Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg data.
Speaker 3: Let's take a look at some stocks on move today.
Speaker 3: I'm Tom McKenzie alongside Corn Heca. Of course, we're joined
Speaker 3: now by Bloomberg reporter Chloe Malay. Chloe. Novo in focus,
Speaker 3: of course, the drug maker and the maker of weight
Speaker 3: loss drugs, but not necessarily for good reason. What's going
Speaker 3: on with the stock?
Speaker 1: Yeah, so the US government negotiated a seventy one percent
Speaker 1: at discount on the price of both azempic and wigov
Speaker 1: which of course are two of Novo's a blockbuster drugs,
Speaker 1: So it now prices them at two hundred and seventy
Speaker 1: four dollars a month for patients on Medicare, which is
Speaker 1: the health insurance program for the elderly and the disabled
Speaker 1: in the US. Nova said that it actually remained opposed
Speaker 1: to that government price setting. But it actually seems that
Speaker 1: investors are not two phased by the news. They say
Speaker 1: that this is kind of mostly priced in the This
Speaker 1: is part of all of the drug pricing negotiations with
Speaker 1: the pharmaceutical industry that was conducted by the Trump administration,
Speaker 1: of course, using tariffs, using those regulatory threats to try
Speaker 1: and reduce the cost of healthcare and boost local manufacturing
Speaker 1: in the US, and the Trump administration said the new
Speaker 1: prices would represent a twelve billion dollars in savings compared
Speaker 1: with what Medicare had spent on those same drugs last year,
Speaker 1: So that that's not only a zepic and MCGOVI, but
Speaker 1: a range of other drugs that are seeing those Medicare cuts.
Speaker 1: So although it sounds like actually quite a steep price cut,
Speaker 1: analysts are saying that the impact will actually not be
Speaker 1: too material for Novo and that explains the shares a
Speaker 1: shrugging this.
Speaker 4: Off mostly for that company.
Speaker 5: Okay, so that on another Nordisk now Alice are looking
Speaker 5: at alcohol, tobacco, but cautious on luxury. Is that a
Speaker 5: Christmas list or is it a stopic?
Speaker 4: Yeah?
Speaker 1: So Panoga, which obvious the maker of spirits, It's down
Speaker 1: this morning after being placed on a negative catalyst watch
Speaker 1: by JP Morgan Alys.
Speaker 4: So the analyst said that they were taking quite.
Speaker 1: A cautious approach on the consumer staples sector in Europe
Speaker 1: as a whole because of higher unemployment and lower consumer
Speaker 1: confidence that will be probably weighing that sector down in
Speaker 1: twenty twenty six. But within that they prefer some categories
Speaker 1: over others, so cigarettes, for example, is better place, so
Speaker 1: Imperial brands beer like with companies like Carsburg is better placed.
Speaker 1: But unfortunately for Pano it doesn't fit within those categories.
Speaker 1: It is a higher price point and therefore a bit
Speaker 1: more exposed to that lower consumer confidence. Just a few
Speaker 1: weeks ago it had to cut its outlook because it
Speaker 1: had a very steep drop in sales and really weak
Speaker 1: demand across all of its key markets, and it seems
Speaker 1: that analysts don't believe that it'll be able to get
Speaker 1: out of that slump anytime soon.
Speaker 3: I'm talking you have consumer sentiment retailer next in focus
Speaker 3: as well. How much of this is a litmus test.
Speaker 4: Really as we lead up to the budget at twelve thirty.
Speaker 1: Today, Yeah, it's really all about that those pre budget
Speaker 1: jitters across the UK stop market, so they'll be obviously
Speaker 1: focused throughout the day, But for now we can already
Speaker 1: see some weakness in the shares of some retailers that
Speaker 1: was obviously due to the announcement last night over hike
Speaker 1: in the minimum wage, So that has an impact on
Speaker 1: companies like Next, of course, but also supermarkets, high street chains, pubs,
Speaker 1: et cetera, all of those companies that have really large
Speaker 1: young workforces and therefore a minimum wage increase represents quite
Speaker 1: a big hike in costs for them, and we can
Speaker 1: see that reflected in the.
Speaker 4: Shares in Next this morning.
Speaker 1: The problem with the minimum wage hike, according to economists,
Speaker 1: is that it's already among the highest globally, productivity is
Speaker 1: meanwhile lagging behind other countries.
Speaker 4: So it creates this imbalance that is quite.
Speaker 1: Tough, quite challenging for both workers and employers, and that
Speaker 1: is weighing down those retailers, those supermarkets this morning.
Speaker 4: Let's see what we get later in the budget.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: kid moving headlines. Listen to Bloomberg Radio Live, catch us
Speaker 2: on YouTube, Bloomberg dot com, and on Applecarplay and Android
Speaker 2: Auto with the Bloomberg Business app.