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Now let's have a look at some of the individual stocks on the move today here in Europe. I'm Caroline Hepget and I'm joined by Bloomberg reporta Chloe Malay. So we have a major route I think you have to call it that for Nova Nordisks Shares. Why Yeah, and a very very tough morning for Novo. So the reason why is because it expects a very steep drop in sales in twenty twenty six, and that is because it's facing a lot of pricing pressure. So there's two main reasons behind that.
There's, first of all, pricing pressure coming from the Trump Administration's efforts to cap the price of drugs in the US. And then there's also pricing pressure coming from a growing price war between all of the companies that operate in that obesity space. So that includes of course Nova's biggest rival, Elay Lilly, but then also all of the smaller companies that are selling those cheaper copycat versions of weight loss drugs. So there's a lot of pricing pressure for Nova, and
it's really feeling that hit. And twenty twenty five had already been a very difficult year for the company. There had been leadership changes that had really rattled investors quite a bit. Of course, that competition that I've just mentioned, and also quite a few setbacks in terms of drug trials, and so the results today were really an opportunity for Nova to reassure the market, but instead they've painted a very bleak picture of what can be expected for this year.
One bright spot maybe the obesity bill that Nova is launched. Apparently that has been quite a strong launch, so we'll see if that's actually enough to offset all of those other challenges.
Yeah, I read in the Dow Jones apparently there are one hundred and seventy thousand people on that tree and in the first four weeks. So yeah, that report of the pill, you know, being taken up swiftly. But as you say, pricing pressures, I think you've made that really clear in lots of different areas for Nova nor Disk.
Bloomberg's been speaking to the CEO about it. Also. What about the bank earnings though, take us through Santander, a big deal for the business is they've really head to North America.
Yeah, yeah, they really do. So they are buying a Webster Financial in a twelve billion dollar deal, so really really big acquisition. And so this marks an expansion in the US for Santander, and that is part of the company's broader strategy of wanting to expand in growth markets and maybe cutting back a little bit more from the
exposure that it has to Europe and shows. We're actually down this morning with Alis saying that the deal might not be super well received because shareholders would have maybe preferred more shareholder returns rather than rather than the deal. And there's also some questions about how tricky the integration is going to be for those two companies, given that Santander has to integrate both Webster and TSB as well, which had brought back in July at the same time.
So any successful integration will be really key and perhaps once that transition period is over, will be able to see the benefits a little more clearly. It's quite an interesting move for Santandier because it's now one of the very few European banks to gain that foothold and want to grow that foothold in the US. You know, BBVA sold as US operations, BNP exited the US retail market, so it's definitely kind of doing something that is kind of against the grain a little bit.
Yes, that's interesting. So that on banks. Then what about the continuation of the AI disruption trade because it is affecting a number of names, including LSEG in Europe.
Yeah, so that is definitely continuing today after the massive sell off in those software and financial services stocks that we saw yesterday, after of course, Anthropic announced this new AI tour to automate legal work, and investors saw that as another sign that AI might be a major disruptor to those software companies, and so they rush to limit their exposure to any company that might be seen as an AI loser, and LSEG is seen as one of those,
you know, provides software data analytics tools to financial professionals like research analysts or traders, and the worry is that AA tools might actually be able to do this faster and cheaper, and so that is really dragging down those
shares in LSEG. This morning, JPMorgan analysts did say that software and it services stocks were being sentenced before trial by investors and part of This might perhaps be a little bit of an overreaction, but there has been growing concerns and it looks like what was perhaps more more intangible worry is now become a lot more a lot more tangible for investors.
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