WEBVTT - BNP Paribas Falls, HSBC Gains, Novartis Down

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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>Let's take a look at some stocks on the move

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<v Speaker 3>today in Europe. I'm Stephen Carroll with Lizzie Burton, and

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<v Speaker 3>we're joined by Bloomberg reporter Chloe Mela for more. Chloe,

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<v Speaker 3>good morning. Let's start with BNP. Pariba then shares down

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<v Speaker 3>two point six percent of the moment. Another item being

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<v Speaker 3>added to jeanre Bonafe, the CEO's growing list of challenges.

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<v Speaker 4>It seems, yeah, absolutely quite tough morning for the CEO.

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<v Speaker 4>So BNP said that his trading unit had suffered a

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<v Speaker 4>hit from souring debt in the third quarter, which actually

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<v Speaker 4>overshadowed what was otherwise really strong equities trading in that period.

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<v Speaker 4>So loarn loss provisions rose to a nine hundred million

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<v Speaker 4>euros and that included one hundred and ninety million at

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<v Speaker 4>the Global Markets unit to account for a specific credit situation.

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<v Speaker 4>So BNP actually didn't clarify what exactly, but the CFO

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<v Speaker 4>has suggested it wasn't linked to the collapse of Tricolor

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<v Speaker 4>or First Brands.

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<v Speaker 5>In the US. This is obviously another setback for the company.

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<v Speaker 4>Last week, the shares plunged because the court ruling had

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<v Speaker 4>linked BNP to human rights abuses Insterdam two decades ago,

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<v Speaker 4>and that opens the door to potentially billions in settlements

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<v Speaker 4>for the bank. There's also the challenge of political instability

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<v Speaker 4>in France and concerns about the health of the French economy,

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<v Speaker 4>so all of that is also raising some worries about

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<v Speaker 4>the impact on the domestic business, which the CEO is

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<v Speaker 4>trying to revamp. So the stock as a result of

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<v Speaker 4>all of this challenges, is currently the worst performer of

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<v Speaker 4>all the large European banks and that is going to

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<v Speaker 4>probably going to continue after this added this added setback

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<v Speaker 4>for this year.

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<v Speaker 1>And speaking of the bank earnings and credit as well,

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<v Speaker 1>the top read story for HSBC on the terminal at

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<v Speaker 1>the moment is that it's reviewing its ties to hedge

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<v Speaker 1>funds with credit fears on the rise. But lots of

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<v Speaker 1>different lines out of HSBC this morning and the shares up.

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<v Speaker 5>Yeah, the shares are actually up. It is quite quite

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<v Speaker 5>an interesting.

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<v Speaker 4>Sorry, so it actually raised its profitability outlook, which is

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<v Speaker 4>probably why the shares up, but that it was despite

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<v Speaker 4>a falling profit in the third quarter because of quite

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<v Speaker 4>a big provision, so it had to set aside one

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<v Speaker 4>point one billion dollars to cover litigation by investors who

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<v Speaker 4>lost money in the matter of fraud case which is

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<v Speaker 4>dating back years and years now. But so it seems

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<v Speaker 4>that despite quite kind of a mixed bag investors, we

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<v Speaker 4>are really focusing on that raised outlook and they continue

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<v Speaker 4>to put their trust in the CEO, Jodoladeri, which has

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<v Speaker 4>overseen kind of the biggest revamp but at least a

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<v Speaker 4>decade with thousands of drop cuts, loads of senior executives leaving,

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<v Speaker 4>and also a major bet on Hong Kong. So despite

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<v Speaker 4>this rise in shares, some analysts are still noting some

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<v Speaker 4>concerns and analysts at RBC said that the bank is

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<v Speaker 4>facing falling rates, muted loan growth, elevated impairments in the

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<v Speaker 4>commercial real estate market, and the medal of litigation. So

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<v Speaker 4>those are there's quite a long list of headwinds and

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<v Speaker 4>that makes it difficult at the moment to see the

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<v Speaker 4>wood from the trees, is.

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<v Speaker 5>What the analysts said. So shares are up, but there

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<v Speaker 5>are some concerns underneath.

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<v Speaker 3>It, okay, and to Novartis shares down over three percent

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<v Speaker 3>in Switzerland after their third quarter results.

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<v Speaker 5>What's going on.

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<v Speaker 4>We reported the slowest profit growth in almost two years

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<v Speaker 4>for this quarter, and that's because some of its top

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<v Speaker 4>sellers are facing growing generic competition over the US, which

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<v Speaker 4>is its key market, it's biggest market. That's going to

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<v Speaker 4>be a major challenge for Nevada's going forward. We're already

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<v Speaker 4>starting to see this feed through into earning. So as

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<v Speaker 4>a result of that, Nevatis is trying to find new

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<v Speaker 4>treatments to mitigate that threat, both by developing its own

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<v Speaker 4>but then also through a big acquisition. So just a

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<v Speaker 4>few days ago, in announced a deal that was worth

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<v Speaker 4>twelve billion dollars for Avidity Biosciences, which was the biggest

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<v Speaker 4>deal in over a decade for the company, and that

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<v Speaker 4>will give it access to potentially new blockbusts to drugs.

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<v Speaker 4>So that will provide some relief in the long term,

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<v Speaker 4>but until then, the earnings will be reflecting that generic competition,

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<v Speaker 4>and the CEO is actually expecting.

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<v Speaker 5>The full blow to hit in the fourth quarters.

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<v Speaker 4>We've not even seen the worst yet, so there'll probably

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<v Speaker 4>be some weakness there until the wind turns.

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