1 00:00:02,520 --> 00:00:07,000 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 --> 00:00:16,280 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:16,480 --> 00:00:18,680 Speaker 3: Let's take a look at some stocks on move today. 5 00:00:18,760 --> 00:00:21,239 Speaker 3: I'm Tom McKenzie alongside Corn Heca. Of course, we're joined 6 00:00:21,239 --> 00:00:25,080 Speaker 3: now by Bloomberg reporter Chloe Malay. Chloe. Novo in focus, 7 00:00:25,120 --> 00:00:26,799 Speaker 3: of course, the drug maker and the maker of weight 8 00:00:26,840 --> 00:00:31,480 Speaker 3: loss drugs, but not necessarily for good reason. What's going 9 00:00:31,520 --> 00:00:32,040 Speaker 3: on with the stock? 10 00:00:32,240 --> 00:00:35,240 Speaker 1: Yeah, so the US government negotiated a seventy one percent 11 00:00:35,520 --> 00:00:38,080 Speaker 1: at discount on the price of both azempic and wigov 12 00:00:38,200 --> 00:00:40,960 Speaker 1: which of course are two of Novo's a blockbuster drugs, 13 00:00:41,040 --> 00:00:43,320 Speaker 1: So it now prices them at two hundred and seventy 14 00:00:43,360 --> 00:00:45,839 Speaker 1: four dollars a month for patients on Medicare, which is 15 00:00:45,880 --> 00:00:49,239 Speaker 1: the health insurance program for the elderly and the disabled 16 00:00:49,240 --> 00:00:52,440 Speaker 1: in the US. Nova said that it actually remained opposed 17 00:00:52,440 --> 00:00:55,040 Speaker 1: to that government price setting. But it actually seems that 18 00:00:55,080 --> 00:00:57,920 Speaker 1: investors are not two phased by the news. They say 19 00:00:57,960 --> 00:01:00,040 Speaker 1: that this is kind of mostly priced in the This 20 00:01:00,160 --> 00:01:03,200 Speaker 1: is part of all of the drug pricing negotiations with 21 00:01:03,280 --> 00:01:07,000 Speaker 1: the pharmaceutical industry that was conducted by the Trump administration, 22 00:01:07,360 --> 00:01:10,600 Speaker 1: of course, using tariffs, using those regulatory threats to try 23 00:01:10,640 --> 00:01:14,000 Speaker 1: and reduce the cost of healthcare and boost local manufacturing 24 00:01:14,240 --> 00:01:17,080 Speaker 1: in the US, and the Trump administration said the new 25 00:01:17,120 --> 00:01:20,800 Speaker 1: prices would represent a twelve billion dollars in savings compared 26 00:01:20,840 --> 00:01:24,520 Speaker 1: with what Medicare had spent on those same drugs last year, 27 00:01:24,600 --> 00:01:26,760 Speaker 1: So that that's not only a zepic and MCGOVI, but 28 00:01:26,880 --> 00:01:30,240 Speaker 1: a range of other drugs that are seeing those Medicare cuts. 29 00:01:30,240 --> 00:01:33,240 Speaker 1: So although it sounds like actually quite a steep price cut, 30 00:01:33,319 --> 00:01:35,800 Speaker 1: analysts are saying that the impact will actually not be 31 00:01:35,880 --> 00:01:38,960 Speaker 1: too material for Novo and that explains the shares a 32 00:01:39,000 --> 00:01:39,600 Speaker 1: shrugging this. 33 00:01:39,600 --> 00:01:40,960 Speaker 4: Off mostly for that company. 34 00:01:41,120 --> 00:01:44,000 Speaker 5: Okay, so that on another Nordisk now Alice are looking 35 00:01:44,040 --> 00:01:49,160 Speaker 5: at alcohol, tobacco, but cautious on luxury. Is that a 36 00:01:49,200 --> 00:01:51,160 Speaker 5: Christmas list or is it a stopic? 37 00:01:51,640 --> 00:01:51,880 Speaker 4: Yeah? 38 00:01:51,960 --> 00:01:55,560 Speaker 1: So Panoga, which obvious the maker of spirits, It's down 39 00:01:55,640 --> 00:01:58,600 Speaker 1: this morning after being placed on a negative catalyst watch 40 00:01:58,640 --> 00:02:00,280 Speaker 1: by JP Morgan Alys. 41 00:02:00,440 --> 00:02:02,440 Speaker 4: So the analyst said that they were taking quite. 