1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,560 --> 00:00:18,079 Speaker 3: Let's take a look at some of the stocks on 5 00:00:18,120 --> 00:00:20,720 Speaker 3: the move though in Europe. I'm Caroline Hetga and I'm 6 00:00:20,800 --> 00:00:23,480 Speaker 3: joined by Bloomberg. Were brought to Chloe Malay Chloe, good morning, 7 00:00:23,560 --> 00:00:28,160 Speaker 3: Good morning European big pharmaceutical stocks. Actually they haven't reacted 8 00:00:28,320 --> 00:00:31,880 Speaker 3: that much to a fresh round of tariffs. 9 00:00:32,280 --> 00:00:35,720 Speaker 1: Yeah, they actually haven't, except for one name in particular, 10 00:00:35,760 --> 00:00:38,959 Speaker 1: which is an Ova Nordice. So Trump announced a rate 11 00:00:39,040 --> 00:00:42,640 Speaker 1: set one hundred percent a tariff on branded pharmaceuticals, but 12 00:00:42,720 --> 00:00:44,320 Speaker 1: he did say that there was a caveat to this, 13 00:00:44,400 --> 00:00:47,519 Speaker 1: which is if a company is building a manufacturing facility 14 00:00:47,560 --> 00:00:49,479 Speaker 1: in the US, and a lot of drug companies have 15 00:00:49,520 --> 00:00:52,239 Speaker 1: announced those types of investments, then that they would be 16 00:00:52,320 --> 00:00:56,840 Speaker 1: exempt from those tariff and tariffs and over Nordis was 17 00:00:56,880 --> 00:00:59,680 Speaker 1: the worst hit this morning, and that might be because 18 00:00:59,760 --> 00:01:02,720 Speaker 1: it makes the main ingredient for a Zepic and Wigovi, 19 00:01:02,840 --> 00:01:06,520 Speaker 1: which obviously it's two blockbuster drugs in a Denmark, and 20 00:01:06,560 --> 00:01:10,479 Speaker 1: that makes it particularly exposed. Other stocks in The sector 21 00:01:10,520 --> 00:01:13,200 Speaker 1: started off a little bit weaker immediately at the open, 22 00:01:13,600 --> 00:01:16,480 Speaker 1: but then ped some of those losses as the market 23 00:01:16,640 --> 00:01:19,399 Speaker 1: maybe started to understand a little bit more about whether 24 00:01:19,520 --> 00:01:22,320 Speaker 1: or not they would be exposed. So Astrazenica, for example, 25 00:01:22,319 --> 00:01:25,880 Speaker 1: has previously announced a major investment in the US and 26 00:01:26,000 --> 00:01:28,920 Speaker 1: GSK as well, and so those two were doing a 27 00:01:28,920 --> 00:01:32,120 Speaker 1: lot better this morning. There's still a lot of lack 28 00:01:32,160 --> 00:01:34,760 Speaker 1: of clarity on the logistics of this tariffs. We don't 29 00:01:34,800 --> 00:01:37,600 Speaker 1: know whether this tack on top of existing country deals. 30 00:01:37,959 --> 00:01:40,319 Speaker 1: We don't know what would constitute having kind of broken 31 00:01:40,400 --> 00:01:43,520 Speaker 1: ground on US manufacturing side, so we don't really know 32 00:01:43,560 --> 00:01:45,320 Speaker 1: the impact yet, and the market is still trying to 33 00:01:45,360 --> 00:01:45,920 Speaker 1: figure that out. 34 00:01:46,200 --> 00:01:50,840 Speaker 3: Yeah, Astra Zeneca, GSP, no Vartis, they're all basically flat, ye, 35 00:01:51,520 --> 00:01:54,320 Speaker 3: because of course the tariff doesn't apply if you've actually 36 00:01:54,360 --> 00:01:59,920 Speaker 3: broken ground on a manufacturing plant in America. And yeah, 37 00:02:00,080 --> 00:02:03,080 Speaker 3: that people seem to be trying to understand the details 38 00:02:03,080 --> 00:02:07,000 Speaker 3: of this policy. Okay. There are though other parts to 39 00:02:07,040 --> 00:02:12,040 Speaker 3: the announcement from President Trump, including tariffs on kitchen cabinets, 40 00:02:12,560 --> 00:02:13,640 Speaker 3: big trucks. 