WEBVTT - Novo Nordisk's Discount, Pernod Ricard Dips, Next Jitters

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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 take a look at some stocks on move today.

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<v Speaker 3>I'm Tom McKenzie alongside Corn Heca. Of course, we're joined

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<v Speaker 3>now by Bloomberg reporter Chloe Malay. Chloe. Novo in focus,

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<v Speaker 3>of course, the drug maker and the maker of weight

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<v Speaker 3>loss drugs, but not necessarily for good reason. What's going

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<v Speaker 3>on with the stock?

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<v Speaker 1>Yeah, so the US government negotiated a seventy one percent

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<v Speaker 1>at discount on the price of both azempic and wigov

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<v Speaker 1>which of course are two of Novo's a blockbuster drugs,

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<v Speaker 1>So it now prices them at two hundred and seventy

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<v Speaker 1>four dollars a month for patients on Medicare, which is

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<v Speaker 1>the health insurance program for the elderly and the disabled

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<v Speaker 1>in the US. Nova said that it actually remained opposed

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<v Speaker 1>to that government price setting. But it actually seems that

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<v Speaker 1>investors are not two phased by the news. They say

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<v Speaker 1>that this is kind of mostly priced in the This

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<v Speaker 1>is part of all of the drug pricing negotiations with

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<v Speaker 1>the pharmaceutical industry that was conducted by the Trump administration,

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<v Speaker 1>of course, using tariffs, using those regulatory threats to try

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<v Speaker 1>and reduce the cost of healthcare and boost local manufacturing

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<v Speaker 1>in the US, and the Trump administration said the new

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<v Speaker 1>prices would represent a twelve billion dollars in savings compared

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<v Speaker 1>with what Medicare had spent on those same drugs last year,

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<v Speaker 1>So that that's not only a zepic and MCGOVI, but

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<v Speaker 1>a range of other drugs that are seeing those Medicare cuts.

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<v Speaker 1>So although it sounds like actually quite a steep price cut,

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<v Speaker 1>analysts are saying that the impact will actually not be

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<v Speaker 1>too material for Novo and that explains the shares a

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<v Speaker 1>shrugging this.

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<v Speaker 4>Off mostly for that company.

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<v Speaker 5>Okay, so that on another Nordisk now Alice are looking

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<v Speaker 5>at alcohol, tobacco, but cautious on luxury. Is that a

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<v Speaker 5>Christmas list or is it a stopic?

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<v Speaker 4>Yeah?

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<v Speaker 1>So Panoga, which obvious the maker of spirits, It's down

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<v Speaker 1>this morning after being placed on a negative catalyst watch

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<v Speaker 1>by JP Morgan Alys.

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<v Speaker 4>So the analyst said that they were taking quite.

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<v Speaker 1>A cautious approach on the consumer staples sector in Europe

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<v Speaker 1>as a whole because of higher unemployment and lower consumer

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<v Speaker 1>confidence that will be probably weighing that sector down in

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<v Speaker 1>twenty twenty six. But within that they prefer some categories

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<v Speaker 1>over others, so cigarettes, for example, is better place, so

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<v Speaker 1>Imperial brands beer like with companies like Carsburg is better placed.

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<v Speaker 1>But unfortunately for Pano it doesn't fit within those categories.

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<v Speaker 1>It is a higher price point and therefore a bit

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<v Speaker 1>more exposed to that lower consumer confidence. Just a few

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<v Speaker 1>weeks ago it had to cut its outlook because it

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<v Speaker 1>had a very steep drop in sales and really weak

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<v Speaker 1>demand across all of its key markets, and it seems

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<v Speaker 1>that analysts don't believe that it'll be able to get

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<v Speaker 1>out of that slump anytime soon.

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<v Speaker 3>I'm talking you have consumer sentiment retailer next in focus

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<v Speaker 3>as well. How much of this is a litmus test.

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<v Speaker 4>Really as we lead up to the budget at twelve thirty.

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<v Speaker 1>Today, Yeah, it's really all about that those pre budget

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<v Speaker 1>jitters across the UK stop market, so they'll be obviously

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<v Speaker 1>focused throughout the day, But for now we can already

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<v Speaker 1>see some weakness in the shares of some retailers that

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<v Speaker 1>was obviously due to the announcement last night over hike

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<v Speaker 1>in the minimum wage, So that has an impact on

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<v Speaker 1>companies like Next, of course, but also supermarkets, high street chains, pubs,

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<v Speaker 1>et cetera, all of those companies that have really large

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<v Speaker 1>young workforces and therefore a minimum wage increase represents quite

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<v Speaker 1>a big hike in costs for them, and we can

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<v Speaker 1>see that reflected in the.

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<v Speaker 4>Shares in Next this morning.

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<v Speaker 1>The problem with the minimum wage hike, according to economists,

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<v Speaker 1>is that it's already among the highest globally, productivity is

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<v Speaker 1>meanwhile lagging behind other countries.

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<v Speaker 4>So it creates this imbalance that is quite.

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<v Speaker 1>Tough, quite challenging for both workers and employers, and that

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<v Speaker 1>is weighing down those retailers, those supermarkets this morning.

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<v Speaker 4>Let's see what we get later in the budget.

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