Telefonica Drops, Galp Falls, Genmab Surges

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0:16 Let's have a look at some of the stocks on the move today in Europe. I'm Caroline Hepka with Stephen Carroll and we're joined by Bloomberg's UK breaking news editor, Louise Moon. Good morning. Louise, tell us about the stocks that are affected by the Brazilian election result because there are quite a few in Europe with exposure to Latin America to Brazil.

0:34 Indeed, yeah. There's, well, as you say, quite a number of them. But the main ones that we're looking at this morning and that seem to be impacted a lot is Telefónica, Santander and Carforce. They all generate more than 20% of their revenue.

0:46 Brazil.

0:46 Obviously, this is on the back of the surprise win by Lula and then Bolsonaro calling for the vote to be annulled. So, expectation there that there'll be steep sell-offs in Brazil. And so, therefore, this is filtering through into Europe. So, as I say, those three impacted. So, Telefonica shares down 7%, Santander down 5%, Carrefour only dipping slightly, and then others as well. So, the likes of AB InBev, they're about 3% lower. So, yeah, all on the back of this Brazil political news.

1:19 Staying with that part of the world as we're thinking about a story in the energy sector this time, Galp Energy, are their shares falling on some M & A headlines?

1:28 Yeah.

1:28 So, they're based in Lisbon. They've been in talks with a Spanish company, Moeve, to combine their fuel stations and refining operations. So, that's been since January time. That's ended without agreement. So, it would have created a major player in the energy market, would have brought together about 3,500 sites.

1:45 But that's not happening anymore. So, that deal has fallen through. Now, Galp has said, you know, they're painting, I guess, predictably a positive picture. They're saying it won't impact their existing operations or their confidence. They've got a lot of confidence in being a standalone company and their investment strategy is unchanged.

2:03 They also had their third quarter results today and they raised that outlook. They've been benefiting from higher commodity prices today. And that's boosted their performance. And their share price actually, so far this year, has been doing pretty well. But the shares today fallen about 9%. The focus there on the deal falling through, that's kind of overshadowing any results or outlook news that has also come through this morning.

2:24 Okay. Lastly, the Danish biotech company Genmab, why are they of note?

2:31 They've had a slew of positive cancer treatment updates this morning. So, their ovarian cancer treatment, they had a late-stage trial and it met the primary and secondary endpoints. So, positive news there. They also had a positive update for a treatment for neck and head cancer. So, all of those came through, which in itself is positive. And then on the back of that, at the same time, JP Morgan raised them to a overweight. And if you actually look at their analyst ratings, they've got 17 buys and I think only one hold and one sell. So, very strongly in the buy category. Shares up on the back of all of that, about 12% in morning trading. So, really soaring.

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