Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the mood today here in Europe. I'm Caroline Hepca with
Speaker 3: Tom McKenzie with John Bupplinberg's Colomba Lay. Good morning, more
Speaker 3: loads of earnings to think about in Europe. Let's start
Speaker 3: with that West the lender raising its guidance.
Speaker 1: Yeah, very good morning for Network with a positive update
Speaker 1: kind of across the board. So, as you mentioned, raised
Speaker 1: its income and returns guidance, also delivered its highest earnings
Speaker 1: in at least a decade. And then also the net
Speaker 1: interest margin, which is really a key measure of profitability,
Speaker 1: was also higher. It also set aside lesson expected to
Speaker 1: cover bad loans, which kind of suggests that the quality
Speaker 1: of its loan portfolio is in good shape. This is
Speaker 1: the third UK bank to report this week. We had
Speaker 1: Barclay's and Lloyd's as well earlier, and arguably Networks is
Speaker 1: the one that delivered the most impressive results and therefore
Speaker 1: has seen the biggest kind of reward by the market,
Speaker 1: with shares really rising this morning, but overall the UK
Speaker 1: banking sector seems to be doing pretty well. Both Lloyds
Speaker 1: and Barclays also upgraded at least part of their guidance.
Speaker 1: Barclay's obviously a new buyback, and they've all kind of
Speaker 1: signaled that UK customers are resilient and coping quite well
Speaker 1: with inflation and with a weaker jobs market. We do
Speaker 1: have the budget come in next month. Of course, all
Speaker 1: of that might change, but for now UK banks are
Speaker 1: holding up well, and that Works in particular is holding
Speaker 1: up very well.
Speaker 3: Okay, So from the banking space to the pharmaceutical space.
Speaker 3: Sonafi are also in focus and profit rising more more
Speaker 3: than expected last quarter.
Speaker 1: Yeah, profit beat because of really strong demand for its
Speaker 1: blogbuster asthma drug called jupix and so the sales of
Speaker 1: Jupixen reached a record in the quarter and it's expected
Speaker 1: to generate more than twenty one billion euros in annual
Speaker 1: revenue at its peak, which makes it so Nophi's most
Speaker 1: important biggest medice by quite a long shot. That profit
Speaker 1: be and the fact that gupis and cells were really
Speaker 1: solid overshadowed was well. Another part of the earnings, which
Speaker 1: was a bit of more bit more of a weak spot,
Speaker 1: which is the vaccine segment. So so Nofi said that
Speaker 1: cells of flu shots fell quite significantly. It blamed that
Speaker 1: on price competition in Europe and then also lower vaccination
Speaker 1: rates in the US. The CFO also said there was
Speaker 1: maybe a little bit of post covid fatigue and quite
Speaker 1: negative as sentiment around vaccines, which obviously could be quite
Speaker 1: a challenge going forward for so Nofie and other pharmaceutical peers.
Speaker 1: On the tariff side of things, and IPHI said it
Speaker 1: is in constant discussions with the US, though it actually
Speaker 1: did not make a deal like we've seen with Faiso
Speaker 1: or Aslanka or merk where we've seen those companies trying
Speaker 1: to well cutting a deal with the US to lower
Speaker 1: drug costs in exchange for that tariff relief. So so
Speaker 1: Nofia has not done that yet, but it is in
Speaker 1: discussion with the US about those tariffs.
Speaker 3: Okay, So that's on the farmer's story. Very US dependent too,
Speaker 3: isn't it. Let's also think about defense and the momentum
Speaker 3: that SAAB has. The CEO also making some comments speaking
Speaker 3: to Bloomberg.
Speaker 1: Yeah, absolutely, so the Swedish defense company It boosted its
Speaker 1: revenue guidance this morning. It said that it's obviously benefiting
Speaker 1: from the uncertain geopolitical landscape that we are dealing with
Speaker 1: at the moment and all the tensions across the world.
Speaker 1: It said that it's got a record high order backlog,
Speaker 1: a really strong demand and as you said, the CEO
Speaker 1: was on Bloomberg TV and saying that he expects that
Speaker 1: momentum to be sustained going forward. We also had another
Speaker 1: positive update that this morning from another defense company, Hensalt
Speaker 1: in Germany, which provided margin guidance. There was also a
Speaker 1: head of estimates and the stock rose quite a bit
Speaker 1: on the back of that as well. It seems that
Speaker 1: the boost from increased military spending is really starting to
Speaker 1: feed through for those defense companies, with orders starting to
Speaker 1: translate into profit. And given that attempt to broke a
Speaker 1: piece in Ukraine seem to be facing quite a lot
Speaker 1: of obstacles that will be probably continuing as well.
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