Standard Chartered Rises, Stellantis Gains, GSK Falls

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0:16 Let's take a look at some of the stocks on the move today in Europe. I'm Tiwa Adebayo with Caroline Hepka. And we're joined by Bloomberg reporter Josh Quint-Warner. So, Josh, we're looking at European bank earnings. We've heard from a slew of names, the likes of BNP Paribas, UBS. But is Standard Chartered keeping up with its peers?

0:34 It certainly appears to be coming out on top this morning. It's the best performer in the sector. It's up about 3.5% at the moment, and that's following the strong gains that we saw booked in Hong Kong overnight. You know, profit rose by about 29% in the latest quarter. That topped estimates and was driven by record net inflows into its wealth unit and some robust trading activity. The wealth unit, for example, lured a record $ 20 billion in net new money, and flow trading income was also 21% higher. You know, that strong performance has prompted it to lift its outlook for the year. Operating income will grow more than previously expected and return on tangible equity will reach about 14% up from its prior goal of more than 12%. As

1:16 a result, we're seeing shares having their best day in three months. That's extending a rebound following a period of pressure since the stock hit all-time highs about a month ago. Just flicking at some of the other bank earnings this morning, Deutsche Bank is also performing well, up about 3%. after beating US peers on fixed income trading revenue, while Santander and UBS are the ones that are down about 2% to 3% after failing to impress.

1:42 Okay.

1:43 So, those are the banks. What about the carmaker, Solantis? What do we know about the turnaround? Yeah.

1:49 So, the Italian carmaker reported profits ahead of expectations this morning and confirmed its guidance for the year. That's providing a bounce after Stellantis shares hit an all-time low last week. The intact outlook is being welcomed. We've seen guidance cuts from several carmakers, especially in Germany. We saw Mercedes-Benz do that just this week. In terms of negatives for Stellantis, it booked losses in Europe as it struggles to compete with Chinese brands. And industrial free cash flow was still pretty much in the negative territory. But it is still planning with its turnaround plan to deliver a positive free cash flow next year. And also, earnings turned positive in North America after introducing new models. So, some green shoots.

2:31 But today, it's more a relief bounce than anything. Shares are still down 60% since the start of this year. And that makes it the worst performer in the automotive space in Europe.

2:41 Interesting.

2:41 So, that's the latest on the automotive space. But lastly, we want to talk about pharmaceuticals. GSK slumping this morning. What is all of that about?

2:51 Yeah, quite a hefty move. Down about 4%. That's its worst day in about six months. What's weighing on the stock is a slump in vaccine sales and also an adjustment to guidance. So, profit rose 3% in the last quarter, but that was driven more by legacy products like its asthma drugs. But sales of vaccines like its blockbuster Shingle shot, Shingrix, were down. Bloomberg Intelligence's John Murphy said the weak vaccine's performance will raise questions over the growth outlook for its drugs going forward. He suggested one of its drugs, Orexv, might be facing more intense competition and that sales might have even peaked for Shingrix. And the reason that's a concern is because vaccines account for about 28% of sales

3:35 this year and is expected to drive about a third of sales growth over the coming years. You know, GSK also said it now expects to hit the lower half of its guided profit growth this year. And so, that is reversing some of the gains booked leading into the print.

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