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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, The.

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Speaker 2: Stock Movers Report, your roundup of companies making moves in

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Speaker 2: the stock market, harnessing the power of Bloomberg data.

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Speaker 3: Let's look at some of the starts on the move

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Speaker 3: today here in Europe. I'm Caroline Hepgar with Tom McKenzie,

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Speaker 3: and we're joined by Bloomberg reporter Chloe Malay. Chloe, good morning,

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Speaker 3: Good morning. Now let's think about what is happening in

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Speaker 3: Europe and particularly for Ryan Matta, one of the defense

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Speaker 3: stocks which is falling. This is always quite a difficult

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Speaker 3: market correlation. The idea of peace in Ukraine actually is

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Speaker 3: a setback for the defense name.

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Speaker 1: Yeah, absolutely very classic case of peace talks progressing and

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Speaker 1: defense shares falling, and we have seen that for Ryan Mattel,

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Speaker 1: but also other names like Hensalton and Leonardo this morning.

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Speaker 1: So we are entering the second day of talks between

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Speaker 1: Ukraine and the US in Berlin, and the big focus

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Speaker 1: of the negotiations at the moment is around security are guarantees.

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Speaker 1: So Zelenski has hinted that Ukraine could actually back away

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Speaker 1: from its long term goal of joining NATO and instead

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Speaker 1: accept bilateral security guarantees from the US, Europe and other

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Speaker 1: states including Japan. So this actually signals quite good progress

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Speaker 1: on those peace talks, and as a result, we're seeing

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Speaker 1: that weakness today in those defense as shares. So this

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Speaker 1: is actually even despite the fact that even if we

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Speaker 1: do have peace in Ukraine doesn't necessarily mean that the

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Speaker 1: countries will stop spending on defense. But there always seems

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Speaker 1: to be that correlation in the market between news of

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Speaker 1: peace and defense stocks prices.

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Speaker 3: Automaker stocks in focus as well this morning, the focus

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Speaker 3: on climate change rules and maybe some adjustments from the

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Speaker 3: EU yees.

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Speaker 1: So the EU is preparing to soften some of those

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Speaker 1: rules around combuntion engine cars. So currently the rules are

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Speaker 1: that the new combustion engine vehicles will actually be banned

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Speaker 1: from twenty thirty five, but what the EU is considering

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Speaker 1: now is either extend that deadline for five years or

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Speaker 1: take the band filly off the table. So that would

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Speaker 1: essentially allow those carmakers in Europe to transition to emission

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Speaker 1: free cars over a longer period of time, and that

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Speaker 1: could be a relief for those companies. You know, European

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Speaker 1: car companies have struggled to remain competitive and the removal

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Speaker 1: of maybe some of that regulatory burden could help with that,

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Speaker 1: So that would be good breathing room. But then the

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Speaker 1: risk is that it could actually slow development of some

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Speaker 1: kind of new green technologies, slow also the reaching of

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Speaker 1: some climate targets, and that could potentially widen the gap

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Speaker 1: between what you know, US companies like Tesla can do

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Speaker 1: in terms of technology versus what Mercedes Stellant's BMW etc.

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Speaker 1: Could Have to offer here in Europe. So that has

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Speaker 1: to be taken into account as well. So there's some

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Speaker 1: caveat to that, and that explains some gains in Stellantis

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Speaker 1: this morning, but quite modest, actually modest gains in those shares. Hm.

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Speaker 3: Okay. Let's also think about the pharmaceuticals sector. Our Jenks

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Speaker 3: has had an issue with one of its important drug trials.

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Speaker 1: Yeah. So RJX is a biotech company based in the

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Speaker 1: Netherlands and it essentially has one flagship drug that I

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Speaker 1: will not attempt to pronounce, but one flagship drug and

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Speaker 1: that is used for a variety of applications for autoimmune diseases.

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Speaker 1: And the shares have actually rallied quite impressively over the

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Speaker 1: last a few months because it's been able to get

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Speaker 1: a lot of wins in terms of successful trials, but

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Speaker 1: it has just encountered a big a setback, so it

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Speaker 1: has it had to discontinue studies that were checking if

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Speaker 1: it could use that flagship drug for a thyroage eye disease.

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Speaker 1: And so this rules out now a population of about

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Speaker 1: one hundred thousand in the US, and that puts pressure

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Speaker 1: on these sales ambition for twenty thirty and also puts

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Speaker 1: a little bit more scrutiny on the results of other

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Speaker 1: trials or other catalysts that are coming next year in

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Speaker 1: kind of better use perhaps for RGENX. And multiple analysts

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Speaker 1: have said that the share price weakness today is actually

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Speaker 1: a buying opportunity, so they say that the fundamentals do

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Speaker 1: remain strong. It's kind of a temporary setback where we've

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Speaker 1: seen a lot of weakness in the Chez VALSI.

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Speaker 2: Next this morning the Stockmover's Report from Bloomberg Radio. Check

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Speaker 2: back with us throughout the day for the latest roundup

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Speaker 2: of companies making news on Wall Street and for the

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Speaker 2: latest market moving headlines. Listen to Bloomberg Radio Live, catch

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