WEBVTT - Stock Movers: Diageo, DBV, HSBC (Podcast)

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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 of the stocks on

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<v Speaker 3>the move today in Europe. I'm Stephen Caroll with Tom

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<v Speaker 3>McKenzie and we're joined by Bloomberg's Breaking News editor Louise Moon. Louise,

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<v Speaker 3>good morning. Let's start with Diagio today, shares higher. They've

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<v Speaker 3>been doing some deal making ahead of Christmas.

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<v Speaker 1>They have, indeed, they have sold East African Breweries, this

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<v Speaker 1>one of their units in Africa. That's to a Sie obviously,

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<v Speaker 1>the Japanese brand which has the beer of the same names.

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<v Speaker 1>This is a two point three billion US dollar deal,

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<v Speaker 1>so we knew that this has been kind of under

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<v Speaker 1>review for a while, but this is the outcome. As

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<v Speaker 1>you say, shares are taking chicking higher on that news

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<v Speaker 1>this morning. So this is DIGU six five per cent

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<v Speaker 1>steak in East African Breweries. Plus also have a majority

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<v Speaker 1>holding in a Kenua base spirits producer which is also

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<v Speaker 1>owned by East African Brewery. So all of this together

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<v Speaker 1>two point three billion dollars to Asahi, so taking a

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<v Speaker 1>step back in terms of Diadio's what it's been doing

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<v Speaker 1>is it's been kind of pairing back, getting rid of

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<v Speaker 1>non core units, trying to spur growth, grappling with what

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<v Speaker 1>the whole industry is grappling with the changing of consumer

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<v Speaker 1>drinking habits, slow down and spending, that kind of thing.

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<v Speaker 1>And so they've been offloading some of these non core assets,

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<v Speaker 1>in particular in Africa in recent years. And then on

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<v Speaker 1>a Sahi side, they've been expanding internationally over the past

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<v Speaker 1>few years. So for example, they bought the UK's photosmith

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<v Speaker 1>and Turner's brewing business in twenty nineteen as one example.

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<v Speaker 1>So DAJO shares, as I say, rose, they are still

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<v Speaker 1>down by about third so far this year on the

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<v Speaker 1>back of all those troubles that I mentioned. And then

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<v Speaker 1>eab's rising over in Nairobi. So a big deal in

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<v Speaker 1>the brewing space this morning.

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<v Speaker 2>Okay.

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<v Speaker 3>And you can't have a beer without a bowl of peanuts,

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<v Speaker 3>or maybe if you have an allergy you want to

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<v Speaker 3>avoid that because you peen uts. How is this tying

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<v Speaker 3>in two stocks on the watch?

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<v Speaker 1>So it's really interesting one to dBV so French biopharmaceutical firm,

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<v Speaker 1>they have had a result of quite a crucial trials.

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<v Speaker 1>Their experimental skin patch, which is to help young children

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<v Speaker 1>with pen aalergies, has shown that it could desensitize these

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<v Speaker 1>allergies in kids age four to seven. So it's really

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<v Speaker 1>interesting actually reading about this. Obviously it's a very big

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<v Speaker 1>deal in the sense that over a million or one

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<v Speaker 1>point two million kids in the US and the EU

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<v Speaker 1>between one and seven simates have a pen aalergy, so

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<v Speaker 1>obviously this affects a lot of children. So this is

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<v Speaker 1>a big deal for dBV. It's kind of more than

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<v Speaker 1>two decades of work. They had an earlier effort with

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<v Speaker 1>the US FDA had failed, and as a result they

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<v Speaker 1>redesigned this patch and they had to conduct a different,

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<v Speaker 1>slightly different trial with a narrow age group, so that's

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<v Speaker 1>been a lot of work in the making, and then

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<v Speaker 1>after this trial that they're now planning to again try

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<v Speaker 1>for US regular approval in the first half of next year.

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<v Speaker 1>So stock soared this morning and last my looks is

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<v Speaker 1>actually halted as a result, and even before that, it

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<v Speaker 1>sowed eighty percent since of October in anticipation of these

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<v Speaker 1>trial results. So a big deal for dBV and for

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<v Speaker 1>those with peanut attitudes as well.

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<v Speaker 3>Yeah, that share back trading now just stop on thirty

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<v Speaker 3>three percent at the moment in Paris. Let's go to

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<v Speaker 3>HSBC next. Their share is hitting a fresh record high today.

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<v Speaker 3>What's driven it.

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<v Speaker 1>They've been upgraded to a BUYE by KBW the analysts.

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<v Speaker 1>So if you look at their overall analyst ratings now

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<v Speaker 1>they've got eleven buys, ten holes and one cell, so

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<v Speaker 1>joining the ranks of those who are pretty bullish on HSBC. So,

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<v Speaker 1>as say, shares hit a fresh record high in the

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<v Speaker 1>back of this, and obviously this comes in the context

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<v Speaker 1>of them embarking on a huge turnaround under their CEO.

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<v Speaker 1>So they recently appointed a new chair who was seen

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<v Speaker 1>as quite a safe choice. And as I say, they've

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<v Speaker 1>they've you know, they've already been cut jobs, they've been

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<v Speaker 1>merging and scrapping units. They're plowing ahead with this turnaround.

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<v Speaker 1>And this upgrade is particularly on the back of the

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<v Speaker 1>strength of their Hong Kong business, which is obviously very

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<v Speaker 1>crucial in terms of them focusing the efforts on Asia.

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<v Speaker 1>You know, they're very exposed the ongoing tensions between China

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<v Speaker 1>and the US, and so, yeah, being upgraded on the

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<v Speaker 1>back of that, Hong Kong Business and the KBW are

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<v Speaker 1>saying that they expect that to continue, so a bit

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<v Speaker 1>of a nod of confidence in the CEO's shout.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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<v Speaker 2>making news on Wall Street and for the latest market

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