41 00:02:13,240 --> 00:02:15,960 Speaker 1: And big trucks. Trump's was very busy last night, So 42 00:02:15,960 --> 00:02:19,000 Speaker 1: you announced twenty five percent tariffs on big trucks as 43 00:02:19,040 --> 00:02:21,320 Speaker 1: of October first, which is obviously less than a week 44 00:02:21,360 --> 00:02:25,400 Speaker 1: away now, so that drove Diamond Truck down as well 45 00:02:25,440 --> 00:02:28,600 Speaker 1: as Stratton, although Volvo, the other kind of big name 46 00:02:28,880 --> 00:02:31,760 Speaker 1: that in that truck sector, was higher this morning, perhaps 47 00:02:31,760 --> 00:02:35,040 Speaker 1: because it does own a US truck manufacturer called MEC Truck, 48 00:02:35,160 --> 00:02:37,959 Speaker 1: so it might have that boost coming from there. The 49 00:02:38,240 --> 00:02:39,880 Speaker 1: key thing is that there's still kind of so many 50 00:02:39,960 --> 00:02:44,160 Speaker 1: questions which could explain that kind of divergence within the 51 00:02:44,200 --> 00:02:46,400 Speaker 1: sector in terms of performance. You know, neither the White 52 00:02:46,440 --> 00:02:50,080 Speaker 1: House nor the Commons Department released any detail on how 53 00:02:50,200 --> 00:02:53,239 Speaker 1: those tariffs would be implemented, and obviously we're still were 54 00:02:53,280 --> 00:02:57,160 Speaker 1: now less than a week before implementation, if you know, 55 00:02:57,360 --> 00:03:01,480 Speaker 1: depending on how much they'll be impacted, the new tariffs 56 00:03:01,480 --> 00:03:04,839 Speaker 1: would would be an additional challenge for an industry that's 57 00:03:04,840 --> 00:03:08,799 Speaker 1: already dealing with tariffs on still in aluminium, as well 58 00:03:08,840 --> 00:03:12,680 Speaker 1: as tighter environmental regulations that have really driven down that 59 00:03:12,720 --> 00:03:15,800 Speaker 1: demand for those big heavy trucks. So we're still a 60 00:03:15,840 --> 00:03:18,960 Speaker 1: weight on all of those details for trucks, for farmer 61 00:03:19,080 --> 00:03:20,960 Speaker 1: and for as you mentioned, furniture as well. 62 00:03:21,520 --> 00:03:27,959 Speaker 3: Okay, lastly, IHG, so this is Intercontinental Hotels, Why are 63 00:03:28,000 --> 00:03:29,040 Speaker 3: they moving today? 64 00:03:29,639 --> 00:03:33,680 Speaker 1: They got double upgraded to an overweight rating by JP Morgan, 65 00:03:33,720 --> 00:03:37,200 Speaker 1: so analysts noted that it had a really good high 66 00:03:37,240 --> 00:03:39,880 Speaker 1: earnings visibility and really good cash flow as well. It's 67 00:03:39,920 --> 00:03:43,160 Speaker 1: not been necessarily a very smooth last few months for HG. 68 00:03:43,240 --> 00:03:46,200 Speaker 1: Has been underperforming its peers. It has as many cell 69 00:03:46,320 --> 00:03:48,720 Speaker 1: ratings on the stock as it does by ratings, and 70 00:03:48,800 --> 00:03:51,640 Speaker 1: its main problem has really been its exposure to the 71 00:03:51,760 --> 00:03:55,320 Speaker 1: US market, where there was weaker travel demand earlier in 72 00:03:55,360 --> 00:03:58,360 Speaker 1: the year because of market instability because of tariffs and 73 00:03:58,400 --> 00:04:01,480 Speaker 1: also because of much strict to policing at US borders, 74 00:04:01,480 --> 00:04:04,200 Speaker 1: which meant that a lot of choice decided not to 75 00:04:04,240 --> 00:04:06,840 Speaker 1: come to the US. But now JP Morgan al Hass 76 00:04:06,880 --> 00:04:10,040 Speaker 1: said that following that period of underperformance and weakness, the 77 00:04:10,080 --> 00:04:12,920 Speaker 1: company is now on the right track to perform better. 78 00:04:14,440 --> 00:04:18,480 Speaker 2: The Stock Movers report from Bloomberg Radio. 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