WEBVTT - Barclays Down, Novartis Falls, WPP Disappoints

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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 Tea anabaio with Stephen Carroll and

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<v Speaker 3>we're joined by Bloomberg's Breaking.

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<v Speaker 4>News editor Louise Mean.

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<v Speaker 3>Louise, We've been talking a lot about Barcleay's results this morning,

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<v Speaker 3>bit of a negative reaction.

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<v Speaker 4>What happened? Indeed, Yes, this is their first quarter results.

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<v Speaker 1>Essentially performance and specifically their trading unit performance didn't match

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<v Speaker 1>up to Wall Street. So Barkleay's is the first major

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<v Speaker 1>UK banks that's reported since the one Iran War outbreak.

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<v Speaker 1>So it's a bit of an indicator into how the

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<v Speaker 1>industry is kind of responding to economic uncertainty and how

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<v Speaker 1>they're doing and essentially showing that the US and Wall

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<v Speaker 1>Street is doing better. So US rivals recently have been

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<v Speaker 1>saying that they've benefited from volatility, their trading desks have

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<v Speaker 1>had some record earnings. Barkley's seemingly struggling to capitalize on

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<v Speaker 1>that on that volatility, so they had a bit of a.

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<v Speaker 4>Mixed bag of results.

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<v Speaker 1>So if you take exit trading, they did pull in

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<v Speaker 1>sixteen percent more than a year ago, and investment banking

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<v Speaker 1>did be expectations, but fixed income was pretty flat. And overall,

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<v Speaker 1>their trading unit has lagged, as I mentioned, lagged those

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<v Speaker 1>US rivals, so the numbers weren't to inspiring essentially. And

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<v Speaker 1>then on top of that, they also noted an over

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<v Speaker 1>two hundred million pound impairment that's related to the collapse

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<v Speaker 1>of MSF mfs is the specialist lender, and then another

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<v Speaker 1>just over one hundred million for the car Loans SAGA.

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<v Speaker 4>So shares fell the worst.

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<v Speaker 1>Performing on the stock six hundred banks index this morning.

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<v Speaker 1>They did they did issue a fresh buyback of five

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<v Speaker 1>hundred million pounds, but that was expected, so it wasn't

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<v Speaker 1>much to boost shares. So, yeah, first quarter performance lagging

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<v Speaker 1>compared to America.

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<v Speaker 2>Okay, and looking at the pharmaceutical sector, no Varitis Stare

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<v Speaker 2>has done two point six percent this morning.

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<v Speaker 4>What's going on?

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<v Speaker 1>Yeah, they actually plunged even more in early trading, so

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<v Speaker 1>they're down over five percent in early trading, and that's

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<v Speaker 1>that wiped out their twenty twenty six games.

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<v Speaker 4>And as you say, now DAN slightly slightly less.

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<v Speaker 1>This is off their first quarter results, profits essentially falling

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<v Speaker 1>more than expected, and sales also fell unexpectedly as well.

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<v Speaker 1>This is as some of their kind of top selling

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<v Speaker 1>legacy medicines were hit really hard. So one of them

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<v Speaker 1>called Intresto, that was once a top seller, sales there

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<v Speaker 1>plunged forty two percent last quarter.

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<v Speaker 4>That was more than expected.

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<v Speaker 1>And it comes with kind of the backdrop of the

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<v Speaker 1>CEO's been trying to reshape novartists into so away from

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<v Speaker 1>those legacy medicines into a make of innovative prescription medicine.

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<v Speaker 4>So this is a bit of a key test as

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<v Speaker 4>to how it.

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<v Speaker 1>Will fare in that push towards those newer drugs. Now,

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<v Speaker 1>on that note, demand did grow for some of those

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<v Speaker 1>newer treatments. So for example, it's got a cancer pills,

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<v Speaker 1>so demand did grow for that and that's expected, as

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<v Speaker 1>I say, to drive that future growth, but a big

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<v Speaker 1>hit from those legacy medicines there. In terms of going forward,

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<v Speaker 1>it said it's on track, it will return to growth

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<v Speaker 1>in the second in the second half and meet guidance

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<v Speaker 1>for the whole year. So it tried to give a

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<v Speaker 1>bit of an upbeat tone there, and they're doing a

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<v Speaker 1>lot of deals to spur growth going forward as well.

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<v Speaker 1>But seems like quite a task ahead. And as I say,

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<v Speaker 1>shares reacting negatively in trading this morning.

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<v Speaker 3>Okay, Louise, it does seem like you're painting quite a

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<v Speaker 3>gleamy picture this morning, and it doesn't seem like things

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<v Speaker 3>were much better for WPP.

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<v Speaker 4>Can that's what happened there?

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<v Speaker 1>No well shares initially rose reading wpp's results this morning,

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<v Speaker 1>it seems like things were kind of steadying.

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<v Speaker 4>So WPP in the middle of a turnaround.

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<v Speaker 1>They've been struggling for quite a long time with a

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<v Speaker 1>whole host of things, including you know, grappling with the

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<v Speaker 1>rise of AI client losses, and their first quarter trading

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<v Speaker 1>indicated that things were starting to maybe level out. So

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<v Speaker 1>it was roughly as expected sales, that is a slight

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<v Speaker 1>improvement on fourth quarter.

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<v Speaker 4>They predicted a better second half, They kept.

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<v Speaker 1>Their guidance for the full year, so it seemed like

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<v Speaker 1>a bit of a glimmer of hope. As I say,

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<v Speaker 1>they've been having a tough time with grappling with all

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<v Speaker 1>of those headwinds. Shares of lost over fifty percent of

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<v Speaker 1>the past year. They were relegated from the foot see

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<v Speaker 1>hundred in December. But then the stock turns slightly lower,

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<v Speaker 1>so analyssa essentially focusing on the fact that, yeah, sales

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<v Speaker 1>are steadying, but they still are declining, and saying that,

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<v Speaker 1>you know, contestant consensus estimates won't.

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<v Speaker 4>Be raised given at maintained guidance, so shares a bit lower.

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