WEBVTT - Pharma Hit Hard in Selloff, BAE Up, ITV Down

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers podcast, 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. Were joined by Bloomberg's Equities Report to

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<v Speaker 3>Joe Easton Joe, we're seeing a broad sell off across

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<v Speaker 3>European equities on the back of these towns kicking into place.

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<v Speaker 3>But Farmer really getting hit hard. What's behind that?

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<v Speaker 1>Yeah, Farmer looking really really tough. In terms of the

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<v Speaker 1>trading there, we're seeing the likes of Novo Notice down

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<v Speaker 1>five and a half percent, Astrozeneka down six percent, of

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<v Speaker 1>Vartis six percent, all of the big stocks with heavy

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<v Speaker 1>US exposure coming down quite a lot. Now, Trump yesterday

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<v Speaker 1>or last night saying that the US is set to

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<v Speaker 1>announce a major tariff on pharmaceutical soon, though as usual

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<v Speaker 1>there's very little in terms of details on that. However,

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<v Speaker 1>it is kind of one of the sectors that thus

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<v Speaker 1>far has avoided getting some specific terrorists. But this does

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<v Speaker 1>seem to be priced again. We saw losses overnight in

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<v Speaker 1>AGYPT some stocks over in Japan in terms of the

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<v Speaker 1>farmer sector were down as much as ten percent, and

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<v Speaker 1>that is feeding through into Europe by far the worst

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<v Speaker 1>performing sector in terms of the sector makeup, with the

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<v Speaker 1>stocks healthcare index down four point four percent.

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<v Speaker 4>Yeah, it's certainly very interesting one to watch in terms

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<v Speaker 4>of what happens next in the tariff story. So on

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<v Speaker 4>the stock Sex hundred at the moment, Joe Route twenty

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<v Speaker 4>companies are in the green, everything else is selling off.

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<v Speaker 4>BA Systems one of the outperformers. What's going on there?

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<v Speaker 1>Yeah, so we are seeing some ou performance in the

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<v Speaker 1>defense sector as you mentioned, particularly BA Systems, but also

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<v Speaker 1>some of the other names. Ryan Mattau and he down

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<v Speaker 1>around one percent versus a border market down three percent

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<v Speaker 1>ly and not as similar. But BAE actually in the

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<v Speaker 1>green as you mentioned there. So what's happening here is

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<v Speaker 1>there are reports over the past couple of days that

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<v Speaker 1>the US could potentially ramp up spending, including around one

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<v Speaker 1>trillion dollars in defense spending in f Y twenty twenty six.

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<v Speaker 1>That would be up from eight hundred and ninety two billion,

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<v Speaker 1>so a twelve percent year on year increase, and that

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<v Speaker 1>is seen to be a big boost BAE. It makes

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<v Speaker 1>around a fifty percent of its sales over in the US.

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<v Speaker 1>It makes warships, it makes tanks, it makes pretty much

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<v Speaker 1>everything in the US being a huge market for them.

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<v Speaker 1>So that does seem to be accounting for the moves

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<v Speaker 1>in that stock today and potentially given the sell off

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<v Speaker 1>we've seen in defense, it's kind of rebounding a little bit,

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<v Speaker 1>but definitely continues to be an our performer across that sector.

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<v Speaker 3>And Joe very different space. But you're also yours have

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<v Speaker 3>an eye on on ITV. What's the story there?

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<v Speaker 1>Yes, so ITV sliding today, We're down. We were down

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<v Speaker 1>around eight percent at the lowest of the day. That

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<v Speaker 1>was the biggest drop or the biggest the lowest level

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<v Speaker 1>since November. In fact, for ITV stock, this comes as

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<v Speaker 1>ubs downgrades as the stock to sell. They recommend selling

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<v Speaker 1>due to two things. The first thing is ad revenue,

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<v Speaker 1>who is going to decline due to the weak economy,

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<v Speaker 1>so advertising spending does tend to track the economic growth

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<v Speaker 1>pretty closely and therefore they think that's negative. And also

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<v Speaker 1>streaming competition, itv X facing potential competition, so the usual

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<v Speaker 1>guys like Netflix and that kind of thing will be

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<v Speaker 1>the hits there. I did have a quick look at

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<v Speaker 1>it v X most watched on there today. You'll be

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<v Speaker 1>interested to know Selepty Big Brother, which I didn't know

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<v Speaker 1>was still around, but ITV stock down five percent of

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<v Speaker 1>the moment as ubs recommends selling.

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<v Speaker 4>That suggests you haven't been invited on Ye.

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<v Speaker 3>Well maybe this is my pitch that would get me

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<v Speaker 3>to tune in. Yeah, nothing else, Joe, Look.

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<v Speaker 1>If the producers are out there, give me a cool

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<v Speaker 1>is available?

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<v Speaker 4>Okay, Joe Eastern, our equities reporter.

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<v Speaker 2>Thank you. The Stock Movers podcast from Bloomberg Radio. Check

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