Fresnillo Gains, AstraZeneca Rebounds, Nexans Drops

On this episode of Stock Movers:
- Fresnillo gained on gold and silver's record highs as HSBC analysts raised its recommendation to hold from reduce.
_ AstraZeneca rebound following a deal with the Trump administration to lower drug prices in the US in exchange for tariff relief.
- Nexans drops after the cable manufacturer announced a change in CEO, which JPMorgan says comes as a surprise.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.

Speaker 2 (00:08):
The Stock Movers Report, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:16):
Let's take a look at some stocks on the move
today in Europe. I'm Stephen Carroll with Tom McKenzie and
we're joined by Bloomberg reporter Chloe Melee. Chloe, good morning.
Let's start then with the mining company Fresnillo gaining this morning.
Tell us more.

Speaker 4 (00:27):
Yeah, a couple of positive things for Fresnela this morning.

Speaker 1 (00:30):
So first of all, it got upgraded to a bio
rating by HSBC, and it's also benefiting from a real
big rally in gold and silver. So silver hit the
highest level in decades because a short squeeze in London
boosted what was already a really massive rally this year.
And then gold, which last week saw a little bit
of a dip because of traders exiting their positions to

(00:50):
kind of lock in those profits, have suched again to
another record. And because Fresnio operates both gold and silver mines,
when there is a lot of bester enthusiasm around those
precious metals, it's always really reflected in the shares. You know,
shares in Fresno are up more than three hundred percent
a year today.

Speaker 4 (01:08):
It's been seeing a really massive rally.

Speaker 1 (01:11):
The trade tensions in the US government shutdown have driven
this rush towards safe Haven. So this may continue because
we get we've gotten now further US China attention.

Speaker 4 (01:20):
The US government shutdown is still ongoing, so.

Speaker 1 (01:23):
We're likely to see a continuation of this and that
will be benefit.

Speaker 4 (01:26):
Presnio are going forward.

Speaker 3 (01:28):
And in the drug space, Astro Seneca rebounding struting a
deal with the Trumpe administration.

Speaker 4 (01:32):
What are the details and how significant is this hook
for that company?

Speaker 1 (01:35):
It is quite significant, So it will be cutting prices
on some of its key drugs in exchange for a
bit of tariff relief. So this follows essentially the template
that we saw with Paiza a couple of weeks ago.
The deal means that asha Zeneca will launch all of
its new medicines in the US at the lowest prices
that were offered to other countries, and it also provides
medicines to the Medicaid health insurance program at highly discounted prices.

(01:59):
It will also expand the number of products sold through
its direct to consumer website at what Trump described as
heavily reduced costs, and also make those medicines available on
the trump Arex website once it launches, which is this
platform that will launched in early twenty twenty six where
American consumers will be able to buy prescription drugs directly
from those pharmaceutical companies. So this is not the first

(02:21):
time that AstraZeneca has been really proactive and trying to
appease Trump. We remember that it was one of the
first companies to announce a major investment in manufacturing facilities
in the US. The plan is for fifty billion dollars
of that investment in the country, and you know this
will put probably pressure on other drug makers to continue
into in that path and to make those very similar

(02:42):
deals with Trump as well going forward.

Speaker 3 (02:45):
Okay, and next to the front, cable manufacturer Exiles dropping
those shows after announcing and UCEO.

Speaker 1 (02:52):
Yeah, so it's a surprise exit of the CEO effective immediately.
So JP Morgan said that the management shakeup came as
a big surprise because it comes just a couple of
months after the announcement that the deputy CEO and the
CFO would be stepping down as well. They said that
the outgoing CEO had been an outspoken CEO who had
completely transformed the equity story of Nixon's, so it seems

(03:15):
that there was a lot of confidence in that CEOs.

Speaker 4 (03:18):
Desparture is not really welcomed.

Speaker 1 (03:20):
JP Morgan analysts also said that the new CEO, Julia Hooper,
is a new face and therefore they didn't really know
how he is going to perform. Just last week, the
company had another tough day as well because it got
downgraded by BNP Parabaut, with the analysting that they expect
a really massive deceleration of earnings growth from next year.

(03:40):
So there seems to be quite a lot of turmoil
here for Nexceens, and this management shakeup is not.

Speaker 4 (03:45):
Being received very warmly by the market, it seems.

Speaker 2 (03:49):
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