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Let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Lizzie Burton, and we're joined by Bloomberg reporter Chloe Mela for more. Chloe, good morning. Let's start with BNP. Pariba then shares down two point six percent of the moment. Another item being added to jeanre Bonafe, the CEO's growing list of challenges.
It seems, yeah, absolutely quite tough morning for the CEO. So BNP said that his trading unit had suffered a hit from souring debt in the third quarter, which actually overshadowed what was otherwise really strong equities trading in that period. So loarn loss provisions rose to a nine hundred million euros and that included one hundred and ninety million at the Global Markets unit to account for a specific credit situation.
So BNP actually didn't clarify what exactly, but the CFO has suggested it wasn't linked to the collapse of Tricolor or First Brands.
In the US. This is obviously another setback for the company.
Last week, the shares plunged because the court ruling had linked BNP to human rights abuses Insterdam two decades ago, and that opens the door to potentially billions in settlements for the bank. There's also the challenge of political instability in France and concerns about the health of the French economy, so all of that is also raising some worries about the impact on the domestic business, which the CEO is
trying to revamp. So the stock as a result of all of this challenges, is currently the worst performer of all the large European banks and that is going to probably going to continue after this added this added setback for this year.
And speaking of the bank earnings and credit as well, the top read story for HSBC on the terminal at the moment is that it's reviewing its ties to hedge funds with credit fears on the rise. But lots of different lines out of HSBC this morning and the shares up.
Yeah, the shares are actually up. It is quite quite an interesting.
Sorry, so it actually raised its profitability outlook, which is probably why the shares up, but that it was despite a falling profit in the third quarter because of quite a big provision, so it had to set aside one point one billion dollars to cover litigation by investors who lost money in the matter of fraud case which is
dating back years and years now. But so it seems that despite quite kind of a mixed bag investors, we are really focusing on that raised outlook and they continue to put their trust in the CEO, Jodoladeri, which has overseen kind of the biggest revamp but at least a decade with thousands of drop cuts, loads of senior executives leaving,
and also a major bet on Hong Kong. So despite this rise in shares, some analysts are still noting some concerns and analysts at RBC said that the bank is facing falling rates, muted loan growth, elevated impairments in the commercial real estate market, and the medal of litigation. So those are there's quite a long list of headwinds and that makes it difficult at the moment to see the wood from the trees, is.
What the analysts said. So shares are up, but there are some concerns underneath.
It, okay, and to Novartis shares down over three percent in Switzerland after their third quarter results.
What's going on.
We reported the slowest profit growth in almost two years for this quarter, and that's because some of its top sellers are facing growing generic competition over the US, which is its key market, it's biggest market. That's going to be a major challenge for Nevada's going forward. We're already starting to see this feed through into earning. So as a result of that, Nevatis is trying to find new treatments to mitigate that threat, both by developing its own
but then also through a big acquisition. So just a few days ago, in announced a deal that was worth twelve billion dollars for Avidity Biosciences, which was the biggest deal in over a decade for the company, and that will give it access to potentially new blockbusts to drugs. So that will provide some relief in the long term, but until then, the earnings will be reflecting that generic competition, and the CEO is actually expecting.
The full blow to hit in the fourth quarters.
We've not even seen the worst yet, so there'll probably be some weakness there until the wind turns.
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