WEBVTT - LVMH Losses, Ferritti Plot, GSK Rapt

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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 3>Let's take a look at some stocks on the move

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<v Speaker 3>today in Europe. I'm Stephen Carroll with Lizzie Burdon and

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<v Speaker 3>we're joined by Bloomberg's Breaking These editor Louise Moon. Louise,

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<v Speaker 3>good morning. So pressure on LVMH this morning, no bubbly

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<v Speaker 3>out for them? Why indeed?

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<v Speaker 1>Yeah, this is of course on the back of the

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<v Speaker 1>story that Trump has signaled he could impose a two

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<v Speaker 1>hundred percent tariff on French wines and champagnes. Now this

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<v Speaker 1>is after him asking countries to pay a billion to

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<v Speaker 1>be on his Peace board, mccron rejecting that invitation to

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<v Speaker 1>join the Peace Board, and so this is weighing on

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<v Speaker 1>stocks links to French wines and champagne. So ELVIMH is

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<v Speaker 1>one of them. Of course, the sector's already under pressure.

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<v Speaker 1>Trump has said he impose a ten percent tariff as

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<v Speaker 1>of February first. That's on the back of the Greenland situation.

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<v Speaker 1>So that's already been weighing on on LVMH. If we

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<v Speaker 1>are to pluck that one out as an example. So

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<v Speaker 1>they're on track for the seventh street session of losses

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<v Speaker 1>in Paris. That's the longest streak since March. And as

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<v Speaker 1>I say, down today on the back of this latest

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<v Speaker 1>news of potential additional tariff. So they were down about

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<v Speaker 1>just over two percent last time I looked shares at

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<v Speaker 1>levels last scene in October. And of course this is

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<v Speaker 1>you know, lvimsher behind Moet Verve Clico and a host

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<v Speaker 1>of the brand, so really being hit by Trump's saying

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<v Speaker 1>that he could impose those tariffs. And meanwhile Louise drama

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<v Speaker 1>at sea. One investor at the yacht maker Ferretti wants

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<v Speaker 1>to throw another investor overboard.

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<v Speaker 2>What's going on?

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<v Speaker 1>Indeed, Yeah, So the second largest investor this is a

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<v Speaker 1>company called KKCG Maritimes. They're part of Caramec's investment group

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<v Speaker 1>that's the Czech billionaire. So they're the second largest investor

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<v Speaker 1>in Ferretti, the yacht maker. They're planning to propose a

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<v Speaker 1>shareholder vote to ours directors that are linked to the

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<v Speaker 1>top shareholder. This is a Chinese company called Waychai Group,

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<v Speaker 1>So essentially they're setting up kind of a proxy fight

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<v Speaker 1>to challenge that influence. This is a this is an

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<v Speaker 1>ongoing clash. It's been that they've long clashed these these

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<v Speaker 1>two shareholders over issues like the share.

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<v Speaker 3>By that program.

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<v Speaker 1>There's also Bloomberg reported last year allegations by Waichai that

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<v Speaker 1>it's representatives at the company were at Faretti, were being

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<v Speaker 1>spied on. And so you know, this is the ongoing

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<v Speaker 1>clash and it's ramping up again. Waichai recently raised their

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<v Speaker 1>stake in Inferreti and our KKCG. They're also planning to

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<v Speaker 1>more than double at stake. So it's a bit of

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<v Speaker 1>a power battle and as I say, yeah, planning to

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<v Speaker 1>propose a shareholder vote to our direct directors with connections

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<v Speaker 1>to that Chinese firm.

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<v Speaker 3>Okay, let's go to GSK next traders wrapped with attention

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<v Speaker 3>this morning. Why very good?

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<v Speaker 1>This is because GSK has a US biotech called Wrapped Therapeutics.

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<v Speaker 1>They develop treatments for patients with inflammatory and immuno logic diseases,

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<v Speaker 1>which has become quite a key focus for GSK. So

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<v Speaker 1>this deal, it's a big one, is valued at two

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<v Speaker 1>point two billion dollars. So GSK are buying rap Therapeutics

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<v Speaker 1>for fifty eight dollars a share. That's a sixty five

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<v Speaker 1>percent premium to their closing price yesterday, and this is

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<v Speaker 1>the California based companies, so that their shares rose about

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<v Speaker 1>that amount, about sixty five percent. In pre market trading

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<v Speaker 1>this morning, GSK shares fell slightly, just down over a

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<v Speaker 1>one cent and not a huge move, but a slight

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<v Speaker 1>fall on the back of this buyout, and it comes

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<v Speaker 1>with the wider context of GSK's new CEO. So they

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<v Speaker 1>joined in at the start of the year and they're

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<v Speaker 1>essentially needing to prove themselves and the GSK's pipeline of

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<v Speaker 1>new medicines is enough to meet their revenue ambitions for

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<v Speaker 1>the end of the decade. So big ambitions and needing

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<v Speaker 1>to prove that they're their move towards these these kind

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<v Speaker 1>of drugs will will pay off. That's the pressures are

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<v Speaker 1>exacerbated in other sides of the business. So their vaccine's business,

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<v Speaker 1>for example, sales are performed aren't performing as well as expected.

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<v Speaker 1>So it's yeah, under the new CEO, big big deal,

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<v Speaker 1>as they're doubling down on these new constructs.

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