WEBVTT - Hermes Drops, AstraZeneca Up, Brenntag Slumps

0:00:02.520 --> 0:00:10.440
<v Speaker 1>Bloomberg Audio Studios podcasts, radio news, The Stock Movers podcast,

0:00:10.800 --> 0:00:14.040
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:14.240 --> 0:00:16.480
<v Speaker 1>harnessing the power of Bloomberg Data.

0:00:17.920 --> 0:00:19.880
<v Speaker 2>Let's take a closer look at some of the stocks

0:00:20.000 --> 0:00:22.079
<v Speaker 2>on the move today in Europe. I'm Caroline Hepka and

0:00:22.079 --> 0:00:26.560
<v Speaker 2>I'm joined by Bloomberg's Markets Today sam Onsteed for more

0:00:26.600 --> 0:00:29.400
<v Speaker 2>on this story. Should we kick things off with the

0:00:29.440 --> 0:00:32.880
<v Speaker 2>French fashion giant Airmes not very good news for them

0:00:32.880 --> 0:00:35.640
<v Speaker 2>this morning. Is this on tariffs or something else?

0:00:37.320 --> 0:00:40.000
<v Speaker 3>Oh well, good morning, Caroline. It's actually a combination of

0:00:40.080 --> 0:00:43.960
<v Speaker 3>a couple of things. So tariff's in general the luxury

0:00:43.960 --> 0:00:46.680
<v Speaker 3>sector getting hit quite hard today. That's despite actually some

0:00:46.840 --> 0:00:50.000
<v Speaker 3>decent Chinese data coming out. You know, very often good

0:00:50.040 --> 0:00:52.720
<v Speaker 3>data up of China lifts the luxury sector. So is

0:00:52.720 --> 0:00:55.040
<v Speaker 3>that tariffs are overshadowing that today. So most of the

0:00:55.040 --> 0:00:58.240
<v Speaker 3>sector is in the red. Hermez is taking a little

0:00:58.240 --> 0:01:00.360
<v Speaker 3>bit of a harder hit. They got a downgraded from

0:01:00.480 --> 0:01:03.760
<v Speaker 3>Jeffries and it's part of a broader story that you know,

0:01:03.800 --> 0:01:05.760
<v Speaker 3>the luxury market has been in a bit of a downturn.

0:01:06.200 --> 0:01:10.240
<v Speaker 3>More tariffs, more concerns about the global economy are preventing

0:01:10.319 --> 0:01:14.080
<v Speaker 3>that any kind of recovery coming through for the luxury market.

0:01:14.280 --> 0:01:17.760
<v Speaker 3>And that's what Jeffries, who downgraded in MS today say

0:01:17.800 --> 0:01:19.640
<v Speaker 3>they struggle to see them getting back to the kind

0:01:19.640 --> 0:01:21.560
<v Speaker 3>of peak valuations that they've been at in the last

0:01:21.600 --> 0:01:22.240
<v Speaker 3>couple of years.

0:01:22.680 --> 0:01:26.680
<v Speaker 2>Yeah, absolutely so. And these are of course amongst Europe's

0:01:26.720 --> 0:01:30.720
<v Speaker 2>most valuable companies, the kind of luxury goods makers. Astra

0:01:30.800 --> 0:01:35.800
<v Speaker 2>Zeneca's new blockbuster drug positive signs in the latest trials.

0:01:35.880 --> 0:01:37.320
<v Speaker 2>How's the market taking that?

0:01:38.959 --> 0:01:42.360
<v Speaker 3>Yeah, So this is an experimental hypertension drug. I'm going

0:01:42.360 --> 0:01:46.640
<v Speaker 3>to attempt the name for you, Carolina, it's Backstrostat. They

0:01:46.680 --> 0:01:48.600
<v Speaker 3>bought this drug a couple of years ago when they

0:01:48.600 --> 0:01:51.440
<v Speaker 3>bought a company called Sincore Farmer, and they at the

0:01:51.440 --> 0:01:54.400
<v Speaker 3>time identified this drug as having potential sales of upwards

