WEBVTT - Novo Nordisk's Pill, BMW's Struggle, Diageo Up

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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 1>Let's take a look at some starts on the move

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<v Speaker 1>today in Europe. I'm Stephen Carroll with Caroline Hepker, and

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<v Speaker 1>we're joined by Bloomberg reporter Chloe Madi Chloy. Good morning.

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<v Speaker 1>Let's start with Novo Nordisk. This morning, their shares sharply higher.

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<v Speaker 1>A dose of optimism.

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<v Speaker 3>There was very strong demand for its weight loss pill

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<v Speaker 3>in the first quarter, and so that means that the

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<v Speaker 3>sales decline for this year is actually going to be

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<v Speaker 3>a little bit less severe than was previously expected. So

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<v Speaker 3>just to give some numbers on this, As of the

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<v Speaker 3>week that ended on April seventeenth, more than two million

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<v Speaker 3>prescriptions of that weight loss pill had been issued in

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<v Speaker 3>the US. So it's really a major success for Novo,

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<v Speaker 3>and this is very reassuring after a lot of setbacks

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<v Speaker 3>over the past year or so for the company. It

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<v Speaker 3>is worth noting that although this does come as a relief,

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<v Speaker 3>it's a really good performance for the Wigo V pill.

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<v Speaker 3>There are some challenges ahead and The big one is

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<v Speaker 3>going to be that Eli Lilly has just launched its

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<v Speaker 3>own obesity pill just last month, so there is a

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<v Speaker 3>risk of losing market share to this new drug, and

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<v Speaker 3>there's also questions as surrounding supply capacity when the pill

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<v Speaker 3>from Nova actually launches in other countries beyond the US,

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<v Speaker 3>and that is expected to happen in the second half,

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<v Speaker 3>So there's some things to iron out, some hurdles ahead,

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<v Speaker 3>but there's also some relief too, and we can see

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<v Speaker 3>that reflected in those shares.

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<v Speaker 4>Yeah, amazing, isn't the obesity pill amazing steps forward?

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<v Speaker 3>Well?

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<v Speaker 4>Drink makers are also struggling. Lots of industries are struggling

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<v Speaker 4>with the repercussions of this really massive change because of

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<v Speaker 4>drugs like a zempeg Diagio though seems to be bucking

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<v Speaker 4>the trend. Why.

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<v Speaker 3>Yeah, it's pretty good results from Diego. So the cells

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<v Speaker 3>rose slightly in the quarter, so that was actually much

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<v Speaker 3>better than what ALYSSA expected, which was expectations of a

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<v Speaker 3>decline instead, and there was really strong growth in some geography,

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<v Speaker 3>so Africa and Latin America did particularly well and that

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<v Speaker 3>was enough to offset some significant weakness in the US.

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<v Speaker 3>So this actually echoes what we heard from ab and

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<v Speaker 3>BEV just yesterday with really strong beer demand in Colombia

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<v Speaker 3>and Mexico and Peru and managing to offset the weakness

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<v Speaker 3>in the US in China, and so it seems that

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<v Speaker 3>we have got this trend of lower alcohol consumption which

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<v Speaker 3>is driven by the uptake of weight loss drugs, as

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<v Speaker 3>you mentioned, a general kind of health and wellness trend,

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<v Speaker 3>and it was of course as well the cost of

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<v Speaker 3>living pressures. But that limited alcohol consumption that's kind of

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<v Speaker 3>limited now to some geography is not all it seems

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<v Speaker 3>to be. And the performance in the US was still

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<v Speaker 3>quite weak. So that is something that will need to

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<v Speaker 3>be addressed by by management, and that is part of

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<v Speaker 3>the CEO's plan. He said that some actions will be

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<v Speaker 3>taken for that. He's also planning on fixing some other

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<v Speaker 3>issues for the ADUR and things like poor service levels

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<v Speaker 3>and things like too much focus on premium drinks as well.

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<v Speaker 3>So now it'll focus more as well on some ready

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<v Speaker 3>to drink, ready to drink portfolio like canned cocktails, which

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<v Speaker 3>is something that abn BEV has been doing as well. Actually,

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<v Speaker 3>so we are seeing things turning around slowly for the.

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<v Speaker 1>Edge Okay, turning then to BMW, shares also higher in

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<v Speaker 1>BMW this morning, operund six percent at the moment, and

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<v Speaker 1>this is despite the international competition that the carmaker's facing.

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<v Speaker 3>Yeah, at first glance, so there's actually some weakness for BMW.

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<v Speaker 3>We're seeing some really intense competition, as you mentioned it

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<v Speaker 3>in China. There's also the impact of tariffs and those

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<v Speaker 3>have really hurt the margin. But then orders in Europe

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<v Speaker 3>were actually stronger than expected of EVS in particular that

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<v Speaker 3>was particularly strong, and a cash flow was solid to

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<v Speaker 3>so all of that has allowed BMW to keep its

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<v Speaker 3>guidance and so that's what investors have decided to focus

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<v Speaker 3>on this morning, rather than the impact of that competition

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<v Speaker 3>and of those tariffs, and Alis of called the results reasonable.

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<v Speaker 3>So it's not groundbreaking, but given that all the challenges

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<v Speaker 3>that are being faced by carmakers at the moment, the

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<v Speaker 3>expectations are maybe not so high. But going forward, the

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<v Speaker 3>risks really remain the same. China is still a big

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<v Speaker 3>problem given how much market share BMW and those other

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<v Speaker 3>companies are losing to local manufacturers, and then tariffs to

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<v Speaker 3>there's still that current threat threat of twenty five percent

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<v Speaker 3>tariffs unless the E ratifies the current trade deal. So

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<v Speaker 3>still some issues but reassuring results so far.

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

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