42 00:02:02,320 --> 00:02:06,040 Speaker 1: A cautious approach on the consumer staples sector in Europe 43 00:02:06,040 --> 00:02:09,320 Speaker 1: as a whole because of higher unemployment and lower consumer 44 00:02:09,360 --> 00:02:12,400 Speaker 1: confidence that will be probably weighing that sector down in 45 00:02:12,440 --> 00:02:15,720 Speaker 1: twenty twenty six. But within that they prefer some categories 46 00:02:15,960 --> 00:02:18,680 Speaker 1: over others, so cigarettes, for example, is better place, so 47 00:02:18,760 --> 00:02:22,480 Speaker 1: Imperial brands beer like with companies like Carsburg is better placed. 48 00:02:22,639 --> 00:02:26,000 Speaker 1: But unfortunately for Pano it doesn't fit within those categories. 49 00:02:26,000 --> 00:02:28,639 Speaker 1: It is a higher price point and therefore a bit 50 00:02:28,680 --> 00:02:32,040 Speaker 1: more exposed to that lower consumer confidence. Just a few 51 00:02:32,040 --> 00:02:34,000 Speaker 1: weeks ago it had to cut its outlook because it 52 00:02:34,040 --> 00:02:36,919 Speaker 1: had a very steep drop in sales and really weak 53 00:02:36,960 --> 00:02:40,000 Speaker 1: demand across all of its key markets, and it seems 54 00:02:40,040 --> 00:02:42,560 Speaker 1: that analysts don't believe that it'll be able to get 55 00:02:42,560 --> 00:02:43,959 Speaker 1: out of that slump anytime soon. 56 00:02:44,400 --> 00:02:48,400 Speaker 3: I'm talking you have consumer sentiment retailer next in focus 57 00:02:48,400 --> 00:02:52,160 Speaker 3: as well. How much of this is a litmus test. 58 00:02:51,960 --> 00:02:54,440 Speaker 4: Really as we lead up to the budget at twelve thirty. 59 00:02:54,200 --> 00:02:56,920 Speaker 1: Today, Yeah, it's really all about that those pre budget 60 00:02:57,000 --> 00:03:00,000 Speaker 1: jitters across the UK stop market, so they'll be obviously 61 00:03:00,120 --> 00:03:02,400 Speaker 1: focused throughout the day, But for now we can already 62 00:03:02,440 --> 00:03:05,640 Speaker 1: see some weakness in the shares of some retailers that 63 00:03:05,800 --> 00:03:08,359 Speaker 1: was obviously due to the announcement last night over hike 64 00:03:08,560 --> 00:03:10,720 Speaker 1: in the minimum wage, So that has an impact on 65 00:03:10,800 --> 00:03:15,440 Speaker 1: companies like Next, of course, but also supermarkets, high street chains, pubs, 66 00:03:15,440 --> 00:03:18,239 Speaker 1: et cetera, all of those companies that have really large 67 00:03:18,320 --> 00:03:21,960 Speaker 1: young workforces and therefore a minimum wage increase represents quite 68 00:03:22,000 --> 00:03:24,320 Speaker 1: a big hike in costs for them, and we can 69 00:03:24,360 --> 00:03:26,000 Speaker 1: see that reflected in the. 70 00:03:25,880 --> 00:03:27,480 Speaker 4: Shares in Next this morning. 71 00:03:28,080 --> 00:03:31,400 Speaker 1: The problem with the minimum wage hike, according to economists, 72 00:03:31,400 --> 00:03:35,120 Speaker 1: is that it's already among the highest globally, productivity is 73 00:03:35,160 --> 00:03:36,920 Speaker 1: meanwhile lagging behind other countries. 74 00:03:36,960 --> 00:03:39,640 Speaker 4: So it creates this imbalance that is quite. 75 00:03:39,480 --> 00:03:43,200 Speaker 1: Tough, quite challenging for both workers and employers, and that 76 00:03:43,360 --> 00:03:47,120 Speaker 1: is weighing down those retailers, those supermarkets this morning. 77 00:03:47,160 --> 00:03:49,160 Speaker 4: Let's see what we get later in the budget. 78 00:03:50,320 --> 00:03:54,360 Speaker 2: The Stock Movers report from Bloomberg Radio. 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