1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,760 --> 00:00:18,439 Speaker 3: Let's look at some of the stocks we'll move today 5 00:00:18,480 --> 00:00:21,520 Speaker 3: here in Europe. I'm Caroline Heckut with Stephen Carroll and 6 00:00:21,640 --> 00:00:23,640 Speaker 3: we joined by Bloomberg reporter at Chloe Malay. 7 00:00:23,720 --> 00:00:25,040 Speaker 1: Good morning, Chloe. 8 00:00:25,360 --> 00:00:28,720 Speaker 3: So let's start with Nova Nordisk and what's been happening 9 00:00:28,720 --> 00:00:32,159 Speaker 3: is inquite a lot moving in recent days for this business. 10 00:00:32,440 --> 00:00:32,720 Speaker 1: Yeah. 11 00:00:32,760 --> 00:00:36,159 Speaker 4: Absolutely, It's not been a really great start to the 12 00:00:36,240 --> 00:00:39,199 Speaker 4: year for Novas and the latest kind of big setback 13 00:00:39,280 --> 00:00:42,280 Speaker 4: that they had to deal with was the disappointing data 14 00:00:42,320 --> 00:00:45,720 Speaker 4: that we got yesterday on it's our next generation obesity shot, 15 00:00:46,000 --> 00:00:48,880 Speaker 4: and that is an ABC shot that is not working 16 00:00:48,920 --> 00:00:51,640 Speaker 4: as well as the rival product that we've got from 17 00:00:51,640 --> 00:00:52,320 Speaker 4: Elay Lilly. 18 00:00:52,360 --> 00:00:53,400 Speaker 1: And so the. 19 00:00:53,400 --> 00:00:56,640 Speaker 4: Readoubt was called the worst case scenario by Morgan Stanley 20 00:00:56,680 --> 00:01:00,640 Speaker 4: analysts yesterday and the shes fell massively as a result, 21 00:01:00,680 --> 00:01:04,440 Speaker 4: and today we're seeing some of that weakness continue because 22 00:01:04,480 --> 00:01:07,600 Speaker 4: we have now some analysts downgrading that stock on the 23 00:01:07,640 --> 00:01:11,080 Speaker 4: back of that disappointing data. So an ovn Ordisk was 24 00:01:11,120 --> 00:01:14,280 Speaker 4: cut to neutral rating at JP Morgan. It was also 25 00:01:14,319 --> 00:01:16,960 Speaker 4: cut at Naudea, and then the price target was also 26 00:01:17,040 --> 00:01:19,600 Speaker 4: cut at Intron Health, so kind of. 27 00:01:19,560 --> 00:01:22,120 Speaker 1: Cut across the board. And the problem. 28 00:01:21,840 --> 00:01:23,760 Speaker 4: Now for and Novo is that it really does need 29 00:01:24,040 --> 00:01:27,160 Speaker 4: a catalyst because the shares tumbled as well earlier this 30 00:01:27,319 --> 00:01:30,160 Speaker 4: year when the earnings and the outlook really disappointed for 31 00:01:30,240 --> 00:01:33,959 Speaker 4: twenty twenty six. So this latest read out, this latest 32 00:01:34,000 --> 00:01:36,959 Speaker 4: data really cements Eli Lilly as the leader in the 33 00:01:37,000 --> 00:01:39,680 Speaker 4: obesity space and it makes it much harder nowf and 34 00:01:39,720 --> 00:01:42,240 Speaker 4: Nova to come back from that and to try and 35 00:01:42,280 --> 00:01:44,919 Speaker 4: convince investors that things can actually get better. 36 00:01:46,120 --> 00:01:48,000 Speaker 1: Okay, so that's Novo Nordisk. 37 00:01:48,080 --> 00:01:52,240 Speaker 2: Let's turn next to Phrizenious Medical Care and their shares 38 00:01:52,320 --> 00:01:53,400 Speaker 2: also on the slide today. 39 00:01:54,000 --> 00:01:55,120 Speaker 1: Yeah, and that's because. 40 00:01:54,840 --> 00:01:57,720 Speaker 4: The outlook was seen as very disappointing for that company 41 00:01:57,760 --> 00:02:01,800 Speaker 4: that provides dialysis. So it's targeted broadly flat earnings in 42 00:02:01,840 --> 00:02:04,400 Speaker 4: twenty twenty six, and that is after a really big 43 00:02:04,440 --> 00:02:07,520 Speaker 4: surge in profit that we saw last year, and so 44 00:02:07,720 --> 00:02:11,200 Speaker 4: this moderation was not received very well by the market, 45 00:02:11,200 --> 00:02:13,640 Speaker 4: and the shes did for quite a bit this morning. 