WEBVTT - Novo Nordisk Drops, Next Jumps, Infineon Falls

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Caroline, thank you for that update. Well, let's dig a

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<v Speaker 3>little deeper now and take a look at some of

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<v Speaker 3>the stocks that are on the move today in Europe.

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<v Speaker 3>I'm team Adebayo with Caroline Hapca and we're joined by

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<v Speaker 3>Bloomberg reporter Chloe Many. Good morning, Chloe. Let's start with

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<v Speaker 3>a drop for Novo Nordisk. They reported their earnings today

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<v Speaker 3>which were a little higher on the scale than was

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<v Speaker 3>previously expected.

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<v Speaker 1>What's the latest there.

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<v Speaker 4>Yeah, So the reason why we're seeing this weakness this

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<v Speaker 4>morning for Nova is because the sales of its weight

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<v Speaker 4>loss pill disappointed investors. They did not manage to be

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<v Speaker 4>expectations and a lot of investors were really hoping that

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<v Speaker 4>this Wigov pill would outperform. There was a real sort

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<v Speaker 4>of hype around it because the launch earlier this year

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<v Speaker 4>was considered the most success ccessful obesity drug launch in history,

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<v Speaker 4>and so that you know, hopes were really really high. Unfortunately,

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<v Speaker 4>it did not manage to meet those and so we

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<v Speaker 4>see we saw that as a big disappointment, and then

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<v Speaker 4>going forward there's going to be some perhaps some things

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<v Speaker 4>kind of complicating the outlook for Novo. There's questions around

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<v Speaker 4>Medicare coverage in the US, There's questions around how successful

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<v Speaker 4>the rollout of this Wigo vpil will be outside of

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<v Speaker 4>the US.

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<v Speaker 1>The next big launch is in Germany.

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<v Speaker 4>And crucially there's the question as well of how successful

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<v Speaker 4>Eli Lilly is going to be with its own a

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<v Speaker 4>weight loss pill that it has launched.

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<v Speaker 1>And you know, there's been recent trial setbacks as well.

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<v Speaker 1>For Novo.

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<v Speaker 4>There's this continued competition between Eli Lilly and Novnordisk, which

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<v Speaker 4>has culminated in Novo suing Eli Lilly over some what

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<v Speaker 4>it says is misleading advertising on its weight loss drugs.

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<v Speaker 1>So there's a lot happening at the moment.

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<v Speaker 4>And this are saying that the results that we had

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<v Speaker 4>last night, we've a lot of questions open for twenty

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<v Speaker 4>twenty seven.

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<v Speaker 5>Yeah. Absolutely, So that's really interesting, isn't it on Nova

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<v Speaker 5>Nordisk in terms of the hopes of the pill and

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<v Speaker 5>what is transparring there. Okay, let's pivot to the high

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<v Speaker 5>street here in the UK. Next shares rising after a

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<v Speaker 5>boost to their sales tell us a bit more about

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<v Speaker 5>what the.

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<v Speaker 1>Business is doing.

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<v Speaker 4>Yeah, so Next is really kind of confirming its status

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<v Speaker 4>has a really bright spot in that UK retail sector,

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<v Speaker 4>which of course has been affected by that weaker consumer

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<v Speaker 4>confidence that we've been talking about throughout this earning season.

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<v Speaker 4>So Next this morning boosted its guidance for the third

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<v Speaker 4>time this fiscal year.

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<v Speaker 1>It also said that it had really.

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<v Speaker 4>Benefited from the very sunny and hot weather that there

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<v Speaker 4>has been here in the UK, of course, and then

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<v Speaker 4>its international division also performed very well, so it was

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<v Speaker 4>a very solid set of results from Next this morning.

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<v Speaker 4>This is a company that has a track record of

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<v Speaker 4>boosting guidance. It does it very often, and this particular

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<v Speaker 4>boost was actually expected by analysts.

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<v Speaker 1>But we've still seen the shares assuring.

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<v Speaker 4>This morning on the back of this, So for investors

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<v Speaker 4>this was probably seen as quite a reassuring update in

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<v Speaker 4>terms of that broader retail spending, maybe a sign that

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<v Speaker 4>consumers have been a lot more resilient than we thought

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<v Speaker 4>and then that we feared.

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<v Speaker 1>It is worth noting that Next.

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<v Speaker 4>Does expect sales growth to moderate a little bit in

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<v Speaker 4>the second half of the year, so we'll see if

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<v Speaker 4>that it can kind of keep up this momentum.

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<v Speaker 3>Okay, we'll keep an eye on shares at next. But finally,

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<v Speaker 3>semiconductor maker in Finni, and we had from their CEO

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<v Speaker 3>a bit earlier, how are they faring today with this

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<v Speaker 3>particular focus on tech shares that we're seeing.

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<v Speaker 4>Yeah, well, this is for Vinnie and really a classic

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<v Speaker 4>story of very strong results but then just not quite

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<v Speaker 4>strong enough for this AI trade. We've seen those really

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<v Speaker 4>strong forecasts coming from this chip maker, thanks to data

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<v Speaker 4>center demand, of course, but it did not manage to

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<v Speaker 4>convince investors who are becoming kind of increasingly worried about

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<v Speaker 4>these sky high evaluations.

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<v Speaker 1>That we've seen in this AI sector.

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<v Speaker 4>There's a persistent worry around whether this spending in AI

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<v Speaker 4>is sustainable, whether this circular financing that we're seeing in

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<v Speaker 4>the sector is justified. And so for chip makers in

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<v Speaker 4>all of those AI related stocks we've seen, we've seen

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<v Speaker 4>kind of those really strong results not being really strong enough.

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<v Speaker 1>To reassure investors.

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<v Speaker 4>And this was really well summed up by a citianas

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<v Speaker 4>saying that fundamentals are moving in the right direction, but

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<v Speaker 4>market expectations have moved even quicker, and so we're seeing

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<v Speaker 4>infinance siaes down.

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<v Speaker 2>This morning the Stock Movers Report from Bloomberg Radio. Check

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