 1>rival Eli Lilly and that abest space and Pfizer is

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<v Speaker 1>really trying to make inroads in that market because that's

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<v Speaker 1>such a profitable market. So they both really want it

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<v Speaker 1>and you can see that with that take of a

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<v Speaker 1>battle continuing. But now, the reason why Nova shares were

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<v Speaker 1>down this morning is because there are concerns now arising

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<v Speaker 1>among investors that the higher the bids go, the more

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<v Speaker 1>likely the bidders will be overpaying. And there's also the

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<v Speaker 1>threat of regulatory hurdles. There's antitrust concerns coming into view

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<v Speaker 1>as well. So we'll see how this goes going forward.

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<v Speaker 1>The bidding what is apparently expected to conclude in a

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<v Speaker 1>few days, so let's see who actually wins out and

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<v Speaker 1>how the investors will be reacting to that based on

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<v Speaker 1>the eventual price.

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<v Speaker 3>Okay, so that in the farmer space. Now looking at IAG,

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<v Speaker 3>which owns British Airways and Arthur as their share price

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<v Speaker 3>has not done well today.

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<v Speaker 1>Not at all, and that is because it seems that

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<v Speaker 1>people are just not traveling between the in Europe as

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<v Speaker 1>they did before as much as they used to before.

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<v Speaker 1>So the North Atlantic route, which is really crucial for IAG,

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<v Speaker 1>is it was quite weak over the third quarter and

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<v Speaker 1>that in turn weighed on earnings which ended up missing

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<v Speaker 1>estimates for that quarter. Airlines in Europe have been mentioning

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<v Speaker 1>that weakness for quite a while now, saying that passenger

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<v Speaker 1>demand into the US is becoming more and more restrained.

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<v Speaker 1>That is because partly travelers are quite put off by

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<v Speaker 1>the stricter immigration procedures that are currently in place in

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<v Speaker 1>the US, and then also because amid all of the

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<v Speaker 1>trade tensions, companies are scaling back on corporate travel, so

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<v Speaker 1>there's fewer work trips as well, and that is obviously

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<v Speaker 1>quite a big part of demand for British Airways or

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<v Speaker 1>Iberia as well, which is also owns. The demand for

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<v Speaker 1>premium cabins though is still quite solid, so that is

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<v Speaker 1>also what air France and Luftanza have said. So those

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<v Speaker 1>are the three kind of legacy carriers, so at least

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<v Speaker 1>there's that, but that weakness in North Atlantic group is

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<v Speaker 1>really what is dragging down those shears. This morning for IAG.

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