WEBVTT - BP Spin Off, Sanofi Down, Fresnillo Up

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>Now, let's have a look at some of the stocks

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<v Speaker 2>on the move today here in Europe. I'm Caroline Hepga

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<v Speaker 2>and I'm joined by Bloomberg reporter Kit Reese. Kit good

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<v Speaker 2>to speak to you. There are some stocks trading today.

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<v Speaker 2>It's a holiday shortened day and quite a number of

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<v Speaker 2>European markets are closed for the whole day anyway. But

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<v Speaker 2>BP is moving. They outed their CEO last week and

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<v Speaker 2>we've got some fresh news today.

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<v Speaker 3>What's been happening, Yes, so we're getting a little bit

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<v Speaker 3>of m and A news this morning. So BP has

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<v Speaker 3>agreed to sell a majority steak in its Castro business

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<v Speaker 3>to Stone Peak Partners. So Castrow that makes lubricants for

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<v Speaker 3>autos and industries, and it has also been developing a

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<v Speaker 3>liquid cooling technology for use in AI data centers. So

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<v Speaker 3>BP will raise around six billion dollars for sixty five

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<v Speaker 3>percent stake in the group, and it looks like the

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<v Speaker 3>deal will be completed by the end of next year.

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<v Speaker 3>So it's it's been a really busy year for BP,

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<v Speaker 3>as you mentioned, you know, they they're replacing their CEO

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<v Speaker 3>after just two years in the job, and it's really

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<v Speaker 3>come under pressure from an activist investor, Elliott to pivot

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<v Speaker 3>back towards fossil fuels after and not particularly successful foray

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<v Speaker 3>into renewables. So it's also struggle because the oil price

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<v Speaker 3>has been very volatile. So if I'm looking at the

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<v Speaker 3>shares that are up at abouto point four percent this morning,

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<v Speaker 3>so not a huge move, but overall, you know, it's

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<v Speaker 3>part of this divestment strategy, part of its efforts to

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<v Speaker 3>restructure and refocus on things like oil and gas. The

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<v Speaker 3>shares are up ten percent this year and they've really

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<v Speaker 3>underperformed the stock six hundred energy sectors twenty percent gain,

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<v Speaker 3>so there's still quite a long way to go, but

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<v Speaker 3>it's a move in the right direction.

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<v Speaker 2>Interesting, So that's BP. Meanwhile, the French drug maker Sanofi

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<v Speaker 2>making a bed against vaccine fatigue. How are they doing that?

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<v Speaker 3>Yeah, definitely. So they're buying Dinovax technology for two point

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<v Speaker 3>two billion dollars, which would give it exposure to the

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<v Speaker 3>adult immunization market. So dino Vaccines has this hepatitis B

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<v Speaker 3>vaccine that's already marketed in the US, and also an

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<v Speaker 3>experimental shingles and oculation which is in early human testing.

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<v Speaker 3>So I mean, the vaccine business, it's really struggled. Sanofi

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<v Speaker 3>has really struggled with this, given that the sales of

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<v Speaker 3>flu vaccines have declined in the last quarter. There's also

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<v Speaker 3>growing competition in Europe which has kind of pushed down prices,

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<v Speaker 3>and fewer people are getting vaccinated in the US. But overall,

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<v Speaker 3>it's an interesting bet. The shares are down very slightly

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<v Speaker 3>this morning, which could be because the FDA has rejected

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<v Speaker 3>Sanofi's experimental multiple sclerosis drug, which is it's been taken

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<v Speaker 3>as a bit of a bit of a negative this morning.

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<v Speaker 3>But overall, it's an interesting bet, as you say, on

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<v Speaker 3>the vaccine market, and we'll just see how it kind

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<v Speaker 3>of develops for them.

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<v Speaker 2>Okay, so that's on Sinofi. Meanwhile, gold, silver, and platinum. No,

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<v Speaker 2>it's not a new Nativity hymn. It's about mining stocks.

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<v Speaker 2>Tell us more, git.

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<v Speaker 3>I mean, these metals have seen an absolutely stunning rally

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<v Speaker 3>this year, and yeah, they're all at record highs today.

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<v Speaker 3>So this really boosts the companies that get these metals

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<v Speaker 3>out of the ground. So stocks like Frisnillo up four

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<v Speaker 3>hundred and twenty percent this year. It mines silver. Howkstiled

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<v Speaker 3>Endeavor also way up over one hundred percent this year.

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<v Speaker 3>There's a lot of a safe haven appeal for pressure's

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<v Speaker 3>metals miners, and we're seeing tensions and Venezuela between the

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<v Speaker 3>Ukraine and Russia, which boosts the peel of these kind

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<v Speaker 3>of assets. And with copper it's also just soaring. There's

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<v Speaker 3>warriors over tighter supply next year. And also the metal

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<v Speaker 3>is used in new technology, especially in things like electrification

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<v Speaker 3>and in data centers, which are obviously key for powering

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<v Speaker 3>the artificial intelligence. And so you know, the basic resources

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<v Speaker 3>sectors of about twenty six percent this year in Europe,

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<v Speaker 3>it's one of the most the top performing sectors in

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<v Speaker 3>Europe this year. And we've seen companies like Antifagasta shares

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<v Speaker 3>up over one hundred percent. It has a copper mine

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<v Speaker 3>in Chile. Anglo American up twenty nine percent. So you know,

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<v Speaker 3>the big question will be candy stocks sustain these gains

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<v Speaker 3>into next year, so we'll have to see, you know,

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<v Speaker 3>how these trades pan out. But overall, you know, the

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<v Speaker 3>precious metals just keep on flying.

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<v Speaker 1>The Stock Movers report from Bloomberg Radio. Check back with

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