Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today in Europe. I'm Stephen Carroll with Lizzie Burton, and
Speaker 3: we're joined by Bloomberg reporter Chloe Mela for more. Chloe,
Speaker 3: good morning. Let's start with BNP. Pariba then shares down
Speaker 3: two point six percent of the moment. Another item being
Speaker 3: added to jeanre Bonafe, the CEO's growing list of challenges.
Speaker 4: It seems, yeah, absolutely quite tough morning for the CEO.
Speaker 4: So BNP said that his trading unit had suffered a
Speaker 4: hit from souring debt in the third quarter, which actually
Speaker 4: overshadowed what was otherwise really strong equities trading in that period.
Speaker 4: So loarn loss provisions rose to a nine hundred million
Speaker 4: euros and that included one hundred and ninety million at
Speaker 4: the Global Markets unit to account for a specific credit situation.
Speaker 4: So BNP actually didn't clarify what exactly, but the CFO
Speaker 4: has suggested it wasn't linked to the collapse of Tricolor
Speaker 4: or First Brands.
Speaker 5: In the US. This is obviously another setback for the company.
Speaker 4: Last week, the shares plunged because the court ruling had
Speaker 4: linked BNP to human rights abuses Insterdam two decades ago,
Speaker 4: and that opens the door to potentially billions in settlements
Speaker 4: for the bank. There's also the challenge of political instability
Speaker 4: in France and concerns about the health of the French economy,
Speaker 4: so all of that is also raising some worries about
Speaker 4: the impact on the domestic business, which the CEO is
Speaker 4: trying to revamp. So the stock as a result of
Speaker 4: all of this challenges, is currently the worst performer of
Speaker 4: all the large European banks and that is going to
Speaker 4: probably going to continue after this added this added setback
Speaker 4: for this year.
Speaker 1: And speaking of the bank earnings and credit as well,
Speaker 1: the top read story for HSBC on the terminal at
Speaker 1: the moment is that it's reviewing its ties to hedge
Speaker 1: funds with credit fears on the rise. But lots of
Speaker 1: different lines out of HSBC this morning and the shares up.
Speaker 5: Yeah, the shares are actually up. It is quite quite
Speaker 5: an interesting.
Speaker 4: Sorry, so it actually raised its profitability outlook, which is
Speaker 4: probably why the shares up, but that it was despite
Speaker 4: a falling profit in the third quarter because of quite
Speaker 4: a big provision, so it had to set aside one
Speaker 4: point one billion dollars to cover litigation by investors who
Speaker 4: lost money in the matter of fraud case which is
Speaker 4: dating back years and years now. But so it seems
Speaker 4: that despite quite kind of a mixed bag investors, we
Speaker 4: are really focusing on that raised outlook and they continue
Speaker 4: to put their trust in the CEO, Jodoladeri, which has
Speaker 4: overseen kind of the biggest revamp but at least a
Speaker 4: decade with thousands of drop cuts, loads of senior executives leaving,
Speaker 4: and also a major bet on Hong Kong. So despite
Speaker 4: this rise in shares, some analysts are still noting some
Speaker 4: concerns and analysts at RBC said that the bank is
Speaker 4: facing falling rates, muted loan growth, elevated impairments in the
Speaker 4: commercial real estate market, and the medal of litigation. So
Speaker 4: those are there's quite a long list of headwinds and
Speaker 4: that makes it difficult at the moment to see the
Speaker 4: wood from the trees, is.
Speaker 5: What the analysts said. So shares are up, but there
Speaker 5: are some concerns underneath.
Speaker 3: It, okay, and to Novartis shares down over three percent
Speaker 3: in Switzerland after their third quarter results.
Speaker 5: What's going on.
Speaker 4: We reported the slowest profit growth in almost two years
Speaker 4: for this quarter, and that's because some of its top
Speaker 4: sellers are facing growing generic competition over the US, which
Speaker 4: is its key market, it's biggest market. That's going to
Speaker 4: be a major challenge for Nevada's going forward. We're already
Speaker 4: starting to see this feed through into earning. So as
Speaker 4: a result of that, Nevatis is trying to find new
Speaker 4: treatments to mitigate that threat, both by developing its own
Speaker 4: but then also through a big acquisition. So just a
Speaker 4: few days ago, in announced a deal that was worth
Speaker 4: twelve billion dollars for Avidity Biosciences, which was the biggest
Speaker 4: deal in over a decade for the company, and that
Speaker 4: will give it access to potentially new blockbusts to drugs.
Speaker 4: So that will provide some relief in the long term,
Speaker 4: but until then, the earnings will be reflecting that generic competition,
Speaker 4: and the CEO is actually expecting.
Speaker 5: The full blow to hit in the fourth quarters.
Speaker 4: We've not even seen the worst yet, so there'll probably
Speaker 4: be some weakness there until the wind turns.
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