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Speaker 3: Caroline, thank you for that update. Well, let's dig a
Speaker 3: little deeper now and take a look at some of
Speaker 3: the stocks that are on the move today in Europe.
Speaker 3: I'm team Adebayo with Caroline Hapca and we're joined by
Speaker 3: Bloomberg reporter Chloe Many. Good morning, Chloe. Let's start with
Speaker 3: a drop for Novo Nordisk. They reported their earnings today
Speaker 3: which were a little higher on the scale than was
Speaker 3: previously expected.
Speaker 1: What's the latest there.
Speaker 4: Yeah, So the reason why we're seeing this weakness this
Speaker 4: morning for Nova is because the sales of its weight
Speaker 4: loss pill disappointed investors. They did not manage to be
Speaker 4: expectations and a lot of investors were really hoping that
Speaker 4: this Wigov pill would outperform. There was a real sort
Speaker 4: of hype around it because the launch earlier this year
Speaker 4: was considered the most success ccessful obesity drug launch in history,
Speaker 4: and so that you know, hopes were really really high. Unfortunately,
Speaker 4: it did not manage to meet those and so we
Speaker 4: see we saw that as a big disappointment, and then
Speaker 4: going forward there's going to be some perhaps some things
Speaker 4: kind of complicating the outlook for Novo. There's questions around
Speaker 4: Medicare coverage in the US, There's questions around how successful
Speaker 4: the rollout of this Wigo vpil will be outside of
Speaker 4: the US.
Speaker 1: The next big launch is in Germany.
Speaker 4: And crucially there's the question as well of how successful
Speaker 4: Eli Lilly is going to be with its own a
Speaker 4: weight loss pill that it has launched.
Speaker 1: And you know, there's been recent trial setbacks as well.
Speaker 1: For Novo.
Speaker 4: There's this continued competition between Eli Lilly and Novnordisk, which
Speaker 4: has culminated in Novo suing Eli Lilly over some what
Speaker 4: it says is misleading advertising on its weight loss drugs.
Speaker 1: So there's a lot happening at the moment.
Speaker 4: And this are saying that the results that we had
Speaker 4: last night, we've a lot of questions open for twenty
Speaker 4: twenty seven.
Speaker 5: Yeah. Absolutely, So that's really interesting, isn't it on Nova
Speaker 5: Nordisk in terms of the hopes of the pill and
Speaker 5: what is transparring there. Okay, let's pivot to the high
Speaker 5: street here in the UK. Next shares rising after a
Speaker 5: boost to their sales tell us a bit more about
Speaker 5: what the.
Speaker 1: Business is doing.
Speaker 4: Yeah, so Next is really kind of confirming its status
Speaker 4: has a really bright spot in that UK retail sector,
Speaker 4: which of course has been affected by that weaker consumer
Speaker 4: confidence that we've been talking about throughout this earning season.
Speaker 4: So Next this morning boosted its guidance for the third
Speaker 4: time this fiscal year.
Speaker 1: It also said that it had really.
Speaker 4: Benefited from the very sunny and hot weather that there
Speaker 4: has been here in the UK, of course, and then
Speaker 4: its international division also performed very well, so it was
Speaker 4: a very solid set of results from Next this morning.
Speaker 4: This is a company that has a track record of
Speaker 4: boosting guidance. It does it very often, and this particular
Speaker 4: boost was actually expected by analysts.
Speaker 1: But we've still seen the shares assuring.
Speaker 4: This morning on the back of this, So for investors
Speaker 4: this was probably seen as quite a reassuring update in
Speaker 4: terms of that broader retail spending, maybe a sign that
Speaker 4: consumers have been a lot more resilient than we thought
Speaker 4: and then that we feared.
Speaker 1: It is worth noting that Next.
Speaker 4: Does expect sales growth to moderate a little bit in
Speaker 4: the second half of the year, so we'll see if
Speaker 4: that it can kind of keep up this momentum.
Speaker 3: Okay, we'll keep an eye on shares at next. But finally,
Speaker 3: semiconductor maker in Finni, and we had from their CEO
Speaker 3: a bit earlier, how are they faring today with this
Speaker 3: particular focus on tech shares that we're seeing.
Speaker 4: Yeah, well, this is for Vinnie and really a classic
Speaker 4: story of very strong results but then just not quite
Speaker 4: strong enough for this AI trade. We've seen those really
Speaker 4: strong forecasts coming from this chip maker, thanks to data
Speaker 4: center demand, of course, but it did not manage to
Speaker 4: convince investors who are becoming kind of increasingly worried about
Speaker 4: these sky high evaluations.
Speaker 1: That we've seen in this AI sector.
Speaker 4: There's a persistent worry around whether this spending in AI
Speaker 4: is sustainable, whether this circular financing that we're seeing in
Speaker 4: the sector is justified. And so for chip makers in
Speaker 4: all of those AI related stocks we've seen, we've seen
Speaker 4: kind of those really strong results not being really strong enough.
Speaker 1: To reassure investors.
Speaker 4: And this was really well summed up by a citianas
Speaker 4: saying that fundamentals are moving in the right direction, but
Speaker 4: market expectations have moved even quicker, and so we're seeing
Speaker 4: infinance siaes down.
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