WEBVTT - NatWest Rises, Sanofi Climbs, Saab Surges

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

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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<v Speaker 3>the mood today here in Europe. I'm Caroline Hepca with

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<v Speaker 3>Tom McKenzie with John Bupplinberg's Colomba Lay. Good morning, more

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<v Speaker 3>loads of earnings to think about in Europe. Let's start

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<v Speaker 3>with that West the lender raising its guidance.

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<v Speaker 1>Yeah, very good morning for Network with a positive update

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<v Speaker 1>kind of across the board. So, as you mentioned, raised

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<v Speaker 1>its income and returns guidance, also delivered its highest earnings

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<v Speaker 1>in at least a decade. And then also the net

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<v Speaker 1>interest margin, which is really a key measure of profitability,

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<v Speaker 1>was also higher. It also set aside lesson expected to

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<v Speaker 1>cover bad loans, which kind of suggests that the quality

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<v Speaker 1>of its loan portfolio is in good shape. This is

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<v Speaker 1>the third UK bank to report this week. We had

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<v Speaker 1>Barclay's and Lloyd's as well earlier, and arguably Networks is

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<v Speaker 1>the one that delivered the most impressive results and therefore

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<v Speaker 1>has seen the biggest kind of reward by the market,

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<v Speaker 1>with shares really rising this morning, but overall the UK

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<v Speaker 1>banking sector seems to be doing pretty well. Both Lloyds

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<v Speaker 1>and Barclays also upgraded at least part of their guidance.

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<v Speaker 1>Barclay's obviously a new buyback, and they've all kind of

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<v Speaker 1>signaled that UK customers are resilient and coping quite well

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<v Speaker 1>with inflation and with a weaker jobs market. We do

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<v Speaker 1>have the budget come in next month. Of course, all

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<v Speaker 1>of that might change, but for now UK banks are

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<v Speaker 1>holding up well, and that Works in particular is holding

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<v Speaker 1>up very well.

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<v Speaker 3>Okay, So from the banking space to the pharmaceutical space.

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<v Speaker 3>Sonafi are also in focus and profit rising more more

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<v Speaker 3>than expected last quarter.

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<v Speaker 1>Yeah, profit beat because of really strong demand for its

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<v Speaker 1>blogbuster asthma drug called jupix and so the sales of

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<v Speaker 1>Jupixen reached a record in the quarter and it's expected

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<v Speaker 1>to generate more than twenty one billion euros in annual

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<v Speaker 1>revenue at its peak, which makes it so Nophi's most

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<v Speaker 1>important biggest medice by quite a long shot. That profit

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<v Speaker 1>be and the fact that gupis and cells were really

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<v Speaker 1>solid overshadowed was well. Another part of the earnings, which

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<v Speaker 1>was a bit of more bit more of a weak spot,

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<v Speaker 1>which is the vaccine segment. So so Nofi said that

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<v Speaker 1>cells of flu shots fell quite significantly. It blamed that

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<v Speaker 1>on price competition in Europe and then also lower vaccination

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<v Speaker 1>rates in the US. The CFO also said there was

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<v Speaker 1>maybe a little bit of post covid fatigue and quite

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<v Speaker 1>negative as sentiment around vaccines, which obviously could be quite

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<v Speaker 1>a challenge going forward for so Nofie and other pharmaceutical peers.

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<v Speaker 1>On the tariff side of things, and IPHI said it

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<v Speaker 1>is in constant discussions with the US, though it actually

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<v Speaker 1>did not make a deal like we've seen with Faiso

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<v Speaker 1>or Aslanka or merk where we've seen those companies trying

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<v Speaker 1>to well cutting a deal with the US to lower

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<v Speaker 1>drug costs in exchange for that tariff relief. So so

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<v Speaker 1>Nofia has not done that yet, but it is in

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<v Speaker 1>discussion with the US about those tariffs.

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<v Speaker 3>Okay, So that's on the farmer's story. Very US dependent too,

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<v Speaker 3>isn't it. Let's also think about defense and the momentum

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<v Speaker 3>that SAAB has. The CEO also making some comments speaking

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<v Speaker 3>to Bloomberg.

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<v Speaker 1>Yeah, absolutely, so the Swedish defense company It boosted its

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<v Speaker 1>revenue guidance this morning. It said that it's obviously benefiting

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<v Speaker 1>from the uncertain geopolitical landscape that we are dealing with

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<v Speaker 1>at the moment and all the tensions across the world.

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<v Speaker 1>It said that it's got a record high order backlog,

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<v Speaker 1>a really strong demand and as you said, the CEO

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<v Speaker 1>was on Bloomberg TV and saying that he expects that

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<v Speaker 1>momentum to be sustained going forward. We also had another

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<v Speaker 1>positive update that this morning from another defense company, Hensalt

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<v Speaker 1>in Germany, which provided margin guidance. There was also a

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<v Speaker 1>head of estimates and the stock rose quite a bit

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<v Speaker 1>on the back of that as well. It seems that

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<v Speaker 1>the boost from increased military spending is really starting to

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<v Speaker 1>feed through for those defense companies, with orders starting to

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<v Speaker 1>translate into profit. And given that attempt to broke a

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<v Speaker 1>piece in Ukraine seem to be facing quite a lot

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<v Speaker 1>of obstacles that will be probably continuing as well.

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<v Speaker 2>The Stockmover's report from Bloomberg Radio. Check back with us

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