46 00:02:13,720 --> 00:02:16,760 Speaker 4: So the company has been undergoing this big turnaround that 47 00:02:16,800 --> 00:02:20,919 Speaker 4: included divestments, included a cost cutting program, but the results 48 00:02:20,960 --> 00:02:23,519 Speaker 4: for the fourth quarter to show that the profit gains 49 00:02:23,720 --> 00:02:27,080 Speaker 4: were really being driven by pricing and by that efficiency 50 00:02:27,240 --> 00:02:29,040 Speaker 4: rather than any patient growth. 51 00:02:29,080 --> 00:02:31,240 Speaker 1: So it doesn't look very sustainable in that way. 52 00:02:31,280 --> 00:02:34,240 Speaker 4: And so the outlook the numbers seem to signal that 53 00:02:34,280 --> 00:02:37,920 Speaker 4: this really big turnaround that that has been working on 54 00:02:38,080 --> 00:02:41,320 Speaker 4: is giving way, maybe quite quickly, to much more modest growth, 55 00:02:41,360 --> 00:02:44,240 Speaker 4: and so we're seeing that being quite disappointing for investors 56 00:02:44,280 --> 00:02:44,840 Speaker 4: this morning. 57 00:02:46,040 --> 00:02:51,800 Speaker 3: And lastly, the Spanish speaking world helping Telefonica to offset 58 00:02:51,919 --> 00:02:54,160 Speaker 3: European business worries. 59 00:02:54,520 --> 00:02:56,320 Speaker 4: Yeah, let's end on something a little bit more positive. 60 00:02:56,360 --> 00:02:59,200 Speaker 4: So Telefonica is in the green this morning. 61 00:02:59,240 --> 00:03:01,120 Speaker 1: That is because, yeah, it is in pretty good shape. 62 00:03:01,120 --> 00:03:03,960 Speaker 4: So growth in Spain and in growth in Brazil helped 63 00:03:04,040 --> 00:03:07,079 Speaker 4: offset some of that weakness in other European markets. So 64 00:03:07,520 --> 00:03:09,680 Speaker 4: things it seems that things have gotten a bit better 65 00:03:09,760 --> 00:03:13,080 Speaker 4: since the investor day back in November where the chairman 66 00:03:13,520 --> 00:03:17,119 Speaker 4: slashed the guidance for cash flows and also the dividend, 67 00:03:17,760 --> 00:03:20,440 Speaker 4: and since then there have been a lot of efficiency measures, 68 00:03:20,480 --> 00:03:24,720 Speaker 4: restructuring efforts, including job cuts and it seems that some 69 00:03:24,800 --> 00:03:26,720 Speaker 4: of those are starting to pay off. 70 00:03:26,720 --> 00:03:29,120 Speaker 1: So in Spain in particular, growth was really good. 71 00:03:29,200 --> 00:03:32,520 Speaker 4: It's one of Europe's most competitive telecom markets, but all 72 00:03:32,560 --> 00:03:36,880 Speaker 4: of the financial indicators grew last year for the first 73 00:03:36,920 --> 00:03:39,720 Speaker 4: time since two thousand and eight, so it's definitely much 74 00:03:39,760 --> 00:03:43,320 Speaker 4: better there. For other markets, there is some persistent weakness 75 00:03:43,320 --> 00:03:46,720 Speaker 4: in particularly in places like Germany where there's just a 76 00:03:46,720 --> 00:03:50,600 Speaker 4: lot of competition. There's competition with Deutsche Telecom, with Vodafone, 77 00:03:50,880 --> 00:03:54,360 Speaker 4: with one in one, so it's really limiting Telephonica's ability 78 00:03:54,400 --> 00:03:57,520 Speaker 4: to push through higher prices in that market in particular, 79 00:03:57,760 --> 00:04:01,160 Speaker 4: so it's definitely a weaker spot. The good earnings elsewhere, 80 00:04:01,240 --> 00:04:03,320 Speaker 4: good cash flow, and that was enough to make those 81 00:04:03,320 --> 00:04:04,120 Speaker 4: investors happy. 82 00:04:04,160 --> 00:04:09,280 Speaker 2: This morning the Stockmovers Report from Bloomberg Radio. Check back 83 00:04:09,280 --> 00:04:11,520 Speaker 2: with us throughout the day for the latest roundup of 84 00:04:11,560 --> 00:04:14,880 Speaker 2: companies making news on Wall Street and for the latest 85 00:04:14,880 --> 00:04:19,080 Speaker 2: market moving headlines. Listen to Bloomberg Radio Live, catch us 86 00:04:19,120 --> 00:04:22,839 Speaker 2: on YouTube, Bloomberg dot com, and on Applecarplay and Android 87 00:04:22,880 --> 00:04:24,880 Speaker 2: Auto with the Bloomberg Business app.