WEBVTT - Remy Cointreau Rises, Abivax Gains, Universal Dips

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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 and at some of the stocks

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<v Speaker 3>on the move today in Europe. I'm Jenslcock with Karen Hepker,

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<v Speaker 3>and we're joined as ever by Bloomberg reporter Clomelli Cloyent.

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<v Speaker 3>Let's stop. The Remi Quantro drinks maker still rise in

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<v Speaker 3>this morning following a well received profit beat.

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<v Speaker 2>Yeah.

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<v Speaker 1>Absolutely, so there's some signs that demand is picking up

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<v Speaker 1>for Remi Quantro. So it saw very strong growth in

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<v Speaker 1>the Americas, a region in particular, and that helped to

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<v Speaker 1>offset some of the weakness in Europe and China, which

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<v Speaker 1>are also very important markets for that company. And overall

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<v Speaker 1>it expects these sales to improve throughout the year. And

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<v Speaker 1>so given the recent weakness that we've seen for both

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<v Speaker 1>Remi Quantro and then the broader alcohol sector, the signs

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<v Speaker 1>of potential recovery that's seen us very encouraging, and so

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<v Speaker 1>that's why we're seeing a big boost in the shares

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<v Speaker 1>this morning, very strongly this morning. But there's now other

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<v Speaker 1>challenges to think about this. Of course, weaker consumer spending

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<v Speaker 1>because of the Iran war, especially given that cognac, which

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<v Speaker 1>is what Hemi Quatro makes, is very much a discretionary purchase,

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<v Speaker 1>not really a staple, so that could be that could

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<v Speaker 1>be a problem. And then the broader alcohol sector is

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<v Speaker 1>also contending with this debate of is it a cyclical

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<v Speaker 1>or structural downturn that we are seeing at the moment.

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<v Speaker 1>Are people drinking less right now because budgets are tight,

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<v Speaker 1>or is it because there's a kind of a fundamental,

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<v Speaker 1>irreversible change in alcol consumption that's been driven by things

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<v Speaker 1>like weight loss, drugs, or health concerns. And so that

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<v Speaker 1>question is really going to be key for those companies

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<v Speaker 1>to figure out and to think about as this alcohol

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<v Speaker 1>consumption continues to decline.

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<v Speaker 4>Okay, so that's not remy quatro. Meanwhile, ab efacts it's

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<v Speaker 4>actually rebounding off to an enormous shop yesterday because of

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<v Speaker 4>the reaction to a drug tru But now some analysts

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<v Speaker 4>are weighing in.

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<v Speaker 1>Yeah, so ABIVX was having, as you said, a really

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<v Speaker 1>really bad time earlier, just earlier this week, it had

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<v Speaker 1>this clinical trial data for a very promising drug. It

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<v Speaker 1>showed that the drug was very effective for inflammatory bowel disease,

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<v Speaker 1>but it also had to disclose cancer cases in several patients,

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<v Speaker 1>and so we don't know whether the drug and the

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<v Speaker 1>cancer cases are related at all. But the shares had

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<v Speaker 1>plunged because this is something that was seen as really

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<v Speaker 1>complicating the path towards regulatory approval. But as you just said,

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<v Speaker 1>there's now a big rebound in those shares because stifle

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<v Speaker 1>analysts came out and said that the selloff was overdone.

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<v Speaker 1>They said that the evidence supports the view that the

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<v Speaker 1>cancer cases reflect background incidents in a high risk population

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<v Speaker 1>rather than an effect of the drug, meaning essentially that

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<v Speaker 1>the drug is likely not at fault here. And earlier

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<v Speaker 1>this week we also had auto analysts saying that Abivax

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<v Speaker 1>was still a target for M and A. So there's

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<v Speaker 1>a bit of a reversal incentiment there for the stock

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<v Speaker 1>and we're seeing a big jump there for abivax.

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<v Speaker 3>And finally, Universal Music dipping this morning. Dare I ask

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<v Speaker 3>what has gone wrong with the Mood Music?

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<v Speaker 1>Yeah, so down this morning after Bill Ackman said that

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<v Speaker 1>he's selling his stick in the company. So this comes

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<v Speaker 1>just a few days after Universal rejected a takeover bid

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<v Speaker 1>from Akman's Pershing Square. So the deal that Ackman had

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<v Speaker 1>proposed was it was back at April, and it was

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<v Speaker 1>quite a complex one. It involved, you know, change in

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<v Speaker 1>stock market listing for the company. It involved a bit

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<v Speaker 1>of a complicated merger with a separate entity, and so

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<v Speaker 1>a lot of investors and analysts thought of it as

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<v Speaker 1>maybe too complex to actually implement, and so Universal then

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<v Speaker 1>rejected that offer, saying that it undervalued the company, that

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<v Speaker 1>it was not in the interest of either the shareholders

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<v Speaker 1>or the artists that Universal actually represents artists like Taylor

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<v Speaker 1>Swift or Drake, so very big music artists. But then

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<v Speaker 1>it's going to be really interesting to kind of keep

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<v Speaker 1>an eye on that company because the music industry is

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<v Speaker 1>in a very interesting position. We've had the value of

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<v Speaker 1>song catalogs really increasing over the last few years, but

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<v Speaker 1>at the same time, there's now this threat from AI,

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<v Speaker 1>with a lot of AI tools now available able to

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<v Speaker 1>create music on their own. So it's going to be

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<v Speaker 1>an interesting sector beyond even the m and a of

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<v Speaker 1>it all.

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