WEBVTT - Novo Nordisk Down, GSK Departure, Lufthansa Up

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>Now, let's have a look at some stocks on the

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<v Speaker 2>move today here in you. I'm Caroline Hepget and I'm

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<v Speaker 2>joined by Bloomberg reporter chlomber Lay. Good morning, Chloe. Let's

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<v Speaker 2>start with another nor Disk stock down facing a negative impulse.

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<v Speaker 3>Y Well, it was downgraded to an underweight rating by

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<v Speaker 3>Morgan Stanley this morning, and so that was driving the

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<v Speaker 3>stock down. Excuse me, but Morgan standly noted a re

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<v Speaker 3>weak prescription growth for GLP one's going forward, then also

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<v Speaker 3>growing competition in that space. So and Liz said that

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<v Speaker 3>they did not see kind of any major positive catalysts

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<v Speaker 3>going forward in that it saw they saw low probability

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<v Speaker 3>of success for the Evoke trial, which is the clinic

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<v Speaker 3>called trial to see if GLP ones can be effective

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<v Speaker 3>for Alzheimer's. Nova has been obviously under quite a lot

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<v Speaker 3>of pressure in recent months. It's dealt with management changes,

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<v Speaker 3>changes that kind of rattled the market. Most recently, it

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<v Speaker 3>was the European Farmer company that was the worst hit

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<v Speaker 3>let then use that Trump was setting the stage for

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<v Speaker 3>the for those tariffs on branded drugs, you know, because

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<v Speaker 3>it was the tariffs, except if the company is building

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<v Speaker 3>a manufacturing base in the US, and because the key

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<v Speaker 3>ingredient Inigo vy and a zempiic is made in Denmark,

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<v Speaker 3>it was under a lot of pressure last week on

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<v Speaker 3>the back of that. So this is just really another

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<v Speaker 3>setback for the company. It's worth noting we're only at

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<v Speaker 3>two sell ratings for Novo, so there's still some confidence

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<v Speaker 3>in the stock and it was recently raised to buy

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<v Speaker 3>at Berenberg, but so some analysts are still keen. But

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<v Speaker 3>this downgrade by Morgan Stanley will be noted. And what

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<v Speaker 3>was this morning? Yeah, okay, so that's.

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<v Speaker 2>Very interesting on nervan nor disc Have you seen around

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<v Speaker 2>London as I have the move GLP one affecting fashion trends,

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<v Speaker 2>affecting the sorts of foods that being offered, not just

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<v Speaker 2>in restaurants but even in fast food chains. Yeah, absolutely

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<v Speaker 2>extraordinary is that sort of change, how much it does

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<v Speaker 2>seem to be affecting societies. Let's stick with the farmer theme.

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<v Speaker 2>GSK announcing a change at the top of the company.

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<v Speaker 3>Yeah, indeed, so CEO Emma Warmsley is stepping down after

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<v Speaker 3>almost nine years at the company. She'll be replaced in

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<v Speaker 3>January on January first by Luke Miles, who is currently

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<v Speaker 3>the chief commercial officer at JESK. So, under Wormsley's watch,

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<v Speaker 3>the shares have fallen about eleven percent. JESK did pretty

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<v Speaker 3>well overall, and there was some guidance upgrades throughout the years,

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<v Speaker 3>et cetera. But they have fallen a little bit and

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<v Speaker 3>she has been facing pressure from investors about the company's

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<v Speaker 3>drug pipeline. So there's real concern from investors over whether

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<v Speaker 3>the company had the right strategy to meet the forty

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<v Speaker 3>billion in ponds and sales target that it had set out,

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<v Speaker 3>which is forty billion in sales by twenty thirty one.

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<v Speaker 3>So the new CEO, Meals, has been working on kind

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<v Speaker 3>of growing the company's drug portfolio, especially in oncology. And

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<v Speaker 3>so by the way that the shares have reacted, which

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<v Speaker 3>was quite positively, it seems that the market is quite

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<v Speaker 3>keen on Meals and confident that he might be able

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<v Speaker 3>to kind of rebuild that pipeline. Yeah.

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<v Speaker 2>Absolutely, she's stepping down in January's I've been there something

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<v Speaker 2>like eight years since about twenty seventeen. So yes, Emma Walmsley,

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<v Speaker 2>surprise resignation, surprise departure at GSK Lufthansa. Lastly planning job cuts.

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<v Speaker 3>Yeah, and quite a lot actually, So plans to cut

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<v Speaker 3>four thousand administrative jobs by twenty thirty, which is kind

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<v Speaker 3>of a reduction in workforce on a scale that we've

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<v Speaker 3>not seen since the pandemic for that airline sector. The

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<v Speaker 3>movie is expected to generate about three hundred million euros

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<v Speaker 3>in annual savings, and for Luftanzo, it's really all about

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<v Speaker 3>trying to rebuild that profitability. It's been dealing with quite

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<v Speaker 3>a lot of challenges lately. There was the fallout from

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<v Speaker 3>pilot strikes, which was really disruptive to operations. There's slow

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<v Speaker 3>aircraft deliveries which have pushed back the transition to more

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<v Speaker 3>kind of fuel efficient models. And then it's also been

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<v Speaker 3>dealing with an underperforming manline airline that's really weighed on results.

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<v Speaker 3>Last year, the group was forced to lower the guidance

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<v Speaker 3>twice and it also fell short of the medium term

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<v Speaker 3>margin targets that it laid out in twenty twenty one.

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<v Speaker 3>So the market reacted quite positively to really drastic measures

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<v Speaker 3>to kind of get that margin back on track for Lachanza.

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<v Speaker 2>Yeah, four thousand jobs to go by twenty thirty.

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