0:01:54.440 --> 0:01:57.040
<v Speaker 3>of five billion dollars a year, so would be a

0:01:57.200 --> 0:02:00.720
<v Speaker 3>major drug within their portfolio and a blockbuster. They got

0:02:00.800 --> 0:02:03.040
<v Speaker 3>very good results from it, so it met all of

0:02:03.080 --> 0:02:05.680
<v Speaker 3>the end points that were required in the trial that

0:02:05.720 --> 0:02:07.720
<v Speaker 3>they just had, so it puts it on the part

0:02:07.800 --> 0:02:10.960
<v Speaker 3>of potentially becoming a kind of blockbuster drug. So Astrosenica

0:02:11.000 --> 0:02:13.720
<v Speaker 3>shares up about two percent, and actually that's helping to

0:02:13.800 --> 0:02:16.960
<v Speaker 3>lift the UK's Futotzy one hundred into positive territory today.

0:02:17.000 --> 0:02:19.640
<v Speaker 3>So although most stocks across Europe are falling because of

0:02:19.680 --> 0:02:22.400
<v Speaker 3>the tariff news and most benchmarks are down, the Footy

0:02:22.400 --> 0:02:24.200
<v Speaker 3>one hundred is actually out performing and a big part

0:02:24.240 --> 0:02:25.880
<v Speaker 3>of that is astrosenicas shares.

0:02:25.720 --> 0:02:30.600
<v Speaker 2>Rising, Okayseneca. Then we also have the German chemicals firm

0:02:30.960 --> 0:02:37.200
<v Speaker 2>Brent Tag dropping they've given us their full year guidance, yeah.

0:02:37.160 --> 0:02:39.079
<v Speaker 3>And a cut to their full year guidance and less

0:02:39.080 --> 0:02:41.640
<v Speaker 3>actually saying it's not totally surprising that that had happened,

0:02:41.639 --> 0:02:43.600
<v Speaker 3>that their shares have dropped about four or five percent.

0:02:44.760 --> 0:02:47.200
<v Speaker 3>For the most part, you know, the chemicals companies are

0:02:47.400 --> 0:02:50.560
<v Speaker 3>right at the center of many many supply chains, and

0:02:50.600 --> 0:02:53.480
<v Speaker 3>so when you get any kind of concern about an

0:02:53.520 --> 0:02:56.880
<v Speaker 3>industrial slowdown, about any weaknesses on either side kind of

0:02:57.560 --> 0:03:00.520
<v Speaker 3>any kind of industrial market, and then particularly Inermany at

0:03:00.520 --> 0:03:04.000
<v Speaker 3>the moment, those companies get hit very hard. Brent tug

0:03:04.120 --> 0:03:07.959
<v Speaker 3>As I say, unless don't think it's enormously surprising because

0:03:08.040 --> 0:03:09.919
<v Speaker 3>of all the tariff news that's been coming through and

0:03:09.960 --> 0:03:13.400
<v Speaker 3>the concerns that's that's creating for the industrial market and

0:03:13.480 --> 0:03:17.160
<v Speaker 3>a slowdown in orders for brentug but still a profit.

0:03:17.600 --> 0:03:19.960
<v Speaker 3>A profit warning and you know, very early in the season,

0:03:20.000 --> 0:03:22.240
<v Speaker 3>so it doesn't read very well for the rest of

0:03:22.280 --> 0:03:25.080
<v Speaker 3>the reporting season for German German chemicals companies.

0:03:26.320 --> 0:03:30.440
<v Speaker 1>The Stock Movers podcast from Bloomberg Radio. Check back with

0:03:30.520 --> 0:03:33.320
<v Speaker 1>us throughout the day for the latest roundup of companies

0:03:33.360 --> 0:03:36.400
<v Speaker 1>making news on Wall Street and for the latest market

0:03:36.440 --> 0:03:40.800
<v Speaker 1>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:40.840 --> 0:03:44.080
<v Speaker 1>Bloomberg dot com, and on Applecarplay and Android Otto with

0:03:44.160 --> 0:03:45.600
<v Speaker 1>the Bloomberg Business app.